Recruitment and

Labor Standards Law

Placement
Labor Law
 Recruitment and
Placement
Definition

Recruitment and Placement

Any act of canvassing, enlisting, contracting, transporting,

utilizing, hiring or procuring of workers which includes
referrals, contract services, promising or advertising
for employment, locally or abroad, whether for profit or not.

Any person or entity which in any manner, offers or promises, for a

fee, employment to at least one person, shall be deemed engaged
in recruitment and placement.
Applicable Laws:

• For
local recruitment – Labor Code
2. For Overseas employment – RA 8042 Overseas
Migrant Workers Act

Recruitment and Placement

 Entities authorized to
engaged in
Recruitment and
Placement:
Recruitment and Placement

Public employment offices, POEA, Private

Recruitment entities, Private Employment Agencies,
Shipping or
manning agents or representatives, persons or entities
authorized by the Secretary of DOLE, Construction
contractors
Direct-Hiring of OFWs –
Employers cannot directly hire workers for overseas
employment except through authorized entities.

Reason: full regulation of employment to avoid exploitation.

Exception: Direct hiring by School and civic, charitable

organization or employers for their own use;
Members, of the diplomatic service, officials and employees of
international organizations and such other employers as may be
authorized by the Secretary of Labor

Recruitment and Placement

 Fees Paid By Workers

: A placement fee may be charged against OFW

General Rule: equivalent to 1 month basic salary specified in Recruitment and Placement
the POEA approved contract, except for the
following:

A. DOMESTIC WORKERS; AND

B. WORKERS DEPLOYED TO COUNTRIES
WHERE THEY DO NOT ALLOW COLLECTION
OF PLACEMENT FEES (USA, NETHERLANDS,
IRELAND, UK, CANADA)

The deployed OFW also need to shoulder the payment

Documentation Fee for the processing of the following documents
(Passport, NBI, Barangay and Police clearance,
Authentication of birth certificate, Medicare and
Philhealth Trade test, Immunization, Medical Certificate

FEES SHOULDERED BY EMPLOYER: VISA, AIRPLANE TICKET, OWWA

MEMBERSHIP FEE, POEA PROCESSING FEES
 Illegal Recruitment

Under Section 6, RA 8042

For purposes of this Act, illegal recruitment shall mean

any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring of workers which includes
referring, contractservices, promising or advertising for
employment abroad, whether for profit or not, when
undertaken by a non­license or non­holder of authority
contemplated under Article 13 (f) of Presidential Decree
No. 442, as amended , otherwise known as the Labor Code
of the Philippines:

Provided, That any such non­license or non­holder who, in

any manner, offers or promises for a fee employment
abroad for two or more persons shall be
deemed so engaged. It shall likewise include the following
acts, whether committed by any person, whether a non­
licensee, non­holder,
licensee or holder of authority:
 Definition of Terms:

LICENSE document issued by DOLE

authorizing a person or entity to private
employment agency,

AUTHORITY means a document issued by

DOLE authorizing a person or association to
engage in recruitment and placement
activities as a private recruitment agency

NON-LICENSEE OR NON- means any person,

HOLDER OF AUTHORITY corporation or entity which has not been issued a
valid license or authority to
engage in recruitment and placement by the
Secretary of DOLE, or whose license
or authority has been suspended, revoked or
cancelled by the POEA or the
Secretary of Labor
A. Excessive Collection of placement fee;

B. Misrepresentation in relation to recruitment or employment;

C. Misrepresentation for purposes of securing a license or authority under the Labor Code.

D. Inducement of a worker to quit his present employment for

another unless the transfer liberates a worker from oppressive terms and conditions of
employment;

E. Influencing or attempting to influence any person or entity not to employ any worker who has
not applied for employment through his agency;

F. Engagement in recruitment or placement of workers in jobs harmful to public health or

morality or to the dignity of the Republic of the Philippines;

G. Obstruction of inspection by the Secretary of Labor and Employment or by his duly

authorized representative;
H.Failure to submit reports required by the Secretary of Labor and Employment;

I.Contract­substitution

J. For an officer or agent of a recruitment or placement agency to engage in the business

of travel agency or in the management thereof;

K. Withholding or denying worker’s travel documents before departure for monetary

or financial consideration other than those authorized under the Labor Code and
its implementing rules and regulations;

L. Failure to actually deploy workers without valid reasons;

M. Failure to reimburse worker for processing and documentary expenses, in

cases where the deployment does not take without the worker’s fault.
Types of Illegal
Recruitment

Simple Illegal Recruiment

MEANING Illegal recruitment committed by a licensee or
non-licensee or a holder or holder or non-holder
of authority against one or two persons only

PENALTY imprisonment of not less than 6 years and 1 day

but not more than 12 years and a fine of not less
than P200,000 nor more than P500,000 (5 years
prescriptive period)
Recruitment and Placement
Types of Illegal
Recruitment
Recruitment involving Economic
Sabotage
MEANING a. Syndicated Illegal Recruitment – Illegal
Recruitment committed by a syndicate if carried
out by a group of 3 or more persons in
conspiracy or collectively with one another; and
b. Large Scale Illegal Recruitment – Illegal
Recruitment committed against 3 or more
persons individually or as a group

PENALTY : life imprisonment and a fine of not less than

P500,000 but not more than P1,000,000;
Recruitment and Placement
Prescription: 20
years
 Recruitment and
Placement
Summary

Recruitment and Placement

• Concepts and Definition of Recruitment and Placement

• Applicable Laws
• Entities Authorized to Engaged in Recruitment and Placement
• Rules on Direct Hiring
• Fees Paid by Employees
• Illegal Recruitment- Types, Grounds and Penalties