Labor Lecture of Sir Bats

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    NTRODUCT ON

    Labor Laws are classified into: Labor Standards which refers to the minimum terms and conditionsof employment which employees are leally entitled to and employers must comply with! LaborRelations which refers to the interactions between the employer and employees or theirrepresentati"es and the mechanism by which the standards and other terms and conditions ofemployment are neotiated# ad$usted and enforced%&

    Labor law is distinuished from social leislation in that the latter includes laws that pro"ide particular 'inds ofprotection or benefits to society or sements thereof in furtherance of social $ustice% (or e)ample : *rarian ReformLaw # Social Security System # State Insurance (und

    Li'e other laws# the Labor Code must conform with the pro"isions of the Constitution% In case of conflict betweenthe Constitution and the Labor Code# the Constitution shall pre"ail%

    CONST TUT ON*L +RO, S ONS:

    The basic constitutional statement on labor is Section &- of *rticle II which states :%

    The State affirms labor as a primary social economic force% It shall protect the rihts of wor'ers and promote theirwelfare%

    *rt% # .ill of Rihts# Sec% -%

    The riht of the people# includin those employed in the public and pri"ate sectors# to form unions#associations# or societies for purposes not contrary to law shall not be abrided%

    *rt% / # Social 0ustice and 1uman Rihts:

    Labor# Sec% 2%

    Section 2 of *rticle /III elaborates on the pro"ision in *rticle II by specifyin who are protected by the Constitution#what rihts are uaranteed# and what positi"e measures the state should ta'e in order to enhance the welfare oflabor%3

    The State shall afford full protection to labor# local and o"erseas# orani4ed and unorani4ed# andpromote full employment and e5uality of employment opportunities for all%

    *lthouh all wor'ers are protected# the rihts uaranteed are not necessarily the same for all% Distinctions can ariseeither from the public or pri"ate character of the employment or from the nature of the wor' that is performed%

    This pro"ision also enumerates the rihts that are uaranteed6

    &% It shall uarantee the rihts of all wor'ers to self7orani4ation# collecti"e barainin and neotiations#and peaceful concerted acti"ities# includin the riht to stri'e in accordance with law%

    These are rihts which are e)ercised and en$oyed by wor'ers collecti"ely% The riht to self7orani4ation andunioni4ation is also uaranteed by Section -# *rticle III# and by Section 389# .# *rticle I/ and is sub$ect to the

    $urisprudence on the riht to form associations as de"eloped under the .ill of Rihts% The riht to enae in ;peacefulconcerted acti"ities< includes e"erythin short of stri'e%

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    The phrase ;in accordance with law< as appended to the riht to stri'e is simply a reconition that the law hastraditionally denied the riht to stri'e to certain sectors of the wor'in force# such as peace7'eepin forces or firemen#because of the nature of the wor' they perform% It has also sometimes been denied to o"ernment wor'ers performinconstituent functions% (or instance# the denial of the riht to stri'e to employees of the Social Security System2and topublic school teachers is reconi4ed%=*lthouh loc'out is not mentioned in the Constitution# there is no intention to banloc'outs%9

    They shall be entitled to security of tenure# humane conditions of wor'# and a li"in wae% They shall alsoparticipate in policy and decision7ma'in processes affectin their rihts and benefits as may be pro"ided bylaw%

    The final phrase ;as may be pro"ided by law#< should not be interpreted as an intention to place these beyond thereach of "alid laws%

    The State shall promote the principle of shared responsibility between wor'ers and employers and thepreferential use of "oluntary modes in settlin disputes# includin conciliation# and shall enforce their mutualcompliance therewith to foster industrial peace%

    The pararaph establishes a preferential bias for "oluntary modes of settlin disputes% It is reconition that#especially in the present state of the economy# stri'es can be too costly for the nation%

    The State shall reulate the relations between wor'ers and employers# reconi4in the riht of labor toits $ust share in the fruits of production and the riht of enterprises to reasonable returns on in"estments# andto e)pansion and rowth%

    The state is reminded that# in formulatin reulations# it should see' a balance between ;the riht of labor to its $ustshare in the fruits of production and the riht of enterprises to reasonable returns on in"estments# and to e)pansionand rowth%< The riht to a $ust share in the fruits of production does not mean mandatory profit7sharin but a "oluntarysharin that is born of the acceptance of the social function of the means of production%>

    The Constitution also pro"ides: 8& The riht of the people includin those employed in public and pri"ate sectors toform unions Sec%-# *rt%III ! 83 The riht of o"ernment employees to self orani4ation! security of tenure*rt% I/7.!82 The rihts of farm wor'ers to own directly or collecti"ely# the lands they till#*rt% /III 8= The continuin proram ofurban land reform and housin# ade5uate employment opportunities to citi4ens# Sec% ?# *rt% /III 89 Safe and healthfulwor'in conditions for wor'in women# Sec%&=# *rt% /III 8> +arty list representati"es from the labor sector for threeconsecuti"e terms after ratification of the constitution#*rt% ,I 8@ +romotion of industriali4ation and full employmentbased on sound economic de"elopment and ararian reform# throuh industries that ma'e full and efficient use ofhuman and natural resources # Sec% & *rt% /II 8- +romotion of the "iability and rowth of cooperati"es# Sec% &9# *rt%/II and 8? increase in salary scales of o"ernment officials and employees# Sec% &-# *rt# /,III

    Other related laws on labor are found in the:

    8* Ci"il Code# which pro"ide amon others:

    ;The relations between capital and labor are not merely contractual% They are so impressed with public interest thatlabor contracts must yield to the common ood% Therefore# such contracts are sub$ect to the special laws on laborunions# collecti"e barainin# stri'es and loc' outs# closed shop# waes# wor'in conditions# hours of labor and similarsub$ects< 8 *rt% &@AA

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    ;Neither capital nor labor shall act oppressi"ely aainst the other# or impair the interest or con"enience of the public% ithholdin of the waes# e)cept for a debt due# shall not be made by the employer%

    *rt% &@A@% The laborerBs waes shall be a lien on the oods manufactured or the wor' done%

    *rt% &@A-% The laborerBs waes shall not be sub$ect to e)ecution or attachment# e)cept for debts incurred for food#shelter# clothin and medical attendance%

    *rt% &@A?% The employer shall neither sei4e nor retain any tool or other articles belonin to the laborer%

    The pro"isions on damaes as the National Labor Relations Commission can award damaes%

    8. Re"ised +enal Code

    ;The penalty of arresto mayor and a fine not e)ceedin+2AA pesos shall be imposed upon any person who# for thepurpose of orani4in# maintainin or pre"entin coalitions of capital or labor# stri'e of laborers or loc'out of employers#shall employ "iolence or threats in such a deree as to compel or force the laborers or employers in the free and leale)ercise of their industry or wor'# if the act shall constitute a more serious offense in accordance with the pro"isions ofthis Code

    Sarmiento "s% 1on% 0ude Orlando R% Tuico# E%R% Nos% @93@&7@2# 0une 3@# &?-- 6 *sian Transmission# Corp% 8*TC "s%NLRC# E%R% No% @@9>@# 0une 3@# &?--%

    The pertinent issue in this case is whether or not the criminal prosecution of certain persons in"ol"ed in the stri'emay be "alidly restrained%

    The Supreme Court held:

    ;8e hold that while as a eneral rule the prosecution of criminal offenses is not sub$ect to in$unction# thee)ception must apply in the case at bar% The suspension of proceedins in the criminal complaints filed before themunicipal court of Calamba# Launa# is $ustified on the round of prematurity as there is no 5uestion that the actscomplained of are connected with the compulsory arbitration proceedins still pendin in the NLRC% The first twocomplaints# as e)pressly captioned# are for F"iolation of *rt% 3>9# par% 3# in relation to *rt% 3@2# of the Labor Code of the

    +hilippines#F and the third complaint relates to the alleed acts of coercion committed by the defendants in bloc'inaccess to the premises of the *TC% Two of the criminal complaints were filed by the personnel administrati"e officer ofthe *TC althouh he "iorously if not con"incinly insists that he was actin in his personal capacity%

    ;In "iew of this# the three criminal cases should be suspended until the completion of the compulsory arbitrationproceedins in the NLRC# conformably to the policy embodied in Circular No% &9# series of &?-3# and Circular No% ?#series of &?-># issued by the Ginistry of 0ustice in connection with the implementation of .%+% .l% 33@% These circulars#briefly stated# re5uire fiscals and other o"ernment prosecutors to first secure the clearance of the Ginistry of Laborand6or the Office of the +resident Fbefore ta'in coni4ance of complaints for preliminary in"estiation and the filin incourt of the correspondin informations of cases arisin out of or related to a labor dispute#F includin Falleations of

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    "iolence# coercion# physical in$uries# assault upon a person in authority and other similar acts of intimidation obstructinthe free inress to and eress from a factory or place of operation of the machines of such factory# or the employerHspremises%F It does not appear from the record that such clearance was obtained# conformably to the procedure laiddown Fto attain the industrial peace which is the primordial ob$ecti"es of this law#F before the three criminal cases werefiled%?@9A# (ebruary 3@# 3AA@K

    Rural .an' of Cantilan# nc% "% 0ul"e

    Ganaement function! Non7interference rule

    Under the doctrine of manaement preroati"e# e"ery employer has the inherent riht to reulate# accordin to hisown discretion and $udment# all aspects of employment# includin hirin# wor' assinments# wor'in methods# thetime# place and manner of wor'# wor' super"ision# transfer of employees# lay7off of wor'ers# and discipline# dismissal#and recall of employees% The only limitations to the e)ercise of this preroati"e are those imposed by labor laws andthe principles of e5uity and substantial $ustice%

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    JE%R% No% &=>@>3# 0anuary 2A# 3AA@K

    Suico "% NLRC

    Ganaement +reroati"e! Non7interference rule

    mployers are allowed# under the broad concept of manaement preroati"e# to adopt company policies thatreulate all aspects of personnel administration includin the dismissal and recall of wor'ers% Company policies orpractices are bindin on the parties% Some can ripen into an obliation on the part of the employer# such as thosewhich confer benefits on employees or reulate the procedures and re5uirements for their termination%

    Riht to Return of In"estment

    "ery business enterprise endea"ors to increase its profits% In the process# it may adopt or de"ise means desinedtowards that oal% "en as the law is solicitous of the welfare of the employees# it must also protect the riht of anemployer to e)ercise what are clearly manaement preroati"es% The free will of manaement to conduct its ownbusiness affairs to achie"e its purpose cannot be denied% 8San Giuel .rewery Sales "s% Ople# E%R% No% 929&9# (eb%-# &?-?%

    Riht to +rescribe Rules and Reulations

    mployers ha"e the riht to ma'e reasonable rules and reulations for the o"ernment of their employees# andwhen employees# with 'nowlede of an established rule# enter the ser"ice# the rule becomes a part of the contract ofemployment% 82& *m% 0ur%# Sec% &3# p% -2?! Laatic "s% NLRC# E%R% No% &3&AA=# 0anuary 3-# &??-%

    The orders# reulations# or instructions of the employer or representati"e must be:

    &% reasonable and lawful!3% sufficiently 'nown to the employee! and

    2% in connection with the duties which the employee has been enaed to dischare%

    The riht to hire and dismiss

    *n employer does not only ha"e the riht to employ whom he pleases but also the riht to manae# control# anduse his property and conduct his business in any manner satisfactory to himself% 8Couer DB *lene Consol%# etc% Co% "s%GinersB Union# 9& (% 3>A# &? LR* 2-3%

    No employer may rationally be e)pected to continue in employment a person whose lac' of morals# respect andloyalty to is employer# reard for his employerBs rules and appreciation of the dinity and responsibility of his office# hasso plainly and completely been bared% 8Ga'ati 1aberdasbery# Inc% "s% National Labor Relations Commission# E%R% Nos%-22-A7- No"% &9# &?-?%

    The riht of the company to dismiss its employees is a measure of self7protection%8Reyes "s% Ginister of Labor#E%R% No% =-@A9# (eb% ?# &?-?%

    The dismissal howe"er must be for $ust cause% 8& Serious Gisconduct or willful disobedience by the employee ofthe lawful orders of his employer or representati"e in connection with his wor' 83 Eross and 1abitual nelect by theemployee of his duties 82 (raud or willful breach by the employee of the trust reposed in him by his employer or dulyauthori4ed representati"es 8= Commission of a crime or offense by the employee aainst the person of his employeror any immediate member of his family or his duly authori4ed representati"e # and 89 other causes analoous 8 *rt%3-3 or for authori4ed causes or for authori4ed causes : 8& retrenchment to pre"ent losses 83 redundancy 82installation of labor sa"in de"ice 8= closure or cessation of operations 8 *rt% 3-2# and 89 Disease which is pre$udicial

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    to the health of the employee or his co employee 8*rt% 3-= and after compliance with procedural due process : noticeto e)plain# administrati"e hearin# notice of termination%

    Riht to transfer

    Li'e other rihts# there are limits to the manaerial preroati"e to transfer personnel% It must be e)ercised without

    ra"e abuse of discretion# puttin to mind the basic elements of $ustice and fair play% 1a"in the riht should not beconfused with the manner in which that riht must be e)ercised% Thus# it cannot be used as a subterfue by theemployer to rid himself of an undesirable wor'er% Nor when the real reason is to penali4e an employee for his unionacti"ities and thereby defeat his riht to self7orani4ation% .ut the transfer can be upheld when there is no showin thatit is unnecessary# incon"enient and pre$udicial to the displayed employee% 8See +oc'etbell +hilippines# Inc% "s% NLRCand *rthur *linas# E%R% No% &A>-=2# 0anuary 3A# &??9%

    JE%R% No% &>=-?2# Garch 3AA@K

    Duldulao "% Court of *ppeals

    Transfer! Constructi"e dismissal

    There is constructi"e dismissal if an act of clear discrimination# insensibility# or disdain by an employer becomes sounbearable on the part of the employee that it would foreclose any choice by him e)cept to foreo his continuedemployment% It e)ists where there is cessation of wor' because Fcontinued employment is rendered impossible#unreasonable or unli'ely# as an offer in"ol"in a demotion in ran' and a diminution in pay%F

    e ha"e lon reconi4ed the preroati"e of manaement to transfer an employee from one office to another withinthe same business establishment# as the e)iency of the business may re5uire# pro"ided that the transfer does notresult in a demotion in ran' or a diminution in salary# benefits and other pri"ilees of the employee! or is notunreasonable# incon"enient or pre$udicial to the latter! or is not used as a subterfue by the employer to rid himself ofan undesirable wor'er% In the case of +hilippine 0apan *cti"e Carbon Corp% "% NLRC# the Court ruled:

    It is the employerBs preroati"e# based on its assessment and perception of its employeesB 5ualifications# aptitudes#

    and competence# to mo"e them around in the "arious areas of its business operations in order to ascertain where theywill function with ma)imum benefit to the company% *n employeeBs riht to security of tenure does not i"e him such a"ested riht in his position as would depri"e the company of its preroati"e to chane his assinment or transfer himwhere he will be most useful% hen his transfer is not unreasonable# nor incon"enient# nor pre$udicial to him# and itdoes not in"ol"e a demotion in ran' or a diminution of his salaries# benefits# and other pri"ilees# the employee maynot complain that it amounts to a constructi"e dismissal%

    Riht to demote

    Ganaement has the riht to demote pro"ided it is not tainted with unfair labor practice 8 +etrophil "s% NLRC # &=2SCR* @A= : International 1ar"ester "s% Intermediate *ppellate Court# E%R% No % @23-@ # Gay &-# &?-@

    Riht to contract $obs out

    It is a proprietary riht of the employer in the e)ercise of inherent manaement preroati"e% 8San Giuelmployees Union "s% .ersamira# &-> SCR* =?>! Ganila lectric "s% uisumbin# E%R% No% &3@9?-# 0an 3@# &???

    Toether with the Labor Code# Implementin Rules were issued by the then Ginistry of Labor and mployment% Inaddition# +olicy Instructions were issued by the Ginister of Labor and mployment% +resently# it is called DepartmentOrder% This is in consonance with the pro"ision of *rt% 9 of the Labor Code which pro"ides:

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    *rt% 9% Rules and Reulations

    The Department of Labor and Imployment?and other o"ernment aencies chared with theadministration and enforcement of this Code or any of its parts shall promulate the necessary

    implementin rules and reulations% Such rules and reulations shall become effecti"e fifteen 8&9 days

    after announcement of their adoption in newspapers of eneral circulation%

    *side from publication in newspaper of eneral circulation# it is re5uired that certified copies must be filed with theU+ Law Center 8Re"ised *dministrati"e Code

    1owe"er# the Supreme Court in the case of .oie7Ta'eda Chemicals "s% de la Serna# &Aruled that:

    ;8Implementin rules cannot add to or detract from the pro"isions of the law it is desinated to implement%*dministrati"e reulations adopted under leislati"e authority by a particular department ) ) ) must be in harmony withthe pro"isions of the law they are intended to carry into effect% They cannot widen its scope% *n administrati"e aencycannot amend an act of conress% *ll rihts and benefits ranted to wor'ers under this Code shall# e)cept as may otherwise be

    pro"ided herein# apply ali'e to all wor'ers# whether aricultural or non aricultural%

    The Code applies to o"ernment corporation incorporated under the Corporation Code% 80uco "s% NLRC# E%R%No% ?-&A@ *u &-# &??@% It does not apply to o"ernment aencies or instrumentality by which certain o"ernmentact or function is performed% Instrumentality contemplates an authority to which the State deleates o"ernment powerfor the performance of a state function% 8Lu4on De"elopment .an' "s% *ssociation of Lu4on De"elopment .an'mployees# E%R% &3A2&?# Oct ># &??9% "en when a o"ernment aency enters into a business contract# it is not theLabor Code but Commonwealth *ct No%23@ 8claims aainst Eo"ernment which applies 8Department of *riculture "s%NLRC# E%R% No% &A=3>?# No" &&??2 %

    +OL C IS O( T1I ST*TI ON L*.OR

    *RT% 2:

    The State shall afford protection to labor# promote full employment# ensure e5ual wor' opportunities

    reardless of se)# race or creed and reulate the relations between wor'ers and employers% The State

    shall assure the rihts of wor'ers to self orani4ation# collecti"e barainin# security of tenure# and $ust

    and humane conditions of wor'%

    *RT% 3&&% Declarat ion of +ol icy % 7 *% t is the policy of the State:

    8a To promote and emphasi4e the primacy of free collecti"e barainin and neotiations#

    includin "oluntary arbitration# mediation and conciliation# as modes of settlin labor or industrial

    disputes!

    8b To promote free trade unionism as an instrument for the enhancement of democracy and the

    promotion of social $ustice and de"elopment!

    8c To foster the free and "oluntary orani4ation of a stron and united labor mo"ement!

    8d To promote the enlihtenment of wor'ers concernin their rihts and obliations as union

    members and as employees!

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    8e To pro"ide an ade5uate administrati"e machinery for the e)peditious settlement of labor or

    industrial disputes!

    8f To ensure a stable but dynamic and $ust industrial peace! and

    8 To ensure the participation of wor'ers in decision and policy7ma'in processes affectin their

    rihts# duties and welfare%

    .% To encourae a truly democratic method of reulatin the relations between the employers and

    employees by means of areements freely entered into throuh collecti"e barainin# no court or

    administrati"e aency or official shall ha"e the power to set or fi) waes# rates of pay# hours of wor' or

    other terms and conditions of employment# e)cept as otherwise pro"ided under this Code% 8*s amended by

    Section 2# Republic *ct No% >@&9# Garch 3 &?-?%

    +R NC +LIS UNDIRLM NE T1I CODI:

    Se"en inno"ati"e principles permeated the entire composition of the Labor Code:

    &% Labor relations must be made both responsi"e and responsible to national de"elopment%3% Labor laws or labor relations durin a period of national emerency must substitute rationality for

    confrontation! therefore# stri'es or loc'outs i"e way to a rational process which is arbitration%

    2% Laard $ustice in the labor field is in$urious to the wor'ers# the employers and the public! labor $ustice can bemade e)peditious without sacrificin due process%

    =% Ganpower de"elopment and employment must be rearded as a ma$or dimension of labor policy# for therecan be no real e5uality of barainin power under conditions of se"ere mass unemployment%

    9% There is a lobal labor mar'et a"ailable to 5ualified (ilipinos# especially those who are unemployed or whoseemployment is tantamount to unemployment because of their "ery little earnins%

    >% Labor laws must command ade5uate resources and ac5uire a capable machinery for effecti"e and sustainedimplementation! otherwise# they merely breed resentment not only of the wor'ers but also of the employers%hen labor laws cannot be enforced# both the employers and the wor'ers are penali4ed# and only a corruptfew 7 those who are in chare of implementation may et the reward they do not deser"e%

    @% There should be popular participation in national policy7ma'in throuh what is now called tripartism% 8cf%&?@= Official edition of the Labor Code! .las (% Ople# (rontiers of Social and Labor +olicy! +ersonnelGanaement *ssociation of the +hilippines# +roceedins of the Special Conference on the Labor Code ofthe +hilippines# 0une &?@=%

    *RT% 3@9% TR +*RT SG *ND TR +*RT TI CON(IRINCIS

    a% Tripartism in labor relations is hereby declared a State policy% Towards this end# wor'ers and employers shallas far as practicable# be represented in decision and policy7ma'in bodies of the o"ernment%

    b% The Secretary of Labor and mployment or his duly authori4ed representati"es may from time to time call anational# reional# or industrial tripartite conference of representati"es of o"ernment# wor'ers and employersfor the consideration and adoption of "oluntary codes of principles desined to promote industrial peacebased on social $ustice or to alin labor mo"ement relations with established priorities in economic and socialde"elopment% In callin such conference# the Secretary of Labor and mployment may consult withaccredited representati"es of wor'ers and employers%

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    Tripartism is obser"ed in numerous o"ernment aencies or instrumentalities# amon them the National LaborRelations Commission# the National aes and +roducti"ity Commission# the mployees Compensation Commission#the +O* Eo"ernin .oard# the +hilippine 1ealth Insurance Corporation# the Social Security Commission# the ESIS.oard of Trustees# and so forth%

    * ST*TUTI GUST G+LIGINT T1I G*ND*TIS O( T1I CONST TUT ON

    t is a basic tenet that any leislati"e enactment must not be repunant to the hihest law of the land

    which is the Constitution% .itonio# 0r% "% Commission on *udit JE%R% No% &=@2?3# Garch &3# 3AA=K 39 SCR*

    =2@

    * leislati"e enactment cannot render nuatory the constitution% *5uino "% Commission on Ilections JE%R% No%&3A3>9 September &-# &??9K 3=- SCR* =AA

    * statute should be interpreted in harmony with the Constitution and that the spirit# rather than the letter of the law

    determines its construction# and it is for that reason that a statute must be read accordin to its spirit and intent%

    +anandaman "% Commission on Ilections E%R% No% &2=2=A# No"ember 39# &???K 2&? SCR* 3-2

    Interpretin and harmoni4in laws with laws is the best method of interpretation% Interpretare et concordare leesleibus est optimus interpretandi modus% This manner of construction would pro"ide a complete# consistent andintelliible system to secure the rihts of all persons affected by different leislati"e and 5uasi7leislati"e acts% heretwo 83 rules on the same sub$ect# or on related sub$ects# are apparently in conflict with each other# they are to bereconciled by construction# so far as may be# on any fair and reasonable hypothesis% ,alidity and leal effect shouldtherefore be i"en to both# if this can be done without destroyin the e"ident intent and meanin of the later act% "erystatute should recei"e such a construction as will harmoni4e it with the pre7e)istin body of laws% ,alencia "% Court of*ppeals JE%R% &332>2# *pril 3?# 3AA2K =A& SCR* >>>

    G+ORT*NCI O( ST*TIGINT O( +OL C IS

    n cases of doubt as to the proper construction of the body of a statute# resort must be had to the

    preamble or recitals# for the purpose of ascertainin the intent% 8-3 C%0%S% Statutes 2=?

    JE%R% No% L7&=&3?% 0uly 2 &?>3%K

    +IO+LI O( T1I +1 L ++ NIS "s% G*N*NT*N

    It is to be noted that a strict construction should not be permitted to defeat the policy and purposes of the statute8*sh Sheep Co% "s% U%S% 393 U%S% &9?

    The followin are the rele"ant rules inST*TUTORM CONSTRUCT ONin the Corpus 0uris Secundum8C%S%0% ascited by Rodriue4 in his boo' ;Statutory Construction# &??? d%

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    In construin a statute# the court must loo' to the ob$ect to be accomplished# the e"ils and mischief souht to

    be remedied# or the purpose to be subser"ed# and place on it a reasonable or liberal construction# which willbest affect its purpose rather than one which will defeat it% 8-3 C%0%S% Statutes 233

    The main thrust of the State as embodied in the +olicy pro"ided in *rticle 3&& is promotion of a stron labormo"ement of enlihten wor'ers# conscious of their rihts and obliations# as an instrument in insurin dynamic and

    $ust industrial peace which can be attained throuh free collecti"e barainin and neotiations includin "oluntaryarbitration # mediation and conciliation as modes of settlin labor or industrial disputes and not throuh stri'es# loc'outs or mass concerted actions which may pro"e pre$udicial to the interest of both the employer and the employee%;The principle behind labor unionism in pri"ate industry is that industrial peace cannot be secured throuh employeesrest on essentially "oluntary basis% Sub$ect to the minimum re5uirements of wae laws and other labor and welfareleislation# the terms and conditions of employment in the unioni4ed pri"ate sector are settled throuh the process ofcollecti"e barainin%< 8SSS mployees Orani4ation "s% Court of *ppeals# &@9 SCR* >-> J&?-?K%

    The State therefore considers a collecti"e barainin areement freely concluded between the employer and theemployee as the truly democratic method of reulatin the relations between the employer and the employee% *

    collecti"e barainin areement refers to a contract e)ecuted upon re5uest of either the employer or the e)clusi"ebarainin representati"e of the employees incorporatin the areement reached after neotiations with respect towaes# hours of wor' and all other terms and conditions of employment includin proposals for ad$ustin any rie"anceor 5uestions under such areement 8 Da"ao Interated +ort Ste"edorin Ser"ices "s% *bar5ue4 # E%R% No% &A3&23#Garch &?# &??2

    *rticle 3&& mentioned Conciliation# Gediation and ,oluntary *rbitration which are considered the ;alternati"emodes of settlement of labor dispute ;# alternati"e to the more ad"ersarial stri'es# loc' outs or any mass concertedactions%

    The State also encouraes that in the settlement of labor disputes# resort to the alternati"e modes of disputesettlement namely: "oluntary arbitration# conciliation and mediation rather than the confrontational manner of stri'esand loc'outs% Labor Dispute under *rticle 3&3 of the Labor Code ; includes any contro"ersy or matter

    concernin terms or conditions of employment or the association or representation of persons in

    neotiatin # fi)in# maintainin# chanin or arranin the terms and conditions of employment reardless

    of whether the disputants stand in the pro)imate relation of employer and employee% Laard $ustice in laborrelations is pre$udicial to both the employer and the employee# thus# ade5uate administrati"e machinery for e)peditioussettlement of labor or industrial dispute%

    Conciliation is a process where disinterested third party meets with manaement and labor# at their re5uest orotherwise# durin a labor dispute or in collecti"e barainin conferences# and by coolin tempers aids in theareement% Gediation# on the other hand# is a process wherein a third party studies each side of the dispute# thenma'es a proposal for the disputant to consider% The mediator li'e the conciliator can not render a decision% They cannot ad$udicate% These process is usually conducted by the National Conciliation and Gediation .oard 8NCG.% Section2# Rule , of the 3AA9 Re"ised Rules of +rocedure of the National Labor Relations Commission mandates the Labor

    *rbiter to conduct conciliation and mediation conference%

    *rbitration is the submission of a dispute to an impartial person for determination on the basis of e"idence andaruments of the parties% The decision or award of the arbitrator is enforcible upon the disputants% It is ,oluntary if it isby areement of the parties and the "oluntary arbitrator or panel of "oluntary arbitrators are chosen by them% ,oluntaryarbitrators are not o"ernment employees and are pri"ate indi"iduals accredited by the Department of Labor andmployment on the basis of their e)pertise in the field of labor relations% Their decisions are final and unappealablee)cept by way of a petition for certiorari with the Court of *ppeals% Compulsory *rbitration is submission is by directi"eof law% This is done by the Labor *rbiters whose decision or award must be accepted by the parties% The decision of

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    the Labor *rbiters is appealable to the NLRC whose decision is final and e)ecutory but maybe ele"ated to the Court of*ppeals by way of certiorari%

    *rticle 3&& also mentioned that is the policy of the State ;to ensure the participation of the wor'ers in decision andpolicy ma'in processes affectin their rihts# duties and welfare

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    To insure careful selection of (ilipino wor'ers for o"erseas employment in order to

    protect the ood name of the +hilippines abroad%

    *RT% &2% Def in i t ions%7 8a For'erF means any member of the labor force# whether employed or

    unemployed%

    8b

    FRecru i tment and p lacementF

    refers to any act of can"assin# enlistin# contractin#

    transportin# utili4in# hirin or procurin wor'ers# and includes referrals# contract

    ser"ices# promisin or ad"ertisin for employment# locally or abroad# whether for profit or

    not: +ro"ided# That any person or entity which# in any manner# offers or promises for a

    fee# employment to two or more persons shall be deemed enaed in recruitment and

    placement%

    8c F+r i"ate fee7char in employment aencyF means any person or entity enaed in

    recruitment and placement of wor'ers for a fee which is chared# directly or indirectly#

    from the wor'ers or employers or both%

    8d FL icenseF means a document issued by the Department of Labor authori4in a person

    or entity to operate a pri"ate employment aency%

    8e F+r i"ate recru i tment ent i tyF means any person or association enaed in the

    recruitment and placement of wor'ers# locally or o"erseas# without charin# directly or

    indirectly# any fee from the wor'ers or employers%

    8f F*uthor i tyFmeans a document issued by the Department of Labor authori4in a

    person or association to enae in recruitment and placement acti"ities as a pri"ate

    recruitment entity%

    8

    FSeamanF

    means any person employed in a "essel enaed in maritime na"iation%

    8h FO"erseas employmentF means employment of a wor'er outside the +hilippines%

    8i FImirantF means any person# wor'er or otherwise# who emirates to a forein

    country by "irtue of an immirant "isa or resident permit or its e5ui"alent in the country

    of destination%

    *RT% &=% Imployment promot ion% 7 The Secretary of Labor shall ha"e the power and authority:

    8a To orani4e and establish new employment offices in addition to the e)istin

    employment offices under the Department of Labor as the need arises!

    8b To orani4e and establish a nationwide $ob clearance and information system to

    inform applicants reisterin with a particular employment office of $ob opportunities in

    other parts of the country as well as $ob opportunities abroad!

    8c To de"elop and orani4e a proram that will facilitate occupational# industrial and

    eoraphical mobility of labor and pro"ide assistance in the relocation of wor'ers from

    one area to another! and

    8d To re5uire any person# establishment# orani4ation or institution to submit such

    employment information as may be prescribed by the Secretary of Labor%

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    The mandate to the Department of Labor and mployment to promote local employment opportunities was oriinallyunder the responsibility of the .ureau of mployment Ser"ices%&&It was replaced by the .ureau of Local mploymentwhich under *dministrati"e Order No% by the .ureau of Local mployment# the functions of which were de"ol"ed to theReional Offices who now handles the licensin of local recruitment aencies and the issuance of wor' permits to nonresident aliens and employment reistration certificate to resident aliens%

    *RT% =A%

    Imployme nt permi t o f non7res ident a l iens%

    7 *ny alien see'in admission to the

    +hilippines for employment purposes and any domestic or forein employer who desires

    to enae an alien for employment in the +hilippines shall obtain an employment permit

    from the Department of Labor%

    The employment permit may be issued to a non7resident alien or to the applicant

    employer after a determination of the non7a"ailability of a person in the +hilippines who

    is competent# able and willin at the time of application to perform the ser"ices for which

    the alien is desired%

    (or an enterprise reistered in preferred areas of in"estments# said employment permit

    may be issued upon recommendation of the o"ernment aency chared with the

    super"ision of said reistered enterprise%

    *RT% =&% +rohib i t ion aainst t ransfer o f employment % 7 8a *fter the issuance of an

    employment permit# the alien shall not transfer to another $ob or chane his employer

    without prior appro"al of the Secretary of Labor%

    8b *ny non7resident alien who shall ta'e up employment in "iolation of the pro"ision of

    this Title and its implementin rules and reulations shall be punished in accordance with

    the pro"isions of *rticles 3-? and 3?A of the Labor Code%

    n addition# the alien wor'er shall be sub$ect to deportation after ser"ice of his sentence%

    *RT% =3% Submiss ion of l is t % 7 *ny employer employin non7resident forein nationals on

    the effecti"e date of this Code shall submit a list of such nationals to the Secretary of

    Labor within thirty 82A days after such date indicatin their names# citi4enship# forein

    and local addresses# nature of employment and status of stay in the country% The

    Secretary of Labor shall then determine if they are entitled to an employment permit%

    &% IG+LOMGINT O( *L INS

    *rt% =A re5uires only non7resident aliens to secure employment permit% Resident aliens are not so re5uired%8*lmodiel "s% NLRC# et al%# E%R% No% &AA>= 0une &=# &??2# =3 SC*D 29=% (or immirants and resident aliens whatis re5uired is an *lien mployment Reistration Certificate 8*RC%

    (oreiners may not be employed in certain ;nationali4ed< business% The *nti7Dummy Law 8C%*% No% &A-# asamended by +%D% No% @&9 prohibits employment of aliens in entities that own or control a riht# franchise# pri"ilee#

    property or business whose e)ercise or en$oyment is reser"ed by law only to (ilipinos or to corporations orassociations whose capital should be at least >AQ (ilipino7owned% *uthority to operate a public utility or to de"elop#e)ploit# and utili4e natural resources can be ranted only to +hilippine citi4ens or to corporations or to associations atleast >AQ of the capital of which is owned by such citi4ens% The same >AQ re5uirement to applies to financincompanies 8R%*% No% 9?-A% Under the +hilippine Constitution# *rt% /,I# Section & mass media enterprises can beowned or manaed only by (ilipinos or by corporations or associations wholly owned or manaed by them%

    The Secretary of 0ustice has rendered an Opinion# howe"er# that aliens may be employed in entities enaed innationali4ed acti"ities: 8a where the Secretary of 0ustice specifically authori4es the employment of forein technical

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    personnel# or 8b where the aliens are elected members of the board of directors or o"ernin body of corporations orassociations in proportion to their allowable participation in the capital of such entities% 8Opinion No% &=2# s% &?@> of theSecretary of 0ustice%

    nterprises reistered under the Omnibus In"estments Code 8%O% No% 33> may# for a limited period# employforein nationals in technical# super"isory# or ad"isory positions%

    &% Department Order No% &3# Series of 3AA&

    Department Order No% &3# dated &> No"ember 3AA& constitutes the ;Omnibus Euidelines for the Issuance ofmployment +ermits to (orein Nationals%< It re5uires the followin to apply for *lien mployment +ermit 8*+:

    &% *ll forein nationals see'in admission to the +hilippines for the purpose of employment!3% Gissionaries or reliious wor'ers who intend to enae I in ainful employment!2% &1olders of Special In"estors Resident ,isa 8SIR,# Special Retirees Resident ,isa 8SRR,# Treaty Trades

    ,isa 8?d or Special Non7immirant ,isa 8=@JaK3# who occupy any e)ecuti"e# ad"isory# super"isory# ortechnical position in any establishment!

    =% *encies# orani4ations or indi"iduals whether public or pri"ate# who secure the ser"ices of foreinprofessional to practice their professions in the +hilippines under reciprocity and other international

    areements!9% Non7Indo Chinese Refuees who are asylum see'ers and i"en refuee status by the United Nations 1ih

    Commissioner on Refuees 8UN1CR or the Department of 0ustice under DO0 Department Order No% ?=#series or &??-!

    >% Resident forein nationals see'in employment in the +hilippines% J.ut see D%O% No% 3&7A3 which suspends;until further notice< the re5uirement for resident forein nationals to secure an *+%K

    The same D%O% No% &3 e)empts the followin from the *+ re5uirement:

    &% *ll members of the diplomatic ser"ices and forein o"ernment officials accredited by the +hilippineso"ernment!

    3% Officers and staff of the international orani4ations of which the +hilippine o"ernment is a cooperatinmember# and their leitimate spouses desirin to wor' in the +hilippines!

    2% (orein nationals elected as members of the Eo"ernin .oard who do not occupy any other position# butha"e only "otin rihts in the corporation! and

    =% *ll forein nationals ranted e)emption by special laws and all other laws that may be promulated by theConress%

    *n *+ is issued based on the followin:

    &% Compliance by the applicant employer or the forein national with the substanti"e and documentaryre5uirements!

    3% Determination of the DOL Secretary that there is no (ilipino national who is competent# able and willin todo the $ob for which the ser"ices of the applicant is desired!

    2% *ssessment of the DOL Secretary that the employment of the forein national will redound to nationalbenefit!

    The department order 8and the accompanyin DOL +rimer state that the Understudy Trainin +roram is noloner a re5uirement in the issuance of *+ and the employer has now the option to implement transfer of technoloy%

    *s a eneral rule# the "alidity of permits shall be for a period of one 8& year# unless the employment contract#consultancy ser"ices# or other modes of enaement or term of office for electi"e officers# pro"ides for a loner period%

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    *n application for renewal of *+ shall be filed at least fifteen 8&9 days before its e)piration% (or electi"e officers#applications for renewal shall be filed upon election or upon e)piration of the *+%

    The effecti"ity of the renewal shall be on the day after the e)piration of the pre"ious permit# reardless of whetheror not the renewal is ranted before or after the e)piration of the pre"ious permit%

    *s a eneral rule# the permits shall be "alid only for the position and the employer for which it was issued# e)cept incase of forein national who are holders of multiple positions in one corporation# where one *+ shall be "alid for suchmultiple positions%

    The pro"isions relatin to employment of aliens is an implementation of one of the ob$ecti"es under *rticle &3 whichstates that one of the policy of the State is ; to reulate the employment of aliens includin the establishment of areistration and6or wor' permit system%

    On the matter of o"erseas employment# *rticle &3 pro"ides that it is the policy of the State ; to insure carefulselection of (ilipino wor'ers for o"erseas employment in order to protect the ood name of the +hilippines abroad

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    hile reconi4in the sinificant contribution of (ilipino mirant wor'ers to the national economy throuhtheir forein e)chane remittances# the State does not promote o"erseas employment proram rests solelyon the assurance that the dinity and fundamental human rihts and freedoms of the (ilipino citi4en# shallnot# at any time# be compromised or "iolated% The State# therefore# shall continuously create localemployment opportunities and promote the e5uitable distribution of wealth and the benefits of de"elopment%8Sec% 3JcK# R%*% No% -A=3%

    On Deploymen t of Girant or'ers% 8Sec% = # R* -A=3: The State shall deploy o"erseas (ilipino wor'ers only incountries where the rihts of (ilipino mirant wor'ers are protected% The o"ernment reconi4es any of the followinas a uarantee on the part of the recei"in country for the protection of the rihts of o"erseas (ilipino wor'ers:

    a% It has e)istin labor and social laws protectin the rihts of mirant wor'ers!b% It is a sinatory to multilateral con"entions# declarations# or resolutions relatin to the protection of

    mirant wor'ers!c% It has concluded a bilateral areement or arranement with the o"ernment protectin the rihts of

    o"erseas (ilipino wor'ers! andd% It is ta'in positi"e# concrete measures to protect the rihts of mirant wor'ers%

    Republic *ct -A=3 transferred the ad$udicatory powers of the +O* to the NLRC%

    0urisdiction Retained ith +OI*

    The +O* retains oriinal and e)clusi"e $urisdiction to hear and decide:

    a% all cases which are administrati"e in character# in"ol"in or arisin out of "iolations of rules andreulations relatin to licensin and reistration of recruitment and employment aencies orentities! and

    b% disciplinary action cases and other special cases which are administrati"e in character# in"ol"inemployers# principals# contractin partners and (ilipino mirant wor'ers% 8Sec% 3-# RulesImplementin the Girant or'ersB *ct dated (ebruary 3?# &??>%

    D SC +L N*RM *CT ON C*SIS

    Rule ,II of .oo' ,II of the +O* Rules pro"ides that complaints for breach of discipline aainst a contract wor'ershall be filed with the *d$udication Office or Reional Office of the +O*# as the case may be% The +O* may motuproprio underta'e disciplinary action aainst a wor'er of breach of discipline% It shall establish a system of watchinand blac'listin of o"erseas contract wor'ers% 8Section Rule ,II# +O* Rules and Reulations Eo"ernin O"erseasmployment# as amended in &??&%

    Erounds for Disciplinary *ction

    Commission by the wor'er of any of the offenses enumerated below or of similar offenses while wor'in o"erseas#shall be sub$ect to appropriate disciplinary actions as the +O* may deem necessary:

    a% Commission of a felony punishable by +hilippine Laws or by the laws of the host country!b% Dru addiction or possession or traffic'in of prohibited drus!c% Desertion or abandonment!d% Drun'enness# especially where the laws of the host country prohibit into)icatin drin's!e% Eamblin# especially where the laws of the host country prohibit the same!f% Initiatin or $oinin a stri'e or wor' stoppae where the laws of the host country prohibit stri'es or

    similar actions!% Creatin trouble at the wor'site or in the "essel!

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    h% mbe44lement of company funds or of moneys and properties of a fellow wor'er entrusted fordeli"ery to 'ins or relati"es in the +hilippines!

    i% Theft or robbery!$% +rostitution!'% ,andalism or destroyin company property!l% Eunrunnin or possession of deadly weapons!m% Un$ust refusal to depart for the wor'site after all employment and tra"el documents ha"e been duly

    appro"ed by the appropriate o"ernment aency6ies! andn% ,iolation6s of the laws and sacred practices of the host country and un$ustified breach of

    o"ernment7appro"ed employment contract by a wor'er%

    It should be noted howe"er# that Section 2A of R* -A=3 pro"ides that ;within a period of fi"e years from effecti"ity ofthis *ct# the DOL shall phase out the reulatory function of the +O* pursuant to the ob$ecti"es of de reulari4ation%

    *RT% 3=% .oards to issue ru les and co l lect fees% 7 The .oards shall issue appropriate

    rules and reulations to carry out their functions% They shall ha"e the power to impose

    and collect fees from employers concerned# which shall be deposited in the respecti"e

    accounts of said .oards and be used by them e)clusi"ely to promote their ob$ecti"es%

    *RT% 33%

    Gandatory remi t tance of fore in e)chane earn ins%

    7 t shall be mandatory for

    all (ilipino wor'ers abroad to remit a portion of their forein e)chane earnins to their

    families# dependents# and6or beneficiaries in the country in accordance with rules and

    reulations prescribed by the Secretary of Labor%

    3% Department of (orein *ffairs thru: 8a Commission of (ilipino O"erseas which absorbed the Office of the mirant*ffairs 8*rt% &?&9

    The C(O pro"ides ad"ice and assistance to the +resident and the Conress in the formulation of policies andmeasures affectin (ilipino o"erseas% C(O consists of fi"e 89 members appointed by the +resident with the Secretaryof (orein *ffairs as e) officio member% 8b Leal *ssistant for Girant or'ers *ffairs% There is hereby created theposition of Leal *ssistant for Girant or'ers for *ffairs under the Department of (orein *ffairs who shall beprimarily responsible for the pro"ision and o"erall coordination of all leal assistance ser"ices to be pro"ided to (ilipino

    mirant wor'ers as well as o"erseas (ilipinos in distress% 1e shall ha"e the ran'# salary and pri"ilees e5ual to that ofan undersecretary of said Department%

    The said Leal *ssistant for Girant or'ers *ffairs shall be appointed by the +resident and must be of pro"encompetence in the field of law with at least ten 8&A years of e)perience as a leal practitioner and must not ha"e beena candidate to an electi"e office in the last local or national elections%

    *mon the functions and responsibilities of the aforesaid Leal *ssistant are:

    8a To issue the uidelines# procedures and criteria for the pro"ision of leal assistance to (ilipino mirant wor'ers!

    8b To establish close lin'aes with the Department of Labor and mployment# the +O*# the O* and other

    o"ernment aencies concerned# as well as with nono"ernmental orani4ations assistin mirant wor'ers# to ensureeffecti"e coordination and cooperation in the pro"ision of leal assistance to mirant wor'ers!

    8c To tap the assistance of reputable law firms and the Interated .ar of the +hilippines and other bar associationsto complement the o"ernmentBs efforts to pro"ide leal assistance to our mirant wor'ers!

    8d To administer the leal assistance fund for mirant wor'ers established under Section 39 hereof and toauthori4e disbursement therefrom in accordance with the purposes for which the fund was set up! and

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    8e To 'eep and maintain the information system as pro"ided in Section 3A%

    The Leal *ssistant for Girant or'ers *ffairs shall ha"e authority to hire pri"ate lawyers# domestic or forein# inorder to assist him in the effecti"e dischare of the abo"e functions%

    2% Department of Labor and mployment 7 thru 8& Labor *ttaches

    *RT% 3&% (orein ser" ice ro le and par t ic ipat ion% 7 To pro"ide ample protection to (ilipino

    wor'ers abroad# the labor attaches# the labor reportin officers duly desinated by the

    Secretary of Labor and the +hilippine diplomatic or consular officials concerned shall#

    e"en without prior instruction or ad"ice from the home office# e)ercise the power and

    duty:

    8a To pro"ide all (ilipino wor'ers within their $urisdiction assistance on all matters

    arisin out of employment!

    8b To insure that (ilipino wor'ers are not e)ploited or discriminated aainst!

    8c To "erify and certify as re5uisite to authentication that the terms and conditions of

    employment in contracts in"ol"in (ilipino wor'ers are in accordance with the Labor

    Code and rules and reulations of the O"erseas Imployment De"elopment .oard and

    National Seamen .oard!

    8d To ma'e continuin studies or researches and recommendations on the "arious

    aspects of the employment mar'et within their $urisdiction!

    8e To ather and analy4e information on the employment situation and its probable

    trends# and to ma'e such information a"ailable! and

    8f To perform such other duties as may be re5uired of them from time to time%

    83O"erseas (ilipinos Resource Center

    +ursuant to Sections &? and 32 of the Girant or'ers and O"erseas (ilipinos Resource Center 8(ilipinosResource Center shall be established in countries where there are at least 3A#AAA mirant wor'ers% here feasible itshall be established within the premises of the mbassy%

    hen the (ilipinos Resource Center is established outside the premises of the mbassy# the Department of(orein *ffairs shall e)ert its best effort to secure appropriate accreditation from the host o"ernment in accordancewith applicable laws and practices%

    82Re7+lacement and Gonitorin Center 8R+G

    * Re7+lacement and Gonitorin Center 8R+G Center is hereby created in the DOL for returnin (ilipino mirantwor'ers which shall:

    8a pro"ide a mechanism for their reinteration into the +hilippine society!

    8b ser"e as a promotion house for their local employment! and

    8c tap their s'ills and potentials for national de"elopment%

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    The R+G Center shall be under the administrati"e super"ision and control of the Secretary of Labor andmployment%

    The R+G Center# while ser"in the needs of returnin mirant wor'ers# shall li'ewise pro"ide support to relatedprorams in the (ilipinos Resource Centers%

    =% O"erseas or'ers elfare *dministration 8O*

    The elfare (und for O"erseas or'ers *dministration was created by +D No% &-A? 80anuary &># &?-&% nownas the elfund# it was intended to pro"ide social and welfare ser"ices# includin insurance co"erae# leal assistanceand remittance ser"ices to (ilipino o"erseas wor'ers% The elfund was funded with contributions from the wor'ersthemsel"es and the fees and chares imposed by the +O* and .L% The elfund was 8and still is administered by a.oard of Trustees chaired by the Secretary of Labor and mployment% In &?-@# )ecuti"e Order No% &3> renamed theelfund the O"erseas or'ers elfare *dministration or O*%

    Repatriation of or'ers

    The O* has a role to play e"en in cases where a wor'er has to be sent bac' to the +hilippines% .ut the primaryresponsibility to repatriate a wor'er# includin his or her remains and personal effects# belons to the principal or theaency that recruited or deployed the wor'er% .ein primarily responsible# the principal or aency has to ad"ance theplane fare and immediately repatriate the wor'er# as needed# without determinin the cause of termination ofemployment% If the termination is due solely to the fault of the wor'er# the principal or aency may reco"er the cost ofrepatriation from the wor'er after return to the country% The cause of termination will be determined by the Labor

    *rbiter% Such obliation of the principal6aency to ad"ance the plane fare and of the wor'er to refund the cost shouldbe stipulated in e"ery contract for o"erseas employment%

    If the principal or aency does not comply with its obliation# the +O* shall notify O* to ad"ance therepatriation cost with recourse to the aency or principal% +O* may also impose sanctions on the recalcitrant aencyor principal%

    In no case shall an employment aency re5uire any bond or cash deposit from the wor'er to uaranteeperformance under the contract of his6her repatriation% The mandatory repatriation bond is abolished as of 0une &@#&??9 pursuant to Section 2> of R%*% -A=3% DOL fiures for &??-73AAA show that the annual remittances ha"ebreached the US > billion le"el# inspirin the o"ernment to call the O(Bs ; Ga .aon .ayani < 8New 1eroes%

    RICRU TGINT *ND +L*CIGINT O( ORIRS

    Recruitment and placement refers to any act of can"assin# enlistin# contractin# transportin# utili4in# hirin orprocurin wor'ers# and includes referrals# contract ser"ices# promisin# or ad"ertisin for employment locally or abroad#whether for profit or not# +ro"ided# that any person or entity which# in any manner# offers or promises for a feeemployment to two or more persons shall be deemed enaed in recruitment or placement 8par 8b *rt &2 %

    Number of persons is not an essential inredient of the act of recruitment and placement of wor'ers% The numberof person is to create a presumption% 8+eo "s% +anis# &23 SCR* >>= To pro"e that the accused is enaed inrecruitment acti"ities# it must be shown that the accused a"e complainant the distinct impression that she had thepower or ability to send complainant abroad to wor' such that the latter was con"inced to part with her money in orderto be employed% 8+eo% "s% Eoce 3=@ SC* @-A

    *RT% &>% +r i"ate recru i tment % 7 I)cept as pro"ided in Chapter of this Title# no person or

    entity other than the public employment offices# shall enae in the recruitment and

    placement of wor'ers%

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    *RT% &-% .an on d i rect 7h i r in% 7 No employer may hire a (ilipino wor'er for o"erseas

    employment e)cept throuh the .oards and entities authori4ed by the Secretary of

    Labor% Direct7hirin by members of the diplomatic corps# international orani4ations and

    such other employers as may be allowed by the Secretary of Labor is e)empted from this

    pro"ision%

    *RT% 39%

    +r i"ate sector par t ic ipat ion in the recru i tment and p lacement of wo r'ers%

    7

    +ursuant to national de"elopment ob$ecti"es and in order to harness and ma)imi4e the

    use of pri"ate sector resources and initiati"e in the de"elopment and implementation of a

    comprehensi"e employment proram# the pri"ate employment sector shall participate in

    the recruitment and placement of wor'ers# locally and o"erseas# under such uidelines#

    rules and reulations as may be issued by the Secretary of Labor%

    The followin entities are authori4ed to recruit and place wor'ers for local and o"erseas employment

    &% +ublic mployment Offices3% +ri"ate Recruitment entities any person or association enaed in the recruitment of

    wor'ers# locally or o"erseas# without charin directly or indirectly # any fee from wor'ersor employers

    2% +ri"ate employment aencies means any person or entity enaed in the recruitmentand placement of wor'ers for a fee which is chared# directly or indirectly# from wor'ersor employers# or both%

    =% shippin or mannin aents or representati"es9% +O*>% construction contractors authori4ed by DOL and the Construction Industry *uthority@% members of the diplomatic corps althouh hirins done by them ha"e to be processed

    throuh the +O*-% Name 1irees or those indi"idual wor'ers who are able to secure contracts for o"erseas

    employment on their own efforts and representation without the assistance of anyaency but the hirin has to be processed by the +O*

    ?% other persons or entities which maybe authori4ed by the Secretary of DOL

    *RT% 3@%

    Cit i4enship re5ui rement %

    7 Only (ilipino citi4ens or corporations# partnerships or entities at least

    se"enty7fi"e percent 8@9Q of the authori4ed and "otin capital stoc' of which is owned and controlled by

    (ilipino citi4ens shall be permitted to participate in the recruitment and placement of wor'ers# locally or

    o"erseas%

    *RT% 3-% Capi ta l i4at ion% 7 *ll applicants for authority to hire or renewal of license to recruit are re5uired to

    ha"e such substantial capitali4ation as determined by the Secretary of Labor%

    L CINS NE *ND RIEUL*T ON

    Rule : +articipation of the +ri"ate Sector in the O"erseas Imployment +roram

    Section &% ualifications% Only those who possess the followin 5ualifications may be permitted to enae in thebusiness of recruitment and placement of (ilipino wor'ers:

    a% (ilipino citi4ens# partnership or corporation at least se"enty7fi"e percent 8@9Q of theauthori4ed capital stoc' of which is owned and controlled by (ilipino citi4ens!

    b% * minimum capitali4ation of Two Gillion +esos 8+3#AAA#AAA% in case of a sinleproprietorship or partnership and a minimum paid7up capital of Two Gillion +esos8+3#AAA#AAA%AA in case of a corporation! +ro"ided# that those with e)istin licensesshall# within four years from effecti"ity hereof# increase their capitali4ation or paid up

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    capital# as the case may be# to Two Gillion +esos 8+3#AAA#AAA%AA at the rate of Two1undred (ifty Thousand +esos 8+39A#AAA%AA e"ery year%

    c% Those not otherwise dis5ualified by law or other o"ernment reulations to enae in therecruitment and placement of wor'ers for o"erseas employment%

    *RT% 3>% Tra"el aencies prohib i ted to recru i t % 7 Tra"el aencies and sales aencies of airline companies

    are prohibited from enain in the business of recruitment and placement of wor'ers for o"erseas

    employment whether for profit or not%

    Section 3%Dis5ualification%The followin are not 5ualified to enae in the business of recruitment and placement of(ilipino wor'ers o"erseas:

    a% Tra"el aencies and sales aencies of airline companies!b% Officers or members of the .oard of any corporation or members in a partnership

    enaed in the business of a tra"el aency!c% Corporations and partnerships# when any of its officers# members of the board or

    partners# is also an officer# member of the board or partner of a corporation orpartnership enaed in the business of tra"el aency!

    d% +ersons# partnerships or corporations which ha"e deroatory records# such as but not

    limited to the followin:&% Those certified to ha"e deroatory record or information by the National

    .ureau of In"estiation or by the *nti7Illeal Recruitment .ranch of the +O*!3% Those aainst whom probable cause or prima facie findin of uilt for illeal

    recruitment of other related cases e)ists!2% Those con"icted for illeal recruitment or other related cases and6or crimes

    in"ol"in moral turpitude! and=% Those aencies whose license ha"e been pre"iously re"o'ed or cancelled by

    the *dministration for "iolation of R%*% -A=3# +D ==3 as amended and theirimplementin rules and reulations as well as these rules and reulations%

    *ll applicants for issuance6renewal of license shall be re5uired to submit clearancesfrom the National .ureau of In"estiation and *nti7Illeal Recruitment .ranch# +O*#

    includin clearances for their respecti"e officers and employees%

    e% *ny official or employee of the DOL# +O*# O*# D(* and other o"ernmentaencies directly in"ol"ed in the implementation of R* -A=3# otherwise 'nown as Girantor'ers and O"erseas (ilipino *ct of &??9 and6or any of his6her relati"es within thefourth ci"il deree of consanuinity or affinity! and

    f% +ersons or partners# officers and Directors of corporations whose license ha"e beenpre"iously cancelled or re"o'ed for "iolation of recruitment laws%

    *RT% 3?% Non7t ransferabi l i ty o f l icense or au thor i ty% 7 No license or authority shall be used directly or

    indirectly by any person other than the one in whose fa"or it was issued or at any place other than that

    stated in the license or authority be transferred# con"eyed or assined to any other person or entity% *ny

    transfer of business address# appointment or desination of any aent or representati"e includin the

    establishment of additional offices anywhere shall be sub$ect to the prior appro"al of the Department of

    Labor%

    *RT% 2A% Reist rat ion fees% 7 The Secretary of Labor shall promulate a schedule of fees for the

    reistration of all applicants for license or authority%

    *RT% 2&% .onds %7 *ll applicants for license or authority shall post such cash and surety bonds as

    determined by the Secretary of Labor to uarantee compliance with prescribed recruitment procedures#

    rules and reulations# and terms and conditions of employment as may be appropriate%

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    *RT% 23% (ees to be paid by wor'ers% 7 *ny person applyin with a pri"ate fee7charin employment

    aency for employment assistance shall not be chared any fee until he has obtained employment throuh

    its efforts or has actually commenced employment% Such fee shall be always co"ered with the appropriate

    receipt clearly showin the amount paid% The Secretary of Labor shall promulate a schedule of allowable

    fees%

    *RT% 22%

    Repor ts on employment s tatus%

    7 hene"er the public interest re5uires# the Secretary of Labor

    may direct all persons or entities within the co"erae of this Title to submit a report on the status of

    employment# includin $ob "acancies# details of $ob re5uisitions# separation from $obs# waes# other terms

    and conditions and other employment data%

    *RT% 2=% +rohib i ted pract ices% 7 t shall be unlawful for any indi"idual# entity# licensee# or holder of

    authority:

    8a To chare or accept# directly or indirectly# any amount reater than that specified in the schedule ofallowable fees prescribed by the Secretary of Labor# or to ma'e a wor'er pay any amount reater than thatactually recei"ed by him as a loan or ad"ance!

    8b To furnish or publish any false notice or information or document in relation to recruitment or employment!

    8c To i"e any false notice# testimony# information or document or commit any act of misrepresentation forthe purpose of securin a license or authority under this Code%

    8d To induce or attempt to induce a wor'er already employed to 5uit his employment in order to offer him toanother unless the transfer is desined to liberate the wor'er from oppressi"e terms and conditions ofemployment!

    8e To influence or to attempt to influence any person or entity not to employ any wor'er who has not appliedfor employment throuh his aency!

    8f To enae in the recruitment or placement of wor'ers in $obs harmful to public health or morality or to the

    dinity of the Republic of the +hilippines!

    8 To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authori4edrepresentati"es!

    8h To fail to file reports on the status of employment# placement "acancies# remittance of forein e)chaneearnins# separation from $obs# departures and such other matters or information as may be re5uired by theSecretary of Labor%

    8i To substitute or alter employment contracts appro"ed and "erified by the Department of Labor from thetime of actual sinin thereof by the parties up to and includin the periods of e)piration of the same withoutthe appro"al of the Secretary of Labor!

    8$ To become an officer or member of the .oard of any corporation enaed in tra"el aency or to beenaed directly or indirectly in the manaement of a tra"el aency! and

    8' To withhold or deny tra"el documents from applicant wor'ers before departure for monetary or financialconsiderations other than those authori4ed under this Code and its implementin rules and reulations%

    *RT% 29% Suspension and 6or cancel la t ion of l icense or author i ty% 7 The Ginister of Labor shall ha"e the

    power to suspend or cancel any license or authority to recruit employees for o"erseas employment for

    "iolation of rules and reulations issued by the Ginistry of Labor# the O"erseas Imployment De"elopment

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    .oard# or for "iolation of the pro"isions of this and other applicable laws# Eeneral Orders and Letters of

    nstructions%

    *RT% 2>% Reulatory power % 7 The Secretary of Labor shall ha"e the c power to restrict and reulate the

    recruitment and placement acti"ities of all aencies within the co"erae of this Title and is hereby

    authori4ed to issue orders and promulate rules and reulations to carry out the ob$ecti"es and implement

    the pro"isions of this Title%

    *RT% 2@% ,is i tor ia l +ower % 7 The Secretary of Labor or his duly authori4ed representati"es may# at any time#

    inspect the premises# boo's of accounts and records of any person or entity co"ered by this Title# re5uire it

    to submit reports reularly on prescribed forms# and act on "iolation of any pro"isions of this Title%

    *RT% 2-% l leal recru i tment % 7 8a *ny recruitment acti"ities# includin the prohibited practices enumerated

    under *rticle 2= of this Code# to be underta'en by non7licensees or non7holders of authority# shall be

    deemed illeal and punishable under *rticle 2? of this Code% The Department of Labor and Imployment or

    any law enforcement officer may initiate complaints under this *rticle%

    *rticle 2- in so far as it limited illeal recruitment recruitment acti"ities to non7licensees or nonholders of authority#has been chaned by R%*% No% -A=3# as to include a licensee or holder of authority may be held uilty of illeal

    recruitment%

    R%*% No% -A=3 defines illeal recruitment as any act of can"assin# enlistin# contractin# transportin# utili4in#hirin or procurin wor'ers and includes referrin contract ser"ices# promisin or ad"ertisin for employment abroad#whether for profit or not# when underta'en by a non7licensee or non7holder of authority contemplated under *rticle &28fof +residential Decree No%==3# as amended# otherwise 'nown as the Labor Code of the +hilippines:

    +ro"ided# That any such non7licensee or non7holder who# in any manner# offers or promises for a fee employmentabroad to two or more persons shall be deemed so enaed%

    It shall li'ewise include the followin +rohibited *cts under *rticle 2= of the Labor Code whether committed by anyperson# whether a non7licensee# non7holder# licensee or holder of authority:

    a% To chare or accept directly or indirectly any amount reater than that specified in the schedule of allowablefees prescribed by the Secretary of Labor and mployment# or to ma'e a wor'er pay any amount reaterthan that actually recei"ed by him as loan or ad"ance!

    b% To furnish or publish any false notice or information or document in relation to recruitment or employment!c% To i"e any false notice# testimony# information or document or commit any act of misrepresentation for the

    purpose of securin a license or authority under the Labor Code!d% To induce or attempt to induce a wor'er already employed to 5uit his employment in order to offer him

    another unless the transfer is desined to liberate a wor'er from the oppressi"e terms and conditions ofemployment!

    e% To influence or attempt to influence any person or entity not to employ any wor'er who has not applied foremployment throuh his aency!

    f% To enae in the recruitment or placement of wor'ers in $obs harmful to public health or morality or to thedinity of the Republic of the +hilippines!

    % To obstruct or attempt to obstruct inspection by the Secretary of Labor and mployment or by his dulyauthori4ed representati"e!

    h% To fail to submit reports on the status of employment# placement "acancies# remittance of forein e)chaneearnins# separation from $obs# departures and such other matters or information as may be re5uired by theSecretary of Labor and mployment!

    i% To substitute or alter to the pre$udice of the wor'er# employment contracts appro"ed and "erified by theDepartment of Labor and mployment from the time of actual sinin thereof by the parties up to andincludin the period of the e)piration of the same without the appro"al of the Department of Labor andmployment!

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    $% (or an officer or aent of a recruitment or placement aency to become an officer or member of the .oard ofany corporation enaed in tra"el aency or to be enaed directly or indirectly in the manaement of atra"el aency!

    '% To withhold or deny tra"el documents from applicant wor'ers before departure for monetary or financialconsiderations other than those authori4ed under the Labor Code and its implementin rules andreulations!

    In addition:

    l% (ailure to actually deploy without "alid reason as determined by the Department of Labor and mployment!and

    m% failure to reimburse e)penses incurred by the wor'er in connection with his documentation and processinfor purpose of deployment# in cases where the deployment does not actually ta'e place without the wor'erBsfault%

    The persons criminally liable for illeal recruitment are the principals# accomplices and accessories% In case of$uridical persons# the officers ha"in control# manaement or direction of their business shall be liable% 8Sec% ># R%*%

    -A=3

    8d f the offender is a corporation# partnership# association or entity# the penalty shall be

    imposed upon the officer or officers of the corporation# partnership# association or entity

    responsible for "iolation! and if such officer is an alien# he shall# in addition to the

    penalties herein prescribed# be deported without further proceedins ! 8*rt% 2?%

    +enalties

    *n employee who does not control# manae or direct the business may not be held liable for illeal recruitment%here it is shown that the employee was merely actin under the direction of his superiors and was unaware that hisacts constituted a crime# he may not be held criminally liable for an act done for and in behalf of his employer Suchemployee has to be ac5uitted e"en where the employer# in "iolation of +O* re5uirement# did not reister suchemployee# and the employee was unaware of such "iolation% 8+eople of the +hilippines "s% .ulu Chowdury# E%R% Nos%

    &3?9@@7-A# (ebruary &9# 3AAA%

    Con"ersely# an employee of a company or corporation enaed in illeal recruitment may be held liable asprincipal# toether with his employer# if it is shown that he may acti"ely and consciously participated in illealrecruitment%

    In this case# e"idence showed that accused7appellant was the one who informed complainants about the $ob andthe re5uirements for deployment% She also recei"ed money from them as placement fees% The complainants testifiedthat they personally met and transacted with her reardin the o"erseas $ob placement offers% Complainants partedwith their money# e"idenced by receipts sined by the accused% Thus# accused7appellant Jthe employeeK acti"elyparticipated in the recruitment of the complainants% 8+eople of the +hilippines "s% N% Cabais# E%R% No% &3?A@A# Garch&># 3AA&! +eople of the +hilippines "s% L% (lores# E%R% Nos% &2-92972-# *pril &?# 3AA&%

    The absence of receipts cannot defeat a criminal prosecution for illeal recruitment% *s lon as the witnesses canpositi"ely show throuh their respecti"e testimonies that the accused is the one in"ol"ed in prohibited recruitment# shemay be con"icted of the offence despite the absence of receipts% 8+eople "s% Saaydo# E%R% Nos% &3=>@&7@9September 3?# 3AAA%

    +resentation of receipts ac'nowledin payments is not necessary for successful prosecutions of illealrecruitment chare% Credible testimonial e"idence may suffice% 8+eople "s% .en4on On etc%# E%R% No% &&?9?=#0anuary &-# 3AAA%

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    8b lleal recruitment when committed by a syndicate or in lare scale shall be

    considered an offense in"ol"in economic sabotae and shall be penali4ed in

    accordance with *rticle 2? hereof%

    lleal recruitment is deemed committed by a syndicate if carried out by a roup of three

    82 or more persons conspirin and6or confederatin with one another in carryin out any

    unlawful or illeal transaction# enterprise or scheme defined under the first pararaph

    hereof% lleal recruitment is deemed committed in lare scale if committed aainst three

    82 or more persons indi"idually or as a roup%

    8a The penalty of life imprisonment and a fine of One 1undred Thousand +esos

    8+&AAA#AAA%AA shall be imposed if illeal recruitment constitutes economic sabotae as

    defined herein! 8*rt% 2? # +enalties%

    =%& Separate Cateories

    Illeal recruitment in lare scale and illeal recruitment by a syndicate are separate or independentcateories% They need not coincide within the same case% here only one complainant filed indi"idualcomplaints# there is no illeal recruitment in lare scale! but the three conspirin recruiters can be held uilty

    of illeal recruitment by a syndicate% 8+eople of the +hilippines "s% (% 1ernande4# % Reichl# and M%E% deReichl# E%R% Nos% &=&33&72># Garch @# 3AA3%

    It has been held that accused7appellantBs acts of acceptin placement fees from $ob applicants andrepresentin to said applicants that he could et them $obs in Taiwan constitute recruitment and placementunder the Labor Code% The offense committed aainst the si) 8> complainants in this case is illealrecruitment in lare scale punishable under *rticle 2?8a of the Labor Code with life imprisonment and a fineof One hundred thousand pesos 8+&AA#AAA%AA%8+eople of the +hilippines "s% Tan Tion Gen alias ;TommyTan#< E%R% Nos% &3A-297=A# *pril &A# &??@! +eople "s% *rabia and Tomas# E%R% Nos% &2-=2&72># September&3# 3AA&%

    here illeal recruitment is pro"ed# but the elements of ;lare scale< or ;syndicate< are absent# theaccused can be con"icted only of ;simple< illeal recruitment% 8+eople "s% Saun# E%R% No% &&?A@># Garch

    39# 3AA3%

    *RT% 2?% +enal t ies%7 8b *ny licensee or holder of authority found "iolatin or causin

    another to "iolate any pro"ision of this Title or its implementin rules and reulations

    shall# upon con"iction thereof# suffer the penalty of imprisonment of not less than two

    years nor more than fi"e years or a fine of not less than +&A#AAA nor more than +9A#AAA#

    or both such imprisonment and fine# at the discretion of the court!

    8c *ny person who is neither a licensee nor a holder of authority under this Title found

    "iolatin any pro"ision thereof or its implementin rules and reulations shall# upon

    con"iction thereof# suffer the penalty of imprisonment of not less than four years nor

    more than eiht years or a fine of not less than +3A#AAA nor more than +&AA#AAA or both

    such imprisonment and fine# at the discretion of the court!

    8e n e"ery case# con"iction shall cause and carry the automatic re"ocation of the

    license or authority and all the permits and pri"ilees ranted to such person or entity

    under this Title# and the forfeiture of the cash and surety bonds in fa"or of the O"erseas

    Imployment De"elopment .oard or the National Seamen .oard# as the case may be#

    both of which are authori4ed to use the same e)clusi"ely to promote their ob$ecti"es%

    c% The Secretary of Labor and Imployment or his duly authori4ed representati"es shall

    ha"e the power to cause the arrest and detention of such non7licensee or non7holder of

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    authority if after in"estiation it is determined that his acti"ities constitute a daner to

    national security and public order or will lead to further e)ploitation of $ob7see'ers% The

    Secretary shall order the search of the office or premises and sei4ure of documents#

    paraphernalia# properties and other implements used in illeal recruitment acti"ities and

    the closure of companies# establishments and entities found to be enaed in the

    recruitment of wor'ers for o"erseas employment# without ha"in been licensed or

    authori4ed to do so%

    This was declared constitutional by the Supreme Court in the case of Sala4ar "s% *chacoso # ER No% -&9&A# &=Garch &??A % The Supreme Court declared that under the Constitution# only a $ude may issue warrants of search andarrest% The only e)ception is in cases deportation of illeal and undesirable aliens whom the +resident or theCommissioner of Immiration may order arrest followin order of deportation# for purposes of deportation%

    9% Istafa

    In +eople "s% Calon4o E%R% Nos% &&9&9A799# September 3@# &??># the Court reiterated the rule that a personcon"icted for illeal recruitment under the Labor Code can be con"icted for "iolation of the Re"ised +enal Codepro"isions on estafa pro"ided the elements of the crime are present% In +eople "s% Romerothe elements of the crimewere stated thus: a that the accused defrauded another by abuse of confidence or by means of deceit# and b that

    damae or pre$udice capable of pecuniary estimation is caused to the offended party or third person%

    stafa under *rticle 2&9# pararaph 3 of the Re"ised +enal Code is committed by any person who defraudsanother by usin a fictitious name# or falsely pretends to possess power# influence# 5ualifications# property# credit#aency# business or imainary transactions# or by means of similar deceits e)ecuted prior to or simultaneously with thecommission of the fraud% The offended party must ha"e relied on the false pretense# fraudulent act or fraudulent meansof the accused7appellant and as a result thereof# the offended party suffered damaes% It has been pro"ed in this casethat accused7appellants represented themsel"es to pri"ate complainants to ha"e the capacity to send domestic helpersto Italy# althouh they did not ha"e any authority or license% It is by this representation that they induced pri"atecomplainants to pay a placement fee of +&9A#AAA%AA% Such act clearly constitutes estafa under *rticle 2&9 83 of theRe"ised +enal Code% 8+eople "s% 1ernande4# et al%# E%R% Nos% &=&33&72># Garch @# 3AA3%

    The +O* Rules enumerate the recruitment "iolations that are punishable with suspension or cancellation oflicense% In Section =# Rule II# .oo' ,I the four rounds for re"ocation of license are enumerated# namely: "iolation6s ofthe conditions of the license! enain in act6s of misrepresentation for the purpose of conditions of license of securina license or renewal thereof# such as i"in false testimonies or falsified documents! enain in the recruitment orplacement of wor'ers in $obs harmful to public health or morality or to the dinity of the Republic of the +hilippines! andincurrin an accumulated three counts of suspension by an aency based on final and e)ecutory orders within the"alidity period of its license%

    The acts punishable with suspension6cancellation of license include: charin a fee before the wor'er is employedor in e)cess of authori4ed amount! substitutin or alterin employment contracts! doin recruitment in places outsidethe authori4ed area! deployin wor'ers without processin throuh +O*! publishin $ob announcements without+O*Bs prior appro"al%

    In the &??@ case ofTrans *ctionthe Court affirmed the concurrent $urisdiction of the DOL Secretary and the+O* *dministrator to suspend or cancel a license%

    In a nutshell# the Secretary of Labor and mployment or his duly authori4ed representati"es may cause the lawfularrest of illeal recruiters either:

    &% by "irtue of a $udicial warrant issued by an RTC# GTC or GCTC $ude# as the case may be! or

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    3% without $udicial warrant# under the pro"isions of Section 9# Rule &&2 of the &?-9 Rules on Criminal+rocedure as amended%

    Li'ewise# searches and sei4ures may be caused to be made either:

    &% by "irtue of a search warrant issued by a $ude upon a probable cause in connection with onespecific offense determined personally by the $ude after e)amination under oath or affirmation ofthe complainant and the witnesses he may produce# and particularly describin the place to besearched and the thins to be sei4ed%

    3% without a $udicial search warrant# for anythin which may be used as proof of the commission ofilleal recruitment# under any of the followin conditions:

    a% when the search is incidental to a lawful arrest but limited to the person of the suspect and theplace of arrest!

    3% when the thin to be sei4ed is in plain "iew of the officer! or

    2% when the indi"idual concerned 'nowinly consents to be searched%

    (inally# the Secretary or his duly authori4ed representati"e may order the closure of illeal recruitmentestablishments% 8*balayan# p% 33%

    +enalties

    Section @ of R%*% No% -A=3 pro"ides the penalties for illeal recruitment% It states:

    a% *ny person found uilty of illeal recruitment shall suffer the penalty of

    imprisonment of not less than si) 8> years and one 8& day but not more thantwel"e 8&3 years and a fine of not less than Two hundred thousand pesos8+3AA#AAA%AA nor more than (i"e hundred thousand pesos 8+9AA#AAA%AA%

    b% The penalty of life imprisonment and a fine of not less than (i"e hundredthousand pesos 8+9AA#AAA%AA nor more than One million pesos8+AAA#AAA%AA shall be imposed if illeal recruitment constitutes economicsabotae as defined herein%

    +ro"ided# howe"er# That the ma)imum penalty shall be imposed if the person illeally recruited is lessthan eihteen 8&- years of ae or committed by a non7licensee or non7holder of authority%

    ,enue

    * criminal action arisin from illeal recruitment shall be filed with the Reional Trial Court of the pro"ince or citywhere the offense was committed or where the offended party actually resides at the time of the commission of theoffense% The court where the criminal action is first filed shall ac5uire $urisdiction to the e)clusion of other courts%

    Gandatory +eriods for Resolution of illeal Recruitment Cases

    The preliminary in"estiations of cases under this *ct shall be terminated within a period of thirty 82A calendardays from the date of their filin% here the preliminary in"estiation is conducted by a prosecutor and a prima faciecase is established# the correspondin information shall be filed in court within twenty7four 83= hours from the

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    termination of the in"estiation% If the preliminary in"estiation is conducted by a $ude and a prima faciecase is foundto e)ist# the correspondin information shall be filed by the proper prosecution officer within forty7eiht 8=- hours fromthe date of receipt of the records of the case% 8Sec% & R%*% No% -A=3%

    +rescripti"e +eriods

    Illeal recruitment cases under this *ct shall prescribe in fi"e 89 years!+ro"ided# howe"er#That illeal recruitmentcases in"ol"in economic sabotae as defined herein shall prescribe in twenty 83A years% 8Sec% &3# R%*% No% -A=3%

    Chapter

    National +olicies and *dministrati"e

    Gachinery for their mplementation

    *rt% =2Statement of Ob$ect i"e

    t is the ob$ecti"e of this Title to de"elop human resources# establish trainin institutions# and formulate

    such plans and prorams as will ensure efficient allocation# de"elopment and utili4ation of the nationBs

    manpower and thereby promote employment and accelerate economic and social rowth%

    *rt% == Definitions

    *s used in this Title:

    a% ;Ganpower< shall mean that portion of the nationBs population which has actual orpotential capability to contribute directly to the production of oods and ser"ices%

    b% ;Intrepreneurship< shall mean trainin for self7employment or assistin indi"idual ofsmall industries within the pur"iew of this Title%

    *rt% =9 National Ganpower and Mouth Council#&>Composition

    To carry out the ob$ecti"es of this Title# the National Ganpower and Mouth Council# which is attached to theDepartment of Labor for policy and proram coordination and hereinafter referred to as the Council# shall be composedof the Secretary of Labor as e)7officio chairman# the Secretary of ducation and Culture as e)7officio "ice7chairman#and as e)7officio members# the Secretary of conomic +lannin# the Secretary of *riculture and (ood# the Secretaryof Natural Resources# the Chairman of the Ci"il Ser"ice Commission# the Secretary of Social elfare# the Secretary ofLocal Eo"ernment# the Secretary of Science and Technoloy# the Secretary of Trade and Industry# and the Director7Eeneral of the Council% The Director Eeneral of the Council shall ha"e no "ote%

    In addition# the +resident shall appoint the followin members from the pri"ate sector: two 83 representati"es ofnational orani4ation of employers# two 83 representati"es of national wor'ers orani4ations and one representati"e ofnational family and youth orani4ations# each for a term of three 82 years%

    *rt% => National Ganpower +lan

    The co