Labor Standards Law (Part I)

7/25/2019 Labor Standards Law (Part I)

http://slidepdf.com/reader/full/labor-standards-law-part-i 1/53

LABOR STANDARDS LAW

1. Employment Policies, Recruitment and Placement o Wor!ers, and A"encies

a. Employment Policies

LC, Art. 3. Declaration of basic policy. T#e State s#all a$ord

protection to la%or, promote ull employment, ensure e&ual 'or!

opportunities re"ardless o se(, race or creed and re"ulate t#e

relations %et'een 'or!ers and employers. T#e State s#all assure t#e

ri"#ts o 'or!ers to sel)or"ani*ation, collecti+e %ar"ainin", security o

tenure, and ust and #umane conditions o 'or!.

LC, Art. 12. Statement of objectives. -t is t#e policy o t#e Statea/ To promote and maintain a state o ull employment t#rou"#

impro+ed manpo'er trainin", allocation and utili*ation0

((((/ To stren"t#en t#e net'or! o pu%lic employment oces and

rationali*e t#e participation o t#e pri+ate sector in t#e recruitment

and placement o 'or!ers, locally and o+erseas, to ser+e national

de+elopment o%ecti+es0

1987 Constittion, S!C"#$% 3 &1'. T#e State s#all a$ord ull

protection to la%or, local and o+erseas, or"ani*ed and unor"ani*ed,

and promote ull employment and e&uality o employment

opportunities or all.

(A 8)*2, as amen+e+ by (A 1))22, Sec. 2. Declaration o Policy2a/ -n t#e pursuit o an independent orei"n policy and '#ile

considerin" national so+erei"nty, territorial inte"rity, national

interest and t#e ri"#t to sel)determination paramount in its

relations 'it# ot#er states, t#e State s#all, at all times, up#old t#e

di"nity o its citi*ens '#et#er in country or o+erseas, in "eneral,

and 3ilipino mi"rant 'or!ers, in particular, continuously monitor

international con+entions, adopt4%e si"natory to and ratiy t#ose

t#at "uarantee protection to our mi"rant 'or!ers, and endea+or to

enter into %ilateral a"reements 'it# countries #ostin" o+erseas

3ilipino 'or!ers. (amended)2%/ T#e State s#all a$ord ull protection to la%or, local and o+erseas,

or"ani*ed and unor"ani*ed, and promote ull employment ande&uality o employment opportunities or all. To'ards t#is end, t#e

State s#all pro+ide ade&uate and timely social, economic and le"al

ser+ices to 3ilipino mi"rant 'or!ers.2c/ W#ile reco"ni*in" t#e si"ni5cant contri%ution o 3ilipino mi"rant

'or!ers to t#e national economy t#rou"# t#eir orei"n e(c#an"e

remittances, t#e State does not promote o+erseas employment as a

means to sustain economic "ro't# and ac#ie+e national



de+elopment. T#e e(istence o t#e o+erseas employment pro"ram

rests solely on t#e assurance t#at t#e di"nity and undamental

#uman ri"#ts and reedoms o t#e 3ilipino citi*ens s#all not, at any

time, %e compromised or +iolated. T#e State, t#ereore, s#all

continuously create local employment opportunities and promote

t#e e&uita%le distri%ution o 'ealt# and t#e %ene5ts o

de+elopment.2"/ T#e State reco"ni*es t#at t#e most e$ecti+e tool or empo'erment

is t#e possession o s!ills %y mi"rant 'or!ers. T#e "o+ernment s#all

pro+ide t#em ree and accessi%le s!ills de+elopment and

en#ancement pro"rams. Pursuant to t#is and as soon as

practica%le, t#e "o+ernment s#all deploy and4or allo' t#e

deployment only o s!illed 3ilipino 'or!ers. (amended)

S!C. *. Deployment o 6i"rant Wor!ers. 7 T#e State s#all allo' t#e

deployment o o+erseas 3ilipino 'or!ers only in countries '#ere t#e

ri"#ts o 3ilipino mi"rant 'or!ers are protected. T#e "o+ernment

reco"ni*es any o t#e ollo'in" as a "uarantee on t#e part o t#erecei+in" country or t#e protection o t#e ri"#ts o o+erseas 3ilipino

'or!ers2a/ -t #as e(istin" la%or and social la's protectin" t#e ri"#ts o

'or!ers, includin" mi"rant 'or!ers02%/ -t is a si"natory to and4or a rati5er o multilateral con+entions,

declarations or resolutions relatin" to t#e protection o 'or!ers,

includin" mi"rant 'or!ers0 and2c/ -t #as concluded a %ilateral a"reement or arran"ement 'it# t#e

"o+ernment on t#e protection o t#e ri"#ts o o+erseas 3ilipino

Wor!ers

Pro+ided, T#at t#e recei+in" country is ta!in" positi+e, concretemeasures to protect t#e ri"#ts o mi"rant 'or!ers in urt#erance o any

o t#e "uarantees under su%para"rap#s 2a/, 2%/ and 2c/ #ereo.-n t#e a%sence o a clear s#o'in" t#at any o t#e aorementioned

"uarantees e(ists in t#e country o destination o t#e mi"rant 'or!ers,

no permit or deployment s#all %e issued %y t#e P#ilippine O+erseas

Employment Administration 2POEA/. T#e mem%ers o t#e POEA 8o+ernin" Board '#o actually +oted in

a+or o an order allo'in" t#e deployment o mi"rant 'or!ers 'it#out

any o t#e aorementioned "uarantees s#all su$er t#e penalties o

remo+al or dismissal rom ser+ice 'it# dis&uali5cation to #old any

appointi+e pu%lic oce or 5+e 29/ years, 3urt#er, t#e "o+ernment

ocial or employee responsi%le or t#e issuance o t#e permit or or

allo'in" t#e deployment o mi"rant 'or!ers in +iolation o t#is section

and in direct contra+ention o an order %y t#e POEA 8o+ernin" Board

pro#i%itin" deployment s#all %e meted t#e same penalties in t#is

section.3or t#is purpose, t#e Department o 3orei"n A$airs, t#rou"# its

orei"n posts, s#all issue a certi5cation to t#e POEA, speciyin" t#erein

t#e pertinent pro+isions o t#e recei+in" country:s la%or4social la', or



t#e con+ention4declaration4resolution, or t#e %ilateral

a"reement4arran"ement '#ic# protect t#e ri"#ts o mi"rant 'or!ers. T#e State s#all also allo' t#e deployment o o+erseas 3ilipino

'or!ers to +essels na+i"atin" t#e orei"n seas or to installations

located o$s#ore or on #i"# seas '#ose o'ners4employers are

compliant 'it# international la's and standards t#at protect t#e ri"#ts

o mi"rant 'or!ers. T#e State s#all li!e'ise allo' t#e deployment o o+erseas 3ilipino

'or!ers to companies and contractors 'it# international operations

Pro+ided, T#at t#ey are compliant 'it# standards, conditions and

re&uirements, as em%odied in t#e employment contracts prescri%ed %y

t#e POEA and in accordance 'it# internationally)accepted standards.;

S!C. . Termination or Ban on Deployment. 7 Not'it#standin" t#e

pro+isions o Section < #ereo, in pursuit o t#e national interest or

'#en pu%lic 'elare so re&uires, t#e POEA 8o+ernin" Board, ater

consultation 'it# t#e Department o 3orei"n A$airs, may, at any time,

terminate or impose a %an on t#e deployment o mi"rant 'or!ers.;

%. Employment A"encies

i. Pri+ate Sector 7 A"encies and Entities

1. Parties

a. Wor!er

LC, Art. 13. De-nitions.2a/ =Wor!er= means any mem%er o t#e la%or

orce, '#et#er employed or unemployed.

(A 8)*2, as amen+e+. Sec. 3. De-nitions 3or

purposes o t#is act2a/ >O+erseas 3ilipino 'or!er; reers to a person

'#o is to %e en"a"ed, is en"a"ed or #as %een

en"a"ed in a remunerated acti+ity in a state o

'#ic# #e or s#e is not a citi*en or on %oard a

+essel na+i"atin" t#e orei"n seas ot#er t#an a

"o+ernment s#ip used or military or non)

commercial purposes or on an installation

located o$s#ore or on t#e #i"# seas0 to %e usedinterc#an"ea%ly 'it# mi"rant 'or!er.;

%. Pri+ate employment a"ency

LC, Art. 13&c'. /Pri+ate ee)c#ar"in" employment

a"ency= means any person or entity en"a"ed in

recruitment and placement o 'or!ers or a ee



'#ic# is c#ar"ed, directly or indirectly, rom t#e

'or!ers or employers or %ot#. LC, Art. 13&+'. /=License= means a document

issued %y t#e Department o La%or aut#ori*in" a

person or entity to operate a pri+ate employment

a"ency. LC, Art. 12. Statement of objectives. -t is t#e

policy o t#e State/ To stren"t#en t#e net'or! o pu%lic

employment oces and rationali*e t#e

participation o t#e pri+ate sector in t#e

recruitment and placement o 'or!ers, locally and

o+erseas, to ser+e national de+elopment

o%ecti+es0

LC, Art. 1*. !mployment promotion. T#eSecretary o La%or s#all #a+e t#e po'er and

aut#ority2a/ To or"ani*e and esta%lis# ne' employment

oces in addition to t#e e(istin" employment

oces under t#e Department o La%or as t#e

need arises0

c. Pri+ate recruitment entity

LC, Art. 13&e'. ==Pri+ate recruitment entity=

means any person or association en"a"ed in t#e

recruitment and placement o 'or!ers, locally or

o+erseas, 'it#out c#ar"in", directly or indirectly,

any ee rom t#e 'or!ers or employers. LC, Art. 13&f'. ==Aut#ority= means a document

issued %y t#e Department o La%or aut#ori*in" a

person or association to en"a"e in recruitment and

placement acti+ities as a pri+ate recruitment entity.

LC, Art. 12. Statement o o%ecti+es. -t is t#e

policy o t#e State

/ To stren"t#en t#e net'or! o pu%licemployment oces and rationali*e t#e

participation o t#e pri+ate sector in t#e


o+erseas, to ser+e national de+elopment

o%ecti+es0



LC, Art. 1*. !mployment promotion. T#e

Secretary o La%or s#all #a+e t#e po'er and

aut#ority2a/ To or"ani*e and esta%lis# ne' employment

oces in addition to t#e e(istin" employment

oces under t#e Department o La%or as t#e

need arises0

?. Recruitment

a. Local employment

LC, Art. 13. De-nitions2%/ 0Recruitment and placement= reers to any act

o can+assin", enlistin", contractin", transportin",

utili*in", #irin" or procurin" 'or!ers, and includes

reerrals, contract ser+ices, promisin" or

ad+ertisin" or employment, locally or a%road,'#et#er or pro5t or not Pro+ided, T#at any person

or entity '#ic#, in any manner, o$ers or promises

or a ee, employment to t'o or more persons s#all

%e deemed en"a"ed in recruitment and placement.

%. O+erseas Employment

(A 8)*2, as amen+e+, S!C. . De-nition. 7 3or

purposes o t#is Act, ille"al recruitment s#all mean

any act o can+assin", enlistin", contractin",

transportin", utili*in", #irin", or procurin" 'or!ers

and includes reerrin", contract ser+ices, promisin"

or ad+ertisin" or employment a%road, '#et#er or

pro5t or not, '#en underta!en %y non)licensee or

non)#older o aut#ority contemplated under Article

1@2/ o Presidential Decree No. <<?, as amended,

ot#er'ise !no'n as t#e La%or ode o t#e

P#ilippines Pro+ided, T#at any suc# non)licensee or

non)#older '#o, in any manner, o$ers or promises

or a ee employment a%road to t'o or more

persons s#all %e deemed so en"a"ed. -t s#all

li!e'ise include t#e ollo'in" acts, '#et#er

committed %y any person, '#et#er a non)licensee,non)#older, licensee or #older o aut#ority

2a/ To c#ar"e or accept directly or indirectly any

amount "reater t#an t#at speci5ed in t#e

sc#edule o allo'a%le ees prescri%ed %y t#e

Secretary o La%or and Employment, or to

ma!e a 'or!er pay or ac!no'led"e any



amount "reater t#an t#at actually recei+ed %y

#im as a loan or ad+ance02%/ To urnis# or pu%lis# any alse notice or

inormation or document in relation to

recruitment or employment02c/ To "i+e any alse notice, testimony, inormation

or document or commit any act o

misrepresentation or t#e purpose o securin" a

license or aut#ority under t#e La%or ode, or

or t#e purpose o documentin" #ired 'or!ers

'it# t#e POEA, '#ic# include t#e act o

reprocessin" 'or!ers t#rou"# a o% order t#at

pertains to none(istent 'or!, 'or! di$erent

rom t#e actual o+erseas 'or!, or 'or! 'it# a

di$erent employer '#et#er re"istered or not

'it# t#e POEA02d/ To include or attempt to induce a 'or!er already

employed to &uit #is employment in order too$er #im anot#er unless t#e transer is

desi"ned to li%erate a 'or!er rom oppressi+e

terms and conditions o employment02e/ To inuence or attempt to inuence any person

or entity not to employ any 'or!er '#o #as not

applied or employment t#rou"# #is a"ency or

'#o #as ormed, oined or supported, or #as

contacted or is supported %y any union or

'or!ers: or"ani*ation0

2/ To en"a"e in t#e recruitment or placement o'or!ers in o%s #armul to pu%lic #ealt# or

morality or to t#e di"nity o t#e Repu%lic o t#e

P#ilippines02#/ To ail to su%mit reports on t#e status o

employment, placement +acancies, remittance

o orei"n e(c#an"e earnin"s, separation rom

o%s, departures and suc# ot#er matters or

inormation as may %e re&uired %y t#e

Secretary o La%or and Employment02i/ To su%stitute or alter to t#e preudice o t#e

'or!er, employment contracts appro+ed and

+eri5ed %y t#e Department o La%or and

Employment rom t#e time o actual si"nin"

t#ereo %y t#e parties up to and includin" t#e

period o t#e e(piration o t#e same 'it#out t#e

appro+al o t#e Department o La%or and

Employment02/ 3or an ocer or a"ent o a recruitment or

placement a"ency to %ecome an ocer or



mem%er o t#e Board o any corporation

en"a"ed in tra+el a"ency or to %e en"a"ed

directly or indirectly in t#e mana"ement o

tra+el a"ency02!/ To 'it##old or deny tra+el documents rom

applicant 'or!ers %eore departure or

monetary or 5nancial considerations, or or any

ot#er reasons, ot#er t#an t#ose aut#ori*ed

under t#e La%or ode and its implementin"

rules and re"ulations02l/ 3ailure to actually deploy a contracted 'or!er

'it#out +alid reason as determined %y t#e

Department o La%or and Employment02m/ 3ailure to reim%urse e(penses incurred %y t#e

'or!er in connection 'it# #is documentation

and processin" or purposes o deployment, in

cases '#ere t#e deployment does not actually

ta!e place 'it#out t#e 'or!er:s ault. -lle"alrecruitment '#en committed %y a syndicate or

in lar"e scale s#all %e considered an o$ense

in+ol+in" economic sa%ota"e0 and2n/ To allo' a non)3ilipino citi*en to #ead or mana"e

a licensed recruitment4mannin" a"ency.

-lle"al recruitment is deemed committed %y a

syndicate i carried out %y a "roup o t#ree 2@/ or

more persons conspirin" or conederatin" 'it# one

anot#er. -t is deemed committed in lar"e scale i

committed a"ainst t#ree 2@/ or more personsindi+idually or as a "roup.

-n addition to t#e acts enumerated a%o+e, it

s#all also %e unla'ul or any person or entity to

commit t#e ollo'in" pro#i%ited acts21/ 8rant a loan to an o+erseas 3ilipino 'or!er 'it#

interest e(ceedin" ei"#t percent 2C/ per

annum, '#ic# 'ill %e used or payment o le"al

and allo'a%le placement ees and ma!e t#e

mi"rant 'or!er issue, eit#er personally or

t#rou"# a "uarantor or accommodation party,

postdated c#ec!s in relation to t#e said loan02?/ -mpose a compulsory and e(clusi+e

arran"ement '#ere%y an o+erseas 3ilipino

'or!er is re&uired to a+ail o a loan only rom

speci5cally desi"nated institutions, entities or

persons02@/ Reuse to condone or rene"otiate a loan

incurred %y an o+erseas 3ilipino 'or!er ater

t#e latter:s employment contract #as %een



prematurely terminated t#rou"# no ault o #is

or #er o'n02</ -mpose a compulsory and e(clusi+e


'or!er is re&uired to under"o #ealt#

e(aminations only rom speci5cally desi"nated

medical clinics, institutions, entities or persons,

e(cept in t#e case o a seaarer '#ose medical

e(amination cost is s#ouldered %y t#e

principal4s#ipo'ner029/ -mpose a compulsory and e(clusi+e


'or!er is re&uired to under"o trainin", seminar,

instruction or sc#oolin" o any !ind only rom


persons, e(cept pr recommendatory trainin"s

mandated %y principals4s#ipo'ners '#ere t#e

latter s#oulder t#e cost o suc# trainin"s02/ 3or a suspended recruitment4mannin" a"ency

to en"a"e in any !ind o recruitment acti+ity

includin" t#e processin" o pendin" 'or!ers:

applications0 and2F/ 3or a recruitment4mannin" a"ency or a orei"n

principal4employer to pass on t#e o+erseas

3ilipino 'or!er or deduct rom #is or #er salary

t#e payment o t#e cost o insurance ees,

premium or ot#er insurance related c#ar"es, as

pro+ided under t#e compulsory 'or!er:s

insurance co+era"e.

T#e persons criminally lia%le or t#e a%o+e

o$enses are t#e principals, accomplices and

accessories. -n case o uridical persons, t#e ocers

#a+in" o'ners#ip, control, mana"ement or

direction o t#eir %usiness '#o are responsi%le or

t#e commission o t#e o$ense and t#e responsi%le

employees4a"ents t#ereo s#all %e lia%le.-n t#e 5lin" o cases or ille"al recruitment or

any o t#e pro#i%ited acts under t#is section, t#e

Secretary o La%or and Employment, t#e POEA

Administrator or t#eir duly aut#ori*ed

representati+es, or any a""rie+ed person may

initiate t#e correspondin" criminal action 'it# t#e

appropriate oce. 3or t#is purpose, t#e ada+its

and testimonies o operati+es or personnel rom t#e

Department o La%or and Employment, POEA and

ot#er la' enorcement a"encies '#o 'itnessed t#e



acts constitutin" t#e o$ense s#all %e sucient to

prosecute t#e accused.-n t#e prosecution o o$enses punis#a%le under

t#is section, t#e pu%lic prosecutors o t#e

Department o Gustice s#all colla%orate 'it# t#e

anti)ille"al recruitment %ranc# o t#e POEA and, in

certain cases, allo' t#e POEA la'yers to ta!e t#e

lead in t#e prosecution. T#e POEA la'yers '#o act

as prosecutors in suc# cases s#all %e entitled to

recei+e additional allo'ances as may %e

determined %y t#e POEA Administrator. T#e 5lin" o an o$ense punis#a%le under t#is

Act s#all %e 'it#out preudice to t#e 5lin" o cases

punis#a%le under ot#er e(istin" la's, rules or

re"ulations.;

2a/ Policy o dere"ulation

RA CH<?, SE. ?I. O6PREJENS-KE

DERE8LAT-ON PLAN ON RER-T6ENT

AT-K-T-ES. ) Pursuant to a pro"ressi+e

policy o dere"ulation '#ere%y t#e

mi"ration o 'or!ers %ecomes strictly a

matter %et'een t#e 'or!er and #is orei"n

employer, t#e DOLE 'it#in one 21/ year

rom t#e e$ecti+ity o t#is Act, is #ere%y

mandated to ormulate a 5+e)year

compre#ensi+e dere"ulation plan onrecruitment acti+ities ta!in" into account

la%or mar!et trends, economic conditions

o t#e country and emer"ency

circumstances '#ic# may a$ect t#e 'elare

o mi"rant 'or!ers.

RA CH<?, SE. @H. 8RADAL PJASE)OT

O3 RE8LATORM 3NT-ONS. ) Wit#in a

period o 5+e 29/ years rom t#e e$ecti+ity

o t#is Act, t#e DOLE s#all p#ase out t#e

re"ulatory unctions o t#e POEA pursuant

to t#e o%ecti+es o dere"ulation.

2%/ Policy o close "o+ernmental re"ulation

RA I<??, AN AT TO STREN8TJEN TJE

RE8LATORM 3NT-ONS O3 TJE

PJ-L-PP-NE OKERSEAS E6PLOM6ENT

AD6-N-STRAT-ON 2POEA/, A6END-N8 3OR



TJ-S PRPOSE REPBL- AT NO. CH<?,

OTJERW-SE NOWN AS TJE =6-8RANT

WORERS AND OKERSEAS 3-L-3-NOS AT

O3 1II9=)e(pressly repealed Sec. ?I and Sec.@H

@. Allo'ed and Protected Entities

a. Allo'ed Pri+ate A"encies and Entities

LC, Art. 1. rivate recritment. E(cept as

pro+ided in #apter -- o t#is Title, no person or

entity ot#er t#an t#e pu%lic employment oces,

s#all en"a"e in t#e recruitment and placement o

'or!ers.

Art. 18. an on +irect45irin6. No employer may#ire a 3ilipino 'or!er or o+erseas employment

e(cept t#rou"# t#e Boards and entities aut#ori*ed

%y t#e Secretary o La%or. Direct)#irin" %y mem%ers

o t#e diplomatic corps, international or"ani*ations

and suc# ot#er employers as may %e allo'ed %y

t#e Secretary o La%or is e(empted rom t#is

pro+ision.

Art. 2. rivate sector participation in t5e

recritment an+ placement of

orers. Pursuant to national de+elopment

o%ecti+es and in order to #arness and ma(imi*e

t#e use o pri+ate sector resources and initiati+e in

t#e de+elopment and implementation o a

compre#ensi+e employment pro"ram, t#e pri+ate

employment sector s#all participate in t#e


o+erseas, under suc# "uidelines, rules and

re"ulations as may %e issued %y t#e Secretary o

La%or.

Art. 12&f'. supra

%. Pro#i%ited Business A"encies and Entities

Art. 1. Supra

Art. 18. Supra

Art. 2. supra



Art. 12&f'. supra

2a/ Tra+el A"encies

Art. 2. "ravel a6encies pro5ibite+ to

recrit. Tra+el a"encies and sales a"encieso airline companies are pro#i%ited rom

en"a"in" in t#e %usiness o recruitment

and placement o 'or!ers or o+erseas

employment '#et#er or pro5t or not.

$!A (les, oo ##, (le 1, Section 2.

Disali-cations. ) T#e ollo'in" are not

&uali5ed to participate in t#e recruitment

and placement o 3ilipino 'or!ers o+erseasa. Tra+el a"encies and sales a"encies o

airline companies0%. Ocers or mem%ers o t#e Board o any

corporation or mem%ers in a partners#ip

en"a"ed in t#e %usiness o a tra+el

a"ency0c. orporations and partners#ips, '#en any

o its ocers, mem%ers o t#e %oard or

partners, is also an ocer, mem%er o

t#e %oard o partner o a corporation or

partners#ip en"a"ed in t#e %usiness o a

tra+el a"ency0d. Persons, partners#ips or corporations

'#ic# #a+e dero"atory records suc# as,

%ut not limited to o+erc#ar"in" o

placement or documentation ees, alse

documentation, ille"al recruitment and

s'indlin" or estaa, or t#ose con+icted o

crimes in+ol+in" moral turpitude0e. Persons employed in t#e Department or

in ot#er "o+ernment oces directly

in+ol+ed in t#e o+erseas employment

pro"ram, and t#eir relati+es 'it#in t#e

ourt# de"ree o consan"uinity or

anity0 and. Persons, partners, ocers and Directors

o corporations '#ose license #as %een

pre+iously cancelled or re+o!ed or

+iolation o t#e La%or ode, or its

implementin" rules, or ot#er rele+ant

la's, decrees, rules and re"ulations, and

issuances.



2%/ Direct #irin"

Art. 18. an on +irect45irin6. No

employer may #ire a 3ilipino 'or!er or

o+erseas employment e(cept t#rou"# t#e

Boards and entities aut#ori*ed %y t#e

Secretary o La%or. Direct)#irin" %y

mem%ers o t#e diplomatic corps,

international or"ani*ations and suc# ot#er

employers as may %e allo'ed %y t#e

Secretary o La%or is e(empted rom t#is

pro+ision.

EEPT-ONS

Art. 18, 2n+ sentence. Supra

$mnibs (les #mplementin6 (A 8)*2,

as amen+e+, (le ##, Sec. 1.2i/ Direct Jires 7 reer to 'or!ers directly

#ired %y employers or o+erseas

employment as aut#ori*ed %y t#e

Secretary o La%or and

Employment and processed %y t#e POEA,

includin"

1. T#ose #ired %y international

or"ani*ations0

?. T#ose #ired %y mem%ers o t#e

diplomatic

corps0 and

@. Name #ires or 'or!ers '#o are a%le to

secure o+erseas employment

opportunities 'it# employers 'it#out

t#e assistance or participation o any

a"ency

<. 8o+ernment Tec#ni&ues o Re"ulation 7 Pri+ateRecruitment

a. Licensin"4uali5cation o Applicants

2a/ iti*ens#ip

Art. 27. Citi:ens5ip reirement. Only

3ilipino citi*ens or corporations,



partners#ips or entities at least se+enty)

5+e percent 2F9/ o t#e aut#ori*ed and

+otin" capital stoc! o '#ic# is o'ned and

controlled %y 3ilipino citi*ens s#all %e

permitted to participate in t#e recruitment

and placement o 'or!ers, locally or

o+erseas.2))2 $!A (les, art ##, (le #,Section 1. ;ali-cations. Only t#ose

'#o possess t#e ollo'in" &uali5cations

may %e permitted to en"a"e in t#e

%usiness o recruitment and placement o

3ilipino 'or!ers2a/ 3ilipino citi*ens, partners#ips or

corporations at least se+enty 5+e

percent 2F9/ o t#e aut#ori*ed capital

stoc! o '#ic# is o'ned and controlled

%y 3ilipino citi*ens0 (((

2%/ apitali*ation

Art. 28. Capitali:ation. All applicants or

aut#ority to #ire or rene'al o license to

recruit are re&uired to #a+e suc#

su%stantial capitali*ation as determined %y

t#e Secretary o La%or.

2))2 $!A (les, art ##, (le #.Section 1. ;ali-cations. Only t#ose

'#o possess t#e ollo'in" &uali5cations

may %e permitted to en"a"e in t#e

%usiness o recruitment and placement o

3ilipino 'or!ers2%/ A minimum capitali*ation o T'o 6illion

Pesos 2P?,HHH,HHH.HH/ in case o a

sin"le proprietors#ip or partners#ip and

a minimum paid)up capital o T'o

6illion Pesos 2P?,HHH,HHH.HH/ in case o

a corporation0 Pro+ided t#at t#ose 'it#

e(istin" licenses s#all, 'it#in our years

rom e$ecti+ity #ereo, increase t#eircapitali*ation or paid up capital, as t#e

case may %e, to T'o 6illion Pesos

2c/ Kalidity o License

2))2 $!A (les, art ##, (le ##.



Section . rovisional License.

Applicants or ne' license s#all %e issued a

pro+isional license '#ic# s#all %e +alid or a

limited period o one 21/ year 'it#in '#ic#

t#e applicant s#ould %e a%le to comply 'it#

its underta!in" to deploy 1HH 'or!ers to its

ne' principal. T#e license o a complyin"

a"ency s#all %e up"raded to a ull license

entitlin" t#em to anot#er t#ree years o

operation. Non)complyin" a"encies 'ill %e

noti5ed o t#e e(piration o t#eir license.

2))2 $!A (les, art ##, (le ##.Section . <ali+ity of t5e License.

E(cept in case o a pro+isional license,

e+ery license s#all %e +alid or our 2</

years rom t#e date o issuance unless

sooner cancelled, re+o!ed or suspended or+iolation o applica%le P#ilippine la', t#ese

rules and ot#er pertinent issuances. Suc#

license s#all %e +alid only at t#e place4s

stated t#erein and '#en used %y t#e

licensed person, partners#ip or corporation.

2d/ Non)transera%ility

Art. 29. %on4transferability of license

or at5ority. No license or aut#ority s#all

%e used directly or indirectly %y any personot#er t#an t#e one in '#ose a+or it 'as

issued or at any place ot#er t#an t#at

stated in t#e license or aut#ority %e

transerred, con+eyed or assi"ned to any

ot#er person or entity. Any transer o

%usiness address, appointment or

desi"nation o any a"ent or representati+e

includin" t#e esta%lis#ment o additional

oces any'#ere s#all %e su%ect to t#e

prior appro+al o t#e Department o La%or.

2))2 $!A (les, art ##, (le ##.Section 7. %on4"ransferability of

License. No license s#all %e transerred,

con+eyed or assi"ned to any person,

partners#ip or corporation. -t s#all not %e

used directly or indirectly %y any person,

partners#ip or corporation ot#er t#an t#e

one in '#ose a+or it 'as issued.



-n case o deat# o t#e sole proprietor

and to pre+ent disruption o operation to

t#e preudice o t#e interest o le"itimate

#eirs, t#e license may %e e(tended upon

re&uest o t#e #eirs, to continue only or

t#e purpose o 'indin" up %usiness

operations.

2))2 $!A (les, art ##, (le ##.Section 8. C5an6e of

$ners5ip=(elations5ip of Sin6le

roprietors5ip or artners5ip. Transer

or c#an"e o o'ners#ip o a sin"le

proprietors#ip licensed to en"a"e in

o+erseas employment s#all cause t#e

automatic re+ocation o t#e license.A c#an"e in t#e relations#ip o t#e

partners in a partners#ip duly licensed toen"a"e in o+erseas employment '#ic#

materially interrupts t#e course o t#e

%usiness or results in t#e actual dissolution

o t#e partners#ip s#all li!e'ise cause t#e

automatic re+ocation o t#e license.

2))2 $!A (les, art ##, (le ##.Section 9. >p6ra+in6 of Sin6le

roprietors5ip or artners5ips. License

#olders '#ic# are sin"le proprietors#ips or

partners#ips may, su%ect to t#e "uidelineso t#e Administration, con+ert into

corporation or purposes o up"radin" or

raisin" t#eir capa%ilities to respond

ade&uately to de+elopments4c#an"es in

t#e international la%or mar!et and to

ena%le t#em to %etter comply 'it# t#eir

responsi%ilities arisin" rom t#e recruitment

and deployment o 'or!ers o+erseas. T#e appro+al o mer"er, consolidation

or up"radin" s#all automatically re+o!e or

cancel t#e licenses o t#e sin"le

proprietors#ips, partners#ips or

corporations so mer"ed, consolidated or

up"raded

2e/ Re"istration4License ees

Art. 3). (e6istration fees. T#e Secretary

o La%or s#all promul"ate a sc#edule o



ees or t#e re"istration o all applicants or

license or aut#ority.

2))2 $!A (les, art ##, (le ##.Section *. ayment of ?ees an+

ostin6 of on+s. pon appro+al o t#e

application, t#e applicant s#all pay a

license ee o P9H,HHH.HH. -t s#all su%mit an

Escro' A"reement in t#e amount o

P1,HHH,HHH.HH, con5rmation o escro'

deposit 'it# an accredited reputa%le %an!

and a surety %ond o P1HH,HHH.HH rom a

%ondin" company accepta%le to t#e

Administration and accredited 'it# t#e

-nsurance ommission.A"encies 'it# e(istin" licenses s#all,

'it#in our years rom e$ecti+ity #ereo,

increase t#eir Escro' Deposit to One 6illionPesos .

T#e %onds and escro' s#all ans'er or

all +alid and le"al claims arisin" rom

+iolations o t#e conditions or t#e "rant

and use o t#e license, and4or accreditation

and contracts o employment. T#e %onds

and escro' s#all li!e'ise "uarantee

compliance 'it# t#e pro+isions o t#e ode

and its implementin" rules and re"ulations

relatin" to recruitment and placement, t#e

Rules o t#e Administration and rele+antissuances o t#e Department and all

lia%ilities '#ic# t#e Administration may

impose. T#e surety %onds s#all include t#e

condition >t#at notice to t#e principal is

notice to t#e surety and t#at any ud"ment

a"ainst t#e principal in connection 'it#

matters allin" under POEA:s4NLR:s

urisdiction s#all %e %indin" and conclusi+e

on t#e surety. T#e surety %onds s#all co+er

t#e +alidity period o t#e license

2/ Bonds

Art. 31. on+s. All applicants or license

or aut#ority s#all post suc# cas# and surety

%onds as determined %y t#e Secretary o

La%or to "uarantee compliance 'it#

prescri%ed recruitment procedures, rules



and re"ulations, and terms and conditions

o employment as may %e appropriate.

2))2 $!A (les, art ##, (le ##.Section *. supra

%. Wor!er:s 3ees4Documentation 3ees4Placement 3ees

Art. 32. ?ees to be pai+ by orers. Any person

applyin" 'it# a pri+ate ee)c#ar"in" employment

a"ency or employment assistance s#all not %e

c#ar"ed any ee until #e #as o%tained employment

t#rou"# its e$orts or #as actually commenced

employment. Suc# ee s#all %e al'ays co+ered 'it#

t#e appropriate receipt clearly s#o'in" t#e amount

paid. T#e Secretary o La%or s#all promul"ate a

sc#edule o allo'a%le ees.

2))2 $!A (les, art ##, (le <, Section 1.

Section 1. Service ?ee. ) A"encies s#all c#ar"e

rom t#eir principals a ser+ice ee to co+er ser+ices

rendered in t#e recruitment, documentation and

placement o 'or!ers. T#e Administration s#all

pro+ide incenti+es to a"encies and employers '#o

are a%le to comply 'it# t#is rule.2))2 $!A (les, art ##, (le <, Section 2.

?ees an+ Costs C5ar6eable to rincipals. )

nless ot#er'ise pro+ided, t#e principal s#all %e

responsi%le or t#e payment o t#e ollo'in"a. +isa ee0%. airarec. POEA processin" ee0 andd. OWWA mem%ers#ip ee

2))2 $!A (les, art ##, (le <, Section 3.

?ees=Costs C5ar6eable to t5e @orers 4 E(cept

'#ere t#e pre+ailin" system in t#e country '#ere

t#e 'or!er is to %e deployed, eit#er %y la', policy

or practice, do not allo' t#e c#ar"in" or collection

o placement and recruitment ee, a land)%ased

a"ency may c#ar"e and collect rom its #ired'or!ers a placement ee in an amount e&ui+alent

to one mont# salary, e(clusi+e o documentation

costs.Documentation costs to %e paid %y t#e

'or!er s#all include, %ut not limited to, e(penses

or t#e ollo'in"a. Passport



%. NB-4Police4Baran"ay learancec. Aut#enticationd. Birt# erti5catee. 6edicare. Trade Test, i necessary". -noculation, '#en re&uired %y #ost country

#. 6edical E(amination ees-n t#e e+ent t#at t#e recruitment a"ency

a"rees to perorm documentation ser+ices, t#e

'or!er s#all pay only t#e actual cost o t#e

document '#ic# s#all %e co+ered %y ocial

receipts. T#e a%o+e)mentioned placement and

documentation costs are t#e only aut#ori*ed

payments t#at may %e collected rom a #ired

'or!er. No ot#er c#ar"es in '#ate+er orm, manner

or purpose, s#all %e imposed on and %e paid %y t#e

'or!er 'it#out prior appro+al o t#e POEA.Suc# ees s#all %e collected rom a #ired 'or!er

only ater #e #as o%tained employment t#rou"# t#e

acilities o t#e recruitment a"ency.

SA>% v S>%AC! #%"!(%A"#$%AL BA%A!B!%" S!(<#C!S

23e%. ?@, ?H110 G. Nac#ura/

S>BBA( A+elina Sa"un 5led a case a"ainst Sunace -nternational or

collection o e(cess placement ee. S#e claimed t#at aside rom payin"

P@H, s#e issued a promissory note, and t#at #er orei"n employer #as

%een deductin" rom #er salary as part o t#e placement ee. Jo'e+er,

s#e 'as not a%le to present any e+idence e(cept or t#e promissorynote 2'#ic# is not e+en ade&uate to pro+e e(cessi+e ee/. T#e ourt

sided 'it# Sunace '#o presented an ac!no'led"ement receipt si"ned

%y A+elina s#o'in" t#e amount collected, '#ic# is aut#ori*ed %y POEA.

D$C"(#%! 6ere "eneral alle"ations o payment o e(cessi+e

placement ees cannot %e "i+en merit as t#e c#ar"e o ille"al e(action

is considered a "ra+e o$ense '#ic# could cause t#e suspension or

cancellation o t#e a"ency:s license. T#ey s#ould %e pro+en and

su%stantiated %y clear, credi%le, and competent e+idence.

c. Reports4Employment -normation

Art. 33. (eports on employment

stats. W#ene+er t#e pu%lic interest re&uires, t#e

Secretary o La%or may direct all persons or entities

'it#in t#e co+era"e o t#is Title to su%mit a report

on t#e status o employment, includin" o%

+acancies, details o o% re&uisitions, separation



rom o%s, 'a"es, ot#er terms and conditions and

ot#er employment data.

Art. 1*. !mployment promotion. T#e Secretary

o La%or s#all #a+e t#e po'er and aut#ority2</ To re&uire any person, esta%lis#ment,

or"ani*ation or institution to su%mit suc#

employment inormation as may %e prescri%ed

%y t#e Secretary o La%or.

Art. 3*. ro5ibite+ practices. -t s#all %e unla'ul

or any indi+idual, entity, licensee, or #older o

aut#ority2#/ To ail to 5le reports on t#e status o




inormation as may %e re&uired %y t#e Secretaryo La%or.

(A 8)*2, as amen+e+. S!C. . De-nition. 7 3or

purposes o t#is Act, ille"al recruitmentQs#all


committed %y any person, '#et#er a non)licensee,

non)#older, licensee or #older o aut#ority2#/ To ail to su%mit reports on t#e status o



o%s, departures and suc# ot#er matters orinormation as may %e re&uired %y t#e Secretary

o La%or and Employment0

d. -lle"al Recruitment Simple4uali5ed or Syndicated

Art. 3*. ro5ibite+ practices. -t s#all %e unla'ul

or any indi+idual, entity, licensee, or #older o

aut#ority1. To c#ar"e or accept, directly or indirectly, any



Secretary o La%or, or to ma!e a 'or!er pay anyamount "reater t#an t#at actually recei+ed %y

#im as a loan or ad+ance0?. To urnis# or pu%lis# any alse notice or


recruitment or employment0@. To "i+e any alse notice, testimony, inormation





license or aut#ority under t#is ode.<. To induce or attempt to induce a 'or!er already

employed to &uit #is employment in order to

o$er #im to anot#er unless t#e transer is

desi"ned to li%erate t#e 'or!er rom oppressi+e

terms and conditions o employment09. To inuence or to attempt to inuence any

person or entity not to employ any 'or!er '#o

#as not applied or employment t#rou"# #is

a"ency0. To en"a"e in t#e recruitment or placement o

'or!ers in o%s #armul to pu%lic #ealt# or


P#ilippines0F. To o%struct or attempt to o%struct inspection %y

t#e Secretary o La%or or %y #is duly aut#ori*ed

representati+es0C. To ail to 5le reports on t#e status o




inormation as may %e re&uired %y t#e Secretary

o La%or.I. To su%stitute or alter employment contracts

appro+ed and +eri5ed %y t#e Department o

La%or rom t#e time o actual si"nin" t#ereo %y

t#e parties up to and includin" t#e periods o

e(piration o t#e same 'it#out t#e appro+al ot#e Secretary o La%or0

1H.To %ecome an ocer or mem%er o t#e Board o

any corporation en"a"ed in tra+el a"ency or to

%e en"a"ed directly or indirectly in t#e

mana"ement o a tra+el a"ency0 and11.To 'it##old or deny tra+el documents rom

applicant 'or!ers %eore departure or monetary

or 5nancial considerations ot#er t#an t#ose

aut#ori*ed under t#is ode and its

implementin" rules and re"ulations.

Art. 38. #lle6al recritment.2a/ Any recruitment acti+ities, includin" t#e

pro#i%ited practices enumerated under Article @<

o t#is ode, to %e underta!en %y non)licensees

or non)#olders o aut#ority, s#all %e deemed

ille"al and punis#a%le under Article @I o t#is

ode. T#e Department o La%or and Employment



or any la' enorcement ocer may initiate

complaints under t#is Article.2%/ -lle"al recruitment '#en committed %y a

syndicate or in lar"e scale s#all %e considered an

o$ense in+ol+in" economic sa%ota"e and s#all

%e penali*ed in accordance 'it# Article @I

#ereo.-lle"al recruitment is deemed committed %y a

syndicate i carried out %y a "roup o t#ree 2@/ or

more persons conspirin" and4or conederatin"

'it# one anot#er in carryin" out any unla'ul or

ille"al transaction, enterprise or sc#eme de5ned

under t#e 5rst para"rap# #ereo. -lle"al

recruitment is deemed committed in lar"e scale

i committed a"ainst t#ree 2@/ or more persons

indi+idually or as a "roup.

(A 8)*2, as amen+e+, Sec. . De-nition. 7 3orpurposes o t#is Act, ille"al recruitment s#all mean

any act o can+assin", enlistin", contractin",

transportin", utili*in", #irin", or procurin" 'or!ers

and includes reerrin", contract ser+ices, promisin"

or ad+ertisin" or employment a%road, '#et#er or

pro5t or not, '#en underta!en %y non)licensee or

non)#older o aut#ority contemplated under Article

1@2/ o Presidential Decree No. <<?, as amended,

ot#er'ise !no'n as t#e La%or ode o t#e

P#ilippines Pro+ided, T#at any suc# non)licensee or

non)#older '#o, in any manner, o$ers or promisesor a ee employment a%road to t'o or more

persons s#all %e deemed so en"a"ed. -t s#all


committed %y any person, '#et#er a non)licensee,

non)#older, licensee or #older o aut#ority

2a/ To c#ar"e or accept directly or indirectly any



Secretary o La%or and Employment, or to

ma!e a 'or!er pay or ac!no'led"e anyamount "reater t#an t#at actually recei+ed %y

#im as a loan or ad+ance02%/ To urnis# or pu%lis# any alse notice or


recruitment or employment02c/ To "i+e any alse notice, testimony, inormation





license or aut#ority under t#e La%or ode, or

or t#e purpose o documentin" #ired 'or!ers

'it# t#e POEA, '#ic# include t#e act o

reprocessin" 'or!ers t#rou"# a o% order t#at

pertains to none(istent 'or!, 'or! di$erent

rom t#e actual o+erseas 'or!, or 'or! 'it# a

di$erent employer '#et#er re"istered or not

'it# t#e POEA02d/ To include or attempt to induce a 'or!er already

employed to &uit #is employment in order to

o$er #im anot#er unless t#e transer is

desi"ned to li%erate a 'or!er rom oppressi+e

terms and conditions o employment02e/ To inuence or attempt to inuence any person

or entity not to employ any 'or!er '#o #as not

applied or employment t#rou"# #is a"ency or

'#o #as ormed, oined or supported, or #as

contacted or is supported %y any union or'or!ers: or"ani*ation0

2/ To en"a"e in t#e recruitment or placement o

'or!ers in o%s #armul to pu%lic #ealt# or


P#ilippines02#/ To ail to su%mit reports on t#e status o




inormation as may %e re&uired %y t#eSecretary o La%or and Employment0

2i/ To su%stitute or alter to t#e preudice o t#e

'or!er, employment contracts appro+ed and

+eri5ed %y t#e Department o La%or and

Employment rom t#e time o actual si"nin"

t#ereo %y t#e parties up to and includin" t#e

period o t#e e(piration o t#e same 'it#out t#e

appro+al o t#e Department o La%or and

Employment02/ 3or an ocer or a"ent o a recruitment or

placement a"ency to %ecome an ocer or

mem%er o t#e Board o any corporation

en"a"ed in tra+el a"ency or to %e en"a"ed

directly or indirectly in t#e mana"ement o

tra+el a"ency02!/ To 'it##old or deny tra+el documents rom

applicant 'or!ers %eore departure or

monetary or 5nancial considerations, or or any

ot#er reasons, ot#er t#an t#ose aut#ori*ed



under t#e La%or ode and its implementin"

rules and re"ulations02l/ 3ailure to actually deploy a contracted 'or!er

'it#out +alid reason as determined %y t#e

Department o La%or and Employment02m/ 3ailure to reim%urse e(penses incurred %y t#e

'or!er in connection 'it# #is documentation

and processin" or purposes o deployment, in

cases '#ere t#e deployment does not actually

ta!e place 'it#out t#e 'or!er:s ault. -lle"al

recruitment '#en committed %y a syndicate or

in lar"e scale s#all %e considered an o$ense

in+ol+in" economic sa%ota"e0 and2n/ To allo' a non)3ilipino citi*en to #ead or mana"e

a licensed recruitment4mannin" a"ency.

-lle"al recruitment is deemed committed %y a

syndicate i carried out %y a "roup o t#ree 2@/ ormore persons conspirin" or conederatin" 'it# one

anot#er. -t is deemed committed in lar"e scale i

committed a"ainst t#ree 2@/ or more persons

indi+idually or as a "roup.-n addition to t#e acts enumerated a%o+e, it

s#all also %e unla'ul or any person or entity to

commit t#e ollo'in" pro#i%ited acts21/ 8rant a loan to an o+erseas 3ilipino 'or!er 'it#

interest e(ceedin" ei"#t percent 2C/ per

annum, '#ic# 'ill %e used or payment o le"al

and allo'a%le placement ees and ma!e t#emi"rant 'or!er issue, eit#er personally or

t#rou"# a "uarantor or accommodation party,

postdated c#ec!s in relation to t#e said loan02?/ -mpose a compulsory and e(clusi+e


'or!er is re&uired to a+ail o a loan only rom


persons02@/ Reuse to condone or rene"otiate a loan

incurred %y an o+erseas 3ilipino 'or!er ater

t#e latter:s employment contract #as %een

prematurely terminated t#rou"# no ault o #is

or #er o'n02</ -mpose a compulsory and e(clusi+e


'or!er is re&uired to under"o #ealt#

e(aminations only rom speci5cally desi"nated

medical clinics, institutions, entities or persons,

e(cept in t#e case o a seaarer '#ose medical



e(amination cost is s#ouldered %y t#e

principal4s#ipo'ner029/ -mpose a compulsory and e(clusi+e


'or!er is re&uired to under"o trainin", seminar,

instruction or sc#oolin" o any !ind only rom


persons, e(cept pr recommendatory trainin"s

mandated %y principals4s#ipo'ners '#ere t#e

latter s#oulder t#e cost o suc# trainin"s02/ 3or a suspended recruitment4mannin" a"ency

to en"a"e in any !ind o recruitment acti+ity

includin" t#e processin" o pendin" 'or!ers:

applications0 and2F/ 3or a recruitment4mannin" a"ency or a orei"n

principal4employer to pass on t#e o+erseas

3ilipino 'or!er or deduct rom #is or #er salary

t#e payment o t#e cost o insurance ees,premium or ot#er insurance related c#ar"es, as

pro+ided under t#e compulsory 'or!er:s

insurance co+era"e.

T#e persons criminally lia%le or t#e a%o+e

o$enses are t#e principals, accomplices and

accessories. -n case o uridical persons, t#e ocers

#a+in" o'ners#ip, control, mana"ement or

direction o t#eir %usiness '#o are responsi%le or

t#e commission o t#e o$ense and t#e responsi%le

employees4a"ents t#ereo s#all %e lia%le.-n t#e 5lin" o cases or ille"al recruitment or

any o t#e pro#i%ited acts under t#is section, t#e

Secretary o La%or and Employment, t#e POEA

Administrator or t#eir duly aut#ori*ed

representati+es, or any a""rie+ed person may

initiate t#e correspondin" criminal action 'it# t#e

appropriate oce. 3or t#is purpose, t#e ada+its

and testimonies o operati+es or personnel rom t#e

Department o La%or and Employment, POEA and

ot#er la' enorcement a"encies '#o 'itnessed t#e

acts constitutin" t#e o$ense s#all %e sucient toprosecute t#e accused.-n t#e prosecution o o$enses punis#a%le under

t#is section, t#e pu%lic prosecutors o t#e

Department o Gustice s#all colla%orate 'it# t#e

anti)ille"al recruitment %ranc# o t#e POEA and, in

certain cases, allo' t#e POEA la'yers to ta!e t#e

lead in t#e prosecution. T#e POEA la'yers '#o act



as prosecutors in suc# cases s#all %e entitled to

recei+e additional allo'ances as may %e

determined %y t#e POEA Administrator. T#e 5lin" o an o$ense punis#a%le under t#is

Act s#all %e 'it#out preudice to t#e 5lin" o cases

punis#a%le under ot#er e(istin" la's, rules or

re"ulations.

(A 8)*2, as amen+e+, Sec. 7. enalties )2a/ Any person ound "uilty o ille"al recruitment

s#all su$er t#e penalty o imprisonment o not

less t#an si( 2/ years and one 21/ day %ut not

more t#an t'el+e 21?/ years and a 5ne not less

t#an t'o #undred t#ousand pesos

2P?HH,HHH.HH/ nor more t#an 5+e #undred

t#ousand pesos 2P9HH,HHH.HH/. 2%/ T#e penalty o lie imprisonment and a 5ne o

not less t#an 5+e #undred t#ousand pesos2P9HH,HHH.HH/ nor more t#an one million pesos

2P1,HHH,HHH.HH/ s#all %e imposed i ille"al

recruitment constitutes economic sa%ota"e as

de5ned #erein.Pro+ided, #o'e+er, t#at t#e ma(imum penalty

s#all %e imposed i t#e person ille"ally recruited is

less t#an ei"#teen 21C/ years o a"e or committed

%y a non)licensee or non)#older o aut#ority.

(A 8)*2, as amen+e+, Sec. 8. ro5ibition on

oEcials an+ employees. ) -t s#all %e unla'ul orany ocial or employee o t#e Department o La%or

and Employment, t#e P#ilippine O+erseas

Employment Administration, or t#e O+erseas

Wor!ers Welare Administration, or t#e Department

o 3orei"n A$airs, or ot#er "o+ernment a"encies

in+ol+ed in t#e implementation o t#is Act, or t#eir

relati+es 'it#in t#e ourt# ci+il de"ree o

consan"uinity or anity, to en"a"e, directly or

indirectly, in t#e %usiness o recruitin" mi"rant

'or!ers as de5ned in t#is Act. T#e penalties s#all

%e imposed upon t#em.

(A 8)*2, as amen+e+, Sec. 9. <ene. ) A

criminal action arisin" rom ille"al recruitment as

de5ned #erein s#all %e 5led 'it# t#e Re"ional Trial

ourt o t#e pro+ince or city '#ere t#e o$ense 'as

committed or '#ere t#e o$ended party actually

resides at t#e same time o t#e commission o t#e

o$ense Pro+ided, T#at t#e court '#ere t#e criminal



action is 5rst 5led s#all ac&uire urisdiction to t#e

e(clusion o ot#er courts. Pro+ided, #o'e+er, T#at

t#e aorestated pro+isions s#all also apply to t#ose

criminal actions t#at #a+e already %een 5led in

court at t#e time o t#e e$ecti+ity o t#is Act.

(A 8)*2, as amen+e+, Sec. 1). Boney claims.

4 Not'it#standin" any pro+ision o la' to t#e

contrary, t#e La%or Ar%iters o t#e National La%or

Relations ommission 2NLR/ s#all #a+e t#e

ori"inal and e(clusi+e urisdiction to #ear and

decide, 'it#in ninety 2IH/ calendar days ater t#e

5lin" o t#e complaint, t#e claims arisin" out o an

employer)employee relations#ip or %y +irtue o any

la' or contract in+ol+in" 3ilipino 'or!ers or

o+erseas deployment includin" claims or actual,

moral, e(emplary and ot#er orms o dama"e.

onsistent 'it# t#is mandate, t#e NLR s#allendea+or to update and !eep a%reast 'it# t#e

de+elopments in t#e "lo%al ser+ices industry. T#e lia%ility o t#e principal4employer and t#e

recruitment4placement a"ency or any and all

claims under t#is section s#all %e oint and se+eral.

T#is pro+ision s#all %e incorporated in t#e contract

or o+erseas employment and s#all %e a condition

precedent or its appro+al. T#e perormance %ond

to de 5led %y t#e recruitment4placement a"ency, as

pro+ided %y la', s#all %e ans'era%le or all money

claims or dama"es t#at may %e a'arded to t#e'or!ers. - t#e recruitment4placement a"ency is a

uridical %ein", t#e corporate ocers and directors

and partners as t#e case may %e, s#all t#emsel+es

%e ointly and solidarily lia%le 'it# t#e corporation

or partners#ip or t#e aoresaid claims and

dama"es.Suc# lia%ilities s#all continue durin" t#e

entire period or duration o t#e employment

contract and s#all not %e a$ected %y any

su%stitution, amendment or modi5cation made

locally or in a orei"n country o t#e said contract.Any compromise4amica%le settlement or

+oluntary a"reement on money claims inclusi+e o

dama"es under t#is section s#all %e paid 'it#in

t#irty 2@H/ days rom appro+al o t#e settlement %y

t#e appropriate aut#ority.-n case o termination o o+erseas

employment 'it#out ust, +alid or aut#ori*ed cause



as de5ned %y la' or contract, or any unaut#ori*ed

deductions rom t#e mi"rant 'or!er:s salary, t#e

'or!er s#all %e entitled to t#e ull reim%ursement i

#is placement ee and t#e deductions made 'it#

interest at t'el+e percent 21?/ per annum, plus

#is salaries or t#e une(pired portion o #is

employment contract or or t#ree 2@/ mont#s or

e+ery year o t#e une(pired term, '#ic#e+er is less.-n case o a 5nal and e(ecutory ud"ement

a"ainst a orei"n employer4principal, it s#all %e

automatically dis&uali5ed, 'it#out urt#er

proceedin"s, rom participatin" in t#e P#ilippine

O+erseas Employment Pro"ram and rom recruitin"

and #irin" 3ilipino 'or!ers until and unless it ully

satis5es t#e ud"ement a'ard.Noncompliance 'it# t#e mandatory periods

or resolutions o case pro+ided under t#is section

s#all su%ect t#e responsi%le ocials to any or all o t#e ollo'in" penalties

2a/ T#e salary o any suc# ocial '#o ails to

render #is decision or resolution 'it#in t#e

prescri%ed period s#all %e, or caused to %e,

'it##eld until t#e said ocial complies

t#ere'it#02%/ Suspension or not more t#an ninety 2IH/

days0 or2c/ Dismissal rom t#e ser+ice 'it#

dis&uali5cation to #old any appointi+e pu%lic

oce or 5+e 29/ years.Pro+ided, #o'e+er, T#at t#e penalties #erein

pro+ided s#all %e 'it#out preudice to any lia%ility

'#ic# any suc# ocial may #a+e incurred under

ot#er e(istin" la's or rules and re"ulations as a

conse&uence o +iolatin" t#e pro+isions o t#is

para"rap#.

(A 8)*2, as amen+e+, Sec. 11. Ban+atory

perio+s for resoltion of ille6al recritment

cases. ) T#e preliminary in+esti"ations o cases

under t#is Act s#all %e terminated 'it#in a period o

t#irty 2@H/ calendar days rom t#e date o t#eir

5lin". W#ere t#e preliminary in+esti"ation is

conducted %y a prosecution ocer and a prima

acie case is esta%lis#ed, t#e correspondin"

inormation s#all %e 5led in court 'it#in t'enty)our

2?</ #ours rom t#e termination o t#e

in+esti"ation. - t#e preliminary in+esti"ation is

conducted %y a ud"e and a prima acie case is



ound to e(ist, prosecution ocer 'it#in orty)ei"#t

2<C/ #ours rom t#e date o receipt o t#e records o

t#e case.

(A 8)*2, as amen+e+, Sec. 12. rescriptive

perio+s. ) -lle"al recruitment cases under t#is Act

s#all prescri%e in 5+e 29/ years Pro+ided, #o'e+er,

t#at ille"al recruitment cases in+ol+in" economic

sa%ota"e as de5ned #erein s#all prescri%e in

t'enty 2?H/ years.

2a/ W#en underta!en %y non)licensees, non)

#olders

!$L! v A%!L BA"!$ an+ <#C!%"A LA#F 2April ??, ?H190 G. Del

astillo/

S>BBA( An"el 6ateo and Kicenta Lapi* promised 5+e o+erseas

applicants employments in Gapan in e(c#an"e or a ee ran"in" romP1C,999 to P?9,HHH eac#. W#en no employment came, t#e t'o 'ere

c#ar"ed and con+icted 'it# ille"al recruitment in a lar"e scale and

estaa. T#e ourt up#eld t#e con+iction, statin" t#at all t#e elements o

%ot# crimes 'ere present.

D$C"(#%! T#e elements o ille"al recruitment in a lar"e scale are

21/ t#e person c#ar"ed undertoo! recruitment acti+ity as de5ned under

Section o RA CH<?0 2?/ t#e accused did not #a+e t#e license o t#e

aut#ority to la'ully en"a"e in t#e recruitment o 'or!ers0 and 2@/ t#e

accused committed t#e same a"ainst t#ree or more persons

indi+idually or as a "roup. Since t#e de5nition o >ille"al recruitment;

under t#e la' includes t#e p#rase >'#et#er or pro5t or not;, it is

immaterial t#at money is recei+ed. W#at is important is t#at t#e

accused 'as suciently in+ol+ed in t#e pro#i%ited recruitment. A

person con+icted or ille"al recruitment under t#e la', may, or t#e

same acts, %e separately con+icted or estaa under Article @19, par.

?2a/ o t#e Re+ised Penal ode.

!$L! v D$L$(!S $CD!% 2Gune 1, ?H110 G. Leonardo)de astro/

S>BBA( Deendant Ocden 'as c#ar"ed 'it# ille"al recruitment in

lar"e scale and estaa or promisin" complainants and < ot#er people

o%s in -taly or a ee. S#e collected t#e ees, application orms, and

assisted t#em in t#eir medical e(ams %ut t#e +ictims ne+er actually

"ot to lea+e or -taly. T#e ourt ound #er "uilty %eyond reasona%le

dou%t o ille"al recruitment in lar"e scale as punis#ed %y RA CH<? in

relation to t#e La%or ode and estaa as punis#ed %y t#e RP.

D$C"(#%! Art. 1@ 2%/ o t#e La%or ode de5nes and enumerates t#e

acts '#ic# constitute recruitment and placement. T#e amendments to

t#e La%or ode introduced %y RA CH<? 26i"rant Wor!ers and O+erseas

3ilipinos Act o 1II9/ %roadened t#e concept o ille"al recruitment and



pro+ided sti$er penalties, especially or t#ose t#at constitute economic

sa%ota"e, i.e., ille"al recruitment in lar"e scale and ille"al recruitment

committed %y a syndicate.

-t is 'ell)settled t#at to pro+e ille"al recruitment, it must %e

s#o'n t#at appellant "a+e complainants t#e distinct impression t#at

#e #ad t#e po'er or a%ility to send complainants a%road or 'or! suc#

t#at t#e latter 'ere con+inced to part 'it# t#eir money in order to %eemployed. Since ille"al recruitment under Section 2m/ can %e

committed %y any person, e+en %y a licensed recruiter, a certi5cation

on '#et#er a person #ad a license to recruit or not, is inconse&uential.

2%/ Pro#i%ited practices

!("=CB BA%$@!( !G$%!%" C$. #%C. v A(BA%D$ <#%>A

2Sept. ?H1?0 G. Brion/

S>BBA( Respondents 'ere deployed %y PERT4P6 6anpo'er to

'or! in 6odern 6etal Solutions in Du%ai, AE. pon reac#in" Du%ai,

respondents 'ere s#oc!ed to 5nd out t#at t#eir 'or!in" and li+in"conditions in Du%ai 'ere +ery di$erent rom t#at '#ic# 'as indicated

in t#e contracts t#ey si"ned. W#ile in Du%ai, t#ey 'ere also re&uired to

si"n ne' employment contracts. Su%se&uently, respondents resi"ned.

T#e ourt #eld t#at t#e a"ency and 6odern 6etal committed a"rant

+iolations o t#e la' on o+erseas employment, as 'ell as %asic norms

o decency and air play in an employment relations#ip.

D$C"(#%! -t is unla'ul to su%stitute or alter employment contracts

appro+ed and +eri5ed %y t#e DOLE rom t#e time o actual si"nin"

t#ereo %y t#e parties up to and includin" t#e periods o e(piration o

t#e same 'it#out t#e appro+al o t#e Secretary o La%or.

S"$L"4%#!LS!% "(A%S$. ($>, #%C. H CI>% A# SI#

BB". v S>L!C#$ B!D!;>#LL$ 2Gan. 1C, ?H1?0 G. Pere*/

S>BBA( 6ede&uillo 'as #ired %y Stolt)Nielsen as T#ird Assistant

En"ineer on %oard t#e +essel =Stolt Aspiration=. Je 'as on %oard t#e

said +essel or t#ree mont#s, ater '#ic# t#e employment contract 'as

no+ated %y a second contract, '#ic# indicated t#at #e 'as supposed

to %e deployed to anot#er +essel, 6K =Stold Pride.= Despite t#e

perection o t#e second contract, 6ede&uillo 'as not deployed,

promptin" #im to 5le an action or ille"al dismissal, or '#ic# #e 'as

a'arded dama"es.

D$C"(#%! Distinction must %e made %et'een t#e perection o t#e

employment contract and t#e commencement o t#e employer)

employee relations#ip. T#e perection o t#e contract, '#ic# in t#is

case coincided 'it# t#e date o e(ecution t#ereo, occurred '#en

petitioner and respondent a"reed on t#e o%ect and t#e cause, as 'ell

as t#e rest o t#e terms and conditions t#erein. T#e commencement o

t#e employer)employee relations#ip 'ould #a+e ta!en place #ad

petitioner %een actually deployed rom t#e point o #ire. T#us, e+en



%eore t#e start o any employer)employee relations#ip,

contemporaneous 'it# t#e perection o t#e employment contract 'as

t#e %irt# o certain ri"#ts and o%li"ations, t#e %reac# o '#ic# may

"i+e rise to a cause o action a"ainst t#e errin" party. T#us, i t#e

re+erse #ad #appened, t#at is t#e seaarer ailed or reused to %e

deployed as a"reed upon, #e 'ould %e lia%le or dama"es.

<#LBA S>L#BA% v !$L! 2No+. ?<, ?H1<0 G./

S>BBA( Petitioner 'as c#ar"ed and con+icted o ? counts o ille"al

recruitment and @ counts o estaa. A:s decision %ecame 5nal since

Suliman ailed to su%mit 6R. Suliman:s su%se&uent 6otion to Readmit

'as denied %y t#e A and t#e S. T#e S #eld t#at e+en i t#e motion

'ere "ranted, Suliman still 'ould not #a+e %een ac&uitted %ecause t#e

prosecution 'as a%le to pro+e t#e c#ar"es a"ainst #er.

D$C"(#%! T#e ollo'in" are pro#i%ited acts

)To c#ar"e or accept directly or indirectly any amount "reater t#an t#atspeci5ed in t#e sc#edule o allo'a%le ees prescri%ed %y t#e

Secretary o La%or and Employment, or to ma!e a 'or!er pay any

amount "reater t#an t#at actually recei+ed %y #im as a loan or

ad+ance 2Sec. 2a//0

)3ailure to actually deploy 'it#out +alid reasons as determined %y t#e

Department o La%or and Employment 2Sec. 2l//0 and

)3ailure to reim%urse e(penses incurred %y t#e 'or!ers in connection

'it# #is documentation and processin" or purposes o deployment,

in cases '#ere t#e deployment does not actually ta!e place 'it#out

t#e 'or!ers ault. -lle"al recruitment '#en committed %y a

syndicate or in lar"e scale s#all %e considered as o$ense in+ol+in"

economic sa%ota"e 2Sec. 2m//

NOTE Art. @C2c/ 'as declared unconstitutional

per Sala*ar + Ac#acoso, relyin" on 1ICF

onstitution, Art. ---, Section ?

e. Enorcement Po'ers

2a/ Rule)ma!in" po'er

LC, Art. 3. (e6latory poer. T#eSecretary o La%or s#all #a+e t#e po'er to

restrict and re"ulate t#e recruitment and

placement acti+ities o all a"encies 'it#in t#e

co+era"e o t#is Title and is #ere%y aut#ori*ed

to issue orders and promul"ate rules and

re"ulations to carry out t#e o%ecti+es and

implement t#e pro+isions o t#is Title.



2%/ Re"ulatory po'er

LC, Art. 3. supra

1. Suspension or cancellation o

License4Aut#ority

LC, Art. 3. Sspension an+=orcancellation of license or

at5ority. T#e 6inister o La%or s#all

#a+e t#e po'er to suspend or cancel any

license or aut#ority to recruit employees

or o+erseas employment or +iolation o

rules and re"ulations issued %y t#e

6inistry o La%or, t#e O+erseas

Employment De+elopment Board, or or

+iolation o t#e pro+isions o t#is and

ot#er applica%le la's, 8eneral Orders and

Letters o -nstructions.

?. -ssuance o orders

LC, Art. 3. supra

2c/ Kisitorial Po'er

LC, Art. 37. <isitorial oer. T#e Secretary

o La%or or #is duly aut#ori*ed representati+es

may, at any time, inspect t#e premises, %oo!s

o accounts and records o any person or

entity co+ered %y t#is Title, re&uire it to su%mit

reports re"ularly on prescri%ed orms, and acton +iolation o any pro+isions o t#is Title.

. POEA Standard Employment ontract

2a/ To %e inte"rated in e+ery seaarer:s

contract

@ALL!% BA(#"#B! S!(<#C!S v !(%!S"$ "A%A@A% 2Au"ust

?H1?0 G./

S>BBA( Tana'an #ad an accident at 'or! and su%mitted #imsel

to Dr. Lim 2company p#ysician/ or a medical e(amination to treat #is

oot inury. Je 'as treated or a oot inury or 1F? days until #e 'as

declared 5t to 'or!. Je also 'ent to anot#er doctor or a disa%ility

e+aluation 2t#is time or an eye inury sustained '#ile on %oard t#e

+essel/. Je 5led a complaint or disa%ility %ene5ts, sic!ness allo'ance,

and dama"es a"ainst petitioner. T#e court partially "rants t#e petition

a'ardin" or #is oot inuries and deletin" t#e a'ard or #is eye inury.

Because accordin" to t#e Standard Employment ontract, only t#e



company p#ysician can assess and esta%lis# t#e disa%ility o t#e

repatriated seaman.

D$C"(#%! Employment o seaarers, and its incidents, are "o+erned

%y t#e contracts t#ey si"n e+ery time t#ey are #ired or re#ired. W#ile

t#e seaarers and t#eir employers are "o+erned %y t#eir mutual

a"reements, t#e POEA rules and re"ulations re&uire t#at t#e POEA SE'#ic# contains t#e standard terms and conditions o t#e seaarers:

employment in orei"n ocean "oin" +essels, %e inte"rated in e+ery

seaarer:s contract.

2%/ onstruction li%eral

L!$$LD$ AA%"! v JKS ?L!!" B". 2Dec. <, ?HHI0 G./

S>BBA( Leopoldo A%ante 'as #urt on t#e o% and 'as operated on

in t#e P#ilippines ater %ein" repatriated. mont#s ater #is sur"ery,

company doctor pronounced #im 5t to 'or!. Je "ot a second opinion

'#ic# t#en rendered #im un5t to 'or!. Je 5led or disa%ility %ene5ts.

LA complaint 'as premature. NLR case remanded. A LA decisionreinstated. S Seaarer is not precluded rom "ettin" a second opinion.

W#en t#ere are conictin" opinions rom t#e company doctor and t#e

preerred doctor, t#e ourt 'ill up#old opinion '#ic# 'ill entitle

seaarer to %ene5ts.

D$C"(#%! POEA standard employment contract or seamen 'as

desi"ned primarily or t#e protection and %ene5t o 3ilipino seamen in

t#e pursuit o t#eir employment on %oard ocean)"oin" +essels. -ts

pro+isions must %e construed and applied airly, reasona%ly and

li%erally in t#eir a+or

2c/ Terms and onditions

1. Disa%ility Bene5ts

". Goint and Se+eral la%ility o Recruitment4Placement

a"ency and principal4employer 2corporate ocers

and company/ 7 a +eri5ed underta!in"

2))2 $!A (les, art ##, (le ##, Section 1.

(eirements for Licensin6 ) E+ery applicant or

license to operate a pri+ate employment a"ency

s#all su%mit a 'ritten application to"et#er 'it# t#eollo'in" re&uirements

2/ A +eri5ed underta!in" statin" t#at t#e

applicant@/ S#all assume oint and solidary lia%ility 'it#

t#e employer or all claims and lia%ilities

'#ic# may arise in connection 'it# t#e

implementation o t#e contract, includin"



%ut not limited to payment o 'a"es, deat#

and disa%ility compensation and

repatriations02"/ -n case o corporation or partners#ip, +eri5ed

underta!in" %y its ocers, directors, partners

t#at t#ey 'ill %e ointly and se+erally lia%le 'it#

t#e company o+er claims arisin" rom

employer)employee relations#ip

(A 8)*2, as amen+e+, Sec. 1) &2'. Boney

Claims ) T#e lia%ility o t#e principal4employer and

t#e recruitment4placement a"ency or any and all






pro+ided %y la', s#all %e ans'era%le or all moneyclaims or dama"es t#at may %e a'arded to t#e

'or!ers. - t#e recruitment4placement a"ency is a





dama"es.

$mnibs (les #mplementin6 (A 8)*2, as

amen+e+, (le <##, Sec. 3. Koint an+ Several

Liability ) T#e lia%ility o t#e principal4employerand t#e recruitment4placement a"ency on any and

all claims under t#is Rule s#all %e oint and se+eral.

T#is lia%ility s#all %e incorporated in t#e contract



to %e 5led %y t#e

recruitment4placement a"ency, as pro+ided %y la',

s#all %e

ans'era%le or all money claims or dama"es t#at

may %e a'arded to t#e 'or!ers.

- t#e recruitment4placement a"ency is a uridical %ein", t#e corporate ocers and directors

and partners, as t#e case may %e, s#all t#emsel+es

%e ointly and se+erally lia%le 'it# t#e corporation


dama"es.Suc# lia%ilities s#all continue durin" t#e entire

period or duration o t#e employment contract and



s#all not %e a$ected %y any su%stitution,

amendment or modi5cation o t#e contract made

locally or in a orei"n country.

2a/ E$ect o Termination o A"ency A"reement

Bet'een 6annin" A"ent and principal

(A 8)*2, as amen+e+, Sec. 1) &2'.

Supra

(les #mplementin6 (A 8)*2, as

amen+e+, (le <##, Sec. 3 &3'. supra

2%/ Purpose o oint and se+eral lia%ility

immediate and sucient payment

A$S"A SI# B". v @#LI#LB I#LA(#$ 2No+. ?<, ?H1<0 G./

S>BBA( AS6 entered into a contract o employment 'it# Wil#im

on %e#al o its orei"n principal Panstar '#erein Wil#im 'as #ired as a%osun o t#e orei"n +essel 8rand 6ar!. T#e contro+ersy arose rom

t#e act o t#e orei"n principal in promotin" an a%le seaman instead o

#irin" Wil#im, an act t#at e$ecti+ely disre"arded t#e contract entered.

T#e ourt ruled t#at Wil#im 'as entitled to t#e payment o actual

dama"es, #oldin" AS6 and Panstar ointly and solidarily lia%le.

D$C"(#%! Pri+ate employment a"encies are #eld ointly and

se+erally lia%le 'it# t#e orei"n)%ased employer or any +iolation o t#e

recruitment a"reement or contract o employment. T#is oint and

solidary lia%ility imposed %y la' on recruitment a"encies and orei"n

employers is meant to assure t#e a""rie+ed 'or!er o immediate and

sucient payment o '#at is due #im.

$SB SI##% I#L., #%C v %L(C H ?!(B#% >!((!($ 26ar. 9,

?HH@0 G. Pan"ani%an/

S>BBA( 3ermin 'as #ired as 6aster 6ariner %y OS6 in %e#al o its

principal, P)SASO. Despite complyin" 'it# #is duties or F mont#s,

3ermin 'as ne+er paid any compensation at all. Jence, #e 5led a

complaint a"ainst OS6 and P)SASO. T#e S #eld OS6 solidarily

lia%le 'it# P)SASO.

D$C"(#%! Goint and solidary lia%ility is meant to assure a""rie+ed

'or!ers o immediate and sucient payment o '#at is due t#em.

#. Responsi%ilities o local recruitment

a"encies4lia%ility or dama"es and attorney:s ees

RA CH<?, as amended, Sec. 1H 2pars. ?, @, <, 9/.

6oney claims



T#e lia%ility o t#e principal4employer and t#e

recruitment4placement a"ency or any and all






pro+ided %y la', s#all %e ans'era%le or all money

claims or dama"es t#at may %e a'arded to t#e

'or!ers. - t#e recruitment4placement a"ency is a





dama"es.Suc# lia%ilities s#all continue durin" t#e

entire period or duration o t#e employment

contract and s#all not %e a$ected %y anysu%stitution, amendment or modi5cation made

locally or in a orei"n country o t#e said contract.Any compromise4amica%le settlement or

+oluntary a"reement on money claims inclusi+e o

dama"es under t#is section s#all %e paid 'it#in

t#irty 2@H/ days rom appro+al o t#e settlement %y

t#e appropriate aut#ority.-n case o termination o o+erseas

employment 'it#out ust, +alid or aut#ori*ed cause

as de5ned %y la' or contract, or any unaut#ori*ed

deductions rom t#e mi"rant 'or!er:s salary, t#e'or!er s#all %e entitled to t#e ull reim%ursement i

#is placement ee and t#e deductions made 'it#

interest at t'el+e percent 21?/ per annum, plus

#is salaries or t#e une(pired portion o #is

employment contract or or t#ree 2@/ mont#s or

e+ery year o t#e une(pired term, '#ic#e+er is less.

9. Gurisdiction

a. RT o+er criminal action arisin" rom ille"al

recruitment

(A 8)*2, as amen+e+, Sec. 9. <ene ) A

criminal action arisin" rom ille"al recruitment as

de5ned #erein s#all %e 5led 'it# t#e Re"ional Trial

ourt o t#e pro+ince or city '#ere t#e o$ense 'as


resides at t#e same time o t#e commission o t#e

o$ense Pro+ided, T#at t#e court '#ere t#e criminal




e(clusion o ot#er courts. Pro+ided, #o'e+er, T#at

t#e aorestated pro+isions s#all also apply to t#ose

criminal actions t#at #a+e already %een 5led in

court at t#e time o t#e e$ecti+ity o t#is Act.

$mnibs (les #mplementin6 (A 8)*2, (le

#<, Sec. . Sec. . <ene ) A criminal action

arisin" rom ille"al recruitment as de5ned under

t#is Rule s#all %e 5led 'it# t#e Re"ional Trial ourt

o t#e pro+ince or city '#ere t#e o$ense 'as


resides at t#e time o t#e commission o t#e

o$ense0 Pro+ided, t#at t#e court '#ere t#e criminal


e(clusion o ot#er courts.

%. LA o+er money claims arisin" out o an ER)EErelations#ip4la'4contract

(A 8)*2, as amen+e+, Sec. 1) &1'. Boney

Claims. 7 Not'it#standin" any pro+ision o la' to

t#e contrary, t#e La%or Ar%iters o t#e National

La%or Relations ommission 2NLR/ s#all #a+e t#e

ori"inal and e(clusi+e urisdiction to #ear and




la' or contract in+ol+in" 3ilipino 'or!ers oro+erseas deployment includin" claims or actual,

moral, e(emplary and ot#er orms o dama"e.

onsistent 'it# t#is mandate, t#e NLR s#all

endea+or to update and !eep a%reast 'it# t#e

de+elopments in t#e "lo%al ser+ices industry.

$mnibs (les #mplementin6 (A 8)*2, (le

<##, Sec. 1. Kris+iction of Labor Arbiters )

Not'it#standin" any pro+ision o la' to t#e

contrary, t#e La%or Ar%iters o t#e NLR s#all #a+e

t#e ori"inal and e(clusi+e urisdiction to #ear and




la' or contract in+ol+in" 3ilipino 'or!ers or

o+erseas deployment includin" claims or actual,

moral, e(emplary and ot#er orms o dama"es.



$S!#D$% #%"!(%A"#$%AL BA(#"#B! S!(<#C!S, #%C. v "#"$

"ABALA !". AL 2Gune ?, ?H1@0 G. Brion/

S>BBA( Respondents 'ere #ired %y Poseidon to man t#e 5s#in"

+essels o Kan Doorn at ape Kerde -slands. T#e operations a%ruptly

stopped and did not resume. T#ere 'as a 6ay ?9, ?HH9 a"reement

'#ere Poseidon and Respondent a"reed t#at 1HH o t#eir unpaidsalaries or t#e une(pired portion o t#eir pre)terminated contract.

Jo'e+er, t#ere 'as anot#er a"reement reducin" t#e pre+iously a"reed

amount to 9H. Respondents si"ned a 'ai+er and &uitclaim and t#e

correspondin" cas# +ouc#ers ater recei+in" t#eir settlement pay.

Respondents 5le or ille"al dismissal, claimin" t#at t#e 'ai+ers and

&uitclaims t#ey si"ned s#ould not %e +alid %ecause t#ey 'ere coerced

into si"nin". T#e S #eld t#at t#e 'ai+ers and &uitclaims +alid. No

ille"al dismissal. Also, A erred in applyin" RA CH<? Sec. 1H %ecause it

only applies to cases o ille"al dismissal.

D$C"(#%! T#e application o Section 1H o R.A. No. CH<? presumes a

5ndin" o ille"al dismissal. A plain readin" o t#is pro+ision readily

s#o's t#at it applies only to cases o ille"al dismissal or dismissal'it#out any ust, aut#ori*ed or +alid cause and 5nds no application in

cases '#ere t#e o+erseas 3ilipino 'or!er 'as not ille"ally dismissed.

NOTE: A phrase in par. 5 thereof was declared

unconstitutional by S per Serrano ! "allant

#aritime Ser!ices $nc.

SAB!!( $<!(S!AS LAC!B!%" A!%C v KA CA#L!S 2Au". 9,

?H1<0 G./

S>BBA( Goy applied as a &uality control o% in Tai'an t#rou"#

Sameer O+erseas Placement A"ency. S#e 'as re&uired %y t#e a"ency

to pay PFH,HHH.HH or placement ee upon si"nin" t#e contract. Jer

employment contract is or one year, 'it# salary o NT19,@H,.HH.

Jo'e+er, ater less t#an a mont#, s#e 'as terminated or no reason

and s#e 'as sent %ac! to 6anila. T#e cost o t#e plane tic!et 'as

deducted rom #er salary so s#e 'as only a%le to recei+e NTI,HHH.HH

D$C"(#%! Alt#ou"# not raised as an issue, t#e clause >o or t#ree

mont#s or e+ery year o t#e une(pired term, '#ic#e+er is less; '#ic#

'as struc! do'n as unconstitutional in t#e case o Serrano +. 8allant

6aritime Ser+ices, -nc. and 6arlo' Na+i"ation o. -nc. and reproduced

e(actly in Section F o RA 1HH?? can %e declared %y t#is ourt asunconstitutional. T#e nullity o a la' cannot %e cured %y

reincorporation or reenactment o t#e same or a similar la' or

pro+ision. A la' or pro+ision o la' t#at 'as already declared

unconstitutional remains as suc# unless circumstances #a+e c#an"ed

as to 'arrant a re+erse conclusion.



L$(!%F$ "A%A4A% v I#L. "(A%SBA(#%! CA((#!(S 26ar. 1@,

?H1@0 G./

S>BBA( Loren*o #ad a )mont# employment contract %ut #e 'as

ille"ally dismissed '#ic# let an une(pired portion o < mont#s. T#e

point o contention is t#e construction o Section 1H o RA CH<? 7 -s

Loren*o entitled to < mont#s o %ac!pay or ust @ mont#s. T#e S #eldt#at #e is entitled to t#e ull < mont#s '#ic# is t#e une(pired portion o

t#e contract.

D$C"(#%! W#en t#e ille"ally dismissed employee:s employment

contract #as a term o less t#an 1 year, #e s#all %e entitled to reco+ery

o salaries representin" t#e '#ole une(pired portion o #is employment

contract. No limitation o @ mont#s. T#e @ mont#s or e+ery year o

ser+ice comes into play only '#en t#e employment contract #as a

term o at least 1 year or more.

c. POEA o+er administrati+e cases

2a/ Pre)employment4Recruitment +iolation

cases


(le G, Sec. . Kris+iction of t5e $!A

) T#e POEA s#all e(ercise ori"inal and

e(clusi+e urisdiction to #ear and decide2a/ all pre)employment4recruitment

+iolation cases

'#ic# are administrati+e in c#aracter,

in+ol+in" or arisin" out o +iolations o

Rules and Re"ulations relatin" to

licensin" and re"istration, includin"

reund o ees collected rom t#e

'or!ers or +iolation o t#e conditions or

issuance o license or aut#ority to

recruit 'or!ers0

2%/ Disciplinary cases and ot#er special cases


(le G, Sec. . Kris+iction of t5e $!A

) T#e POEA s#all e(ercise ori"inal ande(clusi+e urisdiction to #ear and decide2%/ disciplinary action cases and ot#er

special cases, '#ic# are administrati+e

in c#aracter, in+ol+in" employers,

principals, contractin" partners and

O3Ws processed %y t#e POEA.



!AS"!(% B!D#"!((A%!A% BA(#"#B! L"D. H A!BA(

BA%%#% A!%C #%C. v !S"A%#SLA S>(#$ 2Au". ?@, ?H1?0 G./

S>BBA( T#e respondent cre'mem%ers complained o delays in

payment o 'a"es and remittance o allotments %y t#e o'ners and

operators o t#e +essel, #erein petitioners. Ater t#e -nternational

Transport 3ederation re+ie'ed and ordered t#at t#e respondents %epaid 'a"e di$erentials, t#e petitioners sou"#t disciplinary action

a"ainst t#e respondents, and 5led it 'it# t#e POEA. W#en appealed to

t#e NLR, t#e latter ruled t#at t#ey did not #a+e urisdiction. T#e ourt

armed t#is #oldin" t#at t#e Secretary o La%or #as urisdiction o+er

disciplinary cases o+er o+erseas 'or!ers, or only money claims 'ere

transerred under t#e urisdiction o t#e NLR %y +irtue o RA CH<?.

D$C"(#%! W#ile RA CH<?, Sec. 1H transerred t#e ori"inal and

e(clusi+e urisdiction to #ear and decide money claims in+ol+in"

o+erseas 3ilipino 'or!ers rom t#e POEA to t#e La%or Ar%iters, t#e la'

did not remo+e rom t#e POEA t#e ori"inal and e(clusi+e urisdiction to

#ear and decide all disciplinary action cases and ot#er special cases

administrati+e in c#aracter in+ol+in" suc# 'or!ers.

ii. Pu%lic Sector A"encies

1. Employment Oces

LC, Art. 12&f'. supra

LC, Art. 1*. !mployment promotion. T#e Secretary o

La%or s#all #a+e t#e po'er and aut#ority2a/ To or"ani*e and esta%lis# ne' employment oces in

addition to t#e e(istin" employment oces under t#eDepartment o La%or as t#e need arises0

!.$. 2*7 &(eor6ani:in6 $!A', Sec. 3. oers an+

?nctions. ) -n t#e pursuit o its mandate, t#e

Administration s#all #a+e t#e ollo'in" po'ers and

unctions2a/ Re"ulate pri+ate sector participation in t#e recruitment

and o+erseas placement o 'or!ers %y settin" up a

licensin" and re"istration system02%/ 3ormulate and implement, in coordination 'it#

appropriate entities concerned, '#en necessary, asystem or promotin" and monitorin" t#e o+erseas

employment o 3ilipino 'or!ers ta!in" into

consideration t#eir 'elare and t#e domestic

manpo'er re&uirements02c/ Protect t#e ri"#ts o 3ilipino 'or!ers or o+erseas

employment to air and e&uita%le recruitment and

employment practices and ensure t#eir 'elare0



2d/ E(ercise ori"inal and e(clusi+e urisdiction to #ear and

decide all claims arisin" out o an employer)employee

relations#ip or %y +irtue o any la' or contract

in+ol+in" 3ilipino 'or!ers or o+erseas employment

includin" t#e disciplinary cases0 and all pre)

employment cases '#ic# are administrati+e in

c#aracter in+ol+in" or arisin" out o +iolation or

re&uirement la's, rules and re"ulations includin"

money claims arisin" t#ererom, or +iolation o t#e

conditions or issuance o license or aut#ority to recruit

'or!ers. All pro#i%ited recruitment acti+ities and

practices '#ic# are penal in c#aracter as enumerated

and de5ned under and %y +irtue o e(istin" la's, s#all

%e prosecuted in t#e re"ular courts in close

coordination 'it# t#e appropriate Departments and

a"encies concerned02e/ 6aintain a re"istry o s!ills or o+erseas placement0

2/ Recruit and place 'or!ers to ser+ice t#e re&uirementsor trained and competent 3ilipino 'or!ers %y orei"n

"o+ernments and t#eir instrumentalities and suc#

ot#er employers as pu%lic interest may re&uire02"/ Promote t#e de+elopment o s!ills and careul

selection o 3ilipino 'or!ers02#/ nderta!e o+erseas mar!et de+elopment acti+ities or

placement o 3ilipino 'or!ers02i/ Secure t#e %est terms and conditions o employment o

3ilipino contract 'or!ers and ensure compliance

t#ere'it#0

2/ Promote and protect t#e 'ell)%ein" o 3ilipino 'or!erso+erseas0

2!/ De+elop and implement pro"rams or t#e e$ecti+e

monitorin" o returnin" contract 'or!ers, promotin"

t#eir re)trainin" and re)employment or t#eir smoot#

re)inte"ration into t#e mainstream o national

economy in coordination 'it# ot#er "o+ernment

a"encies02l/ -nstitute a system or ensurin" air and speedy

disposition o cases in+ol+in" +iolation or recruitment

rules and re"ulations as 'ell as +iolation o terms and

conditions o o+erseas employment02m/ Esta%lis# a system or speedy and ecient

enorcement o decisions laid do'n t#rou"# t#e

e(ercise o its adudicatory unction02n/ Esta%lis# and maintain close relations#ip and enter

into oint proects 'it# t#e Department o 3orei"n

A$airs, P#ilippine Tourism Aut#ority, 6anila

-nternational Airport Aut#ority, Department o Gustice,

Department o Bud"et and 6ana"ement and ot#er



rele+ant "o+ernment entities, in t#e pursuit o its

o%ecti+es. T#e Administration s#all also esta%lis# and

maintain oint proects 'it# pri+ate or"ani*ations,

domestic or orei"n, in t#e urt#erance o its

o%ecti+es.

?. Sanctions

LC, Art. 3. Sspension an+=or cancellation of

license or at5ority. T#e 6inister o La%or s#all #a+e

t#e po'er to suspend or cancel any license or aut#ority to

recruit employees or o+erseas employment or +iolation

o rules and re"ulations issued %y t#e 6inistry o La%or,

t#e O+erseas Employment De+elopment Board, or or

+iolation o t#e pro+isions o t#is and ot#er applica%le

la's, 8eneral Orders and Letters o -nstructions.

LC, Art. 39. enalties.2a/ T#e penalty o lie imprisonment and a 5ne o One

Jundred T#ousand Pesos 2P1HHH,HHH.HH/ s#all %e

imposed i ille"al recruitment constitutes economic

sa%ota"e as de5ned #erein02%/ Any licensee or #older o aut#ority ound +iolatin" or

causin" anot#er to +iolate any pro+ision o t#is Title or

its implementin" rules and re"ulations s#all, upon

con+iction t#ereo, su$er t#e penalty o imprisonment

o not less t#an t'o years nor more t#an 5+e years or

a 5ne o not less t#an P1H,HHH nor more t#an P9H,HHH,

or %ot# suc# imprisonment and 5ne, at t#e discretiono t#e court02c/ Any person '#o is neit#er a licensee nor a #older o

aut#ority under t#is Title ound +iolatin" any pro+ision

t#ereo or its implementin" rules and re"ulations s#all,

upon con+iction t#ereo, su$er t#e penalty o

imprisonment o not less t#an our years nor more

t#an ei"#t years or a 5ne o not less t#an P?H,HHH nor

more t#an P1HH,HHH or %ot# suc# imprisonment and

5ne, at t#e discretion o t#e court02d/ - t#e o$ender is a corporation, partners#ip,

association or entity, t#e penalty s#all %e imposed

upon t#e ocer or ocers o t#e corporation,

partners#ip, association or entity responsi%le or

+iolation0 and i suc# ocer is an alien, #e s#all, in

addition to t#e penalties #erein prescri%ed, %e

deported 'it#out urt#er proceedin"s02e/ -n e+ery case, con+iction s#all cause and carry t#e

automatic re+ocation o t#e license or aut#ority and all

t#e permits and pri+ile"es "ranted to suc# person or



entity under t#is Title, and t#e oreiture o t#e cas#

and surety %onds in a+or o t#e O+erseas Employment

De+elopment Board or t#e National Seamen Board, as

t#e case may %e, %ot# o '#ic# are aut#ori*ed to use

t#e same e(clusi+ely to promote t#eir o%ecti+es.

(A 8)*2, as amen+e+, Sec. . supra

(A 8)*2, as amen+e+, Sec. 7. enalties2a/ Any person ound "uilty o ille"al recruitment s#all

su$er t#e penalty o imprisonment o not less t#an si(

2/ years and one 21/ day %ut not more t#an t'el+e

21?/ years and a 5ne not less t#an t'o #undred

t#ousand pesos 2P?HH,HHH.HH/ nor more t#an 5+e

#undred t#ousand pesos 2P9HH,HHH.HH/.2%/ T#e penalty o lie imprisonment and a 5ne o not less

t#an 5+e #undred t#ousand pesos 2P9HH,HHH.HH/ nor

more t#an one million pesos 2P1,HHH,HHH.HH/ s#all %eimposed i ille"al recruitment constitutes economic

sa%ota"e as de5ned #erein.

Pro+ided, #o'e+er, t#at t#e ma(imum penalty s#all %e

imposed i t#e person ille"ally recruited is less t#an

ei"#teen 21C/ years o a"e or committed %y a non)

licensee or non)#older o aut#ority.

(A 8)*2, as amen+e+, Sec. 1) &pars. an+ '.

Boney Claims )-n case o termination o o+erseas employment

'it#out ust, +alid or aut#ori*ed cause as de5ned %y la'or contract, or any unaut#ori*ed deductions rom t#e

mi"rant 'or!er:s salary, t#e 'or!er s#all %e entitled to

t#e ull reim%ursement i #is placement ee and t#e

deductions made 'it# interest at t'el+e percent 21?/

per annum, plus #is salaries or t#e une(pired portion o

#is employment contract or or t#ree 2@/ mont#s or e+ery

year o t#e une(pired term, '#ic#e+er is less.

-n case o a 5nal and e(ecutory ud"ement a"ainst a

orei"n employer4principal, it s#all %e automatically

dis&uali5ed, 'it#out urt#er proceedin"s, romparticipatin" in t#e P#ilippine O+erseas Employment

Pro"ram and rom recruitin" and #irin" 3ilipino 'or!ers

until and unless it ully satis5es t#e ud"ement a'ard.

a. Local Employment

LC, Art. 39. supra



%. O+erseas Employment

LC, Art. 3. supra

(A 8)*2, as amen+e+, Sec. 7. supra

?. Alien Employment Re"ulation

1987 Constittion, Art. G##, Section 12. T#e State s#all promote t#e

preerential use o 3ilipino la%or, domestic materials and locally produced

"oods, and adopt measures t#at #elp ma!e t#em competiti+e.

a. o+era"e

$mnibs (les, oo #, (le #, Section 1. De-nition of terms.2/ %Non&resident alien' means any alien already in t#e P#ilippines or

see!in" admission to t#e P#ilippines to o%tain employment in any

pu%lic or pri+ate enterprise.

Art. *). !mployment permit of non4resi+ent aliens. Any alien

see!in" admission to t#e P#ilippines or employment purposes and any

domestic or orei"n employer '#o desires to en"a"e an alien or

employment in t#e P#ilippines s#all o%tain an employment permit rom

t#e Department o La%or. T#e employment permit may %e issued to a non)resident alien or

to t#e applicant employer ater a determination o t#e non)a+aila%ility

o a person in t#e P#ilippines '#o is competent, a%le and 'illin" at t#e

time o application to perorm t#e ser+ices or '#ic# t#e alien is

desired.3or an enterprise re"istered in preerred areas o in+estments,

said employment permit may %e issued upon recommendation o t#e

"o+ernment a"ency c#ar"ed 'it# t#e super+ision o said re"istered

enterprise.

$mnibs (les, oo #, (le G#<, Section 1. Covera6e. T#is

Rule s#all apply to all aliens employed or see!in" employment in t#e

P#ilippines, and t#eir present or prospecti+e employers.

D.$. 974)9 &S. of 2))9' as amen+e+ by D.$. 12)412. &Revised

Rules for the Issuance of Employment Permits to ForeignNationals)Section 1. Covera6e All orei"n nationals '#o intend to en"a"e in

"ainul employment in t#e P#ilippines s#all apply or Alien Employment

Permit 2AEP/.

D.$. 12 &S. of 2))1' &Omnibus Guidelines for the Issuance of

Employment Permits to Foreign Nationals). (le #. Covera6e

an+ !Memption



1. T#e ollo'in" s#all apply or Alien Employment Permit 2AEP/1.1 All orei"n nationals see!in" admission to t#e P#ilippines or

purpose o employment1.? 6issionaries or reli"ious 'or!ers '#o intend to en"a"e in

"ainul employment01.@ Jolders o Special -n+estors Resident Kisa 2S-RK/, Special

Retirees Resident Kisa 2SRRK/, Treaty Traders Kisa 2Id/ or

Special Non)immi"rant Kisa 2<F2a/?/, '#o occupy any

e(ecuti+e, ad+isory, super+isory, or tec#nical position in any

esta%lis#ment1.<. A"encies, or"ani*ations or indi+iduals '#et#er pu%lic or

pri+ate '#o secure t#e ser+ices o orei"n proessionals to

practice t#eir proessions in t#e P#ilippines under reciprocity

and ot#er international a"reements1.9. Non)-ndo #inese Reu"ees '#o are asylum see!ers and

"i+en reu"ee status %y t#e nited Nations Ji"#

ommissioner on Reu"ees 2NJR/ or t#e Department o

Gustice under DOG Department Order No. I<, series o 1IIC1.. Resident orei"n nationals see!in" employment in t#e

P#ilippines

i. E(emptions

D.$. 974)9 &S. of 2))9' as amen+e+ by D.$. 12)412.

Section 2. !Memption T#e ollo'in" cate"ories o orei"n

nationals are e(empt rom securin" an employment permit2a/ All mem%ers o t#e diplomatic ser+ice and orei"n

"o+ernment ocials accredited %y and 'it# reciprocity

arran"ement 'it# t#e P#ilippine "o+ernment02%/ Ocers and sta$ o international or"ani*ations o '#ic# t#e

P#ilippine "o+ernment is aa mem%er, and t#eir le"itimate

spouses desirin" to 'or! in t#e P#ilippines2c/ 3orei"n nationals elected as mem%ers o t#e 8o+ernin"

Board '#o do not occupy any ot#er position, %ut #a+e only

+otin" ri"#ts in t#e corporation2d/ All orei"n nationals "ranted e(emption %y la'2e/ O'ners and representati+es o orei"n principals '#ose

companies are accredited %y t#e P#ilippine O+erseas

Employment Administration 2POEA/, '#o come to t#e

P#ilippines or a limited period and solely or t#e purpose o

inter+ie'in" 3ilipino applicants or employment a%road2/ 3orei"n nationals '#o come to t#e P#ilippines to teac#,

present and4or conduct researc# studies in uni+ersities and

colle"es as +isitin", e(c#an"e, or adunct proessors under

ormal a"reements %et'een t#e uni+ersities or colle"es in

t#e P#ilippines and orei"n uni+ersities or colle"es0 or

%et'een t#e P#ilippine "o+ernment and orei"n



"o+ernment0 pro+ided t#at t#e e(emption is on a reciprocal

%asis0 and2"/ Permanent resident orei"n nationals, pro%ationary or

temporary resident +isa #olders

D.$. 12 &S. of 2))1' &$mnibs i+elines for t5e #ssance

of !mployment ermits to ?orei6n %ationals'. (le #.

Covera6e an+ !Memption?. E(emption. T#e ollo'in" cate"ories o orei"n nationals are

e(empt rom securin" an employment permit in order to 'or! in

t#e P#ilippines?.1 All mem%ers o t#e diplomatic ser+ices and orei"n

"o+ernment ocials accredited %y t#e P#ilippine

"o+ernment?.? Ocers and sta$ o international or"ani*ations o '#ic#

t#e P#ilippine "o+ernment is a cooperatin" mem%er, and

t#eir le"itimate spouses desirin" to 'or! in t#e P#ilippines

?.@ 3orei"n nationals elected as mem%er o t#e 8o+ernin"Board '#o do not occupy any ot#er position, %ut #a+e only

+otin" ri"#ts in t#e corporation0 and?.< All orei"n nationals "ranted e(emption %y special la's and

all ot#er la's t#at may %e promul"ated %y t#e on"ress.

A%D(!@ KAB!S BC>(%#! v !>LAL#$ A%F$% Octo%er 1F, ?H1@0

G./

S>BBA( Andre' Games 6cBurnie, an Australian national, 5led a

complaint or ille"al dismissal a"ainst Eulalio 8an*on, E8-)6ana"ers,

-nc. and E. 8an*on, -nc. laimin" #e si"ned a 9)year employment

a"reement as EKP in 6ay 1III, #e said #e 'as orced to "o %ac! to

Australia to recuperate rom t#e inuries #e sustained in No+em%er

1III. W#ile in Australia, #e 'as inormed %y 8an*on t#at #is ser+ices

'ere no lon"er needed %ecause t#eir intended proect 'ould no lon"er

pus# t#rou"#. Ater a len"t#y succession o court proceedin"s

culminatin" in a second motion or reconsideration %y 8an*on %eore

t#e S, it 'as #eld t#at 6cBurnie cannot see! t#e %ene5ts o P#ilippine

la%or la's since #e didnt #a+e a 'or! permit and #e ailed to present

e+idence to pro+e #is claim o an employer)employee relations#ip.

D$C"(#%! Any alien see!in" admission to t#e P#ilippines or

employment purposes and any domestic or orei"n employer '#odesires to en"a"e an alien or employment in t#e P#ilippines must

o%tain an employment permit rom t#e Department o La%or.

ALB$D#!L v %L(C 21II@0 G./

S>BBA( Almodiel contends t#at #is dismissal due to redundancy

ille"al %ecause unctions o #is position 'ere a%sor%ed %y t#e 3inance



department under t#e mana"ement o someone less &uali5ed t#an #im

and an alien resident 'it#out a 'or!in" permit. Additionally, #e a+ers

t#at #e s#ould #a+e %een named t#e mana"er. T#e ourt states t#at it

is immaterial '#et#er #is unctions #a+e %een dispensed 'it# or

merely a%sor%ed %y anot#er %ecause it is t#e mana"ement:s

prero"ati+e to determine '#et#er an employee:s ser+ices as no lon"er

necessary.

D$C"(#%! T#e employment permit is re&uired or entry into t#e

country or employment purposes and is issued ater determination o

t#e non)a+aila%ility o a person in t#e P#ilippines '#o is competent,

a%le and 'illin" at t#e time o application to perorm t#e ser+ices or

'#ic# t#e alien is desired. Resident aliens do not all 'it#in t#e am%it

o t#e pro+ision.

%. onditions or 8rant o Permit

$mnibs (les, oo #, (le G#<, Section *. !mployment permit

reire+ for entry. No alien see!in" employment, '#et#er on

resident or non)resident status, may enter t#e P#ilippines 'it#out 5rst

securin" an employment permit rom t#e Department o La%or and

Employment. - an alien enters t#e country under a non)'or!in" +isa

and 'is#es to %e employed t#ereater, #e may only %e allo'ed to %e

employed upon presentation o a duly appro+ed employment permit.

$mnibs (les, oo #, (le G#<, Section 3. (e6istration of

resi+ent aliens. All employed resident aliens s#all re"ister 'it# t#e

Bureau under suc# "uidelines as may %e issued %y it.

$mnibs (les, oo #, (le G#<, Section . (eirements foremployment permit application. T#e application or an

employment permit s#all %e accompanied %y t#e ollo'in"2a/ urriculum +itae duly si"ned %y t#e applicant indicatin" #is

educational %ac!"round, #is 'or! e(perience and ot#er data

s#o'in" t#at #e possesses #i"# tec#nical s!ills in #is trade or

proession02%/ ontract o employment %et'een t#e employer and t#e

principal '#ic# s#all em%ody t#e ollo'in", amon" ot#ers21/ T#at t#e non)resident alien 'or!er s#all comply 'it# all

applica%le la's and rules and re"ulations o t#e

P#ilippines02?/ T#at t#e non)resident alien 'or!er and t#e employer s#all

%ind t#emsel+es to train at least t'o 2?/ 3ilipino

understudies or a period to %e determined %y t#e

Secretary o La%or and Employment0 and2@/ T#at #e s#all not en"a"e in any "ainul employment ot#er

t#an t#at or '#ic# #e 'as issued a permit.2c/ A desi"nation %y t#e employer o at least t'o 2?/ understudies

or e+ery alien 'or!er. Suc# understudies must %e t#e most



ran!in" re"ular employees in t#e section or department or

'#ic# t#e e(patriates are %ein" #ired to ensure t#e actual

transer o tec#nolo"y.

$mnibs (les, oo #, (le G#<, Section . #ssances of

employment permit. T#e Secretary o La%or and Employment may

issue an employment permit to t#e applicant %ased ona/ ompliance %y t#e applicant and #is employer 'it# t#e

re&uirements o Section ? #ereo0%/ Report o t#e Bureau Director as to t#e a+aila%ility or non)

a+aila%ility o any person in t#e P#ilippines '#o is competent,

a%le, and 'illin" to do t#e o% or '#ic# t#e ser+ices o t#e

applicant are desired0c/ Jis assessment as to '#et#er or not t#e employment o t#e

applicant 'ill redound to t#e national interest0d/ Admissi%ility o t#e alien as certi5ed %y t#e ommission on

-mmi"ration and Deportation0

e/ T#e recommendation o t#e Board o -n+estments or ot#erappropriate "o+ernment a"encies i t#e applicant 'ill %e

employed in preerred areas o in+estments or in accordance

'it# imperati+es o economic de+elopments0 and/ Payments o a P1HH.HH ee.

D.$. 974)9 &S. of 2))9' as amen+e+ by D.$. 12)412. Sec. 3.

roce+re in t5e rocessin6 of Applications for A!

a. All applications or AEP s#all %e 5led at t#e DOLE Re"ional Oce

or 3ield Oce #a+in" urisdiction o+er t#e intended place o 'or!

Only applications 'it# t#e 3ollo'in" complete documentary

re&uirements s#all %e recei+ed and acted upon %y t#e Re"ional

Oce1. Duly accomplis#ed Application orm

?. P#otocopy o Passport, 'it# +isa or erti5cate o Reco"nition

or reu"ees or stateless persons

@. ontract o employment4Appointment or Board Secretary:s

erti5cate o Election

<. P#otocopy o 6ayor:s Permit to operate %usiness or in case o

locators in economic *one, erti5cation rom t#e PEUA or t#e

Eco*one Aut#ority t#at t#e company is located and operatin"

'it#in t#e eco*one

%. -n t#e case o orei"n nationals to %e assi"ned in related

companies, t#ey may 5le t#eir application 'it# t#e Re"ional Oce#a+in" urisdiction o+er any o t#e applicant:s intended places o

'or!

c. Additional position o t#e orei"n national in t#e same company

or su%se&uent assi"nment in related companies durin" t#e

+alidity or rene'al o t#e AEP 'ill %e su%ect or pu%lication

re&uirement and payment o pu%lication ee. A c#an"e o position

or employer s#all re&uire an application or ne' AEP.



D.$. 974)9 &S. of 2))9' as amen+e+ by D.$. 12)412. Sec. *.

?ees. pon 5lin" o application, t#e applicant s#all pay a ee o Ei"#t

T#ousand Pesos 2PC,HHH/ or an AEP 'it# a +alidity o one year. -n case

t#e period o employment is more t#an one year, an additional T#ree

T#ousand Pesos 2P@,HHH/ s#all %e c#ar"ed or e+ery additional year orraction t#ereo. -n case o rene'al, t#e applicant s#all pay a ee o

T#ree T#ousand Pesos 2P@,HHH/ or eac# year o +alidity or raction

t#ereo.

A courier ee o T'o Jundred Pesos 2P?HH/ s#all %e c#ar"ed to

t#e orei"n national upon t#e implementation o t#e AEP online

application system.

Any c#an"e o inormation or entries in t#e AEP s#all %e su%ect

to payment o Se+en Jundred 3ity Pesos 2PF9H/ or AEP replacement.

-n case o loss o AEP, re&uest or replacement s#all %e supported %y

an Ada+it o Loss. All ees co+ered %y ocial receipt issued %y t#e

Re"ional Oce are non)reunda%le.

AC#?#C C$%S>L"A%"S #%"!(%A"#$%AL AS#A v SCI$%?!LD

&3e%ruary 11I, ?HHF0 G./

S>BBA( PP- is a P#ilippine corporation and is a su%sidiary o To!yo)

%ased P-G. laus, an Alien, 'as employed %y P-G 2t#ru Jenric#sen/

and 'as assi"ned as PP- Sector 6ana"er in t#e P#ilippines. -n 1III,

laus 'as terminated, '#ic# prompted #im to 5le or money claims

2t#at 'ere partially settled/ and a complaint or -lle"al Dismissal. PP-

ar"ues t#at no employer)employee relations#ip e(ist since #e 'as

#ired %y P-Ga orei"n corporation.

D$C"(#%! Employer)employee relations#ip is pro+ed %y

documentary e+idence, and %y usin" t#e our)old test. PP- 5led an

application 'it# DOLE or an Alien Employment Permit, '#ic# re&uires

a contract o employment. PP- is estopped rom alle"in" t#at P-G, and

not PP- is laus: employer.

c. Kalidity o AEP

$mnibs (les, oo #, (le G#<, Section 7. Dration of

employment permit. Su%ect to rene'al upon s#o'in" o "oodcause, t#e employment permit s#all %e +alid or a minimum period o

one 21/ year startin" rom t#e date o its issuance unless sooner

re+o!ed %y t#e Secretary o La%or and Employment or +iolation o any

pro+isions o t#e ode or o t#ese Rules.


<ali+ity of A!. T#e AEP s#all %e +alid or t#e position and t#e



company or '#ic# it 'as issued or a period o one year, unless t#e

employment contract, consultancy ser+ices, or ot#er modes o

en"a"ement pro+ides ot#er'ise, '#ic# in no case s#all e(ceed 5+e

years.

d. Denial o Application

D.$. 974)9 &S. of 2))9' as amen+e+ by D.$. 12)412. Sec. 1).

Denial of application An application or AEP may %e denied %y t#e

Re"ional Director %ased on any o t#e ollo'in" "rounds2a/ 6isrepresentation o acts in t#e application2%/ Su%mission o alsi5ed documents2c/ T#e orei"n national #as %een con+icted o a criminal o$ense or

a u"iti+e rom ustice 2amended0 rom %the forein national has

a deroatory record)2d/ A+aila%ility o a 3ilipino '#o is competent, a%le and 'illin" to do

t#e o% intended or t#e orei"n national

Denial o application or AEP s#all cause t#e oreiture o t#e ees paid%y t#e applicant.

e. Re+ocation4ancellation, 8rounds 7 Due Process


Cancellation=(evocation of A! T#e Re"ional Director may, motu

propio or upon petition, cancel or re+o!e an AEP ater due process,

%ased on any o t#e ollo'in" "rounds2a/ Non)compliance 'it# any o t#e re&uirements or conditions or

'#ic# t#e AEP 'as issued02%/ 6isrepresentation o acts in t#e application

2c/ Su%mission o alsi5ed or tampered documents2d/ 6eritorious o%ection or inormation a"ainst t#e employment o

t#e orei"n national2e/ T#e orei"n national #as %een con+icted o a criminal o$ense or

a u"iti+e rom ustice2/ Employer terminated t#e employment o t#e orei"n national

Note Sec. 1? on Suspension o AEP #as %een deleted under D.O. 1?H)1?

2S. ?H1?/

VSection 1? states t#at t#e AEP may %e suspended '#en 2a/ t#e continued

stay o t#e orei"n national may result in dama"e to t#e interest o t#eindustry or t#e country or 2%/ t#e employment o t#e orei"n national is

suspended %y t#e employer or %y order o t#e ourt

@. De+elopment o Juman Resources

1987 Constittion, Art. ##, Sec. 17. T#e State s#all "i+e priority to

education, science and tec#nolo"y, arts, culture, and sports to oster



patriotism and nationalism, accelerate social pro"ress, and promote total

#uman li%eration and de+elopment.

1987 Constittion, Art. G#<, Sec. 1. T#e State s#all protect and promote

t#e ri"#t o all citi*ens to &uality education at all le+els and s#all ta!e

appropriate steps to ma!e suc# education accessi%le to all.

1987 Constittion, Art. G#<, Sec. 2. T#e State s#all21/ Esta%lis#, maintain, and support a complete, ade&uate, and

inte"rated system o education rele+ant to t#e needs o t#e people

and society02?/ Esta%lis# and maintain a system o ree pu%lic education in t#e

elementary and #i"# sc#ool le+els. Wit#out limitin" t#e natural ri"#t

o parents to rear t#eir c#ildren, elementary education is compulsory

or all c#ildren o sc#ool a"e02@/ Esta%lis# and maintain a system o sc#olars#ip "rants, student loan

pro"rams, su%sidies, and ot#er incenti+es '#ic# s#all %e a+aila%le to

deser+in" students in %ot# pu%lic and pri+ate sc#ools, especially tot#e underpri+ile"ed0

2</ Encoura"e non)ormal, inormal, and indi"enous learnin" systems, as

'ell as sel)learnin", independent, and out)o)sc#ool study pro"rams

particularly t#ose t#at respond to community needs0 and29/ Pro+ide adult citi*ens, t#e disa%led, and out)o)sc#ool yout# 'it#

trainin" in ci+ics, +ocational eciency, and ot#er s!ills.

a. 6anpo'er De+elopment 7 Tec#nical Education and S!ills De+elopment

o 3ilipino 6iddle)le+el 6anpo'er

i. De5nition

Art. **. De-nitions. As used in t#is Title2a/ %#anpower' s#all mean t#at portion o t#e nation:s

population '#ic# #as actual or potential capa%ility to

contri%ute directly to t#e production o "oods and ser+ices.

(A 779, Sec. *. De-nition of "erms. 7 As used in t#is Act2%/ %S*ills +e!elopment s#all mean t#e process t#rou"# '#ic#

learners and 'or!ers are systematically pro+ided 'it#

learnin" opportunities to ac&uire or up"rade, or %ot#, t#eir

a%ility, !no'led"e and %e#a+ior pattern re&uired as

&uali5cations or a o% or ran"e o o%s in a "i+enoccupational area0

2c/ %Technical Education s#all reer to t#e education process

desi"ned at post)secondary and lo'er tertiary le+els,

ocially reco"ni*ed as non)de"ree pro"rams aimed at

preparin" tec#nicians, para)proessionals and ot#er

cate"ories o middle)le+el 'or!ers %y pro+idin" t#em 'it# a



%road ran"e o "eneral education, t#eoretical, scienti5c and

tec#nolo"ical studies, and related o% s!ills trainin"02e/ >#iddle&,e!el #anpower ; reers to t#ose

1/ '#o #a+e ac&uired practical s!ills and !no'led"e

t#rou"# ormal or non)ormal education and trainin"

e&ui+alent to at least a secondary education %ut

preera%ly a post)secondary education 'it# a

correspondin" de"ree or diploma0 or?/ s!illed 'or!ers '#o #a+e %ecome #i"#ly competent in

t#eir trade or crat as attested %y industry0

ii. 8eneral Policy

(A 779, Sec. 2. Declaration of olicy )) -t is #ere%y

declared t#e policy o t#e State to pro+ide rele+ant, accessi%le,

#i"# &uality and ecient tec#nical education and s!ills

de+elopment in support o t#e de+elopment o #i"# &uality

3ilipino middle)le+el manpo'er responsi+e to and in accordance'it# P#ilippine de+elopment "oals and priorities.

T#e State s#all encoura"e acti+e participation o +arious

concerned sectors, particularly pri+ate enterprises, %ein" direct

participants in and immediate %ene5ciaries o a trained and

s!illed 'or!orce in pro+idin" tec#nical education and s!ills

de+elopment opportunities.

iii. Speci5c 8oals and O%ecti+es

(A 779, Sec. 3. Statement of oals an+ $bjectives. -t is

t#e "oal and o%ecti+e o t#is Act toa/ Promote and stren"t#en t#e &uality o tec#nical education

and s!ills de+elopment pro"rams to attain international

competiti+eness0%/ 3ocus tec#nical education and s!ills de+elopment on

meetin" t#e c#an"in" demands or &uality middle)le+el

manpo'er0c/ Encoura"e critical and creati+e t#in!in" %y disseminatin"

t#e scienti5c and tec#nical !no'led"e %ase o middle)

le+el manpo'er de+elopment pro"rams0d/ Reco"ni*e and encoura"e t#e complementary roles o

pu%lic and pri+ate institutions in tec#nical education and

s!ills de+elopment and trainin" systems0 ande/ -nculcate desira%ly +alues t#rou"# t#e de+elopment o

moral c#aracter 'it# emp#asis on 'or! et#ic, sel)

discipline, sel)reliance and nationalism.

i+. National Trade S!ills Standards



(A 779, Sec. 22. !stablis5ment an+ A+ministration of

%ational "ra+e Sills Stan+ar+s. )T#ere s#all %e national

occupational s!ills standards to %e esta%lis#ed %y TESDA)

accredited industry committees. T#e Aut#ority s#all de+elop and

implement a certi5cation and accreditation pro"ram in '#ic#

pri+ate industry "roups and trade associations are accredited to

conduct appro+ed trade tests, and t#e local "o+ernment units to

promote suc# trade testin" acti+ities in t#eir respecti+e areas in

accordance 'it# t#e "uidelines to %e set %y t#e Aut#ority. T#e Secretary o La%or and Employment s#all determine

t#e occupational trades or mandatory certi5cation.All certi5cates relatin" to t#e national trade s!ills testin" and

certi5cation system s#all %e issued %y t#e Aut#ority t#rou"# t#e

TESD A Secretariat.

1. erti5cation and Accreditation pro"ram

?. Appro+ed Trade Tests %y pri+ate industry "roup

a. Occupational trades or mandatory certi5cation, to

%e determined %y DOLE Secretary

%. Trainin" and Employment o Special Wor!ers 7 Apprentices and

Learners

i. Policy O%ecti+es

LC Art. 7. Statement of objectives. T#is Title aims21/ To #elp meet t#e demand o t#e economy or trained

manpo'er02?/ To esta%lis# a national apprentices#ip pro"ram t#rou"#

t#e participation o employers, 'or!ers and "o+ernment

and non)"o+ernment a"encies0 and2@/ To esta%lis# apprentices#ip standards or t#e protection o

apprentices.

ii. De5nition

1. Apprentice

?. Learner

@. 6iddle)le+el 6anpo'er



iii. Allo'ed Employment and W#en

i+. onditions o Employment

+. Enorcementc. Persons 'it# disa%ility or PWDs 2ormerly reerred to as >Disa%led

Persons; or >Jandicapped Wor!ers;i. De5nitionii. Policy declarationiii. o+era"ei+. Employment Ri"#ts and Pri+ile"es+. Discrimination in employment

BA(#"!S !(%A(D$ v %L(C & Guly 1?, 1III0 G. Pan"ani%an/

S>BBA( 3rom 1ICC to 1II@, 9 dea)mutes 'ere employed %y 3ar

East Ban! as 6oney Sorters and ounters t#rou"# an employment

contract speci5cally or disa%led people. Later, <@ o t#ese 'or!ers

5led or ille"al dismissal. W#ile t#e lo'er courts #eld t#at under Art CH,

suc# contracts may speciy 5(ed term periods, t#e applica%le la' is Art

?CH, '#ic# applied to t#e case, leads to t#e conclusion t#at said

employees are re"ular 2only ?F o t#em/ and may not %e +alidly

terminated 'it#out ust cause.

D$C"(#%! Section 9 o t#e 6a"na arta or Disa%led persons

pro+ides >A &uali5ed disa%led employee s#all %e su%ect to t#e same

terms and conditions o employment and t#e same compensation,

pri+ile"esQas a &uali5ed a%le %odied person.; Once t#ey #a+e

attained t#e status o re"ular 'or!ers, t#ey s#ould %e accorded all t#e

%ene5ts "ranted %y la', not'it#standin" 'ritten or +er%al contracts to

t#e contrary. T#is treatment is rooted not merely on c#arity or

accommodation, %ut on ustice or all.

Documents

Labor Standards Law (Part I)