LABOR 1 REVIEWER On the other hand, Labor Standards law focuses on the terms and conditions of

employment of employees as individual employees or those legal provisions dealing with wages,
Article 1. hours of work and other terms and conditions of employments.

Q. What are the books covered by Labor Standards? 1997 Bar Q. No. I: Differentiate labor standards law from labor relations law. Are the two mutually
0. 1.Book One Pre-employment exclusive?
2.Book Two- Human Resources Development Program ANSWER: Labor Standard law is that labor law which prescribes terms and conditions of
3.Book Three Conditions of Employment employment like in Book IV, Title I AND Book VI of the Labor Code. These Books of the Labor Code
4.Book Four Health , Safety and Social Welfare Benefits. deal with working conditions, wages, working conditions for women, minors, househelpers and
home-workers, medical and dental services, occupational health and safety, termination and
What is LABOR LAW? retirement.

Labor law is the body of laws, rules and regulations enacted or issued by the state to promote the On the other hand, Labor Relations law is that which regulates the relations between
welfare of employees and regulate their relations with their employers. It also includes all judicial employers and workers like Book V of the Labor Code which deals with labor organizations,
decisions interpreting said laws, rules and Regulations. collective bargaining, unfair labor practices and strikes and lockouts.

1995 Bar Q. No.1: Is there any distinction between labor legislation and social legislation? Explain? Labor standards laws and labor relations laws are not mutually exlcusive; they are
complement to each other. Thus, the law on strikes and lockouts which is an example of labor
ANSWER: Labor legislation consist of statutes, regulations, and jurisprudence governing the relation relations law includes some provisions on the security of tenure of workers who are locked out.
between capital and labor, by providing for employment standards and a legal framework for These provisions are examples of labor standards law.
negotiating, adjusting and administering those standards and other incidents of employment. Social
legislation include laws that provide particular kings of protection or benefits to society or segments 1995 BAR Q. NO I (1): What are the three general classifications of labor statutes? Describe each
thereof in furtherance of social justice. classification.

2006 Bar Q. No.I(2): What is the purpose of labor legislation? ANSWERS: The three general classifications of labor statutes are:
0. Labor Relations Law;
ANSWER: The purpose of labor legislation is to implement the state policies in the Labor Code and a. Labor Standards Laws; and
the Constitution. Such as those provided in Article 3 of the Labor Code, Article II, section 18 and b. Social Security Laws.
Article XIII, section 3 of the 1987 Constitution.
Labor Relations Laws are those labor statutes that deal with the relations of labor and management,
2004 Bar Q. No. II: Distinguish clearly but briefly between Social security and union security. like the law on unions, collective bargaining, unfair labor practices, strikes, lockouts and picketing.

ANSWER: Labor Standard are those labor statutes that prescribe standards relating to terms and conditions of
employment for compliance by employers, like in the laws on hours of work, weekly rest periods,
2003 Bar Q. No. XI: How do the provisions of the law on labor relations interrelate, if at all, with the holiday pay, wages, and laws dealing with women, minors, house-helpers, and industrial home-
provisions pertaining to labor standards? workers.

ANSWER: Labor Relations law focuses its provisions on the collective aspects of employer-employee Social Security Laws are those labor statutes that provide protection not only to a worker but also to
relationship. Its legal provisions deal with employees organizing unions and how through these members of his family in case of loss of income or when there is need for medical care brought
unions, employees are able to have collective bargaining with their employer. about by contingencies like sickness, disability, death, and old age. Examples of social security laws
  are the Social Security Law, Review Government Services Insurance Act, the Articles of the Labor
Code on Employees Compensation, the laws are social legislation, but not all social legislation is
labor law.
 c. The right to return on investment
LABOR STANDARDS LAW d. The right to receive a living wage.

-It refers to the minimum requirements prescribed by existing laws, rules, and regulations and other A: Answer: c. The right to return on investment (1987 Constitution, Art. XIII, Sec. 3)
issuances relating to wages, hours of work, cost of living allowances and other monetary and welfare
benefits, including those set by occupational safety and health standards. ART 4. CONSTRUCTION IN FAVOR OF LABOR

SOCIAL SECURITY LAW Q: What is the concept of liberal approach in interpreting the Labor Code and its Implementing Rules
and Regulations in favor of labor?
Those laws that provide for income security and/or medical care for contingencies such
as: sickness, maternity, invalidity, old age, death of a bread winner; unemployment; emergency A: The workers’ welfare should be the paramount consideration in interpreting the Labor Code and
expenses; and employment injuries. its Implementing Rules and Regulations. This is rooted in the Constitutional mandate to afford full
protection to labor. Article 4 of the Labor Code provides that “all doubts in the implementation and
LABOR RELATIONS LAW interpretation of the provisions of the Labor Code including its implementing rules and regulations
shall be resolved in favor of labor” (PLOT v. NLRC G.R. No. 111933, July 23,1997). It underscores the
Defines the status, rights and duties, and the institutional mechanisms, that govern the police of social justice to accommodate the interests of the working class on the humane justification
individual and collective interactions of employers, employees or their representatives.  that those who have less in life shall have more in law (PAL v. SANTOS, G.R. No. 77875, February 4,
1993).
ART 2. DATE OF EFFECTIVITY
  Q: What is the quantum of evidence required in labor case? (2012 Bar)
When did the the Labor Code took effect? A. Such amount of relevant evidence which a reasonable mind might accept as adequate to justify a
 President Ferdinand Marcos promulgated the PD 442 on May 1, 1974, it took effect 6 conclusion. (Tancirco v. GSIS, G.R. No. 132916, November 16, 2001)
months  thereafter. Or on November 1, 1974. ( The field of personnel and Human
Resources Management, Perfecto S. Sison, Page 25) Q: What is CONSTRUCTION In favor of labor?
A: It is a basic and irrefregable rule that in carrying out and in interpreting the provisions of the labor
Q: Who is considered as the Father Labor Code? code and its implementing regulations, THE WORKINGMAN’S WELFARE SHOULD BE THE
A: The writing of the labor code began under the leadership of then Minister of Labor, Mr. Blas PRIMODRIAL AND PARAMOUNT CONSIDERATION. The interpretation herein gives meaning and
Ople, who deserves to be regarded as the “Father of the Labor Code”. substance to the libreal and compassionate spirit of the law enunciated in art 4 of the labor code.
(Salinas, Jr. NLRC)
ART 3. Declaration  of Basic Policy
Q: What is Management prerogative?
Q: What are the basic policy under the Labor Code? A: Right of an employer to regulate all aspect of employment, such as the freedom to prescribe work
A: The declared policy of the Labor code, which the state guarantees, are the following: assignments, working methods,, processes to be followed, regulation regarding transfer of
   a.) Afford Protection to Labor employees, supervision of their work, lay-off and discipline, and dismissal and recall of work ( BayBay
b.) Promote full employment water district v COA, G.R. No., 147248-49, Jan 23,2002.)
c.) Ensure equal work opportunities regardless of sex, race, or creed.
d.) Regulate the relations between workers and employers Q: An exclusive school for girls, run by a religious order, has a policy of not employing unwed
e.) Assure the rights between of workers to self-organization, collective mothers, women with live-in partners, and lesbians. Is the policy violative of any provision of the
bargaining,security of   Tenure, and just and Humane conditions of work ( Article 3 of Labor Code) Labor Code on employment of women?
A: No, the policy does not violate the Labor Code. The practice is a valid exercise of management
Q: Which is not a constitutional right of the workers? (2012 Bar) function. Considering the nature and reason for existence of the school, it may adopt such policy as
a. The right to engage in peaceful concerted activities will advance its laudable objectives. In fact, the police accords with the constitutional precept of
b. The right to enjoy security of tenure
inculcating ethical and moral values in schools. The school policy does not discriminate against     8. Marital discrimination.
women solely on account of sex (Art. 135, Labor Code) nor are the acts prohibited under Art. 137 of Q: What is Employee selection?
the Labor Code. A: In the exercise of  its prerogative to select his employees, the employer can not be compelled to
hire somebody against its will. In this regard, the supreme court declared that since the employer is
BONUS generally responsible for the damages caused by his employees it is logical and just that he be the
one exclusively entitled to freely select them. (manila Chauffeurs’ league v Bachrach Motor Co., INc)
Q: Lito was anticipating the bonus he would receive for 2013. Aside from the 13th month pay, the
company has been awarding him and his other co-employees a two to three months bonus for the Q: What is the aspect of Discipline in Management prerogatives?
last ten (10) years. However, because of poor over-all sales performance for the year, the company A: Xxx this right, aptly called management prerogative, gives employers the freedom to regulate,
unilaterally decided to pay only a one month bonus in 2013. Is Lito’s employer legally allowed to according to their discretion and best judgement, all aspect of employment, including work
reduce the bonus? assignment, working methods, processes to be followed, working regulations transfer of of
employees, worki supervision, lay-off of workers and the discipline, dismissal and recall of workers.
A: Yes. A bonus is an act of generosity granted by an enlightened employer to spur the employee to In General, management has the prerogative to discipline its employees and to impose
greater efforts for the success of the business and realization of bigger profits. The granting of a appropriate penalties on erring workers pursuant to company rules and regulations.
bonus is a management prerogative, something given in addition to what is ordinarily received by or ( Deles, Jr. v NLRC) 
strictly due the recipient. Thus, a bonus is not a demandable and enforceable obligation, except
when it is made part of the wage, salary or compensation of the employee. It may, therefore, be Q: What is Right to prescribe reasonable rules and regulations?
withdrawn, unless they have been made a part of the wage or salary or compensation of the A: What should not be overlooked is the prerogative of an employer company to prescribe
employees, a matter which is not in the facts of the case (American Wire and Cable Daily Rated reasonable rules and regulations necessary for the proper conduct of its business and to provide
Employees Union v. American Wire and Cable Co., Inc., G.R. No. 155059, April 29, 2005). certain disciplinary measures in order to implement said rules to assure that the same would be
complied with. ( SOCO v MERCANTILE CORPORATION OF DAVAO)
CHANGE OF WORKING HOURS
Q: What is Security of tenure?
Q: What is the extent of the exercise of this prerogative? A: Where it was held that security of tenure is correlative to the right to reasonable returns on
A: Employers have the freedom and prerogative, according to their discretion and best judgment, to investments and does not give them vested to their positions to the extent of depriving
regulate and control the time when workers should report for work and perform their respective management of its prerogative to change their assignments or to transfer them. 
functions.
TEST ON VALIDITY OF COMPANY POLICY ON MARITAL DISCRIMINATION
POST-EMPLOYMENT BAN, NON-INVOLVEMENT CLAUSE OR NON-COMPETE CLAUSE
In the Star Paper case the employees were terminated on various occasions, on the basis of the
A post-retirement  competitive employment restriction is designed to protect the employer against following company policy:
competition by former employees who may retire and obtain retirement or pension benefits and, at
the same time, engage in competitive employment. (Van Pelt v. Berefco, Inc., 208 N.E.2d 858, 1. New applicants will not be allowed to be hired if in case he/she has a relative, up to the
865[1965]) 3rd degree of relationship, already employed by the company.
2. In case two of our employees (both singles, one male and another female) developed a
Q: What are the aspects Management prerogative? friendly relationship during the course of their employment and then decided to get
A: 1. Employee Selection married, one of them should resign to preserve the policy stated above.
    2. Discipline 
    3. Transfer/ Promote employees According to the employer, said rule is only intended to carry out its no-employment-for-relatives-
    4. Productivity Standards within-the-third-degree-policy which is within the ambit of the prerogatives of management. 
    5. Grand of bonus 
    6. Change of working hours The Court did not find a reasonable business necessity in the policy. Respondents were hired after
    7. Post-employment ban they were found fit for the job, but were asked to resign when they married a co-employee.
Petitioner failed to show how the marriage could be detrimental to their business operations. The
policy is premised on the mere fear that employees married to each other will be less efficient. If the TEST TO DETERMINE GOCC IS SUBJECT TO CIVIL SERVICE LAW
questioned rule is upheld without valid justification, the employer can create policies based on an The manner of its creation such that government corporations created by special charter
unproven presumption of a perceived danger at the expense of an employee’s right to security of are subject to its provisions while those incorporated under the general Corporation Law are not
tenure. within its coverage. However, it should be noted that even if an entity is under the civil service law it
is not completely beyond the scope of labor laws.
ARTICLE 5. Rules and regulations of ( the Department of Labor and other government agencies  
charged with the administration and enforcement of. Coverage of civil service
 
-  The Department of Labor and other government agencies charged with the administration and Scope of the Civil Service. — (1) The Civil Service embraces all branches, subdivisions,
enforcement of this Code or any of its parts shall promulgate the necessary implementing instrumentalities, and agencies of the Government, including government-owned or controlled
rules and regulations. Such rules and regulations shall become effective fifteen (15) days after corporations with original charters; (2) Positions in the Civil Service shall be classified into career
announcement of their adoption in newspapers of general circulation. service and noncareer service.
 Rule - making power of the DOLE or Department of Labor and Employment:   
Career Service. — The Career Service shall be characterized by (1) entrance based on merit and
Q: What are the requisites for a valid exercise of rule-making power? fitness to be determined as far as practicable by competitive examination, or based on highly
A: (Pagpalain Hauler, Inc. v Trajano, Gr. 133215, July 15, 1999) technical qualifications; (2) opportunity for advancement to higher career positions; and (3) security
a.     Must be issued on the authority of law of tenure.
b.     It must not be contrary to the law and Constitution
  The Career Service shall include:
Q: When does rules and regulations becomes invalid? (1) Open Career positions, appointment to which prior qualification
A: A rule or regulation promulgated by an administrative body, such as the Department of Labor, to in an appropriate examination is required;
implement a law, in excess of its rule-making authority, is void.  (2) Closed Career position which are scientific or highly technical
     e.g. For instance, the Rules and Regulations implementing Article 94 of the Labor Code, and the in nature; these include the faculty and academic staff of state
accompanying Policy Instructions No. 9 limited the entitlement to holiday pay to daily-paid colleges and universities, and scientific and technical positions
employees only thereby excluding monthly-paid employees. But the law itself states that “every in scientific or research institutions which shall establish and
worker” shall be entitled to holiday pay. maintain their own merit systems;
(3) Positions in the Career Executive Service, namely, Undersecretary,
Q: When is the effectivity of rules and regulations? Assistant Secretary, Bureau Director, Assistant Bureau Director,
A: Rules and regulations shall become effective fifteen (15) days after announcement of their Regional Director, Assistant Regional Director, Chief of
adoption in the newspapers of general circulation.  Department Service and other officers of equivalent rank as may
be identified by the Career Executive Service Board, all of whom
ARTICLE 6. Applicability - All rights and benefits granted to workers under this code shall, except as are appointed by the President;
may otherwise be provided herein, apply alike to all workers, whether agricultural or non- (4) Career officers other than those in the Career Executive Service,
agricultural. (As amended by Presidential Decree No. 570-A, Nov 1, 1974). who are appointed by the President, such as the Foreign Service
Officers in the Department of Foreign Affairs;
COVERAGE OF CIVIL SERVICE (5) Commission officers and enlisted men of the Armed Forces
which shall maintain a separate merit system;
SCOPE: Provided under Article IX-B, Section 2(1) of the 1987 Constitution.  3
(6) Personnel of government-owned or controlled corporations,
TWO CLASSES OF CORPORATIONS RECOGNIZED UNDER THE 1987 CONSTITUTION whether performing governmental or proprietary functions, who
  First:  Private corporations created under general law. do not fall under the non-career service; and
Second:  Government-owned and controlled corporations with original charters. (7) Permanent laborer, whether skilled, semi-skilled, or unskilled.
 Classes of Positions in the Career Service. — (1) Classes responsibility with a minimum of direction and supervision form
positions in the career service, appointment to which requires examinations the hiring agency; and
shall be grouped into three major levels as follows: (5) Emergency and seasonal personnel.
(a) The first level shall include clerical, trades, crafts, and custodial   
service positions which involve non-professional or subprofessional work in a non-supervisory or Test to determine whether a GOCC is subject to Civil Service Law
supervisory capacity -The test in determining whether a government-owned or controlled corporation is subject to the
requiring less than four years of collegiate studies; Civil Service Law is the manner of its creation such that government corporations created by special
(b) The second level shall include professional, technical and scientific charter are subject to its provisions while those incorporated under the general Corporation Law are
positions which involve professional, technical or scientific work not within its coverage.( PHILIPPINE NATIONAL OIL COMPANY-ENERGY DEVELOPMENT
in a non-supervisory or supervisory capacity requiring at least CORPORATION, vs HON. VICENTE T. LEOGARDO, DEPUTY MINISTER OF LABOR AND VICENTE D.
four years of college work up to Division Chief level; and ELLELINA)
(c) The third level shall cover positions in the Career Executive
Service. Corporations governed by the Labor Code
(2) Except as herein otherwise provided, entrance to the first two levels shall Clark Development Corporation
be through competitive examinations, which shall be open to those Clark Development Corporation a government-owned or -controlled corporation without an original
inside and outside the service who meet the minimum qualification charter, was incorporated under the Corporation Code.(CDC vs CA)
requirements. Entrance to a higher level does not require previous
qualification in the lower level. Entrance to the third level shall be The Philippine Tuberculosis Society
prescribed by the Career Executive Service Board. The Philippine Tuberculosis Society, Inc. (PTSI) belongs to the latter category and, therefore, covered
(3) Within the same level, no civil service examination shall be required by Rep. Act No. 7641 which is an amendment to the Labor Code. (Postigo v Philippine Tuberculosis
for promotion to a higher position in one or more related occupational Society, Inc)
groups. A candidate for promotion should, however, have previously
passed the examination for that level. National Housing Corporation
SEC. 9. Non-Career Service. — The Non-Career Service shall be National Housing Corporation is a government owned corporation organized in 1959 in accordance
characterized by (1) entrance on bases other than those of the usual tests with Executive Order No. 399, otherwise known as the Uniform Charter of Government Corporation
of merit and fitness utilized for the career service; and (2) tenure which is dated January 1, 1959. Its shares of stock are and have been one hundred percent (100%) owned by
limited to a period specified by law, or which is coterminous with that of the Government from its incorporation under Act 1459, the former corporation law.( Juco v NLRC)
the appointing authority or subject to his pleasure, or which is limited to the  
duration of a particular project for which purpose employment was made. BLISS DEVELOPMENT CORPORATION
BDC is a government-owned corporation created under the Corporation Law. It is without a charter,
The Non-Career Service shall include: governed by the Labor Code and not by the Civil Service Law hence, Executive Order No. 180 does
(1) Elective officials and their personal or confidential staff; not apply to it.( BLISS DEVELOPMENT CORPORATION EMPLOYEES UNION (BDCEU)-SENTRO NG
(2) Secretaries and other officials of Cabinet rank who hold their DEMOKRATIKONG MANGGAGAWA (SDM) v. HON. PURA FERRER CALLEJA and BLISS DEVELOPMENT
positions at the pleasure of the President and their personal or CORPORATION)
confidential staff(s);
(3) Chairman and members of commissions and boards with fixed Philippine Veterans Bank 
terms of office and their personal or confidential staff; Constitution provides in its Article IX-B, Section 2(1) that "the Civil Service embraces all branches,
(4) Contractual personnel or those who employment in the subdivisions, instrumentalities, and agencies of the Government, including government-owned or
government is in accordance with a special contract to undertake controlled corporations with original charters." As the Bank is not owned or controlled by the
a specific work or job, requiring special or technical skills not Government although it does have an original charter in the form of R.A. No. 3518, it clearly does
available in the employing agency, to be accomplished within not fall under the Civil Service and should be regarded as an ordinary commercial corporation
a specific period, which in no case shall exceed one year, and
performs or accomplishes the specific work or job, under his own
 One of the basic immunities of an international organization is immunity from local jurisdiction, i.e.,
National Service Corporation that it is immune from the legal writs and processes issued by the tribunals of the country where it is
The 1987 Constitution governs the instant case because it is the constitution in place at the time of found. (See Jenks, Id., pp. 37-44). The obvious reason for this is that the subjection of such an
decision thereof. The NLRC has jurisdiction to accord relief to the parties. As an admitted subsidiary organization to the authority of the local courts would afford a convenient medium thru which the
of the NIDC, in turn a subsidiary of the PNB, the NASECO is a government-owned or controlled host government may interfere in their operations or even influence or control its policies and
corporation without original charter (Naseco v NLRC) decisions of the organization; besides, such subjection to local jurisdiction would impair the capacity
 Corporations covered by the Civil Service Law. of such body to discharge its responsibilities impartially behalf of its member-states. 13
 
Philippine Casino Operator Corporation International Rice Research Institute
The Court collectively referred to all respondent corporations, including PCOC and PSSC, and held IRRI did not waive its immunity, ordered the aforesaid decision of the Labor Arbiter set aside and the
that in accordance with the Constitution and jurisprudence, corporations with original charter "fall complaint dismissed. Hence, this petition where it is contended that the immunity of the IRRI as an
under the jurisdiction of the Civil Service Commission and not the Labor Department." The Court international organization granted by Article 3 of Presidential Decree No. 1620 may not be invoked
stated further that P.D. 1869 exempts casino employees from the coverage of Labor Code provisions in the case at bench inasmuch as it waived the same by virtue of its Memorandum on "Guidelines on
and although the employees are empowered by the Constitution to form unions, these are "subject the handling of dismissed employees in relation to P.D. 1620."
to the laws passed to regulate unions in offices and corporations governed by the Civil Service Law."  
Thus, in dismissing the petition, the ruling of the Third Division was clear - - - it is the Civil Service UNITED NATIONS REVOLVING FUND FOR NATURAL RESOURCES EXPLORATION (UNRFNRE)
Commission, and not the NLRC, that has jurisdiction over the employer-employee problems in Private respondent is not engaged in a commercial venture in the Philippines. Its presence here is by
PAGCOR, PCOC and PSSC. virtue of a joint project entered into by the Philippine Government and the United Nations for
mineral exploration in Dinagat Island. Its mission is not to exploit our natural resources and gain
Duty Free Philippines pecuniarily thereby but to help improve the quality of life of the people, including that of petitioners.
Since DFP is under the exclusive authority of the PTA, it follows that its officials and employees are This is not to say that petitioner have no recourse. Section 31 of the Convention on the Privileges
likewise subject to the Civil Service rules and regulations. Clearly then, Mojica’s recourse to the and Immunities of the Specialized Agencies of the United Nations states that "each specialized
Labor Arbiter was not proper. He should have followed the procedure laid down in DFP’s merit agency shall make a provision for appropriate modes of settlement of: (a) disputes arising out of
system and the Civil Service rules and regulations. contracts or other disputes of private character to which the specialized agency is a party."
   SEAFDEC is an international agency enjoying diplomatic immunity. This, we have already held in
Leyte Metropolitan Water District Southeast Asian Fisheries Development Center-Aquaculture Department vs. National Labor Relations
Obviously, LWDs are not private corporations because they are not created under the Corporation Commission, G.R. No. 86773, 206 SCRA 283/1992; see also Lacanilao v. de Leon, G.R. No. 76532, 147
Code. LWDs are not registered with the Securities and Exchange Commission. Section 14 of the SCRA, 286/1987/, where we
Corporation Code states that "[A]ll corporations organized under this code shall file with the  
Securities and Exchange Commission articles of incorporation x x x." LWDs have no articles of Southeast Asian Fisheries Development Center 
incorporation, no incorporators and no stockholders or members. There are no stockholders or Being an intergovernmental organization, SEAFDEC including its Departments (AQD), enjoys
members to elect the board directors of LWDs as in the case of all corporations registered with the functional independence and freedom from control of the state in whose territory its office is
Securities and Exchange Commission. The local mayor or the provincial governor appoints the located.
directors of LWDs for a fixed term of office. This Court has ruled that LWDs are not created under the
Corporation Code. (Felciano v Commission on Audit) Permanent international commissions and administrative bodies have been created by the
  agreement of a considerable number of States for a variety of international purposes, economic or
EMPLOYERS WITH IMMUNITY FROM SUIT social and mainly non-political. Among the notable instances are the International Labor
  Organization, the International Institute of Agriculture, the International Danube Commission. In so
ASIAN DEVELOPMENT BANK far as they are autonomous and beyond the control of any one State, they have a distinct juridical
Being an international organization that has been extended diplomatic status, the ADB is personality independent of the municipal law of the State where they are situated. As such,
independent of the municipal law. 10 In Southeast Asian Fisheries Development Center vs. Acosta. according to one leading authority they must be deemed to possess a species of international
11 The Court has cited with approval the opinion 12 of the Minister of justice; thus — personality of their own. (Salonga and Yap, Public International Law, 83 [1956 ed.]
Pursuant to its being a signatory to the Agreement, the Republic of the Philippines agreed to be A: The general rule is that a title to the land acquired pursuant to Presidential Decree No.
represented by one Director in governing SEAFDEC Council (Agreement Establishing SEAFDEC, Art. 5, 27 or the Land Reform Program of the Government shall not be transferable.
Par. 1,. . .), and that its national laws and regulations shall apply only insofar as its contributions to EXCEPTIONS: by hereditary succession or to the Government in accordance with the
SEAFDEC of "an agreed amount of money, movable and immovable property and services necessary provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and other existing
for the establishment and operation of the Center" are concerned (Art. 11, ibid). It expressly waived laws and regulations.
the application of the Philippine laws on the disbursement of funds of petitioner SEAFDEC-AQD
(Section 2, P.D. No. 292). Q: Who is the implementing agency on the provisions under Chapter 2 of this Book? (Art
  11)
EXCLUSION UNDER ART. 82 A: The Department of Agrarian Reform shall promulgate the necessary rules and
Art. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and regulations to implement the provisions of this Chapter.
undertakings whether for profit or not, but not to government employees, managerial employees,
field personnel, members of the family of the employer who are dependent on him for support, Q: What is CARP?
domestic helpers, persons in the personal service of another, and workers who are paid by results as A: Comprehensive Agrarian Reform Program, is a government initiative that aims to grant
determined by the Secretary of Labor in appropriate regulations. landless farmers and farmworkers ownership of agricultural lands.
As used herein, “managerial employees” refer to those whose primary duty consists of the
management of the establishment in which they are employed or of a department or subdivision Q: What is the basis for CARP?
thereof, and to other officers or members of the managerial staff. A: CARL has the mandate of the Constiturion. Section 21, Art. II asserts that the State shall
“Field personnel” shall refer to non-agricultural employees who regularly perform their duties away promote comprehensive rural development and agrarian reform.
from the principal place of business or branch office of the employer and whose actual hours of work
in the field cannot be determined with reasonable certainty. Q: What is agrarian reform?
  A. Agrarian reform, according to Section 3 of RA 6657 is the redistribution of lands,
EMANCIPATION OF TENANTS (ARTs. 7-11) regardless of crops or fruits produced to farmers or regular farmworkers who are landles,
irrespective of tenurial arrangement, to include the totality of factors and support services
Q: When is a tenant-farmer deemed an owner of a portion of land? (Art. 8) designed to lift the economic status of the beneficiaries and all other arrangements
A: Tenant-farmers on private agricultural lands primarily devoted to rice and corn under a system of alternative to the physical redistribution of lands, such as production, profit-sharing, labor
share crop or lease tenancy whether classified as landed estate or not shall be deemed owner of a administration, and the distribution of shares of stocks, which will allow beneficiaries to
portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if receive a just share of the fruits of the lands they work.
irrigated.
REPUBLIC ACT 9700
Q: How do you determine the cost of land to be transferred to a tenant-farmer? (Art. 9) Q: What is the purpose of enacting this Act?
A: For the purpose of determining the cost of the land to be transferred to the tenant- A: This Act provides for the continuing acquisition and distribution of agricultural lands
farmer, the value of the land shall be equivalent to two and one-half (2-1/2) times the covered under the Comprehensive Agrarian Reform Program (CARP) for a period of five
average harvest of three (3) normal crop years immediately preceding the promulgation years under various phases, and the simultaneous provision of support services and the
of Presidential Decree No. 27 on October 21, 1972.  delivery of agrarian justice to Agrarian Reform Beneficiaries.

The total cost of the land, including interest at the rate of six percent (6%) per annum, Q: What are the modes of acquisition under this Act?
shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations.  A: The modes of acquisition shall be limited to: (1) voluntary offer to sell; and (2)
compulsory acquisition. Voluntary land transfer shall be allowed only for landholdings
Q: When can a title to a land be issued to a tenant-farmer? (Art 10) submitted as of June 30, 2009.
A: A land title shall be issued to the tenant-farmer when he has become a full-fledged
member of a duly recognized farmers’ cooperative. Q: What are the lands covered by the CARP?
A. Under the Comprehensive Agrarian Reform Law of 1988, the following are the lands
Q: Can a title to land be transferable? (Art 10) covered by the CARP:
 1. All alienable and disposable lands of the public domain devoted to or suitable
for agriculture. Those reclassified by the Congress/law as a part of the public Q: How do you determine just compensation?
domain; A: The cost of acquisition of the land, the value of the standing crop, the current value of
2. All lands of the public domain in excess of the specific limits as determined by like properties, its nature, actual use and income, the sworn valuation by the owner, the
Congress in the preceding paragraph; tax declarations, the assessment made by government assessors, and seventy percent
3. All other lands owned by the Government devoted to or suitable for agriculture; (70%) of the zonal valuation of the Bureau of Internal Revenue (BIR), translated into a
and basic formula by the DAR shall be considered, subject to the final decision of the proper
4. All private lands devoted to or suitable for agriculture regardless of the court. 
agricultural products raised or that can be raised thereon. Additional factors: The social and economic benefits contributed by the farmers and the
farmworkers and by the Government to the property as well as the nonpayment of taxes
Q: What are the retention limits as provided for by law? or loans secured from any government financing institution on the said land
A: Except as otherwise provided in this Act, no person may own or retain, directly or
indirectly, any public or private agricultural land, the size of which shall vary according to Q: What will happen after the awarded land is given to the beneficiaries?
factors governing a viable family-size farm, such as commodity produced, terrain, A. The rights and responsibilities of the beneficiaries shall commence from their receipt of
infrastructure, and soil fertility as determined by the Presidential Agrarian Reform Council a duly registered emancipation patent or certificate of land ownership award and their
(PARC) created hereunder, but in no case shall retention by the landowner exceed five (5) actual physical possession of the awarded land.
hectares. Three (3) hectares may be awarded to each child of the landowner, subject to
the following qualifications: (1) that he is at least fifteen (15) years of age; and (2) that he Q: What is the process of registration of the awarded land?
is actually tilling the land or directly managing the farm: Provided, That landowners whose A. The Registry of Deeds shall register the title of the land in the name of the Republic of
lands have been covered by Presidential Decree No. 27 shall be allowed to keep the areas the Philippines, after the Land Bank of the Philippines (LBP) has certified that the
originally retained by them thereunder: Provided, further, That original homestead necessary deposit in the name of the landowner constituting full payment in cash or in
grantees or their direct compulsory heirs who still own the original homestead at the time bond with due notice to the landowner and the registration of the certificate of land
of the approval of this Act shall retain the same areas as long as they continue to cultivate ownership award issued to the beneficiaries, and to cancel previous titles pertaining
said homestead. thereto.

Q: What lands are exempted or excluded from the coverage of the Act? Q: What is a landless beneficiary?
A: Lands actually, directly and exclusively used and found to be necessary for parks, A. Under this Act, a landless beneficiary is one who owns less than three (3) hectares of
wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds, agricultural land.
and mangroves, national defense, school sites and campuses including experimental farm
stations operated by public or private schools for educational purposes, seeds and Q: Who are qualified beneficiaries?
seedlings research and pilot production centers, church sites and convents appurtenant A.The lands covered by the CARP shall be distributed as much as possible to landless
thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds residents of the same barangay, or in the absence thereof, landless residents of the same
and cemeteries, penal colonies and penal farms actually worked by the inmates, municipality in the following order of priority: 
government and private research and quarantine centers and all lands with eighteen (a) agricultural lessees and share tenants; 
percent (18%) slope and over, except those already developed shall be exempt from the (b) regular farmworkers; 
coverage of this Act. (c) seasonal farmworkers; 
(d) other farmworkers; 
Q: Who are those exempted to the five-hectare retention limit provided by this Act? (e) actual tillers or occupants of public lands; 
A: Provincial, city and municipal government units acquiring private agricultural lands by (f) collectives or cooperatives of the above beneficiaries; and 
expropriation or other modes of acquisition to be used for actual, direct and exclusive (g) others directly working on the land.
public purposes, such as roads and bridges, public markets, school sites, resettlement
sites, local government facilities, public parks and barangay plazas or squares, consistent
with the approved local comprehensive land use plan.
PRE-EMPLOYMENT (Art. 12)
  (d) The State affirms the fundamental equality before the law of women and men and the
ART. 12. Statement of objectives. - It is the policy of the State: significant role of women in nation-building. Recognizing the contribution of overseas
a) To promote and maintain a state of full employment through improved manpower migrant women workers and their particular vulnerabilities, the State shall apply gender
training, allocation and utilization;  sensitive criteria in the formulation and implementation of policies and programs affecting
b) To protect every citizen desiring to work locally or overseas by securing for him the migrant workers and the composition of bodies tasked for the welfare of migrant workers.
best possible terms and conditions of employment; 
c) To facilitate a free choice of available employment by persons seeking work in   (e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall
conformity with the national interest; not be denied to any person by reason of poverty. In this regard, it is imperative that an
d) To facilitate and regulate the movement of workers in conformity with the national effective mechanism be instituted to ensure that the rights and interest of distressed
interest; overseas Filipinos, in general, and Filipino migrant workers, in particular, whether
e) To regulate the employment of aliens, including the establishment of a registration regular/documented or irregular/undocumented, are adequately protected and
and/or work permit system; safeguarded.
f) To strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of workers, locally   (f) The right of Filipino migrant workers and all overseas Filipinos to participate in the
and overseas, to serve national development objectives;  democratic decision-making processes of the State and to be represented in institutions
g) To insure careful selection of Filipino workers for overseas employment in order to relevant to overseas employment is recognized and guaranteed.
protect the good name of the Philippines abroad.
  (g) The State recognizes that the most effective tool for empowerment is the possession of
Q: What is the declaration of policies under Migrant Workers and Overseas Filipino Act skills by migrant workers. The government shall provide them free and accessible skills
of 1995? development and enhancement programs. Pursuant to this and as soon as practicable, the
A: RA 8042 sec. 2 s amended by RA10022 government shall deploy and/or allow the deployment only of skilled Filipino workers.
(a) In the pursuit of an independent foreign policy and while considering national
sovereignty, territorial integrity, national interest and the right to self-determination   (h) he State recognizes non-governmental organizations, trade unions, workers
paramount in its relations with other states, the State shall, at all times, uphold the dignity associations, stakeholders and their similar entities duly recognized as legitimate, are
of its citizens whether in country or overseas, in general, and Filipino migrant workers, in partners of the State in the protection of Filipino migrant workers and in the promotion of
particular, continuously monitor international conventions, adopt/be signatory to and their welfare. The State shall cooperate with them in a spirit of trust and mutual respect.
ratify those that guarantee protection to our migrant workers, and endeavor to enter into The significant contribution of recruitment and manning agencies shall from part this
bilateral agreements with countries hosting overseas Filipino workers partnership.

(b) The State shall afford full protection to labor, local and overseas, organized and   (I) Government fees and other administrative costs of recruitment, introduction,
unorganized, and promote full employment and equality of employment opportunities for placement and assistance to migrant workers shall be rendered free without prejudice to
all. Towards this end, the State shall provide adequate and timely social, economic and the provision of Section 36 hereof.
legal services to Filipino migrant workers.
  Nonetheless, the deployment of Filipino overseas workers, whether land-based or sea-
(c) While recognizing the significant contribution of Filipino migrant workers to the based by local service contractors and manning agencies employing them shall be
national economy through their foreign exchange remittances, the State does not promote encouraged. Appropriate incentives may be extended to them.
overseas employment as a means to sustain economic growth and achieve national
development. The existence of the overseas employment program rests solely on the Q: What is the policy on the Deployment of Migrant Workers
assurance that the dignity and fundamental human rights and freedoms of the Filipino A:  RA 8042 sec. 4 as amended by RA 10022
citizens shall not, at any time, be compromised or violated. The State, therefore, shall
continuously create local employment opportunities and promote the equitable The State shall allow the deployment of overseas Filipino workers only in countries where the rights
distribution of wealth and the benefits of development. of Filipino migrant workers are protected. The government recognizes any of the following as a
guarantee on the part of the receiving country for the protection of the rights of overseas Filipino RECRUITMENT and PLACEMENT of WORKERS (Art. 13)
workers:
"(a) It has existing labor and social laws protecting the rights of workers, including migrant workers; Q: What are the laws governing recruitment and placement?
"(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or resolutions A: The following laws regulate the recruitment and placement activities for local and overseas
relating to the protection of workers, including migrant workers; and employment: 
"(c) It has concluded a bilateral agreement or arrangement with the government on the protection of (a) Book I, Labor Code of the Philippines; 
the rights of overseas Filipino Workers: (b) Rules to Implement Book I of the Labor Code of the Philippines; (c) RA No. 8042 known
as the Migrant Workers and Overseas  Filipinos Act of 1995, as amended by RA No. 10022,
Provided, That the receiving country is taking positive, concrete measures to protect the rights of and their implementing rules;
migrant workers in furtherance of any of the guarantees under subparagraphs (a), (b) and (c) hereof. (d) Revised Rules and Regulations Governing Recruitment and Placement and Local
"In the absence of a clear showing that any of the aforementioned guarantees exists in the country of Employment (D.O. No. 141-14), November 20, 2014;
destination of the migrant workers, no permit for deployment shall be issued by the Philippine (e) Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Overseas Employment Administration (POEA). Landbased Overseas Filipino Worker of 2016;
(f) 2016 Revised POEA Rules and Regulations Governing the Recruitment and Employment
"The members of the POEA Governing Board who actually voted in favor of an order allowing the of Employment of Seafarers;
deployment of migrant workers without any of the aforementioned guarantees shall suffer the (g) Numerous Policy Instructions, Circulars and Department Orders issued by the DOLE
penalties of removal or dismissal from service with disqualification to hold any appointive public Secretary in the exercise of the  regulatory power under the Labor Code;
office for five (5) years, Further, the government official or employee responsible for the issuance of (h) 1987 Constitution;
the permit or for allowing the deployment of migrant workers in violation of this section and in direct (i) Supreme Court decisions on Recruitment and Placement Activities.
contravention of an order by the POEA Governing Board prohibiting deployment shall be meted the
same penalties in this section. Q: What does Article 13(b) of the Labor Code provide?
A: Recruitment and placement. It refers to any act of canvassing, enlisting, contracting, transporting,
"For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a utilizing, hiring or procuring workers, and includes referrals, contract services, promising or
certification to the POEA, specifying therein the pertinent provisions of the receiving country's advertising for employment, locally or abroad, whether for profit or not: Provided, That any person
labor/social law, or the convention/declaration/resolution, or the bilateral agreement/arrangement or entity which, in any manner, offers or promises for a fee, employment to two or more persons
which protect the rights of migrant workers. shall be deemed engaged in recruitment and placement.
"The State shall also allow the deployment of overseas Filipino workers to vessels  
navigating the foreign seas or to installations located offshore or on high seas whose Q:  What does Article 13(c) of the Labor Code provide?
owners/employers are compliant with international laws and standards that protect the A: Private fee-charging employment agency. It means any person or entity engaged in recruitment
rights of migrant workers. and placement of workers for a fee which is charged, directly or indirectly, from the workers or
employers or both.
"The State shall likewise allow the deployment of overseas Filipino workers to companies  
and contractors with international operations: Provided, That they are compliant with Q: What does Art. 13(d) of the Labor Code provide?
standards, conditions and requirements, as embodied in the employment contracts A: License. It means a document issued by the Department of Labor authorizing a person or entity to
prescribed by the POEA and in accordance with internationally-accepted standards." operate a private employment agency.

Q: What is the policy on Termination or Ban on Deployment? Q: What does Art. 13(e) of the Labor Code provide?
A: RA 8042 sec. 5 as ammended by RA 10022 A: Private recruitment entity. It means any person or association engaged in the recruitment and
Notwithstanding the provisions of Section 4 hereof, in pursuit of the national interest or placement of workers, locally or overseas, without charging, directly or indirectly, any fee from the
when public welfare so requires, the POEA Governing Board, after consultation with the workers or employers.
Department of Foreign Affairs, may, at any time, terminate or impose a ban on the
deployment of migrant workers.
 
Q: What does Article 13(f) of the Labor Code provide? Q: What does DO No. 141-14 contemplate?
A: Authority. It means a document issued by the Department of Labor authorizing a person or A: It provides for the Rules and Regulations Governing Private Recruitment and Placement   for Local
association to engage in recruitment and placement activities as a private recruitment entity. Employment pursuant to Articles 5, 13, 25, and 39 of the Labor Code of the Philippines as amended.
   
Q: What happened in the case of People vs. Panis in relation to the interpretation of Article  13(b) Q:   How does DO No. 141-14 define Private Employment Agency or Agency?
of the Labor Code? A: Private employment agency or agency refers to any person, partnership or corporation engaged in
A: Four information were filed before CFI alleging that private respondent Serapio Abug, "without the recruitment and placement of workers for local employment. It also refers to any individual,
first securing a license from the Ministry of Labor as a holder of authority to operate a fee-charging partnership, corporation or entity licensed by the Department of Labor and Employment to engage
employment agency, did then and there wilfully, unlawfully and criminally operate a private fee in the recruitment and placement of Kasambahay for local employment.
charging employment agency by charging fees and expenses (from) and promising employment in  
Saudi Arabia" to four separate individuals. Abug filed a motion to quash contending that he cannot Q: How does DO No. 141-14 define  License?
be charged for illegal recruitment because according to him, Article 13(b) of the Labor Code says A: License refers to a document issued by the Secretary through the Regional Director authorizing a
there would be illegal recruitment only "whenever two or more persons are in any manner promised person, partnership or corporation to operate a private employment agency.
or offered any employment for a fee.”  
Q: How does DO No. 141-14 define “Authority to operate branch”?
In the instant case, the view of the private respondents is that to constitute recruitment and A: Authority to Operate Branch refers to a document issued by the Secretary through the Regional
placement, all the acts mentioned in this article should involve dealings with two or more persons as Director authorizing a private employment agency to establish and operate a branch office.
an indispensable requirement. On the other hand, the petitioner argues that the requirement of two  
or more persons is imposed only where the recruitment and placement consists of an offer or Q: How does DO No. 141-14 define “Authority to recruit”?
promise of employment to such persons and always in consideration of a fee. A: Authority to recruit refers to a document issued by the Secretary through the Regional Director
  authorizing a person to conduct recruitment activities for local employment on behalf of a private
The Court ruled that neither interpretation is acceptable. We fail to see why the proviso should employment agency.
speak only of an offer or promise of employment if the purpose was to apply the requirement of two  
or more persons to all the acts mentioned in the basic rule. For its part, the petitioner does not Q: How does DO No. 141-14 define Representative?
explain why dealings with two or more persons are needed where the recruitment and placement A: Representative refers to a person acting as an agent of a private employment agency registered
consists of an offer or promise of employment but not when it is done through "canvassing, with the Regional Office and granted Authority to Recruit.
enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers.  
Q: How does DO No. 141-14 define “Domestic Seafarer”?
As we see it, the proviso was intended neither to impose a condition on the basic rule nor to provide A: Domestic Seafarer refers to any person who is employed or engaged to work in any capacity on
an exception thereto but merely to create a presumption. The presumption is that the individual or board ship as defined herein.
entity is engaged in recruitment and placement whenever he or it is dealing with two or more  
persons to whom, in consideration of a fee, an offer or promise of employment is made in the course Q: What is “ship” under DO No. 141-14?
of the "canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring (of) workers. " A: Ship refers to any Philippine registered ship or vessel which navigates within the territorial
  jurisdiction of the Philippines or closely adjacent to, sheltered areas where port regulations apply.
The number of persons dealt with is not an essential ingredient of the act of recruitment and  
placement of workers. Any of the acts mentioned in the basic rule in Article 13(b) win constitute Q: What is “Public Employment Service Office or PESO” under DO No. 141-14?
recruitment and placement even if only one prospective worker is involved. The proviso merely lays A: Public Employment Service Office refers to a non-fee charging multi-employment service facility
down a rule of evidence that where a fee is collected in consideration of a promise or offer of or entity established, recognized or accredited pursuant to RA 8759 or the PESO Act of 1999 and its
employment to two or more prospective workers, the individual or entity dealing with them shall be implementing rules and regulations.
deemed to be engaged in the act of recruitment and placement. The words "shall be deemed"  
create that presumption. Q: How does DO 141-14 define “Recruit”?
A: Recruit refers to any Filipino individual promised, contracted, or enlisted for employment.
 
 
Q: Who is/are “Domestic Worker/Kasambahay” under DO. 141-14? Q: How does the Migrant Workers and Filipino Act of 1995, as amended define Authority?
A: Domestic Worker or Kasambahay refers to any person engaged in domestic work within an A: Authority refers to a document issued by the Secretary of Labor and Employment authorizing the
employment relationship, whether on a live in or live out arrangement, such as, but not limited to officers, personnel, agents or representative of a licensed recruitment/manning agency to conduct
general househelp, yaya, cook, gardener, or laundry person, but shall exclude service providers, recruitment and placement of activities in a place stated in the license or in a specified place.
family drivers, children who are under foster family arrangement, or any person who performs
domestic work only occasionally or sporadically and not on occupational basis. Q: Who are Direct Hires under the Migrant Workers and Filipino Act of 1995, as amended?
  A: They are workers directly hired by employers for overseas employment as authorized by the
Q: What does “Recruitment Contract” mean in DO 141-14? Secretary of Labor and Employment and processed by the POEA, including:
A: Recruitment Contract refers to the agreement entered into between a private employment 1.       Those hired by international organizations
agency or its representative and a recruit stating the terms and conditions of the recruitment in a 2.       Those hired by members of the diplomatic corps.
language known and understood by the recruit. 3.  Name hires or workers who are able to secure overseas employment opportunities
  with an employer without the assistance or participation of any agency.
Q: What is an “Employment Contract” as defined in DO No. 141-14?  
A: Employment Contract refers to the individual written agreement between the employer and the Q: What are the two types of Employment Contract under the Migrant Workers and Filipino Act of
worker stating clearly the terms and conditions of employment in a language known and understood 1995, as amended?
by the worker. A: 1.   For land-based workers hired by private recruitment/employment agencies –
an individual written agreement between the foreign principal/employer and the worker based on
Q: What about a “Service Contract” as defined in DO No. 141-14? the master employment contract approved by the Administration; and
A: Service Contract refers to the agreement entered into between the employer and the private               2.   For seafarers – written standard, POEA-approved employment contract stipulating a 
employment agency stating clearly the terms and conditions of the service. specific period of employment and formulated through tripartite consultation, individually adopted
  and agreed upon by the principal/employer and the seafarer.
Q: What does “Service Fee” mean?
A: Service Fee refers to the amount charged by a private employment agency to a local employer as Q: What does Gender Sensitivity mean under the Migrant Workers and Filipino Act of 1995, as
payment for actual services rendered in relation to the recruitment and placement of workers. amended?
  A: Gender Sensitivity refers to the cognizance of the inequalities and inequities prevalent in society
Q: What about “Deployment Expenses” under DO No. 141-14? between  men and women and a commitment to address issues with concern for the respective
A: Deployment Expenses refer to the expenses that are directly used for the transfer of the interest of the sexes. 
Kasambahay from the place of origin to the place of work covering the cost of transportation, meals,
communication expense, and other incidental expenses. Advances or loans by the Kasambahay are Q: How does Migrant Workers and Filipino Act of 1995, as amended define “Head” or “Manage”? 
not included in the definition of deployment expenses. A: It refers to any of the following acts: (1) Control and supervise the operations of the
  recruitment/manning agency or branch thereof; (2) Exercise the authority to fire employees and lay
Q: Who is an “employer” in DO No. 141-14? down and execute management policies of the recruitment/manning agency or branch thereof.
A: Employer refers to any person, partnership, corporation or any entity engaging services of a
worker through the private employment agency, and who is a part to the employment contract with Q: What does joint and several liability mean under the Migrant Workers and Filipino Act of 1995,
the worker. It also refers to any person who engages and controls the services of a Kasambahay and as amended?
is a party to the employment contract. A: Refers to the liability of the principal/the employer and the recruitment/manning agency, for any
  and all claims arising out of the implementation of the employment contract involving Filipino
Q: What does “Non-license or non-holder of authority” mean? workers for overseas deployment. If the recruitment/manning agency is a juridical being the
A: It refers to any person, partnership or corporation who has not been issued a license or authority corporate officers, directors and partners, as the case may be, shall themselves be jointly and
to recruit, or whose license or authority to recruit has been revoked or cancelled by the Regional severally liable with the corporation or partnership for the aforesaid claims and damages.
Director.
Q: Who are Irregular/Undocumented Filipino migrant workers under the Migrant Workers and A: Any and all amounts charged by a private recruitment agency from a worker for its recruitment
Filipino Act of 1995, as amended? and placement services as prescribed by the Secretary of Labor and Employment.
A: (1) Those who acquired their passports through fraud or misrepresentation; (2) Those who
possess expired visas or permits to stay; (3) hoe who have no travel document whatsoever; (4) Those Q: Who is a Principal under the Migrant Workers and Filipino Act of 1995, as amended?
who have valid but inappropriate visas; (5) Those whose employment contracts were not processed A: An employer or foreign placement agency hiring or engaging Filipino workers for overseas
by the POEA or subsequently verified and registered on-site by the POLO, or if required by law or employment through a licensed private recruitment/manning agency 
regulation.  
Q: What is a Private Recruitment/Employment Agency under the Migrant Workers and Filipino Act
Q: How does the Migrant Workers and Filipino Act of 1995, as amended define License?  of 1995, as amended?
A: License refers to the document issued by the Secretary of Labor and Employment authorizing a A: Refers to any person, partnership or corporation duly licensed by the Secretary of Labor and
person partnership, or corporation to operate a private recruitment/manning agency. Employment to engage in the recruitment and placement of workers for overseas employment for a
fee which is charged, directly or indirectly, from workers who renewed their employment contracts
Q: What is Manning Agency under the Migrant Workers and Filipino Act of 1995, as amended? with the same principal. 
A: Manning Agency refers to any person, partnership or corporation duly licensed by the Secretary of
Labor and Employment to engage in the recruitment and placement of seafarers for ships plying Q: Who are Rehires under the Migrant Workers and Filipino Act of 1995, as amended?
international waters and for related maritime activities.  A: Land-based workers who renewed their employment contracts with the same principal

Q: Who is a Non-Licensee under the Migrant Workers and Filipino Act of 1995, as amended? Q: Who are Regular/Documented Filipino Migrant Workers under the Migrant Workers and
A: Any person, partnership, or corporation with no valid license to engage in recruitment and Filipino Act of 1995, as amended?
placement of overseas Filipino workers or whose license is revoked, cancelled, terminated, expired A: (1) Those who possess valid passports and appropriate visas or permits to stay and work in the
or otherwise delisted from the roll of licensed recruitment/manning agencies registered with POEA.  receiving country; and (2) Those whose contracts of employment have been processed by the POEA,
or subsequently verified and registered on-site by the POLO, if required by law or regulation.
Q: Who are Overseas Filipinos under the Migrant Workers and Filipino Act of 1995, as amended?
A: Those migrant workers, other Filipno nationals and their dependents abroad Q: Who is a Seafarer under the Migrant Workers and Filipino Act of 1995, as amended?
A: Any person who is employed or engaged in overseas employment in any capacity on board a ship
Q: Who is an Overseas Filipino in distress under the Migrant Workers and Filipino Act of 1995, as other than a government ship used for military or non commercial purposes. 
amended? They include fishermen, cruise ship personnel and those serving on mobile offshore and drilling units
A: An Overseas Filipino who has a medical, psycho-social or legal assistance problem requiring in the high seas.
treatment, hospitalization, counseling, legal representation as specified in Rule IX of these Rules or
any other kind of intervention with the authorities in the country where he or she is found.  Q: Who are Skilled Filipino Workers under the Migrant Workers and Filipino Act of 1995, as
amended?
Q: Who is an Overseas Filipino or Migrant Worker under the Migrant Workers and Filipino Act of A: They refer to those who have obtained an academic degree, qualification, or experience, or those
1995, as amended? who are in possession of an appropriate level of competence, training and certification, for the job
A: Any person who is to be engaged, is engaged, or has been engaged in a remunerated activity in a they are applying, as may be determined by the appropriate government agency. 
state of which he or she is not a citizen or on board a vessel navigating the foreign eas other than a
government ship used for military or non-commercial purposes, or on an installation located Q: Who are Underage Migrant Workers under the Migrant Workers and Filipino Act of 1995, as
offshore or on the high seas.  amended?
A: Those who are below 18 years or below the minimum age requirement for overseas employment
Q: Who is “a person to be engaged in a remunerated activity”?  as determined by the Secretary of Labor and Employment.
A:   An applicant worker who has been promised or assured employment overseas
Q: How does Authority and License differ under the Labor Code?
Q: What are Placement Fees as defined under the Migrant Workers and Filipino Act of 1995, as A: Both License and Authority are documents issued by the Department of Labor authorizing a
amended? person or entity or association, the difference lies in their purpose. License is an authority to operate
a private employment agency while Authority is an authority to engage in recruitment and (d) To require any person, establishment, organization or institution to submit such employment
placement activities as a private recruitment agency. information as may be prescribed by the Secretary of Labor.

  Article 15 - BUREAU OF EMPLOYMENT SERVICES

Q: How does Authority and License differ under the Migrant Workers and Overseas Filipino Act of
1995, as amended by RA No. 10022? Q: Does the Bureau of Employment Services still exist?
A: Authority and License under the said law are both documents issued by the Department of Labor A: No. E.O. No. 797n abolished the Bureau of Employment Services. It created the Bureau of Local
and Employment.   Employment. 
Authority authorizes the officers, personnel, agents or representatives of a licensed
recruitment/manning agency to conduct recruitment and placement activities in a place state in the Q: What are the mandates and functions of the Bureau of Local Employment?
license or in a specified place. A: The Bureau shall:
License, on the other hand, authorizes a person, partnership or corporation to operate a private 0. Formulate policies, standards and procedures on productive manpower resources,
recruitment/manning agency. development, utilization and allocation;
A licensed recruitment/manning agency is required to obtain an authority for its officers, personnel, a. Establish and administer a machinery for the effective allocation of manpower resources
agents, or representatives to conduct recruitment and placement activities in a place stated in the for maximum employment and placement;
license or in a specified place and a license to operate a private recruitment/manning agency. b. Develop and maintain a responsive vocational guidance and testing system in aid of
  proper human resources allocation;
Q: What are the distinctions between private fee-charging employment agency and private c. Regulate and supervise a private sector participation in the recruitment and placement of
recruitment agency under the Labor Code? workers locally under such rules and regulations as may be issued by the Secretary;
A: Private fee-charging employment agency means any person or entity engaged in recruitment and d. Establish and maintain a registration or work permit system to regulate employment of
placement of workers for a fee which is charged directly or indirectly from the workers or employers aliens;
or both. The authority of this kind of employment agency to recruit and place workers is derived e. Develop and maintain a labor market information system in aid of proper manpower and
from a document known as the license. Private fee-charging employment agency is engaged in development planning;
overseas recruitment. f. Formulate employment programs designed to benefit disadvantaged groups and
Private recruitment entity means any person or association engaged in the recruitment and communities and;
placement of workers, locally or overseas, without charging, directly or indirectly any fee from the g. Perform other functions as may be provided by law.
workers or employees. This type of employment agency’s authority to recruit and place workers is  
derived from a document known as the authority. Privat recruitment agency is engaged in the Q: Which agency assumed the overseas functions of the  Bureau of Employment Services?
recruitment and placement of workers locally or overseas. A: The Philippine Overseas Employment Administration assumed the overseas function for overseas
  employment of the BES

Article 14 - EMPLOYMENT PROMOTION ART. 16. - Private Recruitment

 
Q: What are the powers and authority of the Secretary of Labor? Q: Who are persons or entities engaged in the recruitment and placement of workers?
A:  A: General rule, no person or entity shall engage in the recruitment and placement of workers
(a) To organize and establish new employment offices in addition to existing employment offices except the following:
under the Department of Labor as the need arises; 0. Public employment offices;
(b) To organize and establish nationwide job clearance and information system to inform applicants a. (repealed)
registering with a particular employment office of job opportunities in other parts of the country as b. POEA (E.O. 797);
well as job opportunities abroad; c. Private recruitment offices;
(c) To develop and organize a program that will facilitate, occupational, industrial and geographical d. Private employment agencies;
mobility of labor and provide assistance in the relocation of workers from one area to another; and e. Shipping or manning agents or representatives; and
f. Such other persons or entities as may be authorized by the Secretary. 
 c. National Seamen Board
Q: Who are the public employment offices that can engage in recruitment and placement of d. Overseas Employment Development Board
workers? e. Population/ Family Planning Office
A: These public employment offices are the following:
0. Bureau of Local Employment (BLE); Q: The EO 797 abolished the existence of the Overseas Employment Development Board, what
a. Public Employment Service Office (PESO); and then was established to assumed the functions of those under its scope?
b. The Philippine Overseas Employment Agency (POEA). A: Section 4 of the EO 797 provided for the creation of Philippine Overseas Employment
Administration (POEA). It assumed the functions of the Overseas Employment Development Board,
Q: Enumerate those private sector who participate in the recruitment and placement activities. the National Seamen Board, and the overseas employment functions of the Bureau of Employment
A: Article 25 of the Labor Code authorized such activities and they are the following: Services. 
0. Private employment agency;
a. Filipino Service Contractor, Manning Agency, Principal, and Private Recruitment/ Q: What are powers and functions of the Philippine Overseas Employment Administration (POEA)?
Employment Agency: A: Section 3 of EO No. 247 provides the following powers and functions of the POEA
b. Principal, License Manning Agency: and 0. Regulate private sector participation in the recruitment and overseas placement of
c. Foreign Placement Agency of FPA, Foreign Service Contractor/ Staffing Agency, Licensed workers by setting up a licensing and registration system; 
Recruitment Agency and Principal. a. Formulate and implement, in coordination with appropriate entities concerned, when
necessary, a system for promoting and monitoring the overseas employment of Filipino
Art. 17 - Overseas Employment Development Board workers taking into consideration their welfare and domestic manpower requirements;
Q: What are the laws relevant to overseas employment? b. Protect the rights of Filipino workers for overseas employment to fair and equitable
A:  recruitment and employment practices to ensure their welfare;
0. The Labor Code; and c. Exercise original and exclusive jurisdiction to hear and decide all claims arising out of an
a. Migrant Workers and Overseas Filipinos Act of 1995 [R.A. No. 8042], as amended by R.A. employer-employee relationship or by virtue of any law or contract involving Filipino
No. 10022. workers for overseas employment including the disciplinary case; and all pre-employment
cases which are administrative in character involving or arising out of violation of
Q: What are the power and duty of the Overseas and Employment Development Board (OEDB)? requirement laws, rules and regulation including money claims arising therefrom, or
A:  According to Article 17 of the Labor Code, the following are the power and duty of the Overseas violation of the conditions for issuance of license or authority to recruit workers. All
and Employment Development Board (OEMB):  prohibited recruitment activities and practices which are penal in character as
1. To promote the overseas employment of Filipino workers thorough comprehensive enumerated and defined under and by virtue of existing laws, shall be prosecuted in
market promotion and development program;  regular courts in close coordination with the appropriate Departments and agencies
2. To secure the best possible terms and conditions of employment of Filipino contract concerned; 
workers on a government-to-government basis and to ensure compliance therewith;  d. Maintain a registry of skills for overseas placement;
3. To recruit and place workers for overseas employment on  government-to-government e. Recruit and place workers to service the requirements for trained and competent Filipino
arrangement and in such other sectors as policy may dictate; and workers by foreign governments and their instrumentalities and such other employers as
4. To act as secretariat for the Board of Trustees of the  Welfare and Training Fund for public interest may require;
Overseas Workers.  f. Promote the development of skills and careful selection of Filipino workers;
g. Undertake overseas market development activities for placement of Filipino workers;
Q: What are the agencies abolished when the EO 797  (Reorganizing the Ministry of Labor and h. Secure the best terms and conditions of employment of Filipino contract workers and
Employment, Creating Philippine Overseas Employment Administration, and For Other Purposes? ensure compliance therewith;
A: According to Section 10 of EO 797, the following agencies are abolished however, their personnel i. Promote and protect the well-being of Filipino workers overseas; 
will be transferred to the appropriate units of Department of Labor and Employment (DOLE): j. Develop and implement programs for the effective monitoring of returning contract
0. Bureau of Employment Services workers, promoting their re-training and re-employment or their smooth re-integration
a. Bureau of Apprenticeship into the mainstream of national economy in coordination with other government
b. Free Legal Assistance Office agencies;
 k. Institute a system for ensuring fair and speedy disposition of cases involving violation or 1. Those involving or arising out of violations of Rules and Regulations relating to licensing
recruitment rules and regulations as well as violation of terms and conditions of overseas and registration, including refund of fees collected from workers; or 
employment; 2. Those violation of the conditions for issuance of license or authority to recruit workers.
l. Establish a system for speedy and efficient enforcement of decisions laid down through (Sec. 6, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and
the exercise of its adjudicatory function; Overseas Filipinos Act of 1995, as amended by RA No. 10022)
m. Establish and maintain close relationship and enter into joint projects with the 3. The disciplinary action cases and other special cases, which are administrative in
Department of Foreign Affairs, Philippine Tourism Authority, Manila International Airport character, are those involving:
Authority, Department of Justice, Department of Budget and Management and other 0. Employers;
relevant government entities, in the pursuit of its objectives. The Administration shall also a. Principals;
establish and maintain joint projects with private organizations, domestic or foreign, in the b. Contracting partners; and
furtherance of its objectives. c. OFWs processed by the POEA
(Sec. 6, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Q: Provide the limitation which the POEA can only engage in recruitment and placement of Filipinos Act of 1995, as amended by RA No. 10022)
overseas workers.
A: The POEA may only engage in recruitment and placement of overseas workers on a government- Q: Where can you file a complaint on the cases where POEA has jurisdiction over?
to-government arrangement. A: Pre-employment/recruitment violation cases may be filed with the POEA Adjudication Office or at
As provided in the Section 23, par. b.1, RA 8042 as amended by RA 10022, the Administration shall any DOLE/POEA regional office of the place where the complaint applied or was recruited, at the
deploy only to countries where the Philippines has conclude bilateral labor agreements or option of the complainant. The office where the complaint was first filed shall take cognizance of the
arrangements: Provided, That such countries shall guarantee to protect the rights of Filipino migrant case. 
workers; and Provided, further, That such countries shall observe and/or comply with the
international laws and standard for migrant workers. Disciplinary action cases and other special cases shall be filed with the POEA Adjudication Office.
(Sec. 7, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Q: What are additional powers and functions of the POEA to secure and preserve the rights of Filipinos Act of 1995, as amended by RA No. 10022)
migrant workers?
A: 1. The Administration shall inform migrant workers not only of their rights as workers but also of Q: Who may file a complaint on violations of POEA Rules and Regulations and Labor Code and
their rights as human beings, instruct and guide the workers how to assert their rights as human other issuances?
beings and provide the available mechanism to redress violation of their rights. A: Any aggrieved person may file a complaint in writing and under oath for violation of the Labor
2. Be responsible for the implementation, in partnership with other law-enforcement agencies, of an Code and POEA Rules and Regulations and other issuances.
intensified program against illegal recruitment activities. 
However, the Administration, on its own initiative, may conduct proceedings based on reports of
Q: What cases can POEA exercise exclusive and original jurisdiction? violations or any of the grounds for disciplinary actions provided in the POEA Rules and Regulations
A: The POEA shall exercise original and exclusive jurisdiction to hear and decide: and other issuances on overseas employment, subject to preliminary evaluation. 
0. All pre-employment/recruitment violation cases which are administrative in character, (Sec. 8, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
involving or arising out of violations of Rules and Regulations relating to licensing and Filipinos Act of 1995, as amended by RA No. 10022)
registration, including refund of fees collected from the workers or violation of the
conditions for issuance of license or authority to recruit workers; and 
a. Disciplinary action cases and other special cases, which are administrative in character,
involving employers, principals, contracting partners and OFWs processed by the POEA.  Prescription Period
(Section 6, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas
Filipinos Act of 1995, as amended by RA No. 10022) The violation and disciplinary action cases shall be barred if not commenced or filed with the POEA
within three (3) years after such cause of action accrued. (Sec. 9, Rule X, Omnibus Rules and
Q: What are the administrative aspect of recruitment violation cases: Regulations Implementing The Migrant Workers and Overseas Filipinos Act of 1995, as amended by
A: The administrative aspect of recruitment violation cases are the following: RA No. 10022)
 Q: Who are exempted from the ban on direct-hiring under the Revised POEA Rules and
Q: What are the penalties that may be imposed by the POEA on erring private recruitment sector Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workers
and/or employers and/or workers? of 2016?
A: For pre-employment/ recruitment violation cases, the Administrator, in the exercise of A: (a) Members of the diplomatic corps
adjudicatory power, may impose the penalty of reprimand, suspension, or cancellation or revocation     (b) International organizations
of license. Where the penalty of suspension is imposed, the Administrator shall, in appropriate cases,     (c)Heads of state and government officials with the rank of at least deputy minister or
allow the lifting of suspension of erring recruitment/manning agencies upon the payment of Fifty     (d) Other employers as may be allowed by the Secretary of Labor and Employment. 
Thousand Pesos (P50,000.00) for every month of suspension. 
Article 19- Office of Emigrant Affairs
For disciplinary action cases against employers, the Administrator may impose disqualification from
the overseas employment program.  Q: Does the Office of Emigrant Affairs in the Ministry of Labor and Employment still exist?
A: No. Batas Pambansa Blg. 79 abolished the Office of Emigrant Affairs by creating the Commission
For disciplinary action cases against workers, the Administrator may likewise impose suspension or on Filipinos Overseas and For Other Purposes.
disqualification.
(Sec. 10, Rule X, Omnibus Rules and Regulations Implementing The Migrant Workers and Overseas Q: What are the pertinent functions transferred to the Commission on Filipino Overseas?
Filipinos Act of 1995, as amended by RA No. 10022) A: The pertinent functions transferred to the Commission on Filipino Overseas include applicable
funds, records, property and equipment and the necessary personnel  that have been allotted as
Article 18 - Ban on Direct-Hiring assigned to the Office of Emigrant Affairs from the Ministry of Labor and Employment (now DOLE).

Q: Is the direct-hiring of Overseas Filipino Workers (OFWs) allowed? Q: What is the composition of the Commission on Filipino Overseas?
A: As a general rule, direct-hiring of Overseas Filipino Workers is not allowed. Pursuant to Article 18 A: Section 1 of Batas Pambansa Blg. 79 provides that  a Commission on Filipinos Overseas, referred
of the Labor Code, no employer may hire a Filipino worker for overseas employment except through to as the Commission, created under the Office of the President shall be composed of five (5)
the Boards and entities authorized by the Secretary of Labor. The reason for the ban is that, a members to be appointed by the President (Prime Minister) of the Philippines, one of whom shall be
Filipino worker hired directly by a foreign employer without government intervention, may not be the Minister of Foreign Affairs, as ex-officio member: Provided, That the President (Prime Minister)
assured of the best possible terms and conditions of employment. As the Filipino worker may be may appoint other ministries as ex-officio members: Provided, further, That in the absence of any ex-
over-eager to find employment abroad, government intervention is necessary to protect him from officio member, said member may designate his deputy to act in his stead. The President
exploitation by foreign employers.  (PrimeMinister) shall designate the chairman and the vice-chairman of the Commission from among
its members.
Q: Who are the direct hires under the Omnibus Rules of R.A. 8042, as amended by R.A. 10022 
Q:  What are the powers and functions of the Commission on Filipino Overseas?
Direct Hires are workers directly hired by employers for overseas employment as authorized by the A:  a. Provide advice and assistance to the President (Prime Minister) of the Philippines and the
Secretary of Labor and Employment and processed by the Philippine Overseas Employment Agency Batasang Pambansa in the formulation of policies and measures affecting Filipinos overseas; 
(POEA), including: 
b. Formulate, in coordination with agencies concerned, an integrated program for the promotion of
1. Those hired by international organizations the welfare of Filipinos overseas for implementation by suitable existing agencies; 
2. Those hired members of the diplomatic corps
3. Name hires or workers who are able to secure overseas employment opportunities with c. Coordinate and monitor the implementation of such an integrated program; 
an employer without the assistance of participation of any agency. [Labor Code, POEA
Rules] (Section 1(i), Rule II, Omnibus Rules and Regulations Implementing The Migrant d. Initiate and directly undertake the implementation of special projects and programs, whenever
Workers and Overseas Filipinos Act of 1995, as amended by Republic Act No. 10022) necessary, to promote the welfare of Filipinos overseas with respect to their interests and activities
in the Philippines; 
Note: The direct hires are exceptions to the ban on direct-hiring under Article 18 of the Labor Code. 
e. Serve as a forum for preserving and enhancing the social, economic and cultural ties of Filipinos with the duration of nine months. The contract was approved by the Philippine Overseas
overseas with their motherland;  Employment Administration (POE). Petitioner was to be deployed on board the "MSV Seaspread"
which was scheduled to leave the port of Manila Canada on February 13, 1998. On February 9, 1998,
f. Provide liaison services to Filipinos overseas with appropriate government and private agencies in petitioner was  told that he would not be leaving for Canada anymore, but he was reassured that he
the transaction of business and similar ventures in the Philippines;  might be considered for deployment at some future date.

g. Promulgate rules and regulations to carry out the objectives of this Act;  Petitioner filed a complaint for illegal dismissal, damages, and attorney's fees against the
respondent.
h. Call upon any agency of the Government, including government-owned or controlled
corporations, to render whatever assistance is needed in the pursuance of the objectives of this Act; Ruling: The Supreme Court distinguished the perfection of the employment contract and the
and  commencement of the employer-employee relationship. The perfection of the contract, (which in
this case coincided with the date of execution), occurred when the petitioner and respondent agreed
i. Perform such other related functions as may be directed by the President (Prime Minister) or on the object and the cause, and terms and conditions therein. The commencement of the
assigned by law. employer-employee relationship, would have taken place had petitioner been actually deployed
from the point of hire. Even before the start of any employer-employee relationship,
 Article 20- National Seamen Board contemporaneous with the perfection of the employment contract was the birth of certain rights
and obligations, the breach of which may give rise to a cause of action against erring party. Thus, if
Q: Does the National Seamen Board still exist? the reverse had happened, that is the seafarer failed or refused to be deployed as agreed upon he
A: No. Executive Order 797abolished the National Seamen Board abolished the National Seamen would be liable for damages.
Board by creating the Philippine Overseas Employment Association that assumed the functions of
the Overseas Employment Development Board, the National Seamen Board and the overseas Despite the absence of an employer-employee relationship between petitioner and respondent, the
employment functions of the Bureau of Employment Services. Court rules the NLRC has jurisdiction over petitioner’s complaint. The jurisdiction of labor arbiters is
not limited to claims arising from employer-employee relationships. Section 10 of R.A. No. 8042
Q: What are the other entities abolished by E.O No. 97? (Migrant Workers Act), provides that:
A:  (1) Bureau of Employment Services
(2) Bureau of Apprenticeship Sec. 10. Money Claims. – Notwithstanding any provision of law to the contrary, the Labor Arbiters of
(3) Free Legal Assistance Office tNational Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to
(4) National Seamen Board hear and decide, within ninety (90) calendar days after the filing of the complaint, the claims arising
(5) Overseas Employment Development Board out of an employer employee relationship or by virtue of any law or contract involving Filipino
(6) Population/ Family Planning Office workers for overseas deployment including claims for actual, moral, exemplary and other forms of
damages. x x x [Emphasis supplied]
Q: What are the prevailing laws regarding Article 20(3B)?
A: Republic Act No. 8042  as amended by Republic Act No. 10022 repealed Article 30 (3B). Labor Since the present petition involves the employment contract entered into by petitioner for overseas
Arbiters of the National Labor Relations Commissions have jurisdiction over claims (1) arising out of employment, claims are cognizable by the labor arbiters of the NLRC.
an employer-employee relationship or (2) by virtue of any law or contract involving Filipino workers Article 28- Capitalization
for overseas deployment (3) including claims for actual, moral, exemplary and other forms of Q: Art. 28. Capitalization
damages. A: All applicants for authority to hire or renewal of license to recruit are required to have such
substantial capitalization as determined by the Secretary of Labor.
The Supreme Court sustained the jurisdiction of NLRC despite the absence of employee-employer
relationship in Santiago v. CF Sharp Crew Management Inc., G.R No. 162419, July 10, 2007. Q: Who may participate?
A: Any Filipino citizen acting as a sole proprietor or a partnership, or a corporation.
Facts: Paul V. Santiago had been working as a seafarer for Smith Bell Management, Inc. for about
five years. On 3 February 1998, petitioner signed a new contract of employment with respondent, Q: Required Capitalization?
A: At least 75% of the authorized and voting capital stock of which is owned and controlled by Q: How much is the required amount of bank deposit for proof of financial capacity in the
Filipino citizens, may engage in the business of recruitment and placement of Filipino workers. application for license for overseas recruitment and placement of landbased and seafarer overseas
SOLE PROPRIETOR AND PARTNERSHIP SHALL HAVE 5 MILLION PESOS MINIMUM CAPITALIZATION IN filipino workers?
CASE OF CORPORATION A MINIMUM PAID UP CAPITAL OF 5 MILLION PESOS A: At least Five Million Pesos (P5,000,000) (Section 4, Rule II, Part II, Revised POEA Rules and
Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workerd of
Q: Requirement on increasing of capitalization or paid-up capital 2016)
A: Those with existing licenses shall, within 4 years from effectivity can increase their capitalization
or paid up capital  to 5 million pesos at the rate of 750,000.00 every year. Q: How much is the filing fee fee to be paid for the application of license and is it refundable?
A: The required payment is a non-refundable filing fee of Twenty Five Thousand Pesos (Php25,000).
Q: Prohibition on non-Filipino Citizen to head/manage a licensed agency (Section 5, Rule II, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
A: Section 143 I(K), Rule 3, Part VI, of the Revised POEA Rules and Regulations Governing the Employment of Landbased Overseas Filipino Workers of 2016)
Recruitment and Employment of Land based Overseas Filipino Worker of 2016
Q: What is the purpose of an escrow deposit?
Allowing a non-Filipino citizen to head or manage, directly or indirectly, a licensed recruitment A: It shall answer for all valid and legal claims arising from contracts of employment and violations of
agency. For this purpose, “heading or managing” a licensed recruitment agency shall refer to: the conditions for the grant and use of the license, including fines imposed by the Administration.
1. controlling and supervising the operations of the licensed recruitment agency or any And shall likewise guarantee compliance with prescribed recruitment procedures, rules and
branch thereof; or regulations, appropriate terms and conditions of employment and relevant issuances of DOLE.
2. exercising the authority to hire or fire employees and to lay down and execute (Section 9, Rule II, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
management policies of the licensed recruitment agency or branch thereof. Employment of Landbased Overseas Filipino Workers of 2016)
Penalty: Cancellation of License
Section 123 A (8) of the Revised POEA Rules and Regulations Governing the Recruitment and Q: How long is the validity of a provisional license?
Employment of Seafarers A: It shall be valid within a non-extendible period of two (2) years from date of issuance. (Section II,
8. Allowing a non-Filipino citizen to head or manage a licensed manning agency. Rule II, Part II, Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Penalty: Cancellation of License Land based Overseas Filipino Workers of 2016)
Qualification for local recruitment and placement
 A:  The applicant for a license to operate a private employment agency must possess the following: Q: When can you apply for a renewal of license for local recruitment and placement?
a.) Filipino citizens for single proprietorship and 75% of the authorized capital stock is A: It must be filed not earlier than sixty (60) days but not later than thirty (30) days before its
owned and controlled by Filipino citizens for partnership and corporation. expiration. (Section 13, Revised Rules and Regulations Governing Recruitment and Placement for
b.) Minimum net worth of 1million in case of single proprietorship and a minimum paid up Local Employment [Department Order No. 141-14 Series of 2014] issued on November 20, 2014
capital of 1million in case of partnership and corporation; and
c.) Not otherwise disqualified by law or other government rules and regulations to engage 1998 Bar Question: A recruitment and placement agency declared voluntary bankruptcy. Among
in the business of recruitment and placement of workers for local employment. its assets is its license to engage in business. Is the license of the bankrupt agency an asset which
can be sold in public auction by the liquidator?
2002 BAR Q: Is a corporation, seventy percent (70%) of the authorized and voting capital of which A: No. The license is personal to the business. As stated in Article 29, no license shall be transferred,
is owned and controlled by Filipino citizens, allowed to engage in the recruitment and placement conveyed or assigned to any other person or entity. Any transfer of ownership must apply for a new
of workers, locally or overseas? Explain briefly. license.
A: No. A corporation, seventy percent (70%) of the authorized and voting capital stock of which is
owned and controlled by Filipino citizens cannot be permitted to participate in the recruitment and Article 30. Registration fees
placement of workers, locally or overseas, because Art 27 of the Labor Code requires at least seventy
five percent. Q: Art. 30. Registration fees
A: The Secretary of Labor shall promulgate a schedule of fees for the registration of all applicants for
Article 29. Non-transferability of license or authority license or authority.
Article 31. Bonds e. Notarized Board Resolution/Partnership Resolution duly received by the SEC on the
decision to withdraw escrow deposit, indicating the name of the person to process and
Q: Art. 31. Bonds receive the check representing the escrow deposit;
A: All applicants for license or authority shall post such cash and surety bonds as determined by the f. Surety bond equivalent to the amount of the escrow deposit valid for four (4) years from
Secretary of Labor to guarantee compliance with prescribed recruitment procedures, rules and expiration of the license, if applicable.
regulations, and terms and conditions of employment as may be appropriate. 2.) The deposit in escrow of a licensed manning agency that voluntarily surrenders its license or has
not renewed its license shall be released upon submission of the following:
Q: Maintenance of Escrow Deposit a. Copy of the duly executed/signed escrow agreement;
A: A licensed recruitment agency shall maintain at all times its escrow deposit in the minimum b. Bank certification of the status of escrow deposit;
amount of One Million Pesos (PhP1,000,000.00). In case the licensed recruitment agency is required c. Certificate of No Pending Case from the NLRC;
an additional escrow pursuant to Section 15, it shall maintain the escrow deposit of One Million d. Clearance from the POEA Adjudication Office;
Pesos (PhP1,000,000.00) plus the additional escrow. e. Decision to withdraw the escrow deposit through written notice of the Single Proprietor
duly received by the DTI or notarized Partnership or Board Resolution duly received by the
Q: What is the purpose of bonds and escrow? SEC, indicating the name of the person to process and receive the check representing the
A: The escrow deposit shall answer for all valid and legal claims arising from contracts of escrow deposit;
employment and violations of the conditions for the grant and use of the license, including fines f. Surety bond equivalent to the amount of the escrow deposit valid for four (4) years from
imposed by the Administration. The escrow shall likewise guarantee compliance with prescribed expiration of the license, if applicable.
recruitment procedures, rules and regulations, appropriate terms and conditions of employment,
and relevant issuances of the DOLE. The escrow deposit shall not be sourced from the capitalization Q: What is the purpose of cash and surety bond as distinguished from appeal bond?
requirement. A: The Supreme Court explained it in this manner:
The POEA Rules are clear. A reading thereof readily shows that in addition to the cash and surety
Q: What is the effect of escrow deposit as garnished? bonds and the escrow money, an appeal bond in an amount equivalent to the monetary award is
A:    1.) In case the escrow deposit has been garnished, the licensed recruitment agency shall required to perfect an appeal from a decision of the POEA. Obviously, the appeal bond is intended to
replenish the escrow deposit within fifteen (15) days from receipt of the Notice to Replenish Escrow further insure the payment of the monetary award in favor of the employee if it is eventually
Deposit. Failure to comply with such notice will result in the suspension of the license of the affirmed on appeal to the NLRC.
recruitment agency. Within the same fifteen (15) day period, the licensed recruitment agency may It is true that the cash and surety bonds and the money placed in escrow are supposed to guarantee
explain why it should not be suspended for such failure to comply. The Administration shall ensure the payment of all valid and legal claims against the employer, but these claims are not limited to
compliance with the increased escrow deposit as provided in this Rule. monetary awards to employees whose contracts of employment have been violated. The POEA can
  2.) In case the escrow deposit has been garnished, the Administration shall serve the go against these bonds also for violations by the recruiter of the conditions of its license, the
licensed manning agency a Notice to Replenish its Escrow Deposit within fifteen (15) days from provisions of the Labor Code and its implementing rules, E.O. 247 (reorganizing POEA) and the
receipt thereof. Failure to comply with such notice will result in the suspension of the license of the POEA Rules, as well as the settlement of other liabilities the recruiter may incur.
manning agency. Within the same fifteen (15) day period, the licensed manning agency shall explain As for the escrow agreement, it was presumably intended to provide for a standing fund, as it were,
why it should not be suspended for such failure to comply. to be used only as a last resort and not to be reduced with the enforcement against it of every claim
of recruited workers that may be adjudged against the employer. This amount may not even be
Q: Release of Deposit in Escrow enough to cover such claims and, even if it could initially, may eventually be exhausted after
A:    1.) The deposit in escrow of a licensed recruitment agency that voluntarily surrenders its satisfying other subsequent claims.
license or has not renewed its license shall be released upon submission of the following:
a. Copy of the duly executed/signed escrow agreement; Q: Posting of bonds and payment of license fee
b. Bank certification on the status of escrow deposit; A: Upon approval of application, the applicant shall pay a license fee of P15,000.00. It shall also post
c. Certificate of No Pending Case from the NLRC; a cash bond in the amount of P50,000.00 and surety bond in the sum of P100,000.00.
d. Clearance from the Adjudication Office; Q: What is the purpose of the bond?
A: The bond shall answer for all valid and legal claims arising from the use of license. It shall likewise A: The licensed recruitment agency shall be responsible for the payment of the premium for the
guarantee compliance with the provisions of the Labor Code, its implementing riles and relevant compulsory insurance coverage under Section 37- A of RA 8042, as amended. (Section 52, Rule V,
issuances of the Department on recruitment and placement. Part II, Revised POEA Rules and Regulations Governing the Recruitment and Employment of
Landbased Overseas Filipino Workers of 2016)
Article 32. Fees to be paid by workers Q: Costs and Fees Chargeable Against the Principal/Employer
Q: Fees to be paid by workers A: The costs of recruitment and placement shall be the responsibility of principal/employer, which
A: Any person applying with a private fee-charging employment agency for employment assistance cover payment for the following:
shall not be charged any fee until he has obtained employment through its efforts or has actually a. Visa, including the stamping fee;
commenced employment. Such fee shall be always covered with the appropriate receipt clearly b. Work permit and residence permit;
showing the amount paid. The Secretary of Labor shall promulgate a schedule of allowable fees. c. Round trip airfare;
(Article 32 of the Labor Code) d. Transportation from the airport to the jobsite;
e. POEA processing fee;
Q: Fees, and Costs Chargeable to the Landbased Overseas Filipino Workers f. OWWA membership fee; and
A: The Overseas Filipino Worker shall pay the following fees and costs: g. Additional trade test/assessment, if required by the principal/employer.
a. Documentation costs: (Section 53, Rule V, Part II, Revised POEA Rules and Regulations Governing the Recruitment and
1. Passport; Employment of Landbased Overseas Filipino Workers of 2016)
2. NBI/Police/Barangay Clearance;
3. NSO authenticated birth certificate; Q:  Prohibition Against Charging of Other Fees
4. Transcript of Records and diploma issued by the school, certified by the CHED and A: No other charges in whatever amount, form, manner or purpose shall be charged against the
authenticated by the DFA; Overseas Filipino Worker, except those specified in this Rule. (Section 54, Rule V, Part II, Revised
5. Professional license issued by the PRC, authenticated by the DFA; POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Overseas
6. Certificate of Competency issued by TESDA or other competent certifying body for the Filipino Workers of 2016)
job applied for; and
7. DOH prescribed medical/health examination, based on the host country medical Q: Service Fees
protocol. A: Licensed recruitment agencies shall charge principals/employers service fees commensurate to
b. Membership with Philhealth, Pag-Ibig and the Social Security System. the fair market value of their services. (Section 55, Rule V, Part II, Revised POEA Rules and
(Section 50, Rule V, Part II, Revised POEA Rules and Regulations Governing the Recruitment and Regulations Governing the Recruitment and Employment of Landbased Overseas Filipino Workers of
Employment of Landbased Overseas Filipino Workers of 2016) 2016)

Q: Placement fees and Exception Q: Fees Chargeable to Principal/ Employer of a Seafarer OWF
A: A placement fee may be charged against the Overseas Filipino Worker equivalent to one (1) A: a.)Manning Fees
month basic salary specified in the POEA approved contract, except for the following:           -  Processing Fees
a. Domestic workers; and However, in case of seafarer’s failure or unjustified refusal to join the ship after all processing fees
b. Workers to be deployed to countries where the prevailing system, either by law, policy have been incurred by the principal/ employer, the said fees shall be refunded by the seafarer within
or practice do not allow, directly or indirectly, the charging and collection of 30days from demand.
recruitment/placement fee. Q: Cost Chargeable to the Seafarer
The worker shall pay the placement fee to the licensed recruitment agency only after signing the A: Documentation cost of all statutory requirements such as, but not limited to passport, seafarer’s
POEAapproved contract. The agency must issue a BIR-registered receipt stating the date of payment identification and record book (SIRB), NBI/ police/ barangay clearance, Seafarer’s Registration
and the exact amount paid. (Section 51, Rule V, Part II, Revised POEA Rules and Regulations Certificate (SRC) and birth certificate. (Section 50, Rule V, Part II, Revised POEA Rules and Regulations
Governing the Recruitment and Employment of Landbased Overseas Filipino Workers of 2016) Governing the Recruitment and Employment of Seafarers)

Q: Payment Insurance Premium Q: Prohibition on charging and collecting of other fees

A: No other charges in whatever form, manner or purpose, shall be imposed on and be paid by the Answer: No fees whatsoever shall be collected neither deducted from salaries or wages of the
seafarer, unless otherwise provided by law. (Section 52, Rule V, Part II, Revised POEA Rules and workers. An agency may charge the following:
Regulations Governing the Recruitment and Employment of Seafarers) a.) Service Fee
b.) Transportation Expenses
Q: Exemption from travel tax documentary stamp and airways fee
A: All laws contrary notwithstanding, the migrant workers shall be exempt from the payment of
travel tax and airport-fee upon proper showing of proof entitlement by the POEA. (Section 35, Q: Insurance of official receipt
Republic Act 8042, as amended by RA 10022) A: All payments or fees made to or collected by an agency shall be evidenced by an official receipt
indicating the amount paid and the purpose of such payment. (Section 36, Revised Rules and
Q: Non-increase of fees; abolition of repatriation bond Regulations Governing Recruitment and Placement for Local Employment)
A: Upon approval of this act, all fees being charged by any government office on migrant workers
shall remain at their present levels and the repartition bond shall be abolished. (Section 36, RA 8042) Q: Replacement of workers without cost
A: An employer shall be entitled to a replacement of a worker without additional cost or a refund
of 75% of the service fee and transportation expenses subject to the following conditions:
Q: Government fees, administrative costs and taxes a. If the worker is certified by a competent/government physician to be suffering from a medical
A: All fees for services being charged by any government agency on migrant workers prevailing at the or mental illness within one (1) month from the first day of work rendering him incapable of
time of the effectivity of this Rule shall not be increased. All other services rendered by the DOLE and discharging the minimum requirements of the job; or
other government agencies in connection with the recruitment and placement of and assistance to b. If the worker abandons the job, voluntarily resigns, commits theft or any other acts prejudicial
migrant workers shall be rendered free. The administrative cost thereof shall not be borne by the to the employer or his family within three (3) months from the first day of his work.
worker. If the request for a preplacement is beyond the abovementioned periods, the employer shall pay
The migrant worker shall be exempt from the payment of travel tax and airport fee upon proper an additional service fee as agreed by both parties. (Section 37, Revised Rules and Regulations
showing of the Overseas Employment Certificate (OEC) issued by the POEA. The remittances of all Governing Recruitment and Placement for Local Employment)
OFWs, upon showing of the OEC or valid OWWA Membership Certificate by the OFW beneficiary or
recipient, shall be exempt from the payment of documentary stamp tax (DST) as imposed under Q: Refund of service fee
Section 181 of the National Internal Revenue Code, as amended. A: The employer is entitled to a refund of seventy five (75%) percent of the service fee if the
In addition to the original copy, a duplicate copy or a certified true copy of the valid proof of agency failed to provide a replacement of worker based on any grounds enumerated in the
entitlement referred to above shall be secured by the OFW from the POEA or OWWA, which shall be preceding section after the lapse of one (1) month from receipt of the request unless the parties
held and used by his/her beneficiary in the availment of the DST exemption. agreed on a longer period. (Section 38, Revised Rules and Regulations Governing Recruitment and
In case of OFWs whose remittances are sent through the banking system, credited to beneficiaries or Placement for Local Employment)
recipient’s account in the Philippines and withdrawn through an automatic teller machine (ATM), it
shall be the responsibility of the OFW to show the valid proof of entitlement when making Q: Forfeiture or rights
arrangement for his/her remittance transfers. A: The employer is deemed to have forfeited his right for a replacement of the worker without
A proof of entitlement that is no longer valid shall not entitle an OFW to DST payment exemption. cost or a refund of the service fee, if he failed to avail of the same within thirty (30) days after the
The Bureau of Internal Revenue (BIR), under the Department of Finance, may promulgate revenue lapse of one (1) month or three (3) months as the case may be, as provided in Section 37 unless
regulations deemed necessary and appropriate for the effective implementation of the exemption of otherwise agreed by the parties. (Section 39, Revised Rules and Regulations Governing
OFWs from DST and travel tax. (Section 4, Rule XVII, Omnibus Rule and Regulations Implementing Recruitment and Placement for Local Employment)
the Migrant Workers and Overseas Filipinos Act of 1995, as amended by RA No. 10022)
Q: Effect of charging or accepting excessive fees under the Labor Code
Q: Effect of charging o accepting excessive fees under RA No. 8042 as amended A: Under Article 34 (a) of the Labor Code, ) it is prohibited practice to charge or accept, directly or
A: It is illegal recruitment to charge or accept directly or indirectly any amount greater than that indirectly, any amount greater than that specified in the schedule of allowable fees prescribed by
specified in the schedule of allowable fees prescribed by the Secretary of Labor and Employment. the Secretary of Labor, or to make a worker pay any amount greater than that actually received by
him as a loan or advance.
Q: Fees and Charges for Local recruitment and employees
This act is illegal recruitment when committed by non-licensees or non-holders of authority under
Article 38(a) in relation to Article 34 and punishable under Article 39(c) of the Labor Code.
Section 42(a) Revised Rules and Regulations Governing Recruitment and Placement for Local
Employment, also declared it unlawful act, committed by any person whether or not a holder of a
license or authority, to charge or accept directly or indirectly any amount or to make a worker pay
the agency or its representatives any amount greater than that actually loaned or advanced to
him.

Article 33. Reports on employment status

Q: Reports on employment status

A: Whenever the public interest requires, the Secretary of Labor may direct all persons or entities
within the coverage of this Title to submit a report on the status of employment, including job
vacancies, details of job requisitions, separation from jobs, wages, other terms and conditions and
other employment data. (Section 33 of the Labor Code)

Q: Effect of failure to submit report

A: It is illegal recruitment under Section 6(h) of RA No. 8042, as amended by RA No. 10022 to fail
to submit reports on the status of employment, placement vacancies, remittances of foreign
exchange earnings, separations from jobs, departures and such other matters or information as
may be required by the Secretary of Labor and Employment.
However, under Section 34(h) of the Labor Code, it is a prohibited practice to fail to file reports on
the status of employment, placement vacancies, remittance of foreign exchange earnings,
separation from jobs, departures and such other matters or information as may be required by the
Secretary of Labor. This act will only constitute illegal recruitment for local employment when it is
committed by non-licensees or non-holders of authority under Article 38(a) in relation to Article 34
and punishable under Article 39(c) of the Labor Code.

Article 34. Prohibited Practices

  Illegal Recruitment under RA 10022 Prohibited Practice under article 34 of
Labor code

Applicability Overseas Recruitment Labor Recruitment

Unlawful Acts To charge or accept directly or To charge or accept directly or Committed by By any person, whether a not Non-licensee, non holder of
indirectly , any amount greater indirectly , any amount greater than whom licensee, non holder of authority, authority(art 38. Labor code) or
than that specified in the schedule that specified in the schedule ad licensee or holder authority, sec.6 licensee or holder of authority ( art. 34
ad allowable fees prescribed by allowable fees prescribed by secretary RA 10022 of labor code)
secretary of labor, or to make a of labor, or to make a worker pay any
worker pay any amount greater amount greater than that actually
than that actually received by him received by him as a loan or advance.
as a loan or advance.   When it is It is illegal recruitment, committee ✓When committed by non licensee or
  B. To furnish or publish any false notice considered as by any person , whether a license  non holder of authority
B. To furnish or publish any false or information or document in relation illegal or holder of authority( sec 6 ra +++Illegal recruitment
notice or information or document to recruitment or employment. recruitmentn 10022) ✓when commited by license authority 
in relation to recruitment or   or holder authority
employment. C. . To give any false notice, testimony, +++ It is not illegal hut a  plain
  information or document or commit prohibited practices declared unlawful
C. . To give any false notice, any act of misrepresentation for by art. 34 punishable under article 294
testimony, information or purpose of securing a license or
document or commit any act of authority under this code.
misrepresentation for purpose of  
securing a license or authority  
under the labor code, or for the  
purpose of documenting hired  
poea, which include  the act of  
reprocessing  workers  through a  
job order that pertains to non-  
existent  work, work different from  
the actual overseas work or work  
with different employer whether  
registered or not with POEA  
  D. to induce or attempt to induce a.
D. to induce or attempt to induce a. Worker already employer  to quit his
Worker already employer  to quit employment in order to offer  him
his employment in order to offer  another  unless  the transfer is
him another  unless  the transfer is designed to liberate a worker from
designed to liberate a worker from oppressive terms and conditions of
oppressive terms and conditions of employment.
employment  
  E. To influence  or attempt to influence
E. To influence  or attempt to any person to entity
influence any person to entity not not to employ any worker who has  not
to employ any worker who has  not applied for employment through his
applied for employment through agency or who has formed, joined or
his agency or who has formed, supported  or has contracted  or is
joined or supported  or has supported by any union  or workers
Penalty ✓ simple illegal recruitment ✓ when committed by non licensee Addition to If offender is an alien, he shall in ✓when committed  by non licensee
+++Imprisonment of not less than ,non holder of authority. penalties addition to the penalties be +++ If such is an alien, shall be deported
12yrs 1day but not more than 20 +++ Imprisonment of jot less than 4yrs deported without further without further procedures.
years. and not more than 8 years. proceedings , in every case, ✓ when committed by licensee
Fine 1million but not more 2 Fine of 20,000- 100,000 pesos plus if  conviction shall cause and carry +++ If such officer is an alien, he shall
million pesos punishable under article 34 fine of 1000 automatic revocation of license or be deported without further
✓ as economic sabotage – 10,000 and imprisonment of 3month- registration of recruitment proceedings.
+++Life imprisonment and fine not 3 years /manning agency, lending
less than 2 million and not more ✓ when committed by licensee, holder institution, training school or
than 5 million with authority medical clinics.
  +++Imprisonment of 2 yrs-5yrs and fine
of 10,000 – 50,000
If punishable under art 34, additonal
fine of 1,000-10,000 and 3months to 3
yrs imprisonment.

Jurisdiction Rtc ✓ based on penalty under art.39

+++ Rtc
✓ based on penalty under art 39 and
295
+++ Municipal trial court

 
 Article 35 - Suspension and/or Cancellation of License or Authority
The Minister of Labor shall have the power to suspend or cancel any license or authority to recruit
employees for overseas employment for violation of rules and regulations issued by the Ministry of
Labor, the Overseas Employment Development Board, or for violation of the provisions of this and
other applicable laws, General Orders and Letters of Instructions

Q1. Who has Jurisdiction to suspend or cancel licenses or authority to recruit employees for
overseas employment?
ANSWER: The Secretary of Labor (Article 35) and POEA (Section 1, Rule II, Book VI of the New Rules
on Overseas Employment) CONCURRENTLY

Jurisprudence:
Under Article 35 of the Labor Code, the Secretary of Labor and Employment (Trans Action Overseas
Corporation v. The Honorable Secretary of Labor, G.R. No. 109583, September 5, 1997) Q2.3 Effect of failure to settle?
ANSWER: It shall cause the endorsement of the complaint to the appropriate office
Pursuant to the rule-making power granted to the Secretary of Labor and Employment (Secretary),
the Secretary gave the POEA, (Section 1, Rule II, Book VI of the New Rules on Overseas Employment) Q2.4 What are the cases not subject to SEnA?
on its own initiative or upon filing of a complaint or report or upon request for investigation by any a)Cases referred by the POLO or any other government agency
aggrieved person, x x (authority to) conduct the necessary proceedings for the suspension or b)Cases initiated by the Administration
cancellation of the license or authority of any agency or entity for certain offenses x x x (Eastern c)Cases involving acts of misrepresentation for the purpose of securing a license
Assurance and Surety Corp. VS. Secretary of Labor 181 SCRA 110 (1990) Q2.5 When to Set Conciliation Proceedings?
ANSWER: Within 5 days upon receipt of the complaint, the Administration shall notify the
2012 Bar Examination respondent and schedule a conference between the parties to discuss the possibility of arriving at an
1. Concurrent Jurisdiction of DOLE/POEA under Article 35 amicable settlement
2012 Bar Q. NO.19: The power to suspend or cancel a license to recruit employees is vested on: a.
The Secretary of Labor and Employment, B. The POEA, c. A and B concurrently, d. Neither of them. Q.6 What is the effect when an amicable settlement is reached?
ANSWER: The Administration shall approve the same and the settlement shall be final and binding
ANSWER: c. A and B concurrently (Eastern Assurance and Surety Corp. VS. Secretary of Labor 181 upon the parties
SCRA 110 (1990)
Q2.7 What is the effect when efforts for amicable settlement fail?
2. Rules on recruitment violations and disciplinary action cases under POEA Rules of Landbased ANSWER: The conciliation proceedings shall be terminated and the complaint shall be referred to
and Seafarer Overseas Filipino Worker (Revised POEA Rules and Regulations Governing the the appropriate office immediately
Recruitment and Employment of Landbased Overseas Filipino Workers/Seafarers of 2016)
Q2.8. Effect of UNJUSTIFIED FAILURE to abide with the settlement?
Q2.1 What is the Jurisdiction of the POEA on administrative sanctions involving licensed manning
agency and private recruitment/ employment agency? ANSWER:

ANSWER: The Administration (POEA) shall exercise original and exclusive jurisdiction to hear and Unjustified failure by the:
decide:
a)Licensed recruitment agencies, principal/employer, OFW – suspension from participation in the
1.All cases which are administrative in character, involving or arising out of violations of recruitment overseas employment program of the entity/person, until compliance with or satisfaction of the
rules and regulations, including refund of fees collected from Overseas Filipino Workers approved settlement
(OFWs/Seafarers) and (any) violation of the condition for the issuance of the license to recruit OFWs. b)Licensed manning agency, principal/employer, seafarer – Issuance of a Writ of Execution for the
2.Disciplinary action cases against OFWs and principals/employers that are administrative in Enforcement of the settlement agreement
character, excluding money claims.
- the Administration, upon motion of the aggrieved party or on its own initiative, shall issue a Writ of
Q2.2 Is there a need for mandatory conciliation of complaints before the same is filed with the POEA Execution for the Enforcement of the settlement agreement
or Philippine Overseas Labor & Office (POLO)?
Q2.9 What is the effect when any of the parties to the settlement fail to comply with the settlement
ANSWER: YES.  agreement? (Landbased and Seafarers)

a)For Administrative complaint involving seafarer, licensed manning agency, or principal/employer ANSWER: Issuance of a Writ of Execution for the Enforcement of the settlement agreement
relating to overseas employment): The Administration or the POLO shall mandatorily conciliate any - The Administration, upon motion of the aggrieved party or on its own initiative, shall issue a Writ of
complaint. Should there be money claims, the same shall be conciliated with the Single-Entry Execution for the Enforcement of the settlement agreement
Approach (SEnA).
Q2.10 What is the nature of conciliation proceedings? b)2nd Offense – Suspension from participation in the overseas employment program (1 Year and one
day – 2 Years)
ANSWER: Confidential in nature. No evidence or testimony introduced therein shall be admissible c)3rd Offense - Permanent Disqualification from participation in the overseas employment program
as evidence in any other proceedings.
II. LESS SERIOUS OFFENSES - 
3. RECRUITMENT VIOLATION CASES, CLASSIFICATION OF OFFENSES AND SCHEDULE OF PENALTIES a)1st Offense – Suspension from participation in the overseas employment program (2 months – 6
UNDER POEA RULES FOR LANDBASED OVERSEAS FILIPINO WORKERS  months
((Revised POEA Rules and Regulations Governing the Recruitment and Employment of Landbased b)2nd Offense – Suspension from participation in the overseas employment program (6 months and
Overseas Filipino Workers/Seafarers of 2016)) 1 day – 1 year)
(For 3.1 – 6.9, please refer to page 183 onwards for the schedule of penalties table) c)3rd Offense - Permanent Disqualification from participation in the overseas employment program
4. Classification of Offenses and Schedule of Penalties under POEA Rules for Seafarer OFWs
3.1 Grounds for Imposition of Administrative Sanctions Against a Licensed Recruitment Agency
Commission of offenses by Licensed Manning Agencies:
Commission of offenses by a Licensed Recruitment Agency:
Classification of Offenses: 4.1 Classification of offenses and penalties
I.SERIOUS OFFENSE – punishable by cancellation of license I. SERIOUS OFFENSES – Generally, cancellation/revocation of license
II.LESS SERIOUS OFFENSE –punishable by the penalty of suspension to cancellation of license
III.LIGHT OFFENSES – punishable by reprimand to suspension of license Except:

3.2 Grounds for Disciplinary Action Against Principals/Employers and Penalties 1. Attempting to deploy or deploying a seafarer who is below 18 years old or below the minimum
age requirement for overseas employment. 
Commission of offenses by principals/employers: Penalty: Cancellation/revocation of license plus a fine of not less than Five Hundred Thousand Pesos
(PhP500,000.00) but not more than One Million Pesos (PhP1,000,000.00)
SERIOUS OFFENSES – 
Permanent Disqualification and delisting from the roster of accredited principals/employers 7. Charging or accepting directly or indirectly any amount of money, goods or services, or any fee or
bond for any purpose from an applicant seafarer. 
LESS SERIOUS OFFENSES Penalty: Cancellation of License plus refund of fee or bond collected
a)1st Offense – Suspension from participation in the overseas employment program (6 months – 1
Year) 10. Collecting any amount as payment for processing, or documentation costs not prescribed by the
b)2nd Offense – Permanent Disqualification and delisting from the roster of accredited rules, or an amount greater than the actual documentation costs, as covered by official receipts
principals/employers issued by entities where payments were made. 
Penalty: Cancellation of license plus refund of excess processing or documentation costs.
3.3 Disciplinary Action Against Landbased Overseas Filipino Workers, and Penalties
II. LESS SERIOUS OFFENSES – Generally,
Commission of offenses by an OFW: a)1st Offense — Suspension of License (Two Months to Six Months) 
b)2nd Offense — Suspension of License (Six Months and One day to One year) 
I. SERIOUS OFFENSES –  c)3rd Offense — Suspension of License (One year and One day to Two years) 
d)4Th Offense — Cancellation of License
A. Pre-Employment Offenses and Offenses during Employment III. LIGHT OFFENSES – Generally,
a)1st Offense — Reprimand 
a)1st Offense – Suspension from participation in the overseas employment program (6 months – 1 b)2nd Offense — Fine of PhP20,000.00 
Year) c)3rd Offense — Suspension of License (1-3 months) 
d)4th Offense onwards — Suspension of License (3-6 months)
Q4.2 How much is the fine in lieu of the penalty of suspension of license? Q1. Who may file a complaint?
ANSWER: P50,000/month of suspension ANSWER: An aggrieved person

Q4.3 What is the penalty for cases involving five or more complainants? Requirements:
ANSWER: Cancellation of license a)In writing
b)Under oath for violation of laws, rules and regulations and other issuances relating to overseas
Q4.4 How is a Motion for Reconsideration treated? employment
ANSWER: Appeal
Q1.2 Who is an aggrieved person? 
4.5 Grounds for Disciplinary Action against Principal/Employer of Seafarers ANSWER: One who is prejudiced by the commission of a violation in the POEA Rules and Regulations

Commission of offenses by a principal/employer of Seafarers: Q1.3 Can the Administration, in its own initiative, conduct proceedings based on reports of violations
of the aforementioned rule?
I.SERIOUS OFFENSE – 
Permanent Disqualification and delisting from the roster of accredited principals/employers ANSWER: Yes. 
The Administration may, in its own initiative, conduct proceedings based on reports of
II.LESS SERIOUS OFFENSE – violations of these Rules and other issuances on overseas employment, subject to preliminary
a)1st Offense — Fine of P50,000 investigation.
b)2nd Offense — Fine of P100,000
c)3rd Offense — Suspension from participation in the overseas employment program (6 months and Q1.4 Who shall investigate the said reports?
1 day – 1 year) ANSWER: The Adjudication Office or the POEA regional center/extension units
d)4th Offense onwards — Permanent Disqualification and delisting from the roster of accredited
principals/employers 2. On-Site Complaints for Violation of the POEA Rules and Regulations
Q2.1 What Procedure shall be observed for on-site complaints?
ANSWER: The procedures under Department Order No. 87-08 and/or Manual of Operations of the
POLO
4.6 Grounds for disciplinary action against seafarer and their penalties
Q2.2 What shall be the form of the complaint?
Commission of offenses by Seafarers:
ANSWER (ADCP):
A. Pre-Employment Offenses and Offenses During Employment
a)It shall be in affidavit form and subscribed and sworn before ta consular official of the Philippines
Embassy
Generally,
b)It shall be Accompanied by available supporting documents and a Certification of Non-Forum
a)1st Offense – Suspension from participation in the overseas employment program (6 months – 1
Shopping and Certificate of Failure to Conciliate
Year)
c)It shall be filed with the POLO that has jurisdiction over the worksite of the complainant
b)2nd Offense – Suspension from participation in the overseas employment program (1 Year and 1
Day – 2 years)
Q2.3 Who shall the POLO endorse the complaint filed on-site?
c)3rd Offense - Permanent Disqualification from participation in the overseas employment program
ANSWER: To the Administration, together with the available supporting documents for
investigations.
5. Filing of complaints and venue of action for Landbased and Seafarer Overseas Filipino Workers 

5.1 Rules for filing of complaints

3. Venue
Q. Where shall the complaint against a licensed recruitment agency (license manning agency) Q9. When is the Service of Summons completed?
arising out of a recruitment violation/violation of the conditions of the license be filed? ANSWER: Service by registered mail or through courier – upon receipt by the addressee
ANSWER: Adjudication Office or with the POEA Regional Centers/Extension Units having jurisdiction Service made at the last known address – in case the office of the licensed recruitment agency is
over the place where the complainant resides or was recruited.  closed and no notice of change of address has been filed.

Q. How about a complaint against an OFW (seafarer)? Q10. What is the nature of the proceedings?
ANSWER: Same as above, Adjudication Office or with the POEA Regional Centers/Extension Units ANSWER: It shall comply with the requirements of due process without strictly adhering to the
technical rules of procedure and evidence applicable to judicial proceedings
Q. Who between the Adjudication Office or POEA Regional Centers/Extension Units shall take
cognizance of the case? Q11. May the Overseas Employment Adjudicator (OEA) conduct a preliminary hearing?
ANSWER: The Office where the complaint was first filed ANSWER: Yes, with due notice to the parties.

4. Change of Venue Q12. What is the effect of non-appearance of the respective parties in hearings?
Q4.1 Can a complaint before the Adjudication office be transferred to the POEA Regional ANSWER: 
Center/Extension Units? Non-appearance of complainant - complaint shall be dismissed without prejudice to the re-filing of
ANSWER: Yes, it may be transferred before the respondent files the Answer, and upon motion of the complaint within the prescriptive period
either party and on meritorious grounds, subject to the approval by the Administration Non-apperance of respondent – the complaint shall be resolved based on the evidence on record
Non-apperance of both parties – outright dismissal of the complaint without prejudice
5. Referral to the POEA Regional Center/Extension Unit for Reception of Documentary Evidence
Q. Can the Adjudication Office refer to the POEA Regional Center/Extension Unit the reception of Q13. May the OEA ask clarificatory questions?
documentary evidence? ANSWER: Yes. To further elicit relevant facts or information.
ANSWER: Yes, upon request of the parties. The Regional Center/Extension Unit shall endorse the
received evidence to the Adjudication Office for inclusion in the case record. Q14. Does the Administration have the power to order the production of documents?
ANSWER: Yes, through the issuance of an Order
Q6. When shall the Administration issue a Show Cause Order/Summons?
ANSWER: Upon receipt of the duly docketed complaint/report. The Show Cause Order/Summons Q15. What is the effect when the parties fail to comply with the Order without justifiable reason?
directs the respondent to file a verified Answer and not a motion to dismiss within 10 days from ANSWER: Such failure shall be deemed a waiver of their right to present evidence
receipt.
Q16. May the OEA render Summary Judgment/Judgment on the Pleadings?
Q7. What is the Effect of failure to file an Answer? ANSWER: Yes. Should the OEA find, motu proprio or upon motion that decision may be rendered on
ANSWER: The assigned Overseas Employment Adjudicator (OEA) shall proceed with the the basis of the complaint, answer, and evidence presented. 
investigation/hearing of the cause. The Answer filed out of time cannot be admitted except on
meritorious grounds, upon motion.  Q17. What is the effect when the complainant withdraws the complaint?
ANSWER: The withdrawal shall not bar the Administration from proceeding with the investigation of
In case of the respondent principal/employer or OFW (seafarer), the case shall be archived and the the recruitment violations
respondent shall be temporarily disqualified from participating in the overseas employment
program. Q18. What is the timeframe by which the OEA shall decide upon the case?
ANSWER: Within 6 months from the date of filing of the complaint.
Q8. How many Motion for Extension may be filed?
ANSWER: Only one motion for extension of time may be filed, and it may only be granted upon Q18.1 How about the Administrator?
meritorious grounds, for a non-extendible period of 10 calendar days. If the complaint refers to facts ANSWER: Within 2 months from receipt of the decision/findings and recommendations
which occurred in abroad, a longer period not exceeding 15 days may be granted.
Q19. Can the Administration/OEA preventively suspend the parties?
ANSWER: Yes. Pending investigation of the recruitment violation/disciplinary action case, the license Q29. Does the Administration have the power to grant clemency to principal/employer or OFWs?
of the respondent recruitment agency or principal/ employer, or the processing of documents of the ANSWER: Yes, upon motion by the principal/employer or OFW.
OFW (seafarer), may be suspended.
Q30. Who has Exclusive Jurisdiction to act on appeals from the Orders of the Administration?
Q20. What are the grounds for the Issuance of Order of Preventive Suspension? ANSWER: Office of the DOLE Secretary
ANSWER: Common ground – when evidence of guilt is strong (Please refer to page 216)
Q31. What is the Period to Appeal?
Q21. What is the Effect of an Order of Preventive Suspension and Suspension/Cancellation of ANSWER: Within 15 calendar days from receipt of the copy of the decision. Failure to file an appeal
license? within such period shall render the decision of the Administration final and executory.
ANSWER: It shall have the effect of suspending/terminating all activities which fall under the
definition of recruitment and placement. Q32. When shall the Entry of Judgment be issued?
ANSWER: Upon failure to file an appeal within the reglementary period
Q22. How much is the Fine which may be imposed by the Administration
ANSWER: P50,000 for every month of suspension Q33. What are the Requirements to File an Appeal?
ANSWER: 
Q23. What is the penalty when the case involves five or more worker? a)Notice of Appeal
ANSWER: Cancellation of license b)Appeal Memorandum
In case a fine and/or monetary award is imposed, the appealing party shall also file a
Q24. How is a Motion for Reconsideration treated? supersedeas bond.
ANSWER: Appeal
Q34. To whom shall the Notice of Appeal and Appeal Memorandum be Filed?
Q25. What is the effect when a respondent principal/employer or an OFW (seafarer)  ANSWER: Docket and Enforcement Division of the Administration 
fails to submit to the jurisdiction of the POEA through an answer?
ANSWER: Disqualification from participating in the overseas employment program, until the Q35. Within how many days shall the Docket and Enforcements Division of the Administration
respondent files an Answer transmit the records of the case to the Office of the Secretary?
ANSWER: Within 5 days from receipt of the appeal seasonably filed with the requirements
Q26. Can a principal/employer be automatically disqualified?
ANSWER: Yes, in cases when a final and executory judgment issued by the NLRC against the Q36. Is the Order of the Administration stayed during appeal?
principal/employer shall not have been satisfied. ANSWER:
General Rule – Yes.
Q26.1 When can the automatic disqualification be lifted? Exceptions:
ANSWER: Upon full satisfaction of the judgment award a)when the penalty imposed is suspension of license for twelve (12) months or more; 
b)when the penalty imposed is cancellation of license; or 
Q27. What are the grounds for temporary disqualifications of principal/employer and OFW to the c)when the penalty imposed is permanent disqualification against the principal/employer.
overseas employment program
ANSWER: Q37. When shall the Writ of Execution be Issued?
a)Principal/employer who refuses to honor the medical result of a DOH-accredited medical clinic ANSWER: After the Order of the Administration has become final and executory, and requiring the
b)OFW – when a Warrant of Arrest or Hold Departure Order was issued by a competent authority Enforcement Officer to enforce the award and/or fine imposed in the decision

Q28. What is the effect when the principal/employer is imposed the penalty of disqualification Q38. Is a Motion to Cancel/Quash Writ of Execution Allowed?
through an Order? ANSWER: Yes. The Judgment debtor, within 5 days from receipt of a copy of Writ of Execution, file a
ANSWER: Disqualification from participating in the overseas employment program Motion to Cancel/Quash the Writ of Execution on meritorious grounds.
 ANSWER: 
Q39. How shall a party appear in the proceedings? If the employment agency fails to provide the ticket or PTA within 48 HOURS from receipt of the
ANSWER: Personally, in his/her own behalf or through a duly authorized representative. notice, the POEA shall suspend the documentary processing of the agency or impose sanction. 
If the principal/employer or agency fails to do so within 15 days, from receipt of the POEA notice, the
Q40. When shall a consolidation of cases be done? POEA shall suspend the employer from participating in the overseas employment program, and
ANSWER: When there are 2 or more cases pending before different OEA, involving the same impose sanctions.
respondents and issues, the case which was filed last may, upon written motion and with notice to
all parties, be consolidated with the first to avoid cost and delay. Q48.2 What is the effect of deploying underage migrant worker on the license of agency
ANSWER: The responsible officers of the Foreign Service shall without delay repatriate said workers.
Q41. Who may issue Orders? It shall be the recruitment/manning agency who shall pay or reimburse the costs of repatriation.
ANSWER: The POEA Administrator
Q48.3 What is the effect if a migrant worker paid the premium/cost of insurance coverage?
Q42. What Orders can the Administrator issue? ANSWER: The licensed recruitment/manning agency shall lose its license
ANSWER:
a)suspension of documentary processing 6. Administrative sanctions on recruitment and placement for local employment under D.O. 141-
b)preventive suspension 14, Series of 2014
c)suspension 6.1 Jurisdiction on administrative offenses under D.O. No. 141-14, Series of 2014
d)cancellation or revocation of license Q. Where shall the written complaints against an agency and/or authorized representative/s based
e)dismissal of the case, lifting of penalties  on any of the grounds enumerated under Section 51 of the Rules (D.O. 141-14) be filed?
f)and all other Orders as may be necessary ANSWER: It shall be filed with the Regional/Field Office having jurisdiction over the place where:
a)the agency or branch office is located
Q43. What is the prescriptive period to file an action under the Rules? b)where the prohibited act was committed,
ANSWER: Within 3 years after such cause of action accrued. c)at the complainant’s place of residence, at the option of the complainant; 
Provided that the Regional Office/Field Office which first acquired jurisdiction over the
Q44. What is the Applicability of the Rules of Court? case shall act on the complaint to the exclusion of others.
ANSWER: Suppletory, in similar or analogous character 
6.2 Classification of offenses (Please refer to the table at page 231)
Q45. What is the Responsibility of the Administration to OFWs (Seafarers)? 1.Serious Offenses
ANSWER: It shall ensure that they are amply protected, and their interest, well-being, and welfare a.1st Offense – Cancellation of license/authority
are promoted 2.Less serious Offenses
a.1st Offense - Suspension of license (2 months – 6 months)
Q46. Can the Administration take cognizance of any request for assistance from the OFW (seafarer) b.2nd Offense - Suspension of license (6 months – 1 year)
or his/her family? c.3rd Offense – Cancellation of License
ANSWER: Yes, on matters relating to overseas employment, or it may refer them to the proper 3.Light Offenses
government agencies or the licensed recruitment agencies.
Q6.2.1 Who shall impose the appropriate administrative penalties in every recruitment violation?
Q47. May the Licensed recruitment agencies be held administratively liable for failure to act on ANSWER:The Regional Director
requests for assistance?
ANSWER: Yes, imposition of such sanctions as the Administration may deem appropriate
6.3 Fines
Q. Who has the power to impose fines? How much?
48. Other administrative sanctions under the Omnibus Rules of RA 8042, as amended ANSWER: The Regional Director shall have the power to impose a fine of P10,000 for every count of
Q48.1 What is the effect of failure to provide ticket/secure exit visa in case of repatriation? offense, in addition to the penalty of suspension of license
 ANSWER: Yes, it may be appealed to the Office of the Secretary within 10 days from receipt of the
order. 
Q6.4 What is the penalty for cases involving five or more complainants?
ANSWER: Cancellation of license Q7.2.1 Within how many days shall the Office of the Secretary resolve the appeal?
ANSWER: Within 10 days from receipt of the notice of appeal
Q6.5 What is the effects of withdrawal/desistance of the complaining witness?
ANSWER: It shall not bar the Regional Office from proceeding with the investigation or recruitment Q7.2.2 When does the decision of the Secretary become final and executory?
violation ANSWER: Within 10 days from receipt of the resolution

Q6.6 Suspension of license pending investigation Article 36 - Regulatory Power

Who issues the suspension of license pending investigation?
ANSWER: The Regional Director, base on the following grounds: The Secretary of Labor shall have the power to restrict and regulate the recruitment and placement
a)Reasonable grounds to believe that the continued operation of the agency will lead to exploitation activities of all agencies within the coverage of this Title and is hereby authorized to issue orders and
of workers promulgate rules and regulations to carry out the objectives and implement the provisions of this
b)Failure of the agency to submit its position paper/answer within 10 days from notice Title.
c)Failure to attend the hearing on two occasions despite due notice
Q1. What is the Regulatory power of the Secretary of Labor and Employment (SOLE)?
6.7 Appeal from the order of suspension/cancellation ANSWER:  In the exercise of this power to restrict and regulate the recruitment and placement
Q. To whom shall the decision of the Regional Director be appealed? activities, the SOLE can issue rules and regulations.
ANSWER: To the Secretary, by filing a notice of appeal with the appropriate Regional office within 10
days Some noted rules and regulations issued by the SOLE:
a)Omnibus Rules and Regulations Implementing RA 8042, as amended by RA 10022
Q6.8 Motion for Reconsideration b)Revised Rules and Regulations Governing Recruitment and Placement for Local Employment (D.O.
When can a motion for reconsideration of the decision of the Secretary be filed? No. 141-14, Series of 2014)
ANSWER: Within 10 days after receipt of such decision. Only one motion for reconsideration may be c)Revised POEA Rules and Regulations Governing the Recruitment and Employment of Landbased
entertained. Within 10 days from finality of the decision, the Regional Director shall issue the Writ of Overseas Filipino Workers of 2016
Execution. d)Revised POEA Rules and Regulations Governing the Recruitment and Employment of Seafarers 
e)Various issuances relative to labor laws
Q6.9 Is Notice to the Regional Office required when an agency or its branch office ceases to operate
prior to expiration of its license? Q2. Is the Regulatory power of the SOLE a valid exercise of police power?
ANSWER: Yes, and stating the reason for such closure ANSWER: Yes. The power to restrict and regulate conferred by Article 36 of the Labor Code involves
a grant of police power.
Q7. Denial of application for new license or renewal for local employment
7.1 What are the grounds for denial of application for a new license or its renewal? In Philippine Association of Service Exporters, Inc. v. Torres, G.R. No. 101279, August 6,
ANSWER: 1992, the petitioner filed a petition to prohibit and enjoin DOLE and POEA from enforcing and
a)Non-compliance with any of the requirements provided under the Rules; implementing DOLE Department Order and POEA Memorandum Circulars, as it temporarily suspends
b)Pendency of a case for violation of the Labor Code, its IRRs and issuances the recruitment by private employment agencies of Filipino domestic helpers for Hong Kong and
c)Conviction of a crime involving illegal recruitment, trafficking in persons or violation of anti-child vesting the DOLE, through the facilities of POEA, the task of processing and deploying such workers.
labor laws or crimes involving moral turpitude by the applicant. Any of its officers or authorized The petition assailed DOLE and POEA circulars as contrary to the Constitution, unreasonable, unfair
representatives; or and oppressive.
d)License to operate or authority to recruit has been previously redocked or cancelled
In this case, the High Court affirmed the power to restrict and regulate recruitment and
Q7.2 Can the Order of the denial of an application for the issuance of license be appealed? placement activities (regulatory powers) by the DOLE and POEA. The assailed circulars do not
prohibit the petitioner from engaging in the recruitment and deployment of Filipino landbased authority, who in any manner, offer or promises for free employment to two or more persons shall
workers for overseas employment. To regulate means the power to protect, promote, and control be deemed so engage. 
with due regard to the interests of the public.
Q3. What is the Rule on regulation of private sector? Q: What is illegal recruitment by a  syndicate or in a large-scale under the labor code?
ANSWER: The regulation of private sectors is subject to the regulatory powers of the POEA. This is A: Illegal recruitment is deemed committed by a syndicate if carried out by a group of three or more
reflected on RA 9422 which provides that: “the Administration (POEA), shall regulate private sector persons conspiring and/or confederating with one another in carrying out any unlawful or illegal
participation in the recruitment and overseas placement of workers by setting up a licensing and transaction, enterprise or scheme and it is deemed committed in large-scale if committed against
registration system.” three or more persons individually or as a group.

2011 Bar Examination Q: What is the meaning of the terms “committed against three (3) or more persons individually or
Q. Which of the following acts is NOT part of the regulatory and visitorial power of the Secretary of as a group to qualify illegal recruitment in a large scale?
Labor and Employment over recruitment and placement agencies? 
ANSWER: The power to (A) order arrest of an illegal recruiter (B) inspect premises, books and A: When the labor code speaks of illegal recruitment committed against three (3) or more persons
records (C) cancel license or authority to recruit (D) garnish recruiter's bond. individually or as a group, it must be understood as referring to the number of complainants in each
case who are complainants therein, otherwise, prosecutions for single crimes of illegal recruitment
can be cummulated  to make out a case of large scale illegal recruitment. In other words, a
Article 37. Visitorial Powers
conviction for large scale illegal recruitment must be based on finding in each case of illegal
The Secretary of Labor or his duly authorized representatives may, at any time:
recruitment of three or more persons whether individually or as a group.
Inspect the premises, books of accounts, and records of any person or entity covered by this Title
(Recruitment and Placement of Workers);
Q: What are the distinctions of illegal recruitment under RA 8042 as amended by RA 10022 and the
Require it to submit reports regularly on prescribed forms; and
labor code?
Act on violation of any provisions of this Title
A: Illegal recruitment under Section RA 8042 Migrant Workers and Overseas Filipinos Act of 1995 as
amended by RA 10022 broaden the concept of illegal recruitment, as it includes the commission of
Q: What is the effect of obstruction or attempt to obstruct inspection?
acts (letters a to n in the second sentence of the first par. Of Section 6 of RA 8042, as amended)
A: Illegal recruitment under section 6(g) of RA 8042, as amended by RA 10022; and
whether committed by any person whether non-licensee, not holder of authority, licensee or holder
Prohibited Practices under article 34(g), in relation to article 38(a) and article 303 of the Labor Code
of authority, and provided for stiffer penalties, while illegal recruitment as defined by Article 38 (a)  
in relation to Article 13 (b) and 34 of the Labor code is committed only by an non-licensees or non-
Q: What is the difference of Illegal recruitment punishable under RA 8042 from the Labor Code?
holders of authority.
A: Illegal recruitment under RA 8042 is committed by a licensee or holder of authority, or non-
licensee or non-holder of authority, while the Labor Code punishes those committed by non-
Q: Why article 38 © of the labor code declared unconstitutional?
licensees or non-holders of authority.
A: In the case of salazar v.  Achacoso, concerns the validity of the power of the Secretary of Labor to
issue warrants of arrest and seizure under Art. 38 of the labor code, prohibiting illegal recruitment.  
Art. 38. Illegal Recruitment
In deciding the issue, the SC held that we reiterate that the secretary of labor not being a judge, may
no longer issue search  or arrest warrants. Hence, those must go through the judicial process. To that
Q: What is illegal recruitment?
extent, we declare Art. 38 paragraph (c) of the labor code unconstitutional and of no force and
A: Any recruitment activities including the prohibited practices enumerated under article 34 of this
effect.
code to be undertaken by non-licenses or non-holders of authority shall be deemed illegal and
punishable under article 39 of the code.
Q: What are the remedies to victims of illegal recruitment for local employment?
Q: What are the acts constituting illegal recruitment under the rules for local employment?
A: (1) Anti illegal recruitment program
A: Legal recruitment shall mean any act of canvassing, enlisting, contracting utilizing or hiring or
procuring workers and includes referrals contract services promising or advertising for local
The rules mandates the DOLE to adopt and implement programs, policies, rules and procedure
employment weather for profit or not, when undertaken by a non-licensee or non-holder of
toward the eradication of illegal recruitment activities such as, but not limited to the following:
 granting authority the immediate cancellation or revocation of the license or permit to operate its
(a) Providing legal assistance to victims of illegal recruitment and related cases; business.

(b) Assistance in the prosecution of suspected illegal recruiters; 6. Execution of cease and desist order 

(c) Special operations such as surveillance of persons and entities allegedly engaged in illegal A cease and desist order shall be served by the donor sheriff upon the offender or the person in
recruitment activities; and  charge of the establishment subject thereof.

(d) Information and education campaign.  7. Execution report 

Whenever necessary the department shall coordinate with other appropriate agencies/entities in Within 24 hours from the date of implementation thereof, the dole Sheriff shall submit to the
the implementation of said programs. Regional Director a written report under oath and execution of the cease and desist order.

2. Legal assistance 8 Institution of criminal action 

The Department may provide free legal assistance to victims of illegal recruitment and related cases The Regional Director concerned or his/ her duly authorized representative or any aggrieved person,
including but not limited to, legal advice, assistance in the preparation of complaints and supporting may initiate filing of appropriate criminal action with the office of the prosecutor.
documents, institution of criminal actions whenever necessary provide, counseling during
preliminary investigation and hearings. Q: What is illegal recruitment for overseas employment under RA 8042 as amended?
A: Illegal recruitment shall mean any act of canvassing, enlisting, contracting, transporting, utilizing,
3. Where to file complaint for illegal recruitment hiring, or procuring workers and includes referring, contract services promising or advertising for
employment abroad whether for profit or not, when undertaken by non-licensee or non-holder of
Thee victim of illegal recruitment or other related illegal acts or his parents or legal guardians may authority contemplated under Article 13 (f) of the P.D No. 442, as amended, otherwise known as the
file a written report or complaint under oath with the Regional offices or Field Office   having Labor Code of the Philippines.
jurisdiction over the place where the illegal act was committed.
Unlike illegal recruitment as defined under the labor code which is limited to recruitment activities
4. Surveillance  undertaken by non-licensee or non-holders of authority but also by licensees or holders of
authority.  
The Regional Director or his authorized representative may motu proprio conduct, surveillance on
reported illegal recruitment activities. Q: Does illegal recruitment by a syndicate or in a large-scale defines illegal recruitment?
A: No, Illegal recruitment by a syndicate and illegal recruitment in a larger-scale does not define
5. Issuance of closure order illegal recruitment. They are qualifying circumstances to constitute an offense involving economic
sabotage.
The regional director or his duly authorized representative shall conduct a preliminary examination
to determine whether the activities of a non-licensee constitute a danger to life, limb, property or Q:How illegal recruitment by a syndicate committed?
public order or will lead to further exploitation of job seekers. A: Illegal recruitment is deemed committed by a syndicate if carried out by a group of three or more
persons conspiring or confederating with one another.
If upon the preliminary examination or surveillance, the Regional Director is satisfied that danger or
exploitation exists, a written order shall be issued for the closure of the establishment being used for Q: What are the elements of illegal recruitment by a syndicate
such recruitment activity. A: The elements are the following:

In case of a business establishment whose license or permit to operate a business was issued by the 1.The accused have no valid license or authority required by law to enable them to lawfully engage
local government, the Regional Director concerned shall likewise recommend recommend to the in the recruitment and placement of workers;
 signing thereof by the parties up to and including the period of the expiration of the same without
2.The accused engaged in this activity of recruitment and placement by actually recruiting, deploying approval of DOLE. 
and transporting; and
In Chavez v. Bonto-Perez that the subsequently executed side agreement  of an overseas contract
3.Illegal recruitment was committed by three persons conspiring and confederating with one worker with her foreign employer which reduced her salary below the amount approved by the
another. POEA is void because it is against our existing laws morals and public policy. The said side agreement
cannot supersede her standard employment contract approved by the POEA 
Q: How many offenders are in illegal equipment by a syndicate?
 A: The law requires that the number of offenders in illegal recruitment by a large scale is three or Q: Effect of stipulation of more benefits to employee than required by law 
more persons conspiring or confederating with one another.
A: The reason why the law requires that the POEA should approve and verify a contract under Art.  
Q: How illegal recruitment in a large-scale committed? 34 (i) of the Labor Code is to ensure that the employee shall not thereby be placed in this
A: if committed against three or more persons individually or as a group. advantageous position and that the same time are within the minimum standards of the terms and
condition of such employment contract set by the POEA.  This is why a standard format for
Q: Does the law require that at least 3 victims testify at the trial?  employment contracts has been adopted by the Department of Labor however there is no
A: No, the law does not require that at least three victims testify at the trial, it is necessary that there prohibition against stipulating in a contract more benefits to the employee than those required by
is sufficient evidence from proving that the offense was committed against three or more persons. law.

Q: Is the number of victims a determinative in illegal recruitment? Q: What is non-licensee or non-holder of authority?
A: It is evident that in illegal recruitment cases, the number of persons victimized is determinative. A: A non-licensee or non-holder of authority is any person, corporation, or entity which has not been
Where illegal recruitment is committed against a lone victim, the accused may be convicted of issued a valid license or authority to engage in recruitment and placement by the Secretary of labor
simple illegal recruitment which is punishable with a lower penalty.  Where the offence is committed or whose license or authority has been suspended, revoked or canceled by the POEA or the
against three or more persons it is qualified to illegal recruitment in large scale which provides a Secretary. 
higher penalty. 
Q: Who are the persons criminally liable for illegal recruitment?
Q: What is distinction of illegal recruitment by a syndicate and illegal recruitment in a large scale? A: The persons criminally liable for illegal recruitment are the following:
A: The distinction between the two lies with the elements involving the number of recruiters and  
recruits. Thus, the number of persons victimized is not material to qualify the illegal recruitment by a 1.The principals, accomplices and accessories;
syndicate. However, iin illegal recruitment in a large-scale there must be sufficient evidence on the 2.In case of juridical persons the officers having ownership, control management or the direction of
number of persons against whom the offense was committed to qualify the offense to   illegal their business who are responsible for the commission of the offense and the responsible
recruitment in a large scale.  employees/agents thereof shall be liable. 

Q: What are the common elements of illegal recruitment by a  syndicate and illegal recruitment in Q: What is the effect of lack of criminal intent in illegal recruitment in a large scale
a large scale? A: The lack of criminal intent on the part of an excuse assuming that the accused-appellant was
A: The common elements of illegal recruitment by a syndicate and illegal recruitment in a large scale indeed unaware of the illegal nature of the recruitment business of her co-accused is hardly a
are the offenders has no valid license or another authority required by law to enable them to engage defense in the prosecution of illegal recruitment. 
in recruitment and placement of workers and undertakes any of the activities within the meaning of
recruitment and placement. Illegal recruitment in large scale is penalized under the Migrant Workers and Overseas Filipinos act
of 1995, a special law is malum prohibitum and not malum in se. The criminal intent of the accused is
Q: Is illegal recruitment by way of substitution/alteration of employment contract allowed? not necessary and the fact alone that accused violated the law warrants her conviction. 
A: No,  it is now allowed. In the case of Placewell International Services Corporation v. Camote it was
held that are RA No. 8042 explicitly prohibits the substitution or alteration to the prejudice of the Q: Employees culpability hinges on his active participation in the commission
worker, of employment contracts already approved and verified by DOLE from the time of actual
A: In People v. Chowdery in resolving the fundamental issue of whether accused-appellant knowingly with the POEA. Illegal recruitment in large scale is malum prohibitum not malum in se. Good faith is
and intentionally participated in the commission of the crime charged. The Court declared that he not a defense.
did not. The corporation also includes criminal liability for the act of its employee or agent if (1) the
employee or agent committed the offense when acting within the scope of his employment and (2) Art. 39. Penalties.
the offense was committed with at least some intend to benefit the employer. 
a. The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P100,000.00) shall
The liability is imputed to the corporation not because it actively participated in the malice or fraud be imposed if illegal recruitment constitutes economic sabotage as defined herein;
but because the act is done for the benefit of the corporation whilel the employee or agent was b. Any licensee or holder of authority found violating or causing another to violate any provision of
acting within the scope of his employment in the business of the corporation and justice requires this Title or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty
that the latter shall be held liable for damages to the individual who suffered by such conduct. of imprisonment of not less than two years nor more than five years or a fine of not less than
P10,000 nor more than P50,000, or both such imprisonment and fine, at the discretion of the court;
Rule on distinct impression on the power or ability to send abroad for work. c. Any person who is neither a licensee nor a holder of authority under this Title found violating any
An Illegal recruiter need not expressly represent to the victim that she has the ability to send provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the
workers abroad It is enough that she gives the impression of her ability to enlist the workers for job penalty of imprisonment of not less than four years nor more than eight years or a fine of not less
placement abroad in order to induce them to tender payment of fees.  than P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion of the
court;
To be engaged in the practice of recruitment and placement it is plain that there must, at least, be a d. If the offender is a corporation, partnership, association or entity, the penalty shall be imposed
promise or an offer of employment from the person posing as a recruiter whether locally or abroad.  upon the officer or officers of the corporation, partnership, association or entity responsible for
violation; and if such officer is an alien, he shall, in addition to the penalties herein prescribed, be
Q: What is the effect of failure to present receipts in illegal recruitment? deported without further proceedings;
A: In the case of Romero v. People, the Court ruled that in illegal recruitment cases, the failure to e. In every case, conviction shall cause and carry the automatic revocation of the license or authority
present receipts for money that was paid in connection with the recruitment process will not affect and all the permits and privileges granted to such person or entity under this Title, and the forfeiture
the strength of the evidence presented by the prosecution as long as the payment can be proved of the cash and surety bonds in favor of the Overseas Employment Development Board or the
through clear and convincing testimonies of credible witnesses National Seamen Board, as the case may be, both of which are authorized to use the same
exclusively to promote their objectives.
Q: What is the effect of accepting payments after expiration of license?
A: The payments for services rendered are necessary consequences of the application for overseas I.Penalties for Illegal Recruitment Under the Labor Code
employment.However, it is asking too much to expect a licensed agency to absolutely at the stroke a)If illegal recruitment constitutes economic sabotage
of midnight stop all transactions on the day its license expires and refuse to accept carry-over Life imprisonment; and
payments after the agency is closed. In any business, there has  to be a winding-up after it ceases Fine of 100,000.00.
operations. The collection of unpaid accounts should not be the basis of a criminal prosecution. b)Any licensee or holder of authority found violating or causing another to violate any provision of
this Title or its IRR
Q: When evidence of certification on license to recruit is not required Imprisonment of not less than two years nor more than five years; or
A: A certification on whether a person had a license to recruit or not is inconsequential in   illegal Fine of not less than P10,000 nor more than P50,000; or 
recruitment under section 6 (m) of R.A. 9262. Both. 
c)Any person who is neither a licensee nor a holder of authority under this Title found violating any
In People v. Ocden, the Court ruled that it is not necessary for the prosecution to present a provision thereof or its IRR
certification that Ocden is a non-licensee or non-holder of authority to lawfully engage in the Imprisonment of not less than four years nor more than eight years; or 
recruitment and placement of workers. Fine of not less than P20,000 nor more than P100,000; or 
Both.
Q: POEA must authorized the agents or representatives appointed by a licensee 
A: In the case of  People v. Fajardo, an appellant cannot escape liability by claiming that she was not
aware that before working for her employer in the recruitment agency, she should first be registered
II.Who are liable  (Section 7 of R.A. No. 8042, Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Section 6 of R.A. No. 10022)
If the offender is a corporation, partnership, association or entity- penalty shall be imposed upon the
officer or officers of the corporation, partnership, association or entity responsible for violation; and  VII.Offender is a corporation, partnership, association or entity- who shall be liable
If such officer is an alien, he shall, in addition to the penalties herein prescribed, be deported without The officers having ownership, control, management or direction if their business who are
further proceedings. responsible for the commission of the offense and the responsible employees/agents thereof. 

III.Administrative Sanctions -  (Section 6 of R.A. No. 8042, Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Automatic revocation of the license or authority and all the permits and privileges granted to such Section 5 of R.A. No. 10022 and Section 2, Rule IV, Omnibus Rules and Regulations Implementing the
person or entity under this Title; and  Migrant Workers and Overseas Filipinos Ac of 1995, as amended by R.A. No. 10022)
The forfeiture of the cash and surety bonds in favor of the Overseas Employment Development
Board or the National Seamen Board. ART. 40. Employment Permit of Non-resident Aliens

IV.Prescription of Illegal Recruitment Under the Labor Code-  Q: Who are the coverage of alien employment permit?
Offenses penalized under this Code all rules and regulations issued oursuant thereto shall prescribe A; Any alien seeking admission to the Philippines for employment purposes and any domestic or
in 3 years. (Art. 305, Labor Code) foreign employer who desires to engage an alien for employment in the philippines shall obtain an
employment permit from the Department of Labor and Employment. (Art. 40, par. 1 of Labor Code)
V.Penalties of Illegal Recruitment under R.A. No. 8042, as amended by R.A. No. 10022
a.Penalty For (simple) illegal recruitment-  Q: When to issue an alien employment permit?
Imprisonment of not less than twelve (12) years and one (1) day but not more than twenty (20) A: The employment permit may be issued to a non-resident alien or to the applicant employer after
years; and  a determination of the non-availability of a person in the Philippines who is competent, able and
Fine of not less than One million pesos (P1,000,000.00) nor more than Two million pesos willing at the time of application to perform the services for which the alien is desired
(P2,000,000.00).
b.Penalty for any of the prohibited acts-  For an enterprise registered in preferred areas of investment, the employ permit of the government
Imprisonment of not less than six (6) years and one (1) day but not more than twelve (12) years; charged with the supervision of said registered enterprised. 
and  
Fine of not less than Five hundred thousand pesos (P500,000.00) nor more than One million pesos Q: Is the alien employment permit an exclusive authority for a foreign national to work in the
(P1,000,000.00). Philippines?
c.Penalty if Illegal Recruitment constitutes an economic sabotage-  A: No, it is just one of the requirements in the issuance of a work visa to legally engaged in gainful
Life imprisonment; and  employment in the country. The foreign national must obtain the required Special Temporary Permit
Fine of not less than Two million pesos (P2,000,000.00) nor more than Five million pesos (STP) from the Professional Regulation Commission (PRC) in case the employment involves practice
(P5,000,000.00)  of profession and authority to employ alien from the Department of Justice (DOJ) where the
d.Penalty if the person illegally recruited is less than eighteen (18) years of age or committed by a employment is in a nationalized industry and Department of Environment and National Resources
non-licensee or non-holder of authority and the offender is an alien (DENR) in case of mining. 
The maximum penalty shall be imposed.
If the offender is an alien- additional penalty of deportation without further proceedings.  Q: Who are exempted from the coverage?
A: The following categories of foreign nationals are exempt from securing an employment permit:
(Section 7 of R.A. No. 8042, Migrant Workers and Overseas Filipinos Act of 1995, as amended by
Section 6 of R.A. No. 10022) 1.All members of the diplomatic service and foreign government officials accredited by and with
reciprocity arrangement with the Philippine government;
VI.Administrative Sanctions in case of conviction for Illegal Recruitment
Automatic revocation of the license or registration of the recruitment/manning agency, lending 2.Officers and staff of international organizations of which the Philippine government is a member,
institutions, training school or medical clinic. and their legitimate spouses desiring to work in the Philippines;
3.Owners and representatives of foreign principals whose companies are accredited by POEA, who Q: What is the penalty of working without AEP
come to the Philippines for a limited period and Solely for the purpose of interviewing Filipino
applicants for employment abroad; A: The Regional Director shall impose a fine of Ten Thousand Pesos (10,000) for every year or a
fraction thereof to foreign national found working without a valid AEP. Employers found employing
4.Foreign nationals who come to the Philippines to teach, present and/or conduct research studies foreign nationals without a valid AEP shall also pay a fine of Ten Thousand Pesos (10,000) for every
in universities and colleges as visiting, exchange or adjunct professors and under formal agreements year or a fraction thereof. 
between the universities or colleges in the Philippines and foreign government: provided that the
exemption is on a reciprocal basis. Q:  is hiring of a foreign national is an employer's prerogative?
A: No, under article 40 of the labor code an employer seeking employment of an alien must first
5.Permanent resident foreign nationals and probationary or temporary resident visa holders under obtain and employment permit from the Department of Labor. In the case of General Milling
section 13 (a-f) of the Philippine Immigration Act of 1940 and Section 3 of the Alien Social Integration Corporation v. Torres, petitioner GMC’s right to choose whom to employ, is of course, limited by
Act of 1995; statutory requirement of an alien employment permit.

6.Refugees and Stateless Persons recognized by DO pursuant to Article 17 of the UN Convention and Article 41. Prohibition against transfer of employment.
Protocol Relating to status of Refugees and Stateless Persons; and
7.All foreign nationals granted exemption by law.  a)After the issuance of an employment permit, the alien shall not transfer to another job or change
his employer without prior approval of the Secretary of Labor.
Q: What is the Processing Period of AEP b)Any non-resident alien who shall take up employment in violation of the provision of this Title and
A: Applications for new AEP shall be processed and an AEP shall be issued within 3 working days its implementing rules and regulations shall be punished in accordance with the provisions of Articles
after publication and payment of required fees and fines, if there are any. 289 and 290 of the Labor Code.

Applications for renewal of AEP shall be processed within 1 day after receipt. Question: Can an alien transfer to another job or change his employer after the issuance of an
employment permit?
Validity of AEP Answer: Yes

The AEP shall be valid  for a period of one (1)  year unless the employment contract or other modes Question: Is there any requirement?
of engagement provides otherwise, which in no case shall exceed three (3) years Answer: Yes. The alien must obtain the approval of the Secretary of Labor.

Renewal Question: Who may be liable other than the non-resident alien who violate the prohibition against
transfer of employment?
 An application for renewal of AEP shall be filed not earlier than sixty (60) days before its expiration. Answer: Article 289 provides that if the offense is committed by a corporation, trust, firm,
partnership, association or any other entity, the penalty shall be imposed upon the guilty officer or
Q: Can AEP be cancelled or revoked?  officers of such corporation, trust, firm, partnership, association or entity.
A: Yes, the Regional Director may, motu propio or upon petition, cancel, or revoke an AEP after due
process.  Question: Does the action for such violation prescribe?
Answer: Yes. The action shall prescribe in 3 years (Article 290)
Q: What is the  effect of denial or cancellation or revocation of AEP
A: A foreign national whose AEP has been denied or cancel is disqualified to re-apply within a period Article 42. Submission of list
of  ten (10) years in case the grounds for denial or cancellation is any of the following:
Any employer employing non-resident foreign nationals on the effective date of this Code shall
1.Conviction of criminal offense or fugitive from justice in the country or abroad; or submit a list of such nationals to the Secretary of Labor within thirty (30) days after such date
2.Grave misconduct in dealing with or ill treatment of workers, indicating their names, citizenship, foreign and local addresses, nature of employment and status of
stay in the country. The Secretary of Labor shall then determine if they are entitled to an
employment permit.

Question: When must an employer submit a list to the Secretary of Labor of their non-resident
foreign national employees?
Answer: Within 30 days after employing such non-resident foreign nationals.

Question: What should be indicated in the list?

Answer: Names, citizenship, foreign and local addresses, nature of employment and status of stay in
the country of the non-resident foreign employees.