Title I
RECRUITMENT AND PLACEMENT OF WORKERS
Chapter I
GENERAL PROVISIONS
Article 13. Definitions.
"Worker" means any member of
the labor force, whether employed or unemployed.
"Recruitment and placement"
refers to any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes referrals, contract
services, promising or advertising for employment, locally or abroad, whether
for profit or not: Provided, That any person or entity which, in any manner,
offers or promises for a fee, employment to two or more persons shall be deemed
engaged in recruitment and placement.
"Private fee-charging employment
agency" means any person or entity engaged in recruitment and placement of
workers for a fee which is charged, directly or indirectly, from the workers or
employers or both.
"License" means a document
issued by the Department of Labor authorizing a person or entity to operate a
private employment agency.
"Private recruitment entity"
means any person or association engaged in the recruitment and placement of
workers, locally or overseas, without charging, directly or indirectly, any fee
from the workers or employers.
"Authority" means a document
issued by the Department of Labor authorizing a person or association to engage
in recruitment and placement activities as a private recruitment entity.
"Seaman" means any person
employed in a vessel engaged in maritime navigation.
"Overseas employment" means
employment of a worker outside the Philippines.
"Emigrant" means any person,
worker or otherwise, who emigrates to a foreign country by virtue of an
immigrant visa or resident permit or its equivalent in the country of destination.
Article 14. Employment
promotion. The Secretary of Labor shall have the power and authority:
To organize and establish new employment
offices in addition to the existing employment offices under the Department of
Labor as the need arises;
To organize and establish a nationwide
job clearance and information system to inform applicants registering with a
particular employment office of job opportunities in other parts of the country
as well as job opportunities abroad;
To develop and organize a program that
will facilitate occupational, industrial and geographical mobility of labor and
provide assistance in the relocation of workers from one area to another; and
To require any person, establishment,
organization or institution to submit such employment information as may be
prescribed by the Secretary of Labor.
Article 15. Bureau of
Employment Services.
The Bureau of Employment Services shall
be primarily responsible for developing and monitoring a comprehensive
employment program. It shall have the power and duty:
To formulate and develop plans and
programs to implement the employment promotion objectives of this Title;
To establish and maintain a registration
and/or licensing system to regulate private sector participation in the
recruitment and placement of workers, locally and overseas, and to secure the
best possible terms and conditions of employment for Filipino contract workers
and compliance therewith under such rules and regulations as may be issued by
the Minister of Labor;
To formulate and develop employment
programs designed to benefit disadvantaged groups and communities;
To establish and maintain a registration
and/or work permit system to regulate the employment of aliens;
To develop a labor market information
system in aid of proper manpower and development planning;
To develop a responsive vocational
guidance and testing system in aid of proper human resources allocation; and
To maintain a central registry of skills,
except seamen.
The regional offices of the Ministry of
Labor shall have the original and exclusive jurisdiction over all matters or
cases involving employer-employee relations including money claims, arising out
of or by virtue of any law or contracts involving Filipino workers for overseas
employment except seamen: Provided, That the Bureau of Employment Services may,
in the case of the National Capital Region, exercise such power, whenever the
Minister of Labor deems it appropriate. The decisions of the regional offices
of the Bureau of Employment Services, if so authorized by the Minister of Labor
as provided in this Article, shall be appealable to the National Labor
Relations Commission upon the same grounds provided in Article 223 hereof. The
decisions of the National Labor Relations Commission shall be final and
inappealable. (Superseded by Exec. Order 797, May 1, 1982).
The Minister of Labor shall have the
power to impose and collect fees based on rates recommended by the Bureau of
Employment Services. Such fees shall be deposited in the National Treasury as a
special account of the General Fund, for the promotion of the objectives of the
Bureau of Employment Services, subject to the provisions of Section 40 of
Presidential Decree No. 1177.
Article 16. Private
recruitment. Except as provided in Chapter II of this Title, no person
or entity other than the public employment offices, shall engage in the
recruitment and placement of workers.
Article 17. Overseas
Employment Development Board. An Overseas Employment Development Board
is hereby created to undertake, in cooperation with relevant entities and
agencies, a systematic program for overseas employment of Filipino workers in
excess of domestic needs and to protect their rights to fair and equitable
employment practices. It shall have the power and duty:
To promote the overseas employment of
Filipino workers through a comprehensive market promotion and development
program;
To secure the best possible terms and
conditions of employment of Filipino contract workers on a
government-to-government basis and to ensure compliance therewith;
To recruit and place workers for overseas
employment on a government-to-government arrangement and in such other sectors
as policy may dictate; and
To act as secretariat for the Board of
Trustees of the Welfare and Training Fund for Overseas Workers.
Article 18. Ban on
direct-hiring. No employer may hire a Filipino worker for overseas
employment except through the Boards and entities authorized by the Secretary
of Labor. Direct-hiring by members of the diplomatic corps, international
organizations and such other employers as may be allowed by the Secretary of
Labor is exempted from this provision.
Article 19. Office of
Emigrant Affairs.
Pursuant to the national policy to
maintain close ties with Filipino migrant communities and promote their welfare
as well as establish a data bank in aid of national manpower policy
formulation, an Office of Emigrant Affairs is hereby created in the Department
of Labor. The Office shall be a unit at the Office of the Secretary and shall
initially be manned and operated by such personnel and through such funding as
are available within the Department and its attached agencies. Thereafter, its
appropriation shall be made part of the regular General Appropriations Decree.
The office shall, among others, promote
the well-being of emigrants and maintain their close link to the homeland by:
serving as a liaison with migrant
communities;
provision of welfare and cultural
services;
promote and facilitate re-integration of
migrants into the national mainstream;
promote economic; political and cultural
ties with the communities; and
generally to undertake such activities as
may be appropriate to enhance such cooperative links.
Article 20. National
Seamen Board.
A National Seamen Board is hereby created
which shall develop and maintain a comprehensive program for Filipino seamen
employed overseas. It shall have the power and duty:
To provide free placement services for seamen;
To regulate and supervise the activities
of agents or representatives of shipping companies in the hiring of seamen for
overseas employment and secure the best possible terms of employment for
contract seamen workers and secure compliance therewith;
To maintain a complete registry of all
Filipino seamen.
The Board shall have original and
exclusive jurisdiction over all matters or cases including money claims,
involving employer-employee relations, arising out of or by virtue of any law
or contracts involving Filipino seamen for overseas employment. The decisions
of the Board shall be appealable to the National Labor Relations Commission
upon the same grounds provided in Article 223 hereof. The decisions of the
National Labor Relations Commission shall be final and inappealable.
Article 21. Foreign
service role and participation. To provide ample protection to
Filipino workers abroad, the labor attaches, the labor reporting officers duly
designated by the Secretary of Labor and the Philippine diplomatic or consular
officials concerned shall, even without prior instruction or advice from the
home office, exercise the power and duty:
To provide all Filipino workers within
their jurisdiction assistance on all matters arising out of employment;
To insure that Filipino workers are not
exploited or discriminated against;
To verify and certify as requisite to
authentication that the terms and conditions of employment in contracts
involving Filipino workers are in accordance with the Labor Code and rules and
regulations of the Overseas Employment Development Board and National Seamen
Board;
To make continuing studies or researches
and recommendations on the various aspects of the employment market within
their jurisdiction;
To gather and analyze information on the
employment situation and its probable trends, and to make such information
available; and
To perform such other duties as may be
required of them from time to time.
Article 22. Mandatory
remittance of foreign exchange earnings. It shall be mandatory for all
Filipino workers abroad to remit a portion of their foreign exchange earnings
to their families, dependents, and/or beneficiaries in the country in
accordance with rules and regulations prescribed by the Secretary of Labor.
Article 23. Composition of
the Boards.
The OEDB shall be composed of the
Secretary of Labor and Employment as Chairman, the Undersecretary of Labor as
Vice-Chairman, and a representative each of the Department of Foreign Affairs,
the Department of National Defense, the Central Bank, the Department of
Education, Culture and Sports, the National Manpower and Youth Council, the
Bureau of Employment Services, a workers’ organization and an employers’
organization and the Executive Director of the OEDB as members.
The National Seamen Board shall be
composed of the Secretary of Labor and Employment as Chairman, the
Undersecretary of Labor as Vice-Chairman, the Commandant of the Philippine
Coast Guard, and a representative each of the Department of Foreign Affairs,
the Department of Education, Culture and Sports, the Central Bank, the Maritime
Industry Authority, the Bureau of Employment Services, a national shipping
association and the Executive Director of the NSB as members.
The members of the Boards shall receive
allowances to be determined by the Board which shall not be more than P2,000.00
per month.
The Boards shall be attached to the
Department of Labor for policy and program coordination. They shall each be
assisted by a Secretariat headed by an Executive Director who shall be a Filipino
citizen with sufficient experience in manpower administration, including
overseas employment activities. The Executive Director shall be appointed by
the President of the Philippines upon the recommendation of the Secretary of
Labor and shall receive an annual salary as fixed by law. The Secretary of
Labor shall appoint the other members of the Secretariat.
The Auditor General shall appoint his
representative to the Boards to audit their respective accounts in accordance
with auditing laws and pertinent rules and regulations.
Article 24. Boards to
issue rules and collect fees. The Boards shall issue appropriate rules
and regulations to carry out their functions. They shall have the power to
impose and collect fees from employers concerned, which shall be deposited in
the respective accounts of said Boards and be used by them exclusively to
promote their objectives.
Chapter II
REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
Article 25. Private sector
participation in the recruitment and placement of workers. Pursuant to
national development objectives and in order to harness and maximize the use of
private sector resources and initiative in the development and implementation
of a comprehensive employment program, the private employment sector shall
participate in the recruitment and placement of workers, locally and overseas,
under such guidelines, rules and regulations as may be issued by the Secretary
of Labor.
Article 26. Travel agencies
prohibited to recruit. Travel agencies and sales agencies of airline
companies are prohibited from engaging in the business of recruitment and
placement of workers for overseas employment whether for profit or not.
Article 27. Citizenship
requirement. Only Filipino citizens or corporations, partnerships or
entities at least seventy-five percent (75%) of the authorized and voting
capital stock of which is owned and controlled by Filipino citizens shall be
permitted to participate in the recruitment and placement of workers, locally
or overseas.
Article 28. Capitalization. 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.
Article 29. Non-transferability
of license or authority. No license or authority shall be used
directly or indirectly by any person other than the one in whose favor it was
issued or at any place other than that stated in the license or authority be
transferred, conveyed or assigned to any other person or entity. Any transfer
of business address, appointment or designation of any agent or representative
including the establishment of additional offices anywhere shall be subject to
the prior approval of the Department of Labor.
Article 30. Registration
fees. The Secretary of Labor shall promulgate a schedule of fees for
the registration of all applicants for license or authority.
Article 31. Bonds. All
applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor to guarantee compliance with prescribed
recruitment procedures, rules and regulations, and terms and conditions of
employment as may be appropriate.
Article 32. Fees to be
paid by workers. Any person applying with a private fee-charging
employment agency for employment assistance shall not be charged any fee until
he has obtained employment through its efforts or has actually commenced
employment. Such fee shall be always covered with the appropriate receipt
clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.
Article 33. Reports on
employment status. 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.
Article 34. Prohibited
practices. It shall be unlawful for any individual, entity, licensee,
or holder of authority:
To charge or accept, directly or
indirectly, any amount greater than that specified in the schedule of allowable
fees prescribed by the Secretary of Labor, or to make a worker pay any amount
greater than that actually received by him as a loan or advance;
To furnish or publish any false notice or
information or document in relation to recruitment or employment;
To give any false notice, testimony,
information or document or commit any act of misrepresentation for the purpose
of securing a license or authority under this Code.
To induce or attempt to induce a worker
already employed to quit his employment in order to offer him to another unless
the transfer is designed to liberate the worker from oppressive terms and
conditions of employment;
To influence or to attempt to influence
any person or entity not to employ any worker who has not applied for
employment through his agency;
To engage in the recruitment or placement
of workers in jobs harmful to public health or morality or to the dignity of
the Republic of the Philippines;
To obstruct or attempt to obstruct
inspection by the Secretary of Labor or by his duly authorized representatives;
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.
To substitute or alter employment
contracts approved and verified by the Department of Labor from the time of
actual signing thereof by the parties up to and including the periods of
expiration of the same without the approval of the Secretary of Labor;
To become an officer or member of the
Board of any corporation engaged in travel agency or to be engaged directly or
indirectly in the management of a travel agency; and
To withhold or deny travel documents from
applicant workers before departure for monetary or financial considerations
other than those authorized under this Code and its implementing rules and
regulations.
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.
Chapter III
MISCELLANEOUS PROVISIONS
Article 36. Regulatory
power. The Secretary of Labor shall have the power to restrict and
regulate the recruitment and placement activities of all agencies within the
coverage of this Title and is hereby authorized to issue orders and promulgate
rules and regulations to carry out the objectives and implement the provisions
of this Title.
Article 37. Visitorial
Power. The Secretary of Labor or his duly authorized representatives
may, at any time, inspect the premises, books of accounts and records of any
person or entity covered by this Title, require it to submit reports regularly
on prescribed forms, and act on violation of any provisions of this Title.
Article 38. Illegal
recruitment.
Any recruitment activities, including the
prohibited practices enumerated under Article 34 of this Code, to be undertaken
by non-licensees or non-holders of authority, shall be deemed illegal and
punishable under Article 39 of this Code. The Department of Labor and
Employment or any law enforcement officer may initiate complaints under this
Article.
Illegal recruitment when committed by a
syndicate or in large scale shall be considered an offense involving economic
sabotage and shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed
by a syndicate if carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in carrying out any unlawful
or illegal transaction, enterprise or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed committed in large scale if committed
against three (3) or more persons individually or as a group.
The Secretary of Labor and Employment or
his duly authorized representatives shall have the power to cause the arrest
and detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger to
national security and public order or will lead to further exploitation of
job-seekers. The Secretary shall order the search of the office or premises and
seizure of documents, paraphernalia, properties and other implements used in
illegal recruitment activities and the closure of companies, establishments and
entities found to be engaged in the recruitment of workers for overseas
employment, without having been licensed or authorized to do so.
Article 39. Penalties.
The penalty of life imprisonment and a
fine of One Hundred Thousand Pesos (P1000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein;
Any licensee or holder of authority found
violating or causing another to violate any provision of this Title or its
implementing rules and regulations shall, upon conviction thereof, suffer the
penalty 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;
Any person who is neither a licensee nor
a holder of authority under this Title found violating any provision thereof or
its implementing rules and regulations shall, upon conviction thereof, suffer
the penalty of imprisonment of not less than four years nor more than eight
years or a fine of not less than P20,000 nor more than P100,000 or both such
imprisonment and fine, at the discretion of the court;
If the offender is a corporation,
partnership, association or entity, the penalty shall be imposed upon the
officer or officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall, in
addition to the penalties herein prescribed, be deported without further
proceedings;
In every case, conviction shall cause and
carry the automatic revocation of the license or authority and all the permits
and privileges granted to such person or entity under this Title, and the
forfeiture of the cash and surety bonds in favor of the Overseas Employment
Development Board or the National Seamen Board, as the case may be, both of
which are authorized to use the same exclusively to promote their objectives.
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