ART. 12. Statement of Objectives. It is the policy of the
State —
To promote and maintain a state of full employment through improved
manpower training, allocation and utilization;
To protect every citizen desiring to work locally or overseas
by securing for him the best possible terms and conditions of
employment;
To facilitate a free choice of available employment by persons
seeking work in conformity with the national interest;
To facilitate and regulate the movement of workers in
conformity with the national interest;
To regulate the employment of nonresident aliens;
To strengthen the network of public employment offices and to
undertake the phasing out of private fee-charging employment agencies;
and
To insure careful selection of Filipino workers for overseas
employment in order to protect the good name of the Philippines abroad.
Definition of Terms.
ART. 13. Definition of Terms. — (a) "Private fee-charging
employment agency" means any individual or entity engaged in the
business of recruitment and placement of workers for a fee, whether the
fee is charged from the workers or from the employers or both.
"Private non-fee-charging employment agency" refers to any
individual or entity engaged in the recruitment and placement of workers
free of charge, whether from the workers or from the employers or both.
"Recruitment" refers to any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring or procuring
workers, including referrals, contact services, promising
employment or advertising for employment locally or abroad whether for
profit or not: Provided, That whenever two or more persons are
in any manner promised or offered employment for a fee, the individual
or entity making such offer or promise shall be deemed engaged in
recruitment.
"Worker" or "Employee" includes any individual employed by an
employer or any person hired to perform service of any kind for a
valuable consideration, including household or domestic helpers and crew
members of vessels or seamen.
"Immigrant worker" means any person who works in a foreign
country by virtue of an immigrant visa or resident permit as
distinguished from a work permit or working visa.
"License" means a document issued to an individual or entity by
the Department of Labor authorizing such individual or entity to operate
private fee-charging employment agency.
"Authority" refers to the document issued to any person or entity
by the Department of Labor authorizing such person or entity to operate
a private non-fee-charging employment agency.
"Seamen" includes all persons employed on any vessel
engaged in maritime navigation.
Employment Promotion.
ART. 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;
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;
Develop and organize programs that will facilitate occupational,
industrial and geographical mobility of labor and provide assistance in
the relocation of workers from one area to another; and
Require any person, establishment, organization or institution to
submit such employment information as may be prescribed by the
Secretary of Labor.
Power to Phase Out.
ART. 15. Power to Phase Out. — The Department
of Labor shall phase out within four (4) years from the effectivity of
this Code the operation of all private fee-charging employment agencies,
including those engaged in the overseas recruitment and placement of
individuals for personal services or for the crew of a vessel.
Upon the completion of such phaseout, no person or entity shall directly
or indirectly engage, for profit or any pecuniary or material
advantage, in any recruitment or placement activity. Non-fee-charging
employment agencies or placement services undertaken by schools or by
civic or charitable organizations or by employers for their own use may
continue under such rules and regulations as may be promulgated by the
Secretary of Labor.
ART. 16, Over-seas Employment Development Board, Creation of.
— An Overseas Employment Development Board is hereby created to
undertake a systematic program for overseas employment of Filipino
workers, other than seamen, in excess of domestic needs and to protect
their rights to fair and equitable employment practices.
It shall seek to:
Meet the increasing demand for trained and competent Filipino
workers in foreign countries;
Generate foreign exchange from the earnings of Filipinos
employed under the program;
Promote the employment of Filipinos under
government-to-government arrangement;
Secure better terms and conditions of employment of Filipino
workers overseas; and
Promote the development of the skills and careful selection of
employment of Filipino workers for overseas employment.
The Board shall be attached to the Department of Labor for policy and
program coordination and for the efficient conduct of its duties.
Composition of Overseas Employment Development Board.
ART. 17. Composition of Overseas Employment Development Board.
— The Board shall be composed of:
The Secretary of Labor as Chairman and a representative each of the
Department of National Defense, the Department of Foreign Affairs, the
Central Bank and the Department of Justice, as members.
The Board shall be assisted by a Secretariat headed by an Executive
Director. The Executive Director shall be appointed by the President of
the Philippines upon recommendation of the Secretary of Labor who shall
appoint the members of the Secretariat. The Executive Director and
members of the Secretariat shall be exempt from the provisions of laws,
rules and regulations of the Wage and Position Classification Office
except clerical and janitorial services.
The Executive Director shall be a Filipino citizen with sufficient
experience in manpower administration, including overseas employment
activities.
The Executive Director shall receive an annual salary of P40,000 and a
commutable representation and transportation allowance of P500 a month.
The Auditor General shall appoint his representative to the Board to
audit its accounts in accordance with auditing laws and pertinent rules
and regulations.
The Chairman and all members of the Board shall each receive a per diem
of P100 for their attendance of every meeting of the Board: Provided,
That where the representative of an ex officio member attends a meeting
in behalf of the latter, such representative shall be entitled to
receive the per diem.
Board Authorized to Collect Fees.
ART. 18. Board Authorized to Collect Fees. —The Board
shall have the power to impose and collect fees from workers and
employers concerned or both, the proceeds of which shall accrue to a
special fund to be used exclusively for the promotion of the objectives
of the Board.
Board to Issue Rules and Regulations.
ART. 19. Board to Issue Rules and Regulations. —The
Board shall issue appropriate rules and regulations to carry out its
functions.
National Seamen Board, Creation of.
ART. 20. National Seamen Board, Creation of. —
There is hereby created a body to be known as a National Seamen Board.
It shall:
Establish and maintain a comprehensive seamen training program;
Provide free placement services for seamen;
Obtain the best possible terms and conditions of
employment for seamen;
Secure full implementation of the employment contracts of
seamen; and
Maintain a complete registry of all seamen.
Composition of National Seamen Board.
ART. 21. Composition of National Seamen Board. — The Board
shall be attached to the Department of Labor for policy and program
coordination and shall be composed of: the Secretary of Labor as
Chairman, the Commandant of the Philippine Coast Guard, and a
representative of each of the Department of Foreign Affairs, a national
seafarers organization and a national shipping association, as members.
The Chairman and all members of the Board shall each receive a per diem
of F100 for their attendance of every meeting of the Board: Provided,
That where the representative of the ex officio member attends
a meeting in behalf of the latter, such representative shall be
entitled to receive the per diem.
The Board shall be assisted by a Secretariat headed by an Executive
Director. The Executive Director and members of the Secretariat shall be
exempt from the provisions of laws, rules and regulations of the Wage
and Position Classification Office except clerical and janitorial
services.
The Executive Director shall be a Filipino citizen with sufficient
experience in manpower administration, including overseas employment
activities.
The Executive Director shall receive an annual salary of P24,000 and a
commutable representation and transportation allowance of P500 a month.
The Auditor General shall appoint his representative to the Board to
audit its accounts in accordance with auditing laws and pertinent rules
and regulations.
Board Authorized to Collect Fees.
ART. 22. Board Authorized to Collect Fees. — The Board
shall have the power to impose and collect fees from workers and
employers concerned or both, the proceeds of which shall accrue to a
special fund to be used exclusively for the promotion of the objectives
of the Board.
Board to Issue Rules and Regulations.
ART. 23. Board to Issue Rules and Regulations. — The Board
shall issue appropriate rules and regulations to carry out its
functions.
Authority or License to Recruit.
ART. 24. Authority or License to Recruit. — No
.individual or entity may engage in the business of a private
fee-charging employment agency without first obtaining a license from
the Department of Labor.
No individual or entity may operate a private non-fee-charging
employment agency without first obtaining an authority from the
Department of Labor.
Travel Agencies Prohibited to Recruit.
ART. 25. Travel Agencies Prohibited to Recruit. — Travel
agencies are prohibited from engaging in the business of recruitment and
placement of workers for overseas employment whether for profit or not.
The Secretary of Labor shall issue rules and regulations establishing
the requirements and the procedures for the issuance of a license or
authority.
Every existing authority or license to hire or recruit workers on the
date of effectivity of this Code shall remain valid for the duration
indicated therein unless sooner cancelled, revoked, or suspended for
cause by the Secretary of Labor. However, said authority or license to
hire or recruit may be renewed: Provided, That the holders
thereof shall comply with all applicable provisions of this Code and its
implementing rules and regulations.
Citizenship Requirement.
ART. 26. Citizenship Requirement. — No license or
authority to recruit or hire workers shall be issued or renewed except
in favor of Filipino citizens or corporations, partnerships or entities
at least 60 percent of the authorized capital stock of which is owned
and/or controlled by Filipino citizens.
Capitalization.
ART. 27. Capitalization. — All applicants for
license to recruit and currently licensed recruiters for overseas
employment are required to have a minimum capitalization or assets in
the amount of P150,000 in the case of private individuals and a paid-up
capital of P150,000 in the case of corporations, partnerships or other
entities.
Nontransferability of License or Authority.
ART. 28. Nontransferability of License or Authority.
— No license or authority shall be issued directly or indirectly by any
person other than the one in whose favor it was issued at any place
other than that stated in the license or authority, nor may such 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.
License Fee.
ART. 29. License Fee. — Any private fee-charging
employment agency applying for license or renewal thereof under this
Code shall file a written application with the Secretary of Labor and
shall pay to the account of the Department of Labor an annual license
fee of P2,000 in the case of recruitment for local employment and P6,000
in the case of recruitment for overseas employment.
Bond.
ART. 30. Bond. - Any private fee-charging
employment agency shall post a cash bond in the amount of P10,000 and a
surety bond in the amount of P50,000 if engaged in recruitment for
overseas employment; a cash bond in the amount of P5,000 and a surety
bond in the amount of P25,000 if engaged in the recruitment for local
employment, to guarantee compliance with prescribed recruitment
procedures, rules and regulations and terms and conditions of employment
as appropriate.
The Secretary of Labor shall have the exclusive power to determine,
decide, order, or direct payment from or application of the cash and
surety bond for any claim or injury covered and guaranteed by the bond.
Allowable Fee.
ART. 31. Allowable Fee. — 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 approved receipt clearly showing the amount paid. The
Secretary of Labor shall promulgate a schedule of allowable fees.
Mandatory Remittance of Foreign Exchange Earnings.
ART. 32. Mandatory Remittance of Foreign Exchange
Earnings. — It shall be mandatory for all contract 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 in consultation
with the committee on mandatory remittance of foreign exchange earnings
established by the President under Letter of Instruction No. 90, dated
June 16, 1973.
Prohibited Practices.
ART. 33. 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 a worker from oppressive terms and conditions of
employment;
To influence or 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 period of expiration of the same without the approval of
the Department of Labor;
To become 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.
Suspension and/or Cancellation of License or Authority.
ART. 34. Suspension and/or Cancellation of License or
Authority. —The Secretary 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
Secretary of Labor, the Overseas Employment Development Board, and the
National Seamen Board, or for violations of the provisions of this and
other Presidential decrees, the Revised Penal Code, the Anti-Dummy Law,
general orders and letters of instruction.
Foreign Service Role/Participation.
ART. 35. Foreign Service Role/Participation. — To provide
ample protection to Filipino workers abroad, Philippine labor attaches
or labor reporting officers duly designated by the Secretary of Labor
through the Department of Foreign Affairs or any Philippine diplomatic
or consular officials concerned shall, even without prior instruction or
advice from the home office:
Provide counselling assistance to all Filipino workers within their
jurisdiction on all matters arising out of employment;
Ensure that Filipino workers are not exploited and
discriminated against;
Gather and analyze available information on the employment
situation, and its probable trends and to make such information
available to the Department of Labor and the Department of Foreign
Affairs for dissemination to the public;
Make continuous and special researches/studies and
recommendations on the various aspects of the employment market within
their jurisdictional area; and
Perform such other duties as may be required of them from time
to time.
Regulatory Powers.
ART. 36. Regulatory Powers. — (a) The Secretary of Labor
shall have the power to restrict and regulate the recruitment 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 hereof.
Whenever the public interest so 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, placement, vacancies,
details of job requisitions, separation from jobs, wages and other terms
and conditions of employment.
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 to act on violations of any
provisions under this Title.
Jurisdiction.
ART. 37. Jurisdiction.— (a) Any violation of the
provisions of this Title or its implementing rules and regulations as
promulgated by the Secretary of Labor shall fall
within the concurrent jurisdiction of the Military Tribunals and the
regular courts. The court that first assumes jurisdiction shall exclude
the other.
All matters or questions involving employer-employee relations,
including money claims arising from this Title, shall be under the
original and exclusive jurisdiction of the National Labor Relations
Commission.
Penalty.
ART. 38. Penalty. — Persons who arc licensees or holders
of authority under the provisions of this Title found violating or
causing another to violate any provisions of this Title or of the rules
and regulations issued thereunder shall, upon conviction thereof, suffer
the penalty of imprisonment of not less than two (2) years nor more
than five (5) years or a fine of not less than P2,000 nor more than
P30,000 or both imprisonment and fine at the discretion of the court;
while persons who are not licensees or holders of authority under this
Title found violating any provision of this Title shall upon conviction
therefor suffer the penalty of imprisonment of not less than Four (4)
years but not more than eight (8) years or a fine of not less than
P5,000 nor more than P35,000 or both imprisonment and fine at the
discretion of the court.
In addition thereto such conviction shall cause the automatic
forfeiture of the bond — cash as well as surety — in favor of the
special fund for the promotion of the objectives of the Overseas
Employment Development Board or the National Seamen Board, as the case
may be, and also the automatic revocation of the license or authority
and all permits and privileges granted to such person or entity under
this Title: Provided, however, That if the offender is a
corporation, partnership, association, or entity, the penalty shall be
imposed upon the guilty officer or officers, as the case may be, of the
corporation, partnership, association or entity; and if such guilty
officer is an alien, in addition to the penalties herein prescribed, he
shall be deported without further proceedings.
Employment Permit for Nonresident Aliens.
ART. 39. Employment Permit for Nonresident Aliens. — Any
alien seeking admission to the Philippines for employment purposes and
any domestic or foreign employer who desires to engage an alien for
employment in the Philippines shall obtain an employment permit from the
Department of Labor.
The employment permit may be issued to a nonresident alien or to the
applicant employer after a determination of the non-availability of a
person in the Philippines who is competent, able and willing at the time
of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said
employment permit may be issued upon recommendation of the government
agency charged with the supervision of said registered enterprise.
Prohibition Against Transfer of Employment.
ART. 40. Prohibition Against Transfer of Employment. —
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.
Submission of List.
ART. 41. Submission of List. — Any employer
employing nonresident foreign nationals on the effective date of this
Code shall submit a list of such nationals to the Secretary of Labor
within thirty (30) days after such date 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.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
