RECRUITMENT AND PLACEMENT FOR LOCAL AND ABROAD EMPLOYMENT

BUREAU OF LOCAL EMPLOYMENT

Statement of Objectives
It is the policy of the state:
1. To promote and maintain a state of full employment through improved manpower training,
allocation and utilization;
2. To protect every citizen deserving to work locally or overseas by securing for him the best
possible terms and conditions of employment:
3. To facilitate a free choice of available employment by persons seeking work in
conformity with the national interest;
4. To facilitate and regulate the movement of workers in conformity with the national interest;
 5. To regulate the employment of aliens, including the establishment of a
registration/ and or work permit system;
6. To strengthen the network of public employment offices and nationalize the participation of
the private sector in the recruitment and placement of workers, locally and overseas to serve
national development objectives;
7. To ensure careful selection of Filipino workers for overseas employment in order to protect
the good name of the Philippines abroad (Art. 12 Labor Code as amended).
Promotion of Employment
The Secretary of Labor shall have the power and authority.
1. To organize and establish new employment offices in addition to the existing employment
offices under the Department of Labor as the need arises;
2. 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 opportunities abroad:
3. 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
4. To require any person, establishment, organization or institution to submit
such employment information as may be prescribed by the Secretary of Labor
(Art. 14 Labor Code as amended).
Powers and Duites
Article 15 of the Labor Code of the Philippine as amended (PD 442) was modified / amended by
EO 797 issued on May 1, 1982 creating the Bureau of Local Employ ment (BLE) with the
following powers and duties.
1. To formulate policies, standards and procedures on productive manpower resources,
development, utilization and allocation.
 2. Establish and administer the machinery for effective allocation of manpower
resources for maximum employment and placement.
3. Regulate and supervise private sector participation in the recruitment and
placement of workers locally under such rules and regulations as may be issued by the
Secretary. 4. Establish and maintain a registration of work permit system to regulate
employment of aliens.
5. Develop and maintain labor market information system in aid of proper manpower and
development planning
6. Formulate employment programs designed to benefit disadvantaged groups and
communities; and
7. Perform such other functions as may be provided by law (Sec. 3 EO 797)
Recruitment and Placement
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 (Art. 13 (b) Labor Code as amended)
Recruitment includes that act of referral or the act of passing along or forwarding of an applicant
for employment to a selected employer, placement offices or bureau (People vs. Saley 291
SCRA 715).
The number of persons dealt with is not an essential ingredient of the act of recruitment and
placement of workers. The provision merely creates a presumption (People vs Panis GR No. L-
58674-77, July 17, 1986).
Private fee-charging Employment Agency
Private fee-charging employment agency means any person or entity engaged in the
recruitment and placement of workers for a fee which is charged, directly or indirectly, from the
workers or employers or both (Art. 13 (c) Labor Code as amended).
License
License means a document issued by the Department of Labor authorizing a
person or entity to operate a private employment agency (Art. 12 (d) Labor Code as
amended).
Private Recruitment Entity
Private recruitment entity means any person or an association engaged in the recruitment and
placement of workers locally or overseas, without charging, directly or
indirectly, any fee from the workers or employers (Art.13 (e) Labor Code as amended).
Authority
Authority means a document issued by the Department of Labor authorizing a person or
association to engage in and placement activities as a private recruitment entity (Art. 13 (f)
Labor Code as amended).
ILLEGAL RECRUITMENT FOR LOCAL EMPLOYMENT
Article 38 of the Labor Code as amended providing for illegal recruitment is deemed confined for
local employment since as regards the overseas, the illegal recruitment is provided in Section 7
RA 8042 otherwise known as Migrant workers and Overseas Filipinos Act of 1995.
The illegal recruitment as provided under Article 38 are as follows:
1. Any recruitment activities, including the prohibited practices enumerated under Article 34 of
this Code, to be undertaken by non-license or non-holders of authority shall be deemed illegal
and punishable under Article 39 of this Code. The Secretary of Labor and Employment or any
law enforcement officer
2. 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.
3. Paragraph C of Article 38 of the Labor Code as amended was declared by the Supreme
Court as null and void for being unconstitutional in the case of Salazar vs. Achacozo, et al G.R.
No. 81510 March 14, 1990 because only the court can issue Search Warrant and Warrant of
Arrest.
EMPLOYMENT OF NON-RESIDENT ALIEN
Employment Permit of Non-Resident Aliens
All foreign national seeking gainful employment in the Philippines or their prospective employers
shall file their applications with the DOLE Regional Office having jurisdiction over the intended
place of work. (Sec. 4 DO 146-15, August 20, 2015)
The applicant shall pay Php 9,000.00 for a valid permit of (one) 1 year and Php
4,000.00 for every additional year of validity. (Sec. 5 DO 146-15)
Grounds upon which Permit must be issued
Alien Employment Permit (AEP) shall be issued based on the following grounds:
1. Compliance by the applicant employer or the foreign national with the substantive and
documentary requirements;
2. Determination by the DOLE Secretary that there is no Filipino national who is competent, able
and willing to do the job for which the services of the applicant are desired; and
3. Assessment by the DOLE Secretary that the employment of the foreign national
will redound to national benefit.
Permit issued shall be Valid for Multiple Employment
The permits of resident foreign nationals shall be valid for multiple employment, regardless of
the nature and duration of their employment, provided that they shall report changes in their
employment status and the identity of their employers to the DOLE Regional Office which has
issued the permit. (7-4, Rule 11 Department Oder No. 7 Series of 2000)
Revocation/Cancellation of the Alien employment Permit (AEP) The Alien employment Permit
issued may be cancelled/revoked on the following
grounds:
1. Misrepresentation of facts or falsification of documents submitted;
2. The foreign national has been declared as an undesirable alien by competent authorities;
3. Non compliance with the conditions for which the AEP was issued;
4. Failure to renew AEP within one (1) year after its expiration (1.1-4, Rule 11 DO No. 07 Series
2000).
PHILIPPINE OVERSEAS EMPLOYMENT ADMINISTRATION (POEA)
Seaman
Seaman means any person employed in a vessel engaged in maritime navigation (Art. 13 (g)
Labor Code as amended).
Overseas Employment
Overseas employment means employment of a worker outside the Philippines (Art. 13 (h) Labor
Code as amended).
It is an employment of a worker outside the Philippines covered by a valid contract (POEA
Rules and Regulations Governing the Recruitment and Employment of Land Based overseas
Worker, Feb. 2, 2004).
Emigrant
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 (Art. 13 (i)
Labor Code as amended).
No Private Employment Agency
Except as provided by law, no person or entity, other than the public employment offices, shall
engage in the recruitment and placement of workers (Art. 16 Labor Code as amended).
Philippines Overseas Employment Administration (POEA)
Philippine Overseas Employment Administration (POEA) was created by Executive Order No.
797 issued on May 1, 1987. Thus, modifying Art. 17 of the Labor
While the functions of POEA are provided by Executive Order No. 247 issued on July 27, 1987
as follows:
1. Regulate private sector participation in the recruitment and overseas placement of workers by
setting up a licensing and regulation system;
2. Formulate and implement in coordination with appropriate entities concerned, when
necessary, a system for promoting and monitoring the overseas you employment Filipino
workers taking into consideration their welfare and the
domestic manpower requirements;
3. Protect the rights of the Filipino workers for overseas employment to fair and equitable
recruitment and employment practices and ensure their welfare; 4. Exercise original and
exclusive jurisdiction to hear and decide violation of the
conditions for issuance of license or authority to recruit workers (Sec.3 EO
No. 247)
Ban on Direct Hiring
No employer may hire a Filipino worker for overseas employment except through the POEA 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 (Art. 18 Labor Code as amended).
Commission on Filipino Overseas under the Foreign Affairs Department
Commission on Filipino overseas under the Department of Foreign Affairs was created by BP
29. Thereby amending Art. 19 of the Labor Code to wit:
The functions of the Commission on Filipino Overseas are as follows:
1. 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 pursuant to national policy;
2. To promote among others the well beings of emigrants and maintain their close link to the
homeland through the following:
a) Serving as a liaison with immigrant communities;
b) Providing welfare and cultural services
c) Promote and facilitate reintegration of immigrants into the national mainstream;
 d) Promote economic, political and cultural ties with the communities;
e) To undertake generally, such activities as may be appropriate to enhance
Foreign Service Role and Participation
To provide ample protection to Filipino workers abroad, the labor attaches, the labor reporting
officers 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
following:
1. To provide all Filipino workers within their jurisdiction assistance on all matters arising out of
employment:
2. To ensure that the Filipino workers are not exploited or discriminated against; 3. To verify,
certify and authenticate that the terms and conditions of employment contracts involving Filipino
workers are in accordance with the Labor Code and Rules & Regulations of the Philippine
Overseas Employment Administration (POEA);
4. To make continuing studies or researches and recommendations on the various aspects of
the employment market within their jurisdiction;
5. To gather and analyze information on the employment situation and its probable trends, and
6. To perform such other duties as may be required of them from time to time
(Art. 21 Labor Code as amended).
Mandatory Remittance of Foreign Exchange Earnings
It shall be mandatory for all Filipino workers abroad to remit a portion of foreign exchange
earnings to their families, dependents, and or beneficiaries in the country in accordance with the
rules and regulations prescribed by the Secretary of Labor (Art. 22 Labor Code as amended).
POEA Structural Organization under EO 247
Executive Order No. 247 issued on July 24, 1987 amended Article 23 of the Labor Code (PD
442).
Said Executive Order 247 provides the organizational structure of POEA to wit:
1. The POEA shall be composed of the Governing Board, the Office of the Administrator, the
Offices of such number of Deputy Administrators as may be necessary and the office of the
Director for each of the principal subdivisions of its internal structure;
2. The governing board shall be composed of the Secretary of Labor and Employment as
Chairman, the Administrator and a third member, considered well versed in the field of overseas
employment who shall be appointed by the President for a term of two (2) years;
Travel Agencies are 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 (Art. 26 Labor Code as amended).
Citizenship Requirement
Only Filipino citizens or corporations, partnership or entities at least seventy five (75%) percent
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. (Art. 27 Labor Code as amended).
Capitalization requirement
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. (Art. 28 Labor Code as
amended).
Sec. 2 of Rule 11 par. B of the Omnibus Rules Implementing the Labor Code as amended
provides for a net worth of Php 200,000.00 in the case of single proprietorship and partnership
or a minimum paid up capital of Php 500,000.00 in the case of a corporation.
Capitalization requirement for Private Recruitment and Manning Agency
The capital requirements for the Private Recruitment and Manning Agencies for Overseas
employment are as follows:
1. For Single Proprietorship or Partnership - the required capital is minimum of
Php 2,000,000.00
2. For Corporation, the minimum paid-up capital is Php 2,000,000.00 (Sec.1 Licensing and
Regulations participation of the Private Sector in the OE program)
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, 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 (Art.29 Labor Code as amended)
3. The Administrator and such Deputy Administrator and Directors as may be necessary shall
be appointed by the President upon the recommendation of the Secretary:
4. The functional structure of the POEA shall be established along the areas of market
development, employment, welfare, licensing, regulation and adjudication. Each of the principal
substantive subdivisions of the Administration shall be headed by a Director and shall have
such departments and units as may be necessary. (Sec. 4 EO 247).
Rule making Power of the POEA
The POEA Board 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 (Art. 24 Labor Code as amended).
PARTICIPATION ON OVERSEAS RECRUITMENT BY PRIVATE SECTOR
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 (Art 25 Labor Code as amended).
The related provisions to this effect under Migrant Workers and Overseas Filipinos Act of 1995
(RA 8042) states:
"Pursuant to progressive policy of deregulations whereby the immigration of worker becomes
strictly a matter between the worker and his foreign employer, the DOLE within one (1) year
from the effectivity of this act, is hereby mandated to formulate a five-year comprehensive
deregulation plan on recruitment activities taking into account labor market trends, economic
conditions of the country and emerging circumstances which may affect the welfare of the
immigrant workers". (Sec.29 RA 8042)
Furthermore:
"Within a period of five (5) years from the effectivity of this Act the DOLE shall phase out the
regulatory functions of POEA pursuant to the objective of deregulations". (Sec. 30 RA 8042)
Section 30, Service Fee - a license PRPA may charge employers a service fee which shall not
exceed twenty percent (20) of the annual basic salary of the worker. In no case shall the service
fee be deducted from the workers' salary;
Section 31, Transportation - Transportation expenses of the worker from the place of origin to
the place of work shall be charged against the employer, and shall in no case be deducted from
the workers' salary;
Section 32, Issuance of Official Receipt -All payments made or fees collected by a licensed
agency shall be covered by an official receipt indicating the amount paid and the purpose of
such payment.
Report 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 (Art. 33 Labor Code as amended.
Prohibited Practices
It shall be unlawful for any individual, entity, license or holder of authority.
1. To change 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;
2. To furnish or publish any false notice or information or document in relation
to recruitment of employment;
3. 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;
4. To induce or to 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;
5. To influence or to attempt to influence any person or entity, not to employ any worker who
has applied for employment through his agency;
6. To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to dignity of the Republic of the Philippines;
7. To obstruct or to attempt to obstruct inspection by the Secretary of Labor or by his duly
authorized representatives;
Registration Fees
The Secretary of Labor shall promulgate a schedule of fees for the registration of all applicants
for license or authority (Art. 30 Labor Code as amended).
A related provision to this effect states: "Prior to approval of the authority to establish a branch
office, the license
Japplicant shall post an additional surety bond of Php 50,000.00 and a
registration fee of Php2,000.00.
In case of loss, the license shall pay Php 500.00 as payment for the issuance of a certified copy
of the authority upon presentation of proof of loss." (Sec.27 Rule 1V Omnibus Rules
implementing the Labor Code, Art. 31 Labor Code as amended).
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 the efforts or has
actually commenced employment. Such fees shall be always covered with the appropriate
receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a schedule of
allowable fees (Art. 32 Labor Code as amended).
Section 8 of the Omnibus Rules and Regulations implementing the Migrant Workers and
Overseas Filipinos (RA 8042) also provides:
"All fees for services being charged by any government office or migrant workers as of 7 June
1995 shall not be increased. All other government agencies in connection with the recruitment,
introduction and placement of and assistance to migrant workers shall be rendered free. The
administrative cost thereof shall not be borne by the worker.
The migrant workers are exempt from the payment of travel tax and airport fee upon proper
showing of overseas employment certificate issued by the POEA".
Whereas, Omnibus Rules Implementing the Labor Code particularly sections 29, 30, 31 and 32
of Rules V thereof likewise provide:
Section 29, Placement Fee-A license Private Recruitment and Placement Agency (PRPA) may
charge worker a placement fee which shall not exceed 20% of the worker's first month's salary;
in no case shall such fee be charged prior to the actual commencement of employment
While Section 14 thereof also provides that:
"An Agency which desires to transfer a new business address shall notify the regional office
which issued the license at least thirty (30) working days prior to the intended date of transfer. It
shall likewise notify the regional office which has jurisdiction over the new business address,
and submit a sketch of the new office and a copy of contract of lease, if any
And Section 13 (Rule 1) of the same Rules likewise provides that:
"Any Agency which desires to transfer ownership shall surrender its license to the issuing
regional office".
Grounds for Cancellation / Revocation of a License
Any of the following shall constitute a ground for cancellation / revocation of license:
1. Violation of the conditions of the license:
2. Engaging in act or acts of misrepresentation for the purpose of securing a
license or renewal thereof;
3. Continuous operation despite due notice that the license has expired: or
4. Incurring two (2) suspensions of a PRPA based on final and executory order
5. Engaging in Labor-Only-Contracting as defined in Article 106 of the Labor
Code as amended;
6. Recruitment and placement of workers in violation of RA 7610 as amended by RA 7658;
7. Transferring, conveying or assigning of license/ authority to any person or
entity other than the one in whose favor it was issued; and
8. Violation of any of the provisions, particularly. Article 34 of the Labor Code as amended and
its implementing rules and regulations (Sec. 34 Rule VI Omnibus Rules Implementing Labor
Code as amended).
Authority to Suspend/Cancel License
The Regional Director who issued the license shall have the power to suspend/ cancel the
license (Sec.53 Rule VI Omnibus Implementing Rules Labor Code as amended).
Effect of Suspension / Cancellation of License
An order of suspension / cancellation or revocation shall have the effect of suspending or
terminating all activities of the Agency which fall under the definition of recruitment and
placement. The regional office may seek the assistance of other
8. 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:
9. To substitute or alter employment contract approved and verified by the Department of Labor
from the time of actual signing thereof to the periods of expiration of the same without the
approval of the Secretary of Labor;
10. 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
11. 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. (Art. 34 Labor Code as amended)
Suspension and or Cancellation of License or Authority
Any of the following shall constitute as grounds for suspension of a license/ Authority:
1. Violation of any provisions of Sections 7, 13, or 14 of these rules;
2. Violation of Department Order No, 21 series of 1994 regarding publication of job vacancies;
3. Non issuance of official receipt for every fee collected;
4. Non submission of monthly report as provided in Section 6 of these rules;
5. Charging or accepting directly or indirectly, any amount in excess of what is prescribed by
these Rules;
6. Disregard of lawful orders and notices issued by the Secretary or of his duly authorized
representative;
7. Non observance of the procedures for recruitment as stated in Section 20 of these Rules
(Sec. 33 Rule VI Omnibus Rules Implementing Labor Code as amended)
Section 7 Rule Il also states:
"The Agency shall publish once in a newspaper of general circulation the license number of the
agency, names and pictures of the authorized representatives within 15 days from the issuance
of the license and shall submit a copy of said publication to the Department".
ILLEGAL RECRUITMENT AS REGARDS THE OVERSEAS WORKERS
For purposes of this act (RA 8042) illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referring
contract services, promising or advertising for employment abroad, whether for profit or not,
when undertaken by non license or non holder of authority contemplated under Article 13 (1) of
the Labor Code of the Philippines (PD 442 as amended). Provided that any such non license or
non holder, who in any manner, offers or promises, for a fee employment abroad to two (2) or
more persons shall be deemed so engaged in recruitment and placement. It shall likewise
include the following acts whether committed by any person, who is a non-license or non holder
of authority.
1. 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 and Employment or to make a
worker pay any amount greater than that actually received by him as a loan or advance;
2. To furnish or publish any false notice or information or document in relation
to recruitment or employment: 3. 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 the Labor Code:
4. To induce or to attempt to induce a worker already employed to quit his employment in order
to offer him another unless the transfer is designated to liberate a worker from oppressive terms
and conditions of employment;
5. To influence or attempt to influence any person or entity not to employ any worker who has
not applied for employment through his agency;
6. 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;
7. To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by
his duly authorized representatives:
8. To fail to submit reports on the status of employment, placement vacancies, remittance of
foreign exchange earnings, remittance from jobs, departures and such other matters or
information as may be required by the Secretary of Labor and Employment;
9. To substitute or alter to the prejudice of the worker, employment contract approved and
verified by the DOLE from the time of the actual signing thereof by the parties up to and
including the period of the expiration of the same Shothon approval of the DOLE:
government institutions, agencies, or offices to ensure that the suspension or cancellation
orders are implemented (Sec. 54 Rule VI Omnibus Rules Implementing Labor Code as
amended).
Appeal
The decision of the Regional Director is appealable to the Secretary within ten (10) working
days from the receipt of copy of the order on any of the following grounds
1. If there is a prima facie evidence of abuse of discretion on the part of the
Regional Director;
2. If the decision and or award was secured through fraud or coercion; 3. If made purely on
question of law; and or
4. If serious errors in the finding of facts raised which, if not corrected would cause grave or
irreparable damage or injury to the appellant.
The appeal shall be filed with the Office of the Secretary copy furnished the Regional Office
issuing the suspension or cancellation/ revocation.
The Secretary shall have thirty (30) working days from receipt of the records to
resolve the appeal.
The decision of the Secretary shall be final and in-appealable (Sec.56 Rule VI
Omnibus Rules/Implementing Labor Code as amended).
Suppletory Application of the Rules of Court
In the absence of an applicable provision of these rules, the pertinent provisions of the Rules of
Court may be applied in a suppletory character (Sec. 55 Omnibus Rules Implementing Labor
Law as amended).
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
provisions of this title. (Art. 36 Labor Code as amended).
Visitorial Power of the Secretary
The Secretary of Labor or his duly authorized representatives may, at any time, inspect the
premises, books of accounts, and records of the person or entity covered by this title require it
to submit reports regularly on prescribed forms and act on violations of any provisions of this
title. (Art. 37 of the Labor Code as amended).
The related provisions under the Migrant Worker and Overseas Filipino Act of 1995 (RA 8042)
particularly Section 7 thereof provides:
1. Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not
less than six (6) years and one (1) day but not more than twelve (12) years and a fine of two
hundred thousand pesos (Php 200,000.00) nor more than five hundred thousand pesos (Php
500,000.00).
2. The penalty of life imprisonment and a fine of not less than Php 500,000.00 nor more than
Php 1,000,000.00 shall be imposed if illegal recruitment constitutes economic sabotage as
defined herein:
"Provided, however that the maximum penalty shall be imposed if the person illegally recruited
is less than 18 years old or committed by a non license or non holder of authority".
Since the penalties for illegal recruitment under Article 39 of the Labor Code (PD 442) as
amended is different from Sec. 7 of RA 8042 otherwise known as Migrant Workers Act
punishing the same offense and the latter being a special law for overseas workers, then, the
same (Sec. 7 of RA 8042) is deemed to be the penalty imposable for illegal recruitment for
abroad employment. While Art. 39 of the Labor Code (PD 442) is the penalty to be imposed for
illegal recruitment for local employment.
Presumption of Recruitment
There exists a presumption that the individual or entity is engaged in recruitment and placement
whenever he 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 of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring of workers.
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 Article 13 (b) (and Section 6 of RA 8042 for
overseas workers) will constitute recruitment and placement even if only one prospective worker
is involved (People vs. 142 SCRA 664).
Illegal Recruitment Defined
Illegal recruitment as defined under Article 38 (a) of the Labor Code as amended is any
"recruitment activities, including the prohibited practices enumerated under Article 34 of the
same Code, to be undertaken by non-license or non-holder of authority.
In the simplest terms, illegal recruitment is committed when a person who is not Shot on
Yernment, gives the impression that he or she has the power to Vivo Arad People vs. Alvarez
265 SCRA 582-596):
10. For an officer or agent of a recruitment or placement agency 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;"
11. To withhold or deny travel documents from applicant workers before departures
for monetary or financial considerations other than those authorized under the Labor Code and
its implementing rules and regulations; 12. Failure to actually deploy without valid reason as
determined by the DOLE
13. Failure to reimburse expenses incurred by the worker in connection with his documentation
and processing, for purposes of deployment, in cases where the deployment does not actually
take place without the workers' fault. Illegal recruitment when committed by syndicate or in large
scale shall be considered an offense involving economic sabotage (Sec. 6 RA 8042).
Penalties
1. The penalty of life imprisonment and a fine of one hundred thousand pesos (Php 100,000.00)
shall be imposed if illegal recruitment constitutes economic sabotage.
2. Any licensed 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 (2) years nor more than five (5) years or a fine of
not less than Php 10,000.00 nor more than Php 50,000.00 or both such imprisonment and fine,
at the discretion of the court.
3. Any person who is neither a license nor a holder of authority under this title found violating
any provision thereof or its implementing rules and regulations shall, upon conviction thereof,
shall suffer the penalty of imprisonment of not less than four (4) years nor more than eight (8)
years and a fine of not less than Php 20,000.00 nor more than Php100,000.00 or both such
imprisonment and fine, at the discretion of the court.
4. If the offender is a corporation, partnership 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 penalty herein prescribed be deported
without further proceeding.
5. 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 and entity under this title and
the forfeitures of the cash and surety bond in favor of the government (POEA) which is
authorized to use the same for the promotion of its objective (Art. 39 Labor Code as amended).
The related provisions under the Migrant Worker and Overseas Filipino Act of 1995 (RA 8042)
particularly Section 7 thereof provides:
1. Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not
less than six (6) years and one (1) day but not more than
twelve (12) years and a fine of two hundred thousand pesos (Php 200,000.00) nor more than
five hundred thousand pesos (Php 500,000.00). 2. The penalty of life imprisonment and a fine of
not less than Php 500,000.00 nor more than Php 1,000,000.00 shall be imposed if illegal
recruitment constitutes
economic sabotage as defined herein:
"Provided, however that the maximum penalty shall be imposed if the person illegally recruited
is less than 18 years old or committed by a non license or non holder of authority".
Since the penalties for illegal recruitment under Article 39 of the Labor Code (PD 442) as
amended is different from Sec. 7 of RA 8042 otherwise known as Migrant Workers Act
punishing the same offense and the latter being a special law for overseas workers, then, the
same (Sec. 7 of RA 8042) is deemed to be the penalty imposable for illegal recruitment for
abroad employment. While Art. 39 of the Labor Code (PD 442) is the penalty to be imposed for
illegal recruitment for local employment.
Presumption of Recruitment
There exists a presumption that the individual or entity is engaged in recruitment and placement
whenever he 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 of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring of workers.
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 Article 13 (b) (and Section 6 of RA 8042 for
overseas workers) will constitute recruitment and placement even if only one prospective worker
is involved (People vs. Panis 142 SCRA 664)
Illegal Recruitment Defined
Illegal recruitment as defined under Article 38 (a) of the Labor Code as amended is any
"recruitment activities, including the prohibited practices enumerated under Article 34 of the
same Code, to be undertaken by non-license or non-holder of authority.
In the simplest terms, illegal recruitment is committed when a person who is not authorized by
the government, gives the impression that he or she has the power to send workers abroad
(People vs. Alvarez 265 SCRA 582-596):
Number is not determinative in Illegal Recruitment
It is evident that in illegal recruitment cases, the number of persons victimized is not
determinative. Where illegal recruitment is committed against a lone victim, the accused may be
convicted of simple illegal recruitment which is punishable with a lower penalty under Article 39
of the Labor Code. Corollarily, where the offense is committed against three (3) or more
persons, it is qualified to illegal recruitment in large scale which provides a higher penalty
(People vs. Ortiz Miyake 279 SCRA 80).
Illegal Recruitment when considered an Economic Sabotage
An illegal recruitment is considered an economic sabotage when committed in large scale or by
syndicate.
It is a syndicate when committed by more than three persons conspiring or
confederating with one another. It is by large scale when committed against three (3) or more
persons individually
or collectively (People vs. Navarra 352 SCRA 84).
Conviction for both Illegal Recruitment and Estafa
An illegal recruiter may be convicted both of estafa for the money collected and for illegal
recruitment for recruiting without a license or authority. (People vs. Saulo 344 SCRA 605)
LIABILITES OF FOREIGN EMPLOYER AND THE LOCAL EMPLOYMENT
AGENCY
The Local Employment Agency is Jointly & Severally Liable with the Foreign Principal
The Local Employment Agency is solidarily liable with the foreign principal for any breach of the
employment contract with the overseas worker (Sevillana vs. I.T. International Corp. 356 SCRA
451).
The Manning Agent is Solidarily Liable with Foreign Principal for the Unpaid Salary
The manning agreement between the local agent and its foreign principal are not coterminous
with the term of such agreement, so that if either or both of the parties decide to end the
agreement, the responsibilities of such parties towards the contracted employees under the
agreement do not at all end, but the same extends up to and until the expiration of the
employment contracts of the employees recruited and employed pursuant to the said
recruitment agreement. Otherwise this will render nugatory the very purpose for which the law
governing the employment of workers for foreign jobs abroad was enacted (Catan vs. NLRC GR
No. 77279. April 15, 1998).
For Death Benefit to be Compensable the same must occur during the Effectivity of the Contract
For death benefit claims to prosper, the seafarer's death must have occurred during the
effectivity of his contract. Otherwise, his beneficiaries would not be entitled to the death benefits
under the standard employment contract for seafarer (South Eastern Shipping vs. Navarro G.R.
No. 167678, June 22, 2010).
Death Benefit Claim is not Automatically Granted
In case of seafarer's death, the grant of benefits in favor of the heirs is not automatic (Rivera vs.
Wallen Maritime Services Inc. 474 SCRA 714).
It must be shown by a post medical examination or its equivalent that the disease for which the
seaman dies was contracted during his employment or that his working conditions increased the
risk of contracting the ailment. Otherwise, the employers cannot be held liable for death
compensation. (Panganiban vs. Tara Trading Ship Management Inc. Supra; p. 538 Compedium
or: Labor Law, Abad 2015 ed.)
Death Claims Benefits
The death claim benefits of a seafarer under section 20 of POEA Standard employment contract
are as follows:
1. In case of work related death of seafarer, during the term of his contract the employer shall
pay his beneficiaries the amount of 50,000.00 US dollars, and an additional of 7,000 US dollar
for every child below 21 year old but not exceeding 4 children;
2. When death is caused by war like activity while sailing within a declared war zone or war risk
area, the compensation payable shall be double. The employer shall undertake appropriate war
zone insurance for this purpose;
3. It is understood and agreed that the benefits as above mentioned shall be separate and in
addition to whatever benefits to which the seafarer is entitled to under Philippine laws such as
SSS, OWA, ECC, Phillyalth, Pag-big, etc. whenever applicable;
4. Other benefits claimable from the employer in case of death as a result of work related injury
are as follows: a. Employer shall pay the deceased's beneficiaries all outstanding obligations
due the seafarer under the contract;
b. The employer shall transport the remains and personal effects of the seafarer to the
Philippines at employer's expense except if the death occurred at sea, the disposition of the
remains shall be handled or dealt with in accordance with the master's best judgment. In all
cases, the
expiration of the contract. Therefore, if the illness was contracted during the previous
voyage, it is considered a pre existing disease during the subsequent contract (Francisco
vs. Bahia Shipping Services Inc. GR No. 190545, Nov. 23, 2010). Liabilities of the Employer for
Injury
The liabilities of the employer when the seafarers suffer work-related injuries or illness during
the terms of the contract are as follows:
1. The employer shall continue to pay the seafarer his wages during the time he is on board the
vessel;
2. If the injury or illness requires medical and or dental treatment in a foreign port, the employer
shall be liable for the full cost of such medical, serious dental, surgical and hospital treatment as
well as board and lodging until the seafarer is declared fit to work or to be repatriated;
3. Upon sign off from the vessel, for medical treatment, the seafarer is entitled to sickness
allowance equivalent to his basic wage until he is declared fit to work or the degree of
permanent disability has been assessed by the company designated physician but in no case
shall this period exceed one hundred twenty (120) days.
For this purpose, the seafarer shall submit himself to a post employment medical examination
by a company-designated physician within three (3) working days upon his return except if he is
physically incapacitated to do so, in which case, a written notice to the agency within the same
period is deemed as compliance. Failure of the seafarer to comply with the mandatory reporting
requirement shall result in his forfeiture of the right to claim the above benefits.
If the doctor appointed by the seafarer disagreed with the assessment, a third doctor may be
agreed jointly between the employer and the seafarer. The third doctor's decision shall be final
and binding on both parties.
4. Those illnesses in section 32 of the contract are disputably presumed as work related.
5. Upon sign off of the seafarer from the vessel for medical treatment, the employer shall bear
the full cost of repatriation in the event the seafarer is declared (1) fit for repatriation; or (2) fit to
work but the employee is unable to find employment on board his former vessel or another
vessel of the employer despite earnest efforts;
6. In case of permanent total or partial disability of the seafarer caused by either injury or illness,
the seafarer shall be compensated in accordance with the schedule of benefits arising from an
illness or disease and the same shall be governed by the rates and the rules of compensation
applicable at the time the illness or disease was contracted (Sec.20 (b) POEA Standard
Employment Contract).
employer/master shall communicate with the manning agency to advise for disposition of
seafarer's remains and The employer shall pay the beneficiaries of the seafarer the amount of
$1,000 for burial expenses at the exchange prevailing during the time of
payment.
Concept of Disability
What is compensated in disability is not the injury but the loss of earning capacity and its
entitlement is governed by law as well as medical contract (Philasia Agency Corp. vs. Tamacruz
678 SCRA 503).
Requisites for Disability Compensation
For an occupational disease and the resulting disability or death to be compensable, all the
following requisites must be satisfied:
1. The seafarer's work must involve the list described herein;
2. The disease was contracted as a result of the seafarer's exposure to the described risks; 3.
The disease was contracted within a period of exposure and such other factor
necessary to contract it; and
4. There was no notorious negligence on the part of the seafarer (Phil. Transmarine Carrier Inc.
vs. Nasam GR No. 190804, Oct.11, 2010).
Mental Disease
Regarding the mental diseases for the same to be compensable, it must be due to traumatic
injury to the head.
Compensability of Non-Occupational Diseases
In order that the non-occupational disease be compensable, the work-connection must be
established with reasonable proof, not the direct causal relation.
The test of proof in this compensation proceeding is probability not the ultimate degree of
certainty (Leonis Navigation Corp. Inc. vs. Villamater GR No. 179169, March 3, 2010).
Pre existing Disease Not Compensable
Pre existing disease at the time of employment is not compensable.
The seafarers' employment is governed by the employment contract he signed with the
employer every time he is hired. The same employment terminated at the
expiration of the contract. Therefore, if the illness was contracted during the previous voyage, it
is considered a preexisting disease during the subsequent contract (Francisco vs. Bahia
Shipping Services Inc. GR No. 190545, Nov. 23, 2010).
Liabilities of the Employer for Injury
The liabilities of the employer when the seafarers suffer work-related injuries or illness during
the terms of the contract are as follows:
1. The employer shall continue to pay the seafarer his wages during the time he is on board the
vessel;
2. If the injury or illness requires medical and or dental treatment in a foreign port, the employer
shall be liable for the full cost of such medical, serious dental, surgical and hospital treatment as
well as board and lodging until the seafarer is declared fit to work or to be repatriated;
3. Upon sign off from the vessel, for medical treatment, the seafarer is entitled to sickness
allowance equivalent to his basic wage until he is declared fit to work or the degree of
permanent disability has been assessed by the company designated physician but in no case
shall this period exceed one hundred twenty (120) days.
For this purpose, the seafarer shall submit himself to a post employment medical examination
by a company-designated physician within three (3) working days upon his return except if he is
physically incapacitated to do so, in which case, a written notice to the agency within the same
period is deemed as compliance. Failure of the seafarer to comply with the mandatory reporting
requirement shall result in his forfeiture of the right to claim the above benefits.
If the doctor appointed by the seafarer disagreed with the assessment, a third doctor may be
agreed jointly between the employer and the seafarer. The third doctor's decision shall be final
and binding on both parties.
4. Those illnesses in section 32 of the contract are disputably presumed as work related.
5. Upon sign off of the seafarer from the vessel for medical treatment, the employer shall bear
the full cost of repatriation in the event the seafarer is declared (1) fit for repatriation; or (2) fit to
work but the employee is unable to find employment on board his former vessel or another
vessel of the employer despite earnest efforts;
6. In case of permanent total or partial disability of the seafarer caused by either injury or illness,
the seafarer shall be compensated in accordance with the schedule of benefits arising from an
illness or disease and the same shall be governed by the rates and the rules of compensation
applicable at the time the illness or disease was contracted (Sec.20 (b) POEA Standard
Employment Contract).
Three (3) months' Salary for Every Year of Service was Declared Unconstitutional
These money claims as provided in the last par. of Sec.10 RA 8042, for illegal dismissal of
OFWs such as reimbursement of placement fee plus the salary for the unexpired portion of the
contract or 3 months' salary for every year of service or unexpired term whichever is less was
declared unconstitutional for being violative of due process and equal protection clause.
(Serrano vs. Gallant Maritime Services Inc. GR No. 167614, March 24, 2009).
Prescription of an Action for Money Claims
Money claim arising from employer-employee relations including those specified in the Standard
Employment Contract for Seafarers prescribes within three (3) years from the time cause of
action accrues.
Prescription to file Action for Illegal Recruitment
Illegal recruitment cases under this Act (RA 8042) shall prescribe in five (5) years. Provided
however that illegal recruitment cases involving economic sabotage as defined herein shall
prescribe in twenty (20) years (Sec.12 RA 8042).
PESO ACT
RA 8759
To institutionalize the employment placement with the participation of the Local Government
Units, RA 8759 otherwise known as Public Employment Service Office (PESO) Act. of 1999 was
enacted with the objectives of ensuring prompt, timely and efficient delivery of employment
services..
Towards this end, it shall provide:
a) Venue where clients could avail simultaneously various employment services such as Labor
Market Information (LMI): referrals, training, self employment, entrepreneurial, reintegration and
other services;
b) Serve as referral and information center for the DOLE and other government agencies by
making available data informations on their respective programs;
c) Provides clients with adequate informations on employment and the labor market situation;
and
d) Establish linkage with other PESO's for job exchange and other employment related
services.8759).
Right of the Seafarer to seek 2nd Opinion
While it is the company designated physician who must declare that the seaman
suffers a permanent disability during employment, however it does not deprive the
seafarer of his right to seek for a second opinion. Hence, the POEA Standard Employment
Contract recognizes the prerogative of the seafarer to request a second opinion and for this
purpose, to consult a physician of his choice (Ison vs. Galvez Jr. 669 SCRA 481).
Application of Foreign Law
The party who wants to have the foreign law applied to a dispute or case has the burden of
proving the same. It is a question of fact to be pleaded and proved because the judge or the
arbiter cannot take judicial notice thereof.
When the foreign law is not pleaded or even if pleaded, but not proved, the presumption is that
the foreign law is the same as Philippine Law. Hence, Phil. Labor Laws are applied to resolve
the issues. (Edi-Staff Builders Intl
vs. NLRC 537 SCRA 409)
Liability of Corporate Officers
If the Recruitment / Placement Agency is a juridical being the corporate officers the directors
and partners as the case may be, shall themselves be solidarily liable with the corporation or
partnership for the claims and damages of the OFW's (Sec.10 RA 8042)
NLRC Jurisdiction for Money Claims of OFW's
Notwithstanding any provision of law to the contrary, the Labor Arbiters of the NLRC shall have
the original and exclusive jurisdiction to hear and decide within ninety (90) calendar days after
the filing of complaint, the claims arising out of an employer employee relationship or by virtue
of any law or contract involving Filipino workers for overseas deployment including claims for
actual, moral, exemplary and other forms of damages (Sec. 10 (a) RA 8042).
Criminal Liability under Existing Laws Involving Overseas Workers
All prohibited acts/practices which are penal in character as enumerated and defined under and
by virtue of existing laws, shall be prosecuted in the regular courts in close coordination with
appropriate departments and agencies concerned. (supra).
2. Administer and evaluate psychological test or examinations;
3. Undertake employability enhancement trainings or seminars for job seekers as well as those
intending to change careers or enhance their employability; and
4. Conduct orientation and training to prospective local and overseas
jobseekers regarding rules and regulations on anti-illegal recruitment. D. The PESO shall
provide self-employment services. It shall:
1. Maintain and provide updated directory of government and non
government institutions with existing livelihood programs, including the directory of lending
institutions;
2. Determine client's potential for entrepreneurial undertakings; 3. Refers clients for appropriate
self-employment or livelihood assistance and
monitor the results of such referrals; and 4. In coordination with DOLE Regional Coordinating
Council (DOLE-RCC), undertake livelihood and self-employment program.
E. In coordination with the DOLE-RCC, the PESO shall provide reintegration
assistance services to returning overseas Filipino workers (OFWs). It shall:
1. Provide and assist in gathering or tapping the skills and potentials of the
returning OFWs.
F. The PESO shall likewise perform other functions analogous to the above including programs
or activities developed by the DOLE to enhance provision of employment assistance to clients,
particularly for special groups of disadvantaged workers such as person with disability (PWDs)
and displaced workers (Sec. 1 Rule 1 Implementing Rules of RA 8759).
Other Functions of PESO
Where appropriate, the PESO shall likewise provide the following employment
services:
1. Initiate and organize job fairs, provided that where the same is conducted by private entities,
or any educational institutions, it shall be supervised and monitored by the PESO pursuant to
the DOLE guidelines;
2. Initiate and organize livelihood and self-employment bazaars, in coordinatioru with
government and non-government institutions undertaking livelihood and self-employment
programs;
3. Facilitate credit access to qualified overseas workers, subject to existing rule and regulations;
Coverage
These Rules shall cover all existing and accredited Public Employment Service Office (PESO)
(Sec. 2 RA 8759).
Functions of the Public Employment Service Office (PESO)
A. The PESO shall operate within it's area of jurisdiction in coordination with other concerned
agencies but in every case subject to the requirements of the National Facilitation Service
Network (NFSN).
The PESO shall provide Labor Market Information (LMI) services. purpose, it shall:
1. Market and promote the services, through all forms of media, to all labor market clients;
2. Regularly obtained a list of job vacancy from employers; 3. Generate and maintain an up-
dated registry of skills;
4. Gather, collate and process data of information on employment trends, particularly labor
supply and demand, and disseminates such data or informations to Labor Market clients; and
5. Provide informations on licensed or authorized recruitment agencies or
recruiters for local and overseas employment (Sec. 1 Rule III Implementing
Rules of RA 8759).
B. The PESO shall provide referral and placement service for local and overseas as well as
private and civil service employment, in accordance with existing policies, rules and regulations.
It shall:
1. Undertake active sourcing of vacancies;
2. Evaluate the qualifications of job seekers in relation to wage employment options;
3. Refers job seekers for appropriate employment assistance and monitor the result of such
referrals;
4. Institute measures to ensure that recruitment and placement services both
for local and overseas are in accordance with existing laws, rules and regulations. C. The PESO
shall provide training and vocational guidance and employment
counseling services. It shall:
1. Conduct pre-employment counseling, including values development and enhancement of
work ethics: to prospective local and most especially to overseas job seekers.
4. Endeavor to reach out to qualified poor but deserving students and out of school youth to
pursue their education by facilitating their employment pursuant to RA 6685 otherwise known as
Special Program for Employment of Students (SPES) and its implementing rules and
regulations.
The SPES shall likewise encourage qualified employers to participate in the
program;
5. Coordinate and promote the adoption of Work Appreciation Program (WAP) and other
enrolled youth work programs pursuant to Executive Order No. 139
through Kabataan 2000 under the office of the President as implemented by
the DOLE and other agencies; and 6. Monitor the implementation of government funded
infrastructure projects to provide recruitment assistance to contractors for their skilled and
unskilled human resource requirement pursuant to RA 6685 otherwise known as Workers Hiring
in Infrastructure Projects (WHIP) (Sec. 2, Ibid).
Administration Framework of the NFSN or NESN
The general framework for the administration of the National Facilitation Service Network
(NFSN) or National Employment Service Network (NESN) shall emanate from the Central office
(DOLE) through the Bureau of Local Employment (BLE). Consistent with this general
framework, each Regional Office (DOLE) shall exercise administrative and technical supervision
over every PESO within its area of jurisdiction (Sec. 1 Rule IV, DO No. 07-Series of 2000).
Role of the DOLE Central Office
The Department of Labor and Employment (DOLE) Central Office shall:
1. Provide policy direction and prescribe standards on employment services;
2. Develop and maintain a computerized job matching facility accessible to all PESOS
nationwide and the Philippine Overseas Labor Offices (POLO), and computerized national
registry of skills, employment and business opportunities for easy access of its clients.
For this purpose, the Phil. Job Net shall serve as the basic Labor Information Market (LIM)
system which shall be continuously enhanced and up graded. 3. Develop and maintain
performance based and gender-responsive indicators
to assess and evaluate the effectiveness of the National Facilitation Service
Network (NFSN) and the Philippine employment Service Office (PESO): 4. Develop and
maintain training curricular in all aspects of employment services including gender awareness;
3. Establish and maintain training facilities for employment service providers; and
6. Develop and maintain a manual operations for the effective implementation of the
employment service program (Sec. 2, Rule IV DO No. 7 Series of 2000)
Regional Offices/Regional Coordinating Council The DOLE Regional Offices through the
Regional Directors and the DOLE-ROC shall oversee the activities of the PESO network within
their areas of jurisdiction
For this purpose, the Regional Director shall:
1. Exercise administration and technical supervision over the PESO,
2. Prepare and submit budgetary requirements to the DOLE Central office 3. Recommend the
requirements for human resources, equipment and other
necessary resources to the Central office for the effective management and administration of
the PESO,
4. Develop, administer and manage area-based or region-specific employment projects for
PESC's implementation;
5. Maintain a computerized regional registry of skills as well as employment and business
opportunities for easy access of its clients, and
6. Monitor and evaluate the performance of the PESO, (Sec. 3 Rule IV DO No. 7 Series of
2000).
Establishment of the PESO
The Philippine employment Service Office (PESO) shall be established in accordance with the
Rules prescribed under this Act (RA 8759).
Thus, pursuant to Section 3 of the said Act, the DOLE shall establish, operate and maintain
PESO in capital towns of provinces, key cities and other strategic areas. Accordingly, the DOLE
shall:
1. Provide the necessary budgetary allocation, office space, human resource
complement, equipment and supplies; 2. In consultation with the LGU concerned, appoint
PESO personnel subject to civil service rules and the accreditation requirement in these rules;
3. Provide administrative and technical assistance and allied support services; and
4. Provide regular training to PESO personnel in the various aspects of employment services
(Sec. 1 and 2, Rule IV DO No. 7 Series of 2000).
Establishment of PESO upon request of LGU, NGO, etc
Upon request of the Local Government Units (LGUs), Non-Government Organizations (NGO)
Commercial Business Organization (CBO), State University Colleges (SUCs) which do not have
an existing PESO, the DOLE may likewise establish a PESO pursuant to Section 7 of this Act
within fifteen (15) days upon receipt of the request.
For this purpose, the DOLE shall:
1. Evaluate the employment services and facilities needed by the clients to enable the particular
PESO to discharge its functions;
2. Evaluate and accredit in accordance with the accreditation process provided in these Rules;
and
3. Conclude a Memorandum of Agreement (MOA) with the requesting party, indentifying their
respective roles, duties and responsibilities in the establishment, maintenance and operation of
the PESO (Sec. 2 Rule V, DO No. 7 Series of 2000).
Accreditation of PESO Personnel
The following shall be the minimum criteria for accreditation of PESO personnel:
1. They should meet the minimum qualification standards set by the DOLE and Civil Service
rules on education, training, relevant experience or expertise and applicable eligibility;
2. They should pass the medical, physical and psychological examinations
administered by competent or authorized persons or institutions; 3. They should pass both oral
and written examinations to be administered by the DOLE;
4. In case of LGU and SUC, they should occupy regular or permanent plantilla items. (Sec. 3
ibid).
Effect of Accreditation of PESO Personnel
Accredited personnel shall not be replaced without due process and without priop authority from
DOLE.
Duties and Responsibilities of the participating LGUs, etc
The LGUs, NGO, CBOs and SUCS participating in the implementation of the PESC Act have
the following duties and responsibilities:
1. Assist the DOLE in the promotion of employment program within their respective areas of
jurisdiction or operation;
2. Provide necessary employment related expertise such as but not limited to labor and
employment researches, psychological test administration, human resource development and
other resources, including budgetary allocation as stipulated in the MOA;
3. Promptly submit to the DOLE Regional Office regular monitoring and performance report; and
4. Perform other functions as may be stipulated in the MOA or as necessary in
furtherance of the objectives of the law (Sec. 1 Rule VII DO No. 7 Series of 2000).