CHAPTER I

RECRUITMENT AND PLACEMENT OF WORKERS

 Article 13 of the Labor Code defines
DEFINITON OF recruitment and placement as the act of:

RECRUITMENT • Canvassing,
• Contracting,
AND • Hiring or procuring workers,

PLACEMENT
• Utilizing,
• Transporting,
• Enlisting, (C-CHUTE)
• Including:
*contract services ,
*advertising for employment,
*referrals,
*promising employment. (CARP)
 THE ESSENCE OF RECRUITMENT AND
PLACEMENT

• The essence of recruitment and placement is offer

or promise of employment.
• Without an offer or promise of employment,
there is no recruitment activity, hence, no crime
of illegal recruitment.
• Thus, the mere act of producing a passport, airline
ticket and foreign visa for another person,
without more, does not per se qualify as
recruitment activities.
To fall within the ambit of recruitment and
placement, it must be shown further that
the accused gave the victim the distinct
impression that he had power or ability to
send he victim abroad for work such that
the latter was convinced to part with his
money in order to be so employed
[Darwin v. CA, 292 SCRA 534].
 Offer or promise of employment could
be indicated by the act of requiring a
person to submit picture birth
certificates, NBI clearance, collecting
payment for passports, training fees,
placement fees, medical test and other
sundry expenses.
[People v. Manungas, 231 SCRA 1].
 MATERIAL
CONSIDERATION –
NOT AN ESSENTIAL
ELEMENT

As to whether or not
money change hands is
immaterial. Money is not
essential to a prosecution
for illegal recruitment
because the definition of
recruitment and
placement includes the
phrase whether for profit
or not. [People v. Jamisola,
512 SCRA 340].
NUMBER OF PERSONS
DEALT WITH – NOT AN
ESSENTIAL ELEMENT
The number of persons dealt with is
not an essential ingredient of the act
of recruitment and placement of
workers. A person will be considered
to have engaged in “recruitment and
placement “ even if he dealt with
only one person. The proviso in
Article 12(b) of the Labor Code
provides 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” merely
creates a presumption that a person
is engaged in “recruitment and
placement” whenever he deals for a
fee with two or more persons.
[People v. Panis, 142 SCRA 664].
 WHO CAN ENGAGE IN
RECRUITMENT AND
PLACEMENT OF WORKERS?

As a general rule, only public employment offices

can engage in recruitment and placement of
workers, whether for local or overseas
employment. Article 16 of the Labor Code
provides that:
ART. 16. Private Recruitment – except as
provided in Chapter II of this Title, no person
or entity other than public employment
offices shall engage in recruitment and
placement of workers.”
ART. 16. Private Recruitment – except
as provided in Chapter II of this Title,
no person or entity other than public
employment offices shall engage in
recruitment and placement of
workers.”
 Exceptionally the private sector is given the privilege to engage in
recruitment and placement, but limited to the following:
(a) Private employment agency;
(b) Private recruitment entity;
(c) Shipping manning agency;
(d) Such other persons or entities as may be authorized by the
Secretary of Labor and Employment. [Sec. 1, Rule IV, Book
1, Rules and Regulation Implementing the Labor Code]
PRIVATE EMPLOYMENT AGENCY
Private employment agency refers to any
person or entity who recruits workers for
employment for a fee which is charged
directly against the workers or
employees or both.
MANNING AGENCY

Manning agency refers to any

person, partnership or corporation
who recruits and deploy seafarers for
maritime employment.
WHO ARE QUALIFIED TO OPERATE A
PRIVATE RECRUITMENT AGENCY OR
ENTITY
The privilege to operate a private
recruitment agency or recruitment entity,
whether for local employment of for
oversea employment, is available only to:
•Filipino citizens;
•Partnership, 75% owned and
controlled by Filipinos;
 •Corporations, the authorized and
capital stock of which is 75% owned
and controlled by Filipinos.

This could be gleaned from Article 27 of

the Labor Code which expressly provides
that:
 ART. 27. Citizenship Requirement - Only
Filipino citizens or corporations, partnership
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 in the
recruitment and placement of workers,
locally or overseas.
WHO ARE DISQUALIFIED FROM ENGAGNG
IN RECRUITMENT AND PLACEMETN FOR
OVERSEAS EMPLOYMENT
Under Article 26 of the Labor Code, the
following are disqualified from engaging in
the business of recruitment and placement
of workers for overseas employment:
(a) Travel agencies; and
(b) Sales agencies of airlines companies
 The disqualification extends to:
(a) Officers or board members of the
travel agency; and
(b) Corporations and partnership
whose officers, board members or
partners are also officers, board
members or partner of the travel agency.
 Apart from the foregoing, the following are
disqualified from engaging in recruitment and
placement of workers for overseas
employment;
(a)Employees, officers or directors of
recruitment or manning agencies, the license
of which has been previously canceled or
revoked for violation of recruitment laws;
(b) Officers or employees of government
agencies directly involved in the
implementation of R.A. 8042, ^2 including
their relatives within the fourth degree of
consanguinity of affinity;
 (c)Persons, partnerships, or corporations with
derogatory records, as certified by the
National Bureau of Investigation (NBI) or by
the Anti-Illegal Recruitment Branch of the
POEA;
(d) Those found with probably cause or
prima facie finding of illegal recruitment; and
(e)Those convicted for illegal recruitment
and/or crimes involving moral turpitude.
 These government agencies are: Department of
Labor and Employment (DOLE), Philippine Overseas
Employment Administration (POEA); Overseas
Workers Welfare Administration (OWWA);
Department of Foreign Affairs (DFA), Department of
Justice (DOJ), Department of Health (DOH), Bureau
of Immigration (BI), Insurance Commission (IC),
National Labor Relations Commission (NLRC),
Technical Educational and Skills development
Authority (TESDA), Commission On Filipinos
Overseas (CFO), National Bureau of Investigation
(NBI), Philippine National Police (PNP), Manila
International Airport Authority (MIAA), Civil Aviation
Authority of the Philippines (CAAP).
CAN FOREIGN EPLOYERS DIRECTLY
HIRE WORKERS FOR OVERSEAS
EMPLOYMENT?
Foreign employers cannot directly hire
Filipino workers for overseas
employment. They can hire workers only
through public employment offices or
through licensed or authorized
recruitment agencies or entities. Article
18 of the Labor Code provides that:
 ART. 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 the
members of the diplomatic cores
international organizations and such
other employers as may be allowed by
the Secretary of Labor is exempted from
this provision.
EXCEPTIONS TO THE BAN ON
DIRECT-HIRING
The ban against direct hiring of overseas
workers does not apply to workers hired
by:
(a) Members of the diplomatic corps;
(b) International organizations; and
(c) Employers allowed the Secretary of
Labor and Employment to directly hire
their worker.
Can a worker directly apply for
employment with a foreign employer?

A Filipino worker can apply for

employment with a foreign employer
without the assistance or participation of
a recruitment hire. But name hire are still
required to register with the POEA by
submitting the following documents:
a) Employment contract
b) Valid passport;
c) Employment visa or work permit, or
equivalent document;
d) Certificate of medical fitness; and
e) Certificate of attendance to the
required employment orientation or
briefing.
LICENSE – INDISPENSABLE REQUIREMENT
TO OPERATE A RECRUITMENT AGENCY
Recruitment and placement or workers
is a regulated activity, hence, in order to
operate a recruitment agency, manning
agency, or recruitment entity, whether
for local or overseas employment, a
license or authority must first be
obtained from the:
a) Bureau of Local Employment (BLE) –
for local employment; and
b) Philippine Overseas Employment
Administration (POEA) – for overseas
employment.
BOND – A CONDITION FOR ISSUANCE
OF LICENSE
Article 31 of the Labor Code obliges all
applicant for license or authority to post a
bond. The bond is intended to secure all valid
and legal claims arising from violation of the
conditions of the grant and use of the license,
accreditation and contracts of employment
and guarantee compliance with the
recruitment laws, rules and regulations and all
liabilities which the POEA may impose.
However, the bond can answer only for
employment-related claims, which means that
it cannot be garnished to satisfy a
non-employment-related claim against a
recruitment agency, such as a claim by a travel
agency against a recruitment for cost of
tickets of the workers deployed by it
[Capricorn International Travel v. Court of
Appeals, 184 SCRA 123]
VALIDITY OF LICENSE
The license of a recruitment agency for
local employment is valid:
•All over Philippines;
•For a period of two (2) years from
date of issuance. [Sec.8, Rule II, Rules
Governing Private Recruitment and
Placement Agency for Local
Employment]
 The license of a recruitment agency for
overseas employment is valid
•Only at the place stated in the license;
•For a period of four (4) years from date of
issuance. [Sec. 6, Rule , Part II, Rules and
Regulations Governing Recruitment and
Employment of Land-Based Overseas
Workers (2002); Sec. 6, Rule II, Part II,
Rules and Regulations governing
Recruitment and Employment of
Seafarers (2003)]
LIMITATIONS ON THE USE OF LICENSE
OR AUTHORITY
(a) Then license cannot be used
directly or indirectly by any person other
than the one in whose favor it was
issued. Hence, the license of a
recruitment is a recruitment or manning
agency automatically ceases to be
effective:
•If the sole proprietor dies;
•If the sole proprietorship is upgraded
to corporation;
•If the partnership is dissolve;
•If the partnerships or corporations
merge or consolidate.
[Sec. 7, 8, and 9, Rule II, Part II, Rules
and regulations Governing
Recruitment and Employment of
Land-Based Overseas Workers
(2002); Secs. 7, 8, and 9, Rule II, Part
II, Rules and regulations Governing
Recruitment and Employment of
Seafarers (2003)]
(b) The license cannot be used in any
place other than that specified in the
license or authority. Exceptionally, the
license may be used to recruit outside of
the specified place:
•When recruitment is done under the
Public Employment Service Office
Act of 1999; or
• When the recruitment or manning
agency is granted a special
recruitment authority by the POEA.
[Sec. 1, Rule VI, Part II, Rules and
Regulations Governing Recruitment
and Employment of Land-Based
Overseas Workers (2002)
 (c) The license cannot be transferred
conveyed or assigned in any person or
entity. If there is change in the ownership
of a recruitment or manning agency, the
license is automatically revoked. [Sec.8,
Rule I, Part II, Rules and Regulations
Governing Recruitment and Employment
of Seafarers (2003)]
Can a recruitment agency transfer
its business address without prior
approval from the Department of
Labor and Employment?
 No. Article 29 of the Labor Code
expressly requires prior approval before
putting up additional offices.
 Can a recruitment agency appoint
agents or representatives without
prior approval from the Department
of Labor and Employment?
 No. Appointment of agents or
representatives require prior approval as
mandated by Article 29 of the Labor
Code.
 Can a recruitment agency for
overseas employment place
advertisements for job vacancies
without prior approval from the
POEA?
 Yes. Recruitment agencies for overseas
employment may advertise for actual job
vacancies without prior approval of the POEA
under the following conditions:
(a)There must be a manpower request job
order from the registered or accredited
principals:
(b) The advertisement should indicate the
following data:
• Name, address and POEA license number of
the recruitment agency;
• Type of ship or worksite of the prospective
principal/project;
• Skill categories and qualification standards;
and
• Number of available positions. [Sec. 1 Rule
VII, Part II, POEA Rules Governing the
Recruitment of Land-Based the Recruitment
of Land-Based Workers (2002), Sec. 1 Rules
v Part II, POEA Rules Governing the
Recruitment of Seafarer (2003)]
Can recruitment agencies for
overseas employment place
advertisements for manpower
pooling without prior approval
from the POEA?
 Yes. Recruitment agencies may advertise for
manpower pooling without prior approval of
the POEA under the following condition:
(a)The advertisement should indicate in bold
letter that:
• It is “FOR MANPOWER POOLING
ONLY;” and
• That no fees will be collected form
the applicants;
 (b)The advertisement should indicate the
following data:
• Name, address and POEA license number
of the recruitment agency;
• Worksite of the prospective
principal/project; and
• Skill categories and qualification
standards [Sec . 2, Rules VII, Part II,
POEA Rules Governing the Recruitment o
Land-Based Workers (2002); Sec. 2, Rules
V, Part II, POEA Rules Governing the
Recruitment of Seafarers (2003)]
SUSPENSION OF LICENSE
Grounds for Suspension of License of
Recruitment Agency for Local Employment:
(a) Failure to publish an a newspaper of
general circulation:
•The license number of the agency;
and
•The names and pictures of
authorized representatives;
(b) Failure to submit to the DOLE
Regional Office which issued the license:
•Copy of the newspaper
publication;
•Notice of transfer of business
address prior to the intended date
of transfer; and
•Monthly report of recruitment and
placement activities.
 (c) Failure to submit to the DOLE
Regional office having jurisdiction over
the new business address:
•The sketch of the new office; and
•The contract of lease if any.
(d) Charging fees in excess of what is
prescribed by the rules;
(e)Failure to:
•Surrender the license in case of
transfer of ownership;
•Publish job vacancies;
•Comply with lawful orders and notices;
•Observe the conduct/ procedure on
recruitment;
•Issue official receipt for every fee
collected [Sec. 33, Rule IV, Rules
Governing Private employment Agency
for local Employment]
Grounds for Suspension of License of
Recruitment Agency for Overseas
Employment:
(a)Charging any fee before employment is
obtained for the worker;
(b) Collecting fees from a worker without
issuing appropriate receipt;
(c)Misrepresentation in the recruitment and
placement of workers;
(d) Obstructing or attempting to obstruct
inspection;
 (e) Substituting or altering employment
contracts to the prejudice of the worker or
seafarer, without the approval of the POEA;
(f) Withholding or denying travel or other
pertinent documents for considerations
other than those authorized under existing
laws and regulations;
(g)Engaging in recruitment activities in
places other than that specified in the
license without previous authorization from
the POEA;
 (h) Appointing or designation agents,
representatives ore employees without prior
approval from the POEA;
(i) Falsifying/altering travel documents of
applicant worker or seafarer;
(j) Deploying workers or seafarer whose
employment were not processed by the POEA;
(k)Deploying workers or seafarers to
principals not accredited or registered by the
POEA or to vessels not enrolled with the
deploying agency;
 (l) Withholding the salaries or remittances of
workers or seafarers without justifiable reasons
or shortchanging of remittances;
(m) Allowing disqualified persons to
participate In the management and operation of
the recruitment of manning agency;
(n) Failure to reimburse expenses incurred by
the worker or seafarer in connection with his
documentation and processing for purpose of
deployment where deployment does not take
place without the fault of the worker or
seafarer;
 (o) Failure to provided Pre-Departure
Orientation Seminar; and
(p) Non-compliance with any other
undertaking in connection with the
issuance or renewal of the license [Sec. 5,
Rule IV, Part IV, POEA Rules Governing
Recruitment of Land-Based Workers
(2002); Rule V, Part V, POEA Rules
Governing the Recruitment of Seafarer
(2002)]
CANCELLATION OF LICENSE
Grounds for Cancellation of License of
Recruitment Agency for Local Employment:
(a)Violation of the conditions of license;
(b) Misrepresentation in securing a license
or renewal therof;
(c)Continuous operations despite expiration
of the license;
(d) Incurring two final and executory
suspensions;
 (e) Engaging in labor-only contracting;
(f) Recruitment and placement of underage
workers;
(g) Transferring, conveying or assigning
the license to any person or entity;
(h) Commission of acts prohibited under
Article 34 of the Labor Code, [Sec.34, Rule
VI, Rule Governing Private Employment
Agency for Local Employment]
 Grounds for Cancellation of License of
Recruitment Agency for Overseas
Employment:
(a) Deploying underage workers;
(b) Misrepresentation in securing a license or renewal
thereof;
(c) Recruiting workers for jobs harmful to public
health, morality or dignity of the Philippines;
(d) Change of ownership;
(e) Charging fees in an amount greater than the
allowable fees;
(f) Obliging a worker to pay more than what
was actually received as loan advance;
(g) Charging a fee or bond for any purpose from
an applicant seafarer;
(h) Charging placement fee from workers
deployed to countries which do not allow the
collection of placement fees. [Sec. 5, Rule IV ,
Part IV, POEA Rules Governing Recruitment of
land Based Workers (2002); Rule V. Part V,
POE Rules Governing the Recruitment of
Seafarers (2003)]
 Who has the power to suspend or
cancel the license of recruitment
agencies for overseas employment?
The power suspend or cancel the license or
authority to recruit employees for overseas
employment is concurrently vested upon the
POEA and the Secretary of Labor and
Employment [Trans Action Overseas
Corporation v. Secretary of Labor, 278 SCRA
584].
 THE JURISDICTION OF THE POEA
The POEA has original and exclusively
jurisdiction to hear and decide the
administrative aspect of:

(a) All pre-employment cases arising out of

violation of rules and regulations relating to
licensing and registration, or violation of the
conditions for issuance of license or authority
to recruit workers; and
(b) Disciplinary action cases and other special
cases involving employers, principals,
contracting partners and OFWs processed
by the POEA. [Sec. 6 Rule X, Omnibus Rules
and Regulations Implementing the Migrants
Workers and Overseas Filipino Act of 1995
as amended by R.A. 10022]
Who has jurisdiction over money
claims of migrants workers?

The Labor Arbiters of the National labor

relations Commission have original and
exclusive jurisdiction over money claims
of migrant workers. Section 10 of
Republic Act 8042 provides as follows:
 “SEC. 10 Money Claims.-Not with standing
any provision of law to the contrary, the Labor
Arbiters of the National Labor Relations
Commission (NLRC) shall have the original and
exclusively jurisdiction to hear and decide,
within ninety (90) calendar days after the
filing of the compliant, 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. Consistent with this
mandate, the NLRC shall endeavor to update
and keep abreast with the developments in
the global services in the indusrty.”
 The Minimum Standards for
Employment Contracts of Overseas
(a) Guaranteed wages which shall not be
lower than prescribed minimum wage:
• In the Philippines;
• In the host country; or
• In a bilateral agreement or international
convention duly ratified by the host
country and the Philippines , whichever
is the highest;
b) Free transportation to and from worksite or
offsetting benefits;
c) Free food and accommodation, or offsetting
benefit;
d) Just or authorized causes for termination of
the contract, taking into consideration the
customs, traditions, norms, mores, practice,
company policies and the labor laws and
social
legislation of the host country. [Sec. 2, Rule I,
Part IV, POEA Rules and Regulations Governing
the Recruitment and Employment of Land-Based
Worker (2002)]
 Free Insurance Coverage
Recruitment or manning agencies are
obliged to secure insurance at no cost to the
migrant worker, valid for the duration of the
migrant worker’s employment, covering the
following:
(a) US$15,000.00 for accidental death;
(b) US$10,000.00 for natural death;
(c) US$7,500.00 for permanent total
disability;
(d) Repatriation cost of the worker (including
transport of personal belongings) in case
unjustified dismissal, or return of the worker’s
remains, in case of death;
(e) US$100.00 per month subsistence
allowance for a maximum of six (6) months if
the migrant worker is involved in a case or
litigation in the receiving country;
(f) Money claims which may be awarded to
the migrant worker by the National Labor
Relations Commission;
(g) Cost of transportation excluding visa and
travel document requirements for
compassionate visit by one (1) family member to
the migrant worker who is hospitalized and has
been confined for at least seven (7) consecutive
days;
(h) Medical evacuation, if adequate medical
facility is not available to the migrant worker, as
determined by the insurance company’s
physician and/or a consulting physician; and
(i) Medical repatriation, when medically
necessary as determined by the attending
physician, to be undertaken by the insurance
provider at such time that the migrant worker is
medically cleared for travel by the commercial
carrier. [Sec. 37-A, R.A. 8042, as amended by
R.A. 10022]
 Fees That May Be Charged By
Recruitment Agencies
For Recruitment Agency For Local Employment
(a) Chargeable to the worker:
•Placement fee 20% of the first
month’s basic salary.
(b) Chargeable to the employer:
•Service Fee 20% of the annual salary
of the worker.
•Transportation expenses of worker
from the place of origin to the place of work.
[Secs. 29-31, Rule VIII, Rules and Regulations
Governing Private Recruitment Agency for Local
Employment]
For Recruitment Agency For Overseas
Employment
(a) Chargeable to the worker:
•Placement fee equivalent to one (1) month
salary;
• Documentation expenses, e.g., for
passport, NBI/Police/Barangay Clearance,
authentication, birth certificate, Medicare, trade
test, and medical examination fees.
(b) Chargeable to the principal:
• Service or manning fee to cover services
rendered in the recruitment,
documentation and placement of workers
or seafarers.
•Cost of visa fee, airfare, POEA processing
fee, and OWWA membership fee. [Secs.
1-3, Rule V, Part II, POEA Rules Governing
the Recruitment and Employment of
Land-Based Overseas Workers (2002)]
 Limitation on Charging of Fees
The fees that are chargeable to the worker
shall be charged only when the worker has:
• obtained employment through the efforts
of the recruitment agency; or
• has actually commenced employment
Article 32 of the Labor Code provides that:
ART. 32. Fees to be Paid By Workers Any
person applying with a private-fee charging
employment agency shall not be charged any
fee until he has obtained employment through
its efforts or has actually commenced
employment. Such fee should always be covered
with appropriate receipt clearly showing the
amount paid. The Secretary of Labor shall
promulgate a schedule of allowable fees.
Period to Deploy Migrant Workers
Workers or seafarers should be deployed
within sixty (60) days from the date of issuance
of the Overseas Employment Certificate. [Sec.
3, Rule III, Part III, POEA Rules Governing the
Recruitment and Employment of Land-Based
Workers (2002); Sec. 3, Rule IV, Part III, POEA
Rules and Regulations Governing the
Recruitment and Employment of Seafarers
(2003)]
 Repatriation of Migrant Workers
Repatriation of overseas worker (or his
remains, in case of death) and the transport of
his personal belongings is the primary
responsibility of the recruitment agency. All
costs attendant to repatriation shall be borne by
or charged to the agency concerned or its
principal. However, if the termination of
employment is due solely to the fault of the
worker, the principal or agency will not be
responsible for the repatriation. [Sec. 15, R.A.
8042, as amended]
In case of war, epidemic, disasters or
calamities, natural or man-made, and other
similar events, the OWWA shall undertake the
repatriation. The cost of repatriation is subject
to reimbursement by the responsible principal
or agency. [Sec. 15, R.A. 8042, as amended]
 Migrant workers who are below 18 years old
shall be immediately be repatriated by the
responsible officers in the foreign service. This is
mandatory. [Sec. 16, R.A. 8042, as amended]
Remedy for Migrant Workers Illegally
Dismissed or Not Properly
Compensated
Migrant workers illegally dismissed or not
properly compensated can file complaint for
illegal dismissal or money claims before the
Regional Arbitration Branch of the National
Labor Relations Commission. Section 10 of
Republic Act 8042 provides as follows:
“SEC. 10. Money Claims.
Notwithstanding any provision of law to the
contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall have
the original and exclusive jurisdiction to hear
and decide, within ninety (90) calendar days
after the filing of the 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. Consistent with his mandate,
the NLRC shall endeavor to update and keep
abreast with the developments in the global
services in the industry.”
 Reliefs for Migrant Workers Who Are
Illegally Dismissed
(a) Full reimbursement of placement fee and
the deductions made, with interest of twelve
percent (12%) per annum; and
(b) Salaries for the unexpired portion of his
employment contract.
This is expressly provided for in Section 10 of
the Migrant Workers and Overseas Filipinos Act
of 1995 which reads as follows:
 “SEC.10. Money Claims .x x x In case of
termination of overseas employment without
just, valid, or authorized cause as defined by
law or contract, or any unauthorized
deductions from the migrant worker’s salary,
the worker shall be entitled to the full
reimbursement of his placement fee and the
deductions made with interest of twelve
percent (12%) per annum, plus his salaries for
the unexpired portion of his employment
contract [or for three (3) months for every year
of the unexpired term, whichever is less].”

NOTE: The clause “or for three(3) months for

every year of the unexpired term, whichever is
less” has been declared unconstitutional in the
case of Serrano v. Gallant Maritime Services,
G.R. No. 167614, March 24, 2009.
 Solidary Obligation
Recruitment agencies are jointly and
severally liable with the principal or employer
for all claims and liabilities which may arise in
connection with the implementation of the
employment contract. This could be gleaned
from Section 10 of Republic Act 8042, otherwise
known as the Migrant Workers and Overseas
Filipinos Act of 1995, which provides as follows:
 “SEC. 10. Money Claims. x x x The liability
of the principal/employer and the
recruitment/placement agency for and any
and all claims under this section shall be joint
and several. This provision shall be
incorporated in the contract for overseas
employment and shall be a condition
precedent for its approval.” x x x
 Illegal Recruitment
Illegal recruitment is committed in the
following manner:
(a) When a person who is not holder of a
license or authority engages in recruitment and
placement of workers; or
(b) When a person, regardless of whether or
not he is a holder of a license or authority,
commits any of the prohibited practices under:
•Articles 34 of the Labor Code (in case of
local employment); or
•Section 6 of Republic Act 8042 (in case of
overseas employment).
 The Prohibited Practices
(a) Charging an amount greater than the
prescribed allowable fees;
NOTE: The allowable fees that can be
charged to the worker are as follows:
(a) For recruitment agencies for local
employment:
(i) placement fee only in an amount
equivalent to 20% of the first month’s basic
salary.
(b) For recruitment agencies for overseas
employment:
(i) Placement fee equivalent to one (1)
month salary; and
(ii) Documentation expenses, e.g., for
passport, NBI/Police/Barangay Clearance,
authentication, birth certificate, medicare,
trade test, and medical examination fees.
 (b) Obliging a worker pay an amount greater
than that actually received by him as loan;
NOTE: Recruitment agencies for overseas
employment may extend loan to an overseas
Filipino worker for payment of the allowable
placement fees, but they cannot charge interest
exceeding eight percent (8%) per annum.
(c) Publishing false notice or information in
relation to recruitment or employment;
NOTE: Recruitment agencies who
advertise job vacancies for non-existent projects
or principals are liable for illegal recruitment
under this prohibition.
(d) Giving false information in securing a
license or authority;
NOTE: Recruitment agencies who submit
any falsified supporting document in support of
its application for license, such as income tax
returns or savings account certificate are liable
for illegal recruitment under this prohibition.
 (e) Reprocessing workers through a job order
that pertains to a work that is:
• nonexistent,
• different from the actual overseas work, or
• with a different employer whether
registered or not with the POEA;
(f) Inducing a worker already employed to
quit his employment in order to offer him
another,
 NOTE: The act of inducing or attempting to
induce a worker to transfer to another employer
will not be deemed illegal if the intent is to
liberate the worker from oppressive conditions
of employment.
(g) Influencing a person not to employ
workers who:
• did not apply for employment with his
agency; or
 •have formed, joined, supported a union
or workers’ organization;
(h) Recruiting workers in jobs harmful to
public health or morality or dignity of the
Philippines;
NOTE: This is exemplified by the act of
trafficking in persons, i.e., the recruitment of
persons for the purpose of exploitation, such as
prostitution, forced labor, slavery, servitude, or
the removal/sale of organs.
 (i) Obstructing inspection by the Secretary
of Labor or his duly authorized representatives;
NOTE: Under Article 37 of the Labor
Code, the Secretary of Labor and Employment or
his duly authorized representative is vested with
the power to inspect the premises, books of
accounts and records of any person engaged in
recruitment and placement of workers.
Obstructing or attempting to obstruct such
inspection is a prohibited activity which may
hold the recruitment agency liable for illegal
recruitment.
(j) Substituting or altering duly approved
employment contracts;
NOTE: To fall within the ambit of the
prohibition, the alteration should put the worker
at a disadvantage. If the alteration is beneficial
to the worker, the prohibition will not apply.
(k) Engaging directly or indirectly in the
management of the travel agency; and
 NOTE: Recruitment agencies, including its
officers or employees cannot manage or operate
a travel agency because officers, board members
or partners of a travel agency, are disqualified
from engaging in recruitment and placement of
overseas workers.
(l) Allowing a foreigner to manage a
licensed recruitment/manning agency;
NOTE: The privilege to engage in
recruitment and placement of workers is
available only to Filipino citizens. Thus, a
recruitment agency cannot legally allow an alien
to manage the agency because that would
circumvent the prohibition.
(m) Failure to deploy a contracted worker
without valid reason;
NOTE: Recruitment agencies must
deploy the workers or seafarers within sixty (60)
days from the date of issuance of the Overseas
Employment Certificate.
 (n) Withholding travel documents from
applicants for monetary or financial
considerations;
(o) Failure to file reports on:
• status of employment,
• placement vacancies,
• remittance of foreign exchange earnings,
• separation from jobs,
• departures, and
 •such other information as may be
required by the Secretary of Labor;
(p) Failure to reimburse the processing
expenses of a worker not deployed without his
fault;
(q) Granting loan for placement and
allowable fees with interest exceeding 8% per
annum;
(r) Obliging the migrant worker to :
•Issue postdated checks as security for the
 loan for placemen and allowable fees; or
•Avail of loan only from specifically
designated persons;
(s) Refusing to condone or renegotiate a
loan incurred by an overseas Filipino worker
after the latter’s employment contract has
been prematurely terminated without fault of
the worker;
(t) Obliging an overseas Filipino worker to
undergo health examination only from
specifically designated institutions;
NOTE: The only instance when a
recruitment or manning agency can require an
overseas worker to undergo health examination,
from specifically designated institutions or
persons is when the cost of medical examination
is shouldered by the principal or shipowner.
(u) Obliging an overseas Filipino worker to
undergo training, seminar, instruction or
schooling of any kind only from specifically
designated institutions, entities or persons;
NOTE: The only instance when a
recruitment or manning agency can require an
overseas worker to undergo training, schooling,
or seminar from specifically designated
institutions or persons is when the cost of
training or seminar, or schooling is shouldered
by the principal or shipowner.
 (v) Engaging in recruitment activity during
the suspension of its license; and
(w) Passing on to the overseas Filipino
worker the obligation to pay the cost of the
compulsory worker’s insurance coverage.
 Qualified Illegal Recruitment
Illegal recruitment is qualified:
(a) if it is committed by a syndicate, i.e.,
carried out by a group of three (3) or more
persons conspiring or confederating with one
another; or
(b) if it is committed in large scale, i.e.,
carried out against three (3) or more persons,
individually or as a group.
 Illegal recruitment, if committed by a
syndicate or in a large scale, is considered an
offense involving economic sabotage, hence, a
higher penalty is imposed.
 Illegal Recruitment and Estafa
Illegal recruitment is a crime separate and
distinct from estafa. A person who violates
Article 34 of the Labor Code or Section 6 of the
Migrant Workers Act of 1995 can be charged and
convicted separately of illegal recruitment and
estafa because illegal recruitment is malum
prohibitum
where criminal intent is not necessary for
conviction, while estafa is malum in se where
criminal intent of the accused is necessary for
conviction [People v. Manungas, 231 SCRA 1].
 Prescription of Action for Illegal
Recruitment
(a) In case of local employment:
• Three (3) years pursuant to Articles 294 of the
Labor Code.
(b) In case of overseas employment:
• Five (5) years for simple illegal
recruitment,
• Twenty (20) years for qualified illegal
recruitment [Sec. 12, R.A. 8042].