CHAPTER 2

REGULATION OF RECRUITMENT
AND PLACEMENTACTIVITIES
 ARTICLE 25
PRIVATE SECTOR PARTICIPATION IN THE
RECRUITMENT AND PLACEMENT OF WORKERS

Pursuant to national development objectives and in order to harness and

maximize the use of private sector resources and initiative in the
development and implementation of a comprehensive employment program,
the private employment sector shall participate in the recruitment and
placement of workers, locally and overseas, under such guidelines, rules and
regulations as may be issued by the Secretary of Labor.
 ARTICLE 25
PRIVATE SECTOR PARTICIPATION IN THE
RECRUITMENT AND PLACEMENT OF WORKERS

“The State recognizes the indispensable role of the

private sector, encourages private enterprise and
provides incentives to needed investments.”

Article II, Section 20, 1987 Philippine Constitution

 ARTICLE 26
TRAVEL AGENCIES PROHIBITED TO RECRUIT

Travel agencies and sales agencies of airline

companies are prohibited from engaging in the
business of recruitment and placement of workers for
overseas employment whether for profit or not.
 Under RA No. 10022, Sec. 5 (j), an officer or
agent of a recruitment or placement agency is
not allowed 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 travel agency.
 ARTICLE 27
CITIZENSHIP REQUIREMENT

Only Filipino citizens or corporations, partnerships or

entities at least seventy-five percent (75%) of the
authorized and voting capital stock of which is owned and
controlled by Filipino citizens shall be permitted to
participate in the recruitment and placement of workers,
locally or overseas.
 ARTICLE 28
CAPITALIZATION

All applicants for authority to hire or renewal of license to

recruit are required to have such substantial capitalization
as determined by the
Secretary of Labor.
 ARTICLE 29
NON-TRANSFERABILITY OF LICENSE
OR AUTHORITY

No license or authority shall be used directly or indirectly by any person

other than the one in whose favor it was issued or at any place other than
that stated in the license or authority, 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.
 ARTICLE 30 – REGISTRATION FEES

The Secretary of Labor shall promulgate a

schedule of fees for the registration of all
applicants for license or authority.

Sec. 4, Rule II of the POEA Rules on Licensing and Regulations

 ARTICLE 31 – BONDS

All applicants for license or authority shall post such

cash and surety bonds as determined by the Secretary of
Labor to guarantee compliance with prescribed
recruitment procedures, rules and regulations, and terms
and conditions of employment as may be appropriate.
 ARTICLE 32
FEES TO BE PAID BY WORKERS

Any person applying with a private fee-charging employment agency

for employment assistance shall not be charged any fee until he has
obtained employment through its efforts or has actually commenced
employment. Such fee shall be always covered with the appropriate
receipt clearly showing the amount paid. The Secretary of Labor shall
promulgate a schedule of allowable fees.
 ARTICLE 33
REPORTS ON EMPLOYMENT STATUS

Whenever the public interest requires, the Secretary of Labor

may direct all persons or entities within the coverage of this Title
to submit a report on the status of employment, including job
vacancies, details of job requisitions, separation from jobs,
wages, other terms and conditions and other employment data.
 ARTICLE 34
PROHIBITED PRACTICES
It shall be unlawful for any individual, entity, licensee, or holder of authority:

To charge or accept, directly or indirectly, any amount greater than that specified in the
1 schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any
amount greater than that actually received by him as a loan or advance

To furnish or publish any false notice or information or document in relation to recruitment

2 or employment
 ARTICLE 34
PROHIBITED PRACTICES
It shall be unlawful for any individual, entity, licensee, or holder of authority:

To give any false notice, testimony, information or document or commit any act of
3 misrepresentation for the purpose of securing a license or authority under this Code

To induce or attempt to induce a worker already employed to quit his employment in order to
4 offer him to another unless the transfer is designed to liberate the worker from oppressive
terms and conditions of employment
 ARTICLE 34
PROHIBITED PRACTICES
It shall be unlawful for any individual, entity, licensee, or holder of authority:

To influence or to attempt to influence any person or entity not to employ any worker who
5 has not applied for employment through his agency

To engage in the recruitment or placement of workers in jobs harmful to public health or

6 morality or to the dignity of the Republic of the Philippines
 ARTICLE 34
PROHIBITED PRACTICES
It shall be unlawful for any individual, entity, licensee, or holder of authority:

To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly

7 authorized representatives

To fail to file reports on the status of employment, placement vacancies, remittance of

8 foreign exchange earnings, separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor
 ARTICLE 34
PROHIBITED PRACTICES
It shall be unlawful for any individual, entity, licensee, or holder of authority:

To substitute or alter employment contracts approved and verified by the Department of

9 Labor from the time of actual signing thereof by the parties up to and including the periods
of expiration of the same without the approval of the Secretary of Labor

To become an officer or member of the Board of any corporation engaged in travel agency or
10 to be engaged directly or indirectly in the management of a travel agency

To withhold or deny travel documents from applicant workers before departure for monetary
11 or financial considerations other than those authorized under this Code and its implementing
rules and regulations.
 ARTICLE 35
SUSPENSION AND/OR
CANCELLATION OF LICENSE OR AUTHORITY

The Minister of Labor shall have the power to suspend or cancel any license or
authority to recruit employees for overseas employment for the violation of rules
and regulations issued by the ministry of labor, the overseas employment
development board, or for the violation of the provisions of this and other
applicable laws, General orders and letters of instructions.

Trans Action Overseas Corporation vs DOLE Secretary

G.R. No. 109583 September 5, 1997
 POEA
PHILIPPINE OVERSEAS
EMPLOYMENT ADMINISTRATION
 PHILIPPINE OVERSEAS EMPLOYMENT
ADMINISTRATION

R.A. no. 9422 which amended the R.A. 8042
The act aims to strengthen the functions of the
POEA
The Administration is to inform the migrant
workers of their rights and provide redress when
said rights have been violated.
REPUBLIC, REPRESENTED BY POEA
v. PRINCIPALIA MANAGEMENT AND
PERSONNEL CONSULTANTS, INC. G.R. No.
198426, September 02, 2015
Section 23(b.1)
Promote the employment of Overseas
workers
Regulate power in the recruitment of the
public sector
Oversee the placement of the workers in
the countries of said workplace
Monitor the employment of the Filipino
workers
The POEA shall exercise original and exclusive jurisdiction to hear and decide:

(a) all pre-employment/recruitment violation cases which are administrative in

character, involving or arising out of violations of Rules and Regulations
relating to licensing and registration, including refund of fees collected from
the workers or violation of the conditions for issuance of license or authority
to recruit workers; and

(b) disciplinary action cases and other special cases, which are administrative in
character, involving employers, principals, contracting partners and OFWs
processed by the POEA.
 ARTICLE 36
REGULATORY POWER

The Secretary of Labor shall have the power to restrict and

regulate the recruitment and placement activities of all
agencies and is hereby authorized to issue orders and
promulgate rules and regulations to carry out the objectives
and implement the provisions
 ARTICLE 37
VISITORIAL POWER

The Secretary of Labor or his authorized

representatives may, at any time, inspect the premises,
books of accounts and records of the any person or
entity covered by the title, require it to submit reports
regularly on the prescribed forms and act on violation
of any provision of this title.
 VISITIATION IN LIEU OF ART 128

The visitorial grants to said DOLE officials, including labor and

employment  officers, access to employer's records and premises at any time of
the day or night whenever work is being undertaken therein, and the right to
copy there from such records, to question any employee and investigate any
fact, condition or matter which may be necessary to determine violations or
which may aid in the enforcement of the Labor Code and of any labor law,
wage order or rules and regulations issued pursuant thereto (Art. 128)

People’s Broadcasting System vs. Sec. of Labor, March 6, 2012

 DOLE
DEPARTMENT OF LABOR
AND EMPLOYMENT
 DEPARTMENT OF LABOR AND
EMPLOYMENT
“The primary policy-making, programming, coordinating, and administrative entity of the Executive Branch
of the government in the field of labor and employment.” The Administrative Code mandates DOLE to
assume primary responsibility for:

a) The promotion of gainful employment opportunities and the optimization of the development and
utilization of the country’s manpower resources;

b) The advancement of worker’s welfare by providing for just and humane working conditions and terms of
employment;

c) The maintenance of industrial peace by promoting harmonious, equitable and stable employment relations
that assure protection for the rights of all concerned parties.
The DOLE shall see to it that labor and social welfare laws in the foreign countries are fairly applied to
migrant workers and whenever applicable, to other overseas Filipinos, including the grant of legal assistance
and the referral to proper medical centers or hospitals.
 Article 38.
Illegal Recruitment
A) ANY RECRUITMENT ACTIVITIES, INCLUDING THE
P R O H I B I T E D P R A C T I C E S E N U M E R AT E D U N D E R A RT I C L E 3 4
O F T H I S C O D E , TO B E U N D E RTA K E N B Y N O N - L I C E N S E E S O R
N O N - H O L D E R S O F A U T H O R I T Y, S H A L L B E D E E M E D I L L E G A L
A N D P U N I S H A B L E U N D E R A RT I C L E 3 9 O F T H I S C O D E . T H E
D E PA RT M E N T O F L A B O R A N D E M P L O Y M E N T O R A N Y L AW
E N F O R C E M E N T O F F I C E R M AY I N I T I AT E C O M P L A I N T S U N D E R
T H I S A RT I C L E .
 Article 38.
Illegal Recruitment
(B) Illegal recruitment when committed by a syndicate or in large scale shall
be considered an offense involving economic sabotage and shall be
penalized in accordance with Article 39 hereof. Illegal recruitment is
deemed committed by a syndicate if carried out by a group of three (3)
or more persons conspiring and/or confederating with one another in
carrying out any unlawful or illegal transaction, enterprise or scheme
defined under the first paragraph hereof. Illegal recruitment is deemed
committed in large scale if committed against three (3) or more persons
individually or as a group.
 Article 38.
Illegal Recruitment
(C) The Secretary of Labor and Employment or his duly authorized
representatives shall have the power to cause the arrest and detention of
such non-licensee or non-holder of authority if after investigation it is
determined that his activities constitute a danger to national security and
public order or will lead to further exploitation of job-seekers. The
Secretary shall order the search of the office or premises and seizure of
documents, paraphernalia, properties and other implements used in
illegal recruitment activities and the closure of companies,
establishments and entities found to be engaged in the recruitment of
workers for overseas employment, without having been licensed or
authorized to do so
 Article 38.
Illegal Recruitment
A.

Illegal Recruitment by a non-licensee

Any recruitment activity, done either for local or overseas employment, whether for
profit or not, by any individual or entity without the required license from the BLE or
the POEA constitutes illegal recruitment. The activities considered as "recruitment
and placement”are canvassing, enlisting, contracting, transporting, utilizing, hiring
or procuring workers, and includes referral, contract services, promising or
advertising for employment locally or abroad, whether for profit or not. (Article 13)
In short, illegal recruitment is any recruitment and placement act under Article 13
done by anyone without appropriate license from BLE or POEA.
 Article 38.
Illegal Recruitment
B.
Other Illegal Recruitment Acts by either a non-licensee or a licensee
B.1 Relating to Local Employment: Eight Acts (Eight acts listed in BLE's D.O.No. 141-14, November
20, 2014)
1. [Overcharging] To charge or accept directly or indirectly any amount or to make a worker pay the agency
or its representatives any amount greater than that actually loaned or advanced to him;
2. [False Notice] To furnish or publish any false notice or
information in relation to recruitment or employment;
3. [Misrepresentation to Secure License) To give any false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of securing a license or authority:
 Article 38.
Illegal Recruitment
2. ILLEGAL RECRUITMENT AS ECONOMIC SABOTAGE
Article 38(b) of the Labor Code, as amended by P.D. No. 2018 as well as Section 6 of R.A. No.
8042, provides that illegal recruitment shall be considered an offense involving economic
sabotage if any of the qualifying circumstances exists, namely:
 a) When illegal recruitment is committed by a syndicate, i.e., if it is carried out by a group of
three or more persons conspiring and/or confederating with one another; or
b) When illegal recruitment is committed in large scale, i.e., if it is committed against three or
more persons individually or as a group.
 Article 38.
Illegal Recruitment
PERSONS LIABLE FOR ILLEGAL RECRUITMENT
The persons criminally liable for illegal recruitment and other offenses are the principals,
accomplices and accessories. In case of juridical persons, the officers having control,
management or direction of their business who are responsible for the commission of the
offense and the responsible employees/agents shall be liable.
Section 10, R.A. No. 8042 holds the corporate directors, officers or partners jointly and
solidarily liable with their company for money claims filed by OFWs against their
employers and the recruitment firms.
The Court upheld the RTC ruling that this provision is unconstitutional. Absent sufficient proof
that the corporate officers and directors had knowledge of and allowed the illegal
recruitment, making them automatically liable would violate their right to due process of
law
 ARTICLE 39 PENALTIES

a) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P100,000)
shall be imposed if illegal recruitment constitutes economic sabotage as defined herein;

(b) Any licensee or holder of authority found violating or causing another to violate any
provision of this Title or its implementing rulesand regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than two years nor more than five
years or a fine of not less than P10,000 nor more than P50,000, or both such imprisonment
and fine, at the discretion of the court;
 ARTICLE 39 PENALTIES

(c) Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than four years nor more than eight years or a fine of not less than
P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion of the court;

(d) If the offender is a corporation, partnership, association or

entity, the penalty shall be imposed upon the officer or officers of the
corporation, partnership, association or entity responsible for violation,
and if such officer is an alien, he shall, in addition to the penalties herein
prescribed, be deported without further proceedings; and

.
 ARTICLE 39 PENALTIES

(e) In every case, conviction shall cause and carry the automatic
revocation of the license or authority and all the permits and privileges
granted to such person or entity under this Title, and the forfeiture of the
cash and surety bonds in favor of the Overseas Employment Development
Board or the National Seamen Board, as the case may be, both of which are
authorized to use the same exclusively to promote their objectives
 ARTICLE 39 PENALTIES

VENUE

A criminal action arising from illegal recruitment shall be filed with the Regional Trial Court of
the province or city where the offense was committed or where the offended party actually
resides at the time of the commission of the offense. The court where the criminal action is
first filed shall acquire jurisdiction to the exclusion of other courts. These provisions also
apply to those criminal actions that have already been filed in court
at the time of the effectivity of this Act. (R.A. No. 8042)
 ARTICLE 39 PENALTIES

MANDATORY PERIODS

The preliminary investigations of cases under this Act (R.A. No.8042) shall be terminated
within a period of 30 calendar days from the date of their filing. Where the preliminary
investigation is conducted by a prosecutor and a prima facie case is established, the
corresponding information shall be filed in court within 24 hours from the termination of
the investigation. If the preliminary investigation is conducted by a judge and a prima facie
case is found to exist, the corresponding information shall be filed by the proper
prosecution officer within 48 hours from the date of receipt of the records of the case.?
 ARTICLE 39 PENALTIES

PRESCRIPTIVE PERIODS

Illegal recruitment punishable under Article 39 prescribes in three years, applying Article 305.
Illegal recruitment cases under R.A. No. 8042 prescribes in five years.
Provided, however, That illegal recruitment cases involving economic sabotage prescribes in 20
years.
 REPUBLIC ACT NO. 8042
Migrant Workers and Overseas Filipinos Act of 1995

An act to institute the policies of overseas employment and establish a higher standard of
protection and promotion of the welfare of migrant workers, their families and
overseas Filipinos in distress, and for other purposes.

 (a) In the pursuit of an independent foreign policy and while considering national
sovereignty, territorial integrity, national interest and the right to self-determination
paramount in its relations with other states, the State shall, at all times, uphold the
dignity of its citizens whether in country or overseas, in general, and Filipino migrant
workers, in particular.
 REPUBLIC ACT NO. 8042
Migrant Workers and Overseas Filipinos Act of 1995

Amended By

REPUBLIC ACT No. 10022

AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE
MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS
AMENDED, FURTHER IMPROVING THE STANDARD OF PROTECTION AND
PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES
AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES
 Comparison of Penalties
R.A 8042
SEC. 7. PENALTIES -
(a) 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 not less than two hundred thousand pesos (P200,000.00) nor more than five
hundred thousand pesos (P500,000.00).
 (b) The penalty of life imprisonment and a fine of not less than five hundred thousand
pesos (P500,000.00) nor more than one million pesos (P1,000,000.00) 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 eighteen (18) years of age or committed by a non-licensee or
non-holder of authority.
 Comparison of Penalties
R.A 10022

Section 6. Section 7 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 7. Penalties. -
"(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than twelve (12) years and one (1) day but not more than
twenty (20) years and a fine of not less than One million pesos (P1,000,000.00) nor more than Two million pesos (P2,000,000.00).

"(b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2,000,000.00) nor more than Five million pesos (P5,000,000.00) shall be imposed if
illegal recruitment constitutes economic sabotage as defined therein.

"Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is less than eighteen (18) years of age or committed by a non-licensee or
non-holder of authority.

"(c) Any person found guilty of any of the prohibited acts 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 not less than Five hundred thousand pesos (P500,000.00) nor more than One million pesos (P1,000,000.00).

"If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported without further proceedings.
"In every case, conviction shall cause and carry the automatic revocation of the license or registration of the recruitment/manning agency, lending institutions, training
school or medical clinic."