ARTICLE 5.

RULES AND
REGULATIONS

The Department of Labor and Employment and other

government agencies charged with the administration
and enforcement of this Code or any of its parts shall
promulgate the necessary implementing rules and
regulations. Such rules and regulations shall become
effective fifteen (15) days after announcement of
their adoption in newspapers of general circulation.

DEPARTMENT ORDER NO. 1, SERIES OF 1988

Guidelines Governing the Temporary Suspension of
Employment of Filipino Domestic and Household Workers
 ARTICLE 5. RULES AND REGULATIONS

The Department of Labor and Employment and other government

agencies charged with the administration and enforcement of this
Code or any of its parts shall promulgate the necessary
implementing rules and regulations. Such rules and regulations
shall become effective fifteen (15) days after announcement of
their adoption in newspapers of general circulation.

WHEN INVALID

A rule or regulation promulgated by an administrative body,

such as the Department of Labor, to implement a law, in excess
of its rule-making authority, is void.
 ARTICLE 6. APPLICABILITY
All rights and benefits granted to workers under this
Code shall, except as may otherwise be provided
herein, apply alike to all workers, whether agricultural
or non-agricultural.

APPLICABILITY TO GOVERNMENT CORPORATIONS

Government corporations created by Congress are subject to Civil

Service rules, while those incorporated under the general
Corporation Law are covered by the Labor Code.

NON-APPLICABILITY TO GOVERNMENT AGENCIES

“agency” or “instrumentality” (contemplates an authority to which

the state delegates government power for the performance of a state
function)
 ARTICLE 6. APPLICABILITY
All rights and benefits granted to workers under this
Code shall, except as may otherwise be provided
herein, apply alike to all workers, whether agricultural
or non-agricultural.

REPUBLIC ACT NO. 11232 – AN ACT PROVIDING FOR THE REVISED

CORPORATION CODE OF THE PHILIPPINES

Section 2. Corporation Defined. – A corporation is an artificial being created

by operation of law, having the right of succession and the powers, attributes,
and properties expressly authorized by law or incidental to its existence.

Section 3. Classes of Corporations. – Corporations formed or organized

under this Code may be stock or nonstock corporations. Stock corporations
are those which have capital stock divided into shares and are authorized to
distribute to the holders of such shares, dividends, or allotments of the surplus
profits on the basis of the shares held. All other corporations are nonstock
corporations.
 ARTICLE 6. APPLICABILITY
All rights and benefits granted to workers under this
Code shall, except as may otherwise be provided
herein, apply alike to all workers, whether agricultural
or non-agricultural.
KEY TAKEAWAYS

• Corporations possess many of the same legal rights

and responsibilities as individuals.
• Limited liability of a corporation means that its
shareholders are not personally responsible for the
company's debts.
• A corporation may be created by an individual or a
group of people.
 ARTICLE 6. APPLICABILITY
All rights and benefits granted to workers under this
Code shall, except as may otherwise be provided
herein, apply alike to all workers, whether agricultural
or non-agricultural.

DOES THE LABOR CODE APPLY

EVEN IF THERE IS NO
EMPLOYEE-EMPLOYER
RELATIONSHIP?
 ARTICLE 6. APPLICABILITY
All rights and benefits granted to workers under this
Code shall, except as may otherwise be provided
herein, apply alike to all workers, whether agricultural
or non-agricultural.

APPLICABILITY WITHOUT EMPLOYER-EMPLOYEE

RELATIONSHIP

The Labor Code may apply even if the parties are not
employers and employees of each other.
EMANCIPATION OF TENANTS
What law governs agrarian reform?

What are the objectives of agrarian

reform?

What process and conditions are

observed to make a tenant-farmer an
owner under the agrarian reform
program?
ARTICLE 7. STATEMENT OF OBJECTIVES

Inasmuch as the old concept of land ownership by a

few has spawned valid and legitimate grievances
that gave rise to violent conflict and social tension
and the redress of such legitimate grievances being
one of the fundamental objectives of the New
Society, it has become imperative to start
reformation with the emancipation of the tiller of the
soil from his bondage.
 ARTICLE 8. TRANSFER OF LANDS TO
TENANT-FARMERS

Being a valid part of the labor force, tenant-

farmers on private agricultural lands primarily
devoted to rice and corn under a system of share
crop or lease tenancy whether classified as landed
estate or not shall be deemed owner of a portion
constituting a family-size farm of five (5)
hectares if not irrigated and three (3) hectares if
irrigated.
In all cases, the landowners may retain an
area of not more than seven (7) hectares if such
landowner is cultivating such area or will now
cultivate it.
 ARTICLE 8. TRANSFER OF LANDS TO TENANT-
FARMERS

Being a valid part of the labor force, tenant-farmers on private

agricultural lands primarily devoted to rice and corn under a system of share crop
or lease tenancy whether classified as landed estate or not shall be deemed
owner of a portion constituting a family-size farm of five (5) hectares if not
irrigated and three (3) hectares if irrigated.
In all cases, the landowners may retain an area of not more than seven
(7) hectares if such landowner is cultivating such area or will now cultivate it.

SHARECROPPING

A form of agriculture in which a landowner allows a

tenant to use the land in return for a share of the crops
produced on their portion of the land.
 ARTICLE 8. TRANSFER OF LANDS TO TENANT-FARMERS

Being a valid part of the labor force, tenant-farmers on private agricultural lands
primarily devoted to rice and corn under a system of share crop or lease tenancy whether
classified as landed estate or not shall be deemed owner of a portion constituting a
family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated.
In all cases, the landowners may retain an area of not more than seven (7) DAR ADMINISTRATIVE
hectares if such landowner is cultivating such area or will now cultivate it.
ORDER NO. 02-06
Agricultural Leasehold Contract — A tenurial arrangement, whether
written or oral, express or implied, between the lessor-landholder and
lessee-farmer where the former consents to the latter's personal
cultivation of piece of agricultural land in consideration of a fixed rental
either in money or produce or both.
Agricultural Lessee — A person who, by himself and with the aid
available from within his immediate farm household, cultivates the land,
belonging to or possessed by another, with the latter's consent for
purposes of production, for a price certain in money or in produce or
both. It is distinguished from civil lessee as understood in the Civil Code
of the Philippines. (R.A. No. 3844, Section 166 (2)).
 ARTICLE 8. TRANSFER OF LANDS TO TENANT-FARMERS

Being a valid part of the labor force, tenant-farmers on private agricultural lands
primarily devoted to rice and corn under a system of share crop or lease tenancy whether
classified as landed estate or not shall be deemed owner of a portion constituting a
family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated.
In all cases, the landowners may retain an area of not more than seven (7)
hectares if such landowner is cultivating such area or will now cultivate it.

DAR ADMINISTRATIVE ORDER NO. 02-06

Agricultural Lessor — A person, natural or juridical, who, either as
owner, civil law lessee, usufructuary, or legal possessor, lets or grants
to another the cultivation and the use of his land for a price certain.
(R.A. 3844, Section 166 (3)).
DAR ADMINISTRATIVE ORDER NO. 03-90
Landed Estates are former haciendas or landholdings of private
individuals or corporations which have been acquired by the
Government under different laws, for redistribution and resale to
deserving tenants and landless farmers.
 ARTICLE 9. DETERMINATION OF LAND VALUE

For the purpose of determining the cost of the land to be

transferred to the tenant-farmer, the value of the land shall be
equivalent to two and one-half (2-1/2) times the average
harvest of three (3) normal crop years immediately preceding
the promulgation of Presidential Decree No. 27 on October 21,
1972.
The total cost of the land, including interest at the rate
of six percent (6%) per annum, shall be paid by the tenant in
fifteen (15) years of fifteen (15) equal annual amortizations.
In case of default, the amortizations due shall be paid by
the farmers’ cooperative in which the defaulting tenant-farmer is
a member, with the cooperative having a right of recourse against
him.
The government shall guarantee such amortizations with
shares of stock in government-owned and government-controlled
corporations.
LV = 2.5(x); where x is the average
harvest for 3 normal crop years

LV + interest for 15 years = TOTAL

LAND VALUE (TLV) =
2.5x+[15(2.5x*.06)]

Annual Amortization = TLV/15

ARTICLE 10. CONDITIONS OF OWNERSHIP

No title to the land acquired by the tenant-

farmer under Presidential Decree No. 27 shall be
actually issued to him unless and until he has become
a full-fledged member of a duly recognized
farmers’ cooperative.
Title to the land acquired pursuant to
Presidential Decree No. 27 or the Land Reform
Program of the Government shall not be transferable
except by hereditary succession or to the
Government in accordance with the provisions of
Presidential Decree No. 27, the Code of Agrarian
Reforms and other existing laws and regulations.
 ARTICLE 11. IMPLEMENTING AGENCY

The Department of Agrarian Reform shall

promulgate the necessary rules and regulations to
implement the provisions of this Chapter.
PRE-EMPLOYMENT
 ARTICLE 12. STATEMENT OF OBJECTIVES
It is the policy of the State:

(a) To promote and maintain a state of full employment through

improved manpower training, allocation and utilization;
(b) To protect every citizen desiring to work locally or overseas by
securing for him the best possible terms and condition of employment;
(c) To facilitate a free choice of available employment by persons
seeking work in conformity with the national interest;
(d) To facilitate and regulate the movement of workers in conformity
with the national interest;
(e) To regulate the employment of aliens, including the establishment
of a registration and/or work permit system;
(f) To strengthen the network of public employment offices and
rationalize the participation of the private sector in the recruitment and
placement of workers, locally and overseas, to serve national development
objectives;
(g) To insure careful selection of Filipino workers for overseas
employment in order to protect the good name of the Philippines abroad.
The Unemployment Problem
The Unemployment Problem
The Unemployment Problem
 UNEMPLOYMENT
- A term referring to individuals who are employable and seeking a job but are
unable to find a job

UNEMPLOYMENT RATE
- Percentage of unemployed individuals in an economy among individuals
currently in the labor force

UNDEREMPLOYMENT
- When a person does not work full time or takes a job that does not reflect
their actual training and financial needs (visible vs. invisible)

UNDEREMPLOYMENT RATE
- Percentage of the total number of underemployed persons to the total
number of employed persons

LABOR FORCE PARTICIPATION RATE

-Percentage of the total number of persons in the labor force to the total
population 15 years old and over
 THE DOLE: ITS RESPONSIBILITY

The Administrative Code of 1987 (Executive

Order No. 292) names the Department of
Labor and Employment is “the primary
policy-making, programming, coordinating,
and administrative entity of the Executive
Branch of the government in the field of
labor and employment”.
Primary Responsibilities of DOLE:

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.
 - What government agencies are created to
promote employment opportunities?
- How does the POEA protect and assist the
OFWs?
- Who has adjudicatory jurisdiction over claims by
OFWs?
- What significant amendments to the Labor Code
are introduced by RA No 8042?

- Are POEA-approved employment contracts

immutable?

RECRUITMENT AND
PLACEMENT OF WORKERS
ARTICLE 13. DEFINITIONS

(a) “Worker” means any member of the labor force,

whether employed or unemployed.

(b) “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.
ARTICLE 13. DEFINITIONS

(c) “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.

(d) “License” means a document issued by the

Department of Labor authorizing a person or entity to
operate a private employment agency.

(e) “Private recruitment entity” means any person or

association engaged in the recruitment and placement
of workers, locally or overseas, without charging,
directly or indirectly, any fee from the workers or
employers.
ARTICLE 13. DEFINITIONS

(f) “Authority” means a document issued by the

Department of Labor authorizing a person or association
to engage in recruitment and placement activities as a
private recruitment entity.

(g) “Seaman” means any person employed in a vessel

engaged in maritime navigation.

(h) “Overseas employment” means employment of a

worker outside the Philippines.

(i) “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. (Emigrant vs Immigrant)
ARTICLE 13 (b) CONSTRUED; WHAT
CONSTITUTES RECRUITMENT AND PLACEMENT

CASE EXAMPLE

People vs. Panis, 142 SCRA 664 (1986)

Facts: Four separate criminal complaints were filed against Abug

for operating a fee-charging employment agency without first
securing a license. But Abug argued that the complaints did not
charge an offense as he was charged with illegally recruiting only
one person in each of the four information. Abug claimed that under
Article 13(b) there would be illegal recruitment only when two or
more persons in any manner were promised or offered any
employment for a fee.

Ruling: The Court ruled that the number of persons is not an

essential ingredient of the act of recruitment and placement of
workers.
ARTICLE 14. EMPLOYMENT PROMOTION

The Secretary of Labor shall have the power and

authority:

(a) To organize and establish new employment

offices in addition to the existing employment
offices under the Department of Labor as the
need arises;

(b) To organize and establish a nationwide job

clearance and information system to inform
applicants registering with a particular
employment office of job opportunities in other
parts of the country as well as job opportunities
abroad;
ARTICLE 14. EMPLOYMENT PROMOTION

(c) 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

(d) To require any person, establishment,

organization or institution to submit such
employment information as may be prescribed
by the Secretary of Labor.
EMPLOYMENT PROMOTION

- DOLE carries out programs for local and

overseas employment.

- Main offices concerned:

- Bureau of Local Employment / BLE –

effective allocation of manpower resources
in local employment

- Philippine Overseas Employment

Administration / POEA – allocation of
manpower resources for overseas
employment
ARTICLE 15. BUREAU OF EMPLOYMENT SERVICES

(a) The Bureau of Employment Services shall be primarily responsible

for developing and monitoring a comprehensive employment
program. It shall have the power and duty:

1. To formulate and develop plans and programs to implement

the employment promotion objectives of this Title;

2. To establish and maintain a registration and/or licensing

system to regulate private sector participation in the
recruitment and placement of workers, locally and overseas,
and to secure the best possible terms and conditions of
employment for Filipino contract workers and compliance
therewith under such rules and regulations as may be issued
by the Department of Labor and Employment;
ARTICLE 15. BUREAU OF EMPLOYMENT
SERVICES

3. To formulate and develop employment programs

designed to benefit disadvantaged groups and communities;

4. To establish and maintain a registration and/or work

permit system to regulate the employment of aliens;

5. To develop a labor market information system in aid of

proper manpower and development planning;

6. To develop a responsible vocational guidance and testing

system in aid of proper human resources allocation; and

7. To maintain a central registry of skills, except seamen.

LOCAL EMPLOYMENT
PD No. 850 (December 16, 1975)
- Creation of the Bureau of Employment
Services (BES)

EO No. 797 (May 1, 1982)

- Creation of the Bureau of Local
Employment (BLE) and Philippine Overseas
Employment Administration (POEA; later to
consolidate BES and OEDB)

Administrative Order No. 186 (Sept. 4, 1987)

- Creation of DOLE Regional Offices
Private Recruitment and Placement Agency
- An agency that recruits applicants for
local employment

- Secures a license from a DOLE regional office

- License is non-transferable to other persons or

entities but valid nationwide for two years and
renewable

- Prior to the approval of license, an applicant for

license to operate a private employment agency for
local employment shall post cash bond and surety
bond.
DIFFERENCE BETWEEN CASH BOND AND SURETY
BOND

CASH BOND
- A cash bond is when you post cash in order to fulfill your
obligations. The advantage to the principal of a cash bond is a lower
fee. Because reserves are essentially covered by the cash on hand,
there is no need for funds to be readily available. The disadvantage is
having to have the full bond amount in cash on hand.

SURETY BOND
- A surety bond is a three-party agreement between you (the principal),
the surety company that backs the bond, and the obligee/owner. The
surety company agrees to pay the obligee if you fail to meet your
obligations.

The benefit of a surety bond is that you don't need to have cash on
hand to cover the full value of the bond. You can purchase the bond
for a fee and only need to come up with the full amount if you fail to
meet your obligations.
PLACEMENT FEE
AND WHY IS IT REQUIRED

By law, recruitment agencies are allowed

to charge deployed OFWs placement
fees. This fee is required because
recruiting workers is such a risky business
that agencies must reserve a fund just
in case something happens to the
deployed worker. (shall not exceed 20%
of basic salary)
SERVICE CHARGE
CHARGEABLE TO EMPLOYER

A licensed private recruitment and

placement agency may charge the
employer service fee which shall not
exceed twenty percent (20%) of the
annual salary of the worker. In no case
shall the service fee be deducted from
the worker’s salary.
RA No 8759 AN ACT (Feb. 14, 2000)

INSTITUTIONALIZING A NATIONAL
FACILITATION SERVICE NETWORK
THROUGH THE ESTABLISHMENT OF A
PUBLIC EMPLOYMENT SERVICE
OFFICE IN EVERY PROVINCE, KEY CITY
AND OTHER STRATEGIC AREAS
THROUGHOUT THE COUNTRY

- Special Program for Employment of

Students (SPES) & Workers in
Infrastructure Projects (WHIP)
ARTICLE 16. PRIVATE RECRUITMENT

Except as provided in Chapter II of

this Title, no person or entity, other than
the public employment offices, shall
engage in the recruitment and placement
of workers.
AUTHORIZED ENTITIES

Article 25, exception – “the private employment sector

shall participate in the recruitment and placement of
workers, locally and overseas”

a. public employment offices

b. private recruitment entities
c. private employment agencies
d. shipping or manning agents or representatives
e. the POEA
f. construction contractors if authorized to operate by DOLE
and the Construction Industry Authority
g. members of the diplomatic corps although hirings done by
them have to be processed through the POEA
h. other persons or entities as may be authorized by the
DOLE secretary
ARTICLE 17. OVERSEAS EMPLOYMENT
DEVELOPMENT BOARD

An Overseas Employment Development Board is hereby

created to undertake, in cooperation with relevant entities and
agencies, a systematic program for overseas employment of
Filipino workers in excess of domestic needs and to protect their
rights to fair and equitable employment practices.
It shall have the power and duty:

1. To promote the overseas employment of Filipino workers through

a comprehensive market promotion and development program;
2. To secure the best possible terms and conditions of
employment of Filipino contract workers on a government-to-
government basis and to ensure compliance therewith;
3. To recruit and place workers for overseas employment on a
government-to-government arrangement and in such other sectors as
policy may dictate; and
4. To act as secretariat for the Board of Trustees of the Welfare and
Training Fund for Overseas Workers.
 OVERSEAS EMPLOYMENT, A BRIEF HISTORY

Hawaii’s severe
manpower shortage

200 initial Filipinos until they Overseas employment

formed 70% of Hawaii’s program grabbed the limelight
1900s plantation labor
From 3,694 workers in 1969 to
California in demand of apple 1970s almost half a million in 1983
and orange pickers
onwards
Response to Hong Kong,
Singapore, and Malaysia’s
manpower shortages

Post
WW institutionalized Filipino overseas
contract workers’ participation in
US defense and civilian projects
Waves of Filipino workers as
constructors and laborers in US Canada and Australia hired
military stations professional workers, mostly
medical workers
Asian nations opened labor markets for
construction and logging personnel
LEGISLATIVE BACKGROUND OF OVERSEAS EMPLOYMENT
ACT 2486
- First law passed by the
Philippine Legislature in 1915
on overseas employment
- Provided for license issuance
and license fee and welfare
regulations, such as prohibiting
minors (under 15 years) to work
abroad without parent’s written
consent, prohibiting recruitment
of non-Christians for exhibition
or display and provision of
transportation for returning
workers who are physically unfit
or have finished serving the
contract.
PD 442
- Paved the way for a stricter
government regulation of the
overseas employment industry
- Creation of Overseas
Employment Development
Board and the National
Seamen Board
PD 1412
- Revival of private sector
participation in the recruitment
and placement of Filipino
workers
LEGISLATIVE BACKGROUND OF OVERSEAS EMPLOYMENT
EO 797
- Passed in 1982 aimed at
streamlining operations in
the overseas employment
program
- Creation of Philippine Overseas
Employment Administration
RA 8042
- “Migrant Workers and Overseas
Filipinos Act of 1995 (approved
on June 7, 1995)
- Established higher standards of
protection of migrant workers,
their families, and of overseas
Filipinos in distress
EO 247
- Reorganization Act of POEA
passed in 1987 in response to
the government’s call for a
more efficient delivery of public
service
- Strengthening of the worker’s
protection and welfare and a
tighter regulation of the private
sector’s recruitment activities
RA 10022
- Lapsed into law on March 8,
2010 ; Further improves the
standard of protection and
promotion of welfare provided
under RA No. 8042
2022 SURVEY ON OVERSEAS FILIPINOS
2022 SURVEY ON OVERSEAS FILIPINOS
2022 SURVEY ON OVERSEAS FILIPINOS
2022 SURVEY ON OVERSEAS FILIPINOS
2022 SURVEY ON OVERSEAS FILIPINOS
2022 SURVEY ON OVERSEAS FILIPINOS
 GROUNDS FOR DISCIPLINARY ACTION

a. Commission of a felony punishable by Philippine laws or by

the laws of the host country;

b. Drug addiction or possession or trafficking of prohibited

drugs;

c. Desertion or abandonment;

d. Drunkenness, especially where the laws of the host country

prohibit intoxicating drinks;

e. Gambling, especially where the laws of the host country prohibit

the same;

f. Initiating or joining a strike or work stoppage where the laws

of the host country prohibit strikes or similar actions;

g. Creating trouble at the worksite or in the vessel;

 GROUNDS FOR DISCIPLINARY ACTION

h. Embezzlement of company funds or of moneys and properties of

a fellow worker entrusted for delivery to kins or relatives in the
Philippines;

i. Theft or robbery;
j. Prostitution;
k. Vandalism or destroying company property;
l. Gunrunning or possession of deadly weapons;
m. Unjust refusal to depart for the worksite after all employment
and travel documents have been duly approved by the appropriate
government agency/ies; and
n. Violation/s of the laws and sacred practices of the host
country
and unjustified breach of government-approved employment contract
by a worker.
 CASE IN POINT
Mckenzie, et al. vs. Cui, G.R. No. 48831, February 6, 1989 —

Facts: Aguedo, a licensed seaman, filed with the Regional Trial Court a
complaint for recovery of certain sums of money, with damages against
Kenneth and Kraamer as Administrative Manager and master of M.V. Carbay,
and its operator Wallem Philippines, pursuant to Article 2180 of the Civil Code.
He alleged that while M.V. Carbay was dry-docked in Japan, he was attacked
by his co-worker, an alleged protege of Kraamer; that without investigation,
Kraamer summarily dismissed him without paying his salary and thereafter
compelled him to return to Manila, incurring expenses in the amount of $320.
Defendants moved to dismiss for lack of jurisdiction and alleged that
the National Seamen’s Board (POEA now) has the exclusive jurisdiction over
cases in connection with the employment of Filipino seamen on board vessels
engaged in overseas trade.
The trial judge denied the motion.

RULING: The Supreme Court affirmed the order of the trial court, that is, the
court (not POEA) has jurisdiction over the case. Moreover, in his opposition to
the motion to dismiss, he cites Articles 2197, 2200, 2219 and adds the relevant
articles on Human Relations: Articles 19, 21, 24 and 32 of the Civil Code to
support his claim for damages. [This kind of case is not within POEA’s
jurisdiction].