RECRUITMENT AND LICENSING POLICIES
(Disclaimer: This is an abridged version only. Not to be used for official transactions.)

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.

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.

LICENSE means a document issued by the DOLE authorizing a person or entity to operate a private employment agency.

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.

AUTHORITY means a document issued by the DOLE authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity.

MIGRANT WORKERS OR OVERSEAS FILIPINO WORKERS- a person who is to be engaged, is engaged, or has been engaged in a remunerated activity in a site of which he or she is not a legal resident. A person "to be engaged in a remunerated activity" refers to an applicant worker who has been promised or assured employment overseas and acting on such promise or assurance sustains damage and/or injury

ENTITIES AUTHORIZED TO RECRUIT AND PLACE WORKERS FOR LOCAL OR OVERSEAS EMPLOYMENT

1. Public Employment Offices
2. Private Recruitment Entities
3. Private Employment Agencies
4. Authorized Shipping or Manning Agents or Representatives
5. The POEA
6. Construction Contractors/Job Contractors/Sub-Contractors authorized by DOLE
7. Members of the Diplomatic Corps Through the POEA\
8. Other persons or entities as may be authorized by the DOLE Secretary

LICENSING:

CITIZENSHIP REQUIREMENTS (Art. 27, PD 442)

Only Filipino citizens or corporations, partnerships or entities atleast 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.

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 of authority, nor may such license or authority be transferred, conveyes, or assigned to any persons or entity.
• Any transfer of business address, appointment or designation of any agency or representative including the establishment of additional offices anywhere shall be subject to the prior approval of the DOLE

VALIDITY OF LICENSE

1. Local: 2 yrs
2. Overseas: 4years

The license shall be valid only in the place/s stated therein and within the validity period.

FEES TO BE PAID BY THE WORKER/EMPLOYER

PROHIBITED PRACTICES (ART. 34 of PD 442)

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 mispresentation for the purpose of securing a license or authority under the Labor Code:
4. To induce or attempt to induce a worker already employed to quit his employment in order to offer him another unless the transfer is designed 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 representative;
8. To fail to submit 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 and Employment;
9. To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the department of Labor and Employment from the time of actual signing thereof by the parties up to and including the period of the expiration of the same without the approval of the Department of Labor Employment;
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 departure for monetary or financial considerations other than those authorized under the Labor Code and its implementing rules and regulations;

    SECTION 6 RA 8042

12. Failure to actually deploy without valid reasons as determined by the Department of Labor and Employment; and
13. Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for purposes of deployment, in case where the deployment does not actually take place without the worker's fault. Iilegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving economic sabotage.

Iilegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring or confederating with one another. It is deemed committed in large scale if committed against three (3) or more persons individually or as a group.

The persons criminally liable for the above offenses are the principals, accomplices and accessories. In case of juridical persons, the officers having control, management or direction of their business shall be liable.

SUPENSION AND/OR CANCELLATION OF LICENSE OR AUTHORITY

The Secretary of labor has the power to suspend or cancel any license or authority to recruit for violations of the rules and regulations. Schedule of penalties has been promulgated for the purpose.

ILLEGAL RECRUITMENT

Syndicated: If it is carried out by a group of three or more persons conspiring and/or confederating with one another.

Large Scale: It is committed against three or more persons individually or a group.

Under Sec 6 of RA 8042 provides that illegal recruitment can committed by any person, whether a non-licensee, holder, licensee or holder of authority.

PENALTIES

Disclaimer: this is an abridged version only. Not to be used for legal purposes.

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