Labor Law and Social Legislation

Review Notes

LABOR STANDARDS Section 20. The State

– refers to terms and conditions of recognizes the indispensable
employment that employers must role of the private sector,
comply with and to which employees encourages private enterprise
are entitled as a matter of legal right. and provides incentives to
 Minimum requirements needed investments.
prescribed by existing laws,
rules and regulations relating to
wages, hours of work, cost
of living allowance and other Article 3. Bill of Rights
monetary and welfare benefits,
including occupational, safety Section 1. No person shall be
and health standards. deprived of life, liberty and
property without due process of
LABOR RELATIONS law; nor shall any person be
 Covers the status, rights and denied the equal protection of
duties and the institutional laws.
mechanisms that govern the
individual and collective Section 4. No law shall be
interactions of employers, passed abridging the freedom
employees or their of speech, of expression, or of
representatives. the press, or the right of the
people peaceably to assemble
SOCIAL LEGISLATION and petition the government for
 Laws that provide particular redress of grievances.
kinds of protection or benefits
to society or segments thereof Section 8. The right of the
in furtherance of social justice. people, including those
employed in the public and
SOCIAL JUSTICE (Calalang vs. private sectors, to form unions,
Williams) associations, or societies for
 Humanization of laws and the purposes not contrary to law
equalization of social and shall not be abridged.
economic forces by the State so
that justice in its rational and Section 9. Private property
objectively secular conception shall not be taken for public use
may at least be approximated. without just compensation.
 Promotion of welfare of all the
people. Section 10. No law abridging
the obligation of contracts shall
Article 2. Declaration of be passed.
Principles and State
Policies. Section 16. All persons shall
have the right to a speedy
Section 4. The prime duty of disposition of their cases before
the government is to SERVE and all judicial, quasi-judicial or
PROTECT the people. The administrative bodies.
Government may call upon the
people to defend the State and Section 18, paragraph 2. No
in the fulfillment thereof, all involuntary servitude in any
citizens may be required, under form shall exist except as a
conditions provided by law, to punishment for a crime whereof
render personal, military or civil the party shall have been duly
service. convicted.

Section 10. the State shall Article 13. Social Justice and
promote social justice in all Human Rights.
phases of national
development. Section 2. The promotion of social
justice shall include the commitment
Section 18. The State affirms to create economic opportunities
labor as a primary social based on freedom of initiative and
economic force. It shall protect self-reliance.
the rights of workers and
promote their welfare. LABOR
Section 3. The State shall afford full
protection to labor, local and overseas,

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

organized and unorganized, and industrial participants, so as to

promote full employment and equality institute social justice.
of employment opportunities for all.  Lays down the fundamental
rights and correlative
It shall guarantee the rights of all obligations of employers and
workers to self-organization, collective employees to each other.
bargaining and negotiations, and Note: LABOR CODE IS NOT ONE
peaceful concerted activities, SIDED.
including the right to strike in Purpose: To protect a sector to
accordance with law. They shall be oppress another.
entitled to security of tenure, humane
conditions of work, and a living wage. ARTICLE 3. DECLARATION OF
They shall also participate in policy BASIC POLICY
and decision-making processes
affecting their rights and benefits as  Afford protection to labor.
may be provided by law.  Promote full employment.
 Ensure equal work
The State shall promote the principle opportunities regardless of
of shared responsibility between sex, race or creed.
workers and employers and the  Regulate the relations
preferential use of voluntary modes in between workers and
settling disputes, including employers.
conciliation, and shall enforce their  Assure worker’s rights to
mutual compliance therewith to foster self-organization, collective
industrial peace. bargaining, security of
tenure, and just and humane
The State shall regulate the relations conditions of work.
between workers and employers,
recognizing the right of labor to its just ARTICLE 4. CONSTRUCTION IN
share in the fruits of production and FAVOR OF LABOR
the right of enterprises to reasonable
returns to investments, and to All doubts in the
expansion and growth. implementation and
interpretation of the provisions
Section 13. The State shall establish of this Code, including its
a special agency for disabled person implementing rules and
for their rehabilitation, self- regulations, shall be resolved in
development, and self-reliance, and favor of labor.
their integration into the mainstream
of society.  The working man’s welfare
should be the primordial and
WOMEN paramount consideration.
Section 14. The State shall protect  Liberal approach favors the
working women by providing safe and exercise of labor’s rights.
healthful working conditions, taking
into account their maternal functions, Reasons for According Greater
and such facilities and opportunities Protection to Employees
that will enhance their welfare and 1. Greater supply than demand
enable them to realize their full for labor.
potential in the service of the nation. 2. The need for employment by
labor comes from vital, and
even desperate necessity.
ARTICLE 1.
“Labor Code of the Constitutional Basic Rights of
Philippines” Workers
Blas E. Ople – father of the 1. To organize themselves.
Labor Code. 2. To conduct collective
bargaining.
ARTICLE 2. Date of 3. To engage in peaceful
Effectivity concerted activities.
November 1, 1974 4. To enjoy security of tenure.
5. To work under humane
LABOR CODE conditions.
 Set of SUBSTANTIVE and 6. To receive a living wage
PROCEDURAL laws that 7. To participate in policy and
prescribe the principal rights decision-making processes
and responsibilities of the affecting their rights and

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

benefits as may be provided All rights and benefits granted to

by law. workers under this Code shall except
as may otherwise be provided herein,
Management Rights apply alike to ALL workers
1. Right to Return of whether agricultural or non-
Investment – the employer agricultural.
has the right to return of Labor Code applies to a government
investments and to make corporation incorporated under
profit. the Corporation Code.
2. Right to Prescribed Rules
– employers have the right Note: GOCC’s created by Congress –
to make reasonable rules under Civil Service Rules
and regulations for the
government of their The Labor Code applies with or
employees and when without employment relationship
employees with knowledge between the disputants, depending on
of an established rule, enter the kind of issue involved.
the service, the rule
becomes a part of the Art. 7 – 11 (separate topic)
contract of employment.
3. Right to Select PRE-EMPLOYMENT
Employees – employer has ART. 12. STATEMENT OF
the right to select his OBJECTIVES
employees and to decide
when to engage them. It is the policy of the State:
4. Right to Transfer or (a) To promote and maintain a
Discharge Employees – an state of full employment through
employer has the perfect improved manpower training,
right to transfer, reduce or allocation and utilization;
lay off personnel in order to (b) To protect every citizen
minimize expenses and to desiring to work locally or
insure the stability of the overseas by securing for him the
business, and even to close best possible terms and condition
the business. of employment;
(c) To facilitate a free choice of
Note: MANAGEMENT RIGHTS ARE available employment by persons
SUBJECT TO LIMITATIONS PROVIDED seeking work in conformity with the
BY LAW, CONTRACT AND GENERAL national interest;
PRINCIPLES OF FAIR PLAY AND (d) To facilitate and regulate the
JUSTICE. movement of workers in conformity
with the national interest;
Management Prerogative (e) To regulate the employment of
– except as limited by special aliens, including the establishment of
laws, an employer is free to a registration and/o r work permit
regulate, according to his own system;
discretion and judgment, all aspects of (f) To strengthen the network of
employment, including hiring, work public employment offices and
assignments, working methods, time, rationalize the participation of the
place and manner of work, tools to be private sector in the recruitment
used, processes to be followed, and placement of workers, locally
supervision or workers, working and overseas, to serve national
regulations, transfer of employees, development objectives;
work supervision, lay off of workers (g) To insure careful selection of
and the discipline, dismissal and recall Filipino workers for overseas
of workers. employment in order to protect
the good name of the Philippines
ARTICLE 5. RULES AND abroad.
REGULATIONS
TITLE I
DOLE – make rules and regulations to RECRUITMENT AND PLACEMENT
implement the Code and shall become OF WORKERS
effective 15 days after announcement
of their adoption in newspapers of ART. 13. DEFINITIONS
general circulation.
(a) "Worker" means any member
ARTICLE 6. APPLICABILITY of the labor force , whether
employed or unemployed.

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

(b) Recruitment and placement" the Department of Labor as the need

refers to any act of canvassing, arises;
enlisting, contracting,
transporting, utilizing, hiring or (b) To organize and establish a
procuring workers, and includes nationwide job clearance and
referrals, contract services, information system to inform
promising or advertising for applicants registering with a particular
employment, locally or abroad, employment office of job opportunities
whether for profit or not: in other parts of the country as well as
Provided, That any person or job opportunities abroad;
entity which, in any manner,
offers or promises for a fee (c) To develop and organize a
employment to two or more program that will facilitate
persons shall be deemed occupational, industrial and
engaged in recruitment and geographical mobility of labor and
placement. provide assistance in the
(c) "Private fee-charging relocation of workers from one
employment agency" means area to another; and
any person or entity engaged in
the recruitment and placement (d) To require any person,
of workers for a fee which is establishment, organization or
charged, directly or indirectly, institution to submit such
from the workers or employers employment information as may be
or both prescribed by the Secretary of Labor.
(d) "License" means a document
issued by the Department of THE DOLE: ITS RESPONSIBILITY
Labor authorizing a person or
entity to operate a private  The primary policy-making
employment agency programming, coordinating and
(e) "Private recruitment entity" administrative entity of the
means any person or Executive Branch of the
association engaged in the government in the filed of labor
recruitment and placement of and employment.
workers, locally or overseas,
without charging, directly or The Admin Code mandates DOLE to
indirectly, any fee from the assume “primary responsibility”
workers or employers. for:
(f) "Authority" means a document
issued by the Department of a. The promotion of gainful
Labor authorizing a person or employment opportunities
association to engage in and the optimization of the
recruitment and placement development and utilization of
activities as a private the country’s manpower
recruitment entity. resources;
(g) "Seaman" means any person b. The advancement of
employed in a vessel engaged worker’s welfare by providing
in maritime navigation. for just and humane working
(h) “Overseas employment" conditions and terms of
means employment of a worker employment;
outside the Philippines. c. The maintenance of
(i) "Emigrant" means any person, industrial peace by promoting
worker or otherwise, who harmonious, equitable and
emigrates to a foreign country stable employment relations
by virtue of an immigrant visa that assure protection for the
or resident permit or its rights of all concerned parties.
equivalent in the country of
destination.

ART. 14. EMPLOYMENT

PROMOTION ART. 15. BUREAU OF
EMPLOYMENT SERVICES
The Secretary of Labor shall have the (a) The Bureau of Employment
power and authority: Services shall be primarily
responsible for developing and
(a) To organize and establish new monitoring a comprehensive
employment offices in addition to employment program. It shall
the existing employment offices under have the power and duty:

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

1. To formulate and g. other persons or entities as

develop plans and programs to may be authorized by the DOLE
implement the employment secretary
promotion objectives of this
Title;
2. To establish and ART. 17. OVERSEAS EMPLOYMENT
maintain a registration and/o r DEVELOPMENT BOARD
licensing system to regulate
private sector participation in An Overseas Employment
the recruitment and placement Development Board is hereby created
of workers, locally and to undertake, in cooperation with
overseas, and to secure the relevant entities and agencies, a
best possible terms and systematic program for overseas
conditions of employment for employment of Filipino workers in
Filipino contract workers and excess of domestic needs and to
compliance therewith under protect their rights to fair and
such rules and regulations as equitable employment practices. It
may be issued by the shall have the power and duty:
Department of Labor and 1. To promote the overseas
Employment; employment of Filipino workers
3. To formulate and through a comprehensive market
develop employment programs promotion and development program;
designed to benefit 2. To secure the best
disadvantaged groups and possible terms and conditions of
communities; employment of Filipino contract
4. To establish and workers on a government-to-
maintain a registration and/o r government basis and to ensure
work permit system to regulate compliance therewith;
the employment of aliens; 3. To recruit and place
5. To develop a labor workers for overseas employment
market information system in on a government-to-government
aid of proper manpower and arrangement and in such other sectors
development planning; as policy may dictate; and
6. To develop a 4. To act as secretariat for
responsible vocational guidance the Board of Trustees of the Welfare
and testing system in aid of and Training Fund for Overseas
proper human resources Workers
allocation; and
7. To maintain a central Notes:
registry of skills, except a. Act No. 2486 – first law passed
seamen. by the Philippine Legislature in
1915 related to overseas
ART. 16 PRIVATE employment.
RECRUITMENT  This law provided for license
issuance and license fee and
No person or entity, other than welfare regulations such as
the public employment prohibiting minors (under 15
offices, shall engage in the years) to work abroad without
recruitment and placement of the parent’s consent etc.
workers. b. P.D. No. 442 (Labor Code) –
paved the way for a stricter
a. public employment offices government regulation of the
(PESO) overseas employment industry.
b. private employment agencies c. P.D. No. 1412 – to cope with the
c. shipping or manning agents great demand for workers in the
or representatives Middle East, the government
d. the POEA had to revive private sector
e. construction contractors if participation in the recruitment
authorized to operate by DOLE and placement of Filipino
and the Construction Industry Workers.
Authority d. E.O No. 797 – aimed at
f- members of the diplomatic streamlining operations in the
corps although hirings done by overseas employment program.
them have to be processed e. E.0. no. 247 – “Reorganization
through the POEA Act of POEA”

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

 Responses to the government’s (e) Free access to the courts

call for a more efficient delivery and quasi-judicial bodies and
of public service. adequate legal assistance
 One of the more important shall NOT be denied to any
provisions of this Order is the person by reason of poverty.
strengthening of the worker’s The rights and interest of
protection and welfare and a distressed overseas Filipinos, in
tighter regulation of the private general, and Filipino migrant
sector’s recruitment activities. workers, in particular. Whether
f. RA 8042 – “Migrant Workers regular/documented or
and Overseas Filipino Act of irregular/undocumented, shall
1995” be adequately protected and
 This law institutes the policies safeguarded.
on overseas employment and (f) Filipino migrant workers and
establishes a higher standard of all overseas Filipinos have
protection and promotion of the the right to participate in
welfare of migrant workers, the democratic decision –
their families and overseas making processes of the
Filipinos in distress. State and to be represented in
g. RA 10022 – improves the the institutions relevant to
standard of protection and overseas employment.
promotion of welfare. (g) The State recognizes that the
most effective tool for
Policies on Migrant Workers empowerment is the
possession of skills by
(a) The State shall, at all times, migrant workers. The
uphold the dignity of its government shall provide them
citizens, whether in country or free and accessible skills
overseas, in general, and development and enhancement
Filipino migrant workers, in programs. The government shall
particular and endeavor to deploy and/or allow the
enter into a bilateral deployment only of skilled
agreements with countries Filipino workers.
hosting OFW. (h) The State recognizes [that] non-
(b) The State afford full governmental organizations,
protection to labor, local and trade unions, workers
overseas, organized and associations, recruitment and
unorganized and promoted manning agencies and similar
full employment and equality entities duly recognized as
of employment opportunities for legitimate, are partners of the
all. State in the protection of Filipino
(c) While recognizing the significant migrant workers and in the
contributions of Filipino migrant promotion of their welfare.
workers to the national (i) Government fees and other
economy through their foreign administrative costs of
exchange remittances, the recruitment, introduction,
State does not permit placement and assistance to
overseas employment as a migrant workers shall be
means to sustain economic rendered free without prejudice
growth and achieve national to the provision of Section 36 of
development. The Sata, RA 8042.
therefore, shall continuously
create local employment THE POEA; OVERVIEW OF ITS
opportunities and promote the FUNCTIONS AND POWERS
equitable distribution of wealth To strengthen its handling of
and the benefits of Filipinos; employment abroad.
development. The principal function –
(d) The State affirms the formulation, implementation
fundamental equality before and monitoring of policies and
the law of women and men programs on overseas
and the significant role of employment of Filipino workers.
women in nation-building. Protector of overseas workers’s
The State shall apply gender- rights fair and equitable
sensitive criteria in the employment practices.
formulation and implementation
of policies and programs. Realignment of Jurisdiction
POEA —> NLRC

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

NLRC – money claims arising corps, international

from pretermination of the organizations and such other
employment contract without employers as may be allowed
valid cause. by the Department of Labor and
Employment is exempted from
Jurisdiction Retain with POEA this provision.
Original and exclusive
jurisdiction of POEA Note:
1. All cases which are  Direct hiring of Filipino workers
administrative in character, by a foreign employer is NOT
involving or arising out of allowed except direct hiring by
violations of rules and members of the diplomatic
regulations relating to corps.
licensing and registration of  Also excepted are “name
recruitment and employment hirees” or those individual
agencies or entities, and; workers who are able to secure
2. Disciplinary action cases and contracts for overseas
other special cases which employment on their own
are administrative in efforts and representation
character, involving without the assistance or
employers, principals, participation of any agency.
contracting partners and
Filipino migrant workers. Name hires should register with
the POEA by submitting the
Grounds for Disciplinary Action following documents:
1. Submission of false (a) Employment contract;
information or documents. (b) Valid passport;
2. Unjustified refusal to (c) Employment visa or work
continue his/her application permit,
after signing an employment (d) Certificate of medical
contract. fitness; and
3. Commission of a felon (e) Certificate of attendance to
punishable by Philippine the required employment
Laws or by the laws of the orientation/briefing.
host country
4. Possession or use of ART. 19. OFFICE OF EMIGRANT
prohibited frugs AFFAIRS
5. Embezzlement of company
funds or of moneys and (a) Pursuant to the national policy to
properties of a fellow worker maintain close ties with Filipino
entrusted for delivery to migrant communities and promote
kinds or relatives in the their welfare as well as establish a
Philippines data bank in aid of national manpower
6. Unjust refusal to depart for policy formulation, an Office of
the worksite after all Emigrant Affairs is hereby created in
employment and travel the Department of Labor. The Office
documents have been duly shall be a unit at the Office of the
approved by the appropriate Secretary and shall initially be
agency manned, and operated by such
7. Violation/s of the laws and personnel and through such funding as
cultural practices of the host are available within the Department
country. and its attached agencies. Thereafter,
its appropriation shall be made part of
To whom appealable? the regular General Appropriations
Secretary of Labor. Decree.
(b) The office shall, among others,
promote the well-being of emigrants
ART. 18. BAN ON DIRECT HIRING and maintain their close link to the
(for overseas employment) homeland by:
1) serving as a liaison with
No employer may hire a migrant communities;
Filipino worker for overseas 2) providing welfare and cultural
employment except through the services;
Boards and entities authorized 3) promoting and facilitating re-
by the Department of Labor and integration of migrants into the
Employment. Direct-hiring by national mainstream;
members of the diplomatic

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

4) promoting economic, political c. Basic monthly salary

and cultural ties with the communities; including benefits and
and allowances and mode of
5) undertaking such activities as payment. The salary shall
may be appropriate to enhance such not be lower than the
cooperative links. prescribed minimum wage in
the host country or
ART. 20. NATIONAL SEAMEN prevailing minimum wage in
BOARD the NCR of the Philippines
whichever is higher.
(a) A National Seamen Board is hereby d. Food and accommodation or
created which shall develop and the monetary equivalent
maintain a comprehensive program for which shall be
Filipino seamen employed overseas. It commensurate to the cost of
shall have the power and duty: living in the host country or
1. To provide free placement off-setting benefits.
services for seamen; e. Commencement and
2. To regulate and supervise the duration of contract
activities of agents or representatives f. Free transportation from and
of shipping companies in the hiring of back to the point of hire, or
seamen for overseas employment; off-setting benefits, and free
and secure the best possible terms of inland transportation at the
employment for contract seamen jobsite or off-setting
workers and secure compliance benefits.
therewith; g. Regular work hours and day-
3. To maintain a complete off.
registry of all Filipino seamen. h. Overtime pay for services
(b) The Board shall have original and rendered and beyond the
exclusive jurisdiction over all matters regular working hours, rest
or cases including money claims, days and holidays.
involving employer-employee i. Vacation leave and sick
relations, arising out of or by virtue of leave for every year of
any law or contracts involving Filipino service
seamen for overseas employment. The j. Free emergency medical and
decision of the Board shall be dental treatment
appealable to the National Labor k. Just/valid/authorized cause
Relations Commission upon the same for termination of contract or
grounds provided in Article 223 hereof. of the services of the
The decisions of the National Labor workers, taking into
Relations Commission shall be final consideration the customs,
and unappealable. traditions, norms, mores,
practices, company policies
Notes: and the labor laws and social
NSB now POEA legislations of the host
EO 797 abolished the NSB. country
l. Settlement of disputes
Minimum Provisions of POEA – SEC m. Repatriation of worker in
Every employment contract case of imminent danger
between a Filipino seafarer and due to war, calamity and
his employer is governed not other analogous
only by their mutual circumstances ay the
agreements but also by the expense of the employer;
provisions of the POE-SEC which and
contain the Standard Terms and n. In case of worker’s
Conditions Governing the death/repatriation of OFW
Employment of Filipino human remains and personal
Seafarers On-Board Ocean- belongings, at the expense
Going Vessels. of the employer.

Minimum provisions in Permanent and Total Disability

employment contracts for The degree of disability is the
OFW’s. basis of the amount of
a. Complete name and address disability compensation.
of the employer/company.
b. Position and jobsite of the Employment Termination of
OFW. Overseas Seafarer
DO No. 4 and MC No. 9 s. 2000

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

Sec. 2. Commencement/Duration of (a) To provide all Filipino workers

Contract within their jurisdiction assistance on
A. The employment contract all matters arising out of employment;
between the employer and the (b) To insure that Filipino workers are
seafarer shall commence upon not exploited or discriminated against;
actual departure of the seafarer (c) To verify and certify as requisite to
from the airport or seaport in authentication that the terms and
the point of hire and with the conditions of employment in contracts
POEA approved contract. It shall involving Filipino workers are in
be effective until the seafarer’s accordance with the Labor Code and
date of arrival at the point of rules and regulations of the Overseas
hire upon termination of his Employment Development Board and
employment pursuant to Sec. National Seamen Board;
18 of this Contract. (d) To make continuing studies or
B. The period of employment shall researches and recommendations on
be for a period mutually agreed the various aspects of the
upon by the seafarer and the employment market within their
employer but not to exceed 12 jurisdiction;
months. Any extension of the (e) To gather and analyze information
contract shall be subject to on the employment situation and its
mutual consent of both parties. probable trends, and to make such
information available to the
xxx Department of Labor and Employment
A. The employment of the seafarer and the Department of Foreign Affairs;
shall cease when the seafarer and
completes his period of (f) To perform such other duties as
contractual service abroad the may be required of them from time to
vessel, sign-off from the vessel time.
and arrives at the point of hire.
B. The employment of the seafarer Protection and Assistance by
is also terminated when the Government Agencies
seafarer arrives at the point of a. Department of Foreign
hire for any of the following Affairs. —The Department,
reasons: through its home office or
1. When the seafarer foreign posts, shall take
signs off and is priority action or make
disembarked for representation with the
medical reasons foreign authority concerned
pursuant ti Section 20 to protect the rights of
(b)(5) of this contract. migrant workers and other
overseas Filipinos and extend
immediate assistance including
Three requirements for the the repatriation of distressed or
complete termination of the beleaguered migrant workers
employment contract and other overseas Filipinos.
1. Termination due to Furthermore, R.A. No. 8042
expiration or other created the position of Legal
reasons/causes Assistant for Migrant Worker's
2. Signing off form the vessel Affairs [LAMWA] under the
3. Arrival at the point of hire. Department of Foreign Affairs.
Its primary responsibility is
to provide and coordinate
ART. 21. FOREIGN SERVICE ROLE all legal assistance services
AND PARTICIPATION to Filipinos in distress. It also
administers the Legal
To provide ample protection to Assistance Fund for Migrant
Filipino workers abroad, the Workers.
labor attaches the labor
reporting officers duly b. Department of Labor and
designated by the Secretary of Employment. — The
Labor and the Philippine Department of Labor and
diplomatic or consular officials Employment shall see to it that
concerned shall, even without labor and social welfare
prior instruction or advice from laws in the foreign countries
the home office, exercise the are fairly applied to migrant
power and duty: workers and whenever

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

applicable, to other overseas ART. 22 MANDATORY REMITTANCE OF

Filipinos including the grant of FOREIGN EXCHANGE EARNINGS
legal assistance and referral to
proper medical centers or It shall be mandatory for all Filipino
hospitals. workers abroad to remit a portion of
their foreign exchange earnings to their
c. Philippine Overseas families, dependents, and/ or
Employment Administration. beneficiaries in the country in
— The POEA shall regulate accordance with rules and regulations
private sector participation prescribed by the Secretary of Labor and
in the recruitment and Employment.
overseas placement of
workers by setting up a Remittance
licensing and registration - EO No. 857 prescribes the percentages
system. It shall also formulate of foreign exchange remittance ranging
and implement, in coordination from 50% to 80% of the basic salary
with appropriate entities depending on the worker’s kind of job.
concerned, when necessary, a -
system for promoting and
monitoring the overseas ART. 23. COMPOSITION OF THE
employment of Filipino workers BOARDS
taking into consideration their
welfare and the domestic a. The Overseas Employment
manpower requirements. Development Board shall be
composed of the Secretary of Labor as
d. Overseas Welfare Chairman, the Undersecretary of Labor
Administration – develops and as Vice-Chairman, and a
implements welfare programs representative each of the
and services to OFWs and their Department of Foreign Affairs, the
families. Department of National Defense, the
Reintegration of returning Central Bank, the Department of
OFWs Education and Culture, the National
Manpower and Youth Council, the
Repatriation Bureau of Employment Services, a
 Off the Remains workers' organization and an
- The repatriation of employers organization, and the
remains and transport of Executive Director of the OEDB as
personal belongings of a members.
deceased worker and all
costs attendant thereto (b) The National Seamen Board
shall be borne by the shall be composed of the Secretary of
principal and/or the local Labor as Chairman, the
agency. Undersecretary of Labor as Vice-
Worker at Fault Chairman, the Commandant of the
- The principal/employer or Philippine Coast Guard, and a
agency shall not in any representative each of the
manner be responsible Department of Education and Culture,
for the repatriation of the the Central Bank, the Maritime
former and/or his Industry Authority, the Bureau of
belongings. Employment Services, a national
In Case of Disasters shipping association and the Executive
- the OWWA shall Director of the NSB as members.
undertake the
repatriation of workers in The members of the Boards shall
case of war, epidemic, receive allowances to be determined
disasters or calamities, by the Boards which shall not be more
natural or man-made and than P2,000 per month.
other similar events
without prejudice to (c) The Boards shall be attached to
reimbursement by the the Department of Labor for policy and
responsible principal or program coordination. They shall each
agency. be assisted by a Secretariat headed by
an Executive Director who shall be a
Note: mandatory repatriation for Filipino citizen with sufficient
underage. experience in manpower
administration, including overseas
employment activities. The Executive

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

Director shall be appointed by the sector shall participate in the

President of the Philippines upon the recruitment and placement of
recommendation of the Secretary of workers, locally and overseas,
Labor and shall receive an annual under such guidelines, rules and
salary as fixed by law. The Secretary of regulations as may be issued by
Labor shall appoint the other members the Secretary of Labor.
of the Secretariat.
ART. 26. TRAVEL AGENCIES
(d) The Auditor General shall appoint PROHIBITED TO RECRUIT
his representative to the Boards to
audit their respective accounts in Travel agencies and sales agencies of
accordance with auditing laws and airline companies are prohibited
pertinent rules and regulations. from engaging in the business of
recruitment and placement of
workers for overseas employment
ART. 24. BOARDS TO ISSUE RULES whether for profit or not.
AND COLLECT FEES
ART. 27. CITIZENSHIP
The Boards shall issue appropriate REQUIREMENT
rules and regulations to carry out
their functions. They shall have the Only Filipino citizens or corporations,
power to impose and collect fees partnerships or entities at least
from employers concerned, which seventy-five percent (75%) of the
shall be deposited in the respective authorized and voting capital stock of
accounts. which is owned and controlled by
Filipino citizens shall be permitted to
Chapter II. participate in the recruitment and
REGULATIONS OF RECRUITMENT placement of workers, locally or
AND PLACEMENT ACTIVITIES overseas.
(REQUISITES AND CONDITIONS OF
LICENSE)

D.O. No. 141-14 (November 20, ART. 28. CAPITALIZATION

2014) – comprises the revised rules
and regulations governing recruitment All applicants for authority to hire or
and placement for local employment. renewal of License to recruit are
required to have such substantial
The rules DISQUALIFY from engaging capitalization as determined by the
in the business of recruitment and Secretary of Labor.
placement for domestic employment
the following: Notes:
a. Persons convicted of illegal Private employment agency for
recruitment, trafficking in LOCAL employment
persons, violation of child labor a. minimum net worth of P1,
laws or crimes involving moral 000, 000 in the case of
turpitude. single proprietorship and
b. Agencies whose licenses have partnership or
previously been cancelled or b. a minimum paid up capital of
revoked. P1, 000, 000 in the case of
c. Cooperative whether registered corporation.
or not under the Cooperative Act Private recruitment or manning
of the Philippines agency for overseas employment
d. Law enforcers and any official or a. Minimum cspitalization of P5,
employee of DOLE. 000, 000 for single
proprietorship or partnership
ART. 25, PRIVATE SECTOR b. a minimum paid up capital of
PARTICIPATION IN THE P5, 000, 000 in the case of
RECRUITMENT AND PLACEMENT corporation.
OF WORKERS
Disqualifications
Pursuant to national development
objectives and in order to harness The following are NOT QUALIFIED to
and maximize the use of private engage in the business of recruitment
sector resources and initiative in the and placement for LOCAL
development and implementation of employment:
a comprehensive employment
program, the private employment

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

a. those who are convicted of coverage for agency-hired

illegal recruitment, trafficking OFWs.
in persons, anti child labor e. Sole proprietors, partners or
violation or crimes involving officers and members of the
moral turpitude. board with derogatory records
b. Those against whom probable such as, but not limited to the
cause or prima facie finding of following:
guilt for illegal recruitment or 1. Those convicted or against
other related cases exist whom probable cause or
particularly to owners or prima facie finding of guilt is
directors of agencies who determined by a competent
have committed illegal authority, for illegal
recruitment or other related recruitment, or for other
cases. related crimes or offenses
c. Those agencies whose committed in the course of,
licenses have been previously related to, or resulting from
revoked or cancelled by the illegal recruitments or for
Department under Sec. 54 of crimes involving moral
these rules. turpitude.
d. Cooperatives whether 2. Those agencies whose
registered or not under the licenses have been revoked
Cooperative Act of the for violation of RA 8042 and
Philippines. RA 9208 and their IRR.
e. Law enforcers and any official 3. Those agencies whose
and employee of DOLE. licenses have been cancelled
f. Sole proprietors of duly or those who pursuant to the
licensed agencies are order of the administrator
prohibited from securing were included in the list of
another license to engage in persons with derogatory
recruitment and placement. record for violation of
g. Sole proprietors, partnerships recruitment laws and
or corporations licensed to regulations; and
engage in private recruitment f. Anny official of employee of the
and placement for local DOLE, POEA, OWWA, DFA, DOJ,
employment are prohibited DOH, BI, IC, NLRC, TESDA, CFO,
from engaging in job NBI, PNP, CAAP, international
contracting or sub-contracting airport authorities and other
activities. government agencies directly
involved in the implementation
of RA 8042, as amended, or
The following persons and entities are his/her relatives within the
DISQUALIFIED from participating or fourth civil degree oof
engaging in the recruitment and consanguinity or affinity.
placement of workers for OVERSEAS
EMPLOYMENT: Validity of License
a. To recruit for Local Employment
a. Travel agencies and sales - Valid for a period of three
agencies of airline companies. years from the date of
b. Officers or members of the issuance unless sooner
Board of any corporation or revoked or cancelled.
partners in a partnership - An application for
engaged in the business of renewal of license must
travel agency. be filed not earlier than
c. Corporation and partnerships, 60 days but not later
where any of its officers, than 30 days before its
members of the board or expiration,
partners is also an officer, b. To Recruit for Overseas
member of the board or partner Employment
of a corporation or partnership - Provisional license valid
engaged in the business of for two years.
travel agency.
d. Individuals, partners, officers or
directors of an insurance ART. 29. NONTRANSFERABILITY OF
company who make, propose or UCENSE OR AUTHORITY
provide an insurance contract No license or authority shall be
under the compulsory insurance used directly or indirectly by any
person other than the one in whose

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

favor it was issued or at any place a. Service fee

other than that stated in the b. Transportation expenses
license or authority, nor may such
license or authority be transferred, ART. 33. REPORTS ON
conveyed or assigned to any other EMPLOYMENT STATUS
person or entity. Any transfer of
business address, appointment or Whenever the public interest requires,
designation of any agent or the Secretary of Labor may direct all
representative including the persons or entities within the coverage
establishment of additional offices of this Title to submit a report on the
anywhere shall be subject to the status of employment, including job
prior approval of the Department of vacancies, details of job requisitions,
Labor. separation from jobs, wages, other
terms and conditions, and other
Notes: employment data.
Undertaking of recruitment and
placement activity only at ART. 34. PROHIBITED PRACTICES
authorized official addresses.
Allowed to conduct provincial It shall be unlawful for any individual,
recruitment or job fairs only upon entity, licensee, or holder of authority:
written authority from the POEA. (a) To charge or accept, directly
Copy of the authority shall be or indirectly, any amount greater than
presented to the DOLE/RD that specified in the schedule of
concerned. allowable fees prescribed by the
Secretary of Labor, or to make a
ART. 30. REGISTRATION FEES worker pay any amount greater than
that actually received by him as a loan
The Secretary of Labor shall or advance;
promulgate schedule of fees for the (b) To furnish or publish any
registration of all applicants for false notice or information or
license or authority. document in relation to recruitment or
employment;
ART. 31. BONDS (c) To give any false notice,
testimony, information or document or
All applicants for license or commit any act of misrepresentation
authority shall post such cash and for the purpose of securing a license
surety bonds as determined by the or authority under this Code;
Secretary of Labor to guarantee (d) To induce or to attempt to
compliance with prescribed induce a worker already employed to
recruitment procedures, rules and quit his employment in order to offer
regulations, and terms and him to another unless the transfer is
conditions of employment as may designed to liberate the worker from
be appropriate. oppressive terms and conditions of
employment;
ART. 32. FEES TO BE PAID BY (e) To influence or to attempt to
WORKERS influence any person or entity not to
employ any worker who has not
Any person applying with a private applied for employment through his
fee-charging employment agency agency;
for employment assistance shall (f) To engage in the recruitment
not be charged any fee until he has or placement of workers in jobs
obtained employment through its harmful to public health or morality or
efforts or has actually commenced to the dignity of the Republic of the
employment. Such fee shall be Philippines;
always covered with the (g) To obstruct or attempt to
appropriate receipt clearly showing obstruct inspection by the Secretary of
the amount paid. The Secretary of Labor or by his duly authorized
Labor shall promulgate a schedule representatives;
of allowable fees. (h) To fail to file reports on the
Chargeable Fees and Replacement status of employment, placement,
in Local Employment (BLE Rules) vacancies, remittances of foreign
exchange earnings, separation from
No fees whatsoever shall be collected jobs, departures and such other
or deducted from the salaries or matters or information as may be
wages of the workers. But an agency required by the Secretary of Labor;
may charge the employee the (i) To substitute or alter
following: employment contracts approved and

Angelica B. Fernandez
Juris Doctor 2
Labor Law and Social Legislation
Review Notes

verified by the Department of Labor (ILLEAGL RECRUITMENT AND

from the time of actual signing thereof PROHIBITED ACTIVITIES)
by the parties up to and including the
periods of expiration of the same ART. 36 REGULATORY POWER
without the approval of the Secretary
of Labor; The Secrerary of Labor shall have the
(j) To become an officer or power to restrict and regulate the
member of the Board of any recruitment and placement
corporation engaged in travel agency activities of all agencies within the
or to be engaged directly or indirectly coverage of this Title and is hereby
in the management of a travel agency; authorized to issue orders and
and promulgate rules and regulations
(K) To withhold or deny travel to carry out the objectives and
documents from applicant workers implement the provisions of this Title.
before departure for monetary or
financial considerations other than ART. 37. VISITORIAL POWER
those authorized under this Code and
its implementing rules and The Secretary of Labor or his duly
regulations. authorized representatives may, at any
time, inspect the premises, books of
ART. 35. SUSPENSION AND/OR accounts and records of any person
CANCELLATION OF LICENSE OR or entity covered by this Title, require
AUTHORITY it to submit reports regularly on
prescribed forms, and act on
The Minister of Labor shall have the violations of any provisions of this
power to suspend or cancel any Title.
license or authority to recruit
employees for overseas employment ART. 38. ILLEGAL RECRUITMENT
for violation of rules and regulations
issued by the Ministry of Labor, the (a) Any recruitment activities,
Overseas Employment Development including the prohibited practices
Board, and the National Seamen enumerated under Article 34 of this
Board, or for violation of the provisions Code, to be undertaken by non-
of this and other applicable laws, licensees or non-holders of authority
General Orders and Letters of shall be deemed illegal and punishable
Instructions. under Article 39 of this Code. The
Department of Labor and Employment
The grounds for imposition of or any law enforcement officer may
administrative sanctions include initiate complaints under this Article.
a. engaging in act/s of (b) Illegal recruitment when
misrepresentation for the committed by a syndicate or in large
purpose of securing a license or scale shall be considered an offense
renewal thereof, such as giving involving economic sabotage and shall
false testimonies or falsified be penalized in accordance with Article
documents 39 hereof. Illegal recruitment is deemed
b. engaging in the recruitment or committed by a syndicate if carried out
placement of workers in jobs by a group of three (3) or more persons
harmful to public health or conspiring and/or confederating with
morality or to the dignity of the one another in carrying out any unlawful
Republic of the Philippines; or illegal transaction, enterprise or
c. charging of any fee before scheme defined under the first
employment is obtained for an paragraph hereof. Illegal recruitment is
applicant worker; deemed committed in large scale if
d. charging of any fee in amount committed against three (3) or more
exceeding the allowable rate; persons individually or as a group.
and (c) The Secretary of Labor and
e. obstructing inspections by Employment or his duly authorized
DOLE. representatives shall have the power to
cause the arrest and detention of such
DOLE Secretary and POEA non-licensee or non-holder of authority
Administrator if after investigation it is determined
- have concurrent jurisdiction to that his activities constitute a danger to
suspend or cancel a license. national security and public order or will
lead to further exploitation of job-
seekers. The Minister shall order the
CHAPTER III. search of the office or premises and
MISCELLANEOUS PROVISIONS seizure of documents, paraphernalia,

Angelica B. Fernandez
Juris Doctor 2
 Labor Law and Social Legislation
Review Notes

properties and other implements used Deceit and misrepresentation =

in illegal recruitment activities and the essential element of illegal
closure of companies, establishments recruitment.
and entities found to be engaged in the The number of persons dealt with is
recruitment of workers for overseas NOT an essential ingredient of the
employment, without having been act of recruitment and placement of
licensed or authorized to do so. workers.
The absence of receipt cannot defeat
Illegal Recruitment – any recruitment a criminal prosecution for illegal
and placement act under Art. 13 done recruitment.
by anyone WITHOUT appropriate Worker can file ESTAFA aside from
license from BLE or POEA. illegal recruitment.
Principals, accomplices and
Two Kinds of Illegal Recruiter accessories – persons liable for
a. Illegal Recruiter by a non-license . illegal recruitment.
b. B. other illegal recruitment Acts by The officers having control,
either a non-license or a licensee management or direction of
c. B.1. Relating to Local Employment their business – liable in case of
1. Overcharging juridical persons.
2. False Notice
3. Misrepresentation to Secure When is employee liable?
License - An employee is liable when he actively
4. Inducing Worker to Quit and consciously participated in
5. Inducement not to Employ illegal recruitment.
6. Recruitment for Harmful Job
7. Obstructing Inspection
8. Contract Substitution
B.2. Relating to Overseas Foreign Employer
Employment - Automatically disqualified from
9. Misrepresentation in participating in the POEA program
Documents and recruiting and hiring Filipino
10. Nonsubmission of Reports Workers, if guilty.
11. Involvement in Travel
Agency ART. 39. PENALTIES
12. Withholding of Documents
13. Failure to Deploy (a) The penalty of life
14. Failure to Reimburse imprisonment and a fine of One
15. Non-Filipino Manager Hundred Thousand Pesos (P100,000)
16. Excessive Interest shall be imposed if illegal recruitment
17. Specifying a Loan Entity constitutes economic sabotage as
18. Non-negotiation of Loan defined herein;
19. Specifying a Medical Entity (b) Any licensee or holder of
20. Specifying a Training Entity authority found violating or causing
21. Violation of Suspension another to violate any provision of this
22. Collection of Insurance Title or its implementing rules and
Premium regulations shall, upon conviction
thereof, suffer the penalty of
Illegal Recruitment as Economic imprisonment of not less than two
Sabotage years nor more than five years or a
a. When Illegal Recruitment is fine of not less than PI0,000 nor more
committed by a SYNDICATE – If than P50,000, or both such
it is carried out by a group of imprisonment and fine, at the
three or more persons conspiring discretion of the court;
and/or confederating with one (c) Any person who is neither a
another. licensee nor a holder of authority
b. When Illegal Recruitment is under this Title found violating any
committed by a LARGE SCALE – provision thereof or its implementing
If it is committed against three or rules and regulations shall, upon
more persons individually or as a conviction thereof, suffer the penalty
group. of imprisonment of not less than four
years nor more than eight years or a
Note: fine of not less than P20,000 nor more
Illegal Recruitment + Absence of the than P100,000 or both such
elements of Large Scale/Syndicate = imprisonment and fine, at the
Simple Illegal Recruitment. discretion of the court;
(d) If the offender is a
corporation, partnership, association

Angelica B. Fernandez
Juris Doctor 2
 Labor Law and Social Legislation
Review Notes

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
(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.

Venue:
within the RTC 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.

Mandatory Periods
the PI of cases shall be
terminated within a period of 30
CD from the date of their filing.
Prescriptive Periods

IR under Art. IR under RA IR involving

39 8042 economic
sabotage
3 years 5 years 20 years

Angelica B. Fernandez
Juris Doctor 2