LABOR 1 (2021-2022, ARB) - PreMidterm Notes

Labor 1 by Azucena (2016) | UCSOL ALVEZ | CANILLO | LAMBAYAN |
OLIVA
n
 November 1, 1974 - Effectivity of the Labor
Code.
 Blas Ople - Father of Labor Code.
LABOR 1  The DOLE shall enforce the law; this is part of the
executive body.
Atty. Reynoso Belarmino | A.Y. 2021 - 2022  Legislations shall provide employment standards,
the number of hours of work, wage, etc.
Chapter 1 TITLE
PRELIMINARY THREE FIELDS OF LABOR LAW
1. Labor Standards - sets out the minimum terms,
GENERAL PROVISIONS1 conditions, and benefits of employment that
employers must provide or comply with and to which
workers are entitled as a matter of legal right. The
minimum requirements prescribed by existing laws,
rules and regulations and other issuances relating to
Article 1. Name of Decree. This Decree shall be known as the wages, hours of work, cost of living allowances and
"Labor Code of the Philippines". other monetary and welfare benefits, including those
set by occupational safety and health hazards.
Article 2. Date of effectivity. This Code shall take effect six EXAMPLE: wages and hours of work, on safety
(6) months after its promulgation.
and health of employees, employment benefits,
Article 3. Declaration of basic policy. The State shall afford overtime pay.
protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the 2. Labor Relations - defines the status, rights, duties,
relations between workers and employers. The State shall assure as well as the institutional mechanism that govern the
the rights of workers to self- organization, collective bargaining, individual and collective interactions between
security of tenure, and just and humane conditions of work. employers, employees, and their representatives.
Refers to the interactions between the employers and
employees or their representatives and the
Article 4. Construction in favor of labor. All doubts in the
implementation and interpretation of the provisions of this Code, mechanism by which the employment standards are
including its implementing rules and regulations, shall be negotiated, adjusted and enforced. This field
resolved in favor of labor. processes the terms, benefits and conditions to
improve the same through collective bargaining or
Article 5. Rules and regulations. The Department of Labor negotiation. EXAMPLE: unionization, negotiation,
and other government agencies charged with the administration dispute settlements.
and enforcement of this Code or any of its parts shall promulgate
the necessary implementing rules and regulations. Such rules and 3. Labor Legislation or Social or Welfare
regulations shall become effective fifteen (15) days after
Legislation - law governing the employer-
announcement of their adoption in newspapers of general
circulation. employee relation while the latter is not at work due
to the hazard arising from employment. Refers to a
Article 6. Applicability. All rights and benefits granted to broader category of law that protects or promotes the
workers under this Code shall, except as may otherwise be welfare of society or segments of it in furtherance of
provided herein, apply alike to all workers, whether agricultural social justice. It is intended to substitute income.
or non-agricultural. (As amended by Presidential Decree No. EXAMPLE: social security law, agrarian reform
570-A, November 1,DECREE
PRESIDENTIAL 1974) NO. 442 as amended by law, etc.
RA 6715
“A decree instituting a labor code, thereby revising and Labor - in ordinary signification, is understood as
consolidating labor and social laws to afford protection to physical toil although it does not necessarily exclude the
labor, promote employment and human resources application of skill, there is skilled and unskilled labor.
development and ensure industrial peace based on social
justice.” Skill - by dictionary definition, is the familiar knowledge
of any art or science, untied with readiness and dexterity
ARTICLE 1. NAME OF DECREE in execution or performance or in the application of the
“Labor Code of the Philippines” art or science to practical purposes.
Labor law is connected to several laws such as the Civil Work - covers all forms of physical or mental exertion,
Code, Penal Laws, SPL etc. or both combined, for the attainment of some object other
than recreation or amusement per se.
ARTICLE 2. DATE OF EFFECTIVITY
 Shall take effect 6 months after its promulgation.
 May 1, 1974 - Labor Code was signed into law.
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Labor Code, as amended
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Worker - refer to self-employed people and those constitutionally, through the adoption of measures
working in the service and under the control of another, legally justifiable, or extra-constitutionally, through the
regardless of rank, title, or nature of work. A exercise of powers underlying the existence of all
messenger, as well as a manager, is a worker. In fact, governments on the time-honored principle of salus
under Art. 13 of the Labor Code, any member of the populi est suprema lex. Social justice, therefore,
labor force, whether employed or unemployed is a must be founded on the recognition of the
worker. necessity of interdependence among divers and
diverse units of a society and of the protection
Employee - includes any person in the employ of the that should be equally and evenly extended to all
employer. The term shall not be limited to the employees groups as a combined force in our social and
of a particular employer, unless this code so expressly economic life, consistent with the fundamental
states. It shall include any individual whose work has and paramount objective of the state of
ceased as a result of or in connection with any current promoting the health, comfort, and quiet of all
labor dispute or because of any unfair labor practice if he persons, and of bringing about "the greatest
has not obtained any other substantially equivalent and good to the greatest number.”
regular employment. Always a natural person.
Foundation of Labor Law: Police Power of the
Employer - includes any person (natural or juridical) State.
acting in the interest of an employer, directly or ● It is settled that state legislatures may enact laws for
indirectly. The term shall not include any labor the protection of the safety and health of employees
organization or any of its officers or agents except when as an exercise of the police power, and this is true
acting as employer. (Govt is also considered as an even though such laws affect, not the health of the
employer). community generally, but the health or welfare of
operatives in any given situation.
Living Wage - the type of wage that will come up with
the normal state of living. (May vary across communities, ● POLICE POWER - Inherent power of the state to
Manila-600; Cebu-444) enact legislations that may interfere with the personal
liberty or property in order to promote the general
Why do we have labor laws? welfare of the people (general welfare clause).
● SOCIAL JUSTICE Consists of imposition of restraint upon liberty or
The State shall promote a just and dynamic social order property and in order to foster the common good.
that will ensure the prosperity and independence of the General welfare clause is deemed written into
nation and free the people from poverty through policies the employment contract.
that provide adequate social services, promote full
employment, a rising standard of living, and an improved Significant laws
quality of life for all. ● The Civil Code describes basically the nature of
labor-management relations. It states: “The relations
between capital and labor are not merely
Article II, Sec. 10 of the Constitution contractual. They are so impressed with public
The State shall promote social justice in all phases of interest that labor contracts must yield to the
national development. common good. Therefore, such contracts are
subject to the special laws on labor unions,
The State affirms labor as a primary social economic force. collective bargaining, strikes and lockouts,
Therefore, it shall protect the rights of workers and closed shops, wages, working conditions, hours
promote their welfare. of labor and similar subjects.”
Relation of Labor Law to other Laws

Calalang v. Williams Article 19. Every person must, in the exercise of his
Social justice is "neither communism, nor rights and in the performance of his duties, act with
despotism, nor atomism, nor anarchy," but the justice, give everyone his due, and observe honesty and
humanization of laws and the equalization of social good faith.
and economic forces by the State so that justice in its
rational and objectively secular conception may at Article 20. Every person who, contrary to law, wilfully
least be approximated. Social justice means the or negligently causes damage to another, shall indemnify
promotion of the welfare of all the people, the the latter for the same.
adoption by the Government of measures calculated
to insure economic stability of all the competent Article 21. Any person who wilfully causes loss or injury
elements of society, through the maintenance of a to another in manner that is contrary to morals, good
proper economic and social equilibrium in the customs or public policy shall compensate the latter for
interrelations of the members of the community, the damage.
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Article 1701 CC “Neither capital nor labor shall act regardless of sex, race, or creed, and regulate the relations
oppressively against the other, or impair the interest between workers and employers. The State shall assure
or convenience of the public.” the rights of workers to self- organization, collective
bargaining, security of
Article 1702 CC “In case of doubt, all labor tenure, and just and humane conditions of work.
legislations and all labor contracts shall be
construed in favor of the safety and decent living of
Basic Rights of Workers under the Constitution:
the laborer.
Article XIII, Section 3, Par. 1
Similarly, no provision in the Labor Code requires that The State shall afford full protection to labor, local and
employment relationships should be voluntary. This is not overseas, organized and unorganized, and promote full
needed in the Labor Code because voluntary servitude is employment and equality of employment opportunities for
already proscribed in the Constitution’s Bill of Rights all.
and in Article 1703 of the Civil Code. It states “No
contract which particularly amounts to involuntary Labor Standards
servitude, under any guise whatsoever, shall be 1. Just and Humane Condition of Work – the
valid.” Because of this law, an employer cannot forbid an employee is not oppressed in his work. The workload
employee from resigning from his job, subject to the given to him is normal and just, according to his
observance of the terms of the employment contract itself physical ability and mental fitness.
and the procedure on resignation under Article 299 of the a. Normal working hours - 8 hours a day.
Labor Code. b. Meal and rest period: every employer is
required to give his employees, regardless of
The Revised Penal Code and the Labor Code are also sex, not less than 1 hr time-off for regular meals.
related as to the commission of crime involving c. Safe and healthful conditions of work and
employers and employees. Provisions that affect the welfare services.
honor, property and person of the laborer. If he commits i. Proper illumination and ventilation, fire
any offenses, he will be prosecuted under the Labor Code exits, and extinguishers, occupational
and the RPC. health personnel services, family welfare
or family planning services at the
Special laws - GSIS, SSS, Agrarian Reform, etc. workplace
d. Employment of young workers
Supreme Court Decisions - Art. 8 CC: Judicial i. Min employable age is 15
decisions applying or interpreting the laws or the ii. A worker below 15 should be directly
Constitution shall form a part of the legal system of the under the sole responsibility of parents or
Philippines. NOTE: decisions of administrative bodies guardians; work must not interfere with
like the NLRC do not form part of the legal system of the child’s schooling and normal development
Philippines, only SC decisions set legal precedents. iii. No person below 18 can be employed in
hazardous or deleterious undertaking
SOURCES LABOR LAWS e. Employment of women
(LABOR STANDARDS) i. Welfare facilities must be provided in the
1. The Labor Code workplace
2. Judicial decisions ii. Prohibition against discrimination with
3. Rules and regulations issued by admin respect to pay, promotion, training
agencies opportunities, study, and scholarship grants
4. Omnibus Rules
2. Receive a living wage – a wage enough to
(LABOR RELATIONS) support you and your family. As the employee’s
Primary: needs arises, so is his/her wage.
1. Constitution a. Minimum wage
2. Statutes b. Holiday pay - one day for every regular
3. SC decisions holiday even if unworked subject to certain
conditions
Secondary: c. Premium pay for work within 8 hours on:
1. Decisions of foreign courts i. Special rest day 30% of basic daily rate
2. Reviewers in labor laws/textbooks ii. Rest day falling on a special day plus
3. Opinions of labor departments or agencies 50%
4. Rules and regulations issued by DOLE
ARTICLE 3. DECLARATION OF BASIC POLICY

The State shall afford protection to labor, promote full
employment, ensure equal work opportunities
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iii. Rest day falling on a regular holiday plus materials. Right to peaceful concerted activities in
30% of the 200% of the basic daily rate. accordance with law.
d. Overtime pay
i. Ordinary days: 25% of the basic hourly rate 3. Peaceful concerted activities including the right to
ii. special/rest/holiday: 30% of the regular strike in accordance with law.
hourly rate on said days.
e. Night shift differential pay 4. Security of Tenure – an employee is protected
i. 10% of the basic or regular rate between from illegal dismissal of his/her employer. Workers
10pm and 6am. cannot be dismissed without just or authorized
f. Service incentive leave causes. Workers shall be made regular after 6 months
i. 5 days with pay per year after one year of probation unless a different period is agreed upon by
service. the worker and the employee. (Constitutional basis:
g. Service charges Art. 13, Sec 3, 1987 Constitution)
i. 85%: distribution to rank and file
employees. 5. Participate in policy making – the policies are
ii. 15%: losses, breakages, distribution to for the employees so it is only natural for them to
managerial employees. participate in it.
h. Separation pay
i. 1 month pay or 1 months pay for every
PAL v. PALEA
year of service, whichever is higher, for
PAL revised its code of conduct w/o the participation
installation of labor saving devices and
of their employers. SC ruled in favor of PALEA
redundancy
pursuant to the employer’s right to participate in
ii. 1 month pay or ½ months pay for every
policy and decision making of the company.
year of service, whichever is higher, for
retrenchment and closure NOT due to
serious business losses or financial ARTICLE 4. CONSTRUCTION IN FAVOR OF
reverses. LABOR
iii. No separation pay from closure due to All doubts in the implementation and interpretation of
serious business losses or financial the provisions of this Code, including its implementing
reverses. rules and regulations, shall be
i. 13th month pay resolved in favor of labor.
i. 1/12 of the total basic salary earned within
the calendar year. Reason: Employers stand on a higher footing than the
j. Payment of wages employees and the State affirms labor as the primary
i. Shall be paid in cash, legal tender, at or social economic force. The policy is to apply the code to
near the place of work. a greater number of employees to enable them to avail of
ii. May be made through a bank upon written the benefits under the law, in line with the State’s desire
petition of majority of the workers in to give maximum aid and protection to labor.
establishments with 25 or more employees
and within 1km radius to a bank and shall If there is no doubt in implementing and interpreting the
be made direct to the employees. law, labor will enjoy no built-in advantage and the law
iii. It shall be given not less than once every 2 will have to be applied as it is.
weeks or twice within a month at intervals
not exceeding 16 days. Concern for Lowly Worker
iv. Labor-only contracting is prohibited and The laborers and employers do not stand on the same
the person acting as contractor is merely an footing. There is greater supply than demand for labor.
agent of the employer. The law must protect labor, at least, to the extent of
raising him to equal footing in bargaining relations with
3. Just share in the fruits of capital and to shield him from abuses brought about by
the necessity for survival.
production Labor Relations
1. Self-organization – employees are allowed to Management Rights
create union or organizations, provided that it is duly Concept:
registered in DOLE. ● The right of an employer to regulate, generally
without restraint, according to its own discretion and
2. Collective Bargaining - a contract between judgment, every aspect of its business, subject to
workers and employers on terms and conditions of limitations of law.
employment which over and above those mandated ● It is an act of the employer to regulate all aspects of
by law. Labor education of employees through his business from hiring to firing - has reference to
seminars, dialogues, and information, education and employment.
communication ● It should be exercised in good faith.
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● The privilege is inherent in the right of employers to 7. Must not be effected as a form of
control and manage their enterprise effectively. punishment/demotion without sufficient cause
1. Rights to ROI - employer has the right to return of The rights of the management are also constricted by
investments and to make profit. contracts.
2. To prescribe rules - employers have the right to ARTICLE 5. RULES AND REGULATIONS
make reasonable rules and regulations for the DOLE and other government agencies charged with the
government of their employees.
administration and enforcement of this Code or any of its
parts shall promulgate the necessary implementing rules
3. To select employees - this is an inherent and regulations. Such rules and regulations shall become
management prerogative and not a statutory effective 15 days after announcement of their adoption in
right. Employer has no right to hire a person as his newspapers of general circulation.
employee. The matter of selecting a person as one’s
employee is more appropriately described as a
prerogative. It is not a right in which you can go to
Publication is indispensable. Rules and regulations
court and enforce the right to hire.
are still valid even if no publication, however, it is
unenforceable. Laws will not apply unless the people
4. To transfer or discharge employees - The
are informed through the required publication.
transfer of an employee must be provided by law.
● The employee has the right to refuse a
This is the restriction of management with regard to its
promotion/ transfer. Because, under the law, a
rights.
promotion is a gift, thus, can be refused.
● Acceptance or consent is required and not The laws are implemented and enforced by DOLE by
the opportunity to be heard because promotion is
way of Department Orders or Regulations.
in the nature of a gift or donation thus it requires
the acceptance to be valid and binding
A rule or regulation promulgated by an administrative
● No formalities required except the notice of
body to implement a law, in excess of its rule-
promotion and acceptance of employee
making authority, is VOID.
Transfer - refers to lateral movement from one position
ARTICLE 6. APPLICABILITY
to another of equivalent rank, level or salary (2 kinds:
All rights and benefits granted to workers under this Code
from one position to another, from one office to another).
shall, except as may otherwise be provided
In this case, consent of employee is NOT required;
herein, apply alike to all workers, whether
this is inherent in right to control or manage an enterprise
agricultural or non-agricultural.
effectively
Government corporations created by Congress are subject
Promotion - denotes a scalar assent of a senior officer
to Civil Service rules, while those incorporated under the
or employee to another position higher either in duties,
general Corporation Law are covered by the Labor Code.
rank or status usually accompanied by increase in salary
Demotion - it is a management prerogative on the When a law is passed creating a government agency, and
movement from one position to another which carries such law carries with it a charter, then the government
with it diminution in duties, rank, status but may or may agency shall be governed by a civil service commission.
not be accompanied by a reduction in salary
Chapter 2
Requisites for valid transfer: RIPDMBE
1. Must be REASONABLE or it must have a sound EMANCIPATION OF TENANTS
purpose. If there is a need to augment workforce
because of a work assignment
2. Not inconvenient to welfare of the employee
3. Not prejudicial to welfare of the employee
4. Not involve a demotion of rank or status or a
diminution of the employee’s salary, benefits, etc
5. Must not be motivated by discrimination
6. Must not be made in bad faith
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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-workers. Being a
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vital part of the labor force, tenant-farmers on private agricultural BOOK I

lands primarily devoted to rice and corn under a system of share
crop or lease tenancy whether classified as landed estate or not
PRE-EMPLOYMENT
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.
Articles 12 to 42
In all cases, the land owner may retain an area of not more than ARTICLE 12. STATEMENT OF OBJECTIVES
seven (7) hectares if such landowner is cultivating such area or 1. Promote and maintain a state of full employment;
will now cultivate it. 2. Protect every citizen desiring to work locally and
overseas;
Article 9. Determination of land value. For the purpose of 3. Facilitate a free choice of available employment
determining the cost of the land to be transferred to the tenant-
4. Facilitate and regulate the movement of workers;
farmer, the value of the land shall be equivalent to two and one-
half (2-1/2) times the average harvest of three 5. Strengthen the network of public employment offices
(3) normal crop years immediately preceding the promulgation of and rationalize the participation of the private sector; and
Presidential Decree No. 27 on October 21, 1972. 6. Ensure careful selection of Filipino workers for
overseas employment to protect the good name of the PH.
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 amortization due shall be paid by the farmers’ Unemployment Problem
cooperative in which the defaulting tenant-farmer is a member,
with the cooperative having a right of recourse against him.
This is exacerbated by population growth that appears
unchecked.
The government shall guarantee such amortizations with shares
of stock in government-owned and government- controlled Responsibility of DOLE
corporations. Administrative Code of 1987 (EO 292) designated DOLE
as the lead agency- the primary policy- making,
programming, coordinating, and administrative entity of
the Executive Branch of the government in the field of
Article 10. Conditions of ownership. No title to the land
labor and employment. DOLE has the “primary
acquired by the tenant-farmer under Presidential Decree No. 27
shall be actually issued to him unless and until he has become a responsibility” for:
full-fledged member of a duly recognized farmers’ cooperative. 1. Promotion of gainful employment opportunities and
the optimization of the development and utilization of the
Title to the land acquired pursuant to Presidential Decree No. 27 country’s manpower resources;
or the Land Reform Program of the Government shall not be 2. Advancement of worker’s welfare; and
transferable except by hereditary succession or to the 3. Maintenance of industrial peace.
Government in accordance with the provisions of Presidential
Decree No. 27, the Code of Agrarian Reforms and other existing It is the Regional Offices, headed by Regional Directors
laws and regulations.
(RDs), which are the frontline action centers of DOLE.
Article 11. Implementing agency. The Department of Title I

Agrarian Reform shall promulgate the necessary rules and
regulations to implement the provisions of this Chapter.
RECRUITMENT AND PLACEMENT OF
WORKERS
Chapter 1
GENERAL PROVISIONS
ARTICLE 13. DEFINITIONS

Term Definition
Worker Any member of the labor force.

Recruitment and Act of canvassing, enlisting,
Placement contracting, transporting,
(CECTUHP) utilizing, hiring or procuring
ketchup na lang workers, whether for profit or
imagine-a not, provided that any person
or entity which, in any manner,
offers or promises for a fee,
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employment to 2 or more persons People v. Goce

is deemed engaged in recruitment To prove that the accused was engaged in recruitment
and placement. activities, it must be shown that the accused gave
the complainant the distinct impression that she
Private Fee- Engaged in recruitment and had the power or ability to send the complainant
charging placement of workers for a fee. abroad for work, such that the latter was convinced to
Employment part with her money in order to be employed.
Agency
License A document authorizing a

person or entity to operate a Darvin v. CA and RPH, GR 125044 (1998)
private employment agency. The complainant gave P150K to the accused- appellant for
payment of air fare and US visa and other expenses. The
Private Engaged in the recruitment and recipient stated that it was “for AirFare and visa to USA”.
Recruitment Entity placement of workers, without
charging any fee. The Court concluded that “by themselves, procuring a
Authority A document authorizing a passport, airline tickets and foreign visa for another
person or association to individual, without more, can hardly qualify as
engage in recruitment and recruitment activities.”
placement activities as a private
recruitment entity.
ARTICLE 14. EMPLOYMENT PROMOTION
Seaman Employed in a vessel engaged in
maritime navigation Power and Authority of the Secretary of Labor:
[NNDR]
Overseas Employment of a worker
1. Organize and establish new employment offices;
Employment outside the PH.
2. Organize and establish nationwide job clearance and
Emigrant Emigrates to a foreign country. information system;
3. Develop and organize a program that will facilitate
occupational, industrial and geographical mobility of
Article 13 (b): What Constitutes Recruitment and labor and provide assistance in the relocation of workers;
Placement? and
4. Require the submission of employment information,
People v. Panis, 142 SCRA 664 (1986) as may be prescribed by the Secretary of Labor.
Criminal complaints were filed against Abug for operating Employment Promotion
a fee-charging employment agency without first securing a DOLE carries out programs for local and overseas
license. Abug claimed that under Article 13(b) there would employment. Effective allocation of manpower resources
be illegal recruitment only when 2 or more persons in any in local employment is assigned to the Bureau of Local
manner were promised or offered any employment for a Employment (BLE) and to PH Overseas Employment
fee. Administration (POEA) for overseas employment.
The Court ruled that the number of persons is not To pursue its responsibility to promote employment
an essential ingredient of the act of recruitment opportunities, the DOLE carries out programs for local
and placement of workers. The presumption of this and overseas employment.
Article is that the individual or entity is engaged in
recruitment and placement whenever he or it is dealing ARTICLE 15. BUREAU OF EMPLOYMENT
with 2 or more persons to whom, in consideration of a fee, SERVICES
an offer or promise of employment is made in the course
of the “canvassing, enlisting, contracting, transporting, Powers and Duty:
utilizing, hiring or procuring (of) workers.” Any of the acts 1. Primarily responsible for developing and monitoring
mentioned in the basic rule in Article 13(b) will constitute a comprehensive employment program:
recruitment and placement even if only one prospective a. Formulate and develop plan and programs;
worker is involved. The proviso merely lays down a ruled b. Establish and maintain a registration and/or
of evidence that where a fee is collected in consideration licensing system to regulate private sector
of a promise or offer of employment to 2 or more participation and secure the best possible terms
prospective workers, the individual or entity dealing with and conditions of employment for Filipino
them shall be deemed to be engaged in the act of contract workers;
recruitment and placement.
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c. Formulate and develop employment programs BLE Regulations
beneficial to disadvantaged groups and A licensed PRPA may charge a worker a placement fee
communities; that does not exceed 20% of the worker’s 1st month’s
d. Regulate the employment of aliens; basic salary, chargeable after actual commencement of
e. Develop a labor market information system; employment.
f. Develop a responsive vocational guidance and
testing system; and Note: Section 13 of RA 10361 (Kasambahay Law)
g. Maintain a central registry of skills, except for Regardless of whether the domestic worker was
seamen. hired through a private employment agency or a
third party, no share in the recruitment or finder’s fee
2. Regional Offices of the Ministry of Labor shall be charged against the domestic worker by the
a. Have original and exclusive jurisdiction over said private employment agency or third party.
matters or cases involving employer- employee
relations, provided that the Bureau of Service Fee Chargeable to Employer
Employment Services may exercise such power The service fee shall not exceed 20% of the annual
whenever the Minister of Labor deems it salary of the worker. In no case shall be service fee be
appropriate. deducted from the worker’s salary. Transportation
b. Decisions of the Regional Offices of BES are expenses of the worker shall also be charged against the
appealable to National Labor Relations employer and shall in no case be deducted from the
Commission (NLRC). worker’s salary.
c. Decisions of NLRC are final and not appealable.
Public Employment Service Office (PESO)
3. The Minister of Labor has the power to impose and 1. RA 8759 requires the establishment of PESO in capital
collect fees. towns, cities and other strategic areas.
a. The fees are deposited in the National Treasury
to the General Fund, subject to PD 1177 (40). 2. PESO is intended to serve as employment service and
information center in its area of operation;
Local Employment
The head agency for local employment is the Bureau of 3. Regularly obtains lists of job vacancies from
Local Employment (BLE) pursuant to PD 850. BLE and employers, publicizes them, invites and evaluates
POEA were created by EO 797. applicants, and refers them for probable hiring;
Through Administrative Order 186, the line functions of 4. Provides training and educational guidance and
BLE are transferred to DOLE Regional Offices. It now employment counseling services; and
handles the licensing of local recruitment agencies and
the issuance of work permits to non- resident aliens and 5. Renders special services to the public.
of employment registration certificates to resident aliens.
Hiring of Workers in Infrastructure Project (WHIP)
Private Recruitment and Placement Agency 1. A program pursuant to RA 6885;
(PRPA) 2. Requires the DPWH and private contractors to hire
An agency that recruits applicants for local employment. 30% skilled workers and 50% unskilled labor in the area
It refers to any individual, partnership, corporation or where the project is being undertaken.
entity engaged in the recruitment and placement of
persons for local employment. (BLE Rules) ARTICLE 16. PRIVATE RECRUITMENT
GR: No person or entity shall engage in the recruitment
License of PRPA and placement of workers.
1. Issued by DOLE Regional Office;
2. Non-transferable; EXC: PPSPCDP
3. Valid nationwide for 2 years; and 1. Public Employment Offices
4. Renewable. 2. Article 25 - “the private employment sector shall
participate in the recruitment and placement of
Prior to the approval of a license to operate: workers, locally and overseas.”
1. the applicant must post cash bond and surety bond 3. Private Recruitment Entities
2. which is valid for 2 years; and 4. Shipping and manning agents or representatives
3. will answer for all valid and legal claims arising 5. POEA
from the illegal use of the license; and 6. Construction contractors if authorized to operate by
4. likewise guarantee compliance with the provisions of DOLE and the Construction Industry Authority.
Labor Code and its IRR. 7. Members of the diplomatic corps although hirings
done by them have to be processed through POEA.
8. Other persons or entities as may be authorized by the
DOLE secretary.
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ARTICLE 17. OVERSEAS EMPLOYMENT 6. RA 8042 Migrant Workers and Overseas
DEVELOPMENT BOARD Filipinos Act of 1995
Undertake a systematic program for overseas a. Institutes the policies on overseas employment
employment of Filipino workers in excess of domestic and establishes a higher standard of protection
needs and to protect their rights to fair and equitable and promotion of the welfare of migrant workers,
employment practices. their families and of overseas Filipinos in distress.
Powers and Duties: B: Very important and significant law with regard to
1. Promote the overseas employment of Filipino overseas and migrant workers. Because of this all cases
workers; and problems governing overseas employment were
2. Secure the best possible terms and conditions of transferred to NLRC.
employment of Filipino contract workers;
3. Recruit and place workers for overseas E.g: an employee illegally terminated by a foreign
employment; and employer will file his case before the NLRC for an
4. Act as secretariat for the Board of Trustees of the illegal dismissal case against his employment
Welfare and Training Fund of Overseas Workers. agency who is liable solidarily.
Legislative Background of Overseas The employee will get:
Employment 1. backwages of the unpaid unexpired period of the
1. Act No. 2486 contract- 6%;
a. First law passed by the Philippine Legislature in 2. refund of placement fee with 12%/ annum;
1915 related to overseas employment.
b. It provides regulations for license issuance, and 7. RA 10022
license fee and welfare. a. Lapsed into law on March 8, 2010.
c. Became the basis of the government’s policy on b. Improves the standard of protection and
overseas employment from 1915 up to the Labor promotion of welfare provided under RA 8042.
Code in 1975.
Policies on Migrant Workers (RA 8042,a s
2. PD 442 [the Labor Code] amended by RA 10022)
a. Paved the way for a stricter government 1. Uphold the dignity of its citizens whether in country
regulation of the overseas employment industry. or overseas, in general, and Filipino migrant workers,
b. Initially aimed at giving the government complete in particular, and endeavor to enter into bilateral
control of the overseas employment program. agreements with countries hosting overseas Filipino
c. Created OEDB and NSB to implement a more workers.
systematic deployment of land-based and sea- 2. Afford full protection to labor, local and overseas,
based workers to other countries. organized and unorganized, and promote full
employment and equality of employment
3. PD 412 opportunities for all.
a. Revived private sector participation in the 3. The State does not promote overseas employment as
recruitment and placement of Filipino workers- a means to sustain economic growth and achieve
thus, limiting the government’s role to national development. The State, therefore, shall
government-to-government arrangements. continuously create local employment opportunities
and promote the equitable distribution of wealth and
4. EO 797 the benefits of development.
a. Passed in 1982 and aimed at streamlining 4. Affirms the fundamental equality before the law of
operations in the overseas employment program. women and men and the significant role of women in
b. All the overseas employment program of BES nation-building. The State shall apply gender-
were united in a single structure called PH sensitive criteria in the formulation and
Overseas Employment Administration (POEA). implementation of policies and programs.
5. Free access to the courts and quasi-judicial bodies
5. EO 247 Reorganization Act of POEA and adequate legal assistance shall not be denied.
a. Passed in 1987 in response to the government’s 6. Filipino migrant workers and all overseas Filipinos
call for a more efficient delivery of public service. have the right to participate in the democratic
b. Strengthens the worker’s protection and welfare decision-making processes of the State and to be
and tightens the regulations of the private sector’s represented in institutions relevant to overseas
recruitment activities. employment.
7. Recognizes that the most effective tool for
empowerment is the possession of skills by migrant
workers. The government shall provide
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them free and accessible skills development and Penalty of Members of the POEA Governing
enhancement programs. The government shall Board
deploy and/or allow the deployment only of skilled The members of the POEA Governing Board who
Filipino workers. actually voted in favor of an order allowing the
8. The State recognizes [that] non-governmental deployment of migrant workers without any of the
organizations, trade unions, workers associations, aforementioned guarantees shall suffer the penalties of
recruitment and manning agencies and similar entities removal or dismissal from service with disqualification to
duly recognized as legitimate, are partners of the State hold any appointive public office for five (5) years.
in the protection of Filipino migrant workers and in
the promotion of their welfare. When public welfare so requires, the POEA Governing
9. Government fees and other administrative costs to Board, after consultation with the Department of Foreign
migrant workers shall be rendered free without Affairs, may, at any time, terminate or impose a ban on
prejudice to the provision of Section 36 of R.A. No. the deployment of migrant workers.
8042.
Functions and Powers of POEA
OFWs: Land-based or Sea-based 1. Principal Functions
a. Formulation, implementation and monitoring of
Land -based Sea-based
policies and programs on overseas employment of
Occupation requires that Employed in a vessel Filipino workers.
majority of his working/ engaged in maritime 2. Protector of overseas workers’ rights to fair and
gainful hours are spent navigation. equitable employment practices.
on land 3. Deployment of Filipino workers through
government-to-government hiring.
Occupations are broader, Work pertains to ship
covering all the skill operations IOW, POEA performs administrative, regulatory,
areas one can think of. enforcement and adjudicatory functions.
Constitutes the great Realignment of POEA Jurisdiction (modified by

majority of OFWs. RA 8042)
The employer-employee relations cases were transferred
from the POEA to the NLRC pursuant to RA 8042.
Selective Deployment (RA 8042)
The receiving country must have:
Jurisdiction Retained by POEA - original and
1. Existing labor and social laws protecting the
exclusive.
rights of workers, including migrant workers;
1. All cases administrative in character, arising from
2. Signatory to and/or a ratifier of multilateral
violations of rules and regulations relating to
conventions,declarations or resolutions relating
licensing and registration of recruitment and
to the protection of workers, including migrant
employment agencies or entities; and
workers; and
3. Concluded a bilateral agreement or arrangement
2. Disciplinary action cases and other special cases
with the government on the protection of the
which are administrative in nature, involving
rights of overseas Filipino Workers:
employers, principals, contracting partners and
Filipino migrant workers.
Provided, That the receiving country is taking positive,
a. Complaints for breach of discipline against a
concrete measures to protect the rights of migrant
contract worker shall be filed with the
workers in furtherance of any of the guarantees.
Adjudication Office or Regional Office of the
POEA, as the case may be.
In the absence of a clear showing that any of the
b. POEA may motu proprio undertake disciplinary
aforementioned guarantees exists in the country of
action against a worker for breach of discipline.
destination, no permit for deployment shall be issued by
It shall establish a system of watching and
the Philippine Overseas Employment Administration
blacklisting overseas contract workers.
(POEA).
c. Pls see Section 6 and 7, Rule 7, Book 7
of POEA Rules and Regulations
The Department of Foreign Affairs, through its foreign
posts, shall issue a certification to the POEA, specifying
3. Retains the power to regulate the private sector’s
therein the pertinent provisions of the receiving country’s
participation in the recruitment and overseas
labor/social law, or the convention/declaration/resolution,
placement of workers.
or the bilateral agreement/arrangement which protect the
rights of migrant workers.
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Grounds for Disciplinary Actions Name hirees - individual workers who are able to
1. Commission of a felony secure contracts for overseas employment on their own
2. Drug addictions or possession or trafficking of efforts and representation without the assistance or
prohibited drugs. participation of any agency.
3. Desertion or abandonment.
4. Drunkenness Requirement for Name-Hirees: CPVMA
5. Gambling 1. Employment contract;
6. Initiating or joining a strike or work stoppage. 2. Valid passport;
7. Creating trouble. 3. Employment visa or work permit, or equivalent
8. Embezzlement. document;
9. Theft or robbery. 4. Certificate of medical fitness; and
10. Prostitution. 5. Certificate of attendance to the required
11. Vandalism or destroying company property. employment orientation/ briefing.
12. Gunrunning or possession of deadly weapons.
13. Unjust refusal to depart for the worksite. ARTICLE 19 OFFICE OF EMIGRANT AFFAIRS
14. Violation/s of the laws and sacred practices of the Repealed
host country and unjustified breach of government-
approved employment contract. ARTICLE 20 NATIONAL SEAMEN BOARD
Repealed
Appealability of Decisions:
1. POEA → appealable to → SECRETARY OF
LABOR Vir-Jen Shipping and Marine Services vs. NLRC,
a. only administrative and disciplinary case 115 SCRA 347 (1982), 125 SCRA 577 (1983)
2. NLRC → appealable only to → NLRC DIVISION Certain seamen entered into a contract of employment for
a 12-month period. Some three months after the
Foreign Judgment commencement of their employment, the seamen
POEA has no jurisdiction to enforce foreign judgment. It demanded a 50% increase of their salaries and benefits.
must be brought before the regular courts. The POEA is The agent of the owner of the vessel agreed to pay a 25%
not a court, it is an administrative agency, exercising, increase, but when the vessel arrived in Japan shortly
inter alia, adjudicatory or quasi-judicial functions. Neither afterwards, the seamen were repatriated to Manila and
the rules of procedure nor the rules of evidence which are their contracts were terminated.
mandatorily applicable in proceedings before courts, are
observed in proceedings before the POEA. NSB - upheld the cancellation of contract.
NLRC - termination was illegal
2nd Division of SC - reversed NLRC decision
Mckenzie et al v. Cui, GR 48831 (Feb. 6, 1989) SC En banc - termination is illegal
Aguedo, a licensed seaman, filed with the RTC a
complaint for recovery of certain sums of money, with The contention that manning industries in the Philippines
damages against Kenneth and Kraamer as would not survive if the instant case is not decided in favor
Administrative Manager of MV Carbay. Defendants of the petitioner is not supported by evidence. The Wallem
moved for its dismissal for lack of jurisdiction and case was decided on February 20, 1981. There have been
alleged that the National Seamen’s Board (now POEA) no severe repercussions, no drying up of employment
has the exclusive jurisdiction over the case. opportunities for seamen, and none of the dire
consequences repeatedly emphasized by the petitioner
The SC ruled that it is the regular courts, not POEA, who happened.
has jurisdiction over the case. Aguedo’s complain reveals
his intention to seek and claim protection under the Civil The form contracts approved by the National Seamen
Code and not under the Labor Code. The items demanded Board [now POEA] are designed to protect Filipinos, not
are not labor benefits such as wages, overtime, or foreign shipowners who can take care of themselves. The
separation pay, but are items claimed as natural standard forms embody the basic minimums which must
consequences of such dismissal. His complaint is be incorporated as parts of the employment contract. The
denominated as “damages” as a consequence of his alleged National Labor Relations Commission, as the appellate
summary dismissal by Kraamer. tribunal from the decision of the National Seamen Board,
correctly ruled that the seamen did not violate their
contracts to warrant their dismissal.
ARTICLE 18. BAN ON DIRECT-HIRING
GR: Not allowed
EXC: Direct hiring made by members of diplomatic

corps and others mentioned in this Article. 7 AGENCIES OF DEPARTMENT OF LABOR
1. DOLE
2. NLRC
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3. NCMB – National Conciliation and Mediation the recruitment and overseas placement of workers
Board by setting up a licensing and registration system and
4. POEA – Ph Overseas Employment Agency 5.POWA formulate and implement, in coordination with
– Philippine Overseas Workers appropriate entities concerned, when necessary, a
Administration system for promoting and monitoring the overseas
6. TESDA – Technical Educational Skills employment of Filipino workers.
Development Authority
7. RTWPB – Regional Tripartite Wage and 4. Overseas Workers Welfare Administration
Productivity Board [Dept of Labor, NEDA, DTI] [OWWA] - Provide the Filipino migrant worker and
his family all the assistance they may need in the
ARTICLE 21. FOREIGN SERVICE ROLE AND enforcement of contractual obligations by agencies
PARTICIPATION
or entities and/or their principals; and to make
representation and may call on the agencies or
Protection and Assistance by Government
entities concerned to conferences or conciliation
Agencies
meetings for the purpose of setting the complaints
RA 8042 assigns 4 government agencies to promote the
or problems brought to his attention.
welfare and protect the rights of migrant workers and, as
far as applicable, of all overseas Filipinos. [OWWA] Overseas Workers Welfare
Administration [previously known as Welfund]
1. Department of Foreign Affairs (DFA) - Take PD 1694 created a Welfare Fund (Welfund) for OWA to
priority action or make representation with the provide social and welfare services. It was funded
foreign authority concerned to protect the rights of with contributions from the workers
migrant workers and other overseas Filipinos and themselves and the fees and charges imposed by the
extend immediate assistance including the
POEA and the BLE. It is administered by a Board of
repatriation of distressed or beleaguered migrant
Trustees chaired by the Secretary of Labor and
workers and other overseas Filipinos.
Employment.
a. R.A. No. 8042 created the position of Legal
Assistant for Migrant Worker’s Affairs Role of OWWA in Repatriation
[LAMWA] under the Department of Foreign
GR: The repatriation of the worker and the transport of
Affairs. LAMWA’s primary responsibility is:
his personal belongings shall be the primary
i. to provide and coordinate all legal
responsibility of the agency which recruited or deployed
assistance services to Filipinos in distress;
the worker overseas. All costs attendant to repatriation
and
shall be borne by or charged to the agency concerned
ii. administers the Legal Assistance Fund
and/or its principal.
for Migrant Workers.
b. RA 8042 also established Migrant Workers and
EXC: In cases where the principal or recruitment agency
Other Overseas Filipinos Resource Center” cannot be identified, all costs attendant to repatriation
[MWOOFR] in Philippine Embassies in
shall be borne by the OWWA. The law has created and
countries where there are at least 20,000
established an emergency repatriation fund under the
migrant workers to provide such services and
control of OWWA.
be managed by the Labor Attaché.
1. Remains - borne by the principal and/ or the local
2. Department of Labor and Employment
agency;
[DOLE] - See to it that labor and social welfare laws
2. Worker at fault - the principal/ employer or agency
in the foreign countries are fairly applied to migrant
will not be responsible.
workers and whenever applicable, to other overseas
3. Disasters - OWWA, in coordination with
Filipinos.
appropriate international agencies, shall undertake
a. [RPM] Re-Placement and Monitoring
the repatriation of workers.
Center - Created by R.A. No. 8042 in the
4. Mandatory Repatriation of Underage Worker
DOLE to serve as
- The responsible officers in the foreign service shall
i. a promotion house for local
without delay repatriate said workers and advise the
employment of these returning workers
DFA through the fastest means of communication
and to tap their skills for national
available of such discovery and other relevant
development,
information.
ii. coordinate with the private sector and
a. Penalties:
iii. formulate a computer-based
i. The license of a recruitment/manning
information system on skilled Filipino
agency which recruited or deployed an
migrant workers.
underage migrant worker shall be
automatically revoked and
3. PH Overseas Employment Administration
ii. shall be imposed a fine of not less than five
[POEA] - Regulate private sector participation in
hundred thousand pesos
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(P500,000.00) but not more than one
Chapter 2
million pesos (P1,000,000.00).
iii. All fees pertinent to the processing of REGULATION OF RECRUITMENT AND PLACEMENT ACTIVIT
papers or documents in the recruitment or
deployment shall be refunded in full by
the responsible
recruitment/manning agency, without need ARTICLE 25. PRIVATE SECTOR PARTICIPATION
of notice. The refund shall be independent IN THE RECRUITMENT AND PLACEMENT OF
of and in addition to the indemnification WORKERS
for the damages sustained by the underage
migrant worker and shall be paid within POEA’s Retained Jurisdiction
thirty R.A. No. 8042 transferred from POEA to NLRC the
(30) days from the date of the mandatory jurisdiction over OFWs’ claims arising from employer-
repatriation. employee relationship. POEA retains original and
exclusive jurisdiction over cases involving:
1. violations of POEA rules and regulations,
Equi-Asia Placement, Inc. vs. Department of 2. disciplinary cases and
Foreign Affairs, et al., G.R. No. 152214, 3. other cases that are administrative in character
September 19, 2006 involving OFWs.
A recruitment agency has questioned the validity of
Section 15 of R.A. No. 8042 and of Secs. 52 to 55 of the Thus, POEA performs regulatory, enforcement, and
implementing rules on the ground that they violate the limited or special adjudicatory functions.
agency’s right to due process.
Validity of POEA Regulations
The Court upheld the validity of the law and the rules Section 4(a), EO 797 “ x x x The governing Board of
which provide that “the repatriation of remains and the Administration (POEA), as hereunder provided,
transport of the personal belongings of a deceased worker shall promulgate the necessary rules and
and all costs attendant thereto shall be borne by the regulations to govern the exercise of the
principal and/or the local agency.” but the Court noted adjudicatory functions of the Administration
that Section 15 of Republic Act No. 8042 certainly does (POEA).”
not preclude a placement agency from establishing the
circumstances surrounding an OFW’s dismissal from The national legislature deemed it necessary to entrust to
service in an appropriate proceeding. As such administrative agencies the authority to issue rules to
determination would most likely take some time, it is only carry out the general provisions of the statute. This is
proper that an OFW be brought back here in our country at called “the power of subordinate legislation.'' The said
the soonest possible time. rules and regulations of the administrative agencies have
the force and effect of law.
This is the same reason why repatriation is made by law an
obligation of the agency and/or its principal without the POEA Circular No. 11 (1983) Unenforceable for
need of first determining the cause of the termination of Lack of Publication -
the worker’s employment. Repatriation is in effect an Tañada vs. Tuvera, 136 SCRA 27 (1985)
unconditional responsibility of the agency and/or its Administrative rules and regulations must be
principal that cannot be delayed by an investigation of why published if its purpose is to enforce or implement
the worker was terminated from employment. existing law pursuant to a valid delegation.
Otherwise, it cannot be used as a basis for the
imposition of administrative sanctions.
ARTICLE 22. MANDATORY REMITTANCE OF This Article mandates to have placement agencies to
FOREIGN EXCHANGE EARNINGS help the government deploy our workers abroad pursuant
EO 857 prescribes the foreign exchange remittance from to the requirements provided by POEA.
50 to 80% of the basic salary of the worker, depending on
his/her kind of job. Due to the OFW’s high remittances, The controlling contract is the contract signed by the
they were called by the government “Mga Bagong recruitment agency with POEA.
Bayani” [New Heroes].
Private sector placement agencies are solidarily
Mandatory for all OFW’s to have their earnings be liable with the employer abroad.
remitted to the country where their family and other
dependents are. E.g: If there are money claims against the
placement agency and the employer, one of them
ARTICLE 23 AND 24 REPEALED may be responsible for the payment. In turn, the
placement agency may ask for a refund from the
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foreign employer. In this case, it is enough that the ARTICLE 29. NON-TRANSFERABILITY OF
case is filed here in the PH. LICENSE OR AUTHORITY
ARTICLE 26. TRAVEL AGENCIES PROHIBITED Place of recruitment
TO RECRUIT Licensees or holders of authority of their duly authorized
Placement agencies are the ones who will recruit the representatives may, as a rule, undertake recruitment and
workers, while travel agencies aer the ones obliged to placement activity only at their authorized official
deploy workers but they are not allowed to recruit addresses. As a matter of procedure, prior to the conduct
workers. of provincial recruitment, a copy of the authority shall
be presented to the DOLE/Regional Director concerned.
Agencies prohibited by POEA to be Recruitment Recruitment activities are conducted under the supervision
Agencies: of a DOLE employee or officer designated by the
1. Travel Agencies Regional Director.
2. Sales Agencies
Lifetime - 3 years, renewable not earlier than 30 days
ARTICLE 27. CITIZENSHIP REQUIREMENT but not later than 60days before expiration?
You can engage in business if there is a 60-40% ratio
controlled by the Filipinos as against the foreigners. Place of Recruitment - the place of the recruitment
However, under this Article, it should be 75% of the agency.
authorized capital stock. This is basically an
exemption to the 60-40%constitutional requirement in ARTICLE 30. REGISTRATION FEES
businesses. The Secretary of Labor shall promulgate a schedule
of fees for the registration of all applicants for
ARTICLE 28. CAPITALIZATION license or authority.
A private employment A private recruitment or
There is a schedule provided by DOLE
agency for local manning agency for
employment overseas employment
ARTICLE 31. BONDS
- minimum net worth of - minimum capitalization
1M in case of single of P5M for single Amount of bond
proprietorship and proprietorship or OVERSEAS EMPLOYMENT - upon approval of the
partnership or a minimum partnership, and a application for license, the applicant for license to operate
paid up capital of P1M in minimum paid-up capital a private recruitment agency shall:
the case of a corporation. of P500K for corporation. ○ Submit an escrow agreement (P1M), with
confirmation of escrow deposit with an
accredited reputable bank.
○ Post a surety bond (P100K) from a bonding
Agencies not Allowed to Engage in Recruitment
company acceptable to the POEA and
and Placement
accredited with the Insurance Commission.
1. For local employment
Surety bond shall cover the validity of the
a. Convicted of illegal recruitment, anti- period of the license.
child recruitment, crimes involving
moral turpitude The bonds and escrows shall answer for all valid and
b. Guilty of illegal recruitment legal claims arising from violations of the conditions for
c. Agencies whose licenses were the grant and use of the license and/or accreditation and
previously cancelled contracts of employment.
d. Coops not registered under the coop
act of the PH Enforcement
e. Law enforces and officials of DOLE
POEA - has the power to enforce liability under cash or
f. Sole proprietorships are not allowed to surety bonds.
engage in sub contracting and job
contracting activities.
Distinguish Bonds:
2. Overseer employment - almost similar Placements and Respondent Agency who
Recruitment Agencies lost in NLRC
Disqualifications of Recruitment Agencies [11
kabuok sa new book] Fixed by the DOLE and The decision of the BLRC
1. Obtain compulsory insurance its circulars. cannot be appealed if the
2. Provide workers the copy of contract bond is not paid which is
3. Guaranty that the officer or employee is not equivalent to the amount of
within the 4th civil degree of consanguinity the award.
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● Failure to replenish shall cause the suspension of the
Finman General Assurance vs. Innocencio (GR license.
Nos. 90273-75, November 15, 1989)
Release of cash bond/deposit in escrow
Issue: WON the liability under the bond must be ● Recruitment agency for local employment
determined and enforced, not by the POEA or the ○ When the agency voluntarily surrenders its
Sec. of Labor, but by the Insurance Commission or license, they shall be entitled to the refund of its
by the regular court. deposited cash bond only after posting a surety
bond of similar amount from a bonding
Ruling: To compel the POEA and the beneficiaries of company accredited by the Insurance
Finman’s bond to go to the Insurance Commissioner Commission. (SB is valid for 3 years from
or to a regular court of law to enforce that bond would expiration of license)
be to collide with the public policy which requires
prompt resolution of claims against private ● Recruitment or manning agency for overseas
recruitment and placement agencies. employment
○ When the agency voluntarily surrenders its
Cash and surety bonds are required by the POEA license, they shall be entitled to the release of
and its predecessor agencies from recruitment and the deposit in escrow, only after posting a
employment companies precisely as a means of surety bond of similar amount valid for 4 years
ensuring prompt and effective recourse against such from expiration of license and submission of
companies when held liable for applicants or workers’ clearance from the NLRC and POEA.
claims.
Apart from Appeal Bond ARTICLE 32. FEES TO BE PAID BY WORKERS
● Article 31 Labor Code - “All applicants for Any person applying with a private fee-charging
license or authority shall post such cash and employment agency for employment assistance shall not
surety bonds as determined by the Secretary of be charged any fee until he has obtained employment
Labor to guarantee compliance with prescribed through its efforts or has actually commenced
recruitment procedures, rules and regulations, employment. Such fee shall be always covered with the
and terms and conditions of employment as
appropriate receipt clearly showing the amount paid. The
may be appropriate.”
Sec of Labor shall promulgate a schedule of allowable
○ 31 is intended to guarantee payment of all valid
fees.
and legal claims against an employer, but these
claims are not limited to monetary awards to
Chargeable fees
employees whose contracts of employment have
1. Placement and documentation fees for overseas
been violated.
employment
a. Fees and costs chargeable to principals
● Article 223 Labor Code - “Appeal. Decisions, (Sec 2 POEA Rules):
awards, or orders of the Labor Arbiter are final i. Visa fee
and executory unless appealed to the ii. Airfare
Commission by any or both parties within ten
iii. POEA processing fee
(10) calendar days from receipt of such
iv. OWWA membership fee
decisions, awards, or orders.”
v. Transportation
○ 223 talks about the requirement for the
vi. Additional freight
perfection of an appeal. It is intended to insure
b. Fees and costs chargeable to the
the payment of the monetary award if the
workers (Sec 3 POEA Rules):
judgment is affirmed on appeal.
i. Placement fee in an amount equivalent
to one month basic salary exclusive of
POEA can go against these bonds for the violations of the
2 documentation costs, except those
recruiter of the conditions for its license, the provisions of
domestic helpers or workers of
the Labor Code, the rules of the POEA as well as the
countries who do not require placement
settlement of other liabilities the recruiter may incur.
fees.
ii. Documentation costs shall include:
Effect of a valid garnishment
■ Passport
● The deposit in escrow shall no longer be considered ■ NBI/Police/Brgy. Clearance
sufficient. POEA shall require the recruitment or ■ Authentication
manning agency to replenish its escrow deposit. ■ Birth certificate
● Within 15 days from date of receipt of notice from ■ Medicare
the POEA, the recruitment or manning agency shall
■ Trade test
replenish the same.
■ Inoculation
■ Medical examination fees
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2. For recruitment or manning agency for overseas
employment who has not applied for employment through his
a. Service or manning fee - to cover services agency;
rendered in the recruitment documentation and f) To engage in the recruitment or placement of
placement of workers or seafarers. Paid by the workers in jobs harmful to public health or
foreign employer. morality or to the dignity of the Republic of
the Philippines;
Refund of fees g) To obstruct or attempt to obstruct inspection by
1. POEA has the power to order refunds of illegally the Secretary of Labor or by his duly authorized
collected fees. representatives;
2. This includes the refund or reimbursement of such h) To fail to file reports on the status of
fees as may have been fraudulently or otherwise employment, placement vacancies, remittance of
illegally collected, or such money, goods or services foreign exchange earnings, separation from jobs,
imposed and accepted in excess of what is licitly departures and such other matters or information
prescribed. as may be required by the Secretary of Labor.
i) To substitute or alter employment contracts
approved and verified by the Department of
Art. 33. Reports on employment status. Whenever Labor from the time of actual signing thereof by
the public interest requires, the Secretary of Labor may the parties up to and including the periods of
direct all persons or entities within the coverage of this expiration of the same without the approval of
Title to submit a report on the status of employment, the Secretary of Labor;
including job vacancies, details of job requisitions, j) To become an officer or member of the Board of
separation from jobs, wages, other terms and conditions any corporation engaged in travel agency or to be
and other employment data. engaged directly or indirectly in the management
of a travel agency; and
The DOLE always comes out with particulars of k) To withhold or deny travel documents from
employment- percentage of unemployed, deployed, applicant workers before departure for monetary
terminated, etc. it is the authority of DOLE to see to it or financial considerations other than those
that the companies or employers must give an update of authorized under this Code and its
the information of their employment status or conditions. implementing rules and regulations.
E.g: Constructions Firms Illegal recruitment are acts of individuals, holders of

Once the construction is finished, the contractor is authority, agencies that are prohibited.
mandated by DOLE to submit a notice that the
construction is finished and that the workers will be Note: Remember this Article and make a guide to
laid off. get the substance of each item.
Prohibited Practices - CFGTI HOFAEW

Art. 34. Prohibited practices. It shall be unlawful for 1. Article 34 (a) of the Labor code has two (2)
any individual, entity, licensee, or holder of authority: parts, namely:
a. The licensed holder should not charge amount
a) To charge or accept, directly or indirectly, any greater than that specified by law or the
amount greater than that specified in the schedule schedule;
of allowable fees prescribed by the Secretary of b. If the placement agency was able to lend
Labor, or to make a worker pay any amount certain amounts to the worker, its payment
greater than that actually received by him as a should not be more than the borrowed money.
loan or advance; No interest needed, unless there is an
b) To furnish or publish any false notice or agreement but limited only to 6%/ annum.
information or document in relation to
recruitment or employment; 2. Article 34 (b) prohibits the following:
c) To give any false notice, testimony, information a. The act of furnishing fake employment
or document or commit any act of documents to a worker; and
misrepresentation for the purpose of securing a b. The act of publishing false notice or
license or authority under this Code. information in relation to recruitment or
d) To induce or attempt to induce a worker already employment.
employed to quit his employment in order to offer
him to another unless the transfer is designed to 3. Give any false notice, testimony, information or
liberate the worker from oppressive terms and document or commit any act of misrepresentation.
conditions of employment;
e) To influence or to attempt to influence any person
or entity not to employ any worker
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4. Article 34 (d) - it is not necessary that the worker
was actually induced or did quit employment. A violation of rules and regulations issued by the Ministry of
mere attempt to induce the worker is sufficient. Labor, the Overseas Employment Development Board, or
a. Unless the worker’s working situation is for violation of the provisions of this and other applicable
inhuman and the purpose of the inducement is laws, General Orders and Letters of Instructions.
to liberate the worker.
5. Article 34 (e) - Non Licensees or non holders of Talks about the cancellation of license or recruitment and
authority to engage in recruitment or placement are placement agencies due to violations of the rules issued
also prohibited by this article. by DOLE.
6. Article 34 (f) - such as prostitution and sending The grounds for imposition of administrative
workers without training them. sanctions include:
1. Engaging in act/s of misrepresentation for the purpose
7. Article 34 (g) - DOLE wants to find out if the of securing a license or renewal thereof;
agency is complying with the labor standards. 2. Engaging in the recruitment or placement of workers
in jobs harmful to public health or morality or to the
8. Article 34 (h) - failure to file the required reports dignity of the Republic of the Philippines;
and whatever updates you have about your agency. 3. Charging of any fee before employment is obtained
for an applicant worker;
9. Article 34 (i) - The purpose is to protect both 4. Charging of any fee in amount exceeding the
parties. While it is true that when there is doubt on allowable rate; and
the interpretation of agreements and writings, it 5. Obstructing inspections by the DOLE
should be resolved in favor of the employee or labor,
it does not mean that the employer’s right should be Concurrent Jurisdiction to suspend or cancel a
disregarded. license
a. What is stated in the contract must be 1. DOLE Secretary; and
followed. 2. POEA Administrator
10. Article 34 (j) - Liability of the recruitment agency: It shall assume
joint and solidary liability with the employer for all
11. Article 34 (k) - relate with the provision banning claims and liabilities which may arise in connection with
travel agencies from recruitment and placement the implementation of the contract; including but not
limited to payment of wages, health and disability
compensation and repatriation.
Q and A: Solidary liability of Agency and Employer- they

are liable to the employee.
Who has the power to approve and verify a
contract under article 34 (i) of the labor code? Can a recruitment agency be sued even though
The law empowers the POEA. This is to ensure that the the principal already severed their agency
employee shall not be placed in a disadvantageous position agreement at the time the worker was injured?
and that the contract contains the minimum standards of
such employment contract set by the POEA. Yes, provided that there was no notice of the agency
agreement’s termination given to the employee. The law
A supplementary contract was entered into provides that if the agency has been entrusted for the
affording greater benefits to the employee than purpose of contracting with specified persons, its
the previous one and it was not submitted for revocation shall not prejudice the latter if they were not
approval of the POEA. Is the contract valid? given notice thereof.
Yes. There is no prohibition against stipulating in a
contract more benefits to the employee than those required If there is no notification of the severance, the
by law. Not being contrary to law, morals, good customs, placement agency will be liable until such time
public policy or public order, its validity must be that the contract ends.
sustained.
The solidary liability of the agency and the
foreign employment is until the expiration of the
employment contract.
Art. 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
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Chapter 3
licensee or non-holder of authority if after investigation it
MISCELLANEOUS PROVISIONS 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,
Art. 36. Regulatory power. The Secretary of Labor paraphernalia, properties and other implements used in
shall have the power to restrict and regulate the illegal recruitment activities and the closure of companies,
recruitment and placement activities of all agencies within establishments and entities found to be engaged in the
the coverage of this Title and is hereby authorized to issue recruitment of workers for overseas employment, without
orders and promulgate rules and regulations to carry out having been licensed or authorized to do so.
the objectives and implement the provisions of this Title.
DOLE has the regulatory power to restrict and regulate Illegal recruitment - Any recruitment activities,
the placement agencies from sending workers to countries including the prohibited practices enumerated under
which the PH has no bilateral agreement with or countries Article 34 of this Code, to be undertaken by non-
still in war/ turmoil. licensees or non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this Code.
Art. 37. Visitorial Power. The Secretary of Labor or his
duly authorized representatives may, at any time, inspect Illegal Recruitment may be done by:
the premises, books of accounts and records of any person Syndicate Large Scale
or entity covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of any Committed by a group of Committed against 3 or
provisions of this Title. 3 or more persons more persons individually
conspiring and/ or or as a group.
DOLE has the right or the visitorial power to inspect confederating with one
establishments for the compliance of the labor standards another in carrying out
and sanitary conditions. any unlawful or illegal
transaction, enterprise or
It does not mean, however, that the Sec. of labor will go scheme.
there physically, he/she may assign officers on his/her
behalf to inspect the agencies.
Can a licensee or holder of authority be held
Art. 38. Illegal recruitment. guilty of illegal recruitment?
Yes. R.A. no. 8042 provides that even a licensee or holder
1. Any recruitment activities, including the prohibited of authority may be held guilty of illegal recruitment if it
practices enumerated under Article 34 of this Code, to be commits any of the 14 acts listed in Section 6 of RA 8042.
undertaken by non-licensees or non-holders of authority, (Expanded by RA 10022)
shall be deemed illegal and punishable under Article 39 of
this Code. The Department of Labor and Employment or Two kinds of illegal recruiter:
any law enforcement officer may initiate complaints 1. Non-licensee or nonholder of authority
under this Article. a. Commits illegal recruitment and placement by
simply canvassing, enlisting, contracting
2. Illegal recruitment when committed by a syndicate or in workers; or
large scale shall be considered an offense involving b. Any of the 14 acts in Section 6 of RA 8042.
economic sabotage and shall be penalized in accordance
with Article 39 hereof. 2. Licensed recruiter - it may be charged with illegal
recruitment only when it commits any of the 14
Illegal recruitment is deemed committed by a syndicate if wrongful acts in Section 6 of RA 8042.
carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in Essential element of illegal recruitment: Deceit or
carrying out any unlawful or illegal transaction, enterprise misrepresentation. There must be a promise or offer of
or scheme defined under the first paragraph hereof. Illegal employment which gave the complainants the distinct
recruitment is deemed committed in large scale if impression that the recruiter had the power or ability to
committed against three send them for work.
(3) or more persons individually or as a group.
3. The Secretary of Labor and Employment or his duly

authorized representatives shall have the power to cause
the arrest and detention of such non-
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Illegal recruitment shall be considered as an examinations only from specifically designated
offense involving economic sabotage if any of medical clinics, institutions, entities or persons,
the following exists: except in the case of a seafarer whose medical
1. When illegal recruitment is committed by a examination cost is shouldered by the
syndicate - if it is carried out by a group of 3 or principal/shipowner.
more persons conspiring and/or confederating with 5. Impose a compulsory and exclusive arrangement
one another; or whereby an overseas filipino worker is required to
undergo training, seminar, instruction or schooling of
2. When illegal recruitment is committed on a large any kind only from specifically designated
scale - if it is committed against 3 or more persons institutions, entities or persons except for
individually or as a group. recommendatory trainings mandated by
a. This applies even if there is only 1 principals/shipowners where the latter shoulder the
accused, provided that there are 3 cost of such trainings;
or more victims. 6. For a suspended recruitment/manning agency to
engage in any kind of recruitment activity including
TN: If the elements of “large scale” or “syndicate” are the processing of pending workers’ applications; and
absent, the accused can be convicted only of “simple” 7. For a recruitment/manning agency or a foreign
illegal recruitment. principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment
In simple Ilegal Recruitment - the victim may be of the cost of insurance fees, premium or other
only one person. insurance related charges, as provided under the
compulsory worker’s insurance coverage.
Is the presentation of receipts acknowledging
payments necessary for successful Persons liable for illegal recruitment: Principals,
prosecutions of illegal recruitment charges? accomplices and accessories - in case of juridical persons,
No. Credible testimonial evidence may suffice.
the officers having control, management or direction of
the business who are responsible for the commission of
the offense and the responsible employees or agents.
Can a person liable for illegal recruitment under
the labor code be convicted for violation of estafa
When is the employee liable: When he actively and
under the revised penal code?
consciously participated in illegal recruitment.
Yes, provided the elements of the crime are present. The
elements of the crime estafa are:
Effect of a violation by a foreign
a) that the accused defrauded another by abuse of
employer/principal: It shall be automatically
confidence or by means of deceit, and
disqualified, without further proceedings, from
b) that damage or prejudice capable of pecuniary
participating and from recruiting and hiring Filipino
estimation is caused to the offended party or third
workers until it fully satisfies the judgment award.
person.
Common element between estafa and illegal May the Philippine Overseas Employment
recruitment is deceit. Administrator or the Secretary of Labor validly
issue warrants of search and seizure or arrest?
Other prohibited acts: No. Under the Constitution, only a judge may issue
1. Grant a loan to an overseas filipino worker with warrants of search and arrest. Exception to this is in cases
interest exceeding 8% per annum, which will be used of deportation of illegal and undesirable aliens, whom the
for payment of legal and allowable placement fees President or the Commissioner of Immigration may order
and make the migrant worker issue, either personally arrested, following a final order of deportation, for the
or through a guarantor or accommodation party, purpose of deportation.
postdated checks in relation to the said loan;
2. Impose a compulsory and exclusive arrangement Searches and seizures may be caused to be
whereby an overseas filipino worker is required to made either:
avail of a loan only from specifically designated 1. By virtue of a search warrant issued by a judge upon
institutions, entities or persons; a probable cause in connection with one specific
3. Refuse to condone or renegotiate a loan incurred by offense determined personally by the judge after
an overseas filipino worker after the latter’s examination under oath or affirmation of the
employment contract has been prematurely complainant and the witnesses he may produce, and
terminated through no fault of his or her own; particularly describing the place to be searched and
4. Impose a compulsory and exclusive arrangement the things to be seized.
whereby an overseas Filipino worker is required to
undergo health
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2. Without a judicial search warrant, for anything which Mandatory Periods
may be used as proof of the commission of illegal 1. Preliminary investigations shall be terminated
recruitment, under any of the following conditions: within a period of 30 days from the date of their
a. When the search is incidental to a lawful arrest filing.
but limited to the person of the suspect and the
place of arrest; 2. If the preliminary investigation is conducted by a
b. When the thing to be seized is in plain view of prosecutor and a prima facie case is
the officer; or established, It shall be filed in court within
c. When the individuals concerned knowingly 24 hours from the termination of the
consents to be searched. investigation.
3. If the preliminary investigation is conducted by a

Can the Secretary or his duty authorized
judge and a prima facie case is found to exist,
representatives order the closure of an illegal
the corresponding information shall be filed by
recruitment establishment?
the proper prosecution officer within 48
Yes. It is provided in the Rules Implementing RA 8042.
hours from the date of receipt of the
records of the case.
Anti-illegal Recruitment Programs - The POEA Prescriptive periods

shall provide (Check Omnibus Rules and Regulations 1. Illegal recruitment cases - 5 years
Implementing The Migrant Workers and Overseas 2. Illegal recruitment involving economic sabotage
Filipinos Act of 1995): - 20 years.
1. Legal assistance to victims of illegal recruitment
and related cases which are administrative or
criminal in nature; People vs. Verano
2. Prosecution of illegal recruiters; Illegal recruitment in a large scale; Estafa
3. Special operations such as surveillance of
persons and entities suspected to be engaged in Facts: Sometime in October 1987,the accused Verano,
illegal recruitment; and while at her residence at Sta.Ana,Manila, informed her
4. Information and education campaign cousin Alfonso and the latter's friends Joe and
Arturo that she was recruiting salesmen for
ARTICLE 39. REPEALED BY RA 8042, SECTION employment in Bahrain. Accused asked them to pay for
7 various expenses and fees including cost of processing of
SEC. 7. PENALTIES travel papers, cost of plane tickets, medical examination
and recruitment fees.
Complainants Alfonso,Jose and Arturo paid total
(a) Any person found guilty of illegal recruitment shall
suffer the penalty of imprisonment of not less than six installments in the amounts of P7,150,P15,000,and
(6) years and one (1) day but not more than twelve P10,000,respectively,covered by receipts issued and signed
(12) years and a fine not less than two hundred thousand by the accused. Afterwards, the accused promised that
pesos (P200,000.00) nor more than five hundred thousand they could depart for Bahrain for their promised
pesos (P500,000.00). employment.
For three times and on various dates, the complainants

(b) The penalty of life imprisonment and a fine of not less
proceeded to the Manila International Airport and waited
than five hundred thousand pesos (P500,000.00) nor more
for the accused to deliver their plane tickets,passports, and
than one million pesos (P1,000,000.00) shall be imposed
visas just before their supposed flight to Bahrain,but the
if illegal recruitment constitutes economic sabotage as
accused failed to deliver them.This prompted them to go to
defined herein.
the WPD headquarters to lodge their complaint. Despite
verbal demands from the three complainants, the accused
Provided, however, that the maximum penalty shall be
failed to return the amounts paid to her. It appeared from
imposed if the person illegally recruited is less than
the records of the POEA that the accused was not a
eighteen (18) years of age or committed by a non-licensee
licensed labor recruiter.
or non-holder of authority.
Ruling: The accused guilty beyond reasonable doubt of
the crime of illegal recruitment in large scale and
sentenced xxx
Venue: Regional Trial Court of the province or city
where the offense was committed or where the offended The Court found the accused guilty beyond reasonable
party actually resides at the time of the commission of the doubt of the crime of estafa xxx
offense.
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Is it possible that there is only 1 accused in IR on

a large scale?
Yes, as long as it is committed against 3 or more people.
This is different from IR by a syndicate wherein it must be
committed by 3 or more people against 1 person.
People vs.Español
Illegal Recruitment
Facts: Accused J. Español canvassed, enlisted,contracted

and promised employment to 14 persons, exacting a total
of P21,500 as recruitment fees, without authority or license
from the POEA.Accused introduced himself to the 14
private complainants as one who had rich and influential
relatives in California,U.S.A.The positions promised were
for a dressmaker,cook, dishwasher,driver, and housemaid,
and accused exacted payments for processing of travel
documents in amounts ranging from
P1,000-P3,000.
On the birthday of the accused, he informed the 14

applicants that a certain Atty. Dizon, who was working for
their documents, would definitely be coming and would
advise them of their departure.The lawyer never appeared.
The birthday turned out to be a grand affair, with
applicants donating pigs, dogs, goats, and some other
items. After the party, complainants became apprehensive.
On several occasions, complainants talked to the accused,

who kept promising that he could send them abroad.When
the complainants sensed that they were deceived,they
demanded the return of their money, but the accused failed
and started hiding. They chanced on him and forcibly
took him to the police station where they gave
their sworn statements. Accused's defense
was that he did not know the applicants except one, that
he had no brother or sister in California, U.S.A. and
that the house where he celebrated his birthday was
owned by one de la Pasion, who shouldered all the
expenses.
Ruling: The accused is a dangerous member of society

who feels happy and comfortable victimizing the poor,
innocent and the gullible, of their hard- earned money.
Evidence woven together proves the pattern for illegal
recruitment, hence, mere denial must necessarily
fall. xxx
People vs. Roxas

Violation of Article 32 of P.D.No.442,as amended)
Facts:Accused F.C.Roxas, doing business under the name

and style of F.C. Roxas Construction ,was a licensed
private recruitment entity(Service contractor)whose
authority was issued on February 20, 1984 and expired on
March 25, 1988. (A service contractor acts as the
employer of its recruits with
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respect
to projects it.contracted to,service abroad).
As a service contractor, it is not allowed to charge, directly

or indirectly, any fee from the workers except the
authorized documentation fee of P1,500. During the period
from January 1984 to July 1986,the accused F.C.
Construction Co. demanded and received from its
applicants, herein private complainants numbering about
22, various sums of money ranging from P1,500 to P8,500,
in excess of the limits set forth by lavny travel
documents, ,were not refunded the money paid to and
received by the accused.
The accused Roxas did not deny the receipts covering the
different sums of money paid by private complainants.He
reasoned that the amounts paid to and received by him
were for 'passporting and ticketing" of the private
complainant.
Ruling: The Court found the excuse of accused to be

highly unjustified and definitely
unconvincing.Besides,the accused has jumped bail, and
despite the issuance of a warrant of arrest, he has not been
apprehended.As a matter of fact, he was tried in absentia.
The fundamental rule that the plight of the accused is
consistent with his guilt was made applicable in his case.
Accused Roxas is guilty beyond reasonable doubt of
violation of Article
32 of P.D. No.442, as amended xxx
People vs. Remullo
For a charge of illegal recruitment to prosper, the
following elements must concur:
1. The accused was engaged in recruitment activity
defined under Art 13(b), or any prohibited
practice under Art 34 of the Labor Code
2. He or she lacks the requisite license or authority

to lawfully engage in the recruitment and
placement of workers
3. He or she committed such acts against three or

more persons, individually or as a group.
People vs. S. Angeles
To prove illegal recruitment, it must be shown that the

accused gave complainants the distinct impression that he
had the power or ability to send complainant abroad for
work such that the latter were convinced to part with
their money in order to be employed. To be engaged in the
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Title II a. Immigrants and resident aliens -
they are required to secure alien
EMPLOYMENT OF NON-RESIDENT ALIENS employment registration certificate
(AERC).
Limitation to the employment of foreigners:

Art. 40. Employment permit of non-resident
Foreigners may not be employed in certain nationalized
aliens. Any alien seeking admission to the Philippines
businesses.
for employment purposes and any domestic or foreign
employer who desires to engage an alien for employment
Anti-Dummy law prohibits employment of aliens in
in the Philippines shall obtain an employment permit from
entities that own or control a right, franchise, privilege,
the Department of Labor.
property or business whose exercise or enjoyment is
reserved by law only to Filipinos or to corporations or
The employment permit may be issued to a non- resident
associations whose capital should be at least 60%
alien or to the applicant employer after a determination of
filipino-owned. (Check the foreign investment negative
the non-availability of a person in the Philippines who is
list)
competent, able and willing at the time of application to
perform the services for which the alien is desired.
Aliens may be employed in entities engaged in
nationalized activities:
For an enterprise registered in preferred areas of
1. Where the secretary of justice specifically
investments, said employment permit may be issued upon
authorizes the employment of foreign technical
recommendation of the government agency charged with
personnel; or
the supervision of said registered enterprise.
2. Where the aliens are elected members of the
board of directors or governing body of
corporations or associations in proportion to
their allowable participation in the capital of
This provision applies to both non-resident aliens and domestic or
foreign employers seeking to employ non-resident aliens. such entities.
Provided that the 2nd and 3rd paragraph were complied with.
Omnibus Investments Code (EO no. 226) - allows
Art. 41. Prohibition against transfer of employment of foreign nationals in technical, supervisory
employment. or advisory positions.
1. After the issuance of an employment permit, the alien
shall not transfer to another job or change his employer
without prior approval of the Secretary of Labor.
2. Any non-resident alien who shall take up employment

in violation of the provision of this Title and its
implementing rules and regulations shall be punished in
accordance with the provisions of Articles 289 and 290 of
the Labor Code.
In addition, the alien worker shall be subject to

deportation after service of his sentence.
Art. 42. Submission of list. Any employer employing

non-resident foreign nationals on the effective date of this
Code shall submit a list of such nationals to the Secretary
of Labor within thirty (30) days after such date indicating
their names, citizenship, foreign and local addresses,
nature of employment and status of stay in the country.
The Secretary of Labor shall then determine if they are
entitled to an employment permit.
Employment of Aliens and residents:

1. Non-resident aliens - required to secure
employment permit.
2. Resident aliens - not required.
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General Milling Corporations vs Torres
The Secretary of labor canceled Earl Timothy Cone’s
employment permit. The court ruled that the act of the
Secretary of Labor was valid.
Article 40 of the labor code provides that an employer

seeking employment of an alien must first obtain an
employment permit from the department of labor.
Equal protection clause of the constitution cannot be

applied because Cone is a non-resident alien compared to a
resident alien who is not subject to article 40 of the labor
code.
Obligation of contract will not be impaired as well because

the labor code and its implementing rules and regulations
were in existence long before GMC and cone entered into
their contract of employment. Provisions of applicable
laws, especially those relating to matters affected with
public policy, are deemed written into contracts.
Dee C. Chuan and Sons vs Court of Industrial

Relations
CIR provided a provision that the majority of the laborers
to be employed by the petitioner should be native.
Is the petitioner entitled to challenge the
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constitutionality of the order on the ground of termination letter the following day. Her termination
denial of equal protection of the laws insofar as it prompted Galera to commence a complaint for illegal
restricts the number of aliens that may be dismissal before the labor arbiter. The labor arbiter found
employed in any business? WPP, Steedman, Webster, and Lansang liable for illegal
The petitioner is not entitled to challenge the dismissal and damages. Furthermore the labor arbiter
constitutionality of an order which does not adversely stated that Galera was not only illegally dismissed but was
affect it, on behalf of the aliens who are prejudiced also not accorded due process, saying that Galera was not
thereby. It is the prospective alien employee who may do given an opportunity by WPP to defend herself and explain
so and only when and so far as it is being, or is about to be, her side. Thus, WPP did not observe both substantive and
applied to his disadvantage. procedural due process in terminating Galera’s
employment. The labor arbiter ordered WPP to reinstate
Does the order restrain the petitioner’s right to Galera and to pay her backwages, transportation and
hire labor? housing benefits, and moral and exemplary damages,
The employer’s right to hire labor is not absolute. The among others.
legislature has the power to make regulations subject only
to the condition that they pass the reasonableness and On appeal, the NLRC reversed the labor arbiter’s ruling.
public interest test. Under C.A. No. 103, the CIR may The NLRC ruled that Galera was WPP’s Vice- President,
specify that a certain proportion of the additional laborers and therefore, a corporate officer at the time she was
to be employed should be Filipinos, if such condition is removed by the Board of Directors on 14 December 2000.
necessary or expedient for the purpose of settling disputes, The NLRC ruled that the labor arbiter had no jurisdiction
preventing further disputes, or doing justice to the parties. over the case because being a corporate officer, a case
arising from her termination is considered as an intra-
corporate dispute, which was cognizable by the Securities
and Exchange Commission under P.D. 902-A (but now by
the Regional Trial Courts designated as Commercial
Can a foreign national working in the Philippines Courts by the Supreme Court pursuant to Section 5.2 of
without the required employment permit file an RA No.8799).
illegal dismissal complaint in the NLRC?
Yes. However, she cannot be awarded her claim for The Court of Appeals reversed the NLRC. It ruled that
monetary benefits. To do so will be to sanction the Galera’s appointment by the Board of Directors of the
violation of the Philippine labor laws requiring aliens to WPP as Vice President for Media had no legal effect as
secure work permits before their employment. WPP’s by-laws provided for only one Vice- President,
which at that time was occupied. Furthermore, WPP’s by-
laws did not include a managing director as among its
WPP Marketing v. Jocelyn Galer corporate officers. The Court of Appeals ordered WPP to
Facts: Petitioner Jocelyn M. Galera is an American pay Galera backwages and separation pay, as well as
citizen, who was hired by respondent John Steedman, housing benefits, moral and exemplary damages, and
Chairman of WPP Worldwide and Chief Executive Officer attorney’s fees, among others.
of Mindshare, Co., a corporation based in Hong Kong,
China, to work in the Philippines for private respondent Issues and Ruling:
WPP Marketing Communications, Inc. (WPP), a 1. Is Galera an employee or a corporate
corporation registered and operating under the laws of officer of WPP?
Philippines. Under the employment contract, Galera would Galera is an employee of WPP. She is not a corporate
commence employment on September 1, 1999, with the officer of WPP. An examination of WPP’s by-laws
position of Managing Director of Mindshare Philippines. resulted in a finding that Galera’s appointment as a
Thus, without obtaining an alien employment permit, corporate officer (Vice-President with the operational title
Galera commenced her employment with WPP Philippines of Managing Director of Mindshare) during a special
on the said date. It was only after four months from the meeting of WPP’s Board of Directors is an appointment to
time she commenced employment that private respondent a non-existent corporate office. WPP’s by-laws provided
WPP filed before the Bureau of Immigration an for only one Vice-President. At the time of Galera’s
application for petitioner Galera to receive a working visa. appointment on December 31, 1999, WPP already had one
In the application, she was designated as Vice- President Vice- President in the person of Webster. Galera cannot be
of WPP. Petitioner alleged that she was constrained to sign said to be a director of WPP also because all five
the application in order that she could remain in the directorship positions provided in the by-laws are already
Philippines and retain her employment. occupied.
On December 14, 2000, private respondent Galera was The appellate court further justified that Galera was an
verbally informed by Steedman that her employment had employee and not a corporate officer by
been terminated. She received her
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subjecting WPP and Galera’s relationship to the four- fold employment in the Philippines shall obtain an employment
test: (a) the selection and engagement of the employee; (b) permit from the Department of Labor. Section 4, Rule
the payment of wages; (c) the power of dismissal; and (d) XIV, Book 1 of the Implementing Rules and Regulations
the employer’s power to control the employee with respect provides, among others, that if an alien enters the
to the means and methods by which the work is to be country under a non-working visa and wishes to be
accomplished. The appellate court found that Sections 1 employed thereafter, he may only be allowed to be
and 4 of the employment contract mandate where and how employed upon presentation of a duly approved
often she is to perform her work; Sections 3, 5, 6 and 7 employment permit.
show that wages she receives are completely controlled by
WPP; and Sections 10 and 11 clearly state that she is Galera cannot come to this Court with unclean hands. To
subject to the regular disciplinary procedures of WPP. grant Galera’s prayer is to sanction the violation of the
Philippine labor laws requiring aliens to secure work
2. Did the labor arbiter have jurisdiction over permits before their employment. We hold that the status
the case? quo must prevail in the present case and we leave the
The Labor Arbiter had jurisdiction over the illegal parties where they are. This ruling, however, does not bar
dismissal complaint filed by Galera. Galera being an Galera from seeking relief from other jurisdictions.
employee, the Labor Arbiter and the NLRC had
jurisdiction over her illegal dismissal complaint. Article
217 of the Labor Code vests the Labor Arbiter with the
jurisdiction to hear and decide, among others termination BOOK 2 HR DEVELOPMENT PROGRAM
disputes, involving workers, whether agricultural or non- Article 43 to 81
agricultural.
Title I
3. Was Galera illegally dismissed?
NATIONAL DEVELOPMENT PROGRAM
Yes, WPP’s dismissal of Galera lacked both substantive
and procedural due process. Chapter 1
WPP failed to prove any just or authorized cause for NATIONAL POLICIES AND ADMINISTRATIVE
Galera’s dismissal. WPP was unable to substantiate the MACHINERY FOR THEIR IMPLEMENTATION
allegations of Steedman’s December 15, 2000 letter to
Galera, (questioning her leadership and competence). Repealed by RA 7796 or TESDA 1994
Galera, on the other hand, presented documentary evidence
in the form of congratulatory letters, including one from Requires more than 3 months but not more than 6
Steedman, which contents are diametrically opposed to the months of training. The employer binds himself to
December 15, 2000 letter. Also, the law requires that the train the apprentice and in return the apprentice
employer must furnish the worker sought to be dismissed accepts the training.
with two written notices before termination of employment
can be legally effected: (1) notice which apprises the Title II
employee of the particular acts or omissions for which his
dismissal is sought; and (2) the subsequent notice which TRAINING AND EMPLOYMENT OF SPECIAL
informs the employee of the employer’s decision to WORKERS
dismiss him. Failure to comply with the requirements
taints the dismissal with illegality. WPP’s acts clearly Chapter 1
show that Galera’s dismissal did not comply with the two-
notice rule. APPRENTICES
4. Is Galera entitled to collect the award of

Article 57. Statement of Objectives. This title aims:
backwages and damages even if she did not have
1. To help meet the demand of the economy for trained
an alien employment permit when she manpower
commenced her employment in the Philippines? 2. To establish a national apprenticeship program through
the participation of employers, workers and
No, Galera could not claim the employees benefits she is government and non-government agencies
entitled under Philippine Labor Laws. The law and the 3. To establish apprenticeship standards for the protection
rules are consistent in stating that the employment permit of apprentices.
must be acquired prior to employment. Article 40 of the
Labor Code states: "Any alien seeking admission to the
Philippines for employment purposes and any domestic or Article 58. Definition of Terms. As used in this Title:
foreign employer who desires to engage an alien for a. Apprenticeship means practical training on the job
supplemented by related theoretical instruction
b. Apprentice is a worker who is covered by a written
apprenticeship agreement with an individual employer
or any of the entities
2
OLIVA
1. Employers should be engaged in a business that
recognized under this Chapter is considered a highly technical industry.
c. Apprenticeable occupation means any trade, form
of employment or occupation which requires more than 2. The job should be an apprenticeable
3 months of practical training on the job supplemented
by related theoretical instruction occupation.
d. Apprenticeship agreement is an employment
contract wherein the employer binds himself to train Apprenticeable age
the apprentice and the apprentice in turn accepts the 14 years but 15 under the IRR. The elementary rule is that
terms of training an implementing regulation cannot prevail over a
statutory provision.
Article 59. Qualifications of Apprentice. To qualify as an If the apprentice applies to another company, he/she
apprentice, a person shall: will be on probation. But if he/she applies to a sister
a. Be at least fourteen (14) years of age company he/she will no longer be in a probationary
b. Possess vocational aptitude and capacity for period.
appropriate tests
c. Possess the ability to comprehend and follow oral and
written instructions There can be no apprenticeship program if the
employer is not engaged in highly technical
Trade and industry associations may recommend to the Secretary industries and if the work is not apprenticeable.
of Labor appropriate educational requirements for different
occupations.
Article 61. Contents of Apprenticeship Agreements.
Apprenticeship agreements, including the wage rates of
Article 60. Employment of Apprentices. Only employers in apprentices, shall conform to the rules issued by the Minister of
the highly technical industries may employ apprentices and only Labor and Employment. The period of apprenticeship shall not
in apprenticeable occupations approved by the Minister of Labor exceed 6 months. Apprenticeship agreements providing for wage
and Employment. rates below the legal minimum wage, which in no case shall start
belong 75% of the applicable minimum wage, may be entered
into only in accordance with apprenticeship programs duly
Different Kinds of Workers approved by the Minister of Labor and Employment. The
1. Apprentice Ministry shall develop standard model programs of
2. Learners apprenticeship.
3. Handicapped workers
Apprenticeship - arrangement and the period when an The apprentice agreement needs DOLE’s prior approval,
upcoming worker undergoes hands-on training, more or or the apprentice becomes a regular employee.
less formal, to learn the ropes of a skilled job.
DO No. 8, Series of 1989 - the policy of the DOLE is

to:
1. Obtain the voluntary adoption of apprenticeship
programs by employers and workers to help meet the
increasing demand for skilled manpower necessary for
economic development
2. Increase worker productivity through a relevant and

effective apprenticeship program
● Under the DO, the DOLE is required to

undertake the review of trades, occupations and
jobs in all sectors of the economy to determine
apprenticeability, after which it should publish a
list.
● A certificate is required prior to the hiring of
apprentices. Article 62. Signing of Apprenticeship Agreement. Every
apprenticeship agreement shall be signed by the employer or his
Section 18 of the TESDA Act of 1994 expressly agent, or by an authorized representative of any of the recognized
empowers the TESDA to implement and administer the organizations, associations or groups, and by the apprentice.
apprenticeship program in accordance with existing laws,
An apprenticeship agreement with a minor shall be signed in his
rules and regulations.
behalf by his parent or guardian or, if the latter is not available,
by an authorized representative of the DOLE, and the same shall
Requisites for employment of apprentices be binding during its lifetime.
2
OLIVA
The applicant applied for a regular position for
2months, after that, the employer decided to ask
the employee for an apprenticeship program
good for 6months. After the program, the
employer decided not to hire the apprentice,
invoking that the law cannot compel him to do so.
The employer is incorrect. Following article 61, the

apprenticeship program must be more than 3 months but
not more than 6 months. In this case, the applicant already
worked for the employer for 2 months prior to the 6months
apprenticeship program, thus, the employee is already
considered a regular employee having worked for the
employer for 8months. There is illegal dismissal in this
case.
2
OLIVA
Every apprenticeship agreement entered into under this Title shall

be ratified by the appropriate apprenticeship committee, if any,
and a copy thereof shall be furnished both the employer and the
apprentice.
recognized apprenticeship programs shall have primary

responsibility for providing appropriate aptitude tests in the
selection of apprentices. If they do not have adequate facilities for
the purpose, the Department of Labor and Employment shall
perform the service free of charge.
Article 63. Venue of Apprenticeship Programs. Any firm, Article 69. Responsibility for Theoretical Instruction.
employer, group or association, industry, organization or civic Supplementary theoretical instruction to apprentices in cases
group wishing to organize an apprenticeship program may choose where the70.
Article program is undertaken
Voluntary in the plant
Organization ofmay be done by the
Apprenticeship
from any of the following apprenticeship schemes as the training employer. IfExemptions.
Programs; the latter isThenotorganization
prepared ofto apprenticeship
assume the
venue of apprentices: responsibility,
program shall thebe same may bea delegated
primarily voluntary toundertaking
an appropriate
by
a. Apprenticeship conducted entirely by and within the government
employers; agency.
sponsoring firm, establishment or entity
b. Apprenticeship entirely within a Department of Labor When national security or particular requirements of economic
training center or other public training institutions development so demand, the President of the Philippines may
c. Initial training in trade fundamentals in a training require compulsory training of apprentices in certain trades,
Section center or other institutions
64. Sponsoring with subsequent actual
of Apprenticeship work
Program. occupations, jobs or employment levels where shortage of trained
Any of theparticipation within
apprenticeship the sponsoring
schemes recognized firm
hereinormayentity
be manpower is deemed critical as determined by the Secretary of
undertakenduring the final stage
or sponsored by a of training.
single employer or firm or by a Labor and Employment. Appropriate rules in this connection
group or association thereof or by a civic organization. Actual shall be promulgated by the Secretary of Labor and Employment
training of apprentices may be undertaken: as the need arises; and
In the premises of the sponsoring employer in the case of Where services of foreign technicians are utilized by private
individual apprenticeship programs; companies in apprenticeable trades, said companies are required
to set up appropriate apprenticeship programs.
In the premises of one or several designated firms in the case of
programs sponsored by a group or association of employers or by
a civic organization; or
Article 71. Deductibility of Training Costs. An additional
In a Department of Labor and Employment training center or deduction from taxable income of one-half (1/2) of the value of
other public training institution. labor training expenses incurred for developing the productivity
and efficiency of apprentices shall be granted to the person or
enterprise organizing an apprenticeship program: Provided, That
Article 65. Investigation of Violation of Apprenticeship There
such
Article is 72.
programno isemployer-employee
duly recognized
Apprentices by therelationship
Without Department
Compensation.ofbetween
Labor The
and
Agreement.
Article Upontocomplaint
66. Appeal of any
the Secretary of interested
Labor andperson or upon
Employment. students
Employment:
Secretary of onLabor oneandhand,
Provided, andThatschools,
further,
Employment such
may colleges
deduction
authorize the shallornot
hiring of
The decision
its own of the authorized
initiative, agency agency
the appropriate of the Department of Labor and
of the Department of universities,
exceed ten (10%)
apprentices on the
without other
percent where
of direct
compensation laborthere
whose wage:isand
training onwritten
Provided,
the job is
Employment
Labor and may be appealedorbyits
Employment anyauthorized
aggrieved person to the Secretary
representative shall agreement
finally,
requiredThat between
by the
the schoolthem
person under which
ororenterprise
training who thecurriculum
wishes
program former
to availagree
himself
or as
of Labor andanyEmployment
violation ofwithin five (5) days agreement
from receipt of the
investigate an apprenticeship pursuant
decision. The decision of the Secretary of Labor and Employment shall toor itself offor
work
requisite forthis incentive
the latterorshould
graduation inboard pay
exchangehis apprentices the minimum
for the privilege
examination. to
to such rules and regulations as may be prescribed by the wage.free of charge, provided the students are given real
study
be final and executory.
Secretary of Labor and Employment. opportunities, including such facilities as may be
reasonable and necessary to finish their chosen courses
under such agreement.
Article 67. Exhaustion of Administrative Remedies. No

person shall institute any action for the enforcement of any
apprenticeship agreement or damages for breach of any such
agreement, unless he has exhausted all available administrative
remedies.
Article 68. Aptitude Testing of Applicants. Consonant

with the minimum qualifications of apprentice-applicants
required under this Chapter, employers or entities with duly
3
OLIVA
Chapter 2
Chapter 3
LEARNERS
HANDICAPPED WORKERS
ARTICLE 73. LEARNERS DEFINED

Persons hired as trainees in semi-skilled and other ARTICLE 78. DEFINITION
industrial occupations which are non-apprenticeable and Those earning capacity is impaired by age or physical
which may be learned through practical training on the or mental deficiency or injury.
job in a relatively short period of time not exceeding 3
months. When are they employed?
1. Experienced workers not available;
ARTICLE 74. WHEN LEARNERS MAY BE HIRED 2. To avoid curtailment of employment
d. Experienced workers not available; opportunities
a. To avoid curtailment of employment 3. To avoid unfair competition; or
opportunities 4. Impair lower working standards.
b. To avoid unfair competition; or
c. Impair lower working standards. Article 79
Superseded by RA 7277
Article 75. Learnership Agreement - NPWC
1. Names and address of learners; ARTICLE 80. EMPLOYMENT AGREEMENT -
2. Period of not more than 3 months; NWPW
3. Wage of 75% of the minimum wage; and 1. Names and addresses;
4. Commitment of employer to make learners 2. Rate to be paid - not less than 75% of the
regular employees. applicable minimum wage;
3. Period; and
If the employer terminates the training before the end 4. Work to be performed.
of the stipulated period and without the fault of the
employee, the latter will be deemed a regular employee. Employment agreement is subject to the Secretary.
ARTICLE 76. LEARNERS IN PIECEWORK ARTICLE 81. ELIGIBILITY FOR

The learner is paid based on his/her work done. APPRENTICESHIP
If the handicap does not effectively impede the
ARTICLE 77. PENALTY CLAUSE performance of the job.
General penalty clause in the Labor Code.
Apprentice v. Learners
Apprentice Learners
Industries Technical Industrial
Skills Highly semi-skilled

technical
Work Apprenticeable Non-

work apprenticeable
work
Period More than 3 Not more than 3

months but not months
more than 6
months
Commitment No commitment There is

of employers to make as a commitment of
regular employer to make
employee learner a regular
employee

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Labor 1 by Azucena (2016) | UCSOL ALVEZ | CANILLO | LAMBAYAN |

Relation of Labor Law to other Laws

ARTICLE 3. DECLARATION OF BASIC POLICY

Article 8. Transfer of lands to tenant-workers. Being a

vital part of the labor force, tenant-farmers on private agricultural BOOK I

Article 11. Implementing agency. The Department of Title I

ARTICLE 13. DEFINITIONS

Worker Any member of the labor force.

employment to 2 or more persons People v. Goce

License A document authorizing a

Constitutes the great Realignment of POEA Jurisdiction (modified by

EXC: Direct hiring made by members of diplomatic

E.g: Constructions Firms Illegal recruitment are acts of individuals, holders of

Prohibited Practices - CFGTI HOFAEW

Q and A: Solidary liability of Agency and Employer- they

3. The Secretary of Labor and Employment or his duly

3. If the preliminary investigation is conducted by a

Anti-illegal Recruitment Programs - The POEA Prescriptive periods

For three times and on various dates, the complainants

Is it possible that there is only 1 accused in IR on

Facts: Accused J. Español canvassed, enlisted,contracted

On the birthday of the accused, he informed the 14

On several occasions, complainants talked to the accused,

Ruling: The accused is a dangerous member of society

People vs. Roxas

Facts:Accused F.C.Roxas, doing business under the name

to projects it.contracted to,service abroad).

As a service contractor, it is not allowed to charge, directly

Ruling: The Court found the excuse of accused to be

2. He or she lacks the requisite license or authority

3. He or she committed such acts against three or

People vs. S. Angeles

To prove illegal recruitment, it must be shown that the

Limitation to the employment of foreigners:

2. Any non-resident alien who shall take up employment

In addition, the alien worker shall be subject to

Art. 42. Submission of list. Any employer employing

Employment of Aliens and residents:

Article 40 of the labor code provides that an employer

Equal protection clause of the constitution cannot be

Obligation of contract will not be impaired as well because

Dee C. Chuan and Sons vs Court of Industrial

Is the petitioner entitled to challenge the

4. Is Galera entitled to collect the award of

DO No. 8, Series of 1989 - the policy of the DOLE is

2. Increase worker productivity through a relevant and

● Under the DO, the DOLE is required to

The employer is incorrect. Following article 61, the

Every apprenticeship agreement entered into under this Title shall

recognized apprenticeship programs shall have primary

Article 67. Exhaustion of Administrative Remedies. No

Article 68. Aptitude Testing of Applicants. Consonant

ARTICLE 73. LEARNERS DEFINED

ARTICLE 76. LEARNERS IN PIECEWORK ARTICLE 81. ELIGIBILITY FOR

Industries Technical Industrial

Skills Highly semi-skilled

Work Apprenticeable Non-

Period More than 3 Not more than 3

Commitment No commitment There is

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