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B. REGULATION OF RECRUITMENT AND PLACEMENT (P2,000,000.

00) at the rate of Two Hundred Fifty Thousand


ACTIVITIES Pesos (P250,000.00) every year.

1. Who are prohibited to recruit (Bk II, Rule I, Sec. 2, c. Those not otherwise disqualified by law or other
POEA Rules) government regulations to engage in the recruitment and
placement of workers for overseas employment.
Section 2. Disqualification. The following are not qualified
to engage in the business of recruitment and placement of 4. Non-transferability of license
Filipino workers overseas:
5. Bonds (Sec. 7, RA 10022)
a. Travel agencies and sales agencies of airline companies;
Section 7. Section 10 of Republic Act No. 8042, as amended, is
b. Officers or members of the Board of any corporation or hereby amended to read as follows:
members in a partnership engaged in the business of a
travel agency; "SEC. 10. Money Claims. - Notwithstanding any provision of law
to the contrary, the Labor Arbiters of the National Labor
c. Corporations and partnerships, when any of its officers, Relations Commission (NLRC) shall have the original and
members of the board or partners, is also an officer, exclusive jurisdiction to hear and decide, within ninety (90)
member of the board or partner of a corporation or calendar days after the filing of the complaint, the claims arising
partnership engaged in the business of a travel agency; out of an employer-employee relationship or by virtue of any law
or contract involving Filipino workers for overseas deployment
d. Persons, partnerships or corporations which have including claims for actual, moral, exemplary and other forms of
derogatory records, such as but not limited to the following: damage. Consistent with this mandate, the NLRC shall endeavor
to update and keep abreast with the developments in the global
1) Those certified to have derogatory record or services industry.
information by the National Bureau of Investigation or
by the Anti-Illegal Recruitment Branch of the POEA; "The liability of the principal/employer and the
recruitment/placement agency for any and all claims under this
2) Those against whom probable cause or prima facie section shall be joint and several. This provision shall be
finding of guilt for illegal recruitment or other related incorporated in the contract for overseas employment and shall
cases exists; be a condition precedent for its approval. The performance
bond to be filed by the recruitment/placement agency, as
3) Those convicted for illegal recruitment or other related provided by law, shall be answerable for all money
cases and/or crimes involving moral turpitude; and claims or damages that may be awarded to the workers.
If the recruitment/placement agency is a juridical being, the
4) Those agencies whose licenses have been previously corporate officers and directors and partners as the case may
revoked or cancelled by the Administration for violation be, shall themselves be jointly and solidarily liable with the
of RA 8042, PD 442 as amended and their corporation or partnership for the aforesaid claims and
implementing rules and regulations as well as these damages.
rules and regulations.
"Such liabilities shall continue during the entire period or
All applicants for issuance/renewal of license shall be duration of the employment contract and shall not be affected
required to submit clearances from the National Bureau by any substitution, amendment or modification made locally or
of Investigation and Anti-Illegal Recruitment Branch, in a foreign country of the said contract.
POEA, including clearances for their respective officers
and employees. "Any compromise/amicable settlement or voluntary agreement
on money claims inclusive of damages under this section shall
e. Any official or employee of the DOLE, POEA, OWWA, DFA be paid within thirty (30) days from approval of the settlement
and other government agencies directly involved in the by the appropriate authority.
implementation of R.A. 8042, otherwise known as Migrant
Workers and Overseas Filipino Act of 1995 and/or any of "In case of termination of overseas employment without just,
his/her relatives within the fourth civil degree of valid or authorized cause as defined by law or contract, or any
consanguinity or affinity; and unauthorized deductions from the migrant worker's salary, the
worker shall be entitled to the full reimbursement if his
f. Persons or partners, officers and Directors of corporations placement fee and the deductions made with interest at twelve
whose licenses have been previously cancelled or revoked percent (12%) per annum, plus his salaries for the unexpired
for violation of recruitment laws. portion of his employment contract or for three (3) months for
every year of the unexpired term, whichever is less.
2. Citizenship Requirement
"In case of a final and executory judgement against a foreign
3. Capitalization (Bk II, Rule I, Sec. 1, POEA Rules) employer/principal, it shall be automatically disqualified, without
further proceedings, from participating in the Philippine
Section 1. Qualifications. Only those who possess the Overseas Employment Program and from recruiting and hiring
following qualifications may be permitted to engage in the Filipino workers until and unless it fully satisfies the judgement
business of recruitment and placement of Filipino workers: award.

a. Filipino citizens, partnerships or corporations at least "Noncompliance with the mandatory periods for resolutions of
seventy five percent (75%) of the authorized capital stock case provided under this section shall subject the responsible
of which is owned and controlled by Filipino citizens; officials to any or all of the following penalties:

b. A minimum capitalization of Two Million Pesos "(a) The salary of any such official who fails to render his
(P2,000,000.00) in case of a single proprietorship or decision or resolution within the prescribed period shall be, or
partnership and a minimum paid-up capital of Two Million caused to be, withheld until the said official complies therewith;
Pesos (P2,000,000.00) in case of a corporation; Provided
that those with existing licenses shall, within four years "(b) Suspension for not more than ninety (90) days; or
from effectivity hereof, increase their capitalization or paid
up capital, as the case may be, to Two Million Pesos
"(c) Dismissal from the service with disqualification to hold any the following acts, whether committed by any person, whether a
appointive public office for five (5) years. non-licensee, non-holder, licensee or holder of authority:

"Provided, however, That the penalties herein provided shall be "(a) To charge or accept directly or indirectly any amount
without prejudice to any liability which any such official may greater than that specified in the schedule of allowable fees
have incured under other existing laws or rules and regulations prescribed by the Secretary of Labor and Employment, or to
as a consequence of violating the provisions of this paragraph." make a worker pay or acknowledge any amount greater than
that actually received by him as a loan or advance;
6. Fees paid by workers (Bk II, Rule V, POEA Rules)
"(b) To furnish or publish any false notice or information or
RULE V document in relation to recruitment or employment;
Fees, Costs and Contributions
"(c) To give any false notice, testimony, information or document
Section 1. Service Fee. Agencies shall charge from their or commit any act of misrepresentation for the purpose of
principals a service fee to cover services rendered in the securing a license or authority under the Labor Code, or for the
recruitment, documentation and placement of workers. The purpose of documenting hired workers with the POEA, which
Administration shall provide incentives to agencies and include the act of reprocessing workers through a job order that
employers who are able to comply with this rule. pertains to nonexistent work, work different from the actual
overseas work, or work with a different employer whether
Section 2. Fees and Costs Chargeable to Principals. registered or not with the POEA;
Unless otherwise provided, the principal shall be responsible for
the payment of the following: "(d) To include or attempt to induce a worker already employed
a. visa fee; to quit his employment in order to offer him another unless the
b. airfare; transfer is designed to liberate a worker from oppressive terms
c. POEA processing fee; and and conditions of employment;
d. OWWA membership fee.
"(e) To influence or attempt to influence any person or entity not
Section 3. Fees/Costs Chargeable to the Workers. to employ any worker who has not applied for employment
Except where the prevailing system in the country where the through his agency or who has formed, joined or supported, or
worker is to be deployed, either by law, policy or practice, do not has contacted or is supported by any union or workers'
allow the charging or collection of placement and recruitment organization;
fee, a land-based agency may charge and collect from its hired
workers a placement fee in an amount equivalent to one month "(f) To engage in the recruitment or placement of workers in jobs
salary, exclusive of documentation costs. harmful to public health or morality or to the dignity of the
Documentation costs to be paid by the worker shall include, Republic of the Philippines;
but not limited to, expenses for the following:
a. Passport "(h) To fail to submit reports on the status of employment,
b. NBI/Police/Barangay Clearance placement vacancies, remittance of foreign exchange earnings,
c. Authentication separation from jobs, departures and such other matters or
d. Birth Certificate information as may be required by the Secretary of Labor and
e. Medicare Employment;
f. Trade Test, if necessary
g. Inoculation, when required by host country "(i) To substitute or alter to the prejudice of the worker,
h. Medical Examination fees employment contracts approved and verified by the Department
of Labor and Employment from the time of actual signing
In the event that the recruitment agency agrees to perform thereof by the parties up to and including the period of the
documentation services, the worker shall pay only the actual expiration of the same without the approval of the Department
cost of the document which shall be covered by official receipts. of Labor and Employment;

The above-mentioned placement and documentation costs "(j) For an officer or agent of a recruitment or placement agency
are the only authorized payments that may be collected from a to become an officer or member of the Board of any corporation
hired worker. No other charges in whatever form, manner or engaged in travel agency or to be engaged directly or indirectly
purpose, shall be imposed on and be paid by the worker without in the management of travel agency;
prior approval of the POEA.
"(k) To withhold or deny travel documents from applicant
Such fees shall be collected from a hired worker only after workers before departure for monetary or financial
he has obtained employment through the facilities of the considerations, or for any other reasons, other than those
recruitment agency. authorized under the Labor Code and its implementing rules and
regulations;
7. Prohibited Practices, liability (Secs. 6 and 15, RA
8042) "(l) Failure to actually deploy a contracted worker without valid
reason as determined by the Department of Labor and
Section 5. Section 6 of Republic Act No. 8042, as amended, Employment;
is hereby amended to read as follows:
"(m) Failure to reimburse expenses incurred by the worker in
"SEC. 6. Definition. - For purposes of this Act, illegal recruitment connection with his documentation and processing for purposes
shall mean any act of canvassing, enlisting, contracting, of deployment, in cases where the deployment does not actually
transporting, utilizing, hiring, or procuring workers and includes take place without the worker's fault. Illegal recruitment when
referring, contract services, promising or advertising for committed by a syndicate or in large scale shall be considered
employment abroad, whether for profit or not, when undertaken an offense involving economic sabotage; and
by non-licensee or non-holder of authority contemplated under
Article 13(f) of Presidential Decree No. 442, as amended, "(n) To allow a non-Filipino citizen to head or manage a licensed
otherwise known as the Labor Code of the Philippines: Provided, recruitment/manning agency.
That any such non-licensee or non-holder who, in any manner,
offers or promises for a fee employment abroad to two or more "Illegal recruitment is deemed committed by a syndicate if
persons shall be deemed so engaged. It shall likewise include carried out by a group of three (3) or more persons conspiring or
confederating with one another. It is deemed committed in large
scale if committed against three (3) or more persons individually
or as a group. Section 15. Repatriation of workers; emergency
repatriation fund. - The repatriation of the worker and the
"In addition to the acts enumerated above, it shall also be transport of his personal belongings shall be the primary
unlawful for any person or entity to commit the following responsibility of the agency which recruited or deployed the
prohibited acts: worker overseas. All costs attendant to repatriation shall be
borne by or charged to the agency concerned and/or its
"(1) Grant a loan to an overseas Filipino worker with interest principal. Likewise, the repatriation of remains and transport of
exceeding eight percent (8%) per annum, which will be used for the personal belongings of a deceased worker and all costs
payment of legal and allowable placement fees and make the attendant thereto shall be borne by the principal and/or local
migrant worker issue, either personally or through a guarantor agency. However, in cases where the termination of
or accommodation party, postdated checks in relation to the employment is due solely to the fault of the worker, the
said loan; principal/employer or agency shall not in any manner be
responsible for the repatriation of the former and/or his
"(2) Impose a compulsory and exclusive arrangement whereby belongings.
an overseas Filipino worker is required to avail of a loan only
from specifically designated institutions, entities or persons; The Overseas Workers Welfare Administration (OWWA), in
coordination with appropriate international agencies, shall
"(3) Refuse to condone or renegotiate a loan incurred by an undertake the repatriation of workers in cases of war, epidemic,
overseas Filipino worker after the latter's employment contract disasters or calamities, natural or man-made, and other similar
has been prematurely terminated through no fault of his or her events without prejudice to reimbursement by the responsible
own; principal or agency. However, in cases where the principal or
recruitment agency cannot be identified, all costs attendant to
"(4) Impose a compulsory and exclusive arrangement whereby repatriation shall be borne by the OWWA.
an overseas Filipino worker is required to undergo health
examinations only from specifically designated medical clinics, For this purposes, there is hereby created and established
institutions, entities or persons, except in the case of a seafarer an emergency repatriation fund under the administration control
whose medical examination cost is shouldered by the and supervision of the OWWA, initially to consist of one hundred
principal/shipowner; million pesos (P100,000,000.00), inclusive of outstanding
balances.
"(5) Impose a compulsory and exclusive arrangement whereby
an overseas Filipino worker is required to undergo training, 8. Suspension and/or cancellation of license or authority
seminar, instruction or schooling of any kind only from
specifically designated institutions, entities or persons, except 9. Illegal recruitment local
fpr recommendatory trainings mandated by
principals/shipowners where the latter shoulder the cost of such 10. Illegal recruitment overseas (Secs. 6, 7 & 12, RA
trainings; 8042, RA 10022)

"(6) For a suspended recruitment/manning agency to engage in Sec 6. RA 8042 as amended by RA 10022 (supra)
any kind of recruitment activity including the processing of
pending workers' applications; and Section 6. Section 7 of Republic Act No. 8042, as amended,
is hereby amended to read as follows:
"(7) For a recruitment/manning agency or a foreign
principal/employer to pass on the overseas Filipino worker or "SEC. 7. Penalties. -
deduct from his or her salary the payment of the cost of
insurance fees, premium or other insurance related charges, as "(a) Any person found guilty of illegal recruitment shall suffer
provided under the compulsory worker's insurance coverage. the penalty of imprisonment of not less than twelve (12) years
and one (1) day but not more than twenty (20) years and a fine
"The persons criminally liable for the above offenses are the of not less than One million pesos (P1,000,000.00) nor more
principals, accomplices and accessories. In case of juridical than Two million pesos (P2,000,000.00).
persons, the officers having ownership, control, management or
direction of their business who are responsible for the "(b) The penalty of life imprisonment and a fine of not less than
commission of the offense and the responsible Two million pesos (P2,000,000.00) nor more than Five million
employees/agents thereof shall be liable. pesos (P5,000,000.00) shall be imposed if illegal recruitment
constitutes economic sabotage as defined therein.
"In the filing of cases for illegal recruitment or any of the
prohibited acts under this section, the Secretary of Labor and "Provided, however, That the maximum penalty shall be
Employment, the POEA Administrator or their duly authorized imposed if the person illegally recruited is less than eighteen
representatives, or any aggrieved person may initiate the (18) years of age or committed by a non-licensee or non-holder
corresponding criminal action with the appropriate office. For of authority.
this purpose, the affidavits and testimonies of operatives or
personnel from the Department of Labor and Employment, POEA "(c) Any person found guilty of any of the prohibited acts shall
and other law enforcement agencies who witnessed the acts suffer the penalty of imprisonment of not less than six (6) years
constituting the offense shall be sufficient to prosecute the and one (1) day but not more than twelve (12) years and a fine
accused. of not less than Five hundred thousand pesos (P500,000.00) nor
more than One million pesos (P1,000,000.00).
"In the prosecution of offenses punishable under this section,
the public prosecutors of the Department of Justice shall "If the offender is an alien, he or she shall, in addition to the
collaborate with the anti-illegal recruitment branch of the POEA penalties herein prescribed, be deported without further
and, in certain cases, allow the POEA lawyers to take the lead in proceedings.
the prosecution. The POEA lawyers who act as prosecutors in
such cases shall be entitled to receive additional allowances as "In every case, conviction shall cause and carry the automatic
may be determined by the POEA Administrator. revocation of the license or registration of the
recruitment/manning agency, lending institutions, training
"The filing of an offense punishable under this Act shall be school or medical clinic."
without prejudice to the filing of cases punishable under other
existing laws, rules or regulations."
Section 12. Prescriptive periods. - Illegal recruitment cases
under this Act shall prescribe in five (5) years: Provided, C. EMPLOYMENT OF NON-RESIDENT ALIENS
however, That illegal recruitment cases involving economic
sabotage as defined herein shall prescribe in twenty (20) years.

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