Memorandum Circular No. 08
Series of 2002
FOR : All Concerned
SUBJECT : Guidelines on the Renewal of Existing Land-Based License Uncer
the 2002 POEA Rules and Regulations
Pursuant
to Section 1 (b), Rule I, Part II, Section 4, Rule II, Part II and
Section 3, Part X of the 2002 POEA Rules and Regulations Governing the
Recruitment and Employment of Land-based Overseas Workers, the
following guidelines shall govern the renewal of existing license to
operate a landbased agency.
I. MINIMUM CAPITAL REQUIREMENT
A minimum capitalization of Two Million Pesos (P 2,000,000.00) in case
of a single proprietorship or partnership and a minimum paid-up capital
of Two Million Pesos (P2, 000,000.00) in case of a corporation.
Agencies
with existing license shall increase their Capitalization or paid-up
capital, as the case may be, to Two Million Pesos (2,000,000.00) within
four (4) years from effect effectivity of the 2002 POEA Rules and
Regulations, at the rate of Two Hundred Fifty Thousand Pesos (P250,
000.00) every year.
II. ESCROW DEPOSIT
Agencies with existing license shall likewise increase their escrow
deposit to One Million Pesos (P1, 000,000.00) within four (4) years
from effectively of the 2002 POEA Rules and Regulations, at the rate of
P175, 000,000.00 every year.
The Administration shall cause the transfer of the P100.000.00 cash bond to the agency's escrow account.
To
facilitate monitoring of compliance mandated under Section 17, Rule II,
Part II it of the new rules, all concerned agencies shall submit proof
of compliance with the first yearly increase of capital and escrow
deposit on or before the end of May of each succeeding year until fully
complied with.
III. REQUIREMENTS FOR RENEWAL
An agency shall be issued a Certificate of Renewal of License valid for
four(4) years upon submission of the following documents on or before
its expiration;
1. Duly accomplished POEA-LRO renewal application form
2. Surety bond for P 100,000.00 duty renewed or revalidated for four years together with official receipt;
3.
Renewal of existing escrow deposit agreement reflecting the increased
amount of P175, 000.00 for the first year and the accumulated yearly
increase thereafter until the amount of P1, 000,000.00 is fully covered
by May 2006 with a commercial bank together with bank certification of
escrow deposit.
All
agencies renewing their license with expiration dates prior to May 2003
are not yet required to submit an Escrow Agreement, which already
includes the required yearly increase of PI75,000.00. All agencies
renewing their license with expiration dates after May 2003 shall be
required to submit an Escrow Agreement already reflecting the required
yearly increase in escrow deposit.
4. Certification from the POEA Accounting Division that cash bond is still intact.
5.
Audited financial statements for the past two years with verified
corporate tax returns or individual income tax returns of the single
proprietor or partners.
In
case the equity of the agency is below the minimum capitalization
requirement, it shall be given thirty (30) days from release of the
renewed license to submit proof(s) of capital infusion such as SEC
certification of such infusion or bank certification corresponding to
the amount infused and treasurer's affidavit duly received by the SEC
in the case of a corporation or partnership or DTI certification on
increase in owner's capital with bank certification relative thereto in
each of single proprietorship, otherwise the license shall be suspended
until it has complied with the said requirement.
6.
Valid NB! Clearance of all the Directors, officers and employees
involved in recruitment and placement, in case of directors or partners
with foreign nationality, the clearance from their country of origin
may be submitted in place of the NBI clearance.
Clearance
from the POEA Anti-Illegal Recruitment Branch for all the Directors,
officers and employees involved in recruitment and placement.
7.Duly notarized undertaking stating that the applicant for renewal:
a. shall select only medically and technically qualified recruits;
b.
shall assume full and complete responsibility for all
claims and liabilities which may arise in
connection with the use of the license;
c.
shall assume joint and solidary liability with the employer for all
claims and liabilities which may arise in connection with their
implementation of the contract, including but not limited
to payment of wages death and disability compensation and repatriation.
d.
shall guarantee compliance with the existing labor and social
legislation of the Philippines and of the country employment
of the recruited workers;
e. shall assume full and complete responsibility for all acts of its
officials, employees and representatives done in connection
with recruitment and placement;
f. shall negotiate for the best terms and conditions of employment;
g.
shall disclose the full terms and conditions of employment to the
applicant workers pursuant to the Full Disclosure Policy.
h.
shall provide orientation on recruitment procedures, terms and
conditions and other relevant information to its workers and provide
facilities therefore; and
i.
shall repatriate the
deployed workers and his persona!
Belongings when the need arises;
The
foregoing affidavit of undertaking shall be required only for the first
renewal after 2002 POEA Rules and Regulations became effective to
replace existing verified undertaking in view of additional new
provisions/undertakings.
8. Bank certificate of cash deposit of at least P500, 000.00 with an authority to examine such deposit.
9.
In the case of a partnership or corporation, notarized undertaking of
the partners, directors and officers, that they will be jointly and
severally liable with the partnership or corporation, as the case may
be, over claims arising out of employer-employee relationship
The notarized undertaking shall be required every time there is a change of partners, officers and directors.
10.
Notarized undertaking to increase office space to at least 100 sq,
meters within the four year validity period of the license,
11. Other requirements as may be imposed by the Administration
IV. ACTION UPON THE APPLICATION
1.
Applications for renewal of license filed on or before its expiration
shall be pre-evaluated to determine completion of requirements. Within
24 hours from receipt of the application, the agency shall be informed
of deficiencies and lacking requirements noted. Only applications with
complete requirements shall be processed and acted upon.
2.
Within forty-eight (48) hours from receipt of the complete application,
the Administration shall determine whether to deny or grant the
application.
3.
An application for renewal of license of an agency that failed to fully
comply with renewal requirements within thirty {30} days from its
expiration, may still be allowed subject to payment of penalty fine and
full compliance with requirements within thirty (30) days from notice,
otherwise, it shall be recommended for denial and determine without
prejudice to an application for a new license.
V. LATE FILING OF APPLICATION FOR RENEWAL
An agency, which failed to file an application for renewal before the
expiration of its license may still be allowed to renew within thirty
(30) days from expiry thereof subject to the payment of a fine of
PI0,000.00 and full compliance with requirements within the same
extended period in accordance with IV-3 above.
Agencies
that failed to file an application for renewal of license within
thirty (30) days from its expiration shall be deemed determine
from the roster of licensed agencies, without prejudice to an
application for a new
License.
Vl. TRANSITORY APPLICATIONS OF THE NEW RULES
All applications for renewal of license which expired on or before May
23, 2002 and which were filed with complete requirements under the old
rules on or before said date shall be processed under the old rules.
All
applications for renewal of licenses with expiration dates after May
23, 2002, shall be processed under the new rules subject to the
submission of affidavit of undertakings to comply with
capitalization/paid-up capita! and escrow deposit or proof of
compliance not later than May 2003.
VI. PENALTY PROVISIONS
In case of failure of the agency to submit proof of compliance with the
yearly required increase in capitalization/paid-up capital, escrow
deposit, space requirement and capital infusion shall be a ground for
documentary suspension of license until compliance or denial of the
application for renewal.
All issuances inconsistent herewith are deemed modified or repeated accordingly.
This Circular shall take effect immediately.
For strict compliance.
ROSALINDA DIMAPILIS-BALDOZ
Administrator
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