BOOK ONE
Pre-Employment
RULE I
Definitions
of Terms
SECTION 1. Definition
of terms. —
(a) "Bureau"
means the Bureau of Employment Services.cralaw:red
(b) "NSB" means
the National Seamen Board.cralaw:red
(c) "OEDB" means
the Overseas Employment Development Board.cralaw:red
(d) "Private
recruitment entity" means any person or entity engaged in the
recruitment
and placement of workers locally or overseas, without charging,
directly
or indirectly, any fee against the worker.cralaw:red
(e) "Private
employment agency" means any person or entity engaged in the
recruitment
and placement of workers for a fee which is charged directly against
the
workers or employers, or both.cralaw:red
(f) "Authority"
means a document issued by the Secretary of Labor and Employment
authorizing
a person or association to engage in recruitment and placement
activities
as a private recruitment entity.cralaw:red
(g) "License"
means a document issued by the Secretary of Labor and Employment
authorizing
a person or entity to operate a private employment agency.cralaw:red
(h) "Employment
permit" means the authority issued by the Secretary of Labor and
Employment
to a non-resident alien to work in the Philippines or to an employer
engaged
in business in the Philippines to employ such alien.cralaw:red
(i) "Beneficiary"
means a person designated by a contract worker or seaman employed
overseas
to receive his monthly remittance.cralaw:red
(j) "Non-resident
alien" means any alien already in the Philippines or seeking admission
to the Philippines to obtain employment in any public or private
enterprise.cralaw:red
(k) "Seaman"
means any person employed in maritime navigation.cralaw:red
(l) "Understudy"
means any qualified Filipino citizen designated by a local employer to
be trained by a foreign national allowed to work in the country by
virtue
of an employment permit granted to him by the Secretary of Labor and
Employment
under an approved understudy training program.cralaw:red
(m) "Recruitment
and placement" refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers and includes
referrals,
contract services, promising or advertising employment locally or
abroad,
whether for profit or not: Provided, That any person or entity
which
in any manner, offers or promises employment for a fee to two or more
persons
shall be deemed engaged in recruitment and placement.cralaw:red
(n) "Foreign
exchange earnings" means the earnings abroad of contract workers and
seamen
or their recruiters or local employers or agents in terms of US dollars
or any other internationally acceptable currency.cralaw:red
(o) "Remittance"
means the amount of the foreign exchange earnings remitted by a
contract
worker or seaman to any beneficiary in the Philippines through the
Philippine
banking system.cralaw:red
(p) "Placement
fees" means the amount charged by a private employment agency from an
applicant
worker for its services in the recruitment and placement of said worker.cralaw:red
(q) "Mobilization
fee" means the amount charged by a licensee or authority holder from
its
foreign employer-principal/partner to cover costs of recruitment,
processing
and documentation of its recruits for overseas employment.cralaw:red
(r) "Service
fee" means the amount charged by a licensee or authority holder from
its
foreign employer-principal/partner as payment for actual services
rendered
in relation to the recruitment and employment of workers for said
principal/partner.cralaw:red
(s) Administration.
— means the Philippine Overseas Employment Administration.cralaw:red
(u) Administrator.
— means a private employment or a manning agency as herein defined.cralaw:red
(v) Code. —
means the Labor
Code of the Philippines, as amended.cralaw:red
(w) Contracting
partner. — refers to a foreign party to any service agreement or
project
contract entered into by a service contractor or construction
contractor.cralaw:red
(x) Contract
Worker. — means any person working or who has worked overseas under a
valid
employment contract and shall include seamen.cralaw:red
(y) Directorate.
— means the executive body of the Administration composed of its
administrators
and Directors.cralaw:red
(z) Director
LRO. — refers to the Director of the Licensing and Regulation Office.cralaw:red
(aa) Director
MPDO. — refers to the Director of the Market Development and Placement
Office.cralaw:red
(bb) Director
WAAO. — refers to the Director of the Worker's Assistance and
Adjudication
Office.cralaw:red
(cc) Employer.
— refers to any person, partnership or corporation, whether local or
foreign
directly engaging the services of the Filipino workers overseas.cralaw:red
(dd) Entity.
— means a private recruitment entity as herein defined.cralaw:red
(ee) Governing
Board. — is the policy making body of the Administration.cralaw:red
(ff) Manning
Agency. — refers to any person or entity duly licensed by the Secretary
to recruit seamen for vessels plying international waters and for
related
maritime activities.cralaw:red
(gg) Name Hire.
— is a worker who is able to secure employment overseas on his own
without
the assistance or participation of any agency or entity.cralaw:red
(hh) Non-licensee
or Non-holder of Authority. — refers to any person, partnership or
corporation
which has not been issued a valid license or authority, has been
suspended,
revoked or cancelled by the Administrator or Secretary.cralaw:red
(ii) One-Stop
Processing Center. — refers to an inter-agency servicing body designed
to facilitate the employment and subsequent deployment of contract
workers
for work overseas.cralaw:red
(jj) Overseas
employment. — means employment of a worker outside the Philippines
including
employment on board vessels plying international waters, covered by a
valid
employment contract.cralaw:red
(kk) Principal.
— refers to any foreign person, partnership or corporation hiring
Filipino
workers through an agency.cralaw:red
(ll) Regional
Director. — refers to the Directors of the Regional Office of the
Department.cralaw:red
(mm) Regional
Labor Center or RLC. — refers to an overseas field office of the
Administration.
RULE II
Employment
Promotion
SECTION 1. Powers
of the Secretary of Labor and Employment. — The Secretary shall have
the
power and authority to:
(a) Organize
and establish, as the need arises, new public employment offices in
addition
to or in place of existing ones for the efficient, systematic and
coordinated
recruitment and placement of workers for local and overseas employment.cralaw:red
(b) Organize
and establish a nationwide job clearance and information system to
inform
applicants registering with a particular employment office of job
opportunities
in other parts of the country as well as overseas.cralaw:red
(c) Develop
and organize programs that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation
of workers from one area to another.cralaw:red
(d) Require
any person, establishment, organization or institution to submit such
employment
information as may be necessary; andchan
robles virtual law library
(e) Issue such
rules and regulations as may be necessary to regulate and supervise
private
sector participation in the recruitment and placement of workers,
locally
or overseas, in the context of a comprehensive national employment
program.cralaw:red
SECTION 2. Free
placement services. — The public employment offices shall provide free
placement of workers applying for both domestic and overseas placement.
Applicants shall accomplish appropriate information sheets and submit
such
other documents as may be prescribed by the Bureau for the purpose.cralaw:red
SECTION 3. Placement
of workers. — Any applicant registering for employment with a public
employment
office shall be interviewed to determine his occupational
qualifications.
The public employment office shall refer him to any appropriate job for
vacancy.cralaw:red
SECTION 4. Vocational
guidance and testing. — The public employment offices shall provide
adequate
vocational guidance and testing service to persons seeking help in
choosing
or changing an occupation. Each office shall at least have one (1)
vocational
guidance and testing officer to undertake these tasks.cralaw:red
SECTION 5. Occupational
classification of registered applicants. — The public employment office
shall classify registered applicants in accordance with job-titles and
codes of the Philippine Standard Classification. They shall also
maintain
a registry of skills using such forms as may be appropriate for the
purpose.cralaw:red
SECTION 6. Occupational-industrial
mobility of workers. — The public employment offices shall arrange for
the training or retraining of unemployed applicants in occupations or
trades
where they are suitably qualified and have greater prospect of
employment.cralaw:red
SECTION 7. Geographical
movement of workers. — The public employment office shall arrange for
the
inter-area placement of unemployed workers through a nationwide
job-clearance
and information system. The transfer of workers shall be arranged by
the
public employment office where the applicant is registered and the
office
where the vacancy exists.cralaw:red
SECTION 8. Job-clearance
and information system. — The public employment office shall furnish
lists
of registered job applicants and job openings to the Bureau which shall
act as the national job-clearing house.cralaw:red
SECTION 9. Submission
of reports. — At the end of each month, every employer with at least
six
(6) employees shall submit to the nearest public employment office the
following:
(a)
List of existing job vacancies or openings;
(b) List
of
new employees, if any;
(c)
Terminations,
lay-offs or retirements;
(d) Total
number
of employed workers for the period; and
(e)
Request
for assistance, if needed, to fill vacancies or openings. RULE III
Recruitment
and Placement
SECTION 1. Private
recruitment. — No person or entity shall engage in the recruitment and
placement of workers either for local or overseas employment except the
following:
(a)
Public employment offices;
(b)
Overseas
Employment Development Board;
(c)
National
Seamen Board;
(d)
Private
recruitment offices;
(e)
Private
employment agencies;
(f)
Shipping
or manning agents or representatives; and
(g) Such
other
persons or entities as may be authorized by the Secretary.
SECTION 2. Ban
on direct hiring. — No employer may hire a Filipino worker for overseas
employment except through the person or entities enumerated in the
preceding
section or as authorized by the law or by the Secretary. Direct hiring
by members of the diplomatic service, officials and employees of
international
organizations and such other employers as may be authorized by the
Secretary
is exempted from this provision. Such hirings shall be processed by the
Overseas Employment Development Board. RULE IV
Private Sector
Participation in Recruitment and Placement
SECTION 1. Who
may participate in the private sector. — Only the following persons or
entities in the private sector may engage in the recruitment and
placement
of workers either for local or overseas employment:
(a)
Private employment agencies;
(b)
Private
recruitment entities;
(c)
Shipping
or manning agents or representatives; and
(d) Such
other
persons or entities as may be authorized by the Secretary.
SECTION 2.
Citizenship
requirement. — Only Filipino citizens or corporations, partnerships or
entities at least seventy-five percent (75%) of the authorized and
voting
capital stock of which is owned and controlled by Filipino citizens
shall
be permitted to participate in the recruitment and placement of
workers,
locally or overseas. RULE V
Private
Employment
Agencies
SECTION 1. Qualifications
of applicants. — All applicants for license to operate private
employment
agencies either for local or overseas recruitment and placement shall
possess
the following qualifications:
(a)
Citizenship requirement as provided for in Rule IV of these Rules;
(b)
Appropriate
capitalization as follows:
1.
For overseas recruitment and placement, a minimum networth of
P150,000.00
in the case of single proprietorship, and a paid-up capital or networth
of P150,000.00 in the case of a corporation or partnership, as the case
may be;
2. For
local
recruitment and placement, a minimum networth of P25,000.00 in the case
of single proprietorship; and a paid-up capital or networth of
P25,000.00
in the case of partnership or corporation, as the case may be;
(c)
Applicants
not otherwise disqualified by law, rule or regulations as may be
determined
by competent authority to engage in recruitment and placement.
(Repealed
by POEA
Rules and Regulations)
SECTION 2.
Application
for license for overseas recruitment and placement. — Every applicant
for
license to operate a private employment agency for overseas recruitment
and placement shall submit to the Bureau the following documents in
support
of the application:
(a)
A certified copy of the Articles of Incorporation in the case of a
corporation,
or the registration with the Bureau of Domestic Trade in the case of a
single proprietorship or partnership;
(b) If the
applicant
is a corporation, proof of financial capacity of the major stockholders
such as sworn statements of assets and verified income tax returns for
the last two years;
(c)
Clearance
from the Philippine Constabulary and the Bureau of Internal Revenue for
all the incorporators, partners or single proprietor;chan
robles virtual law library
(d) A
verified
statement that the applicant has in its employ persons with adequate
competence
to evaluate and test recruits and to consider them for employment
strictly
on the basis of merit and fitness, without any undue discrimination and
in accordance with the qualifications prescribed by the employer;
(e) A
verified
undertaking to assume all responsibilities for the proper use of its
license/authority
and the implementation of the contracts of employment with the workers;
and
(f) Such
other
requirements that the Secretary may require upon recommendation of the
Bureau Director. (Amended by Sec. 1, Rule II, Book II, POEA
Rules and Regulations)
SECTION 3.
Action
on application. — Within the thirty (30) days from the receipt of the
application
for license, the Bureau shall recommend its denial or approval to the
Secretary.
Upon considering the findings and recommendations of the Bureau, the
Secretary
may either deny or approve the application. (Amended by POEA
Rules and Regulations)
SECTION 4. Fees
and bonds. — Upon approval of the application, the applicant shall pay
to the Department a license fee of P6,000.00, post a cash bond of
P50,000.00
or negotiate bonds of equivalent amount convertible to cash issued by
banking
or financial institutions duly endorsed to the Department, as well as a
surety bond of P150,000.00 from an accredited bonding company to answer
for valid and legal claims arising from violations of the conditions of
the license or the contracts of employment and guarantee compliance
with
the provisions of the Code, its implementing rules and regulations and
appropriate issuances of the Department. (Amended by Sec. 2 & 4
Rule
II Book II, POEA
Rules and Regulations)
SECTION 5. Issuance
of license. — Upon payment of the license fee and the posting of the
appropriate
bonds, the Bureau shall issue the corresponding licensing to the
applicant.
(Modified by Sec. 5, Rule II, Book II, POEA
Rules and Regulations)
SECTION 6. Duration
of license. — Every license shall be valid for one year from the date
of
approval, unless sooner cancelled, revoked or suspended by the
Secretary
for violation of any of the conditions of the license or any of
applicable
provisions of the Code and these Rules. (As amended by Sec. 6, Rule II,
Book II, POEA
Rules and Regulations)
SECTION 7. Non-transferability
of license. — No license shall be transferred, conveyed or assigned to
any other person or entity, or used in any place other than that stated
in the license. Any transfer of business address, appointment or
designation,
of any agent or representative, including the establishment of
additional
offices elsewhere, shall be subject to the final approval of the
Bureau.
(As amended by Sec. 7, Rule II, Book II, POEA
Rules and Regulations)
SECTION 8. Change
of Ownership of Business. — Transfer or change of ownership of a single
proprietorship licensed or authorized to engage in overseas employment
shall cause the automatic revocation of the license or authority. The
new
owner shall be required to apply for a license or authority in
accordance
with these Rules. (Added by Sec. 8, Rule II, Book II, POEA
Rules and Regulations)
A change in
the relationship of the partners in a partnership duly authorized or
licensed
to engage in overseas employment which materially interrupt the course
of the business or results in the actual dissolution of the partnership
shall likewise cause the automatic revocation of the license or
authority.cralaw:red
SECTION 9. Upgrading
of Single Proprietorship or partnership. — Licensees or authority
holders
which are single proprietorships or partnerships may, subject to the
guidelines
of the Administration, convert into corporations for purposes of
upgrading
or raising their capabilities to meet the stiff competition in the
international
labor market and to enable them to better comply with their
responsibilities
arising from the recruitment and deployment of workers overseas. (Added
by Sec. 9, Rule II, Book II, POEA
Rules and Regulations)
The prohibition
on the issuance of new license under L.O.I. 1190 shall not apply to the
new entity created by reason of the above merger, consolidation or
upgrading.cralaw:red
The approval
of merger, consolidation or upgrading shall automatically revoke or
cancel
the license or authorities of the single proprietorships, partnerships
or corporations so merged, consolidated or upgraded.cralaw:red
SECTION 10.
Change of Directors of Corporations. — Every change in the composition
of the Board of Directors of a corporation licensed or authorized to
participate
in overseas employment shall be registered with the Administration
within
30 days from the date the change was decided or approved. The
corporation
shall be required to submit to the Administration the bio-data and
clearances
of the new members of the Board from the government agencies identified
in Section 1 (c) Rule II, Book II of these Rules. (Added by Sec. 10,
Rule
II, Book II, POEA
Rules and Regulations)
SECTION 11.
Change of Other Officers and Personnel. — Every change of officers or
representatives
and termination of appointment of personnel shall be registered with
the
Administration within 30 days from the date the change or termination
occurred.
(Added by Sec. 11, Rule II, Book II, POEA
Rules and Regulations)
SECTION 12.
Transfer of Business Address. — Any transfer of business address,
including
the establishment of additional offices elsewhere, shall be effected
only
with prior authority or approval of the Administration. The approval
shall
be issued only upon formal notice of the intention of transfer with the
following attachments: (Added by Sec. 12, Rule II, Book II, POEA
Rules and Regulations)
(a)
Copy of the company's formal notice to the BDT or SEC on the transfer
of
business address;
(b) In
case
of a corporation, Board Resolution duly registered with the SEC
authorizing
transfer of business address;
(c) Copy
of
the BDT or SEC acknowledgment of the notice to transfer;
(d) Copy
of
the contract of lease or proof of building ownership.
The new office
space shall be subject to the normal ocular inspection procedures by
duly
authorized representatives of the Administration.
A notice to
the public of the new address shall be punished in a newspaper of
general
circulation.cralaw:red
SECTION 13.
Conduct of Recruitment Outside of Registered Office. — No licensed or
authorized
agency or entity shall conduct recruitment activities outside of the
address
stated in the licensed authority without first securing prior authority
from the Administration. (Added by Sec. 13, Rule II, Book II, POEA
Rules and Regulations)
SECTION 14.
Appointment of Representatives. — Every appointment of representatives
or agents of licensed or authorized agency or entity shall be subject
to
the prior approval or authority of the Administration. The approval may
be issued upon submission of or compliance with the following
requirements:(Added
by Sec. 14, Rule II, Book II, POEA
Rules and Regulations)
(a)
Proposed appointment or special power of attorney;
(b)
Philippine
Constabulary (PC-CIS) and National Bureau of Investigation (NBI)
clearances
of the proposed representative or agent;
(c) Two
(2)
copies of passport-size pictures of the proposed representative or
agent;
(d) A
sworn
or verified statement by the designating or appointing person or
company
assuming full responsibility for all acts of the agent or
representative
done in connection with the recruitment and placement of workers.
Approval by the
Administration of the appointment or designation does not authorize the
agent or representative to establish a branch or extension office of
the
licensed agency represented.
Any revocation
or amendments in the appointment should be communicated to the
Administration,
otherwise the designation or appointment shall be deemed as not revoked
or amended.cralaw:red
SECTION 15.
Renewal of license. — Not later than forty five (45) days before the
expiry
date of the license, a private employment agency shall submit to the
Bureau
an application for renewal of license. Such application shall be
supported
by the following documents:
(a)
A report under oath of its operations during the period covered by the
license containing the following information, among other:
1)
Number and categories of workers recruited and placed overseas during
the
period, names and addresses of their respective
employer(s)/principal(s),
total basic wages and salaries earned of workers placed by it and
reported
foreign exchange earnings remitted during the period as certified by
the
Central Bank;
2) Total
amount
paid to the welfare fund and processing fees paid during the period;
3) Names
and
addresses of its principals and the amount of service fees per worker
charged
against them; and
(b) Verified
financial
statement of operation during the period, including latest income tax
payment.
(Amended by Sec. 15, Rule II, Book II, POEA
Rules and Regulations)
SECTION 16.
Processing
of application for renewal. — Within thirty (30) days from receipt of
the
application for renewal of license, the Bureau shall complete the
processing
of the same. Upon evaluation of the documents submitted and the
agency's
performance records, the Bureau shall recommend its denial or renewal
to
the Secretary who may accept or deny the Bureau's recommendation. The
Bureau
shall release the license subject to payment of a license fee of
P6,000.00,
posting of a cash bond of P50,000.00 or its acceptable equivalent, and
the renewal of the surety bond of P150,000.00. (Amended by Sec. 16 to
18,
Rule II, Book II, POEA
Rules and Regulations)
(a)
Replenishment of Cash or Surety Bonds. — Within thirty (30) days from
notice
by the Administration that the bonds or any part thereof had been
garnished,
the agency or entity shall replenish the same. Failure to replenish
shall
cause the suspension or cancellation of the license or authority.
(b) Refund
of
Cash Bond. A licensed agency or entity which voluntarily surrenders its
license or authority shall be entitled to the refund of its cash bond
only
after posting a surety bond of similar amount valid for three (3) years.
(c)
Evaluation
of Performance of Agencies and Entities. The Administration shall
undertake
the evaluation and rating of the performance of licensed agencies and
entities
and determine the merits of their continued participation in the
overseas
employment program taking into consideration compliance with laws and
regulations
and such other criteria as it may deem proper. (Sec. 21 Rule II, Book
III,
POEA
Rules and Regulations)
(d)
Classification
and Ranking. — The Administration may undertake the classification and
ranking of agencies and entities. (Sec. 22 Rule II, Book III, POEA
Rules and Regulations)
(e)
Incentives
and Recognition. — The Administration may undertake incentives and
recognition
to deserving agencies and contractors for exemplary performance. (Sec.
23 Rule II, Book III, POEA
Rules and Regulations)
SECTION 17.
Requirement
before recruitment. — Before recruiting any worker, the private
employment
agency shall submit to the Bureau the following documents:
(a)
A formal appointment or agency contract executed by a foreign-based
employer
in favor of the license holder to recruit and hire personnel for the
former
duly authenticated or attested by the Philippine Labor Attaché
or
duly authorized Philippine foreign service official or, in his absence
by an appropriate official, agency or organization in the country where
the employer conducts his business. In case any of the foregoing
documents
is executed in the Philippines, the same may be authenticated by the
duly
authorized official of the Department of Foreign Affairs or of the
employer's
consulate or Embassy or of the Department of Labor and Employment
official
as may be appropriate. Such formal appointment or recruitment agreement
shall contain the following provisions, among others:
(1)
Terms of recruitment, including the responsibility of the parties
relative
to the employment of workers;
(2)
Power of
the agency to sue and be sued jointly and solidarily with the principal
or foreign-based employer for any of the violations of the recruitment
agreement and the contracts of employment;
(3)
Compensation
or payment schedule, including payment of documentation costs,
government
fees, service from the transportation fare and the mode of payments;
(4)
Period of
validity, which shall be not less than one year and up to the
expiration
date of the last employment contract signed with its recruits; and
(5)
Institutions
of systems or procedure to be implemented for mandatory remittance of a
portion of the worker's salary as provided under the Code and the
Affidavit
of undertaking.
(b)
Commercial
registration and other pertinent documents proving the legal
personality
of the foreign principal, including its authority to hire and recruit
foreign
workers;
(c) Job
order
or requisition of the foreign-based employer or principal, including
the
number for categories of workers needed, salary and benefit schedule,
qualification
guidelines and testing procedures and master employment contract; and
(d) Work
permits
or work visas where such are required by the country of destination.
SECTION 18.
Submission
of employment contracts. — (a) Every private employment agency shall
submit
to the Bureau, for evaluation and approval, the master employment
contract
to be used for its recruits and the service/recruitment agreement which
shall be written in English and in the language of the country of work
whenever necessary.
(b) All applicants
for passport or travel of recruited workers shall be properly endorsed
by the Bureau.cralaw:red
SECTION 19.
Standard format of service agreement and employment contract. — The
Bureau
shall adopt a standard format of service agreement and employment
contract
in accordance with pertinent labor and social legislation and
prevailing
international standard and conventions. The standard format shall set
the
minimum standards of the terms and conditions to govern the employment
of land-based overseas Filipinos. All employers shall adopt the model
contract
in connection with the hiring and engagement of the services of
overseas
workers. (Modified by Sec. 2 Rule I, Book V, POEA
Rules and Regulations)
SECTION 20.
Worker's deployment. — It shall be the responsibility of the private
employment
agency to facilitate the deployment of the recruits. If the worker is
unable
to depart within forty-five (45) days from the release of passport
through
no fault of his and without any valid reason on the part of the agency,
he shall be entitled to the refund of his expenses, if any, and standby
pay, if he is made to wait for his deployment. On the other hand, if
after
the applicant worker has been properly documented and processed, he
decides
to withdraw without any valid reason, he shall reimburse the agency all
expenses of processing and documentation. The Bureau shall issue as
appropriate,
orders to implement this provision.cralaw:red
SECTION 21.
Contents of employment contracts. — The employment contracts shall in
no
case provide for terms of employment below the standards established by
the Department, which shall not be below the basic requirements of
Philippine
labor and social legislation or practices, and shall include the
following:
(Modified by Sec. 1 Rule I, Book V, POEA
Rules and Regulations)
(a)
Guaranteed wages for regular working hours and overtime pay for
services
rendered in excess of basic working hours as established by the
Ministry;
(b) Free
transportation
from point of hire to site of employment and return, including expenses
for travel documentation;
(c)
Adequate
board and lodging facilities;
(d) Free
emergency
medical and dental treatment and facilities;
(e) Just
causes
for the termination of the contract or of the service of the workers;
(f)
Workmen's
compensation benefits and war hazard protection, including life and
accident
insurance coverage during the term of employment;
(g)
Immediate
transportation of the worker's remains and property in case of death to
the point of hire or if this is not possible under the circumstances,
the
proper disposition thereof, upon previous arrangement with the worker's
next-of-kin and the nearest Philippine Embassy or Consulate; and
(h)
Remittance
of the worker's salaries, allowances and/or allotments to his
beneficiaries
through the Philippine banking system.
SECTION 21. (a)
Allowable Salaries and Wages. — Workers hired for overseas employment
shall
receive salaries or wages in accordance with the standards promulgated
by the Administration. The Administration shall undertake the periodic
review of salaries and wages prevailing at worksites. (Sec. 3 Rule I,
Book
V, POEA
Rules and Regulations)
SECTION 22.
Renewal of contracts. — Every contract worker shall advise the
Department
of the renewal or extension of his employment contract in any of the
following
manner:
(a)
Through the labor attaché, or in his absence through a duly
designated
foreign service official in the area of employment who is authorized to
renew the contract; or
(b) By
furnishing
the Bureau directly with a copy of the renewed contract.
SECTION 23.
Allowable
fees chargeable against the workers. —
(a)
Unless otherwise provided by the Secretary, private employment agencies
may collect a placement fee from every worker in accordance with a
schedule
to be approved by him. Such fee shall be paid only when the employment
contract of the worker has been approved by the Bureau and he is about
to commence employment through the efforts of the agency. Every payment
shall be covered by an appropriate receipt indicating the amount paid
and
the purpose of such payment. In addition and subject to the approval of
the Secretary the applicant workers may be required to post a bond to
guarantee
compliance with the employment contract.
(b) A
recruit
may be required to shoulder the cost of the following requirements
provided
that the same shall be covered by an appropriate receipt and unless
paid
by the employer of principal:
(1)
Medical and psychological examination;
(2)
Inoculation
certificate;
(3)
Passport.
(c) Records
of
payment shall be available for inspection by an authorized
representative
of the Bureau any time during regular office hours. (Amended by Sec. 2
Rule IV, Book II, POEA
Rules and Regulations)
SECTION 24.
Fees
chargeable against the employer. — A private employment agency shall
charge
a minimum mobilization fee to cover costs of recruitment, processing
and
documentation in accordance with a schedule approved by the Secretary
in
addition to service charges which may be negotiated with a foreign
employer
or principal.
(a)
Fees Chargeable Against Principals. Agencies shall charge from their
principals
a service of manning fee to cover services rendered in the recruitment,
documentation and placement of workers. (Sec. 1 Rule IV, Book II, POEA
Rules and Regulations)
(b)
Charges
deductible from Fees Paid by Withdrawing Workers. In case of the
withdrawal
of the worker within one hundred twenty (120) days from the signing of
the employment contracts the agency or entity shall refund the amount
paid
by him after deducting such actual expenses incurred in the
documentation
of the worker as may be supported by receipts. (Sec. 3 Rule IV, Book
II,
POEA Rules and Regulations)
(c)
Prohibition
on Charging of Other Fees. No other fees or charges shall be imposed
against
any worker. (Sec. 4 Rule IV, Book II, POEA Rules and Regulations)
(d)
Processing
Fees and Welfare Fund Contribution. Contract processing fees and the
Welfare
Fund contributions shall in no case be charged to the worker. However,
this shall not apply in the case of Seafarers' Welfare Fund which is
contributory
in nature.
SECTION 25.
Recruitment
Advertisement. —
(a)
No advertisement for overseas recruitment including training or review
activities for overseas employment shall be placed in any newspaper by
a private employment agency without prior authorization by the Bureau.
Such advertisement shall contain the following information, among
others:
(1)
The number and nature of jobs available, including wage and benefit
schedule;
(2) A
brief
description of the skills needed;
(3) The
name,
nationality and address of the employer; and
(4) The
name,
address and license number of the agency.
(b) No press
notice
or announcement regarding the availability of overseas jobs shall be
released
by the agency prior to the accreditation of one principal. (As amended
by Sec. 2 Rule II Book III, POEA Rules and Regulations)
SECTION 25. (a)
Recruitment from the Administration's Manpower Registry. Agencies or
entities
may recruit workers for their accredited principals or projects from
the
manpower registry of the Administration in accordance with the
guidelines
set by it. (Sec. 1, Rule II Book III, POEA Rules and Regulations)
(b) Advertisement
for Manpower Pooling By Agencies or Entities. Agencies or entities
desiring
to generate qualified applicants for prospective principal or project
may
advertise in accordance with the format prescribed by the
Administration.
Such undertakings shall not involve payment of any fee by applicants.
(Sec.
3, Rule II Book III, POEA Rules and Regulations)
(c) Press Releases
on Recruitment. For purposes of these rules, press releases on
negotiations
with principals or contracting partners and/or involving overseas job
openings
shall be considered as advertisements. (Sec. 4, Rule II Book III, POEA
Rules and Regulations)
(d) Sanctions.
False and deceptive advertisements published by agencies or entities
including
those published not in accordance with the prescribed format shall be
valid
ground for suspension or cancellation of license or authority. (Sec. 3,
Rule I, Book III, POEA Rules and Regulations)
SECTION 26.
Application for license for local recruitment and placement.
(a)
Every applicant for license to operate a private employment agency for
local recruitment and placement shall submit the following documents in
support of the application;
(1)
A certified copy of the Articles of Incorporation in the case of a
corporation
or the registration with the Bureau of Domestic Trade in the case of a
single proprietorship or partnership; and
(2)
Clearance
from the Philippine Constabulary and the Bureau of Internal Revenue for
all the incorporators, partners or single proprietor.
(3) List
of
officers/personnel and corresponding bio-data.
(b) An agency
licensed
to recruit and place workers overseas need not apply for a separate
license
to engage in domestic recruitment and placement.
SECTION 27.
Action
on application. — Within thirty (30) days from receipt of the
application
for license, the Bureau Director shall either deny or approve the same.
The denial by the Bureau Director may be appealed by the applicant to
the
Secretary within ten (10) days from the receipt of the notice of denial.
SECTION 28.
Notice of approval or denial. — The Bureau shall immediately transmit
the
notice of denial or approval of the application to the applicant.cralaw:red
SECTION 29.
Fees and bonds. — Upon approval of the application, the applicant shall
pay to the Department a license fee of P1,000.00 and post cash and
surety
bonds of P5,000.00 and P25,000.00, respectively.cralaw:red
The bonds shall
guarantee compliance with the provisions of the Code, its implementing
rules and the terms and conditions of the employment contracts.cralaw:red
SECTION 30.
Issuance of License. — Upon payment of the license fee and the posting
of the appropriate bonds, the Bureau Director shall issue the
corresponding
license to the applicant.cralaw:red
SECTION 31.
Duration of license. — The license shall be valid for one year from the
date of approval unless sooner cancelled, revoked or suspended by the
Bureau
Director for violation of any of the conditions prescribed in the
license
or applicable provisions of the Code or these Rules.cralaw:red
SECTION 32.
Non-transferability of license. — No license shall be transferred,
conveyed
or assigned to any other person or entity, or used in any place other
than
that stated in the license. Any transfer of business address,
appointment,
or designation of any agent or representatives, including the
establishment
of additional offices elsewhere shall be subject to the prior approval
of the Bureau.cralaw:red
SECTION 33.
Registration of local private recruitment entities. — Educational
institutions
and civic organizations setting up placement offices to service their
students
or members shall register their operations with the nearest public
employment
office or the Bureau under such guidelines as may be prescribed by the
Secretary. Such entities shall coordinate their recruitment activities
with the public employment offices in the area where they operate.cralaw:red
SECTION 34.
Allowable fees. — An employment agency which recruits a domestic worker
for an employer may charge the latter a service fee to be determined by
the Bureau which shall cover the maintenance of the recruit including
board
and lodging prior to placement. The transportation fare of the recruit
from place of work may be charged against the latter.cralaw:red
Every payment
shall be covered by an appropriate receipt indicating the amount paid
and
purpose of such payment.cralaw:red
SECTION 35.
Replacement without costs. — An employer shall be entitled to a
replacement
without additional charges within one (1) month from the date of
engagement
of the first recruit on any of the following grounds:
(a)
The recruit is found to be suffering from an incurable or contagious
disease;
(b) The
recruit
is physically or mentally incapable of discharging the minimum normal
requirements
of the job;
(c) The
recruit
abandons the job, voluntarily resigns, commits theft or any other act
prejudicial
to the employer or to any immediate members of his family; and
(d) Other
grounds
analogous to the foregoing.
SECTION 36.
Acknowledgment
of contracts. — Every recruitment contract shall be acknowledged before
the appropriate Regional Director or his duly authorized
representative,
or in his absence, before the municipal mayor, judge, notaries public
or
any person authorized by law to administer oath of the place where the
recruit resides. If the recruit is a minor, the consent of the parent
or
guardian, similarly acknowledged, shall be attached to the contract. RULE VI
Cancellation
or Suspension of License
SECTION 1. Scope
of Application. — These Rules shall apply to all persons, agencies or
entities
duly licensed or authorized to recruit and deploy Filipino workers for
overseas employment. (Sec. 1, Rule VI Book I, POEA Rules and
Regulations)
SECTION 2. Grounds
for Suspension, Cancellation or Revocation. — A license or authority
shall
be cancelled, suspended or revoked on any of the following grounds,
among
others:
a.
Imposing or accepting directly or indirectly any amount of money, goods
or services, or any fee or bond in excess of what is prescribed by the
Administration;
b.
Engaging
in act(s) of misrepresentation, such as publication or advertisement of
false or deceptive notices or information in relation to the
recruitment
and placement of workers;
c.
Engaging
in act(s) of misrepresentation, such as giving false statements, false
testimonies or falsified documents;
d.
Inducing
or attempting to induce an already employed worker to transfer from or
leave his employment to another unless such transfer is advantageous or
beneficial to the worker;
e.
Influencing
or attempting to influence any person or entity to prevent employment
of
any worker;
f.
Engaging
in the recruitment and placement of workers in jobs harmful to public
health
or morality or to the dignity of the Republic of the Philippines;
g.
Obstructing
or attempting to obstruct inspection by the Secretary, the
Administrator
or by their duly authorized representatives;
h.
Substituting
or altering employment contracts and other documents approved and
verified
by the Administration from the time of actual signing thereof by the
parties
up to and including the period of expiration of the same without the
Administration's
approval;
i. Failure
to
file report on the remittance of foreign exchange earnings and such
matters
as may be required by the Administration;
j. Where
the
owner, partner or majority stockholder, licensee or holder of
authority,
or principal officers become officer or member of the Board of any
corporation
or partnership engaged in travel or engaged directly or indirectly in
the
management of a travel agency;
k.
Withholding
or denying travel and other documents from workers for monetary
considerations
or reasons other than those authorized under the Labor Code and its
implementing
Rules and Regulations;
l.
Engaging
in recruitment activities in places other than specified in the license
or authority without previous authorization from the Administration;
m.
Appointing
or designating agents or representatives without prior approval of the
Administration;
n.
Falsifying
or altering workers' employment contracts or travel documents;
o.
Deploying
workers or seamen to vessels or principals not accredited by the
Administrator;
p.
Deploying
workers whose employment and travel documents were not processed by the
Administration;
q.
Publishing
or causing the publication of overseas job vacancies in violation of
the
prescribed rules;
r. Failure
to
deploy workers without valid reasons within the prescribed period as
provided
under Section 5, Rule III, Book III hereof;
s. Failure
to
pay or replenish cash bond and renew surety bond;
t.
Disregard
of lawful orders, summons, etc;
u.
Withholding
of workers' salaries or remittances without justifiable reasons;
v.
Coercing
workers overseas to accept prejudicial arrangements in exchange of
certain
benefits that rightfully belong to the worker; and
w.
Violation
of other pertinent provisions of the Labor Code and other relevant
laws,
rules and regulations. (Sec. 2, Rule Sec. 4, Rule II Book III, POEA
Rules
and Regulations)I Book II, POEA Rules and Regulations)
SECTION 3.
Complaints
against private employment agency. — Any complaint or report against
private
employment agency shall be filed with the Bureau. If the complainant or
report shows any violation of the conditions of the license or the
pertinent
provisions of the Code or of these rules, the Bureau shall immediately
conduct an investigation and require the private employment agency
concerned
to submit its comments or explanation within five (5) working days upon
receipt of the copy of order/notice of the Bureau. ( Amended by Sec. 3,
Rule VI Book II, POEA Rules and Regulations)
(a)
Contents of the Complaint. The complaint shall state the name and
address
of the complainant as well as that of the respondent, the specific
offense
or omission, the date when the offense was committed, and the relief(s)
sought. (Sec. 4, Rule VI Book I, POEA Rules and Regulations)
(b) Action
on
the Complaint. Upon receipt of the complaint, the Administration shall
furnish the respondent with a copy of the complaint and its supporting
documents, if any, and require him to file his answer within ten (10)
working
days from receipt thereof.
The
respondent's
answer should be filed with the Licensing and Regulation Office within
the reglementary period, attaching thereto proof of service of a copy
thereof
to the complainant.
Within
five
(5) days from receipt of the last responsive pleading, the Hearing
Officer,
shall schedule the hearing of the case if he finds from the submitted
pleadings
that there is a prima facie case of violation of the rules. Should
there
be a finding to the contrary, a minute resolution/summary judgment can
be rendered motu proprio. (Amended by Sec. 5, Rule VI Book II, POEA
Rules
and Regulations)
(c)
Failure
to Answer/Appear During Hearing. Failure of the respondent to file an
answer
within the period prescribed or appear during the hearing, as the case
may be, shall render the respondent in default and hearing or
investigation
may proceed ex parte. Decision/resolution of the case shall be based on
the evidence presented by the complainant. ( Amended by Sec. 6, Rule VI
Book II, POEA Rules and Regulations)
SECTION 4.
Suspension
of license pending investigation. — (a) Pending investigation of the
complaint
or report, the Secretary may suspend the license of the private
employment
agency concerned upon recommendation of the Bureau on any of the
following
grounds:
(1)
Failure on the part of the agency to submit its comments or explanation
within five (5) days;
(2) There
is
a strong prima facie case for violation of the Labor Code as amended,
its
implementing Rules and Regulations and the Bureau's policies, memoranda
and circulars; or
(3) There
exists
reasonable ground showing that the continued operations of the agency
will
lead to further violation of the conditions of the license or the
exploitation
of the workers being recruited, or imperil friendly relations with any
country or otherwise prejudice national interest or security.
(b) Similar
action
may be taken by the Bureau Director in the case of private agencies
licensed
for domestic recruitment and placement.
SECTION 5. Conduct
of investigation. — The Bureau shall summon the owner or official of
the
private employment agency and other parties concerned if any, receive
such
evidence as may be relevant and necessary, and otherwise take such
other
actions as may be warranted to inform itself of true facts and
circumstances
of the case. The investigation shall be terminated not later than
thirty
(30) working days from the first hearing. The Bureau shall submit its
findings
and recommendations to the Department of Labor and Employment within
fifteen
(15) days from the termination of the investigation. (Amended by Sec.
7,
Rule VI Book II, POEA Rules and Regulations)
SECTION 6. Duration
of Suspension. — The order of suspension may carry with it the period
of
effectivity which shall be in accordance with the scale of penalties
which
the Administration may promulgate. (Sec. 11, Rule VI Book II, POEA
Rules
and Regulations)
SECTION 7. Effects
of Settlement. — A mutually agreed settlement of the case or the
desistance
of the complainant shall not bar the Administration from proceeding
with
the investigation. The Secretary or the Administrator shall act on the
case as may be merited by the results of the investigation and impose
such
penalties on the erring agency or entity as may be deemed appropriate.
Such settlement when reached to the full satisfaction of the
complainant
may, however, mitigate the liability of the respondent. (Sec. 12, Rule
VI Book II, POEA Rules and Regulations)
SECTION 8. Imposition
of Fines. — In addition to or in lieu of the penalties of suspension or
cancellation the Secretary or the Administrator may impose fines. (Sec.
13, Rule VI Book II, POEA Rules and Regulations)
SECTION 9. Suspension
of Documentary Processing. — The Administration may order the
suspension
of the processing of documents pertaining to a respondent agency or
entity
on any of the grounds under Section 2 of this Rule or for violation of
any provision of these Rules. (Sec. 14, Rule VI Book II, POEA Rules and
Regulations)
SECTION 10.
Who May Issue Orders. — Orders of cancellation shall be issued by the
Secretary.
Orders for suspension of license or authority or the lifting thereof
shall
be issued by the Administrator, or in his absence by the Acting
Administrator,
in behalf of the Secretary. All other orders or resolutions which do
not
involve the suspension, cancellation or revocation of license or
authority
may be issued by the Director, LRO. (Sec. 14, Rule VI Book II, POEA
Rules
and Regulations)
SECTION 11.
Effect of Order of Suspension of License. — An order suspending a
license
or authority shall be immediately executory and shall have the effect
of
suspending all activities of the agency or entity which fall under the
definitions of recruitment and placement. The Administration may seek
the
assistance of other government institutions, agencies, or offices to
ensure
that suspension or revocation orders are carried out. (Sec. 16, Rule VI
Book II, POEA Rules and Regulations)
SECTION 12.
Authority to Administer Oath, Issue Subpoena, Etc. — The Administrator,
the Director, LRO and the Hearing Officers shall have the authority to
administer oath and/or affirmations, issue subpoena, take evidence,
compel
the attendance of the parties and/or witnesses and require the
production
of any book, paper, correspondence, memoranda and other records
relevant
or material to the case or inquiry. (Sec. 17, Rule VI Book II, POEA
Rules
and Regulations)
SECTION 13.
Motion for Reconsideration or Appeal. — A motion for the
reconsideration
of an order of suspension or an appeal to the Secretary from an order
cancelling
a license or authority may be entertained only when filed with the LRO
within ten (10) working days from service of the order or decision.cralaw:red
The filing of
a motion for reconsideration or appeal shall not automatically stay the
execution of the order. The Secretary or the Administrator may order
the
stay of execution and require the posting of supersedeas bond. (Sec.
18,
Rule VI Book II, POEA Rules and Regulations)
SECTION 14.
Action by the Secretary or Bureau Director. — (a) Where the case arises
from overseas recruitment and placement activities, the Bureau shall
submit
its findings and recommendations to the Secretary within fifteen (15)
days
from the termination of the investigation, on the basis of which the
Secretary
may lift the suspension of the license or maintain the same until the
violation
are corrected, or cancel the license. (Repealed by POEA Rules and
Regulations)
(b) Where the
case involves domestic recruitment and placement activities, the Bureau
Director may take similar action as provided for in paragraph (a)
hereof.
His decision may be appealed to the Secretary by an aggrieved party
within
ten (10) days from receipt of decision.cralaw:red
(c) The decision
of the Secretary in both cases shall be final and unappealable.cralaw:red
(d) Where the
decision of the Secretary is to suspend the license/authority, the
duration
of said suspension shall not be less than sixty (60) days, unless
sooner
lifted by him.cralaw:red
SECTION 15.
Inspection and enforcement. — (a) The Bureau shall establish an
inspectorate
system to ensure effective supervision of the activities of all license
and authority holders as well as of aliens employed in the Philippines
and the implementation of the understudy training program of the
employers
of such aliens.cralaw:red
(b) The Bureau
Director or his duly authorized representative may, during regular
office
hours, inspect the premises, books and records of license and authority
holders and of establishments employing aliens to determine compliance
with the Code and of these Rules. (Amended by Sec. 3, Rule III Book II,
POEA Rules and Regulations)
SECTION 16.
Inspection Before Licensing. — Before issuance or renewal of license or
authority the Administration shall conduct an inspection of the
premises
and pertinent documents of the applicant. (Sec. 1, Rule III, Book II,
POEA
Rules and Regulations)
SECTION 17.
Inspection of Agencies and Entities. — All Agencies and entities shall
be subject to periodic inspection by the Administration to determine
compliance
with existing rules and regulations. Inspection shall likewise be
conducted
by the Administration in case of transfer of office or establishment of
a branch office or upon complaint or report of violations of existing
rules
and regulations. (Sec. 2, Rule III, Book II, POEA Rules and Regulations)
SECTION 18.
Subject of Inspection. — Depending on the purpose of inspection, the
authorized
representative(s) of the Administration shall require the presentation
of and examine the necessary documents, records and premises of an
agency
or entity. (Sec. 4, Rule III, Book II, POEA Rules and Regulations)
SECTION 19.
Inspection Procedures. —
a)
Inspection shall be conducted by a team of at least two duly authorized
persons during office hours, unless otherwise authorized in accordance
with Section 3 of this Rules;
b)
Inspection
shall be conducted in the presence of the Manager of the office or any
office personnel;
c)
Inspection
reports shall be submitted to the Administrator or the Director, LRO,
within
24 hours after the inspection. (Sec. 5, Rule III, Book II, POEA Rules
and
Regulations)
SECTION
20. Violations Found in the Course of Inspection. — Violations found in
the course of inspection such as non-compliance with the
Administration's
rules, issuances, directives, etc. may be grounds for the imposition of
appropriate sanctions or for the denial of application for renewal of
license.
(Sec. 6, Rule III, Book II, POEA Rules and Regulations)
SECTION 21.
Issuance of Policy Guidelines on Inspection. — The Director, LRO, shall
issue appropriate guidelines which shall ensure an effective and
comprehensive
system of inspection. (Sec. 7, Rule III, Book II, POEA Rules and
Regulations)
SECTION 22.
Guidelines on functions and responsibilities. — Consistent with these
rules
and regulations and appropriate instructions of the Secretary, the
Bureau
shall issue guidelines governing its functions and responsibilities.
RULE VII
The Overseas
Construction Industry and the Corporate Export Program
SECTION 1. Registration
of Filipino Construction Contractors. — Subject to guidelines issued
jointly
by the Secretary and the Construction Industry Authority of the
Philippines,
construction contractors shall be issued authority to operate as
private
recruitment entities.cralaw:red
SECTION 2. Corporate
Export Program. — The Bureau, in coordination with other relevant
agencies
and entities shall develop programs for the hiring of workers in
organized
or corporate groups.
RULE
VIII
Private
Recruitment
Entities
SECTION 1. Qualifications
of applicants. — All applicants for authority to operate private
recruitment
entities for overseas work other than construction contractors shall
possess
the following qualifications:
(a)
Citizenship requirement as provided for in Rule IV of these Rules;
(b)
Appropriate
capitalization as follows:
1. A
minimum
networth of P300,000 in the case of single proprietorship; and a
paid-up
capital or networth of P300,000 in the case of a corporation or
partnership,
as the case may be.
SECTION 2.
Application
for authority for overseas private recruitment. — Every applicant for
authority
to operate a private recruitment entity shall submit the following
documents
in support of the application:
(a)
A certified copy of the Articles of Incorporation in the case of a
corporation,
or the registration with the Bureau of Domestic Trade in the case of a
single proprietorship or partnership;
(b) If the
applicant
is a corporation, proof of financial capacity of the major stockholders
such as sworn statements of assets and liabilities and verified income
tax returns for the last two years;
(c) If the
applicant
is a single proprietorship or a partnership, proof of financial
capacity
of proprietor or partners such as sworn statements of assets and
liabilities
and verified income tax returns for the last two years;
(d)
Clearance
from the Philippine Constabulary and the Bureau of Internal Revenue for
all the incorporators, partners or single proprietor;
(e) A
verified
statement that the applicant has in its employ persons with adequate
competence
to evaluate and test recruits and to consider them for employment
strictly
on the basis of merit and fitness, without any undue discrimination and
in accordance with the qualifications prescribed by the employers;
(f) A
verified
undertaking to assume all responsibilities for the proper use of its
authority
and the implementation of the contract of employment with the workers;
and
(g) Such
other
requirements that the Secretary may require upon recommendation of the
Director.
SECTION 3.
Action
on application. — Within thirty (30) days from the receipt of the
application
for authority, the Bureau shall recommend its denial or approval to the
Secretary. Upon considering the findings and recommendations of the
Bureau,
the Secretary may either deny or approve the application.
SECTION 4. Fees
and bonds. — Upon approval of the application, the applicant shall pay
to the Department a registration fee of P2,000.00, and post a
performance
bond of P200,000.00 from an accredited bonding company to answer for
valid
and legal claims arising from violations of the conditions of the
authority
of the contracts of employment and guarantee compliance with the
provisions
of the Code, its implementing rules and appropriate issuances of the
Department.cralaw:red
SECTION 5. Action
on application. — Within thirty (30) days from the receipt of the
application
for authority, the Bureau shall recommend its denial or approval to the
Secretary. Upon considering the findings and recommendations of the
Bureau,
the Secretary may either deny or approve the application.cralaw:red
SECTION 6. Issuance
of authority. — Upon payment of the registration fee and the posting of
the appropriate bonds the Secretary shall issue the corresponding
authority
to the applicant.cralaw:red
SECTION 7. Duration/renewal
and non-transferability of Authority. — (a) Every authority shall be
valid
for one year from the date of approval, unless sooner cancelled,
revoked
or suspended by the Secretary for violations of any of the conditions
of
the authority or any applicable provisions of the Code or these Rules.cralaw:red
(b) No authority
shall be transferred, conveyed or assigned to any other person or
entity
or used in any place other than that stated in the authority. Any
transfer
of business address, appointment or designation of any agency or
representative,
including the establishment of additional offices elsewhere, shall be
subject
to the prior approval of the Bureau.cralaw:red
(c) The Secretary
shall issue appropriate guidelines on the renewal of authority in
accordance
with the applicable provisions of these Rules and which may be similar
to those provided for licensed holders.cralaw:red
SECTION 8. Recruitment,
hiring and employment of workers. — Every private recruitment entity
shall
recruit, hire and employ workers for overseas job in accordance with
the
applicable provisions of these Rules. All applications for passport or
travel of recruited and hired workers shall be properly endorsed by the
Bureau.cralaw:red
SECTION 9. Allowable
fees and charges. — (a) A private recruitment entity shall charge a
minimum
mobilization fee to cover costs of recruitment, processing and
documentation
in accordance with a schedule approved by the Secretary in addition to
service charges it may negotiate with its principal.cralaw:red
(b) Subject
to approval by the Secretary the recruited workers may be required to
post
a bond to guarantee compliance with the employment contract.
RULE IX
Overseas
Employment
Development Board
(Abolished
by EO 797)
SECTION 1. Coverage.
— This Rule shall cover the functions and responsibilities of the OEDB.
It shall apply to employers hiring through the OEDB and to workers
processed
and placed by said agency.cralaw:red
SECTION 2. Role
of the OEDB. — The OEDB shall be the government placement agency for
overseas
employment. In cooperation with other relevant agencies and entities,
it
shall also be responsible for developing employment and wage standards
and such support services as may be necessary for the government's
overseas
employment program. (Modified by Sec. 1, Rule II, Bk. IV POEA Rules and
Regulations)
SECTION 3. Employment
development. — The promotion and development of employment
opportunities
abroad shall be undertaken by the OEDB, in cooperation with relevant
government
agencies and entities, through organized and systematic activities and
services which shall include among others, the following:
(a)
A comprehensive manpower marketing strategy and to dispatch OEDB
development
officers abroad for this purpose;
(b)
Develop
and promote programs or arrangements that would encourage the hiring of
Filipinos in organized or corporate groups;
(c) Scout
for
labor market for unskilled workers, among others; and
(d)
Promote
Filipino manpower through advertising in appropriate media overseas.
(Modified
by Sec. 1, Rule I, Bk. IV POEA Rules and Regulations)
SECTION 4.
Recruitment
and placement. — a) The OEDB shall recruit and place workers primarily
on government-to-government arrangements, and shall therefore service
the
hiring of foreign governments and their instrumentalities and, in
addition:
(1)
Recruit and place workers of particular skills categories as may be
directed
by the Secretary;
(2)
Administer
employment programs or projects as may be directed by the Secretary; and
(3) In
cooperation
with the Regional Offices of the Department, undertake organized
recruitment
activities in the provinces in aid of the employment dispersal policy
of
the Department.
b) The employer
shall enter into a bilateral recruitment agreement with the OEDB. The
employer
shall directly assist the OEDB in selecting appropriate workers from
its
manpower pool.
c) The OEDB
shall ensure that the worker through appropriate undertakings complies
with his obligations arising from the employment contract.cralaw:red
SECTION 5. Documents
requirements. — An employer hiring through the OEDB shall submit the
following
documents:
a)
Authority from the government of the employer to hire Filipino workers;
b) Work
permit
or visa assurance of workers; and
c)
Recruitment
Order which shall state the number and categories of workers needed,
compensation
benefits, qualification guidelines, testing procedures and a model
employment
contract. (Modified by Sec. 2, Rule II, POEA Rules and Regulations)
SECTION 6.
Formalization
of a Recruitment Agreement. — Employers hiring through the
Administration
shall be required to formalize a Recruitment Agreement which shall be
in
accordance with existing bilateral labor agreements, if any. The
Recruitment
Agreement shall, among others, contain the following provisions:
a.
Responsibilities of the parties to the agreement;
b.
Selection
and documentation procedures;
c. Fee
schedules
and terms of payment;
d. Manner
and
facilities for remittance of workers' salary;
e.
Grievance
Machinery for workers; and
f.
Validity
and revocation of the agreement.
The standards
and
requirements set by the Administration for the recruitment and
placement
of workers overseas shall apply to hiring thru the Administration.
(Sec.
3, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 7. Recruitment
and Placement Procedures. — a) Interview and Selection — An employer
hiring
through the Administration shall select his workers from the manpower
pool
developed and maintained by the Administration;
b) Medical Examination.
— Selected workers shall undergo and pass a standard pre-employment
medical
examination conducted by a duly accredited medical retainer of the
Administration;
c) Ticketing
and Flight Arrangements. — The employer shall assume the full cost of
workers'
transportation to and from the place of work, For this purpose, the
Administration
shall handle the flight arrangements and/or ticketing of workers hired.
Should the employer decide to handle its own ticketing, he shall be
required
to course pre-paid tickets through the Administration for appropriate
flight
booking.cralaw:red
d) Orientation.
— Before the worksite, hired workers shall undergo the required
Pre-Departure
Orientation Seminar (PDOS). (Sec. 4, Rule II, Bk. IV POEA Rules and
Regulations)
SECTION 8. Documentation
of Workers. — a) Contract Processing — Workers hired through the
Administration
shall be issued the following documents:
(1)
Individual Employment Contract duly signed by the employer or the
proper
administration official where appropriate;
(2) Travel
Exit
Pass;
(3)
Endorsement
letter to PTA, and
(4) Such
other
documents as may be necessary for travel.
b) Passport
Documentation.
— The Administration may secure directly the selected worker's passport
from the Department of Foreign Affairs. All transmittals and
endorsements
for passport issuance shall be undertaken directly by the
Administration.
c) Visa Arrangements.
— The Administration may assist employers and selected workers secure
their
visas from the appropriate Embassy. Visa forms may be accomplished by
the
worker at the Administration. The accomplished visa forms together with
the passport shall be endorsed by the Administration directly to the
Embassy.cralaw:red
SECTION 9. Workers
protection. — The OEDB shall protect and enhance the interest,
well-being
and welfare of workers and, for this purpose, it shall undertake:
a)
To establish wage and compensation standards, employments and
conditions,
by region or by country, which shall be prescribed by the Secretary;
b) To
provide
facilities for skills development and testing, pre-employment medical
examination,
pre-departure work/or language orientation, foreign exchange remittance
assistance, re-entry and re-employment assistance, accident insurance,
among others, and
c) To
implement
a grievance procedure in accordance with the provisions of this Title
and
the development objectives of the OEDB.
SECTION 10.
Dispute
settlement. — The following shall be adhered to in handling
employee-employer
disputes:
a)
In the event of a dispute between employee and employer, the
complainant
and/or respondent shall submit such dispute to the OEDB for
conciliation
or mediation. If the dispute is not settled at this stage, the OEDB
shall
certify the case to the Secretary for final decision.
b) The
OEDB,
under appropriate circumstances, may suspend, prohibit or prevent an
employer
from further recruitment activities in the country. The OEDB also under
appropriate circumstances, may suspend, prohibit or prevent workers
from
being placed overseas.
c)
Whenever
circumstances warrant, the OEDB may dispatch an officer to the worksite
to conciliate or mediate employee-employer disputes, in coordination
with
other appropriate government agencies.
SECTION 11.
Welfare
Services. — The OEDB shall establish and support a Secretariat for the
Welfare Fund for Overseas Workers (Welfund) in accordance with P. D.
1412
and P. D. 1691. Upon the operationalization of the Welfare Fund under
P.
D. 1694, the functions and responsibilities of such Secretariat shall
be
assumed by the Welfund.
SECTION 12.
Foreign exchange. — The OEDB shall develop and monitor the compliance
with
the foreign exchange remittance requirements under this Title by
employers
and workers. It shall establish an office in the OEDB for this purpose
in coordination with relevant government agencies.cralaw:red
SECTION 13.
Auxiliary services. — The OEDB may, upon approval of its Board,
initiate,
organize, and establish auxiliary services in support of the overseas
employment
development program.cralaw:red
SECTION 14.
Overseas information system. — The OEDB shall, in coordination with
relevant
agencies, establish a system of gathering, collating, evaluating and
disseminating
data and information concerning the Department's overseas employment
program.cralaw:red
SECTION 15.
Fees and other charges. — The OEDB shall collect reasonable
administrative
or service fees from employers. It shall not collect service fee from
workers.cralaw:red
SECTION 16.
Authority to issue rules. — The OEDB shall issue rules and regulations,
instructions or orders governing its functions and responsibilities.
RULE X
National Seamen
Board
SECTION 1. Recruitment
and placement of seamen. — Foreign shipping companies and domestic
shipping
companies owning or operating vessels engaged in overseas shipping
shall
hire Filipino seamen through the National Seamen Board. For this
purpose,
the Board shall maintain a complete registry of seamen indicating their
categories or ratings and such other qualifications as may be
appropriate.cralaw:red
SECTION 2. Requirements
for hiring through agents or representatives. — Foreign shipping
companies
may hire through duly authorized shipping or manning agents if the
latter
comply with the following requirements:
(a)
Registration with the Securities and Exchange Commission or the Bureau
of Domestic Trade, as the case may be;
(b)
Submission
to the Board of a special power of attorney from their foreign
principals
which shall include the power to sue and be sued in their behalf;
(c)
Submission
to the Board for approval of the employment contracts, salary scales
and
other documents the Board may require;
(d)
Submission
to the Board of their agency or manning contracts with their foreign
principals;
and
(e) Other
requirements
the Board may impose.
SECTION 3.
Power
to modify and revise hiring procedures. — The Board may amend, alter or
modify the manner and/or procedure of recruitment, hiring and placement
of seamen to make them more responsive to the demands for Filipino
seamen.
SECTION 4. Registration
of Seamen. — All seamen applicants should register with the Board when
applying with an authorized shipping or manning agent for employment on
board a foreign-going vessel.cralaw:red
SECTION 5. Qualifications
for registration. — To qualify for registration, an applicant must:
(a)
Be a Filipino citizen;
(b) Be at
least
18 years of age;
(c) Be
physically
and mentally fit for employment as a seaman; and
(d) Have
adequate
training or experience for employment as seaman.
SECTION 6.
Supporting
documents. — The applicant shall also submit the following documents to
complete his registration:
(a)
Professional license;
(b)
Diploma
or certification of educational and other training;
(c) Seaman
Continuous
Discharge Book;
(d)
Certificate
of employment and/or service record; and
(e) Other
documents
the Board may require.
SECTION 7.
Power
to hear and decide cases. — The Board shall have original and exclusive
jurisdiction over disputes arising out of or in connection with, the
employment
of all Filipino seamen on board vessels engaged in overseas trade. Its
decision in such cases shall be appealable by any aggrieved party to
the
National Labor Relations Commission within the same period and upon the
same grounds provided in Article 223 of the Code.
SECTION 8. Model
contract of employment. — The Board shall adopt a standard format of
service
agreement in accordance with pertinent labor and special legislations
and
the prevailing standards set by applicable International Labor
Organization
Conventions. The standard format shall set the minimum standards of the
terms and conditions to govern the employment of Filipino seafarers,
but
in no case shall a shipboard employment contract be allowed where the
same
provides for benefits less than those enumerated in the model
employment
contract, or in any way conflict with any other provision embodied in
the
standard format.cralaw:red
SECTION 9. Sanctions.
— The Board may ban, prohibit or prevent foreign shipping companies,
their
agents or representatives from hiring Filipino seamen if they are shown
to have repeatedly or grossly violated pertinent provisions of the
Code,
these rules and regulations and issuances of the Department of Labor
and
Employment, the Board and the Central Bank of the Philippines.cralaw:red
SECTION 10.
No service charge. — No fees shall be charged from the seamen for
services
in connection with their recruitment and placement. All expenses for
hiring
seamen shall be shouldered by foreign shipping principals.cralaw:red
SECTION 11.
Fees from employers. — The Board shall collect from shipping companies
fees to cover reasonable expenses of recruitment and placement of
seamen
hired through the Board.cralaw:red
SECTION 12.
Board to issue rules and regulations. — The Board shall issue rules and
regulations governing its functions and responsibilities.
RULE XI
Disputes
Involving
Land-Based Overseas Contract Workers
SECTION 1. Scope.
— This Rule shall govern the adjudication of complaints for violations
of contracts or employer-employee relations dispute arising from the
recruitment,
placement and employment of land-based overseas contract workers,
except
cases involving workers recruited through the OEDB.cralaw:red
SECTION 2. Jurisdiction.
— The regional offices of the Department shall have the original and
exclusive
jurisdiction over all matters or cases involving Filipino workers for
overseas
employment except seamen: Provided, that the Bureau shall, in the case
of the National Capital Region, exercise such power. The decisions of
the
regional offices or the Bureau shall be appealable to the National
Labor
Relations Commission within the same period and upon the same grounds
provided
in Article 223 of the Code.cralaw:red
SECTION 3. Who
may file. — Any aggrieved worker or his beneficiaries may file a
complaint
against any placement agency, authority holder construction contractor
or foreign based employer-principal or the latter's authorized agent or
representative. The employer or his representative may also file a
complaint
against a worker for breach of the employment contract or for other
violations
of the terms and conditions of the employment contract.cralaw:red
SECTION 4. Venue.
— Any complainant may file a complaint with the Bureau or with the
Regional
Office where the contract of employment was originally executed.cralaw:red
SECTION 5. Action
of complaints. — Upon receipt of the complaint the Bureau or the
Regional
Office shall immediately summon the parties for the purpose of
conciliating
the dispute. If the dispute is not settled within fifteen (15) days
from
the date of the first conciliation meeting, the Bureau Director shall
hear
and decide the case; where the case falls under the jurisdiction of the
Regional Office, the Regional Director shall assign the same to a Labor
Arbiter for compulsory arbitration.
RULE XII
Illegal
Recruitment
SECTION 1. Basis
for recommending arrest and detention. — The Secretary may recommend to
the appropriate authority the arrest and detention of any person for
illegal
recruitment if he is satisfied from the preliminary examination
conducted
by him or by his duly authorized representative that the act
constituting
illegal recruitment has been committed and that the particular person
has
committed it.cralaw:red
SECTION 2. Preliminary
examination. — Preliminary examination shall be considered as
sufficient
basis for recommending arrest and detention if the witness or witnesses
have been examined personally by the Secretary or his duly authorized
representative
and the examination is reduced to writing under oath in the form of
searching
questions and answers.cralaw:red
SECTION 3. Secretariat
on illegal recruitment. — The Bureau shall serve as the secretariat of
the inter-agency Council on Illegal Recruitment established under LOI
324.
It shall provide the necessary personnel, facilities and support
services
to the campaign against illegal recruitment and shall coordinate
activities
for the council for such purpose.
RULE
XIII
Foreign
Exchange
Remittance
SECTION 1. Coverage.
— This Rule shall apply to every contract worker and seaman recruits.
It
shall also apply to licensed or authorized recruiters and/or their
foreign
principals or employers.cralaw:red
SECTION 2. Obligation
to remit. — It shall be mandatory for a worker or seaman to remit
regularly
a portion of his foreign exchange earnings abroad to his beneficiary,
through
the Philippine banking system. This obligation shall be stipulated in
the
following documents:
a)
Contract of employment and/or service between foreign based employer
and
a worker;
b)
Affidavit
of undertaking whereby a worker obligates himself to remit a portion of
his earnings to his beneficiaries; and
c)
Application
for a license or authority to recruit workers.
SECTION 2-A.
Obligation
to Report. — Agencies and entities shall submit periodic reports to the
Central Bank of the Philippines on their foreign exchange earnings,
copies
of which shall be furnished by the Administration.
SECTION 3. Amount
of foreign exchange remittances. — The amount of foreign exchange
remittance
referred to in Section 2 hereof, shall be a minimum of 70% of the
overseas
workers basic salary in foreign exchange in the case of construction
and
sea-based workers; and a minimum of 50% in the case of other workers.cralaw:red
SECTION 4. Form
of Remittance. — Remittance of foreign exchange may be done
individually
by a worker or collectively through an employer under a payroll
deduction
scheme, to be approved by the Bureau, NSB, OEDB as appropriate.cralaw:red
SECTION 5. Procedure
of remittance. — (a) The workers, prior to departure, shall open a
deposit
account in favor of his beneficiary in any Philippine bank. A foreign
currency
account may also be opened by the worker.cralaw:red
The applicant
shall inform the Bureau, the OEDB or NSB, as the case may be his
deposit
account number.cralaw:red
(b) In the case
of seamen, construction workers and other organized work crews
involving
at least twenty-five (25) workers, the foreign currency/peso account
shall
be opened by the employer with any Philippine bank upon the signing of
the employment contract. The account shall be accompanied by a covering
letter of nomination of beneficiaries and the date of payment of the
allotment
to the beneficiary as may be stipulated by the employee and the
licensed
agency, manning agent or construction contractor.cralaw:red
(c) At the end
of every period as may be stipulated in the notice as payment, the
licensed
agency, construction contractor or manning agent shall prepare a
payroll
sheet indicating the names of workers covered by the scheme, their
beneficiaries,
their individual bank account numbers, the amount of foreign currency
remitted
and the peso equivalent thereof. This payroll sheet, together with the
peso check representing the remittances, shall be forwarded to the bank
concerned with instruction to credit the account of the worker or
beneficiaries.
A copy of the payroll sheet shall be furnished to the Bureau, OEDB or
NSB
as the case may be, on a monthly basis.cralaw:red
SECTION 6. Permanent
Secretariat. — A permanent inter-agency Secretariat in the Department
of
Labor and Employment to direct and monitor implementation of this Rule
is hereby established. It shall have the power and duty to:
(a)
Avail itself of the assistance of the agencies represented in the
Foreign
Exchange Remittance Committee created under Letter of Instruction No.
90
to enable it to effectively carry out its duties.
(b) Assist
the
committee in carrying out a continuing informational and educational
campaign
to promote foreign exchange remittance by workers.
(c)
Establish
and maintain an information monitoring system to determine periodically
the status of remittances, particularly the number of remitters, amount
and nature of remittances, amounts actually received by the
beneficiaries,
etc.
SECTION 7.
Responsibility
of employer or his representative. — The employer or his representative
shall undertake the proper implementation of this Rule by providing
facilities
to effect the remittances and monitoring of foreign exchange earnings.
Failure to do so shall be subject to appropriate sanctions specified in
the Code and Central Bank regulations.
SECTION 8. Failure
or refusal to remit and trafficking in foreign currency. — A worker who
willfully fails or refuses to remit the assigned portion of his foreign
exchange earnings or is found to be engaged or is engaging in the
illegal
traffic or blackmarket of foreign exchange shall be liable under this
Code
and existing Central Bank rules.
RULE XIV
Employment
of Aliens
SECTION 1. Coverage.
— This Rule shall apply to all aliens employed or seeking employment in
the Philippines, and their present or prospective employers.cralaw:red
SECTION 2. Submission
of list. — All employers employing foreign nationals, whether resident
or non-resident shall submit a list of such nationals to the Bureau
indicating
their names, citizenship, foreign and local addresses; nature of
employment
and status of stay in the Philippines.cralaw:red
SECTION 3. Registration
of resident aliens. — All employed resident aliens shall register with
the Bureau under such guidelines as may be issued by it.cralaw:red
SECTION 4. Employment
permit required for entry. — No alien seeking employment, whether on
resident
or non-resident status, may enter the Philippines without first
securing
an employment permit from the Department of Labor and Employment. If an
alien enters the country under a non-working visa and wishes to be
employed
thereafter, he may only be allowed to be employed upon presentation of
a duly approved employment permit.cralaw:red
SECTION 5. Requirements
for employment permit application. — The application for an employment
permit shall be accompanied by the following:
(a)
Curriculum vitae duly signed by the applicant indicating his
educational
background, his work experience and other data showing that he
possesses
high technical skills in his trade or profession;
(b)
Contract
of employment between the employer and the principal which shall embody
the following, among others:
(1)
That the non-resident alien worker shall comply with all applicable
laws
and rules and regulations of the Philippines;
(2) That
the
non-resident alien worker and the employer shall bind themselves to
train
at least two (2) Filipino understudies for a period to be determined by
the Secretary of Labor and Employment; and
(3) That
he
shall not engage in any gainful employment other than that for which he
was issued a permit.
(c) A
designation
by the employer of at least two (2) understudies for every alien
worker.
Such understudies must be the most ranking regular employees in the
section
or department for which the expatriates are being hired to ensure the
actual
transfer of technology.
SECTION 6.
Issuances
of employment permit. — The Secretary of Labor and Employment may issue
an employment permit to the applicant based on:
a)
Compliance by the applicant and his employer with the requirements of
Section
2 hereof;
b) Report
of
the Bureau Director as to the availability or non-availability of any
person
in the Philippines who is competent, able, and willing to do the job
for
which the services of the applicant are desired;
c) His
assessment
as to whether or not the employment of the applicant will redound to
the
national interest;
d)
Admissibility
of the alien as certified by the Commission on Immigration and
Deportation;
e) The
recommendation
of the Board of Investments or other appropriate government agencies if
the applicant will be employed in preferred areas of investments or in
accordance with imperatives of economic developments; and
f)
Payments
of a P100.00 fee.
SECTION 7.
Duration
of employment permit. — Subject to renewal upon showing of good cause,
the employment permit shall be valid for a minimum period of one (1)
year
starting from the date of its issuance unless sooner revoked by the
Secretary
of Labor and Employment for violation of any provisions of the Code or
of these Rules.
SECTION 8. Advice
to Commission on Immigration and Deportation. — The Bureau shall advice
the Commission on Immigration and Deportation on the issuance of an
employment
permit to an applicant.cralaw:red
SECTION 9. Understudy
Training Program. — The employer shall submit a training program for
his
understudies to the Bureau within thirty (30) days upon arrival of the
alien workers. The supervision of the training program shall be the
responsibility
of the Bureau and shall be in accordance with standards established by
the Secretary of Labor and Employment.
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