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PRESIDENTIAL DECREE NO. 1412
PRESIDENTIAL DECREE NO. 1412 -
FURTHER AMENDING CERTAIN PROVISIONS OF BOOK I, PRESIDENTIAL DECREE NO.
442, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
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WHEREAS,
the employment promotion system must respond positively to the changing
political and economic realities and benefit from the relevant
experience of the last five years;chanroblesvirtualawlibrary
WHEREAS, recent changes have rendered the present system increasingly
limited to pursue the mandate to promote full employment in an
organized and systematic manner;chanroblesvirtualawlibrary
WHEREAS, government policy mandates the full encouragement and
participation of the private sector in national development activities
and in the employment promotion effort.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the power vested in me by the Constitution, do hereby
order and decree: chanroblesvirtualawlibrary
Section 1. Articles 12 (f), 13, 15, 16, 17, 18,
19(a), 23, 25, 27, 28, 30, 31, 32 and 38 of Book 1, of the Labor Code
are hereby amended to read as follows:cralaw:red
"Article 12. Declaration of Policy. —
(f) It is the policy of the State: To strengthen the
network of public employment offices and rationalize the participation
of the private sector in the recruitment and placement of workers,
locally and overseas, to serve national development objectives."
"Article 13. Definitions —
(c) "Private employment agency" means any person or
entity engaged in the recruitment and placement of workers for a fee
which is charged directly or indirectly, from the workers or employers
or both. chanroblesvirtualawlibrary
(d) "License" means a document issued by the
Department of Labor authorizing a person or entity to operate a private
employment agency.
(e) "Private recruitment entity" means any person or
association engaged in the recruitment and placement of workers,
locally or overseas, without charging, directly or indirectly, any fee
from the workers or employers.
(f) "Authority" means a document issued by the
Department of Labor authorizing a person or association to engage in
recruitment and placement activities as a private recruitment entity.
"Article 15. Bureau of Employment Services. —
(a) The Bureau of Employment Services shall develop
and implement a comprehensive employment program. It shall have the
power and duty:cralaw:red
1. To implement the employment promotion objectives
of this Title;chanroblesvirtualawlibrary
2. To establish and operate public employment offices
and provide for free placement services to workers;chanroblesvirtualawlibrary
3. To regulate and supervise private sector
participation in the recruitment and placement of workers, locally and
overseas, under such rules and regulations as may be issued by the
Secretary of Labor;chanroblesvirtualawlibrary
4. To initiate employment programs designed to
benefit disadvantaged groups and communities;chanroblesvirtualawlibrary
5. To establish and maintain a registration and/or
work permit system to regulate the employment of aliens; chanroblesvirtualawlibrary
6. To develop and maintain a labor market information
system ind of proper manpower and development planning;chanroblesvirtualawlibrary
7. To develop and maintain a responsive vocational
guidance and testing system ind of proper human resources allocation;
and
8. To maintain a registry of skills, except seaman.
(b) The Bureau shall have the original and exclusive
jurisdiction over all matters or cases involving employer-employee
relations including money claims, arising out of or by virtue of any
law or contracts involving Filipino workers for overseas employment,
except seamen. The decisions of the Bureau shall be final and executory
subject to appeal to the Secretary of Labor whose decision shall be
final and inappealable. chanroblesvirtualawlibrary
(c) The Bureau shall, subject to the approval of the
Secretary of Labor, have the power to impose and collect fees which
shall be deposited to its own account and be used by it to promote its
objectives.
"Article 16. Private Recruitment. — Except as
provided in Chapter II of this Title, no person or entity, other than
the public employment offices and the OEDB for overseas employment,
shall engage in the recruitment and placement of workers.
"Article 17. Overseas Employment Development Board. —
(a) An Overseas Employment Development Board is
hereby created to undertake a systematic program for overseas
employment of Filipino workers, other than seamen, in excess of
domestic needs, to protect their rights to fair and equitable
employment practices, and to promote the welfare of Filipino emigrants.
It shall have the power and duty. chanroblesvirtualawlibrary
1. To recruit and place workers to service the
requirements of overseas employers for trained and competent Filipino
workers;chanroblesvirtualawlibrary
2. To promote the development of skills and the
careful selection of Filipino workers for overseas employment;chanroblesvirtualawlibrary
3. To promote the overseas employment of Filipino
workers;chanroblesvirtualawlibrary
4. To secure the best possible terms and conditions
of employment of Filipino contract workers and to ensure compliance
therewith;chanroblesvirtualawlibrary
5. To generate foreign exchange from the earnings of
Filipinos engaged under its program; and
6. To promote the well-being of Filipino workers
overseas for which it may establish services and activities.
(b) The Board is authorized to establish offices
abroad to attain the above objectives.
"Article 18. Ban on Direct Hiring. — No employer may
hire a Filipino worker for overseas employment except through the
Boards and entities authorized by the Secretary of Labor. Direct hiring
by members of the diplomatic service, officials and employees of
international organizations and such other employers as may be allowed
by the Secretary of Labor is exempted from this provision.
"Article 19. Office of Emigrant Affairs. —
(a) Pursuant to the National Policy to maintain close
ties with Filipino migrant communities and promote their welfare as
well as establish a data bank ind of national manpower policy
formulation, an Office of Emigrant Affairs is hereby created in the
Department of Labor. The Office shall be a unit at the Office of
Secretary and shall initially be manned and operated by such personnel
and through such funding as are available within the Department and its
attached agencies. Thereafter, its appropriation shall be made part of
the regular General Appropriations Decree.
(b) The office shall, among others, promote the well
being of emigrants and maintain their close-link to the homeland by:cralaw:red
1) serving as a liaison with migrant communities;chanroblesvirtualawlibrary
2) provision of welfare and cultural services; chanroblesvirtualawlibrary
3) promote and facilitate re-integration of migrants
into the national mainstream;chanroblesvirtualawlibrary
4) promote economic, political and cultural ties with
the communities and;chanroblesvirtualawlibrary
5) generally to undertake such activities as may be
appropriate to enhance such cooperative links.
"Article 23. Composition of the Boards. —
a) The OEDB shall be composed of the Secretary of
Labor as Chairman, the Undersecretary of Labor as Vice-Chairman, and a
representative each of the Department of Foreign Affairs, the
Department of National Defense, the Central Bank, the Department of
Education and Culture, the National Manpower and Youth Council, the
Bureau of Employment Services, a worker's organization and an
employer's organization and the Executive Director of the OEDB as
members; chanroblesvirtualawlibrary
b) The National Seamen Board shall be composed of the
Secretary of Labor as Chairman, the Undersecretary of Labor as
Vice-Chairman, the Commandant of the Philippine Coast Guard, and a
representative each of the Department of Foreign Affairs, the
Department of Education and Culture, the Central Bank, the Maritime
Industry Authority, the Bureau of Employment Services, a National
Shipping Association and the Executive Director of the NSB as members.
The members of the Boards shall receive allowances to be determined by
the Boards which shall not be more than P2,000 per month.
"Article 25. Private Sector Participation in the
Recruitment and Placement of Workers. — Pursuant to national
development objectives and in order to harness and maximize the use of
private sector resources and initiative in the development and
implementation of a comprehensive employment program, the private
employment sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and
regulations, as may be issued by the Secretary of Labor.
"Article 27. 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.
"Article 30. Registration Fees. — The Secretary of
Labor shall promulgate a schedule of fees for the registration of all
applicants for license or authority.
"Article 31. Bonds. — All applicants for license or
authority shall post such cash and surety bonds as determined by the
Secretary of Labor to guarantee compliance with prescribed recruitment
procedures, rules and regulations, and terms and conditions of
employment as appropriate. chanroblesvirtualawlibrary
"Article 32. Fees to be Paid by Workers. — Any person
applying with a private fee charging employment agency for employment
assistance shall not be charged any fee until he has obtained
employment thru his efforts or has actually commenced employment. Such
fee must be always covered with approved receipt clearly showing the
amount paid. The Secretary of Labor shall promulgate a schedule of
allowable fees.
"Article 38. Illegal Recruitment. —
a) Any recruitment activities to be undertaken by
non-licenses or non-holders of authority shall be deemed illegal and
punishable under Art. 39 of this Code.
b) The Secretary of Labor or his duly authorized
representative shall have the power to recommend the arrest and
detention of such non-licensee or non-holder of authority if after
proper investigation it is determined that his activities constitute a
danger to national security and public order or will lead to further
exploitation of job seekers. chanroblesvirtualawlibrary
"Article 41. Prohibition and Penal Sanctions. —
a) After the issuance of employment permit, the alien
shall not transfer to another job or change his employer without prior
approval of the Secretary of Labor.
b) Any non-resident alien who shall take up
employment in violation of the provision of this Title and its
implementing rules and regulations shall be punished in accordance with
the provision of Article 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to deportation after
service of his sentence.
Section 2. All laws, decrees, general orders and
letters of instructions inconsistent with or contrary to the Decree are
hereby repealed or amended accordingly.
Section 3. This Decree shall take effect immediately.
Done in the City of Manila this
9th day of June in the year of Our Lord, Nineteen Hundred and
seventy-eight.
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