RECRUITMENT AND PLACEMENT OF WORKERS

* worker- means any member of the labor

force, whether employed or unemployed.
* recruitment and placement- refers to any act
of
canvassing,
enlisting,
contracting,
transporting, utilizing, hiring or procuring
workers and includes referrals, contract services
and promising or advertising for employment,
locally or abroad.
Provided, that any person or entity
which in any manner, offer or promises for a
fee, employment to two or more persons shall
be deemed engaged in recruitment and
placement.
- used tocreate presumption that an
individual or entity is engaged in recruitment
and placement.
- the number of persons dealt with is
not essential ingredient. Any acts mentioned
will constitute recruitment and placement even
if only one prospective worker is involved.
* license- a document issued by DOLE
authorizing a person or entity to operate a
private employment agency.
*authority- a document issued by DOLE
authorizing a person or association to engage in
recruitment and placement activities as private
recruitment entity.
*private fee-charging employment agency- any
person or entity engaged in the recruitment and
placement of workers for a fee which is
charged, directly and indirectly from the
workers or employers or both.
*private recruitment entity- any person or
assoc engaged in the recruitment and
placement of workers, locally or overseas
without charging directly or indirectly any fee
from the workers or employers.

POWERS OF THE SECRETARY OF LABOR AND

EMPLOYMENT

To organize and establish new

establishment offices in addition to the
existing employment offices.

To organize and establish a nationwide

job clearance and information system
to inform applicants registering with a
particular employment office of job
opportunities here and abroad.

To organize a program that will

facilitate occupational, industrial and
geographical mobility of labor and
provide assistance in the relocation of
workers from one area to another.

to
require
any
person,
establishment,organization
or
institution to submit such employment
information as may be presecribed by
Sec of Labor.

POWERS OF POEA
1. Regulate private sector participation in
the recruitment and placement of
overseas by licensing and registrations
system.
2. Formulate and implement necessary
system in monitoring the overseas
employment of Filipino.
3. Protect the rights of Filipino workers.
4. Exclusive original and exclusive
jurisdiction to hear and decide
disciplinary cases.
5. Maintain registry of skills for overseas
placements.
6. Recruit and place workers to service the
requirement for trained filipino
workers.
7. Promote and development of skills
8. Undertake
overseas
market
development.

9. Secure the best terms and conditions of

employment
10. Promote and protect the well-being of
filipino workers overseas.
11. Establish a speedy and efficient
enforcement of decisions.
12. Establish
and
maintain
close
relationship and enter into joint
projects with DFA, Phil. Tourism, MIA,
DOJ, DBM snd other relevant entities.
REGULATORY POWERS OF THE POEA
1. Issuance of license
2. Suspension,cancellation or revocation
of license
3. Approval of transfer of business address
4. Approval establishment of executive
office outside of the registered address
5. Accreditation of principals or projects
6. Revocation of accreditation
7. Closure of agencies engaged in illegal
recruitment
8. Registration of any charge in the
composition of the board of directorsm
officers and personnel of a recruitment
agency.
QUASI-JUDICIAL POWERS OF POEA
The POEA exercises original and
exclusive jurisdiction to hear and decide:
a. Disciplinary cases involving overseas
Filipino workers.
b. All pre-employment cases which are
administrative in character, involving or arising
out of recruitment laws, rules and regulations
including money claims or violations of the
conditions for issuance of license to recruit
workers.

RECRUITMENT AND PLACEMENT BY THE POEA

The POEA is authorized to recruit and
place workers primarily on government-togovernment arrangements and thus service the
hirings of foreign government ministries and
instrumentalities.
REQUIREMENTS to be SUBMITTED to the
EMPLOYER:
1. work permit or visa assurance
2. recruitment order stating the number
and categories of workers neededm
compensation,
benefits,
qualification,
guidelines, testing procedures etc,
3. Model employment contract
4. other documents which the POEA
may find necessary.
FORMALIZING a RECRUITMENT AGREEMENT.
Employers hiring through POEA should
formalize a recruitment agreement which
contains the following:
1. responsibilities of the parties to the
agreement
2. selection and documentation procedures
3. fee schedules and terms of payement
4. manner and facilities for remittance of
workers salary
5. grievance machinery for workers
6. validity and revocation of the agreement.
PROCEDURES
IN
RECRUITMENT
AND
PLACEMENT
1. interview and selection
2. Medical Examination
3. Travel Arrangements
4. Orientation- before departure for the
worksite, hired workers shall undergo PreDepature Orientation Seminar (PDOS)

NOTES:
-it is the power to adjudicate cases
particularly for the violation of rules in
recruitment.
- Administartive FN: sanction, penalize,
revoke licenses and regualtory power.

DISQUALIFICATION (employee)
A. submission of fake documents
B. breach of code of discipline for Filipino
overseas workers
C. Tampering with documents issued by POEA.
D. other grounds determined by POEA

BAN ON DIRECT-HIRING
- No employer may hire a Filipino
worker for overseas employment except
through the Boards and entities authorized by
DOLE.
- Direct hiring by members of the
diplomatic corps, International Organizations
and other employes as may be allowed by DOLE
is exempted from this provision.
A name hire is also exempted from the
ban including missionaries actually engaged in
missionary work.
* Name hire- is a worker who is able to
secure contract for employment overseas on his
own without the assistance or participation of
an agency. (however, he should still undergo
processing by the POEA.)
FOREIGN SERVICE ROLE AND PARTICIPATION
1. to provide all Filipino workers within their
jurisdiction assistance on all matters arising out
of employment.
2. to insure that Filipino workers are not
exploited or discriminated.
3. to verify and certify as requisite of
authentication the terms and conditions of
employment contracts.
4. to make continuing studies and researches
5. to gather and analyzed information on the
employment situation and probable trends
6. to peform such other duties as may be
required of them from time to time.
- to inform the home country of the status of
workers employed i their respective areas of
assignment.

MANDATORY REMITTANCE
EXCHANGE EARNINGS

OF

FOREIGN

* Mandatory remittance- is the amount or

portion of the basic salary of Overseas Filipino
workers required under existing laws and
regulations to be remitted by the workers to
their beneficiaries in the Philippines and sold for
pesos to the Phils. Banking system.
GENERAL RULE: ALL PERSONS SHOULD HAVE
THEIR MANDATORY REMITTANCE.
EXCEPTIONS:
1. where the workers immediate family
members, dependents, or beneficiaries are
residing with him abroad.
2. Filipino servicemen working in US military
installations.
3. immigrants and Filipino professionals and
employees working with UN agencies or
specialized bodies.
AMOUNT OF REMITTANCE (basic salary)
1. 80% - seamen or mariners
2. 70%- workers of Filipino contractors and
construction companies; doctors, engineers,
teachers, nurses and other professional whose
employment contracts provide for free board
and lodging.
3. 50%- other professionals does not provide
free board and lodging, domestic and other
service workers, other workers falling under the
aforementioned categories.
FAILURE TO REMIT; its penalty
-shall be suspended or excluded from
the list eligible workers for overseas
employment.
-Subsequent violations shall warrant his
repatriation from the job site at the expense of
the employer or at his expense.

- Exclusion from the list or revocation of

licenses or authority to recruit, without
prejudice to other liabilities under existing laws
and regulations.
OBLIGATIONS OF RECRUITMENT AGENCIES
- cause the inward remittance of
foreign exchange payments resulting from their
overseas transactions.
- shall also submit periodic reports to
the BSP on their foreign exchange earnings,
copies of which will be furnished the POEA.

REGULATION
OF
RECRUITMENT
PLACEMENT ACTIVITIES

AND

Secretary of Labor to recruit seafarers for

vessels plying international waters and for
related maritime activities.
NOTES:
upon receipt of an application for
license with complete requirements,
POEA shall require the payment of nonrefundable filing fee and submission
thereof.
Within 15 calendar days from receipt of
such application, POEA shall evaluate
the pertinent documents, whether to
grant or deny the application.
PAYMENT OF FEES AND POSTING OF BONDS

PURPOSE:
- use to insure the success of the
program between the government and private
sector.
PRIVATE SECTOR PARTICIPATION
The following persons or entities in tne
private sector may engage in the recruitment
and placement of workers either for overseas
employment:
1. private employment agency
2. private recruitment entity
3. shipping or manning agency
4. othe person authorized by Secretary
of Labor and Employement.
*Private employment agency with a licenserefers to any person or entity engaged in the
recruitment and placement of workers for a fee
which is charged, directly and indirectly from
the workers or employers or both.
*Private recruitment entity with an authorityrefers to 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.
*Manning agency- refers to any person,
partnership or corporation duly licensed by the

Applicant shall pay a license fee of

P50,000. It shall submit and Escrow
agreement in the amount of P1,000,
000.00, confirmation of escrow deposit
with an accredited reputable bank and
a surety bond of P100,000 from a
bonding company acceptable to POEA
and accredited with the Insurance
Commission.
RENEWAL OF LICENSE
- failure to obtain renewal of its license
within thirty calendar days from expiration
thereof shall be immediately deemed listed and
barred from engaging in recruitment and
placement activities.
REQUIREMENTS:
1.proof of foreign exchange earnings issued by
BSP
2. surety bond duly renewed or revalidated
3. Escrow agreement in the amount of P200,000
with an acrediation of reputable banking corp.
4. replenishment of cash bond
5. proof of financial capavity but not limited to
veified financial statements for past two years.
6. summary of deployment reports
7. summary of payroll reports
8. other requirements as may be imposed by
the POEA.

NOTE:
-POEA shall conduct an inspection of
the premises and pertinent documents of the
applicant
DENIAL of RENEWAL LICENSES
1. failure to conclude recruitment or manning
agreement
2. failure to undertake the minimum levels of
worker deployment and foreign exchange
generation
3. failure to meet the minimum operational
standards and requirements set by POEA.
PRE-EMPLOYMENT TEST
- trade test should only be conducted
only after the agency and or its principal has
interviewed the worker and the latter has prequalified for an existing overseas postion.
-medical
examination
shall
be
conducted only after and or its principal shall
have interviewed and trade tested or have prequalified the worker for an existing overseas
position duly covered by an approved job order.
DOCUMENTARY PROCESSING
- as a pre-requisite for contract
processing with POEA, submit for approval a
recruitment order (RO) or crew order (CO) as
the case may be, using the prescribed form
which shall indicate the names, positions and
salaries of selected contract workers.
a. individual employment contract containing
minimum provisions set by POEA.
b. SEAFARERS- valid seamen service record
book and seafarers registration card
c. Land based- insurance certificate
WORKERs DEPLOYMENT
a. 120 calendar days from the date of signing of
EO for land based workers.

b. 30 calendar days from the date of processing

by the POEA of the employment contract for
seafarers.
REPATRIATION
- OWWA sghall undertake the
repatriation in case of war, epidemic, disasters
or calamities, natural or manmade and the like.
The Administration shall reimbursed by the
responsible principal or agency.
DISCUSSION:
RULE V
PLACEMENT
COSTS

FEES

AND DOCUMENTATION

Section 1. Fees Chargeable Against Principals. Agencies shall charge from their principals a
service or manning fee to cover services
rendered in the recruitment, documentation
and placement of workers.
Section 2. Fees/Costs Chargeable from Workers.
a. Private employment agencies may charge
placement fees as may be authorized by the
Secretary from a hired worker to cover costs of
placement and documentation services such as
trade or skill testing, medical examination,
passport, visa, clearances, inoculation, airport
terminal fee, notarials, among others.
The above charge shall be collected from a
hired worker only after he has signed the
employment contract and shall be covered by
receipts clearly showing the amount paid.
b. Manning agencies shall not charge any fee
from seafarer-applicants for its recruitment and
placement services.
Section 3. Prohibition on Charging of Other
Fees. - No other fees or charges including
processing fees shall be imposed against any
worker, except when authorized by law.
Section
4.
Seafarers
Welfare
Fund
Contribution. - Every seafarer processed for
deployment abroad shall contribute to the
seafarers Welfare Fund.

Section 5. Charges Deductible from Fees by

Withdrawing Workers. - In case of withdrawal
of the worker within one hundred twenty (!20)
calendar days from the signing of the
employment contract, the agency 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.

PERSONS DISQUALIFIED FROM ENGAGING

RECRUITMENT AND PLACEMENT
1. travel agencies and sales agencies of airline
companies
2. officers or members of the Board of any
corporation or partnership engaged in travel
agency.
3. Corporations or partnerships, when any of its
officers, members, board, partners, is also an
officer.
4. Persons, partnerships or corporations which
have deregatory records
a. public offices
b. private agencies
c. shipping management corp
d. other employees authorized by DOLE
CITIZENSHIP- only Filipino citizens or
corporations, partnership at least 75% of the
authorized and voting capitals tock of which is
owned and controlled by Filipino citizens shall
be permitted in the recruitment and placement
of workers, locally or overseas.
LIMITATIONS ON THE USE OF LICENSE- the
license may be extended upon request of the
heirs, to continue only for the purpose of
winding up business operations.
CHANGE OF OWNERSHIP- shall cause the
automatic revocation of the license. The new

owner shall be required to apply for a license in

accordance with the rules.
Change of relationship may also cause
of revocation if it is materially interrupts the
course of business or results in actual
dissolution of partnership.

FEES TO BE PAID BY WORKERS- any person

applying with a private fee charging
employment agency for employment shall not
be charged any fee until he has obtained
employment through its efforts or has actually
commenved employment.
REGULATORY AND VISITORIAL POWERS
- sole power of Secretary of Labor.
-Or his duly authorized representative
at any time. (office hours)
ILLEGAL RECRUITMENT
Recruitment activities including
prohibited practices, undertaken by nonlicensees or non-holders of authority.
A person is guilty of illegal recruitment when he
gives the impression that he has the power to
send workers abroad for work such that the
latter were convinced to part with their money
in order to be so employed.
FOUR TYPES

1. simple/ licensee- committed by a licensee or

holder of authority against one or two persons
only.
2. non-licensee- committed by any person who
is neither a licensee or holder of authority.
3. syndicated- committed by a syndicate if
carried out by a group of three or more persons
in conspiracy or confederation with one
another. ( # of persons committed)

4. large-scale or qualified- committed against

three or more persons, individually or as a
group despite necessary license from POEA.
Essential elements:
1. the offender is a licensee/non-licensee or
holder/non-holder of authority engaged in
therecruitment and placement of workers.
2. the offender undertakes either any
recruitment activities defined under or any
prohibited practices enumerated under art 34
* recruitment agency is solidarily liable with a
foreign principal for the unpaid salaries of a
worker it recruited for employment.
*life time and a fine of not less than 500,000
nor more than 1,000,000 for large scale,
syndicated and economic sabotage
*ordinary- imprisonment not less than 6 years
and one day but not more than twelve years
and a fine of not less than 200, 000 nor more
than 500,000.
PRESCRIPTIVE PERIODS
- illegal recruitment cases shall prescribe in 5
years.
- however, if the illegal recruitment cases
constitute economic sabotage, the same shall
prescribe in twenty 20 years.