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Labor Law (Recruitment and Placement)

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II. RECRUITMENT AND PLACEMENT g.

“Private employment agency or agency” refers to any


person, partnership or corporation engaged in the
II.A. LOCAL EMPLOYMENT recruitment and placement of workers for local employment.
It also refers to any individual, partnership, corporation or
 Art. 25, Labor Code entity licensed by the Department of Labor and Employment
(DOLE) to engage in the recruitment and placement of
Chapter II: REGULATION OF RECRUITMENT AND Kasambahay for local employment.
PLACEMENT ACTIVITIES
h. “License” refers to a document issued by the Secretary
Art. 25. Private sector participation in the recruitment through the Regional Director authorizing a person,
and placement of workers – Pursuant to national partnership or corporation to operate a private employment
development objectives and in order to harness and agency.
maximize the use of private sector resources and initiative in
the development and implementation of a comprehensive i. Authority to operate branch office” refers to a document
employment program, the private employment sector shall issued by the Secretary through the Regional Director
participate in the recruitment and placement of workers, authorizing a private employment agency to establish and
locally and overseas, under such guidelines, rules and operate a branch office.
regulations as may be issued by the Secretary of Labor.
j. “Authority to recruit” refers to a document issued by the
 Revised Rules and Regulations Governing Private Secretary through the Regional Director authorizing a person
Recruitment and Placement Agency for Local to conduct recruitment activities for local employment on
Employment [D.O. 141-14, Series of 2014] behalf of a private employment agency.

Section 1.Declaration of Policy – it is the policy of the


Department of Labor and Employment: What are the 3 contracts in local recruitment and
placement?
a. To recognize the participation of the private sector in
the recruitment and placement of workers for local q. “Recruitment contract” refers to the agreement entered
employment, to promote equality of employment into between a private employment agency or its
opportunity and treatment in access to employment representative and a recruit stating the terms and conditions
and particular occupations as part of the over-all thrust of the recruitment in a language known and understood by
for national development; the recruit.
b. To promote employment creation as one of the
principles under the decent work agenda; r. “Employment contract” refers to the individual written
c. To ensure compliance with the pertinent provisions of agreement between the employer and the worker stating
the Labor Code, as amended, Anti-Trafficking in clearly the terms and conditions of employment in a
Persons Act of 2003, Anti-Child Labor Laws, and language known and understood by the worker.
other related laws, rules and regulations;
d. To protect every citizen desiring to avail of the services s. “Service contract” refers to the agreement entered into
of private employment agencies by ensuring the best between the employer and the private employment agency
possible terms and conditions of employment; and stating clearly the terms and conditions of the service.
e. To cooperate with government agencies and duly
registered non-government organizations in
protecting and promoting the welfare of Filipino Section 4. Qualifications for a license to operate a private
jobseekers. employment agency:

Section 2. Coverage. – These rules shall apply to every a. For Partnership or Corporation – 75% of authorized
person, partnership or corporation intending to engage or capital stock is owned or controlled by Filipino citizens.
engaged in the recruitment and placement for local
employment through an agency. For single Proprietorship – Filipino Citizens

Persons, partnerships or corporations in the Philippines b. For single Proprietorship – minimum net worth of P1M
intending to engage or engaged in the recruitment and
placement through the electronic medium shall be covered For Partnership or Corporation – minimum paid up
by the applicable provisions of these rules. capital of P1M

The relevant provisions of Republic Act No. 10361 entitled c. Not otherwise disqualified by law or other gov’t rules
“An Act Instituting Policies for the Protection and Welfare of and regulations to engage in the business of
Domestic Workers” shall govern the recruitment and recruitment and placement of workers for local
placement of domestic workers within local employment. employment.

Section 3. Definition of terms. – The following terms shall Section 5. Disqualification. – The following are not
have the meanings indicated hereunder: qualified to engage in the business of recruitment and
placement for local employment:
a. Those who are convicted of illegal recruitment, contract and determine if they are fit, capable and
trafficking in persons, anti-child labor violation, or willing to work.
crimes involving moral turpitude;
b. Those against whom probable cause or prima facie
finding of guilt for illegal recruitment or other related 4. Submit to the Regional Office where the recruitment
cases exist particularly to owners or directors of was undertaken a duly executed and notarized
agencies who have committed illegal recruitment or recruitment contract between the agency and the
other related cases. recruit.
c. Those agencies whose licenses have been previously
revoked or cancelled by the Department under Sec. 5. Request the Regional/Field Office or the PESO or
54 of these rules. organization duly accredited by the Department in the
d. Cooperatives whether registered or not under the area of origin to conduct a pre-departure orientation to
Cooperative Act of the Philippines. the recruits.
e. Law enforcers and any official and employee of the
Department of Labor and Employment (DOLE). 6. Submit a list of the names and addresses of its recruits,
f. Sole proprietors of duly licensed agencies are together with a copy of documents specified in
prohibited from securing another license to engage in procedure (b) above to the Regional Office or the
recruitment and placement. appropriate Field Office where recruitment process was
g. Sole proprietors, partnerships or corporations licensed undertaken for appropriate authentication and
to engage in private recruitment and placement for local validation.
employment are prohibited from engaging in job
contracting or sub contracting activities. 7. Request the concerned Regional/Field Office of origin
for a certification that the recruitment activity is in
Section16. Change of Ownerships accordance with these rules, and furnish a copy thereof
An agency desiring to transfer ownership shall surrender its the PESO/ Local Government Unit concerned, the
license to the issuing Regional Office. The new owner/s of Regional Office, Marine Police/Coast Guard/ Philippine
the agency must apply for a new license. National Police, Philippine Ports Authority/ Air
Transportation Office, having jurisdiction over the place
 Single proprietorship – shall cause the automatic of destination, as the case may be.
revocation of the license. In case of death of a single
proprietor, the license may be extended for not more PLACEMENT PROCEDURES
than six (6) months from the death of the proprietor
upon the request of the heirs to continue only for the Section 41. Placement procedures. – The following
purpose of winding up the business operations or until procedures shall be followed by the agency in the placement
its expiration whichever comes first. of the recruits:

 Partnership – A change in the relationship among the 1. Upon arrival of the recruits at the place of destination
partners in a partnership shall cause the immediate and while waiting for the actual placement, the agency
dissolution of the partnership resulting to the or its authorized representative must provide free,
automatic revocation of the license. convenient and separate housing accommodation for
men and women.
RECRUITMENT PROCEDURES
2. The agency shall bring the recruit to the prospective
Section 40. Recruitment procedures. – The owner or employer as per job order (job vacancies) and shall
authorized representative of the agency must abide by the arrange for an interview between the employer and the
following procedures: recruit within three (3) days upon arrival.

1. Present a copy of a valid license, the authority to recruit 3. The agency shall prepare the employment contract
and notarized job order to the Public Employment based on Standard Employment Contract stating the
Service Office (PESO) and Barangay Office where the terms and conditions of employment including among
recruitment activity is to be undertaken; others, the monthly salary and mode of payment,
nature of work, benefits mandated by law and other
2. Require the recruit to submit a copy of the following: Bio benefits mutually agreed by both parties.
data or comprehensive resume; Birth certificate from
the Local Civil Registrar or National Statistics Office; 4. Prior to placement, the agency shall provide Pre-
Original medical certificate issued by a government Employment Orientation (PEO), on such matters as the
physician or by a reputable private medical practitioner; rights and responsibilities of the workers, obligation of
and Original barangay clearance issued by the employers, grievance mechanism, location/ address
Barangay Chairman who has jurisdiction over the place and contact details for the agency and information on
of residence of the recruit. other possible support groups. The Bureau shall
formulate the appropriate module of the PEO to be
3. Conduct an interview after evaluating the documents adopted by the agency.
submitted by the applicant/s. Explain the recruitment
5. In the case of domestic workers,
a. The agency shall require the employer to establishment subject thereof. Whenever necessary, the
submit clearance from the Barangay Office assistance and support of the appropriate law enforcement
and the National Bureau of Investigation or agencies shall be secured for such purpose.
Philippine National Police;
b. The agency shall inform the family of the Section 49. Execution Report. – Within twenty four (24)
recruit, the name, address and contact hours from the date of implementation thereof, the DOLE
number of the employer. Sheriff shall submit to the Regional a written report under
c. The agency shall register the domestic oath on the execution of the cease and desist order.
worker with the Barangay Office nearest the
place of work. CRIMINAL ACTION

Where to file complaints for Illegal Recruitment? The Regional Director concerned, or his/her duly
DOLE Regional or Field Office having jurisdiction over place authorized representatives or any aggrieved person, may
where act is committed initiate filing of appropriate criminal action with the office of
the prosecutor.
How to file?
Written report or complaint under oath Where a complaint is filed with the Regional Office and
the same is proper for preliminary investigation, it shall be
Who can file? endorsed to the office of the prosecutor together with the
Victims, their parents or legal guardians (Sec.45) supporting documents. (Sec.50)

SURVEILLANCE

Section 46. Surveillance.

The Regional Director or his duly authorized representative,


may motu proprio, conduct surveillance on reported illegal
recruitment activities.

Where the complaint/report alleges that illegal recruitment


activities are continuously committed, the Regional Director
or his duly authorized representative shall conduct
surveillance and if such activities are confirmed, a closure
order may be issued thereof by the Regional Director or
Field Officer.

If sufficient basis for criminal action is found, the case shall


be immediately indorsed to the appropriate office.

CEASE AND DESIST ORDER

Section 47. Issuance of cease and desist order.

The Regional Director or his duly authorized representatives


shall conduct a preliminary examination to determine
whether the activities of a non-licensee constitute a danger
to life, limb, property or public order or will lead to further
exploitation of job seekers.

If upon the preliminary examination or surveillance, the


Regional Director is satisfied that such danger or exploitation
exists, a written order shall be issued for the closure of the
establishment being used for such recruitment activity.

In case of a business establishment whose license or permit


to operate a business was issued by the local government,
the Regional Director concerned shall likewise recommend
to the granting authority the immediate
cancellation/revocation of the licensee or permit to operate
its business.

Section 48. Execution of cease and desist order. – A


cease and desist order shall be served by the DOLE Sheriff
upon the offender or the person in charge of the

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