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Labor Code Provisions on Overseas Employment
THE LABOR CODE OF THE A DECREE INSTITUTING
A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO
AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES
DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.
BOOK ONE
PRE-EMPLOYMENT
ART. 12. Statement of objectives. - It is the
policy of the State: a) To promote and maintain a state of
full employment through improved manpower training, allocation and
utilization; b) To protect every citizen desiring to
work locally or overseas by securing for him the best possible terms and
conditions of employment;
c) To facilitate a free choice of
available employment by persons seeking work in conformity with the
national interest; d) To facilitate and regulate the
movement of workers in conformity with the national interest; e) To regulate the employment of
aliens, including the establishment of a registration and/or work permit
system; f) 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;
g) To insure careful selection of
Filipino workers for overseas employment in order to protect the good
name of the Philippines abroad.
Title I
RECRUITMENT AND
PLACEMENT OF WORKERS
Chapter I
GENERAL
PROVISIONS
ART. 13. Definitions. - (a) "Worker" means
any member of the labor force, whether employed or unemployed.
(b) "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 for employment, locally or abroad,
whether for profit or not: Provided, That any person or entity which, in
any manner, offers or promises for a fee, employment to two or more
persons shall be deemed engaged in recruitment and placement.
(c) "Private fee-charging employment
agency" means any person or entity engaged in recruitment and placement
of workers for a fee which is charged, directly or indirectly, from the
workers or employers or both. (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. (g) "Seaman" means any person employed
in a vessel engaged in maritime navigation.
(h) "Overseas employment" means
employment of a worker outside the Philippines.
(i) "Emigrant" means any person, worker
or otherwise, who emigrates to a foreign country by virtue of an
immigrant visa or resident permit or its equivalent in the country of
destination. ART. 14. Employment promotion. - The
Secretary of Labor shall have the power and authority: (a) To organize and establish new
employment offices in addition to the existing employment offices under
the Department of Labor as the need arises;
(b) To 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 job opportunities abroad;
(c) To develop and 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; and (d) To require any person,
establishment, organization or institution to submit such employment
information as may be prescribed by the Secretary of Labor.
ART. 15. Bureau of Employment Services.
- (a) The Bureau of Employment Services shall be primarily responsible
for developing and monitoring a comprehensive employment program. It
shall have the power and duty:
1. To formulate and develop plans and
programs to implement the employment promotion objectives of this Title; 2. To establish and maintain a
registration and/or licensing system to regulate private sector
participation in the recruitment and placement of workers, locally and
overseas, and to secure the best possible terms and conditions of
employment for Filipino contract workers and compliance therewith under
such rules and regulations as may be issued by the Minister of Labor;
3. To formulate and develop employment
programs designed to benefit disadvantaged groups and communities; 4. To establish and maintain a
registration and/or work permit system to regulate the employment of
aliens; 5. To develop a labor market
information system in aid of proper manpower and development planning; 6. To develop a responsive vocational
guidance and testing system in aid of proper human resources allocation;
and 7. To maintain a central registry of
skills, except seamen.
(b) The regional offices of the Ministry of
Labor 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: Provided, That
the Bureau of Employment Services may, in the case of the National
Capital Region, exercise such power, whenever the Minister of Labor
deems it appropriate. The decisions of the regional offices of the
Bureau of Employment Services, if so authorized by the Minister of Labor
as provided in this Article, shall be appealable to the National Labor
Relations Commission upon the same grounds provided in Article 223
hereof. The decisions of the National Labor Relations Commission shall
be final and inappealable.
(Superseded by Exec. Order 797, May 1, 1982).
(c) The Minister of Labor shall have
the power to impose and collect fees based on rates recommended by the
Bureau of Employment Services. Such fees shall be deposited in the
National Treasury as a special account of the General Fund, for the
promotion of the objectives of the Bureau of Employment Services,
subject to the provisions of Section 40 of Presidential Decree No. 1177.
ART. 16. Private recruitment. - Except
as provided in Chapter II of this Title, no person or entity other than
the public employment offices, shall engage in the recruitment and
placement of workers. ART. 17. Overseas Employment
Development Board. - An Overseas Employment Development Board is hereby
created to undertake, in cooperation with relevant entities and
agencies, a systematic program for overseas employment of Filipino
workers in excess of domestic needs and to protect their rights to fair
and equitable employment practices. It shall have the power and duty:
1. To promote the overseas employment
of Filipino workers through a comprehensive market promotion and
development program; 2. To secure the best possible terms
and conditions of employment of Filipino contract workers on a
government-to-government basis and to ensure compliance therewith;
3. To recruit and place workers for
overseas employment on a government-to-government arrangement and in
such other sectors as policy may dictate; and
4. To act as secretariat for the Board
of Trustees of the Welfare and Training Fund for Overseas Workers. ART. 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
corps, international organizations and such other employers as may be
allowed by the Secretary of Labor is exempted from this provision. ART. 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 in aid 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 the
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:
1) serving as a liaison with migrant
communities; 2) provision of welfare and cultural
services;
3) promote and facilitate re-integration of
migrants into the national mainstream;
4) promote economic; political and
cultural ties with the communities; and
5) generally to undertake such
activities as may be appropriate to enhance such cooperative links.
ART. 20. National Seamen Board. - (a) A
National Seamen Board is hereby created which shall develop and maintain
a comprehensive program for Filipino seamen employed overseas. It shall
have the power and duty:
1. To provide free placement services for
seamen; 2. To regulate and supervise the
activities of agents or representatives of shipping companies in the
hiring of seamen for overseas employment and secure the best possible
terms of employment for contract seamen workers and secure compliance
therewith; 3. To maintain a complete registry of
all Filipino seamen.
(b) The Board shall have original and
exclusive jurisdiction over all matters or cases including money claims,
involving employer-employee relations, arising out of or by virtue of
any law or contracts involving Filipino seamen for overseas employment.
The decisions of the Board shall be appealable to the National Labor
Relations Commission upon the same grounds provided in Article 223
hereof. The decisions of the National Labor Relations Commission shall
be final and inappealable.
ART. 21. Foreign service role and
participation. - To provide ample protection to Filipino workers abroad,
the labor attaches, the labor reporting officers duly designated by the
Secretary of Labor and the Philippine diplomatic or consular officials
concerned shall, even without prior instruction or advice from the home
office, exercise the power and duty: (a) To provide all Filipino workers
within their jurisdiction assistance on all matters arising out of
employment; (b) To insure that Filipino workers are
not exploited or discriminated against;
(c) To verify and certify as requisite
to authentication that the terms and conditions of employment in
contracts involving Filipino workers are in accordance with the Labor
Code and rules and regulations of the Overseas Employment Development
Board and National Seamen Board; (d) To make continuing studies or
researches and recommendations on the various aspects of the employment
market within their jurisdiction;
(e) To gather and analyze information
on the employment situation and its probable trends, and to make such
information available; and
(f) To perform such other duties as may
be required of them from time to time.
ART. 22. Mandatory remittance of
foreign exchange earnings. - It shall be mandatory for all Filipino
workers abroad to remit a portion of their foreign exchange earnings to
their families, dependents, and/or beneficiaries in the country in
accordance with rules and regulations prescribed by the Secretary of
Labor.
ART. 23. Composition of the Boards. -
(a) The OEDB shall be composed of the Secretary of Labor and Employment
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,
Culture and Sports, the National Manpower and Youth Council, the Bureau
of Employment Services, a workers’ organization and an employers’
organization and the Executive Director of the OEDB as members. (b) The National Seamen Board shall be
composed of the Secretary of Labor and Employment 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, Culture and Sports, 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 Board which shall not be more than
P2,000.00 per month. (c) The Boards shall be attached to the
Department of Labor for policy and program coordination. They shall each
be assisted by a Secretariat headed by an Executive Director who shall
be a Filipino citizen with sufficient experience in manpower
administration, including overseas employment activities. The Executive
Director shall be appointed by the President of the Philippines upon the
recommendation of the Secretary of Labor and shall receive an annual
salary as fixed by law. The Secretary of Labor shall appoint the other
members of the Secretariat. (d) The Auditor General shall appoint
his representative to the Boards to audit their respective accounts in
accordance with auditing laws and pertinent rules and regulations. ART. 24. Boards to issue rules and
collect fees. - The Boards shall issue appropriate rules and regulations
to carry out their functions. They shall have the power to impose and
collect fees from employers concerned, which shall be deposited in the
respective accounts of said Boards and be used by them exclusively to
promote their objectives.
Chapter II
REGULATION OF
RECRUITMENT AND PLACEMENT ACTIVITIES
ART. 26. Travel agencies prohibited to
recruit. - Travel agencies and sales agencies of airline companies are
prohibited from engaging in the business of recruitment and placement of
workers for overseas employment whether for profit or not.
ART. 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.
ART. 28. Capitalization. - All
applicants for authority to hire or renewal of license to recruit are
required to have such substantial capitalization as determined by the
Secretary of Labor. ART. 29. Non-transferability of license
or authority. - No license or authority shall be used directly or
indirectly by any person other than the one in whose favor it was issued
or at any place other than that stated in the license or authority be
transferred, conveyed or assigned to any other person or entity. Any
transfer of business address, appointment or designation of any agent or
representative including the establishment of additional offices
anywhere shall be subject to the prior approval of the Department of
Labor. ART. 30.
Registration fees. - The Secretary of Labor shall promulgate a schedule
of fees for the registration of all applicants for license or authority. ART. 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 may be appropriate. ART. 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 through its efforts or
has actually commenced employment. Such fee shall be always covered with
the appropriate receipt clearly showing the amount paid. The Secretary
of Labor shall promulgate a schedule of allowable fees.
ART. 33.
Reports on employment status. - Whenever the public interest requires,
the Secretary of Labor may direct all persons or entities within the
coverage of this Title to submit a report on the status of employment,
including job vacancies, details of job requisitions, separation from
jobs, wages, other terms and conditions and other employment data. ART. 34.
Prohibited practices. - It shall be unlawful for any individual, entity,
licensee, or holder of authority: (a) To charge or accept, directly or
indirectly, any amount greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor, or to make a worker
pay any amount greater than that actually received by him as a loan or
advance; (b) To furnish or publish any false
notice or information or document in relation to recruitment or
employment; (c) To give any false notice,
testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority
under this Code. (d) To induce or attempt to induce a
worker already employed to quit his employment in order to offer him to
another unless the transfer is designed to liberate the worker from
oppressive terms and conditions of employment;
(e) To influence or to attempt to
influence any person or entity not to employ any worker who has not
applied for employment through his agency;
(f) To engage in the recruitment or
placement of workers in jobs harmful to public health or morality or to
the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct
inspection by the Secretary of Labor or by his duly authorized
representatives; (h) To fail to file reports on the
status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other
matters or information as may be required by the Secretary of Labor.
(i) To substitute or alter employment
contracts approved and verified by the Department of Labor from the time
of actual signing thereof by the parties up to and including the periods
of expiration of the same without the approval of the Secretary of
Labor; (j) To become an officer or member of
the Board of any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel agency; and (k) To withhold or deny travel
documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and
its implementing rules and regulations.
ART. 35. Suspension and/or cancellation of
license or authority. - The Minister of Labor shall have the power to
suspend or cancel any license or authority to recruit employees for
overseas employment for violation of rules and regulations issued by the
Ministry of Labor, the Overseas Employment Development Board, or for
violation of the provisions of this and other applicable laws, General
Orders and Letters of Instructions.
Chapter III
MISCELLANEOUS
PROVISIONS ART. 37. Visitorial Power. - The
Secretary of Labor or his duly authorized representatives may, at any
time, inspect the premises, books of accounts and records of any person
or entity covered by this Title, require it to submit reports regularly
on prescribed forms, and act on violation of any provisions of this
Title. ART. 38. Illegal recruitment. - (a) Any
recruitment activities, including the prohibited practices enumerated
under Article 34 of this Code, to be undertaken by non-licensees or
non-holders of authority, shall be deemed illegal and punishable under
Article 39 of this Code. The Department of Labor and Employment or any
law enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed
by a syndicate or in large scale shall be considered an offense
involving economic sabotage and shall be penalized in accordance with
Article 39 hereof. Illegal recruitment is deemed committed
by a syndicate if carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in carrying out any
unlawful or illegal transaction, enterprise or scheme defined under the
first paragraph hereof. Illegal recruitment is deemed committed in large
scale if committed against three (3) or more persons individually or as
a group. (c) The Secretary of Labor and Employment or his duly authorized representatives shall have the power to cause the arrest and detention of such non-licensee or non-holder of authority if after 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. The Secretary shall order the search of the office or premises and seizure of documents, paraphernalia, properties and other implements used in illegal recruitment activities and the closure of companies, establishments and entities found to be engaged in the recruitment of workers for overseas employment, without having been licensed or authorized to do so. ART. 39.
Penalties. - (a) The penalty of life imprisonment and a fine of One
Hundred Thousand Pesos (P1000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein; (b) Any licensee or holder of authority
found violating or causing another to violate any provision of this
Title or its implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than two years
nor more than five years or a fine of not less than P10,000 nor more
than P50,000, or both such imprisonment and fine, at the discretion of
the court;
(c) Any person who is neither a
licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not less than
four years nor more than eight years or a fine of not less than P20,000
nor more than P100,000 or both such imprisonment and fine, at the
discretion of the court; (d) If the offender is a corporation,
partnership, association or entity, the penalty shall be imposed upon
the officer or officers of the corporation, partnership, association or
entity responsible for violation; and if such officer is an alien, he
shall, in addition to the penalties herein prescribed, be deported
without further proceedings; (e) In every case, conviction shall cause and carry the automatic revocation of the license or authority and all the permits and privileges granted to such person or entity under this Title, and the forfeiture of the cash and surety bonds in favor of the Overseas Employment Development Board or the National Seamen Board, as the case may be, both of which are authorized to use the same exclusively to promote their objectives. |
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Copyright
© 2000-2005. Philippine Overseas Employment Administration. All
rights reserved. |
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