POEA RULES AND REGULATIONS

GOVERNING THE RECRUITMENT AND EMPLOYMENT OF SEAFARERS

May 23, 2003

PART I
General Provisions

RULE I
Statement of Policy

It is the policy of the Administration:

a. To uphold the dignity and fundamental human rights of Filipino seafarers navigating the foreign seas and promote
full employment and equality of employment opportunities for all;
b. To protect every Filipino seafarer desiring to work overseas by securing the best possible terms and conditions of employment;
c. To allow the deployment Filipino seafarers to countries which have existing labor and social laws or are
signatories to international agreements protecting the rights of seafarers;
d. To develop strategies and programs to ensure full and quality employment opportunities for seafarers through
possession of appropriate level of competence, training and certification as required by the International Convention on
Standards of Training, Certification and Watch-keeping for Seafarers, (1978 STCW Convention, as amended) and
other applicable conventions, laws, rules and regulations;
e. To pursue, with the active participation of the private sector, the creation of an environment conducive to maritime
employment in order to maximize opportunities for employment generation, facilitation, enhancement and preservation;
f. To help strengthen support programs for the effective reintegration of returning seafarers into the Philippine society;
g. To establish an adequate shared government information system on maritime employment program using
computer databases that are linked electronically to allow verification and full-flow of data exchanges;
h. To provide an effective gender-sensitive mechanism that can adequately protect and safeguard the rights and
interest of Filipino seafarers;
i. To recognize the participation of the private sector in the recruitment and placement of seafarers to serve national
development objectives;
j. To deregulate recruitment activities progressively taking into account emerging circumstances which may affect
the welfare of seafarers and their families;
k. To cooperate with duly registered non-government organizations, in a spirit of trust and mutual respect, in
protecting and promoting the welfare of Filipino seafarers. (Rule I, Part I, POEA Rules and Regulations Governing the
Recruitment and Employment of Seafarers, May 23, 2003).

RULE II
Definition of Terms

For the purpose of these Rules, the following terms are defined as follows:

1. Accreditation refers to the grant of authority to a foreign principal to engage Filipino seafarers for specific
ship/s through a licensed agency for maritime employment.
2. Administration refers to the Philippine Overseas Employment Administration (POEA).
3. Administrator refers to the Administrator of the POEA.
4. Agency refers to a licensed manning agency, as defined herein.
5. Allottee refers to any person named or designated by the seafarer as the recipient of his remittance to the Philippines.
6. Authentication refers to an attestation made by a duly authorized officer by which he certifies that a person
appeared before him and is known to him to have voluntarily executed a document.
7. Beneficiary refers to the person/s to whom compensation benefits due under an employment contract are
payable by operation of law or those to whom proceeds of a life or accident insurance are likewise payable.
8. Claims refers to a valid contractual claim for compensation or benefits arising from employer-employee
relationship or for any personal injury, illness or death at levels provided for within the terms and conditions of
employment of seafarers.
9. Cruise ship personnel refers to person/s engaged as part of the hotel crew on board seagoing ships or passenger
ships navigating the foreign seas.
10. Department refers to the Department of Labor and Employment (DOLE).
11. Derogatory Record refers to the existence of negative information such as, but not limited to, illegal
recruitment, falsification, swindling or estafa, and/or conviction for crimes involving moral turpitude.
12. DFA refers to the Department of Foreign Affairs.
13. Enrolment refers to the enlistment to the Administration of a vessel by an accredited/registered principal to its
appointed manning agent for the purpose of employing seafarers;
14. Fisherman refers to a person engaged to undertake fishing activities on board a fishing vessel operating
overseas.
15. Joint and Solidary Liability refers to the nature of liability of the principal and the manning agency, for any
and all claims arising out of the implementation of the employment contract involving Filipino seafarers. It shall
likewise refer to the nature of liability of officers, directors, partners or sole proprietors with the company over claims
arising from employer-employee relationship.
16. LAC refers to the Labor Assistance Center of the POEA located at international airports.
17. License refers to the document issued by the Secretary or his duly authorized representative authorizing any
person, partnership or corporation to operate a manning agency.
18. Licensed manning agency refers to any person, partnership or corporation duly licensed by the Secretary or his
duly authorized representative to recruit and deploy seafarers for maritime employment.
19. Manning agreement refers to a written agreement entered into by and between the principal and manning
agency defining their respective rights, obligations and responsibilities.
20. Maritime employment refers to the engagement of Filipino seafarers on ships navigating the foreign seas
under a government-approved standard employment contract.
21. MARINA refers to the Maritime Industry Authority
22. MTC refers to the Maritime Training Council.
23. New Market refers to a principal which is not in the active list of registered or accredited principals to any licensed
manning agency for the past six months or more, or which has never been registered or accredited to any licensed manning
agency; and provided, that its new vessels should not also be in the active list of enrolled vessels for the past six months or
more or have never been enrolled to any licensed manning agency, or if enrolled there has been no prior deployment.
24. NAC refers to the National Assessment Center of the MTC.
25. NBI refers to the National Bureau of Investigation.
26. NLRC refers to the National Labor Relations Commission.
27. Non-licensee refers to any person, partnership or corporation who has no valid license to engage in
recruitment and placement of Filipino seafarers, or whose license is suspended.
28. OEC refers to the Overseas Employment Certificate.
29. OWWA refers to the Overseas Workers Welfare Administration.
30. PDOS refers to the Pre-Departure Orientation Seminar.
31. Personal Injury refers to any disease, impairment of a seafarer's physical condition, impairment of a seafarer's
mental condition or death arising out of or in connection with the employment of the seafarer.
32. Philippine Overseas Shipping Company refers to any entity registered and duly authorized to engage in
overseas shipping activities, among others, under the laws of the Philippines.
33. Principal refers to a foreign person, partnership or corporation engaging and employing Filipino seafarers
through a licensed manning agency.
34. Provisional License refers to a license issued to a new manning agency with a limited period of one year
within which the licensee shall comply with its undertaking to deploy fifty (50) seafarers to its new market.
35. PRC refers to the Professional Regulation Commission.
36. 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 maritime
employment, 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.
37. Registration refers to the act of recognizing and entering in the official records of the Administration the
existence of a foreign principal whose documents have been verified and authenticated by the appropriate officials of
the Philippine Government.
38. Seafarer refers to any person who is employed or engaged in any capacity on board a seagoing ship navigating
the foreign seas other than a government ship used for military or non-commercial purposes. The definition shall
include fishermen, cruise ship personnel and those serving on foreign maritime mobile offshore and drilling units.
39. Shipowner refers to the owner of the ship or any other organization or person, such as the manager, agent or
bareboat charterer, who has assumed the responsibility for operation of the ship from the shipowner and who on
assuming such responsibilities has agreed to take over all the attendant duties and responsibilities.
40. Secretary refers to the Secretary of Labor and Employment.
41. SEC refers to the Securities and Exchange Commission.
42. Standard employment contract refers to a written government-approved employment contract stipulating a
specific period of employment and formulated through tripartite consultation, individually adopted and agreed upon by
the principal/employer and the seafarer.
43. TESDA refers to the Technical Education and Skills Development Authority.
44. Verification refers to the act performed by a Philippine Overseas Labor Officer or any other officer designated
by the Secretary of Labor and Employment in the Philippine Embassy or Consulate, in reviewing and verifying the
manning documents of foreign principals including the employment contract, with the view to establish the existence
of the employing company, its capability to hire seafarers at acceptable rates and at desirable working conditions that
are in conformity with the minimum standards prescribed, by the Administration taking into consideration the labor
laws and legislations of the country whose flag the ships will be flying and/or international maritime labor standards.
(Rule II, Part I, Ibid.).

PART II
Licensing and Regulation

RULE I
Participation of Private Sector in the Maritime Employment Program

SECTION 1. Qualifications. Only those who possess the following qualifications may be permitted to engage in
the business of recruitment and placement of Filipino seafarers:

a. Filipino citizens, partnerships or corporations at least seventy-five percent (75%) of the authorized and voting
capital stock of which is owned and controlled by Filipino citizens;
b. A minimum capitalization of Two Million Pesos (P2,000,000.00) in case of a single proprietorship or partnership
and a minimum paid-up capital of Two Million Pesos (P2,000,000.00) in case of a corporation; Provided that those
with existing licenses shall, within four years from effectivity hereof, increase their capitalization or paid up capital, as
the case may be, to Two Million Pesos (P2,000,000.00) at the rate of Two Hundred Fifty Thousand (P250,000.00)
every year; and

c. Those not otherwise disqualified by law or other government regulations to engage in the recruitment and
placement of seafarers. (Section 1, Rule I, Part II, Ibid.).

SECTION 2. Disqualification. The following are not qualified to engage in the business of recruitment and
placement of Filipino seafarers.

a. Travel agencies and sales agencies of airline companies;

b. Officers or members of the Board of any corporation or members in a partnership engaged in the business of a
travel agency;
c. Corporations and partnerships, when any of its officers, members of the board or partners, is also an officer,
member of the board or partner of a corporation or partnership engaged in the business of a travel agency;
d. Persons, partnerships or corporations which have derogatory records, such as but not limited to the following:

1. Those certified to have a derogatory record by the National Bureau of Investigation or by the Anti-Illegal
Recruitment Branch of the POEA;
2. Those against whom probable cause or prima facie finding of guilt for illegal recruitment or other related cases exists;
3. Those convicted for illegal recruitment or other related cases and/or crimes involving moral turpitude;
4. Those agencies whose licenses have been previously revoked or cancelled by the Administration for violation of
RA 8042, PD 442, as amended, and their implementing rules and regulations as well as these rules and regulations.

All applicants for issuance/renewal of license shall be required to submit clearances from the National Bureau of
Investigation and Anti-illegal Recruitment Branch, POEA, including clearances for their respective officers and
employees.

e. Any official or employee of the DOLE, POEA, OWWA, DFA and other government agencies directly involved in the
implementation of R.A. 8042 and/or any of his/her relatives within the fourth civil degree of consanguinity or affinity; and
f. Persons, partners, officers and directors of corporations whose licenses have been previously cancelled or revoked
for violation of recruitment laws. (Section 2, Rule I, Part II, Ibid.).

RULE II
Issuance of License

SECTION 1. Requirements for Licensing. Every applicant for license to operate a manning agency shall submit a
written application together with the following requirements:cralaw
 a. A certified copy of the Articles of Incorporation or of Partnership duly registered with the SEC, in the case of
a corporation or partnership or Certificate of Registration of the firm or business name with the Department of
Trade and Industry (DTI), in the case of single proprietorship.

b. Proof of financial capacity. In the case of a single proprietorship or partnership, verified income tax returns of
the proprietors or partners for the past two (2) years and a savings account showing a maintaining balance of not
less than Five Hundred Thousand Pesos (P500,000.00), provided that the applicant should submit an authority to
examine such bank deposit. In the case of a newly organized corporation, submission of a savings account showing
a maintaining balance of not less than Five Hundred Thousand Pesos (P500,000.00), with authority to examine the
same. For an existing corporation, submission of a verified financial statement, corporate tax returns for the past
two (2) years and a savings account showing a maintaining balance of not less than Five Hundred Thousand Pesos
(P500,000.00) with the corresponding authority to examine such deposit.

c. Proof of marketing capability:

1. A duly executed Special Power of Attorney authenticated by the Philippine Embassy/Consulate or verified by the
Labor Attache in the place where the vessel owner/operator/manager holds its principal office;
2. A duly concluded manning agreement authenticated by the Philippine Embassy/Consulate or verified by the Labor
Attache in the place where the vessel owner/operator/manager holds his/its principal office;
3. Crew order/s of not less than fifty (50) seafarers from its new market; and
4. Certification from Pre-Employment Services Office of POEA on the existence of new market.

d. Clearance of all members of the board of directors, partners and proprietor of the applicant agency from the NBI,
Anti-Illegal Recruitment Branch of POEA and other government agencies as the need may require; provided that
where the member or partner concerned is a foreigner, clearance from his country of origin shall be required.

e. A verified undertaking stating that the applicant shall:

1. Provide its seafarers orientation on recruitment policies and procedures, terms and conditions of employment and
other relevant information;
2. Ensure that any seafarer recruited or deployed by them is qualified and holds the documents necessary for the job concerned;
3. Ensure that contracts of employment are in accordance with the standard employment contract and other
applicable laws, regulations and collective bargaining agreements;
4. Ensure that seafarers are informed of their rights and duties under their contracts of employment and the articles of
agreement prior to or in the process of engagement;
5. Ensure that proper arrangements are made for seafarers to examine their contracts of employment and articles of
agreement before and after they are signed and for them to receive a copy of the contract of employment;
6. Ensure that the vessel/s and the crew are adequately covered by P & I Club or similar insurance thru the
submission of the certificate of insurance coverage;
7. Assume full and complete responsibility for all claims and liabilities which may arise in connection with the use of
the license;
8. Assume joint and solidary liability with the employer for all claims and liabilities which may arise in connection
with the implementation of the employment contract, including but not limited to wages, death and disability
compensation and their repatriation;
9. Guarantee compliance with the applicable labor, social and maritime legislations of the Philippines, and applicable
regulations of the flag state and international organizations such as the International Maritime Organization (IMO) and
the International Labor Organization (ILO);
10. Assume full and complete responsibility for all acts of its officials, employees and representatives done in
connection with recruitment and placement;chanroblesvirtualawlibrary
11. Deploy at least fifty (50) seafarers to its new market within one-year from issuance of its license which shall also
be a condition to the accreditation of old principals; and
12. Repatriate the deployed seafarers when the need arises.

f. In case of corporation or partnership, verified undertaking by officers, directors and partners that they will be
jointly and severally liable with the company over claims arising from employer-employee relationship.
g. Individual income tax return of the proprietor, partners, or board of directors as the case may be, for the past two
(2) years.
h. Proof of possession by the sole proprietor, partner or chief executive officer, as the case maybe, of a bachelor's
degree and three years business experience.
i. List of all officials and personnel involved in the recruitment and placement, together with their appointment, bio-
data and two (2) copies of their passport size pictures as well as their clearances from the NBI and the Anti-Illegal
Recruitment Branch, POEA.
j. Copy of contract of lease or proof of building ownership, indicating the office address and providing for an office
space of at least one hundred (100) square meters;
k. Proof of publication of notice of the application with the names of the proprietor, partners, incorporators and officers;

l. Certificate of attendance of owner and/or chief executive officer in a pre-application seminar conducted by the
Administration.

Only applications with complete supporting documents shall be processed. (Section 1, Rule II, Part II, Ibid.).

SECTION 2. Payment of Filing Fee. Upon receipt of an application with complete requirements, the
Administration shall require payment of a non-refundable filing fee of Ten Thousand Pesos (P10,000.00) and
submission of proof of payment thereof. (Section 2, Rule II, Part II, Ibid.).

SECTION 3. Action Upon the Application. Within fifteen (15) calendar days from receipt of an application with
complete requirements including proof of payment of the filing fee of Ten Thousand Pesos (P10,000.00), the
Administration shall evaluate the pertinent documents, inspect the office premises of the applicant and determine
whether or not to grant the application. Denial of an application will result to the forfeiture of the filing fee. (Section 3,
Rule II, Part II, Ibid.).

SECTION 4. Payment of Fees and Posting of Bonds. Upon approval of the application, the applicant shall pay a
license fee of Fifty Thousand Pesos (P50,000.00). It shall submit an escrow agreement in the amount of One Million
Pesos (P1,000,000.00), confirmation of escrow deposit with a reputable bank and a surety bond of One Hundred
Thousand Pesos (P100,000.00) from a bonding company acceptable to the Administration and accredited with the
Insurance Commission.

Agencies with existing licenses shall, within four years from effectivity hereof, increase their Escrow Deposit to One
Million Pesos (P1,000,000.00) at the rate of One Hundred Seventy-Five Thousand (P175,000.00) pesos per year.

The bonds and escrow shall answer for all valid and legal claims arising from violations of the conditions for the grant
and use of the license and/or contracts of employment. The bonds and escrow shall likewise guarantee compliance with
the provisions of these rules and pertinent Philippine laws and all liabilities which the Administration may impose. The
surety bonds shall include the condition that notice to the principal is notice to the surety and that any final and
executory judgment against the principal in connection with matters falling under POEA's/NLRC's jurisdiction shall be
binding and conclusive on the surety. The surety bonds shall cover the validity period of the license. (Section 4, Rule
II, Part II, Ibid.).

SECTION 5. Provisional License. Applicants for new license shall be issued a provisional license which shall be
valid for a limited period of one (1) year within which the applicant should be able to comply with its undertaking to
deploy 50 seafarers to its new principal. The license of a complying agency shall be upgraded to a full license entitling
them to another three years of operation. Non-complying agencies will be notified of the expiration of their license.
(Section 5, Rule II, Part II, Ibid.)

SECTION 6. Validity of the License. Except in case of a provisional license, every license shall be valid for four
(4) years from the date of issuance unless sooner cancelled, revoked or suspended for violation of applicable Philippine
law, these rules and other pertinent issuances. Such license shall be valid only at the place/s stated therein, subject to
the conditions of the subsequent paragraph, and when used by the licensed person, partnership or corporation. (Section
6, Rule II, Part II, Ibid.).

SECTION 7. Non-Transferability of the License. No license shall be transferred, conveyed or assigned to any
person, partnership or corporation. It shall not be used directly or indirectly by any person, partnership or corporation
other than the one in whose favor it was issued.

In case of death of the sole proprietor, and in order to prevent disruption of operations and so as not to prejudice the
interest of legitimate heirs, the license may be extended upon request of the heirs, to continue only for the purpose of
winding up business operations. (Section 7, Rule II, Part II, Ibid.).

SECTION 8. Change of Ownership/Relationship of Single Proprietorship or Partnership. Transfer or change of

ownership of a single proprietorship licensed to engage in maritime employment shall cause the automatic revocation
of the license.
A change in relationship of the partners in a partnership duly licensed to engage in maritime employment, which
materially interrupts the course of the business or results in the actual dissolution of the partnership, shall likewise
cause the automatic revocation of the license. (Section 8, Rule II, Part II, Ibid.).

SECTION 9. Upgrading of Single Proprietorship or Partnerships. License holders, which are single
proprietorships or partnerships, may convert into a corporation for purposes of upgrading or raising their capabilities to
respond adequately to developments/changes in international shipping and to enable them to better comply with their
responsibilities arising from the recruitment and deployment of seafarers.

The approval of merger, consolidation or upgrading shall automatically revoke or cancel the licenses of the single
proprietorships, partnerships or corporations so merged, consolidated or upgraded. (Section 9, Rule II, Part II, Ibid.).

SECTION 10. Derogatory Record After Issuance/Renewal of License. The license of a single proprietorship and
partnership shall be suspended until cleared by the Administration should any derogatory record be found to exist
against the single proprietorship or any or all of the partners, as the case may be. The appointment of any officer or
employee of any licensed agency may be cancelled or revoked at any time with due notice to the agency concerned,
whenever said officer or employee is found to have any derogatory record, as herein contemplated. (Section 10, Rule
II, Part II, Ibid.).

SECTION 11. Appointment/Change of Officers and Personnel. Every appointment of agents or representatives of
a licensed agency shall be subject to prior approval or authority of the Administration. The acknowledgment or
approval may be issued upon submission of or compliance with the following:

a. Proposed appointment or special power of attorney;

b. Clearances of the proposed representative or agent from the NBI and the Anti-illegal Recruitment Branch of the
POEA; and
c. 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 seafarers.

Every change in the composition of the board of directors of a corporation, appointment or termination of officers and
personnel shall be registered with the Administration within thirty (30) calendar days from the date of such change.
The agency shall be required to submit the minutes of proceedings duly certified by the SEC in case of election of new
members of the board of directors with their bio-data, ID pictures and clearances.

The Administration reserves the right to deny the acknowledgment or appointment of officers, employees and
representatives who were directly involved in recruitment irregularities. (Section 11, Rule II, Part II, Ibid.).

SECTION 12. Publication of Change of Directors/Other Officers and Personnel/Revocation or Amendment of

Appointment of Representatives. In addition to the requirement of registration with and submission to the
Administration, every change in the membership of the Board of Directors, termination for cause of other officers and
personnel, revocation or amendment of appointment of representatives shall be published at least once in a newspaper
of general circulation, in order to bind third parties. Proof of such publication shall be submitted to the Administration.
(Section 12, Rule II, Part II, Ibid.).

SECTION 13. Transfer of Business Address. Any transfer of business address shall be effected only with prior
authority or approval of the Administration. The approval shall be issued only upon formal notice of the intention to
transfer with the following attachments:

a. In the case of a corporation, a Board Resolution duly registered with the SEC authorizing the transfer of business
address; and
b. Copy of the contract of lease or proof of building ownership.
The new office shall be subject to the regular ocular inspection procedures by duly authorized representatives of the
Administration.

A notice to the public of the new address shall be published in a newspaper of general circulation. (Section 13, Rule II,
Part II, Ibid.).

SECTION 14. Establishment of Extension Offices. Extension offices may be established subject to the prior
approval of the Administration. (Section 14, Rule II, Part II, Ibid.).
SECTION 15. Renewal of License. An agency shall submit an application for the renewal of its license on or
before the expiration of the license. Such application shall be supported by the following documents:cralaw

a. Renewed or revalidated surety bond amounting to One Hundred Thousand Pesos (P100,000.00);
b. Renewed escrow agreement in the amount of One Million Pesos (P1,000,000.00) with a commercial bank to
primarily answer for valid and legal claims of recruited seafarers as a result of recruitment violations or money claims;
c. Audited financial statements for the past two years with verified corporate or individual tax returns. In case the
equity of the agency is below the minimum capitalization requirement, it shall be given thirty (30) days from release of
the renewed license to submit proof(s) of capital infusion, such as SEC certification of such infusion or bank
certification corresponding to the amount infused and treasurer's affidavit duly received by the SEC. Otherwise the
license shall be suspended until it has complied with said requirement;
d. Clearances from the NBI and Anti-Illegal Recruitment Branch for all its employees and officers; and
e. Other requirements as may be imposed by the Administration. (Section 15, Rule II, Part II, Ibid.).

SECTION 16. Monitoring Compliance with Conditions of License. The Administration shall monitor the
compliance of agencies with their undertakings in connection with the issuance or renewal of the license. Appropriate
sanctions shall be imposed for non-compliance with any of their undertakings. (Section 16, Rule II, Part II, Ibid.).

SECTION 17. Non-expiration of License Pending Renewal. Where the license holder has made timely and
sufficient application for renewal, the existing license shall not expire until the application shall have been finally
determined by the Administration. For this purpose, an application shall be considered sufficient if the applicant has
substantially complied with the requirements for renewal. (Section 17, Rule II, Part II, Ibid.).

SECTION 18. Action on Renewal of License. Within forty-eight (48) hours from receipt of the application for
renewal with the complete requirements, the Administration shall undertake evaluation and inspection and determine
the grant or denial of the application. Application for renewal of license which fail to meet the requirements set by the
Administration, shall be denied.

Only applications for renewal submitted with complete requirements shall be processed. (Section 18, Rule II, Part II,
Ibid.).

SECTION 19. Late Filing of Renewal. Any agency which failed to file an application for renewal of license may
be allowed to renew within thirty (30) calendar days from expiry thereof and subject to the payment of a fine of
P10,000.00. (Section 19, Rule II, Part II, Ibid.).

SECTION 20. Escrow Deposit as Garnished. As soon as an Order or Notice of Garnishment is served upon the
bank, and the same is correspondingly earmarked, the deposit in escrow of an agency shall no longer be considered
sufficient. The Administration shall forthwith serve upon the agency a notice to replenish its escrow deposit. (Section
20, Rule II, Part II, Ibid.).

SECTION 21. Replenishment of Surety Bonds/Deposit in Escrow. Within fifteen (15) calendar days from date of
receipt of notice from the Administration that the bonds/deposit in escrow or any part thereof had been garnished, the
agency shall replenish the same. Failure to replenish such bonds/deposit in escrow within the said period shall cause
the suspension of the license. (Section 21, Rule II, Part II, Ibid.).

SECTION 22. Release of Deposit in Escrow. A licensed agency which voluntarily surrenders its license shall be
entitled to the release of the deposit in escrow, only after posting a surety bond of similar amount valid for four (4)
years from expiration of license and submission of the necessary clearances from the National Labor Relations
Commission (NLRC) and the Administration. (Section 22, Rule II, Part II, Ibid.).

SECTION 23. Classification, Ranking and Incentives. The Administration shall undertake the classification and
ranking of agencies. In recognition of their exemplary performance, the Administration shall issue guidelines for
entitlement of agencies to schemes for incentives and rewards such as extension of validity of the license, express
processing and in-house documentation. (Section 23, Rule II, Part II, Ibid.).

RULE III
Inspection of Manning Agencies

SECTION 1. Inspection for Purposes of Issuance of License/Transfer of Office/Opening of Branch and other
Facilities. Before issuance of a license, the Administration shall conduct an inspection of the premises and pertinent
documents of the applicant. Inspection shall likewise be conducted on the new premises in case of transfer of office or
opening of branch or other facilities. (Section 1, Rule III, Part II, Ibid.).

SECTION 2. Routine/Regular Inspection. All agencies shall be subject to periodic inspection of offices or pre-
departure orientation seminar (PDOS) venues by the Administration to determine compliance with existing rules and
regulations. (Section 2, Rule III, Part II, Ibid.).

SECTION 3. Spot Inspection. Inspection may be conducted by the Administration upon receipt of a complaint or
report of violation of existing rules and regulation. (Section 3, Rule III, Part II, Ibid.).

SECTION 4. Authority to Inspect. An authority to inspect shall be issued by the Administration before any
inspection may be conducted.

Such authority, stating the purpose and subject of inspection, shall be presented to the agency before inspection.
(Section 4, Rule III, Part II, Ibid.).

SECTION 5. Scope of Inspection. Depending on the purpose of inspection, the Administrator or his duly
authorized representative may inspect the premises and require the presentation of necessary documents, records and
books of account of the agency and examine the same. (Section 5, Rule III, Part II, Ibid.).

SECTION 6. Inspection Program and Procedures. The Administration shall conduct inspection in accordance with
the Inspection Program and Procedures of the POEA. (Section 6, Rule III, Part II, Ibid.).

SECTION 7. Violations Found in the Course of Inspection. Violations found in the course of inspection such as
non-compliance with existing rules and regulations, shall be ground for the imposition of appropriate sanction or for
the denial of application for the issuance or renewal of license. Copy of the inspection report shall be endorsed to the
appropriate unit for the conduct of necessary proceedings. (Section 7, Rule III, Part II, Ibid.).

RULE IV
Fees and Contributions

SECTION 1. Fees Chargeable to Principals. Agencies shall charge from their principals manning fee to cover
services rendered in the recruitment and deployment of seafarers.
However, manning agencies shall not charge any fee from the seafarers for their recruitment and deployment services.
(Section 1, Rule IV, Part II, Ibid.).

SECTION 2. Utilization and Accounting of Maritime Welfare Fund. Contributions to the Maritime Welfare Fund
shall be used to address welfare concerns of contributing seafarers and must be accounted for separately from the
General Fund of OWWA. A report of receipts and disbursements shall be published annually in a newspaper of general
circulation and be made available to contributing seafarers, manning agencies and shipowners. (Section 2, Rule IV,
Part II, Ibid.).

RULE V
Advertisement for Maritime Employment

SECTION 1. Advertisement for Actual Job Vacancies. Licensed manning agencies may advertise for actual job
vacancies without prior approval from the Administration if covered by manpower requests of accredited foreign
principals and projects. The. advertisements shall indicate the following information:cralaw

a. Name, address and POEA license number of the agency;

b. Type of ship and its registration;
c. Level of competence, skill and knowledge categories and qualification standards; and
d. Number of available positions. (Section 1, Rule V, Part II, Ibid.).

SECTION 2. Advertisement for Manpower Pooling. Licensed manning agencies may advertise for manpower
pooling without prior approval from the Administration subject to the following conditions:cralaw

a. The advertisement should indicate in bold letters that it is for manpower pooling only; and
b. The advertisement indicates the name, address and POEA license number of the agency, name of the ship and the
skill categories and qualification standards. (Section 2, Rule V, Part II, Ibid.).

SECTION 3. Foreign Advertisements for Maritime Employment. Foreign principals/employers who wish to
advertise job requirements using Philippine print media, broadcast or television may do so only through a POEA
licensed agency.

Non-observance of this rule shall be considered as valid ground for cancellation of accreditation of the violating
principals/employers. (Section 3, Rule V, Part II, Ibid.).

RULE VI
Medical Examination

SECTION 1. Standard of Medical Examination. The agency shall ensure that the medical examination conducted
is in accordance with the prescribed and acceptable international standard, and the requirements of the
employer/principal. (Section 1, Rule VI, Part II, Ibid.).

SECTION 2. When to Refer for Medical Examination. The agency shall refer an applicant for medical
examination to a DOH-accredited medical clinic/hospital after the agency has interviewed him and pre-qualified him
for an existing position duly covered by an approved crew order by the Administration. (Section 2, Rule VI, Part II,
Ibid.).

RULE VII
Departure and Arrival of Seafarers

SECTION 1. Departure. All departing seafarers shall be monitored through the POEA Assistance Centers
established by the Administration at international airports and other exit points in the country to ensure that they are
properly documented before proceeding to their overseas job sites. Seafarers without proper documents shall not be
cleared by the center. (Section 1, Rule VII, Part II, Ibid.).

SECTION 2. Overseas Employment Certificate (OEC) Issuance at the Center. Departing seafarers may secure
overseas employment certificate at the labor assistance centers under such circumstances as may be determined by the
Administration. POEA shall cease issuing OECs as soon as the computerized ID system is implemented. (Section 2,
Rule VII, Part II, Ibid.).

SECTION 3. Arrival. The center shall support OWWA and other government agencies in providing assistance to
arriving seafarers particularly those who are in distress. (Section 3, Rule VII, Part II, Ibid.).

SECTION 4. POEA Clearance for Special Cases. The POEA shall issue special clearances for travel abroad in
accordance with guidelines which may be issued by the Administration. (Section 4, Rule VII, Part II, Ibid.).

PART III
Placement by the Private Sector

RULE I
Verification of Documents and Registration of Foreign Principals and Enrolment of Vessels

SECTION 1. Verification of Documents. Manning documents of foreign principals and employers shall undergo
verification at their principal place of business prior to registration with POEA. The Philippine Overseas Labor Office
(POLO) nearest their principal place of business shall review and verify the documents with the view to establish the
existence of the employing person/entity, its capability to hire the seafarer at the applicable rates and at desirable
working conditions that are in conformity with the minimum standards prescribed by the Administration and/or with
the labor laws and legislations of the country whose flag the ships will be flying and/or international maritime labor
standards. (Section 1, Rule I, Part III, Ibid.).

SECTION 2. Documentary Requirements for Verification. The following documents shall be submitted to the
POLO for verification:

a. Manning agreement containing among others, the responsibilities of both principal and manning agency with
respect to the employment of seafarers;
b. Special Power of Attorney;
c. List of ships and their particulars including IMO number;
d. Crew complement;
e. Valid business license, registration certificate or equivalent document or proof of existence of business validated or
certified by the issuing authority in the host country; and
f. Other documents which the Administration may find necessary. (Section 2, Rule I, Part III, Ibid.).

SECTION 3. Application for Registration of Foreign Principals and Enrolment of Ships. Only duly licensed
manning agencies may file an application for registration of principals.

Registered principals shall enroll ships through their agencies subject to the guidelines as may be determined by the
Administration. (Section 3, Rule I, Part III, Ibid.).

SECTION 4. Documentary Requirements for Registration of Principals. The following verified documents shall
be submitted to the POEA, through the Philippine licensed manning agent for registration of the principal:cralaw

a. Duly verified manning agreement and special power of attorney containing among others the responsibilities of
both principal and manning agency with respect to the employment of seafarers; and
b. Crew complement and their corresponding wage scales. (Section 4, Rule I, Part III, Ibid.).

SECTION 5. Approval and Validity of Registration. The Administration shall issue to the agency a
registration certificate for its principal after the approval of the request for registration.

The registration of the principal shall be valid for a period of four (4) years from the date of issuance, unless sooner
revoked by the Administration on the following grounds:cralaw
a. Expiration of the principal's business license;chanroblesvirtualawlibrary
b. Upon written mutual agreement by the parties to pre-terminate the Agreement;chanroblesvirtualawlibrary
c. False documentation or misrepresentation in connection with the application for registration; and
d. Final judgment in a disciplinary action against the foreign principal.
Provisional registration may be granted for a period of ninety (90) days for a principal that substantially meets the
registration requirements.

The expiration of the agency's license shall not cause the automatic expiration or cancellation of the registration which
shall only be suspended until the renewal of the license.

Registered principals shall enroll ships through their agencies subject to the guidelines as may be determined by the
Administration. (Section 5, Rule I, Part III, Ibid.).

SECTION 6. Renewal of Registration. The registration shall be renewed upon request by the agency provided that
the documents required for initial registration are still valid. (Section 6, Rule I, Part III, Ibid.).

SECTION 7. Multiple Registration of Principals. A principal may be registered to a maximum of three (3)
manning agencies provided that a uniform wage and compensation package shall be adopted by the principal for all
seafarers employed through the agencies taking into consideration the type of the vessel and its operations. (Section 7,
Rule I, Part III, Ibid.).

SECTION 8. Transfer of Registration of Principal and/or Enrolment of Vessel. The registration of a principal
and/or enrolment of vessel may be transferred to another agency provided such transfer shall not involve diminution of
wages and benefits of the seafarers hired through the previous agency; and provided further that the transferee agency
shall assume full and complete responsibility over all contractual obligations of the principal to the seafarers originally
recruited and processed by the former agency. Prior to the transfer of registration, the Administration shall notify the
previous agency and principal of such application for transfer. (Section 8, Rule I, Part III, Ibid.).

SECTION 9. Action on Application for Transfer of Registration of Principals and/or Enrolment of Vessel With
Outstanding Obligations. Claims for money or enforcement of obligations arising out of business relations between
principals and their existing agencies may be conciliated by the Administration. However, the pendency of the
conciliation shall not prevent the Administration from acting on the request for transfer of registration, if public interest
so requires. (Section 9, Rule I, Part III, Ibid.).
 RULE II
Accreditation of Principals and Enrolment of Ships by Manning Agencies

SECTION 1. Accreditation of Principals and Enrolment of Ships. In the absence of a Philippine Overseas Labor
Office in the principal place of business of the foreign principals, employers or vessel owner/operator/manager to
verify the manning documents, accreditation shall be conducted at the POEA.

Only duly licensed manning agencies may file an application for accreditation of principals and enrolment of ships.

Accredited principals shall enroll ships through their agencies subject to the guidelines as may be determined by the
Administration. (Section 1, Rule II, Part III, Ibid.).

SECTION 2. Documentary Requirements for Accreditation. An agency applying for accreditation of its principals
shall submit the following:cralaw

a. Authenticated Manning Agreement and Special Power of Attorney containing among others, the responsibilities of
both principal and manning agency with respect to the employment of seafarers.
b. List of ships and their particulars including IMO number;chanroblesvirtualawlibrary
c. Crew complement of the principal and their corresponding wage scales;chanroblesvirtualawlibrary
d. Valid business license, registration certificate or equivalent document or proof of existence of business validated or
certified by the issuing authority in the host country; and
e. Other documents which the Administration may find necessary. (Section 2, Rule II, Part III, Ibid.).

SECTION 3. Authentication of Documents. Authentication of documents of foreign principals shall be undertaken

by any of the following:cralaw

a. Appropriate official of the Philippine Embassy or Consulate, or the authorized Philippine foreign representative, in
the absence of a Philippine mission; or
b. Appropriate official of any of the designated government ministries or offices of the host country.

The manning agreement and special power of attorney required for accreditation may be signed by the authorized
officials of both the hiring company and its local agent in the presence of any member of the POEA Directorate or
those officers of the Administration who are authorized to administer oath. The Administration shall charge attestation
fees as may be allowed by the Secretary. (Section 3, Rule II, Part III, Ibid.).

SECTION 4. Parties to the Agreement. Parties to the manning agreement are the duly authorized representative of
the manning agency and the direct principal of the seafarers to be recruited. (Section 4, Rule II, Part III, Ibid.).

SECTION 5. Multiple Accreditations of Principals. A principal may be accredited to a maximum of three (3)
manning agencies provided that a uniform wage and compensation package shall be adopted by the principal for all
seafarers employed through the agencies taking into consideration the type of the vessel and its operations. (Section 5,
Rule II, Part III, Ibid.).

SECTION 6. Approval and Validity of Accreditation. The Administration shall issue to the agency an
accreditation certificate for its principal after the approval of accreditation request.

The accreditation of the principal shall be valid for a period of four (4) years from the date of issuance, unless sooner
revoked by the Administration on the following grounds:cralaw

a. Upon mutual agreement of the parties to pre-terminate the agreement;chanroblesvirtualawlibrary

b. Expiration of the principal's business license;chanroblesvirtualawlibrary
c. False documentation or misrepresentation in connection with the application for accreditation; or
d. Final judgment in a disciplinary action against the foreign principal.

The expiration of the agency's license shall not cause the automatic expiration or cancellation of the accreditation
which shall only be suspended until the renewal of the license.

Provisional accreditation may be granted for a period of ninety (90) days for a principal that substantially meets the
accreditation requirements. (Section 6, Rule II, Part III, Ibid.).

SECTION 7. Transfer of Accreditation of Principal and/or Enrolment of Vessel. The accreditation of a principal
and/or enrolment of vessel may be transferred to another agency provided such transfer shall not involve diminution of
wages and benefits of the seafarers hired through the previous agency; and provided further that the transferee agency
shall assume full and complete responsibility to all contractual obligations of the principals to its workers originally
recruited and processed by the former agency. Prior to the transfer of accreditation, the Administration shall notify the
previous agency and principal of such application for transfer. (Section 7, Rule II, Part III, Ibid.).

SECTION 8. Transfer of Vessel Due to Sale or Change of Management. In case of sale of vessel or change of
management necessarily involving a change in principal, the agency of the new principal automatically assumes full
and complete responsibility over the seafarers originally recruited and deployed by the previous agent, if the seafarers
opt to sign an employment contract with the new principal. Otherwise, the agency which originally recruited and
employed the seafarers shall retain full and complete responsibility over the contractual obligation of its principal.

Other cases or modes of transfer of accreditation/registration and/or vessel not covered herein shall be subject to
guidelines to be determined by the Administration. (Section 8, Rule II, Part III, Ibid.).

SECTION 9. Action on Application for Transfer of Accreditation of Principal and Enrolment of Ships with
Outstanding Obligations. Claims for money or enforcement of obligations arising out of business relations between
principals and their existing manning agents that would involve the transfer of accreditation of principal and/or
enrolment of ships may be conciliated by the Administration. However, the pendency of the conciliation should not
prevent the Administration from acting on the request for transfer of accreditation and enrolment of ship, if public
interest so requires. (Section 9, Rule II, Part III, Ibid.).

SECTION 10. Renewal of Accreditation. The Accreditation shall be renewed upon request by the agency
provided that the documents required for initial accreditation are still valid. (Section 10, Rule II, Part III, Ibid.).

SECTION 11. One-Stop Processing Center. A one-stop processing center shall be established to facilitate the
delivery of all governmental activities pertaining to maritime employment which shall include among others, the
electronic linking of data bases of government agencies involved in the issuance of certificates and other documents to
seafarers. (Section 11, Rule II, Part III, Ibid.).

RULE III
Enlistment of Philippine Overseas Shipping Enterprises and Enrolment of Philippine Flagships

SECTION 1. Enlistment of Philippine Overseas Shipping Enterprises and Enrollment of Philippine Flagships.
Philippine overseas shipping enterprises may enlist their companies and enroll their ships trading overseas upon
submission of the following documents:cralaw

a. Certificate of Accreditation by the Maritime Industry Authority (MARINA);chanroblesvirtualawlibrary

b. Certified true copy of certificate of vessel registry issued by MARINA; and
c. Post a surety bond in the amount of P200,000.00 from a reputable bonding company duly accredited by the
Insurance Commission the validity of which should be co-terminus with the validity of special registration. (Section 1,
Rule III, Part III, Ibid.).

SECTION 2. Action Upon the Application. The Administration shall issue certificate of enlistment to the
Philippine shipping company within twenty-four (24) hours from receipt of application provided all the requirements
are met by the applicant. (Section 2, Rule III, Part III, Ibid.).

SECTION 3. Validity Period of Enlistment. Enlistment shall be co-terminus with its MARINA accreditation.
(Section 3, Rule III, Part III, Ibid.).

SECTION 4. Requisites for Renewal. The applicant shall submit an application for renewal of enlistment, which shall
be acted upon by the Administration within four (4) hours from receipt of application upon submission of the following:

a. Copy of Certificate of Accreditation by MARINA; and

b. Renewed surety bond in the amount of Two Hundred Thousand Pesos (P200,000.00). (Section 4, Rule III, Part III,
Ibid.).
 RULE IV
Documentary Processing of Seafarers

SECTION 1. Documentation of Seafarers. The following requirements shall be submitted for the documentation
of seafarers:cralaw

a. Request for processing indicating the names, positions and salaries of workers using the prescribed form of the Administration;
b. Three (3) copies of the full text of applicable standard employment contract aside from a copy provided to the
applicant by the manning agency;
c. Information Sheet;
d. Valid Seafarers Identification and Record Book;
e. Seafarers Registration Certificate;chanroblesvirtualawlibrary
f. Other documents which the Administration may find necessary. (Section 1, Rule IV, Part III, Ibid.).

SECTION 2. Payment of Processing Fees. The required processing fees shall be paid to the Administration upon
submission of the request for processing. (Section 2, Rule IV, Part III, Ibid.).

SECTION 3. Period to Deploy. An agency shall deploy its hired seafarers within sixty (60) days from the date of
issuance of the overseas employment certificate. (Section 3, Rule IV, Part III, Ibid.).

SECTION 4. Cancellation of the Seafarer's Documents. If the deployment of the seafarer does not materialize
within thirty (30) days from the lapse of the period to deploy, the agency shall report the non-deployment and reasons
thereof and apply to the Administration for cancellation of the seafarer's processed documents.

If the deployment of the seafarer does not materialize due to his fault, the agency may charge the seafarer for actual
expenses incurred in connection with his documentation and processing, duly supported by official receipts. (Section 4,
Rule IV, Part III, Ibid.).

SECTION 5. In-House Processing Facility. The Administration shall extend to qualified manning agencies an in-
house processing facility for the documents of seafarers who are scheduled for deployment. Agencies that qualify to
enjoy the privilege shall comply with the documentary requirements.

The agencies shall be subject to regular audit and/or inspection by the Administration to ensure compliance with the
prescribed guidelines on in-house processing facility and shall be required to submit a monthly report on the utilized or
missing overseas employment certificates to the Administration.

The Administration reserves the right to recall the privileges and incentives being enjoyed by an agency should there
be an established case of violation of POEA rules and regulations. Automatic preventive suspension shall be imposed
in case of violation of the prescribed guidelines. (Section 5, Rule IV, Part III, Ibid.).

PART IV
Employment Standards

RULE I
Formulation of Standard Employment Contracts

SECTION 1. Standard Employment Contracts. The Administration, through tripartite consultation involving the
seafarers and the private sector, shall determine, formulate and establish minimum separate and distinct standard
employment contracts for seafarers in accordance with accepted international standard and maritime practice. These
standard employment contracts, which shall be reviewed periodically to keep them attuned to international
requirements and demands, shall be the minimum requirement in every individual contract approved by the
Administration. (Section 1, Rule I, Part IV, Ibid.).

SECTION 2. Freedom to Stipulate. Parties to the individual employment contract are allowed to stipulate and
mutually agree to other terms and conditions more than the minimum standards; provided that the stipulation are
mutually beneficial to both parties and are not contrary to law, public policy and morals. (Section 2, Rule I, Part IV,
Ibid.).
 PART V
Recruitment Violation and Related Cases

RULE I
Legal Assistance and Enforcement Measures

SECTION 1. Acts Constituting Illegal Recruitment. Illegal recruitment shall mean any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services,
promising or advertising for employment abroad, whether for profit or not, when undertaken by a non-licensee or non-
holder of authority. Provided, that any such non-licensee or non-holder who, in any manner, offers or promises for a
fee employment abroad to two or more persons shall be deemed so engaged.
It shall likewise include the following acts committed by any person whether or not a holder of a license or
authority:cralaw

a. Charging or accepting directly or indirectly any amount of money, goods or services, or any fee or bond for any
purpose from an applicant seafarer;
b. Furnishing or publishing any false notice or information or document in relation to recruitment or employment;
c. Giving any false notice, testimony, information or document or committing any act of misrepresentation for the
purpose of securing a license or authority under the Labor Code;chanroblesvirtualawlibrary
d. Inducing or attempting to induce a seafarer already employed to quit his employment in order to offer him another
unless the transfer is designed to liberate the seafarer from oppressive terms and conditions of employment;
e. Influencing or attempting to influence any person or entity not to employ any seafarer who has not applied for
employment through his agency;
f. Engaging in the recruitment or deployment of seafarers in jobs harmful to public health or morality or to the
dignity of the Republic of the Philippines, as may be prohibited by law or duly constituted authority;
g. Obstructing or attempting to obstruct inspection by the Secretary or by his duly authorized representative;
h. Failure to submit 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
under penalty of law;
i. Substituting or altering to the prejudice of the seafarer, employment contracts approved and verified by the
Department from the time of actual signing thereof by the parties up to and including the period of expiration of the
same without the approval of the Department;
j. For an officer or agent of a manning agency 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;
k. Withholding or denying travel documents from applicant seafarer before departure for monetary or financial
considerations other than those authorized under the Labor Code and its implementing rules and regulations;
l. Failure to actually deploy without valid reasons as determined by the Department; and
m. Failure to reimburse the expenses incurred by the seafarer in connection with his documentation and processing
for purposes of deployment, in cases where the deployment does not actually take place without the seafarer's fault.
(Section 1, Rule I, Part V, Ibid.).

SECTION 2. Independent Administrative Action. The institution of criminal action is without prejudice to any
administrative action against the licensee or holder of authority cognizable by the Administration, which could proceed
independently of the criminal action. (Section 2, Rule I, Part V, Ibid.).
SECTION 3. Anti-Illegal Recruitment Programs. The Administration shall adopt policies and procedures, prepare and
implement programs toward the eradication of illegal recruitment activities such as but not limited to the following:

a. Providing assistance to victims of illegal recruitment and related cases;chanroblesvirtualawlibrary

b. Assistance in the processing of suspected illegal recruiters;chanroblesvirtualawlibrary
c. Special operations such as surveillance of persons and entities suspected to be engaged in illegal recruitment; and
d. Information and education campaign.

Whenever necessary, the Administration shall coordinate with other appropriate entities in the implementation of said
programs. (Section 3, Rule I, Part V, Ibid.).

SECTION 4. Legal Assistance. The Administration shall provide free legal assistance to victims of illegal
recruitment and related cases including but not limited to legal advice, assistance in the preparation of complaints and
supporting documents, institution of criminal actions and whenever necessary, provide counseling assistance during
preliminary investigation and hearings. (Section 4, Rule I, Part V, Ibid.).
SECTION 5. Receiving Complaints for Illegal Recruitment. Victims of illegal recruitment and related cases may
file with the Administration a report or complaint in writing and under oath for assistance purposes.
In regions outside the National Capital Region, complaints and reports involving illegal recruitment may be filed with
the appropriate regional office of the Administration or the Department. (Section 5, Rule I, Part V, Ibid.).

SECTION 6. Action on the Complaint/Report. Where the complaint/report alleges that illegal recruitment
activities are on-going, surveillance shall be conducted. If illegal recruitment activities are confirmed, issuance of
closure order may be recommended to the Administrator through the Director of the Licensing and Regulation Office
(Director-LRO).

If sufficient basis for criminal action is found, the case shall be immediately forwarded to the appropriate office for
such action. (Section 6, Rule I, Part V, Ibid.).

SECTION 7. Surveillance. The Administrator and/or designated official in the DOLE regional offices may, on his
own initiative, conduct surveillance on the alleged illegal recruitment activities.

Within two (2) days from the termination of surveillance, a report supported by an affidavit, shall be submitted to the
Director-LRO or the Regional Director concerned as the case may be. (Section 7, Rule I, Part V, Ibid.).

SECTION 8. Issuance of Closure Order. The Secretary or the Administrator or the DOLE Regional Director of the
appropriate regional office outside the National Capital Region, or their duly authorized representatives may conduct
an ex-parte preliminary examination to determine whether the activities of a non-licensee constitute a danger to
national security and public order or will lead to further exploitation of job seekers. For this purpose, the Secretary,
Administrator or Regional Director concerned or their duly authorized representatives, may examine personally the
complainants and/or their witnesses in the form of searching questions and answers and shall take their testimony under
oath. The testimony of the complainant/s and/or witnesses shall be reduced in writing and signed by them.

If upon preliminary examination or surveillance, the Secretary, Administrator or DOLE Regional Director is satisfied
that such danger or exploitation exists, a written order may be issued for the closure of the establishment being used for
illegal recruitment activity.

In case of a business establishment whose license or permit to operate a business was issued by the local government,
the Secretary, Administrator or Regional Director concerned shall likewise recommend to the granting authority the
immediate cancellation/revocation of the license or permit to operate its business. (Section 8, Rule I, Part V, Ibid.).

SECTION 9. Implementation of Closure Order. Closure order shall be served upon the offender or the person in
charge of the establishment subject thereof. The closure shall be effected by sealing the establishment and posting a
notice of such closure in bold letters in a conspicuous place in the premises of the establishment. Whenever necessary,
the assistance and support of the appropriate law enforcement agencies may be requested for this purpose. (Section 9,
Rule I, Part V, Ibid.).

SECTION 10. Report on Implementation. A report on the implementation of the closure order executed under
oath, stating the details of the proceedings undertaken shall be submitted to the Director-LRO or the Regional Director
concerned, as the case may be, within two (2) days from the date of implementation. (Section 10, Rule I, Part V, Ibid.).

SECTION 11. Institution of Criminal Action. The Secretary, Administrator or the Regional Director concerned, or
their duly authorized representatives or any aggrieved person, may initiate the corresponding criminal action with the
appropriate office.
Where a complaint is filed with the Administration and the same is proper for preliminary investigation, it shall file the
corresponding complaint with the appropriate officer, with the supporting documents. (Section 11, Rule I, Part V,
Ibid.).

SECTION 12. Motion to Lift a Closure Order. A motion to lift a closure order which has already been
implemented may be entertained only when filed with the LRO within ten (10) calendar days from the date of
implementation thereof. The motion shall clearly state the grounds upon which it is based, attaching thereto the
documents in support thereof. A motion to lift which does not conform with the requirements herein set forth shall be
denied. (Section 12, Rule I, Part V, Ibid.).

SECTION 13. Who May File. The motion to lift a closure order may be filed only by the following:cralaw
a. Owner of the building or his duly authorized representative;
b. Building administrator or his duly authorized representative;
c. The person or entity against whom the closure order was issued and implemented or the duly authorized
representative; or
d. Any other person or entity legitimately operating within the same premises closed/padlocked whose
operations/activities are distinct from the recruitment activities of the person/entity subject of the closure order.
(Section 13, Rule I, Part V, Ibid.).

SECTION 14. Grounds for Lifting/Re-Opening. Lifting of the closure order and/or reopening of the office closed
or padlocked may be granted on any of the following grounds:cralaw

a. That the office is not the subject of the closure order;

b. That the contract of lease with the owner of the building or the building administrator has already been cancelled
or terminated. The request to re-open shall be duly supported by an affidavit of undertaking either of the owner of the
building or the building administrator that the same will not be leased/rented to any other person/entity for recruitment
purposes without the necessary license from POEA;
c. That the office is shared by a person/entity not involved in illegal recruitment activities, whether directly or indirectly; or
d. Any other ground that the POEA may consider as valid and meritorious.

the person alleged to have conducted illegal recruitment activities. (Section 14, Rule I, Part V, Ibid.).

SECTION 15. Appeal. The order of the Administrator denying the motion to lift may be appealed to the Secretary
within ten (10) calendar days from the service of receipt hereof. (Section 15, Rule I, Part V, Ibid.).

SECTION 16. Re-Padlocking of Office. Where a re-opened office is subsequently confirmed to be used for illegal
recruitment activities, a new closure order shall be issued which shall no longer be subject to a motion to lift. (Section
16, Rule I, Part V, Ibid.).

RULE II
Recruitment Violations and Related Cases

SECTION 1. Jurisdiction. The Administration shall exercise original and exclusive jurisdiction to hear and decide
all cases which are administrative in character, involving or arising out of violation of recruitment laws, rules and
regulations or violation of the conditions for issuance of license to recruit seafarers, including refund of fees collected
from seafarers. (Section 1, Rule II, Part V, Ibid.).

SECTION 2. Grounds for imposition of administrative sanctions:cralaw

a. Charging, imposing or accepting directly or indirectly, any amount of money goods or services, or any fee or bond
for any purpose from an applicant seafarer;chanroblesvirtualawlibrary
b. Engaging in acts of misrepresentation, such as furnishing or publishing any false or deceptive notices or
information in connection with the recruitment and employment of seafarers;
c. Inducing or attempting to induce an already employed seafarer to transfer from or leave his employment for
another unless the transfer is designed to liberate the seafarer from oppressive terms and conditions or employment;
d. Influencing or attempting to influence any person or entity not to employ any seafarer who has not applied for
employment through his agency;
e. Obstructing or attempting to obstruct inspection by the Secretary, the Administrator or their duly authorized representatives;
f. Substituting or altering to the prejudice of the seafarer employment contracts and other documents approved and
verified by the Department from the time of actual signing thereof by the parties up to and including the period of
expiration of the same without the Department's approval;
g. Failure to submit reports related to overseas recruitment and employment within the specified time, as may be
required by the Secretary or the Administration;
h. For the owner, partner, or officer/s of any licensed agency to become an officer or member of the Board of any
corporation or partnership engaged directly or indirectly in the management of a travel agency;
i. Withholding or denying travel or other pertinent documents from seafarers for reasons other than those authorized
under existing laws and its implementing rules and regulations;
j. Engaging in recruitment activities in places other than that specified in the license without previous authorization
from the Administration;
k. Appointing or designating agents, representatives or employees without prior approval from the Administration;
l. Falsifying or altering travel documents of applicant seafarer;
m. Deploying seafarers whose employment and travel documents were not processed by the Administration or those
agencies authorized by it;
n. Deploying seafarers to principals not accredited by the Administration or to vessels not enrolled with the deploying agency;
o. Failure to deploy a seafarer within the prescribed period without valid reason;
p. Disregard of lawful orders, notices and other processes issued by the Administration;
q. Coercing a seafarer to accept prejudicial arrangements in exchange for certain benefits that rightfully belong to the seafarer;
r. Withholding of seafarers' salaries or remittances without justifiable reasons or shortchanging of remittances;
s. Engaging in act/s of misrepresentation for the purpose of securing a license or renewal thereof, such as giving false
testimonies or information or falsified documents;
t. Engaging in the recruitment or deployment of seafarers in jobs harmful to public health or morality or to dignity of
the Republic of the Philippines;
u. Allowing persons who are otherwise disqualified to participate in the overseas employment program under existing
laws, rules and regulations to participate in the management and operation of the agency;chanroblesvirtualawlibrary
v. Transfer or change of ownership of a single proprietorship licensed to engage in overseas employment;
w. Failure to comply with its undertaking to provide Pre-Departure Orientation Seminar to its seafarers;
x. Failure to comply with the undertaking to deploy the required number of seafarers within the period, provided in
these Rules;
y. Non-compliance with any other undertaking in connection with the issuance or renewal of the license;
z. Failure to reimburse expenses incurred by the seafarer in connection with his documentation and processing for
purposes of deployment, where deployment does not take place without the seafarer's fault; and
aa. Violation of other pertinent provisions of the Code and other relevant laws, rules and regulations, guidelines and
other issuance on recruitment and deployment of seafarers for overseas employment and the protection of their welfare.
(Section 2, Rule II, Part V, Ibid.).

RULE III
Filing of Complaints

SECTION 1. Who May File a Complaint. Any aggrieved person may file a complaint in writing and under oath for
violation of the provisions of the Labor Code, POEA rules and regulations and other issuances relating to recruitment.

For this purpose, an aggrieved person is one who is prejudiced by the commission of a violation.

However, the Administration, on its own initiative, may conduct proceedings based on reports of violation of the Labor
Code, these rules and other issuances, subject to preliminary evaluation. (Section 1, Rule III, Part V, Ibid.).

SECTION 2. Venue. Any complaint arising out of recruitment violation or violation of the conditions of license
may be filed with the Adjudication Office of this Administration or in the nearest POEA Regional Centers/Extension
Units or the DOLE Regional Office exercising territorial jurisdiction over the place where the complainant was recruited at
the option of the complainant. The office to which complaint was first filed shall take cognizance of the case.

Where the complainant was recruited within the National Capital Region, the complaint shall be filed with the
Adjudication Office of the Administration.

In the case of reports received by the Administration, the same shall be investigated by the Adjudication Office, this
Administration or at the appropriate Regional Office/POEA Regional Center/Extension Unit.

However, the venue of cases filed with the Adjudication Office may be transferred to the Regional Office/POEA
Regional Center/Extension Unit before the respondent files its answer and upon request of either party and upon
approval by the Administration.

For purpose of hearing and receiving of evidence, the DOLE Regional Office exercising territorial jurisdiction over the
place where the complainant was recruited may be deputized by the Secretary of Labor to take cognizance of the case
for submission of its findings and recommendations to the Administrator. (Section 2, Rule III, Part V, Ibid.).

SECTION 3. Contents of Complaint. All complaints must contain, among others, the following:cralaw

a. The name/s and address/es of the complainants;

b. The name/s and address/es of the respondents;
c. The nature of the complaint;
d. The substance, cause/grounds of the complaint;
e. When and where the action complained of happened;
f. The amount of claim, if any;
g. The relief/s sought.

The complaint shall be under oath and shall, whenever possible, be accompanied by supporting documents, together
with a certificate of non-forum shopping. (Section 3, Rule III, Part V, Ibid.).

SECTION 4. Docket and Assignment of Cases. Complaints duly received shall be docketed and raffled for
investigation and hearing. (Section 4, Rule III, Part V, Ibid.).

RULE IV
Action upon Complaint

SECTION 1. Answer. Upon receipt of the complaint, the Administration shall issue an order, attaching thereto a
copy of the complaint and supporting documents, if any, directing the respondents to file a verified Answer and not a
Motion to Dismiss within ten (10) calendar days from receipt, attaching proof that a copy was sent to the complainant.
(Section 1, Rule IV, Part V, Ibid.).

SECTION 2. Failure to File Answer. In case of failure to file Answer, the investigation/hearing shall proceed ex-
parte.

An Answer filed out of time shall not be admitted except on meritorious grounds and upon motion. (Section 2, Rule IV,
Part V, Ibid.).

SECTION 3. Motion for Extension. Only one motion for extension of time to file Answer shall be allowed. The
Overseas Employment Adjudicator, upon receipt of such motion, may, upon meritorious grounds, grant a non-
extendible period of ten (10) calendar days, except where allegations in the complaint refer to facts or circumstances
which occurred abroad making it necessary to verify with the concerned foreign principal, a longer period may be
granted. A ruling on the motion may be made by the Overseas Employment Adjudicator during the proceedings and
entered in the minutes or sent by personal service or by registered mail. (Section 3, Rule IV, Part V, Ibid.).

SECTION 4. Proof and Completeness of Service. The contents of the return shall be proof of the facts stated
therein. Service by registered mail is complete upon receipt by the addressee or agent; but if the addressee or agent fails
to claim his mail from the postmaster, service shall take effect after the date of the last notice. Where the present
location of the addressee is unknown, service made at the last known address shall be sufficient. (Section 4, Rule IV,
Part V, Ibid.).

Personal service made to any officer or personnel of the manning agency shall likewise be sufficient.

SECTION 5. Nature of Proceedings. The proceedings shall comply with the requirements of due process without
strictly adhering to the technicalities of procedure and evidence applicable to judicial proceedings. The Overseas
Employment Adjudicator may avail himself of reasonable means to ascertain the facts of the case. (Section 5, Rule IV,
Part V, Ibid.).

SECTION 6. Preliminary Hearing. The Overseas Employment Adjudicator shall set the date, time and place of the
preliminary hearing with due notice to the parties with the end view of arriving at an amicable settlement and for
purposes of simplifying the issues, marking of evidence and stipulation of facts. (Section 6, Rule IV, Part V, Ibid.).

SECTION 7. Clarificatory Questions. At any stage of the proceedings and prior to the submission by the parties of
the case for resolution, the Overseas Employment Adjudicator may initiate clarificatory questions to the parties or their
witnesses to further elicit relevant facts or information.

The Overseas Employment Adjudicator may set a hearing where the parties shall be given an opportunity to be present
but without right to examine or cross-examine. If the parties so desire, they may submit questions to the Overseas
Employment Adjudicator who may ask the question to the parties or witnesses concerned. (Section 7, Rule IV, Part V, Ibid.).

SECTION 8. Service of Order to Appear/To Produce Documents. The Administration shall issue an order to
appear/to produce documents. The process server who personally served the order to appear/to produce documents,
notice order, resolution or decision shall submit his return within five (5) calendar days from the date of his service
thereof, stating legibly in his return his name, the mode/s of service, the name/s of the other person/s served and the
date/s of receipt. If no service was effected, the serving officer shall state the reason therefore. The return shall form
part of the records of the case. (Section 8, Rule IV, Part V, Ibid.).

SECTION 9. Failure or Refusal to Obey Order To Appear/To Produce Documents. The license of an agency
whose officers or employers fail or refuse to comply with an order to appear/to produce documents without justifiable
reason shall be suspended until otherwise lifted. This is without prejudice to the outcome of the investigation where the
proper penalty may be imposed. (Section 9, Rule IV, Part V, Ibid.).

SECTION 10. Summary Judgment. Should the Overseas Employment Adjudicator find, upon consideration of the
complaint, answer and evidence submitted, that resolution/decision may be rendered, the case shall be deemed
submitted and a summary judgment shall by issued. (Section 10, Rule IV, Part V, Ibid.).

SECTION 11. Effects of Withdrawal of Complaint/Desistance. The withdrawal/desistance of the complaining

witness shall not bar the Administration from proceeding with the investigation of the recruitment violation/s. The
Administration shall resolve the case on the merits and impose the appropriate penalties. (Section 11, Rule IV, Part V,
Ibid.).

SECTION 12. Resolution of the Case. Except in cases of preventive suspension, the Overseas Employment
Adjudicator shall, within ninety (90) calendar days from the filing of the case, submit his findings and
recommendations in the form of a draft order. (Section 12, Rule IV, Part V, Ibid.).

SECTION 13. Who May Issue Orders/Resolutions. The Administrator may issue orders of reprimand, suspension
of documentary processing, suspension, cancellation or revocation of license, or dismissal on the merits of the case.

All other orders or resolutions shall be signed by the Director of the Adjudication Office. (Section 13, Rule IV, Part V,
Ibid.).

SECTION 14. Contents of Orders/Resolutions. Orders/Resolutions issued by the Administration shall be clear and
concise and shall include a brief statement of the following:cralaw

a. Facts of the case;

b. Issue/s involved;
c. Applicable laws/s or rule/s;
d. Conclusions and reasons therefore; and
e. Specific remedy/ies or relief/s granted or imposable sanction/s. (Section 14, Rule IV, Part V, Ibid.).

SECTION 15. Suspension of Documentary Processing. The Administration may order the suspension of the
processing of documents of a respondent agency for violation of any provision of these Rules, POEA Orders and other
issuances. This is without prejudice to the outcome of the investigation wherein the proper penalty may be imposed.
(Section 15, Rule IV, Part V, Ibid.).

SECTION 16. Preventive Suspension. Pending investigation of the recruitment violation/s, the license of the
respondent agency may be suspended for a period not exceeding the imposable penalties under the revised schedule of
penalties, on the following grounds:cralaw

a. There exist reasonable grounds to believe that the continued operation of the agency will lead to further violation
or exploitation of the workers being recruited or adversely affect friendly relations with any country or otherwise
prejudice national interest; and

b. There is a prima facie evidence of a case for violation of the pertinent provisions of the Labor Code, its
implementing rules and regulations, POEA Rules and Regulations or any issuance of the Administration, where the
evidence of guilt is strong.

The Administrator may issue an order lifting or modifying the order of preventive suspension as the circumstances may
warrant. Where an Order of Preventive Suspension is issued by the Administration, the Overseas Employment
Adjudicator shall, within sixty (60) calendar days from filling of the case, submit his findings and recommendation in
the form of a draft order. (Section 16, Rule IV, Part V, Ibid.).

SECTION 17. Effects of Orders of Suspension, Revocation or Cancellation of License. An order of suspension,
cancellation or revocation of license shall have the effect of suspending or terminating all activities of the agency
which fall under the definition of recruitment and placement. (Section 17, Rule IV, Part V, Ibid.).

SECTION 18. Fines. The Administrator may also impose additional fines for failure to comply with a final order.
(Section 18, Rule IV, Part V, Ibid.).

RULE V
Classification of Offenses and Schedule of Penalties

SECTION 1. Classification of Offenses. Administrative offenses are classified into serious, less serious and light,
depending on their gravity. The Administration shall impose the appropriate administrative penalties for every
recruitment violation.

A. The following are serious offenses with their corresponding penalties:cralaw

1. Engaging in act/s of misrepresentation for the purpose of securing a license or renewal thereof, such as giving false
information or documents

1st Offense Cancellation of License

2. Engaging in the recruitment or placement of seafarers in jobs harmful to public health or morality or to dignity of
the Republic of the Philippines
1st Offense Cancellation of License

3. Transfer or change of ownership of a single proprietorship licensed to engage in overseas employment

1st Offense Cancellation of License

4. Charging or accepting directly or indirectly any amount of money, goods or services, or any fee or bond for any
purpose from the seafarers
1st Offense Cancellation of License

The penalty shall carry the accessory penalty of refund of the fee charged or collected from the worker.
B. The following are less serious offenses with their corresponding penalties:cralaw
1. Engaging in acts of misrepresentation in connection with recruitment and placement of seafarers, such as
furnishing or publishing any false notice, information or document in relation to recruitment or employment
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

2. Obstructing or attempting to obstruct inspection by the Secretary, the Administrator or their duly authorized
representatives
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

3. Substituting or altering to the prejudice of the seafarer, employment contracts approved and verified by the
Department from the time of actual signing thereof by the parties up to and including the period of the expiration of the
same without the approval of the Department
1st Offense Suspension of License (Two Months to Six Months) ESCDHA
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

4. Withholding or denying travel or other pertinent documents from seafarers for reasons other than those authorized
under existing laws and regulations.
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License
The penalty shall carry the accessory penalty for immediate return of the documents withheld.

5. Engaging in recruitment activities in places other than that specified in the license without previous authorization
from the Administration
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License
6. Appointing or designating agents, representatives or employees without prior approval from the Administration
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

7. Falsifying or altering travel documents of an applicant seafarer in relation to recruitment activities.

1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

8. Deploying seafarers whose employment and travel documents were not processed by the Administration or those
agencies authorized by it.
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

9. Deploying seafarers to principals not accredited/registered by the Administration or to vessels not enrolled to the
deploying agency.
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

10. Withholding of seafarers' salaries or remittances without justifiable reasons or shortchanging of remittances.
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License
The penalty shall carry the accessory penalty of release of the salaries or remittances being claimed

11. Allowing persons who are otherwise disqualified to participate in the overseas employment program under
existing laws, rules and regulations to participate in the management and operation of the agency
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

12. Failure to reimburse expenses incurred by the seafarers in connection with his documentation and processing for
purposes of deployment, where deployment does not take place without the seafarer's fault
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

The penalty shall carry the accessory penalty of immediate refund of expenses incurred by the worker.

13. Failure to comply with the undertaking to provide Pre-Departure Orientation Seminar to seafarers
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

14. Non-compliance with any other undertaking in connection with the issuance or renewal of the license
1st Offense Suspension of License (Two Months to Six Months)
2nd Offense Suspension of License (Six Months and One day to One year)
3rd Offense Cancellation of License

C. The following are light offenses with their corresponding penalties:cralaw

1. For the owner, partner, or officer/s of any licensed agency to become an officer or member of the Board of any
corporation or partnership engaged directly or indirectly in the management of a travel agency
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

2. Inducing or attempting to induce an already employed seafarer to transfer from or leave his employment for
another unless the transfer is designed to liberate a seafarer from oppressive terms and conditions of employment
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

3. Influencing or attempting to influence any person or entity not to employ any seafarer who has not applied for
employment through his agency
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

4. Failure to deploy a seafarer within the prescribed period without valid reason
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

5. Coercing seafarers to accept prejudicial arrangements in exchange for certain benefits that rightfully belong to them
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

6. Disregard of orders, notices and other legal processes issued by the Administration
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

7. Failure to submit reports related to overseas recruitment and employment within the specified time as may be
required by the Secretary or the Administration
1st Offense Reprimand
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

8. Violation of other pertinent provisions of the Code and other relevant laws, rules and regulations, guidelines and
other issuances on recruitment and placement of seafarers for overseas employment and the protection of their welfare
1st Offense Reprimand chanroblesvirtualawlibrary
2nd Offense Suspension of License (One Month to Three Months)
3rd Offense Suspension of License (Three Months and One day to Six Months)
4th Offense Cancellation of License

Money claims arising from recruitment violation may be awarded in addition to the administrative penalties imposed.
(Section 1, Rule V, Part V, Ibid.).

SECTION 2. Imposition of Fines. In addition or in lieu of the penalty of suspension of license, the Administration
may impose the penalty of fine which shall be computed at P10,000.00 for every month of suspension. (Section 2, Rule
V, Part V, Ibid.).

SECTION 3. Mitigating, Aggravating or Alternative Circumstances. In the determination of the penalties to be imposed,
mitigating, aggravating and alternative circumstances attendant to the commission of the offense shall be considered.

a. First Offender;
b. Admission of guilt and voluntary restitution, where applicable;
c. Good faith;
d. Exemplary Performance;
e. Recidivism;
f. Prejudice to the worker;
g. Gross negligence;
h. Other analogous circumstances. (Section 3, Rule V, Part V, Ibid.).

SECTION 4. Manner of Imposition. When applicable, the imposition of the penalty may be made in accordance
with the manner provided below:cralaw

a. The minimum of the penalty shall be imposed where only mitigating and no aggravating circumstances are present.
b. The medium of the penalty shall be imposed where no mitigating and aggravating circumstances are present.
c. The maximum of the penalty shall be imposed where only aggravating and no mitigating circumstances are present.
d. Where aggravating and mitigating circumstances are present, paragraph (a) shall be applied where there are more
mitigating circumstances present; paragraph (b) shall be applied when the circumstances equally offset each other; and
paragraph (c) shall be applied where there are more aggravating circumstances. (Section 4, Rule V, Part V, Ibid.).
SECTION 5. Penalty for Cases Involving Five or More Complainants. A respondent found guilty of committing
an offense, regardless of the number or nature of charges, against five (5) or more complainants shall be imposed the
penalty of cancellation of license. (Section 5, Rule V, Part V, Ibid.).

RULE VI
Appeal/Petition for Review

SECTION 1. Jurisdiction. The Secretary shall have exclusive jurisdiction to act on appeals/petitions for review of
recruitment violation cases and other related cases decided by the Administration. (Section 1, Rule VI, Part V, Ibid.).

SECTION 2. Period to Appeal. The party aggrieved by a decision of the Administration may appeal the same to
the Secretary of Labor and Employment within fifteen (15) calendar days from receipt of a copy of the decision.
Failure of the aggrieved party to perfect his appeal within the reglementary period shall render the decision of the
Administration final and executory. (Section 2, Rule VI, Part V, Ibid.).

SECTION 3. Requirements for Appeal. The appealing party shall file a Notice of Appeal and an Appeal
Memorandum with the Adjudication Office or the Regional Office of the Administration, as the case may be. In case a
fine and/or a monetary award is imposed against the appealing party, he shall also file a supersedeas bond in the
amount of such fine and/or monetary award, in cash or in surety bond posted by a surety company acceptable to the
Administration. The Appeal Memorandum shall clearly point out the errors of law and/or fact in the decision appealed
from and shall be verified. Any appeal which does not comply with these requirements shall not be acted upon and the
Administration shall issue forthwith an order for the execution of the decision for which the appeal is sought. (Section
3, Rule VI, Part V, Ibid.).

SECTION 4. Transmittal of the Records of the Case on Appeal. Within twenty-four (24) hours from receipt of the
appeal seasonably filed with the corresponding requirements, the Adjudication Office, shall transmit the entire records
of the case to the Office of the Secretary of Labor and Employment. (Section 4, Rule VI, Part V, Ibid.).

SECTION 5. Stay of Execution. The decision of the Administration shall be stayed during the pendency of the
appeal; Provided that where the penalty imposed carries the maximum penalty of twelve months suspension or
cancellation of license, the decision shall be immediately executory despite the pendency of the appeal.

Provided further that where the penalty imposed is suspension of license for one month or less, the decision shall be
immediately executory and may only be appealed on ground of grave abuse of discretion. (Section 5, Rule VI, Part V, Ibid.).

SECTION 6. Period to Resolve the Appeal. Appeals from the decision of the Administrator shall be resolved by
the Office of the Secretary for Labor and Employment within sixty (60) calendar days from receipt of the transmittal of
the entire records of the case. (Section 6, Rule VI, Part V, Ibid.).

RULE VII
Execution of Decisions

SECTION 1. Issuance of Writ of Execution. Unless otherwise provided in these Rules, after the Order has become
final and executory, the Administration upon motion or on its own initiative, shall issue a writ of execution requiring the
Enforcement Officer to enforce a monetary award or fine imposed in the decision. (Section 1, Rule VII, Part V, Ibid.).

SECTION 2. Form and Contents of a Writ of Execution. The writ of execution must be issued in the name of the
Republic of the Philippines, requiring the Enforcement Officer to execute the Orders of the Administrator or the
Secretary or his duly authorized representative, as the case may be.

The writ of execution must contain the dispositive portion of the order or decision sought to be executed. It must
require the Enforcement Officer to serve the writ upon the losing party or upon any other person required by law to
obey the same before proceeding to satisfy the judgment.

Execution shall proceed against the assets of the losing party in the following order:cralaw

a. Escrow deposit
b. Surety bond
c. Personal property
d. Real property
A writ of execution shall not be necessary for the enforcement of Orders in the following cases:cralaw

a. For the return of travel and other related documents. A copy of the order served upon the losing party or upon any
other required by law to obey such order is sufficient; and
b. Where the agency had earlier posted a cash or surety bond in relation to an appeal/petition for review. Certified
copies of the final and executory order and official receipt of the bond shall be sufficient basis for the preparation of the
voucher for the release of the amount to be refunded, or for the confiscation/forfeiture of the amount equivalent to the fine.

The writ of execution shall be valid and effective for a period of sixty (60) calendar days from issuance thereof.
(Section 2, Rule VII, Part V, Ibid.).

SECTION 3. Motion to Cancel Writ of Execution. Within five (5) days from receipt of a copy of Writ of
Execution, the judgment debtor may file a Motion to Cancel the Writ of Execution on meritorious ground. The filing of
such motion shall not stay the execution of the writ unless a cash or surety bond is posted equivalent to the judgment
award which shall answer for the claims in the event that the motion is denied.

An Order denying a Motion to Quash the Writ of Execution is final and no further motions of similar nature shall be
entertained. (Section 3, Rule VII, Part V, Ibid.).

SECTION 4. Enforcement of Writs. In executing an Order, the Enforcement Officer shall be guided strictly by the
Manual of Instructions for Enforcement Officers of the POEA which the Administration will adopt. (Section 4, Rule
VII, Part V, Ibid.).

SECTION 5. Garnishment. In cases where several writs of execution are issued against the same agency,
satisfaction of the claims of the workers against the escrow deposit or surety bond shall be on a "first-come, first-
served" basis, irrespective of the date of filing of the case or date of the decision or date of the writ of execution.
Provided that where the orders of garnishment are served simultaneously, the escrow or surety bond shall be pro-rated
among the claimants. (Section 5, Rule VII, Part V, Ibid.).

SECTION 6. Return of Writ of Execution. The Enforcement Officer implementing the writ of execution shall
submit his return immediately upon the satisfaction of the claim. Regardless, however, of the outcome of his
implementation, he shall submit his return not later than sixty (60) calendar days from the date of issuance thereof. The
return shall state the mode/s of service, the name/s of the person/s served and the date/s of receipt. The return shall also
indicate legibly the full name of the serving officer. The return shall form part of the records of the case. (Section 6,
Rule VII, Part V, Ibid.).

SECTION 7. Execution Pending Petition for Certiorari. Once a petition for certiorari has been filed with and
given due course by the appellate court the execution of the order insofar as the monetary award to private claimant is
concerned shall be stayed. (Section 7, Rule VII, Part V, Ibid.).

PART VI
Disciplinary Action Cases

RULE I
Jurisdiction and Venue

SECTION 1. Jurisdiction. The Administration shall exercise original and exclusive jurisdiction to hear and decide
disciplinary action cases against seafarers, foreign employers, and principals which are administrative in character.
(Section 1, Rule I, Part VI, Ibid.).

SECTION 2. Venue. Any complaint involving disciplinary action cases shall be filed with the Adjudication Office
of the Administration. (Section 2, Rule I, Part VI, Ibid.).

RULE II
Disciplinary Action Against Seafarers

SECTION 1. Grounds for Disciplinary Action and their Penalties. Commission by a seafarer of any of the
offenses enumerated below or of similar offenses shall be a ground for disciplinary action for which the corresponding
penalty shall be imposed:cralaw
A. Pre-Employment Offenses
1. Submission/furnishing or using false information or documents or any form of misrepresentation for purpose of
job application or employment.
1st Offense: One year to two years suspension from participation in the overseas employment program
2nd Offense: Two years and one day suspension from participation in the overseas employment program to Delisting
from the POEA Registry

2. Unjust refusal to join ship after all employment and travel documents have been duly approved by the appropriate
government agencies.
1st Offense: One year to two years suspension from participation in the overseas employment program
2nd offense: Two years and one day suspension from participation in the overseas employment program to Delisting
from the POEA Registry

B. Offenses During Employment

1. Smuggling or violation of any custom rules and regulations of the Philippines and of foreign ports
a. Smuggling any taxable item
1st Offense: One year to Two years suspension from POEA Registry
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

b. Possession or use of prohibited drugs, narcotics and other contraband

1st Offense: Delisting from POEA Registry

c. Gun-running or possession of explosives and the like

1st Offense: Delisting from POEA Registry

d. Abetting or conniving with others to commit smuggling

1st Offense: Two years to Three years suspension from POEA Registry
2nd Offense: Three years and one day suspension to Delisting from POEA Registry

e. Misdeclaration of or failing to declare articles leading to their seizure and fine to vessel
1st Offense : One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

f. Misdeclaration of or failing to declare articles leading to their seizure but vessel is not implicated
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Three years of suspension
3rd Offense: Three years and day suspension to Delisting from POEA Registry

g. Possession of pornographic materials leading to its seizure and fine to vessel

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

h. Any other violation which will not implicate the vessel

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

i. Any violation which will implicate the vessel

1st Offense: Three (3) years suspension to Delisting from POEA Registry

2. Desertion
a. Deserting or attempting to desert employment
1st Offense: Delisting from POEA registry

b. Advising, assisting or persuading another to desert employment

1st Offense: Five (5) years suspension to Delisting from POEA Registry

3. Absence without leave

a. Abandoning the post or duty without being properly relieved
1st Offense: One year suspension to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA registry

b. Leaving the vessel without permission from responsible officers during working hours
1st Offense: One year suspension to two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA registry

c. Entrusting to others assigned duties without authority of the department head

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Two (2) years suspension
3rd Offense: Two (2) years and one (1) day suspension to Delisting from POEA registry
d. Leaving the vessel without permission
1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Two (2) years suspension
3rd Offense: Two (2) years and one (1) day suspension to Delisting from POEA registry

4. Sleeping on post while on duty

1st Offense: One (1) year suspension to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA registry

5. Insubordination
a. Any act of disobedience to lawful orders of a superior officer
1st Offense: One (1) year suspension to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA registry

b. Attempting to assault a superior officer

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Two (2) years suspension
3rd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

c. Assaulting a superior officer/other persons on business with the ship without the use of deadly weapon
1st Offense: One (1) year suspension to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

d. Assaulting a superior officer/other persons on business with the ship with the use of deadly weapon
1st Offense: Delisting from POEA Registry

e. Behaving with disrespect towards a superior officer

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry

f. Insulting a superior officer by words or deed

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry

g. Inciting another to commit insubordination

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA registry

6. Drunkenness
a. Being drunk while on duty
1st Offense: Two (2) years to Three (3) years suspension
2nd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry

b. Creating trouble on board due to intoxication

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry

c. Failure to perform assigned jobs due to intoxication

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry

7. Creating trouble outside the vessel's premises

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry

8. Gambling
a. Which results in fighting or any incident as to upset the harmonious relationship on board the vessel
1st Offense: One (1) year to two (2) years suspension
2nd offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

b. Any other form of gambling which is not purely recreational

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Three (3) years suspension
3rd Offense: Three (3) years and one (1) day suspension to Delisting from POEA Registry
9. Violation of company policies and regulations
a. Pilferage or theft of ship's store or cargo
1st Offense: One (1) year to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

b. Embezzlement of company funds or monies and/or properties of a fellow worker entrusted for delivery to kin or
relatives in the Philippines
1st Offense: One (1) year to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

c. Unauthorized disposal of company vessel's properties for personal gain

1st Offense: One (1) year to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

d. Any act of dishonesty with intention to defraud the company

1st Offense: One (1) year to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

e. Gross negligence and failure to observe proper storage and cargo handling, procedures resulting in delay of vessels
and/or damage to cargoes
1st Offense: One (1) year to two (2) years suspension
2nd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

f. Failure to observe and comply with regulation and non-baggage shipment and acceptance of parcels on board
1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Two (2) years suspension
3rd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

g. Failure to observe regulations on expiration of shore liberty

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Two (2) years suspension
3rd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

h. Being left behind by vessel in foreign port without justifiable reason

1st Offense: Six (6) months to one (1) year suspension
2nd Offense: One (1) year and one (1) day to Two (2) years suspension
3rd Offense: Two (2) years and one (1) day suspension to Delisting from POEA Registry

i. Disorderly conduct and/or disrespect towards passengers

1st Offense: One (1) year to Two (2) years suspension
2nd Offense: Two (2) years and one (1) day to Delisting from POEA Registry

j. Immorality so as to cast aspersion on the good name of the vessel and company
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day to Delisting from POEA Registry

k. Willfully inflicting harm or injury to others

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day to Delisting from POEA Registry

10. Incompetency and inefficiency

1st Offense: Two years to Three years suspension
2nd Offense: Three years and one day suspension to Delisting from POEA Registry

11. Inciting mutiny, malicious destruction of ship's property at any activity which will hamper the efficient operation
of the vessel
1st Offense: Two years to Three years suspension
2nd Offense: Three years and one day suspension to Delisting from POEA Registry

12. Concerted action to breach approved contracts

1st Offense: Two years to Three years suspension
2nd Offense: Three years and one day suspension to Delisting from POEA Registry

13. Any activity which tends to destroy harmonious relationship of the company
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day to Delisting from POEA Registry

14. Grave abuse of authority

a. Grave abuse of authority (with the use of deadly weapon) resulting in harm or injury to subordinate
1st Offense: Delisting from POEA Registry

b. Grave abuse of authority (without the use of deadly weapon) resulting in harm or injury to subordinate
1st Offense: Two years to Three years suspension
2nd Offense: Three years and one day suspension to Delisting from POEA Registry

c. Any other case of abuse of authority

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day to Three years suspension
3rd Offense: Three years and one day suspension to Delisting from POEA Registry

15. Other gross misbehaviors prejudicial to good order and discipline

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

16. Negligence causing, damage, loss, spoilage or deterioration of vessel's stocks and property
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

17. Connivance with or cuddling of stowaway

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

18. Willfully making false statement, reports, certification or spurious seafarer's documents for personal gain or with
intent to mislead or defraud the company
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

19. Any other case as to cast aspersion on the good name of the company and vessel
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

20. Violation of safety and environmental rules/regulations

1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry

21. Failure to observe the drug and alcohol policy of the company
1st Offense: One year to Two years suspension
2nd Offense: Two years and one day suspension to Delisting from POEA Registry (Section 1, Rule II, Part VI, Ibid.).

SECTION 2. Who May File. Any person may file with the Administration a complaint in writing and under oath
for disciplinary action against a seafarer.

The Administration may, on its own initiative, conduct proceedings against a seafarer on the basis of verifiable or
official reports. (Section 2, Rule II, Part VI, Ibid.).

SECTION 3. Contents and Form of Complaint. All complaints shall be under oath and must contain, among
others, the following:cralaw

a. Name/s and address/es of the complainant/s;

b. Name/s and address/es of the respondents;
c. Specific acts or omission/s constituting the alleged offense;
d. Place where the offense was committed;
e. Date when the offense was committed;
f. The relief/s sought.

All supporting documents must be attached to the complaint, whenever possible. (Section 3, Rule II, Part VI, Ibid.).

SECTION 4. Exempting Circumstances. The following considerations shall be legitimate reasons for the refusal
of a seafarer to depart for the worksite, or to abandon or withdraw from employment:cralaw

a. Exposure to hazardous or demeaning working and living conditions;

b. Refusal of the employer or principal to grant, release or remit wages and other benefits due the seafarer;
c. War, plague or other calamities at the worksite; and
d. Violation of labor laws of the Philippines, the host country, international labor and maritime laws. (Section 4, Rule
II, Part VI, Ibid.).

SECTION 5. Temporary Disqualification from Maritime Employment. A respondent seafarer subject of a pending
complaint for disciplinary action, as provided for in Section 1 (A&B), Rule II, Part VI of these Rules, or those against
whom a warrant of arrest or hold departure order is issued by competent authority shall be disqualified from maritime
employment program until jurisdiction over the respondent is properly acquired by the Administration. (Section 5, Rule
II, Part VI, Ibid.).

SECTION 6. Effect of Filing an Answer. Upon filing of an answer, the respondent shall be qualified for maritime
employment without prejudice to the outcome of the investigation wherein the proper penalty may be imposed.
(Section 6, Rule II, Part VI, Ibid.).

SECTION 7. Disqualification of Maritime Employment. A seafarer against whom suspension or disqualification

has been imposed through a final order, decision, or resolution shall be disqualified from maritime employment unless
cleared by the Administration or the penalty imposed had been lifted. (Section 7, Rule II, Part VI, Ibid.).

SECTION 8. Preventive Suspension. A seafarer may be preventively suspended when the evidence of guilt is
strong and the charge involves a serious offense. (Section 8, Rule II, Part VI, Ibid.).

RULE III
Disciplinary Action Against Principals/Employers

SECTION 1. Grounds for Disciplinary Action Against Foreign Principals/Employers:cralaw

a. Default on its contractual obligations to the seafarer and/or to its Philippine agent;
b. Gross violation of laws, Rules and Regulations on overseas employment;
c. Grave misconduct;
d. Conviction of an offense involving moral turpitude;
e. Gross negligence leading to serious injury or illness or death of the seafarer;
f. Any other case analogous to the foregoing. (Section 1, Rule III, Part VI, Ibid.).

SECTION 2. Who May File. Any aggrieved person may file a complaint in writing and under oath for disciplinary
action against a principal/employer with the Administration.

The Administration may, on its own initiative, conduct proceedings against principals/employers based on verifiable or
official reports. (Section 2, Rule III, Part VI, Ibid.).

SECTION 3. Contents and Form of Complaint. All complaints shall be under oath and must substantially contain
the following:cralaw

a. Name/s and address/es of the complainants;

b. Name/s and address/es of the respondents;
c. Specific acts or omissions constituting the alleged offense;
d. Place where the offense was committed;
e. Date when the offense was committed;
f. Relief sought.

All supporting documents must be attached to the complaint, whenever possible. (Section 3, Rule III, Part VI, Ibid.).

SECTION 4. Temporary Disqualification. A foreign employer/principal against whom a complaint for

disciplinary action has been filed shall be temporarily disqualified from participating in the maritime employment
program until the respondent submits to the jurisdiction of the Administration. (Section 4, Rule III, Part VI, Ibid.).

SECTION 5. Effect of Filing an Answer. Upon filing of an answer, the respondent employer shall be qualified to
participate in the maritime employment program without prejudice to the outcome of the investigation wherein the
proper penalty may be imposed. (Section 5, Rule III, Part VI, Ibid.).

SECTION 6. Preventive Suspension. A principal/employer may be suspended from participating in the overseas
employment program pending investigation of the disciplinary action case when the evidence of guilt is strong and
there is reasonable ground to believe that the continued deployment to the principal/employer will result to further
violation or exploitation of seafarers.

The OE Adjudicator shall, within sixty (60) calendar days from the filing of the case, submit his findings and
recommendations in the form of a draft order. (Section 6, Rule III, Part VI, Ibid.).

SECTION 7. Disqualification of Foreign Employers/Principals. Foreign employers/principals against whom the

penalty of suspension or disqualification has been imposed through a final order, decision or resolution shall be
disqualified from participating in the maritime employment unless cleared by the Administration or the penalty
imposed is lifted. (Section 7, Rule III, Part VI, Ibid.).

RULE IV
Appeals

SECTION 1. Jurisdiction on Appeal. The Secretary shall have the exclusive jurisdiction to act on appeals of
disciplinary action cases decided by the Administration. (Section 1, Rule IV, Part VI, Ibid.).

SECTION 2. When to File. Appeals shall be filed with Office of the Secretary with proof of service to the
Administration and the adverse party within fifteen (15) calendar days from receipt by the parties of their respective
copies of the Order. (Section 2, Rule IV, Part VI, Ibid.).

RULE V
Common Provisions

SECTION 1. Records of Proceedings. The Overseas Employment Adjudicator shall summarize in writing all the
records of all proceedings before him, including the substance of the evidence presented. The minutes of proceedings
shall be signed by the parties and shall form part of the records. Where any of the parties refuse to sign, the refusal and
reason/s given must be indicated by the Overseas Employment Adjudicator in the minutes, which must be
chronologically arranged and appropriately paged. (Section 1, Rule V, Part VI, Ibid.).

SECTION 2. Appearances. An attorney appearing for a party is presumed to be properly authorized for that
purpose.

Appearances may be made orally or in writing. In both cases, the complete name and office address of both parties
shall be made of record and the adverse party or his counsel/representative properly advised.
Any change in the address of counsel/representative should be filed with the records of the case and furnished the
adverse party or counsel.

Any change or withdrawal of counsel/representative shall be made in accordance with the Rules of Court. (Section 2,
Rule V, Part VI, Ibid.).

SECTION 3. Action on Motions. The OE Adjudicator shall have the authority to rule on motions which may be
done in writing or orally during the proceedings/conferences. (Section 3, Rule V, Part VI, Ibid.).

SECTION 4. Consolidation of Cases. Where there are two (2) or more cases pending before different OE
Adjudicators, involving the same respondent/s and issues, the case which was filed last may be consolidated with the
first to avoid unnecessary cost or delay. Such cases shall be handled by the OE Adjudicator to whom the first case was
assigned. (Section 4, Rule V, Part VI, Ibid.).

SECTION 5. Discovery of Another Offense. When in the course of investigation another offense is uncovered, the
Administration may issue the necessary show cause order or inform the respondent/s of the change/s during the
investigation and enter the same in the minutes. The Administration shall allow the parties the requisite period within
which to file an Answer. (Section 5, Rule V, Part VI, Ibid.).

SECTION 6. Discovery of Another Respondent. When in the course of the investigation, another agency or
person is found to have committed a violation, the OE Adjudicator shall automatically implead said agency or person
in the records of case subject of investigation. For this purpose, a show cause order shall be issued to the agency or
person in accordance with the Rules. (Section 6, Rule V, Part VI, Ibid.).
SECTION 7. Prescription. All recruitment violation cases enumerated in these Rules shall be barred if not
commenced or filed with the Administration within three (3) years after such cause of action accrued.
Likewise, disciplinary action shall be barred if not commenced or filed with the Administration within three (3) years
after such cause of action occurred. (Section 7, Rule V, Part VI, Ibid.).

SECTION 8. Disqualification of Erring Bonding Companies. Bonding companies found not to be complying with
orders issued against the surety bond, shall be recommended to the Licensing and Regulation Office for
disqualification. (Section 8, Rule V, Part VI, Ibid.).

SECTION 9. Applicability of the Rules of Court. The Revised Rules of Court of the Philippines shall, whenever
practicable, supplement these Rules in similar or analogous character in proceedings brought before the
Administration. (Section 9, Rule V, Part VI, Ibid.).

PART VII
Assistance to Seafarers

RULE I
Voluntary Arbitration

SECTION 1. Voluntary arbitration. Unresolved disputes involving seafarers and their employers-principals with
Collective Bargaining Agreements, arising from the interpretation or implementation of the Standard Employment
Contract, the Shipping Article, Collective Bargaining Agreement and the interpretation, enforcement of company
personnel policies at the worksite and other employer-employee relations cases involving Filipino seafarers, on the one
hand, and the employers, principals and contracting partners, on the other hand, including but not limited to
contractual, disciplinary action and other tort cases, shall be submitted to voluntary arbitration for resolution.

Where the parties, although they have no existing collective bargaining agreement, agrees to adopt voluntary
arbitration as an option to settle their conflicts, the POEA shall assist them in submitting their respective cases to
voluntary arbitration. (Section 1, Rule I, Part VII, Ibid.).

SECTION 2. Finality of Settlement/Decision. Any settlement reached by the parties in the course of the
arbitration shall be final and binding upon them. Where such amicable settlement is not agreed upon, the Voluntary
Arbitrator chosen by the parties shall resolve the conflict on the basis of the evidence and issue his decision which shall
likewise be final and binding upon the parties.

SECTION 3. Implementing Guidelines. The Administration shall issue the necessary implementing guidelines to
carry out this provision. (Section 2, Rule I, Part VII, Ibid.).

RULE II
Repatriation of Seafarers

SECTION 1. Repatriation of Seafarers. The repatriation of the seafarer and the transport of his personal
belongings shall be the primary responsibility of the principal and/or agency which recruited or deployed the seafarer
overseas. All costs attendant to the repatriation shall be borne or charged to the principal and/or agency concerned.
Likewise, the repatriation of remains and transport of the personal belongings of the deceased seafarer and all costs
attendant thereto shall be borne by the principal and/or the agency. However, in cases where the termination of the
employment is due solely to the fault of the seafarer, the principal or agency shall not in any manner be responsible for
the repatriation of the former and/or his belongings. (Section 1, Rule II, Part VII, Ibid.).

SECTION 2. Repatriation Costs When Employment is Terminated. The principal or agency shall advance the cost
of plane fare without a prior determination of the cause of the termination of the seafarers' employment. However, the
principal/agency may recover the cost of repatriation from the seafarer upon his return to the Philippines if termination
of employment is due solely to seafarers' fault. (Section 2, Rule II, Part VII, Ibid.).

SECTION 3. Repatriation Procedure. When the need for repatriation arises and the principal fails to provide for
the costs, the Philippine Embassy/Consulate/Overseas Labor Office at worksite shall simultaneously notify the
Administration and OWWA of such need. The Administration shall require the agency to provide the plane ticket or a
pre-paid ticket advice to the Philippine Embassy/Consulate Overseas Labor Office and to report its compliance to the
Administration which shall advise OWWA accordingly. (Section 3, Rule II, Part VII, Ibid.).
SECTION 4. Administrative Sanction for Non-Compliance. If the employment agency fails to provide the ticket
or pre-paid advice within 48 hours from receipt of notice, the Administration shall suspend the documentary processing
of the agency or impose such sanctions, as it deem necessary. The Administration may request OWWA to advance the
costs of repatriation with recourse to the agency and/or employer. The administrative sanction shall be lifted after the
agency or employer shall have reimbursed OWWA of the costs of repatriation. (Section 4, Rule II, Part VII, Ibid.).

RULE III
War Risk Areas and Premium Pay

SECTION 1. Declaration of War Risk Areas. In order to protect seafarers from the hazards of war or war-like
operations, the Administration shall, pursuant to prior declaration by the competent authorities, declare specific areas,
territorial waters or portions of the high seas as war risk. (Section 1, Rule III, Part VII, Ibid.).

SECTION 2. War Risk Premium Pay. Seafarers who sail for work on areas declared by the Administration as war
risk areas shall be entitled to premium pay or its equivalent, the form of which shall be determined by the
Administration. (Section 2, Rule III, Part VII, Ibid.).

RULE IV
Education Program

SECTION 1. Education Program. In accordance with the policy of full disclosure, the Administration shall
provide a comprehensive and integrated education program on seafarers' employment and shall be undertaken in
partnership with other relevant organizations and government entities. Such education program shall cover all stages of
recruitment and employment. (Section 1, Rule IV, Part VII, Ibid.).

SECTION 2. Program Development Administration and Linkages. The Administration shall develop and
administer the program in partnership with concerned government agencies, industry associations, civic-oriented
groups and non-government organizations. (Section 2, Rule IV, Part VII, Ibid.).

SECTION 3. Information Campaign. The Administration shall conduct a nationwide, multi-media and sustainable
grassroots information campaign to create public awareness on the realities of employment involving seafarers.
(Section 3, Rule IV, Part VII, Ibid.).

SECTION 4. Orientation of Licensed Manning Representatives. The Administration shall provide orientation
programs to officers and staff of licensed manning agencies. (Section 4, Rule IV, Part VII, Ibid.).

SECTION 5. Responsibility of Agencies Relative to PDOS. It shall be the responsibility of every licensed
manning agency to provide an appropriate and comprehensive pre-departure orientation seminar to their selected
seafarers before deployment to ensure that their documents are in order, they are well-informed on travel, arrival and
remittance procedures as well as what to do and where to ask for assistance for any post-arrival problem. (Section 5,
Rule IV, Part VII, Ibid.).

RULE V
Manpower Research and Development

SECTION 1. Research Studies. The Administration, in coordination with other entities, shall conduct periodic
researches and studies on labor supply especially as it relates to the monitoring of the supply of seafarers vis--vis the
demand for them in international shipping. (Section 1, Rule V, Part VII, Ibid.).

SECTION 2. Manpower Development Program. The Administration shall extend technical support and establish
linkages with government agencies and other concerned sectors in the development and provision of assistance
programs in the training of seafarers. (Section 2, Rule V, Part VII, Ibid.).

SECTION 3. Training Programs and Standards. The Administration shall coordinate with private entities,
government agencies and employers concerned in the formulation of training programs and standards. (Section 3, Rule
V, Part VII, Ibid.).
 PART VIII
Transitory Provisions

SECTION 1. Transfer of Welfare Services Provisions to OWWA. All provisions pertaining to the welfare of
seafarers shall be transferred to OWWA upon effectivity of these rules. In the meantime, POEA shall continue to
perform welfare services. (Section 1, Part VIII, Ibid.).

PART IX
General and Miscellaneous Provisions

SECTION 1. Authority to Administer Oaths. The Administrator, or any person designated by him to handle cases
or disputes, shall have the authority to administer oaths and require the attendance of witnesses or the production of
any book, paper, correspondence, memoranda and other documents relevant or material to the case or inquiry. (Section
1, Part IX, Ibid.).

SECTION 2. Construction. These Rules shall be liberally construed to carry out the objectives of the Constitution,
the Labor Code of the Philippines and the laws pertaining to overseas employment and to assist the parties in obtaining
just, expeditious and inexpensive settlement of disputes.
All doubts in the implementation or interpretation of these Rules shall be resolved in favor of labor. (Section 2, Part IX, Ibid.).

SECTION 3. Transfer of Cash Bond. Manning agencies shall be allowed to withdraw their existing cash bonds so
that the same may be used to comply with the escrow deposit requirement under Section 4, Rule II, Part II of these
Rules. (Section 3, Part IX, Ibid.).

SECTION 4. Separability Clause. The provisions of these Rules and Regulations are declared to be separable and
if any provision or the application thereof is held invalid or unconstitutional, the validity of the other provisions shall
not be affected. (Section 4, Part IX, Ibid.).

SECTION 5. Repealing Clause. All policies, issuances, rules and regulations inconsistent with these Rules and
hereby repealed or modified accordingly. (Section 5, Part IX, Ibid.).

SECTION 6. Effectivity. These Rules shall take effect fifteen (15) days from publication in a newspaper of
general circulation. (Section 6, Part IX, Ibid.).

Done in the City of Manila, Republic of the Philippines, this 23rd day of May 2003.
 REPUBLIC ACT No. 10022

AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT WORKERS AND
OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED, FURTHER IMPROVING THE STANDARD OF
PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND
OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Paragraphs (a), (e), (g) and (h) of Section 2 of Republic Act. No. 8042, as amended, otherwise known as the
"Migrant Workers and Overseas Filipinos Act of 1995," is hereby amended to read as follows:

"(a) In the pursuit of an independent foreign policy and while considering national sovereignty, territorial integrity,
national interest and the right to self-determination paramount in its relations with other states, the State shall, at all
times, uphold the dignity of its citizens whether in country or overseas, in general, and Filipino migrant workers, in
particular, continuously monitor international conventions, adopt/be signatory to and ratify those that guarantee
protection to our migrant workers, and endeavor to enter into bilateral agreements with countries hosting overseas
Filipino workers."

"(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be denied to any person
by reason of poverty. In this regard, it is imperative that an effective mechanism be instituted to ensure that the rights
and interest of distressed overseas Filipinos, in general, and Filipino migrant workers, in particular, whether
regular/documented or irregular/undocumented, are adequately protected and safeguarded."

"(g) The State recognizes that the most effective tool for empowerment is the possession of skills by migrant workers.
The government shall provide them free and accessible skills development and enhancement programs. Pursuant to this
and as soon as practicable, the government shall deploy and/or allow the deployment only of skilled Filipino workers."

"(h) The State recognizes non-governmental organizations, trade unions, workers associations, stakeholders and their
similar entities duly recognized as legitimate, are partners of the State in the protection of Filipino migrant workers and
in the promotion of their welfare. The State shall cooperate with them in a spirit of trust and mutual respect. The
significant contribution of recruitment and manning agencies shall from part this partnership."

Section 2. Section 3, paragraph (a) of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"(a) "Overseas Filipino worker" refers to a person who is to be engaged, is engaged or has been engaged in a
remunerated activity in a state of which he or she is not a citizen or on board a vessel navigating the foreign seas other
than a government ship used for miliatry or non-commercial purposes or on an installation located offshore or on the
high seas; to be used interchangeably with migrant worker."

Section 3. Section 4 of Republic Act No. 8042, as amended, is hereby amended to rerad as follows:

"SEC. 4. Deployment of Migrant Workers. - The State shall allow the deployment of overseas Filipino workers only in
countries where the rights of Filipino migrant workers are protected. The government recognizes any of the following
as a guarantee on the part of the receiving country for the protection of the rights of overseas Filipino workers:

"(a) It has existing labor and social laws protecting the rights of workers, including migrant workers;

"(b) It is a signatory to and/or a ratifier of multilateral conventions, declarations or resolutions relating to the
protection of workers, including migrant workers; and

"(c) It has concluded a bilateral agreement or arrangement with the government on the protection of the rights of
overseas Filipino Workers:

Provided, That the receiving country is taking positive, concrete measures to protect the rights of migrant workers in
furtherance of any of the guarantees under subparagraphs (a), (b) and (c) hereof.

"In the absence of a clear showing that any of the aforementioned guarantees exists in the country of destination of the
migrant workers, no permit for deployment shall be issued by the Philippine Overseas Employment Administration (POEA).

"The members of the POEA Governing Board who actually voted in favor of an order allowing the deployment of
migrant workers without any of the aforementioned guarantees shall suffer the penalties of removal or dismissal from
service with disqualification to hold any appointive public office for five (5) years, Further, the government official or
employee responsible for the issuance of the permit or for allowing the deployment of migrant workers in violation of
this section and in direct contravention of an order by the POEA Governing Board prohibiting deployment shall be
meted the same penalties in this section.
"For this purpose, the Department of Foreign Affairs, through its foreign posts, shall issue a certification to the POEA,
specifying therein the pertinent provisions of the receiving country's labor/social law, or the
convention/declaration/resolution, or the bilateral agreement/arrangement which protect the rights of migrant workers.

"The State shall also allow the deployment of overseas Filipino workers to vessels navigating the foreign seas or to
installations located offshore or on high seas whose owners/employers are compliant with international laws and
standards that protect the rights of migrant workers.

"The State shall likewise allow the deployment of overseas Filipino workers to companies and contractors with
international operations: Provided, That they are compliant with standards, conditions and requirements, as embodied
in the employment contracts prescribed by the POEA and in accordance with internationally-accepted standards."

Section 4. Section 5 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 5. Termination or Ban on Deployment. - Notwithstanding the provisions of Section 4 hereof, in pursuit of the
national interest or when public welfare so requires, the POEA Governing Board, after consultation with the
Department of Foreign Affairs, may, at any time, terminate or impose a ban on the deployment of migrant workers."

Section 5. Section 6 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 6. Definition. - For purposes of this Act, illegal recruitment shall mean any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring, or procuring workers and includes referring, contract services, promising or
advertising for employment abroad, whether for profit or not, when undertaken by non-licensee or non-holder of
authority contemplated under Article 13(f) of Presidential Decree No. 442, as amended, otherwise known as the Labor
Code of the Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or promises
for a fee employment abroad to two or more persons shall be deemed so engaged. It shall likewise include the
following acts, whether committed by any person, whether a non-licensee, non-holder, 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 and Employment, or to make a worker pay or acknowledge 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 the Labor Code, or for the purpose of documenting hired workers with the POEA,
which include the act of reprocessing workers through a job order that pertains to nonexistent work, work different from
the actual overseas work, or work with a different employer whether registered or not with the POEA;

"(d) To include or attempt to induce a worker already employed to quit his employment in order to offer him
another unless the transfer is designed to liberate a worker from oppressive terms and conditions of employment;

"(e) To influence or attempt to influence any person or entity not to employ any worker who has not applied for
employment through his agency or who has formed, joined or supported, or has contacted or is supported by any
union or workers' organization;

"(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;

"(h) To fail to submit 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 and Employment;

"(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified by the
Department of Labor and Employment from the time of actual signing thereof by the parties up to and including the
period of the expiration of the same without the approval of the Department of Labor and Employment;

"(j) For an officer or agent of a recruitment or placement agency 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 travel agency;

"(k) To withhold or deny travel documents from applicant workers before departure for monetary or financial
considerations, or for any other reasons, other than those authorized under the Labor Code and its implementing
rules and regulations;

"(l) Failure to actually deploy a contracted worker without valid reason as determined by the Department of Labor
and Employment;
 "(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and processing for
purposes of deployment, in cases where the deployment does not actually take place without the worker's fault.
Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense involving
economic sabotage; and

"(n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning agency.

"Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more persons
conspiring or confederating with one another. It is deemed committed in large scale if committed against three (3) or
more persons individually or as a group.

"In addition to the acts enumerated above, it shall also be unlawful for any person or entity to commit the following
prohibited acts:

"(1) Grant a loan to an overseas Filipino worker with interest exceeding eight percent (8%) per annum, which will
be used for payment of legal and allowable placement fees and make the migrant worker issue, either personally or
through a guarantor or accommodation party, postdated checks in relation to the said loan;

"(2) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to avail of a
loan only from specifically designated institutions, entities or persons;

"(3) Refuse to condone or renegotiate a loan incurred by an overseas Filipino worker after the latter's employment
contract has been prematurely terminated through no fault of his or her own;

"(4) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo
health examinations only from specifically designated medical clinics, institutions, entities or persons, except in the
case of a seafarer whose medical examination cost is shouldered by the principal/shipowner;

"(5) Impose a compulsory and exclusive arrangement whereby an overseas Filipino worker is required to undergo
training, seminar, instruction or schooling of any kind only from specifically designated institutions, entities or
persons, except fpr recommendatory trainings mandated by principals/shipowners where the latter shoulder the cost
of such trainings;

"(6) For a suspended recruitment/manning agency to engage in any kind of recruitment activity including the
processing of pending workers' applications; and

"(7) For a recruitment/manning agency or a foreign principal/employer to pass on the overseas Filipino worker or
deduct from his or her salary the payment of the cost of insurance fees, premium or other insurance related charges,
as provided under the compulsory worker's insurance coverage.

"The persons criminally liable for the above offenses are the principals, accomplices and accessories. In case of
juridical persons, the officers having ownership, control, management or direction of their business who are
responsible for the commission of the offense and the responsible employees/agents thereof shall be liable.

"In the filing of cases for illegal recruitment or any of the prohibited acts under this section, the Secretary of Labor and
Employment, the POEA Administrator or their duly authorized representatives, or any aggrieved person may initiate
the corresponding criminal action with the appropriate office. For this purpose, the affidavits and testimonies of
operatives or personnel from the Department of Labor and Employment, POEA and other law enforcement agencies
who witnessed the acts constituting the offense shall be sufficient to prosecute the accused.

"In the prosecution of offenses punishable under this section, the public prosecutors of the Department of Justice shall
collaborate with the anti-illegal recruitment branch of the POEA and, in certain cases, allow the POEA lawyers to take
the lead in the prosecution. The POEA lawyers who act as prosecutors in such cases shall be entitled to receive
additional allowances as may be determined by the POEA Administrator.

"The filing of an offense punishable under this Act shall be without prejudice to the filing of cases punishable under
other existing laws, rules or regulations."1avvphi1

Section 6. Section 7 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 7. Penalties. -

"(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less than twelve
(12) years and one (1) day but not more than twenty (20) years and a fine of not less than One million pesos
(P1,000,000.00) nor more than Two million pesos (P2,000,000.00).
 "(b) The penalty of life imprisonment and a fine of not less than Two million pesos (P2,000,000.00) nor more than
Five million pesos (P5,000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as
defined therein.

"Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is less than
eighteen (18) years of age or committed by a non-licensee or non-holder of authority.

"(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of imprisonment of not less than
six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than Five hundred thousand
pesos (P500,000.00) nor more than One million pesos (P1,000,000.00).

"If the offender is an alien, he or she shall, in addition to the penalties herein prescribed, be deported without further
proceedings.

"In every case, conviction shall cause and carry the automatic revocation of the license or registration of the
recruitment/manning agency, lending institutions, training school or medical clinic."

Section 7. Section 10 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 10. Money Claims. - Notwithstanding any provision of law to the contrary, the Labor Arbiters of the National
Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and decide, within
ninety (90) calendar days after the filing of the complaint, the claims arising out of an employer-employee relationship
or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual,
moral, exemplary and other forms of damage. Consistent with this mandate, the NLRC shall endeavor to update and
keep abreast with the developments in the global services industry.

"The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section
shall be joint and several. This provision shall be incorporated in the contract for overseas employment and shall be a
condition precedent for its approval. The performance bond to de filed by the recruitment/placement agency, as
provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the
recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be,
shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and
damages.

"Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected
by any substitution, amendment or modification made locally or in a foreign country of the said contract.

"Any compromise/amicable settlement or voluntary agreement on money claims inclusive of damages under this
section shall be paid within thirty (30) days from approval of the settlement by the appropriate authority.

"In case of termination of overseas employment without just, valid or authorized cause as defined by law or contract, or
any unauthorized deductions from the migrant worker's salary, the worker shall be entitled to the full reimbursement if
his placement fee and the deductions made with interest at twelve percent (12%) per annum, plus his salaries for the
unexpired portion of his employment contract or for three (3) months for every year of the unexpired term, whichever
is less.

"In case of a final and executory judgement against a foreign employer/principal, it shall be automatically disqualified,
without further proceedings, from participating in the Philippine Overseas Employment Program and from recruiting
and hiring Filipino workers until and unless it fully satisfies the judgement award.

"Noncompliance with the mandatory periods for resolutions of case provided under this section shall subject the
responsible officials to any or all of the following penalties:

"(a) The salary of any such official who fails to render his decision or resolution within the prescribed period shall
be, or caused to be, withheld until the said official complies therewith;

"(b) Suspension for not more than ninety (90) days; or

"(c) Dismissal from the service with disqualification to hold any appointive public office for five (5) years.

"Provided, however, That the penalties herein provided shall be without prejudice to any liability which any such
official may have incured under other existing laws or rules and regulations as a consequence of violating the
provisions of this paragraph."

Section 8. The first paragraph of Section 13 of Republic Act No. 8042, as amended is hereby amended to read as
follows:
"SEC. 13. Free Legal Assistance; Preferential Entitlement Under the Witness Protection Program. - A mechanism for
free legal assistance for victims of illegal recruitment shall be established in the anti-illegal recruitment branch of the
POEA including its regional offices. Such mechanism shall include coordination and cooperation with the Department
of Justice, the Integrated Bar of the Philippines, and other non-governmental organizations and volunteer groups."

Section 9. Section 16 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 16. Mandatory Repatriation of Underage Migrant Workers. - Upon discovery or being informed of the presence
of migrant workers whose ages fall below the minimum age requirement for overseas deployment, the responsible
officers in the foreign service shall without delay repatriate said workers and advise the Department of Foreign Affairs
through the fastest means of communication available of such discovery and other relevant information. The license of
a recruitment/manning agency which recruited or deployed an underage migrant worker shall be automatically revoked
and shall be imposed a fine of not less than Five hundred thousand pesos (Php 500,000.00) but not more than One
million pesos (Php 1,000,000.00). All fees pertinent to the processing of papers or documents in the recruitment or
deployment shall be refunded in full by the responsible recruitment/manning agency, without need of notice, to the
underage migrant worker or to his parents or guardian. The refund shall be independent of and in addition to the
indemnification for the damages sustained by the underage migrant worker. The refund shall be paid within thirty (30)
days from the date of the mandatory repatriation as provided for in this Act."

Section 10. Section 17 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 17. Establishment of National Reintegration Center for Overseas Filipino Workers. -A national reintegration
center for overseas Filipino workers (NRCO) is hereby created in the Department of Labor and Employment for
returning Filipino migrant workers which shall provide a mechanism for their reintegration into the Philippine society,
serve as a promotion house for their local employment, and tap their skills and potentials for national development.

"The Department of Labor and Employment, the Overseas Workers Welfare Administration (OWWA), and the
Philippine Overseas Employment Administration (POEA) shall, within ninety (90) days from the effectivity of this
Act, formulate a program that would motivate migrant workers to plan for productive options such as entry into highly
technical jobs or undertakings, livelihood and entrepreneurial development, better wage employment, and investment
of savings.

"For this purpose, the Technical Education and Skills Development Authority (TESDA), the Technology Livelihood
Resource Center (TLRC), and other government agencies involved in training and livelihood development shall give
priority to returnees who had been employed as domestic helpers and entertainers."

Section 11. Section 18 of Republic Act No. 8042, as amended is hereby amended to read as follows:

"SEC. 18. Functions of the National Reintegration Center for Overseas Filipino Workers. -The Center shall provide
the following services:

"(a) Develop and support programs and projects for livelihood, entrepreneurship, savings, investments and financial
literacy for returning Filipino migrant workers and their families in coordination with relevant stakeholders, service
providers and international organizations;

"(b) Coordinate with appropriate stakeholders, service providers and relevant international organizations for the
promotion, development and the full utilization of overseas Filipino worker returnees and their potentials;

"(c) Institute, in cooperation with other government agencies concerned, a computer-based information system on
returning Filipino migrant workers shall be accessible to all local recruitment agencies and employers, both public
and private;

"(d) Proved a periodic study and assessment of job opportunities for returning Filipino migrant workers;

"(e) Develop and implement other appropriate programs to promote the welfare of returning Filipino migrant workers;

"(f) Maintain an internet-based communication system for on-line registration and interaction with clients, and
maintain and upgrade computer-based service capabilities of the NRCO;

"(g) Develop capacity-building programs for returning overseas Filipino workers and their families, implementers,
service providers, and stakeholders; and

"(h) Conduct research for policy recommendations and program development."

Section 12. The second paragraph of Section 19 of Republic Act No. 8042, as amended, is hereby amended to read as
follows:
"The establishment and operations of the Center shall be a joint undertaking of the various government agencies. The
Center shall be open for twenty-four (24) hours daily including Saturdays, Sundays and holidays, and shall be staffed
by Foreign Service personnel, service attaches or officers who represent other Philippine government agencies abroad
and, if available, individual volunteers and bona fide non-government organizations from the host countries. In
countries categorized as highly problematic by the Department of Foreign Affairs and the Department of Labor and
Employment and where there is a concentration of Filipino migrant workers, the government must provide a Sharia or
human rights lawyer, a psychologist and a social worker for the Center. In addition to these personnel, the government
must also hire within the receiving country, in such number as may be needed by the post, public relation officers or
case officers who are conversant, orally and in writing, with the local language, laws, customs and practices. The Labor
Attache shall coordinate the operation of the Center and shall keep the Chief of Mission informed and updated on all
matters affecting it."

Section 13. Section 20 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 20. Establishment of a Shared Government Information System for Migration. - An interagency committee
composed of the Department of Foreign Affairs and its attached agency, the Commission on Filipinos Overseas, the
Department of Labor and Employment and its attached concerned agencies, the Department of Tourism, the
Department of Justice the Bureau of Immigration, the National Bureau of Investigation, the Department of the Interior
and Local Government, the National Telecommunications Commission, the Commission on Information and
Communications Technology, the National Computer Center, the National Statistical and Coordination Board, the
National Statistics Office and other government agencies concerned with overseas employment shall be established to
implement a shared government information system for migration. The interagency committee shall initially make
available to itself the information contained in existing data bases/files. The second phase shall involve linkaging of
computer facilities on order to allow free-flow data exchanges and sharing among concerned agencies.

"The inter-agency committee shall be co-chaired by the Department of Foreign Affairs and the Department of Labor
and Employment. The National Computer Center shall provide the necessary technical assistance and shall set the
appropriate information and communications technology standards to facilitate the sharing of information among the
member agencies.

"The inter-agency committee shall meet regularly to ensure the immediate and full implementation of this section and
shall explore the possibility setting up a central storage facility for the data on migration. The progress of the
implementation of this section shall be include in the report to Congress of the Department of Foreign Affairs and the
Department of Labor and Employment under Section 33.

"The inter-agency committee shall convene to identify existing data bases which shall be declassified and shared among
member agencies. These shared data bases shall initially include, but not be limited to, the following information:

"(a) Masterlists of Filipino migrant workers/overseas Filipino classified according to occupation/job category, civil
status, by country/state of destination including visa classification;

"(b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino nationals, including
those serving prison terms;

"(c) Masterlists of departing/arriving Filipinos;

"(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;

"(e) Blacklisted foreigners/undesirable aliens;

"(f) Basic data on legal systems, immigration policies, marriage laws and civil and criminal codes in receiving
countries particularly those with large numbers of Filipinos;

"(g) List of Labor and other human rights instruments where receiving countries are signatories;

"(h) A tracking system of past and present gender disaggregated cases involving male and female migrant workers,
including minors; and

"(i) Listing of overseas posts which may render assistance to overseas Filipinos, in general, and migrant workers, in
particular."

Section 14. Subparagraph (b.1) of paragraph (b) of Section 23 of Republic Act No. 8042, as amended, is hereby
amended to read as follows:

"(b.1) Philippine Overseas Employment Administration. - The Administration shall regulate private sector participation
in the recruitment and overseas placement of workers by setting up a licensing and registration system. It shall also
formulate and implement, in coordination with appropriate entities concerned, when necessary, a system for promoting
and monitoring the overseas employment of Filipino workers taking into consideration their welfare and the domestic
manpower requirements. It shall be responsible for the regulation and management of overseas employment from the
pre-employment stage, securing the best possible employment terms and conditions for overseas Filipino workers, and
taking into consideration the needs of vulnerable sectors and the peculiarities of sea-based and land-based workers. In
appropriate cases, the Administration shall allow the lifting of suspension of erring recruitment/manning agencies upon
the payment of fine of Fifty thousand pesos (P50,000.00) for every month of suspension.

"in addition to its powers and functions, the Administration shall inform migrant workers not only of their rights as
workers but also of their rights as human beings, instruct and guide the workers how to assert their rights and provide
the available mechanism to redress violation of their rights. It shall also be responsible for the implementation, in
partnership with other law-enforcement agencies, of an intensified program against illegal recruitment activities. For
this purpose, the POEA shall provide comprehensive Pre-Employment Orientation Seminars (PEOS) that will discuss
topics such as prevention of illegal recruitment and gender-sensitivity.

"The Administration shall not engage in the recruitment and placement of overseas workers except on a government-
to-government arrangement only.

"In the recruitment and placement of workers to service the requirements for trained and competent Filipino workers of
foreign governments and their instrumentalitys, and such other employers as public interests may require, the
Administration shall deploy only to countries where the Philippine has conclude bilateral labor agreements or
arrangements: Provided, That such countries shall guarantee to protect the rights of Filipino migrant workers;
and Provided, further, That such countries shall observe and/or comply with the international laws and standards for
migrant workers."

Section 15. Sub-paragraph (b.2) of Paragraph (b) of Section 23 of Republic Act No. 8042, as amended, is hereby
amended to read as follows:

"(b.2) Overseas Workers Welfare Administration. - The Welfare officer of in his absence, the coordinating officer shall
provide the Filipino migrant worker and his family all the assistance they may need in the enforcement of contractual
obligations by agencies or entities and/or by their principals. In the performance of this function, he shall make
representation and may call on the agencies or entities concerned to conferences or conciliation meetings for the
purpose of settling the compliance or problems brought to his attention. The OWWA shall likewise formulate and
implement welfare programs for overseas Filipino workers and their families while they are abroad and upon their
return. It shall ensure the awareness by the overseas Filipino workers and their families of these programs and other
related governmental programs.

"In the repatriation of workers to be undertaken by OWWA, the latter shall be authorized to pay repatriation-related
expenses, such as fines or penalties, subject to such guidelines as the OWWA Board of Trustees may prescribe."

Section 16. Under Section 23 of Republic Act No. 8042, as amended, add new paragraphs (c) and (d) with their
corresponding subparagraphs to read as follows:

"(c) Department of Health. - The Department of Health (DOH) shall regulate the activities and operations of all clinics
which conduct medical, physical, optical, dental, psychological and other similar examinations, hereinafter referred to
as health examinations, on Filipino migrant workers as requirement for their overseas employment. Pursuant to this, the
DOH shall ensure that:

" (c.1) The fees for the health examinations are regulated, regularly monitored and duly published to ensure that
the said fees are reasonable and not exorbitant;

" (c.2) The Filipino migrant worker shall only be required to undergo health examinations when there is
reasonable certainty that he or she will be hired and deployed to the jobsite and only those health examinations
which are absolutely necessary for the type of job applied for or those specifically required by the foreign
employer shall be conducted;

" (c.3) No group or groups of medical clinics shall have a monopoly of exclusively conducting health
examinations on migrant workers for certain receiving countries;

" (c.4) Every Filipino migrant worker shall have the freedom to choose any of the DOH-accredited or DOH-
operated clinics that will conduct his/her health examinations and that his or her rights as a patient are respected.
The decking practice, which requires an overseas Filipino worker to go first to an office for registration and then
farmed out to a medical clinic located elsewhere, shall not be allowed;

" (c.5) Within a period of three (3) years from the effectivity of this Act, all DOH regional and/or provincial
hospitals shall establish and operate clinics that can be serve the health examination requirements of Filipino
migrant workers to provide them easy access to such clinics all over the country and lessen their transportation
and lodging expenses and

" (c.6) All DOH-accredited medical clinics, including the DOH-operated clinics, conducting health examinations
for Filipino migrant workers shall observe the same standard operating procedures and shall comply with
 internationally-accepted standards in their operations to conform with the requirements of receiving countries or
of foreign employers/principals.

"Any Foreign employer who does not honor the results of valid health examinations conducted by a DOH-accredited or
DOH-operated clinic shall be temporarily disqualified from the participating in the overseas employment program,
pursuant to POEA rules and regulations.

"In case an overseas Filipino worker is found to be not medically fit upon his/her immediate arrival in the country of
destination, the medical clinic that conducted the health examination/s of such overseas Filipino worker shall pay for
his or her repatriation back to the Philippines and the cost of deployment of such worker.

"Any government official or employee who violates any provision of this subsection shall be removed or dismissed
from service with disqualification to hold any appointive public office for five(5) years. Such penalty is without
prejudice to any other liability which he or she may have incurred under existing laws, rules or regulations.

"(d) Local Government Units. - In the fight against illegal recruitment, the local government units (LGUs), in
partnership with the POEA, other concerned government agencies , and non-government organizations advocating the
rights and welfare of overseas Filipino workers, shall take a proactive stance by being primarily responsible for the
dissemination of information to their constituents on all aspects of overseas employment. To carry out this task, the
following shall be undertaken by the LGUs:

"(d.1) Provide a venue for the POEA, other concerned government agencies and non-government organizations to
conduct PEOS to their constituents on a regular basis;

"(d.2) Establish overseas Filipino worker help desk or kiosk in their localities with the objective of providing
current information to their constituents on all the processes aspects of overseas employment. Such desk or kiosk
shall, as be linked to the database of all concerned government agencies, particularly the POEA for its updated lists
of overseas job orders and licensed recruitment agencies in good standing."

Section 17. Subparagraph ( c ) of Section of Republic Act No. 8042, as amended, is hereby amended to read as
follows:

"( c ) To tap the assistance of reputable law firms, the Integrated Bar of the Philippines, other bar associations and other
government legal experts on overseas Filipino worker laws to complement the government's efforts to provide legal
assistance to our migrant workers;"

Section 18. Section 25 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 25. Legal Assistance Fund. - There is herby established a legal assistance fund for migrant workers, hereinafter
referred to as the Legal Assistance Fund, in the amount of one hundred million pesos (P100,000,000.00) to be
constituted from the following sources.

"Fifty million pesos (50,000,000.00) from the Contingency Fund of the President;

"Thirty million pesos (30,000,000.00) from the Contingency Fund of the President Social Fund;

"Twenty million pesos (20,000,000.00) from the Welfare Fund for Overseas Workers established under Letter of
Instructions No. 537 as amended by Presidential Decree Nos. 1694 and 1809; and

"An amount appropriated in the annual General Appropriations Act (GAA) which shall not be less than Thirty million
pesos (30,000,000.00) per year: Provided, that the balance of the Legal Assistance Fund (LAF) including the amount
appropriated for the year shall not be less than One hundred million pesos (P100,000,000.00) : Provided, further, That
the fund shall be treated as a special fund in the National Treasury and its balance, including the amount appropriated
in the GAA, which shall form part of the Fund, shall not revert to the General Fund.

" Any balances of existing funds which have been set aside by the government specifically as legal assistance or
defense fund to help migrant workers shall upon effectivity of this Act, be turned over to, and form part of, the Fund
created under this Act."

Section 19. Section 26 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 26. Uses of the Legal Assistance Fund. - The Legal Assistance Fund created under the preceding section shall be
used exclusively6 to provide legal services to migrant workers and overseas Filipinos in distress in accordance with the
guidelines, criteria and procedures promulgated in accordance with Section 24 ( a ) herof. The expenditures to be
charged against the Fund shall include the fees for the foreign lawyers to be hired by the Legal Assistant for Migrant
Workers Affairs to represent migrant workers facing charges or in filing cases against erring or abusive employers
abroad, bail bonds to secure the temporary releases and other litigation expenses: Provided, That at the end of every
year, the Department of Foreign Affairs shall include in its report to Congress, as provided for under Section 33 of this
Act, the status of the Legal Assistance Fund, including the expenditures from the said fund duly audited by the
Commission on Audit (COA): Provided, further, That the hiring of foreign legal counsels, when circumstances warrant
urgent action, shall be exempt from the coverage of Republic Act No. 9184 or the Government Procurement Act."

Section 20. Section 32 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

"SEC. 32. POEA, OWWA and other Boards; Additional Memberships. - Notwithstanding any provision of law to the
contrary, the respective Boards of the POEA and the OWWA shall, in addition to their present composition, have three
(3) members each who shall come from the women, sea-based and land-based sectors respectively, to be selected and
nominated openly by the general membership of the sector being represented.

" The selection and nomination of the additional members from the women, sea-based and land-based sectors shall be
governed by the following guidelines:

"(a) The POEA and the OWWA shall launch a massive information campaign on the selection of nominees and
provide for a system of consultative sessions for the certified leaders or representatives of the concerned sectors, at
least three (3) times, within ninety (90) days before the boards shall be convened, for purposes of selection. The
process shall be open, democratic and transparent;

"(b) Only non-government organizations that protect and promote the rights and welfare of overseas Filipino
workers, duly registered with the appropriate Philippine government agency and in good standing as such, and in
existence for at least three (3) years prior to the nomination shall be qualified to nominate a representative for each
sector to the Board;

"(c) The nominee must be at least twenty-five (25) years of age, able to read and write, and a migrant worker at
the time of his or her nomination or was a migrant worker with at least three (3) years experience as such; and

"(d) A final list of all the nominees selected by the OWWA/POEA governing boards, which shall consist of
three(3) names for each sector to be represented, shall be submitted to the President and published in a newspaper
of general circulation;

"Within thirty (30) days from the submission of the list, the President shall select and appoint from the list, the
representatives to the POEA/OWWA governing boards.

"The additional members shall have a term of three (3) years and shall be eligible for reappointment for another three
(3) years. In case of vacancy, the President shall in accordance with the provisions of this Act, appoint a replacement
who shall serve the unexpired term of his or her predecessor.

"Any executive issuances or orders issued that contravene the provisions of this section shall have no force and effect.

"All other government agencies and government-owned or controlled corporations which require at least one (1)
representative from the overseas workers sector to their respective boards shall follow all the applicable provisions of
this section."

Section 21. The first and last paragraph of Section 33 of Republic Act No. 8042, as amended, is hereby amended to
read as follows:

"SEC. 33. Report to Congress. - In order to inform the Philippine Congress on the implementation of the policy
enunciated in Section 4 hereof, the Department of Foreign Affairs and the Department of Labor and Employment shall
submit separately to the said body a semi-annual report of Philippine foreign posts located in countries hosting Filipino
migrant workers. The mid-year report covering the period January to June shall be submitted not later than October 31
of the same year while the year-end report covering the period July to December shall be submitted not later than May
31 of the following year. The report shall include, but shall not limited to, the following information:

"xxx

" Any officer of the government who fails to submit the report as stated in this section shall be subject to an
administrative penalty of dismissal from the service with disqualification to hold any appointive public office for five
(5) years."

Section 22. Section 35 of Republic Act No. 8042, as amended, is hereby amended to read as follows:

SEC. 35. Exemption from Travel Tax Documentary Stamp and Airport Fee. - All laws to the contrary notwithstanding,
the migrant workers shall be exempt from the payment of travel tax and airport-fee upon proper showing of proof
entitlement by the POEA.

"The remittances of all overseas Filipino workers, upon showing of the same proof of entitlement by the overseas
Filipino worker's beneficiary or recipient, shall be exempt from the payment of documentary stamp tax.
Section 23. A new Section 37-A. of Replublic Act No. 8042, as amended, is hereby added to read as follows:

"SEC. 37-A. Compulsory Insurance Coverage for Agency-Hired Workers. - In addition to the performance bond to be filed
by the recruitment/manning agency under Section 10, each migrant worker deployed by a recruitment/manning agency shall
be covered by a compulsory insurance policy which shall be secured at no cost to the said worker. Such insurance policy
shall be effective for the duration of the migrant worker's employment and shall cover, at the minimum:

"(a) Accidental death, with at least Fifteen thousand United States dollars (US$10,000.00) survivor's benefit
payable to the migrant worker's beneficiaries;

"(c) Permanent total disablement, with at least Seven thousand five hundred United States dollars (US$7,500.00)
disability benefit payable to the migrant worker. The following disabilities shall be deemed permanent: total,
complete loss of sight of both eyes; loss of two(2) limbs at or above the ankles or wrists; permanent complete
paralysis of two (2) limbs; brain injury resulting to incurable imbecility or insanity;

"(d) Repatriation cost of the worker when his/her employment is terminated without any valid cause, including the
transport of his or her personal belongings. In case of death, the insurance provider shall arrange and pay for the
repatriation or return of the worker's remains. The insurance provider shall also render any assistance necessary in
the transport including, but not limited to, locating a local licensed funeral home, mortuary or direct disposition
facility to prepare the body for transport, completing all documentation, obtaining legal clearances, procuring
consular services, providing necessary casket or air transport container, as well as transporting the remains
including retrieval from site of death and delivery to the receiving funeral home;

"(e) Subsistence allowance benefit, with at least One hundred United States dollars (US$100.00) Per month for a
maximum of six (6) months for a migrant worker who is involved in a case or litigation for the protection of
his/her rights in the receiving country;

"(f) Money claims arising from employer's liability which may be awarded or given to the worker in a judgment or
settlement of his or her case in the NLRC. The insurance coverage for money claims shall be equivalent to at least
three (3) months for every year of the migrant worker's employment contract;

"In addition to the above coverage, the insurance policy shall also include:

"(g) Compassionate visit. When a migrant worker is hospitalized and has been confined for at least seven (7)
consecutive days, he shall be entitled to a compassionate visit by one (1) family member or a requested individual.
The insurance company shall pay for the transportation cost of the family member or requested individual to the
major airport closest to the place of hospitalization of the worker. It is, however, the responsibility of the family
member or requested individual to meet all visa and travel document requirements;

"(h) Medical evacuation. When an adequate medical facility is not available proximate to the migrant worker, as
determined by the insurance company's physician and/or a consulting physician, evacuation under appropriate
medical supervision by the mode of transport necessary shall be undertaken by the insurance provider; and

"(i) Medical repatriation. When medically necessary as determined by the attending physician, repatriation under
medical supervision to the migrant worker's residence shall be undertaken by the insurance provider at such time
that the migrant worker is medically cleared for travel by commercial carrier. If the period to receive medical
clearance to travel exceeds fourteen (14) days from the date of discharge from the hospital, an alternative
appropriate mode of transportation, such as air ambulance, may be arranged. Medical and non-medical escorts
may be provided when necessary.

"Only reputable private insurance companies duly registered with the Insurance Commission (IC) , which are in
existence and operational for at least Five hundred million pesos (P500,000,000.00) to be determined by the IC, and
with a current year certificate of authority shall be qualified to provide for the worker's insurance coverage. Insurance
companies who have directors, partners, officers, employees or agents with relatives, within the fourth civil degree of
consanguinity or affinity, who work or have interest in any of the licensed recruitment/manning agencies or in any of
the government agencies involved in the overseas employment program shall be disqualified from providing this
workers' insurance coverage.

"The recruitment/manning agency shall have the right to choose from any of the qualified insurance providers the
company that will insure the migrant worker it will deploy. After procuring such insurance policy, the
recruitment/manning agency shall provide an authenticated copy thereof to the migrant worker. It shall then submit the
certificate of insurance coverage of the migrant worker to POEA as a requirement for the issuance of an Overseas
Employment Certificate (OEC) to the migrant worker. In the case of seafarers who are insured under policies issued by
foreign insurance companies, the POEA shall accept certificates or other proofs of cover from recruitment/manning
agencies: Provided, That the minimum coverage under sub-paragraphs (a) to (i) are included therein.

"Any person having a claim upon the policy issued pursuant to subparagraphs (a), (b), (c), (d) and (e) of this section
shall present to the insurance company concerned a written notice of claim together with pertinent supporting
documents. The insurance company shall forthwith ascertain the truth and extent of the claim and make payment
within ten (10) days from the filing of the notice of claim.

"Any claim arising from accidental death, natural death or disablement under this section shall be paid by the insurance
company without any contest and without the necessity of providing fault or negligence of any kind on the part of the
insured migrant worker: Provided, That the following documents, duly authenticated by the Philippine foreign posts,
shall be sufficient evidence to substantiate the claim:

"(1) Death Certificate - In case of natural or accidental death;

"(2) Police or Accident Report - In case of accidental death; and

"(3) Medical Certificate - In case of permanent disablement;

"For repatriation under subparagraph (d) hereof, a certification which states the reason/s for the termination of the
migrant worker's employment and the need for his or her repatriation shall be issued by the Philippine foreign post or
the Philippine Overseas Labor Office (POLO) located in the receiving country.

"For subsistence allowance benefit under subparagraph (e), the concerned labor attach or, in his absence, the embassy
or consular official shall issue a certification which states the name of the case, the names of the parties and the nature
of the cause of action of the migrant worker.

"For the payment of money claims under subparagraph (f), the following rules shall govern:
"(1) After a decision has become final and executor or a settlement/compromise agreement has been reached between
the parties at the NLRC, an order shall be released mandating the respondent recruitment/manning agency to pay the
amount adjudged or agreed upon within thirty (30) days;
"(2) The recruitment/manning agency shall then immediately file a notice of claim with its insurance provider for the
amount of liability insured, attaching therewith a copy of the decision or compromise agreement;
"(3) Within ten (10) days from the filing of notice of claim, the insurance company shall make payment to the
recruitment/manning agency the amount adjudged or agreed upon, or the amount of liability insured, whichever is
lower. After receiving the insurance payment, the recruitment/manning agency shall immediately pay the migrant
worker's claim in full, taking into account that in case the amount of insurance coverage is insufficient to satisfy the
amount adjudged or agreed upon, it is liable to pay the balance thereof;
"(4) In case the insurance company fails to make payment within ten (10) days from the filing of the claim, the
recruitment/ manning agency shall pay the amount adjudged or agreed upon within the remaining days of the thirty
(30)-day period, as provided in the first subparagraph hereof;
"(5) If the worker's claim was not settled within the aforesaid thirty (30)-day period, the recruitment/manning agency's
performance bond or escrow deposit shall be forthwith garnished to satisfy the migrant worker's claim;
"(6) The provision of compulsory worker's insurance under this section shall not affect the joint and solidary liability of
the foreign employer and the recruitment/manning agency under Section 10;
"(7) Lawyers for the insurance companies, unless the latter is impleaded, shall be prohibited to appear before the
NLRC in money claims cases under this section.

"Any question or dispute in the enforcement of any insurance policy issued under this section shall be brought before
the IC for mediation or adjudication.

"In case it is shown by substantial evidence before the POEA that the migrant worker who was deployed by a licensed
recruitment/manning agency has paid for the premium or the cost of the insurance coverage or that the said insurance
coverage was used as basis by the recruitment/manning agency to claim any additional fee from the migrant worker,
the said licensed recruitment/manning agency shall lose its license and all its directors, partners, proprietors, officers
and employees shall be perpetually disqualified from engaging in the business of recruitment of overseas workers.
Such penalty is without prejudice to any other liability which such persons may have incurred under existing laws,
rules or regulations.

"For migrant workers recruited by the POEA on a government-to-government arrangement, the POEA shall establish a
foreign employers guarantee fund which shall be answerable to the workers' monetary claims arising from breach of
contractual obligations. For migrant workers classified as rehires, name hires or direct hires, they may opt to be
covered by this insurance coverage by requesting their foreign employers to pay for the cost of the insurance coverage
or they may pay for the premium themselves. To protect the rights of these workers, the POEA shall provide them
adequate legal assistance, including conciliation and mediation services, whether at home or abroad.

"At the end of every year, the Department of Labor and Employment and the IC shall jointly make an assessment of the
performance of all insurance providers, based upon the report of the NLRC and the POEA on their respective
interactions and experiences with the insurance companies, and they shall have the authority to ban or blacklist such
insurance companies which are known to be evasive or not responsive to the legitimate claims of migrant workers. The
Department of Labor and Employment shall include such assessment in its year-end report to Congress.
"For purposes of this section, the Department of Labor and Employment, IC, NLRC and the POEA, in consultation
with the recruitment/manning agencies and legitimate non-government organizations advocating the rights and welfare
of overseas Filipino workers, shall formulate the necessary implementing rules and regulations.

"The foregoing provisions on compulsory insurance coverage shall be subject to automatic review through the
Congressional Oversight Committee immediately after three (3) years from the effectivity of this Act in order to
determine its efficacy in favor of the covered overseas Filipino workers and the compliance by recruitment/manning
agencies and insurance companies, without prejudice to an earlier review if necessary and warranted for the purpose of
modifying, amending and/or repealing these subject provisions.

Section 24. A new Section 37-B of Republic Act No. 8042, as amended, is hereby added to read as follows:

"Sec. 37-B. Congressional Oversight Committee. - There is hereby created a Joint Congressional Oversight Committee
composed of five (5) Senators and five (5) Representatives to be appointed by the Senate President and the Speaker of
the House of Representatives, respectively. The Oversight Committee shall be co-chaired by the chairpersons of the
Senate Committee on Labor and Employment and the House of Representatives Committee on Overseas Workers
Affairs. The Oversight Committee shall have the following duties and functions:
"(a) To set the guidelines and overall framework to monitor and ensure the proper implementation of Republic Act No.
8042, as amended, as well as all programs, projects and activities related to overseas employment;
"(b) To ensure transparency and require the submission of reports from concerned government agencies on the conduct
of programs, projects and policies relating to the implementation of Republic Act No. 8042, as amended;
"(c) To approve the budget for the programs of the Oversight Committee and all disbursements therefrom, including
compensation of all personnel;
"(d) To submit periodic reports to the President of the Philippines and Congress on the implementation of the
provisions of Republic Act No. 8042, as amended;
"(e) To determine weaknesses in the law and recommend the necessary remedial legislation or executive measures; and
"(f) To perform such other duties, functions and responsibilities as may be necessary to attain its objectives.

"The Oversight Committee shall adopt its internal rules of procedure, conduct hearings and receive testimonies,
reports, and technical advice, invite or summon by subpoena ad testificandum any public official or private citizen to
testify before it, or require any person by subpoena duces tecum documents or other materials as it may require
consistent with the provisions of Republic Act No. 8042, as amended.

"The Oversight Committee shall organize its staff and technical panel, and appoint such personnel, whether on
secondment from the Senate and the House of Representatives or on temporary, contractual, or on consultancy, and
determine their compensation subject to applicable civil service laws, rules and regulations with a view to ensuring a
competent and efficient secretariat.

"The members of the Oversight Committee shall not receive additional compensation, allowances or emoluments for
services rendered thereto except traveling, extraordinary and other necessary expenses to attain its goals and objectives.

"The Oversight Committee shall exist for a period of ten (10) years from the effectivity of this Act and may be
extended by a joint concurrent resolution."

Section 25. Implementing Rules and Regulations. - The departments and agencies charged with carrying out the
provisions of this Act, except as otherwise provided herein, in consultation with the Senate Committee on Labor and
Employment and the House of Representatives Committee on Overseas Workers Affairs, shall, within sixty (60) days
after the effectivity of this Act, formulate the necessary rules and regulations for its effective implementation.

Section 26. Funding. - The departments, agencies, instrumentalities, bureaus, offices and government-owned and
controlled corporations charged with carrying out the provisions of this Act shall include in their respective programs
the implementation of this Act, the funding of which shall be included in the General Appropriations Act. The
Congressional Oversight Committee on Overseas Workers Affairs shall have the sum of Twenty-five million pesos
(P25,000,000.00), half of which shall be charged against the current appropriations of the Senate while the other half
shall be charged against the current appropriations of the House of Representatives, to carry out its powers and
functions for its initial operations and for fiscal years wherein the General Appropriations Act is reenacted and no
provision for its continued operation is included in such Act. Thereafter, such amount necessary for its continued
operations shall be included in the annual General Appropriations Act.

Section 27. Separability Clause. - If, for any reason, may portion of this Act is declared unconstitutional or invalid, the
same shall not affect the validity of the other provisions not affected thereby.

Section 28. Repealing Clause. - All laws, decrees, executive orders, issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

Section 29. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least two (2) newspapers
of general circulation.