I.

Basic Principles and Concepts such contracts are subject to the special laws on labor unions, collective bargaining, strikes and
A. Constitutional Provisions/Basic lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.
i. Art II Sec 10 (Social Justice)
ii. Art II Sec 18 (Protection to Labor) Article 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in
iii. Art III Sec 8 (Right to organize unions) favor of the safety and decent living for the laborer.
iv. Art XIII Sec 3 (Protection to Labor clause)
v. Art XIII Sec 14 (Protection to Women) C. Definitions
B. Civil Code Labor Law
i. Article 19 Labor legislation – statues, regulations & jurisprudence governing relations bet capital & labor,
ii. Article 1700 by providing for certain standards of terms & conditions of EENT or providing a legal framework
iii. Article 1702 w/in w/c these terms & conditions & the EENT relationship may be negotiated, adjusted &
C. Definitions administered.
i. Labor Law
ii. Labor Standards Labor Standards – sets out the minimum terms, conditions & benefits of EENT that EERS must
iii. Social Legislation / Welfare Laws provide or comply w/ & to w/c EES are entitled as a matter of legal right.
- minimum requirements prescribed by existing laws, rules & regulations relating to wages, hrs of
A. Constitutional Provisions/Basic work, cost-of-living allowance and other monetary & welfare benefits, including occupational
safety & health standards.
Art II Sec 10 (Social Justice)
Section 10. The State shall promote social justice in all phases of national development. Social Legislation / Welfare Laws
Social legislation – includes laws that provide particular kinds of protection/benefits to society in
Art II Sec 18 (Protection to Labor) furtherance of social justice.
Section 18. The State affirms labor as a primary social economic force. It shall protect the rights
of workers and promote their welfare. ------------------

Art III Sec 8 (Right to organize unions) PRELIMINARY TITLE

Section 8. The right of the people, including those employed in the public and private sectors, to
form unions, associations, or societies for purposes not contrary to law shall not be abridged.
Art XIII Sec 3 (Protection to Labor clause)
Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making processes affecting their rights and benefits
as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and
the preferential use of voluntary modes in settling disputes, including conciliation, and shall
enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable returns
to investments, and to expansion and growth.
Art XIII Sec 14 (Protection to Women)
Section 14. The State shall protect working women by providing safe and healthful working
conditions, taking into account their maternal functions, and such facilities and opportunities that
will enhance their welfare and enable them to realize their full potential in the service of the nation.
B. Civil Code
Article 19. Every person must, in the exercise of his rights and in the performance of his duties,
act with justice, give everyone his due, and observe honesty and good faith.
Article 1700. The relations between capital and labor are not merely contractual. They are so
impressed with public interest that labor contracts must yield to the common good. Therefore,
I. General Provisions (Chapter 1 Articles 1-6 LC)
A. Declaration on Basic Policy (Art 3)
i. Rights of Employees/workers (Art XIII, Sec 3 consti and Art 3 LC)
ii. Management Rights
B. Construction in favor of Labor (Art 4)
C. Rules and Regulations (Art 5 LC): Rule Making Authority / Rule Making Power to
Promulgate Implementing Rules and Regulations
D. Applicability and Non-applicability of Labor Code (Art 6 LC)
i. Applicable
a. All workers – agricultural and non-agricultural
b. GOCC – organized under general laws in corporation –
Corporation Code
ii. Not Applicable
a. Government employees – what is applicable? Civil Service
Rules and EO 180 (Guidelines for the exercise of the
Right to organize of government employees
b. GOCC with original charter – Art IX-B, Sec 2(1) Consti
c. International Agencies and specialized agencies or UN – treaty
or international organization
A. Declaration on Basic Policy (Art 3)
i. Rights of Employees/workers (Art XIII, Sec 3 consti and Art 3 LC)
PH Consti Section 3. The State shall afford full protection to labor, local and overseas, organized
and unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making processes affecting their rights and benefits
as may be provided by law.
 c. International Agencies and specialized agencies or UN – treaty or international
The State shall promote the principle of shared responsibility between workers and employers and organization
the preferential use of voluntary modes in settling disputes, including conciliation, and shall
enforce their mutual compliance therewith to foster industrial peace. ------------------

The State shall regulate the relations between workers and employers, recognizing the right of BOOK ONE / PRE-EMPLOYMENT
labor to its just share in the fruits of production and the right of enterprises to reasonable returns
to investments, and to expansion and growth. I. Recruitment and placement of Workers (Art 13-37 LC; RA 8042 Migrant Workers and Overseas
Filipinos act of 1995 as amended by RA 10022)
LC ART. 3. Declaration of basic policy. - The State shall afford protection to labor, promote full A. Definition
employment, ensure equal work opportunities regardless of sex, race or creed and regulate the a. Recruitment and Placement (Art 13 (b) LC)
relations between workers and employers. The State shall assure the rights of workers to self- b. Private fee-charging employment agency (Art 13 (c) LC)
organization, collective bargaining, security of tenure, and just and humane conditions of work. c. Private Recruitment Entity (Art 13 (e) LC
d. License (Art 13 (d) LC)
ii. Management Rights e. Authority (Art 13 (f) LC)
-entitled to respect & enforcement in the interest of simple fair play. B. Procedure
1. Right to return of investment i. Recruitment and placement for Local Employment
2. R to manage, control, and use his property & conduct business in a manner satisfactory ii. Recruitment and placement for Overseas Employment
to himself (just discrimination in the rate of wages paid to the skillful & to the unskillful, C. Licensing
to the efficient & inefficient.) D. Ban on Direct Hiring (Art 18 LC)
3. R to prescribe rules (they become part of the contract of EENT) i. Direct Hiring v. name Hiring
4. R to select EES & to decide when to engage them, except as restricted by statute or E. Mandatory Remittance of foreign exchange earnings (Art 22 LC)
valid contract, at a wage & under conditions agreeable to them. F. Who may engage in recruitment and placement of workers?
5. R to transfer & discharge EES in order to minimize expenses & to insure stability of the i. Public employment offices
business & even to close the business, provided it is done in good faith & due to causes ii. POEA – Philippines Overseas Employment Administration
beyond control. iii. Private recruitment entities
iv. Private employment agencies
B. Construction in favor of Labor (Art 4) v. Shipping or manning agents or representatives
ART. 4. Construction in favor of labor. - All doubts in the implementation and interpretation of the vi. Such other persons or entities as may be authorized by the Sec of DOLE
provisions of this Code, including its implementing rules and regulations, shall be resolved in favor vii. Construction contractors
of labor. G. Travel agencies prohibited to recruit (Art 26 LC)
H. Non-transferability of license authority (Art 29 LC)
C. Rules and Regulations (Art 5 LC): Rule Making Authority / Rule Making Power to I. Prohibited practices (Art 34 LC)
Promulgate Implementing Rules and Regulations J. Regulation and Employment
ART. 5. Rules and regulations. - The Department of Labor and other government agencies i. Suspension and/or cancellation of license or Authority (Art 35 LC)
charged with the administration and enforcement of this Code or any of its parts shall promulgate K. Regulatory and Visitorial Power of DOLE Sec (Art 36-37 LC)
the necessary implementing rules and regulations. Such rules and regulations shall become
effective fifteen (15) days after announcement of their adoption in newspapers of general II. ILLEGAL RECRUITMENT (Art 38-39 LC; RA 8042 Migrant Workers and Overseas Filipinos act
circulation. of 1995 as amended by RA 10022)
A. Definition: Illegal Recruitment (Art 38 LC; Sec 6, RA 8042; Sec 5, RA 10022)
D. Applicability and Non-applicability of Labor Code (Art 6 LC) B. Simple Illegal Recruitment
ART. 6. Applicability. - All rights and benefits granted to workers under this Code shall, except as i. Elements of simple illegal recruitment
may otherwise be provided herein, apply alike to all workers, whether agricultural or non- ii. Illegal recruitment committed by a non-licensee
agricultural. (As amended by Presidential Decree No. 570-A, November 1, 1974). iii. Illegal recruitment v. Estafa
C. Illegal Recruitment considered a crime involving Economic Sabotage (Art 38 LC)
i. Applicable i. Syndicated
a. All workers – agricultural and non-agricultural ii. in Large Scale or Qualified
b. GOCC – organized under general laws in corporation – Corporation Code D. Penalties (Sec 7, RA 8042 as amended by Sec 6, RA 10022)
ii. Not Applicable E. Prescriptive period for illegal recruitment (Sec12, RA 8042)
a. Government employees – what is applicable? Civil Service Rules and EO 180 F. Liabilities
(Guidelines for the exercise of the Right to organize of government i. Liabilities of local employment agency and the employer (joint and several
employees liability)
b. GOCC with original charter – Art IX-B, Sec 2(1) Consti ii. Theory of imputed knowledge
iii. Pre-termination of Contract of migrant Workers and Money Claims (Sec
Art IX-B, Sec 2(1) 10, RA 8042 as amended by Sec 7, RA 10022)
1. The civil service embraces all branches, subdivisions, instrumentalities, and agencies of the
Government, including government-owned or controlled corporations with original charters. III. Employment of Non-resident Aliens (Art 40-42 LC)
A. Resident v. Non-resident Alien
 B. When may be employed
C. Employment permit (Art 40 LC)
D. Prohibition against transfer of employment (Art 41 LC)
I. Recruitment and Placement of Workers (Art 13-37 LC; RA 8042 Migrant Workers and
Overseas Filipinos act of 1995 as amended by RA 10022)
A. Definition
Recruitment and Placement (Art 13 (b) LC)
"Recruitment and placement" refers to any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or not: Provided, That any person
or entity which, in any manner, offers or promises for a fee, employment to two or more persons
shall be deemed engaged in recruitment and placement.
Private fee-charging employment agency (Art 13 (c) LC)
"Private fee-charging employment agency" means any person or entity engaged in recruitment
and placement of workers for a fee which is charged, directly or indirectly, from the workers or
employers or both.
Private Recruitment Entity (Art 13 (e) LC
"Private recruitment entity" means any person or association engaged in the recruitment and
placement of workers, locally or overseas, without charging, directly or indirectly, any fee from the
workers or employers.
License (Art 13 (d) LC)
"License" means a document issued by the Department of Labor authorizing a person or entity to
operate a private employment agency.
Authority (Art 13 (f) LC)
"Authority" means a document issued by the Department of Labor authorizing a person or
association to engage in recruitment and placement activities as a private recruitment entity.
B. Procedure
Recruitment and placement for Local Employment
Recruitment and placement for Overseas Employment
D. Ban on Direct Hiring (Art 18 LC)
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for overseas employment
except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international organizations and such other employers as may
be allowed by the Secretary of Labor is exempted from this provision.
E. Mandatory Remittance of foreign exchange earnings (Art 22 LC)
ART. 22. Mandatory remittance of foreign exchange earnings. - It shall be mandatory for all Filipino
workers abroad to remit a portion of their foreign exchange earnings to their families, dependents,
and/or beneficiaries in the country in accordance with rules and regulations prescribed by the
Secretary of Labor.
G. Travel agencies prohibited to recruit (Art 26 LC)
ART. 26. Travel agencies prohibited to recruit. - Travel agencies and sales agencies of airline
companies are prohibited from engaging in the business of recruitment and placement of workers
for overseas employment whether for profit or not.
H. Non-transferability of license authority (Art 29 LC)
ART. 29. Non-transferability of license or authority. - No license or authority shall be used directly
or indirectly by any person other than the one in whose favor it was issued or at any place other
than that stated in the license or authority be transferred, conveyed or assigned to any other
person or entity. Any transfer of business address, appointment or designation of any agent or
representative including the establishment of additional offices anywhere shall be subject to the
prior approval of the Department of Labor.
I. Prohibited practices (Art 34 LC)
ART. 34. Prohibited practices. - It shall be unlawful for any individual, entity, licensee, or holder of
authority:
(a) To charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
(d) To induce or attempt to induce a worker already employed to quit his employment in order to
offer him to another unless the transfer is designed to liberate the worker from oppressive terms
and conditions of employment;
(e) To influence or to attempt to influence any person or entity not to employ any worker who has
not applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality
or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;
(h) To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as
may be required by the Secretary of Labor.
(i) To substitute or alter employment contracts approved and verified by the Department of Labor
from the time of actual signing thereof by the parties up to and including the periods of expiration
of the same without the approval of the Secretary of Labor;
(j) To become an officer or member of the Board of any corporation engaged in travel agency or
to be engaged directly or indirectly in the management of a travel agency; and
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules
and regulations.
J. Regulation and Employment
Suspension and/or cancellation of license or Authority (Art 35 LC)
ART. 35. Suspension and/or cancellation of license or authority. - The Minister of Labor shall have
the power to suspend or cancel any license or authority to recruit employees for overseas
employment for violation of rules and regulations issued by the Ministry of Labor, the Overseas
Employment Development Board, or for violation of the provisions of this and other applicable
laws, General Orders and Letters of Instructions.
K. Regulatory and Visitorial Power of DOLE Sec (Art 36-37 LC)
ART. 36. Regulatory power. - The Secretary of Labor shall have the power to restrict and regulate
the recruitment and placement activities of all agencies within the coverage of this Title and is
hereby authorized to issue orders and promulgate rules and regulations to carry out the objectives
and implement the provisions of this Title.
ART. 37. Visitorial Power. - The Secretary of Labor or his duly authorized representatives may, at
any time, inspect the premises, books of accounts and records of any person or entity covered by
this Title, require it to submit reports regularly on prescribed forms, and act on violation of any
provisions of this Title.
II. ILLEGAL RECRUITMENT (Art 38-39 LC; RA 8042 Migrant Workers and Overseas Filipinos
act of 1995 as amended by RA 10022)
A. Definition: Illegal Recruitment (Art 38 LC; Sec 6, RA 8042; Sec 5, RA 10022)
ART. 38. Illegal recruitment. - (a) Any recruitment activities, including the prohibited practices
enumerated under Article 34 of this Code, to be undertaken by non-licensees or non-holders of
authority, shall be deemed illuiegal and punishable under Article 39 of this Code. The Department
of Labor and Employment or any law enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered an
offense involving economic sabotage and shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or
more persons conspiring and/or confederating with one another in carrying out any unlawful or
illegal transaction, enterprise or scheme defined under the first paragraph hereof. Illegal
recruitment is deemed committed in large scale if committed against three (3) or more persons
individually or as a group.
(c) The Secretary of Labor and Employment or his duly authorized representatives shall have the
power to cause the arrest and detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger to national security and public
order or will lead to further exploitation of job-seekers. The Secretary shall order the search of the
office or premises and seizure of documents, paraphernalia, properties and other implements
used in illegal recruitment activities and the closure of companies, establishments and entities
found to be engaged in the recruitment of workers for overseas employment, without having been
licensed or authorized to do so.
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."
B. Simple Illegal Recruitment
i. Elements of simple illegal recruitment
Simple Illegal Recruitment – Where a person:
1. undertakes any recruitment activity defined under Art 13(b) or any prohibited practice
enumerated under Arts 34 & 38 of the LC; and
2. does not have a license or authority to lawfully engage in the recruitment & placement
of any workers.
ii. Illegal recruitment committed by a non-licensee
iii. Illegal recruitment v. Estafa
1. Illegal recruitment is malum prohibitum,
2. whereas estafa is malum in se (criminal intent necessary for conviction)
3. a person may be charged & convicted for both
C. Illegal Recruitment considered a crime involving Economic Sabotage (Art 38 LC)
1. When illegal recruitment is committed by a syndicate (when 3/more persons conspire or
confederate w/ one another in carrying out an unlawful or illegal transaction, enterprise or
scheme);
2. When illegal recruitment is committed in a large scale (if committed against 3/more persons
individually or as a group
D. Penalties (Sec 7, RA 8042 as amended by Sec 6, RA 10022)
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."
E. Prescriptive period for illegal recruitment (Sec12, RA 8042)
SEC. 12. PRESCRIPTIVE PERIODS. - Illegal recruitment cases under this Act shall prescribe in
five (5) years: Provided, however, That illegal recruitment cases involving economic sabotage as
defined herein shall prescribe in twenty (20) years.
F. Liabilities
Liabilities of local employment agency and the employer (joint and several liability)
Liability of Local EEnt agency – solidarily liable w/ the foreign principal for unpaid salaries of a
worker recruited. Before recruiting, the agency is required to submit a doc containing its power to
sue and be sued jointly and solidarily w/ the principal or foreign-based EER for any of the violations
of the recruitment agreement and the contracts of EEnt
Liability of Company Engaged in Illegal Recruitment – may be held as principal, together his
EER, if it is shown that he actively & consciously participated in illegal recruitment
ii. Theory of imputed knowledge
iii. Pre-termination of Contract of migrant Workers and Money Claims (Sec 10, RA 8042 as
amended by Sec 7, RA 10022)
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 incurred under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph."
III. Employment of Non-resident Aliens (Art 40-42 LC)
ART. 42. Submission of list. - Any employer employing non-resident foreign nationals on the
effective date of this Code shall submit a list of such nationals to the Secretary of Labor within
thirty (30) days after such date indicating their names, citizenship, foreign and local addresses,
nature of employment and status of stay in the country. The Secretary of Labor shall then
determine if they are entitled to an employment permit.
A. Resident v. Non-resident Alien
B. When may be employed
Alien Employment Permit (AEP) – required for entry into the country for employment purposes
and is issued after determination of the non-availability of a person in the pH who is competent,
able and willing at the time of application to perform the services for w/c the alien is desired
All foreign nationals who intend to engage in gainful EENT in the PH shall apply for AEP
Employment Permit Required
1. all foreign nationals seeking admission to the PH for the purpose of EENT;
2. all non-resident foreign nationals already working in the PH;
3. non-resident foreign nationals admitted to the PH on non-working visas and who wish to seek
EENT; and
4. missionaries or religious workers who intend to engage in gainful EENT.
Note: AEP should be secured regardless of the source of compensation and duration of the EENT,
whether the EENT is part-time or temp
An AEP is issued based on the ff:
1. Compliance by the applicant EER or the foreign national w/ the substantive & documentary
requirements;
2. Determination of DOLE Sec that there is no available Filipino national who is competent, able
and willing to do the job for the EER; and
3. Assessment of the DOLE Sec that the EENT of the foreign national will redound to national
benefit
Note: Understudy Training Program is no longer a requirement in the issuance of AEP and the
EEr has now the option to implement transfer of technology
Requisite for EENT of Resident Aliens:
Immigrants & resident aliens are not required to secure a working permit. They are required to
secure their Alien Employment Registration Cert (AERC)
Exemption from Permit
1. All members of the Diplomatic service and foreign govt officials accredited by and w/ reciprocity
arrangement w/ the Ph govt;
2. Officers and staff of international orgs of w/c the PH is a member, and their legitimate spouses
desiring to work in the PH;
3. Foreign nationals elected as members of Governing Board who do not occupy any other
position, but have only voting rights in the corp;
4. All foreign nationals granted exemption by law;
5. Owners & representatives of foreign nationals whose companies are accredited by the POEA
who come to the PH for a limited period and solely for the purpose of interviewing Filipino
applicants for EENT abroad;
6. Foreign nationals who come to the PH to teach, present and/or conduct research studies in
univs and colleges as visiting, exchange or adjunct professors under formal agreements bet the
univs or colleges in the PH an foreign univs or colleges; or bet the Ph govt and foreign govt;
provided that the exemption is on a reciprocal basis; and
7. Resident foreign nationals.
Grounds for denial of Application of AEP
1. Misrepresentation of facts in the application;
2. Submission of falsified docs;
3. The foreign national has a derogatory record; or
4. Availability of a Fil who is competent, able and willing to the job intended for the alien.
Grounds for suspension of AEP
1. The continued stay of the foreign national my result in damage to the interest of the industry of
the country; and
2. the EENT of the alien is suspended by the EER or by the order of the court

Grounds for revocation of AEP

1. Non-compliance w/ any of the requirement/conditions for w/c the AEP was issued;
2. Misrepresentation of facts in the application;
3. Submission of falsified docs;
4. Meritorious objection or information against the EENT of foreign national as determined by the
Regional Dir;
5. Foreign national has a derogatory record; and
6. EER has terminated the EENT of the foreign national.

Validity of EENT Permit

1 yr, unless the EENT contract, consultancy services or other modes of engagement provides
otherwise, w/c shall in no case exceed 5yrs
fine for working w/o or with an expired AEP P10K for every year or a fraction thereof.

C. Employment permit (Art 40 LC)

ART. 40. Employment permit of non-resident aliens. - Any alien seeking admission to the
Philippines for employment purposes and any domestic or foreign employer who desires to
engage an alien for employment in the Philippines shall obtain an employment permit from the
Department of Labor.

The employment permit may be issued to a non-resident alien or to the applicant employer after
a determination of the non-availability of a person in the Philippines who is competent, able and
willing at the time of application to perform the services for which the alien is desired.

For an enterprise registered in preferred areas of investments, said employment permit may be
issued upon recommendation of the government agency charged with the supervision of said
registered enterprise.

D. Prohibition against transfer of employment (Art 41 LC)

ART. 41. Prohibition against transfer of employment. - (a) After the issuance of an employment
permit, the alien shall not transfer to another job or change his employer without prior approval of
the Secretary of Labor.

(b) Any non-resident alien who shall take up employment in violation of the provision of this Title
and its implementing rules and regulations shall be punished in accordance with the provisions of
Articles 289 and 290 of the Labor Code.

In addition, the alien worker shall be subject to deportation after service of his sentence.