Labor Standards Law (Part I)

LABOR STANDARDS LAW
1. Employment Policies, Recruitment and Placement of Workers, and Agencies

a. Employment Policies
LC, Art. 3. Declaration of basic policy. The State shall afford
protection to labor, promote full employment, ensure equal work
opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. The State shall assure the
rights of workers to self-organization, collective bargaining, security of
tenure, and just and humane conditions of work.
LC, Art. 12. Statement of objectives. It is the policy of the State:
a) To promote and maintain a state of full employment through
improved manpower training, allocation and utilization;
xxxx
f) To strengthen the network of public employment offices and
rationalize the participation of the private sector in the recruitment
and placement of workers, locally and overseas, to serve national
development objectives;
1987 Constitution, SECTION 3 (1). 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.
RA 8042, as amended by RA 10022, Sec. 2. Declaration of Policy
(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. (amended)
(b) 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. Towards this end, the
State shall provide adequate and timely social, economic and legal
services to Filipino migrant workers.
(c) While recognizing the significant contribution of Filipino migrant
workers to the national economy through their foreign exchange
remittances, the State does not promote overseas employment as a
means to sustain economic growth and achieve national
development. The existence of the overseas employment program

rests solely on the assurance that the dignity and fundamental
human rights and freedoms of the Filipino citizens shall not, at any
time, be compromised or violated. The State, therefore, shall
continuously create local employment opportunities and promote
the equitable distribution of wealth and the benefits of
development.
(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. (amended)
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 countrys 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.
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.
b. Employment Agencies
i. Private Sector Agencies and Entities
1. Parties
a. Worker
LC, Art. 13. Definitions.
(a) "Worker" means any member of the labor
force, whether employed or unemployed.
RA 8042, as amended. Sec. 3. Definitions For
purposes of this act:
(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 military or noncommercial purposes or on an installation
located offshore or on the high seas; to be used
interchangeably with migrant worker.
b. Private employment agency
LC, Art. 13(c). "Private fee-charging employment
agency" means any person or entity engaged in
recruitment and placement of workers for a fee
which is charged, directly or indirectly, from the

workers or employers or both.
LC, Art. 13(d). ""License" means a document
issued by the Department of Labor authorizing a
person or entity to operate a private employment
agency.
LC, Art. 12. Statement of objectives. It is the
policy of the State:
f)
To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
recruitment and placement of workers, locally and
overseas, to serve national development
objectives;
LC, Art. 14. Employment promotion. The
Secretary of Labor shall have the power and
authority:
(a) To organize and establish new employment
offices in addition to the existing employment
offices under the Department of Labor as the
need arises;
c. Private recruitment entity
LC, Art. 13(e). ""Private recruitment entity"
means any person or association engaged in the
recruitment and placement of workers, locally or
overseas, without charging, directly or indirectly,
any fee from the workers or employers.
LC, Art. 13(f). ""Authority" means a document
issued by the Department of Labor authorizing a
person or association to engage in recruitment and
placement activities as a private recruitment entity.
LC, Art. 12. Statement of objectives. It is the
policy of the State:
f)
To strengthen the network of public
employment offices and rationalize the
participation of the private sector in the
overseas, to serve national development
objectives;
LC, Art. 14. Employment promotion. The

Secretary of Labor shall have the power and
authority:
(a) To organize and establish new employment
offices in addition to the existing employment
offices under the Department of Labor as the
need arises;
2. Recruitment
a. Local employment
LC, Art. 13. Definitions
(b) Recruitment and placement" refers to any act
of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes
referrals, contract services, promising or
advertising for employment, locally or abroad,
whether for profit or not: Provided, That any person
or entity which, in any manner, offers or promises
for a fee, employment to two or more persons shall
be deemed engaged in recruitment and placement.
b. Overseas Employment
RA 8042, as amended, 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 workers 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 latters employment contract has been
(4)
(5)
(6)
(7)
prematurely terminated through no fault of his

or her own;
Impose a compulsory and exclusive
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;
Impose a compulsory and exclusive
worker is required to undergo training, seminar,
instruction or schooling of any kind only from
persons, except fpr recommendatory trainings
mandated by principals/shipowners where the
latter shoulder the cost of such trainings;
For a suspended recruitment/manning agency
to engage in any kind of recruitment activity
including the processing of pending workers
applications; and
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 workers
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.
(a) Policy of deregulation
RA 8042, SEC. 29. COMPREHENSIVE
DEREGULATION PLAN ON RECRUITMENT
ACTIVITIES. - Pursuant to a progressive
policy of deregulation whereby the
migration of workers becomes strictly a
matter between the worker and his foreign
employer, the DOLE within one (1) year
from the effectivity of this Act, is hereby
mandated to formulate a five-year
comprehensive deregulation plan on
recruitment activities taking into account
labor market trends, economic conditions
of the country and emergency
circumstances which may affect the welfare
of migrant workers.
RA 8042, SEC. 30. GRADUAL PHASE-OUT
OF REGULATORY FUNCTIONS. - Within a
period of five (5) years from the effectivity
of this Act, the DOLE shall phase out the
regulatory functions of the POEA pursuant
to the objectives of deregulation.
(b) Policy of close governmental regulation
RA 9422, AN ACT TO STRENGTHEN THE
REGULATORY FUNCTIONS OF THE
PHILIPPINE OVERSEAS EMPLOYMENT
ADMINISTRATION (POEA), AMENDING FOR
THIS PURPOSE REPUBLIC ACT NO. 8042,

OTHERWISE KNOWN AS THE "MIGRANT
WORKERS AND OVERSEAS FILIFINOS ACT
OF 1995"
-expressly repealed Sec. 29 and Sec.30
3. Allowed and Protected Entities
a. Allowed Private Agencies and Entities
LC, Art. 16. Private recruitment. Except as
provided in Chapter II of this Title, no person or
entity other than the public employment offices,
shall engage in the recruitment and placement of
workers.
Art. 18. Ban on direct-hiring. No employer may
hire a Filipino worker for overseas employment
except through the Boards and entities authorized
by the Secretary of Labor. Direct-hiring by members
of the diplomatic corps, international organizations
and such other employers as may be allowed by
the Secretary of Labor is exempted from this
provision.
Art. 25. Private sector participation in the
recruitment and placement of
workers. Pursuant to national development
objectives and in order to harness and maximize
the use of private sector resources and initiative in
the development and implementation of a
comprehensive employment program, the private
employment sector shall participate in the
overseas, under such guidelines, rules and
regulations as may be issued by the Secretary of
Labor.
Art. 12(f). supra
b. Prohibited Business Agencies and Entities
Art. 16. Supra
Art. 18. Supra
Art. 25. supra
Art. 12(f). supra

(a) Travel Agencies
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.
POEA Rules, Book II, Rule 1, Section 2.
Disqualifications. - The following are not
qualified to participate in the recruitment
and placement of Filipino workers overseas:
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 of 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 overcharging of
placement or documentation fees, false
documentation, illegal recruitment and
swindling or estafa, or those convicted of
crimes involving moral turpitude;
e. Persons employed in the Department or
in other government offices directly
involved in the overseas employment
program, and their relatives within the
fourth degree of consanguinity or
affinity; and
f. Persons, partners, officers and Directors
of corporations whose license has been
previously cancelled or revoked for
violation of the Labor Code, or its
implementing rules, or other relevant
laws, decrees, rules and regulations, and
issuances.
(b) Direct hiring

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.
EXCEPTIONS:
Art. 18, 2nd sentence. Supra
Omnibus Rules Implementing RA 8042,
as amended, Rule II, Sec. 1.
(i) Direct Hires refer to workers directly
hired by employers for overseas
employment as authorized by the
Secretary of Labor and
Employment and processed by the POEA,
including:
1. Those hired by international
organizations;
2. Those hired by members of the
diplomatic
corps; and
3. Name hires or workers who are able to
secure overseas employment
opportunities with employers without
the assistance or participation of any
agency
4. Government Techniques of Regulation Private
Recruitment
a. Licensing/Qualification of Applicants
(a) Citizenship
Art. 27. Citizenship requirement. Only
Filipino citizens or corporations,
partnerships or entities at least seventyfive percent (75%) of the authorized and

voting capital stock of which is owned and
controlled by Filipino citizens shall be
permitted to participate in the recruitment
and placement of workers, locally or
overseas.
2002 POEA Rules, Part II, Rule I,
Section 1. Qualifications. Only those
who possess the following qualifications
may be permitted to engage in the
business of recruitment and placement of
Filipino workers:
(a) Filipino citizens, partnerships or
corporations at least seventy five
percent (75%) of the authorized capital
stock of which is owned and controlled
by Filipino citizens; xxx
(b) Capitalization
Art. 28. Capitalization. All applicants for
authority to hire or renewal of license to
recruit are required to have such
substantial capitalization as determined by
the Secretary of Labor.
2002 POEA Rules, Part II, Rule I.
Section 1. Qualifications. Only those
who possess the following qualifications
may be permitted to engage in the
business of recruitment and placement of
Filipino workers:
(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
(c) Validity of License
2002 POEA Rules, Part II, Rule II.
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 100 workers 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 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 and when used by the
licensed person, partnership or corporation.
(d) Non-transferability
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.
Section 7. Non-Transferability of
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 to prevent disruption of operation to
the prejudice of 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 8. Change of
Ownership/Relationship of Single
Proprietorship or Partnership. Transfer
or change of ownership of a single
proprietorship licensed to engage in
overseas employment shall cause the
automatic revocation of the license.
A change in the relationship of the
partners in a partnership duly licensed to
engage in overseas 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 9. Upgrading of Single
Proprietorship or Partnerships. License
holders which are single proprietorships or
partnerships may, subject to the guidelines
of the Administration, convert into
corporation for purposes of upgrading or
raising their capabilities to respond
adequately to developments/changes in
the international labor market and to
enable them to better comply with their
responsibilities arising from the recruitment
and deployment of workers overseas.
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
(e) Registration/License fees
Art. 30. Registration fees. The Secretary
of Labor shall promulgate a schedule of
fees for the registration of all applicants for

license or authority.
Section 4. Payment of Fees and
Posting of Bonds. Upon approval of the
application, the applicant shall pay a
license fee of P50,000.00. It shall submit an
Escrow Agreement in the amount of
P1,000,000.00, confirmation of escrow
deposit with an accredited reputable bank
and a surety bond of P100,000.00 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 .
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 accreditation
and contracts of employment. The bonds
and escrow shall likewise guarantee
compliance with the provisions of the Code
and its implementing rules and regulations
relating to recruitment and placement, the
Rules of the Administration and relevant
issuances of the Department 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 judgment
against the principal in connection with
matters falling under POEAs/NLRCs
jurisdiction shall be binding and conclusive
on the surety. The surety bonds shall cover
the validity period of the license
(f) Bonds
Art. 31. Bonds. All applicants for license
or authority shall post such cash and surety
bonds as determined by the Secretary of
Labor to guarantee compliance with
prescribed recruitment procedures, rules
and regulations, and terms and conditions

of employment as may be appropriate.
Section 4. supra
b. Workers Fees/Documentation Fees/Placement Fees
Art. 32. Fees to be paid by workers. Any person
applying with a private fee-charging employment
agency for employment assistance shall not be
charged any fee until he has obtained employment
through its efforts or has actually commenced
employment. Such fee shall be always covered with
the appropriate receipt clearly showing the amount
paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.
2002 POEA Rules, Part II, Rule V, Section 1.
Section 1. Service Fee. - Agencies shall charge
from their principals a service fee to cover services
rendered in the recruitment, documentation and
placement of workers. The Administration shall
provide incentives to agencies and employers who
are able to comply with this rule.
Fees and Costs Chargeable to Principals. Unless otherwise provided, the principal shall be
responsible for the payment of the following:
a. visa fee;
b. airfare
c. POEA processing fee; and
d. OWWA membership fee
Fees/Costs Chargeable to the Workers - Except
where the prevailing system in the country where
the worker is to be deployed, either by law, policy
or practice, do not allow the charging or collection
of placement and recruitment fee, a land-based
agency may charge and collect from its hired
workers a placement fee in an amount equivalent
to one month salary, exclusive of documentation
costs.
Documentation costs to be paid by the
worker shall include, but not limited to, expenses
for the following:
a. Passport
b. NBI/Police/Barangay Clearance
c. Authentication
d. Birth Certificate
e. Medicare
f. Trade Test, if necessary
g. Inoculation, when required by host country
h. Medical Examination fees
In the event that the recruitment agency
agrees to perform documentation services, the
worker shall pay only the actual cost of the
document which shall be covered by official
receipts.
The above-mentioned placement and
documentation costs are the only authorized
payments that may be collected from a hired
worker. No other charges in whatever form, manner
or purpose, shall be imposed on and be paid by the
worker without prior approval of the POEA.
Such fees shall be collected from a hired worker
only after he has obtained employment through the
facilities of the recruitment agency.
SAGUN v SUNACE INTERNATIONAL MANAGEMENT SERVICES
(Feb. 23, 2011; J. Nachura)
SUMMARY: Avelina Sagun filed a case against Sunace International for
collection of excess placement fee. She claimed that aside from paying
P30K, she issued a promissory note, and that her foreign employer has
been deducting from her salary as part of the placement fee. However,
she was not able to present any evidence except for the promissory
note (which is not even adequate to prove excessive fee). The Court
sided with Sunace who presented an acknowledgement receipt signed
by Avelina showing the amount collected, which is authorized by POEA.
DOCTRINE: Mere general allegations of payment of excessive
placement fees cannot be given merit as the charge of illegal exaction
is considered a grave offense which could cause the suspension or
cancellation of the agencys license. They should be proven and
substantiated by clear, credible, and competent evidence.
c. Reports/Employment Information
Art. 33. Reports on employment
status. Whenever the public interest requires, the
Secretary of Labor may direct all persons or entities
within the coverage of this Title to submit a report
on the status of employment, including job
vacancies, details of job requisitions, separation
from jobs, wages, other terms and conditions and

other employment data.
Art. 14. Employment promotion. The Secretary
of Labor shall have the power and authority:
(4) To require any person, establishment,
organization or institution to submit such
employment information as may be prescribed
by the Secretary of Labor.
Art. 34. Prohibited practices. It shall be unlawful
for any individual, entity, licensee, or holder of
authority:
(h) To fail to file reports on the status of
information as may be required by the Secretary
of Labor.
RA 8042, as amended. SEC. 6. Definition. For
purposes of this Act, illegal recruitmentshall
of Labor and Employment;
d. Illegal Recruitment: Simple/Qualified or Syndicated
Art. 34. Prohibited practices. It shall be unlawful
for any individual, entity, licensee, or holder of
authority:
1. To charge or accept, directly or indirectly, any
Secretary of Labor, or to make a worker pay any
2. To furnish or publish any false notice or
3. To give any false notice, testimony, information

license or authority under this Code.
4. To induce or attempt to induce a worker already
offer him to another unless the transfer is
designed to liberate the worker from oppressive
5. 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;
6. To engage in the recruitment or placement of
Philippines;
7. To obstruct or attempt to obstruct inspection by
the Secretary of Labor or by his duly authorized
representatives;
8. To fail to file reports on the status of
of Labor.
9. 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;
10.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
11.To withhold or deny travel documents from
applicant workers before departure for monetary
or financial considerations other than those
authorized under this Code and its
implementing rules and regulations.
Art. 38. Illegal recruitment.
(a) Any recruitment activities, including the
prohibited practices enumerated under Article 34
of this Code, to be undertaken by non-licensees
or non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this
Code. The Department of Labor and Employment
or any law enforcement officer may initiate

complaints under this Article.
(b) Illegal recruitment when committed by a
syndicate or in large scale shall be considered an
offense involving economic sabotage and shall
be penalized in accordance with Article 39
hereof.
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
RA 8042, as amended, 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
(a) To charge or accept directly or indirectly any
Secretary of Labor and Employment, or to
make a worker pay or acknowledge any
(b) To furnish or publish any false notice or
(c) To give any false notice, testimony, information
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
offer him another unless the transfer is
designed to liberate a worker from oppressive
(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
Philippines;
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 workers 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.
more persons conspiring or confederating with one
another. It is deemed committed in large scale if
committed against three (3) or more persons
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;
worker is required to avail of a loan only from
persons;
(3) Refuse to condone or renegotiate a loan
incurred by an overseas Filipino worker after
the latters employment contract has been
prematurely terminated through no fault of his
or her own;
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;
worker is required to undergo training, seminar,
instruction or schooling of any kind only from
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 workers
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.
RA 8042, as amended, Sec. 7. Penalties (a) Any person found guilty of illegal recruitment
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 not less
than two hundred thousand pesos
(P200,000.00) nor more than five hundred
thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of
not less than five hundred thousand pesos
(P500,000.00) nor more than one million pesos
(P1,000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as
defined herein.
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.
RA 8042, as amended, Sec. 8. Prohibition on
officials and employees. - It shall be unlawful for
any official or employee of the Department of Labor
and Employment, the Philippine Overseas
Employment Administration, or the Overseas
Workers Welfare Administration, or the Department
of Foreign Affairs, or other government agencies
involved in the implementation of this Act, or their
relatives within the fourth civil degree of
consanguinity or affinity, to engage, directly or
indirectly, in the business of recruiting migrant
workers as defined in this Act. The penalties shall
be imposed upon them.
RA 8042, as amended, Sec. 9. Venue. - A
criminal action arising from illegal recruitment as
defined herein shall be filed with the Regional Trial
Court of the province or city where the offense was
committed or where the offended party actually
resides at the same time of the commission of the
offense: Provided, That the court where the criminal
action is first filed shall acquire jurisdiction to the

exclusion of other courts. Provided, however, That
the aforestated provisions shall also apply to those
criminal actions that have already been filed in
court at the time of the effectivity of this Act.
RA 8042, as amended, 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 workers 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.
RA 8042, as amended, Sec. 11. Mandatory
periods for resolution of illegal recruitment
cases. - The preliminary investigations of cases
under this Act shall be terminated within a period of
thirty (30) calendar days from the date of their
filing. Where the preliminary investigation is
conducted by a prosecution officer and a prima
facie case is established, the corresponding
information shall be filed in court within twenty-four
(24) hours from the termination of the
investigation. If the preliminary investigation is
conducted by a judge and a prima facie case is
found to exist, prosecution officer within forty-eight

(48) hours from the date of receipt of the records of
the case.
RA 8042, as amended, 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.
(a) When undertaken by non-licensees, nonholders
PEOPLE v ANGEL MATEO and VICENTA LAPIZ (April 22, 2015; J. Del
Castillo)
SUMMARY: Angel Mateo and Vicenta Lapiz promised five overseas
applicants employments in Japan in exchange for a fee ranging from
P18,555 to P25,000 each. When no employment came, the two were
charged and convicted with illegal recruitment in a large scale and
estafa. The Court upheld the conviction, stating that all the elements of
both crimes were present.
DOCTRINE: The elements of illegal recruitment in a large scale are:
(1) the person charged undertook recruitment activity as defined under
Section 6 of RA 8042; (2) the accused did not have the license of the
authority to lawfully engage in the recruitment of workers; and (3) the
accused committed the same against three or more persons
individually or as a group. Since the definition of illegal recruitment
under the law includes the phrase whether for profit or not, it is
immaterial that money is received. What is important is that the
accused was sufficiently involved in the prohibited recruitment. A
person convicted for illegal recruitment under the law, may, for the
same acts, be separately convicted for estafa under Article 315, par.
2(a) of the Revised Penal Code.
PEOPLE v DOLORES OCDEN (June 1, 2011; J. Leonardo-de Castro)

SUMMARY: Defendant Ocden was charged with illegal recruitment in
large scale and estafa for promising complainants and 4 other people
jobs in Italy for a fee. She collected the fees, application forms, and
assisted them in their medical exams but the victims never actually
got to leave for Italy. The Court found her guilty beyond reasonable
doubt of illegal recruitment in large scale as punished by RA 8042 in
relation to the Labor Code and estafa as punished by the RPC.
DOCTRINE: Art. 13 (b) of the Labor Code defines and enumerates the
acts which constitute recruitment and placement. The amendments to
the Labor Code introduced by RA 8042 (Migrant Workers and Overseas
Filipinos Act of 1995) broadened the concept of illegal recruitment and
provided stiffer penalties, especially for those that constitute economic

sabotage, i.e., illegal recruitment in large scale and illegal recruitment
committed by a syndicate.
It is well-settled that to prove illegal recruitment, it must be
shown that appellant gave complainants the distinct impression that
he had the power or ability to send complainants abroad for work such
that the latter were convinced to part with their money in order to be
employed. Since illegal recruitment under Section 6(m) can be
committed by any person, even by a licensed recruiter, a certification
on whether a person had a license to recruit or not, is inconsequential.
(b) Prohibited practices

PERT/CPM MANPOWER EXPONENT CO. INC. v ARMANDO VINUYA
(Sept. 2012; J. Brion)
SUMMARY: Respondents were deployed by PERT/CPM Manpower to
work in Modern Metal Solutions in Dubai, UAE. Upon reaching Dubai,
respondents were shocked to find out that their working and living
conditions in Dubai were very different from that which was indicated
in the contracts they signed. While in Dubai, they were also required to
sign new employment contracts. Subsequently, respondents resigned.
The Court held that the agency and Modern Metal committed flagrant
violations of the law on overseas employment, as well as basic norms
of decency and fair play in an employment relationship.
DOCTRINE: It is unlawful to substitute or alter employment contracts
approved and verified by the DOLE 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.
STOLT-NIELSEN TRANSPO. GROUP, INC. & CHUNG GAI SHIP

MGMT. v SULPECIO MEDEQUILLO (Jan. 18, 2012; J. Perez)
SUMMARY: Medequillo was hired by Stolt-Nielsen as Third Assistant
Engineer on board the vessel "Stolt Aspiration". He was on board the
said vessel for three months, after which the employment contract was
novated by a second contract, which indicated that he was supposed
to be deployed to another vessel, MV "Stold Pride." Despite the
perfection of the second contract, Medequillo was not deployed,
prompting him to file an action for illegal dismissal, for which he was
awarded damages.
DOCTRINE: Distinction must be made between the perfection of the
employment contract and the commencement of the employeremployee relationship. The perfection of the contract, which in this
case coincided with the date of execution thereof, occurred when
petitioner and respondent agreed on the object and the cause, as well
as the rest of the terms and conditions therein. The commencement of
the employer-employee relationship would have taken place had
petitioner been actually deployed from the point of hire. Thus, even
before
the
start
of
any
employer-employee
relationship,
contemporaneous with the perfection of the employment contract was
the birth of certain rights and obligations, the breach of which may
give rise to a cause of action against the erring party. Thus, if the
reverse had happened, that is the seafarer failed or refused to be
deployed as agreed upon, he would be liable for damages.
VILMA SULIMAN v PEOPLE (Nov. 24, 2014; J.)

SUMMARY: Petitioner was charged and convicted of 2 counts of illegal
recruitment and 3 counts of estafa. CAs decision became final since
Suliman failed to submit MR. Sulimans subsequent Motion to Readmit
was denied by the CA and the SC. The SC held that even if the motion
were granted, Suliman still would not have been acquitted because the
prosecution was able to prove the charges against her.
DOCTRINE: The following are prohibited acts:
-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 any
amount greater than that actually received by him as a loan or
advance (Sec. 6(a));
-Failure to actually deploy without valid reasons as determined by the
Department of Labor and Employment (Sec. 6(l)); and
-Failure to reimburse expenses incurred by the workers 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 as offense involving
economic sabotage (Sec. 6(m))
NOTE: Art. 38(c) was declared unconstitutional

per Salazar v Achacoso, relying on 1987
Constitution, Art. III, Section 2
e. Enforcement Powers
(a) Rule-making power
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.
(b) Regulatory power

LC, Art. 36. supra
1. Suspension or cancellation of
License/Authority
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.
2. Issuance of orders
LC, Art. 36. supra
(c) Visitorial Power
LC, 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.
f.
POEA Standard Employment Contract

(a) To be integrated in every seafarers
contract
WALLEN MARITIME SERVICES v ERNESTO TANAWAN (August

2012; J.)
SUMMARY: Tanawan had an accident at work and submitted himself
to Dr. Lim (company physician) for a medical examination to treat his
foot injury. He was treated for a foot injury for 172 days until he was
declared fit to work. He also went to another doctor for a disability
evaluation (this time for an eye injury sustained while on board the
vessel). He filed a complaint for disability benefits, sickness allowance,
and damages against petitioner. The court partially grants the petition:
awarding for his foot injuries and deleting the award for his eye injury.
Because according to the Standard Employment Contract, only the
company physician can assess and establish the disability of the

repatriated seaman.
DOCTRINE: Employment of seafarers, and its incidents, are governed
by the contracts they sign every time they are hired or rehired. While
the seafarers and their employers are governed by their mutual
agreements, the POEA rules and regulations require that the POEA SEC
which contains the standard terms and conditions of the seafarers
employment in foreign ocean going vessels, be integrated in every
seafarers contract.
(b) Construction: liberal

LEOPOLDO ABANTE v KJGS FLEET MGT. (Dec. 4, 2009; J.)
SUMMARY: Leopoldo Abante was hurt on the job and was operated on
in the Philippines after being repatriated. 6 months after his surgery,
company doctor pronounced him fit to work. He got a second opinion
which then rendered him unfit to work. He filed for disability benefits.
LA: complaint was premature. NLRC: case remanded. CA: LA decision
reinstated. SC: Seafarer is not precluded from getting a second opinion.
When there are conflicting opinions from the company doctor and the
preferred doctor, the Court will uphold opinion which will entitle
seafarer to benefits.
DOCTRINE: POEA standard employment contract for seamen was
designed primarily for the protection and benefit of Filipino seamen in
the pursuit of their employment on board ocean-going vessels. Its
provisions must be construed and applied fairly, reasonably and
liberally in their favor
(c) Terms and Conditions

1. Disability Benefits
g. Joint and Several lability of Recruitment/Placement
agency and principal/employer (corporate officers
and company) a verified undertaking
2002 POEA Rules, Part II, Rule II, Section 1.
Requirements for Licensing - Every applicant for
license to operate a private employment agency
shall submit a written application together with the
following requirements:
(f) A verified undertaking stating that the
applicant:
3) Shall assume joint and solidary liability with
the employer for all claims and liabilities
which may arise in connection with the
implementation of the contract, including
but not limited to payment of wages, death

and disability compensation and
repatriations;
(g) In case of corporation or partnership, verified
undertaking by its officers, directors, partners
that they will be jointly and severally liable with
the company over claims arising from
employer-employee relationship
RA 8042, as amended, Sec. 10 (2). Money
Claims - The liability of the principal/employer and
the recruitment/placement agency for any and all
damages.
Omnibus Rules Implementing RA 8042, as
amended, Rule VII, Sec. 3. Joint and Several
Liability - The liability of the principal/employer
and the recruitment/placement agency on any and
all claims under this Rule shall be joint and several.
This liability shall be incorporated in the contract
to be 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
and partners, as the case may be, shall themselves
be jointly and severally liable with the corporation
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 of the contract made
locally or in a foreign country.
(a) Effect of Termination of Agency Agreement
Between Manning Agent and principal
RA 8042, as amended, Sec. 10 (2).
Supra
Rules Implementing RA 8042, as
amended, Rule VII, Sec. 3 (3). supra
(b) Purpose of joint and several liability:
immediate and sufficient payment
ABOSTA SHIP MGT. v WILHILM HILARIO (Nov. 24, 2014; J.)
SUMMARY: ASMC entered into a contract of employment with Wilhim
on behalf of its foreign principal Panstar wherein Wilhim was hired as a
bosun of the foreign vessel Grand Mark. The controversy arose from
the act of the foreign principal in promoting an able seaman instead of
hiring Wilhim, an act that effectively disregarded the contract entered.
The Court ruled that Wilhim was entitled to the payment of actual
damages, holding ASMC and Panstar jointly and solidarily liable.
DOCTRINE: Private employment agencies are held jointly and
severally liable with the foreign-based employer for any violation of the
recruitment agreement or contract of employment. This joint and
solidary liability imposed by law on recruitment agencies and foreign
employers is meant to assure the aggrieved worker of immediate and
sufficient payment of what is due him.
OSM SHIPPING PHIL., INC v NLRC & FERMIN GUERRERO (Mar. 5,

2003; J. Panganiban)
SUMMARY: Fermin was hired as Master Mariner by OSM in behalf of its
principal, PC-SASCO. Despite complying with his duties for 7 months,
Fermin was never paid any compensation at all. Hence, he filed a
complaint against OSM and PC-SASCO. The SC held OSM solidarily
liable with PC-SASCO.
DOCTRINE: Joint and solidary liability is meant to assure aggrieved
workers of immediate and sufficient payment of what is due them.
h. Responsibilities of local recruitment

agencies/liability for damages and attorneys fees
RA 8042, as amended, Sec. 10 (pars. 2, 3, 4, 5).
Money claims
The liability of the principal/employer and the

recruitment/placement agency for any and all
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 workers 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.
5. Jurisdiction
a. RTC over criminal action arising from illegal
recruitment
RA 8042, as amended, Sec. 9. Venue - A
criminal action arising from illegal recruitment as
defined herein shall be filed with the Regional Trial
Court of the province or city where the offense was
resides at the same time of the commission of the
offense: Provided, That the court where the criminal

exclusion of other courts. Provided, however, That
the aforestated provisions shall also apply to those
criminal actions that have already been filed in
court at the time of the effectivity of this Act.
Omnibus Rules Implementing RA 8042, Rule
IV, Sec. 6. Sec. 6. Venue - A criminal action
arising from illegal recruitment as defined under
this Rule shall be filed with the Regional Trial Court
of the province or city where the offense was
resides at the time of the commission of the
offense; Provided, that the court where the criminal
exclusion of other courts.
b. LA over money claims arising out of an ER-EE
relationship/law/contract
RA 8042, as amended, Sec. 10 (1). 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
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.
Omnibus Rules Implementing RA 8042, Rule
VII, Sec. 1. Jurisdiction of Labor Arbiters Notwithstanding any provision of law to the
contrary, the Labor Arbiters of the NLRC shall have
the original and exclusive jurisdiction to hear and
moral, exemplary and other forms of damages.
POSEIDON INTERNATIONAL MARITIME SERVICES, INC. v TITO

TAMALA ET. AL (June 26, 2013; J. Brion)
SUMMARY: Respondents were hired by Poseidon to man the fishing
vessels of Van Doorn at Cape Verde Islands. The operations abruptly
stopped and did not resume. There was a May 25, 2005 agreement
where Poseidon and Respondent agreed that 100% of their unpaid
salaries for the unexpired portion of their pre-terminated contract.
However, there was another agreement reducing the previously agreed
amount to 50%. Respondents signed a waiver and quitclaim and the
corresponding cash vouchers after receiving their settlement pay.
Respondents file for illegal dismissal, claiming that the waivers and
quitclaims they signed should not be valid because they were coerced
into signing. The SC held that the waivers and quitclaims valid. No
illegal dismissal. Also, CA erred in applying RA 8042 Sec. 10 because it
only applies to cases of illegal dismissal.
DOCTRINE: The application of Section 10 of R.A. No. 8042 presumes a
finding of illegal dismissal. A plain reading of this provision readily
shows that it applies only to cases of illegal dismissal or dismissal
without any just, authorized or valid cause and finds no application in
cases where the overseas Filipino worker was not illegally dismissed.
NOTE: A phrase in par. 5 thereof was declared

unconstitutional by SC per Serrano v Gallant
Maritime Services Inc.
SAMEER OVERSEAS PLACEMENT AGENCY v JAY CABILES (Aug. 5,
2014; J.)
SUMMARY: Joy applied as a quality control job in Taiwan through
Sameer Overseas Placement Agency. She was required by the agency
to pay P70,000.00 for placement fee upon signing the contract. Her
employment contract is for one year, with salary of NT$15,360,.00.
However, after less than a month, she was terminated for no reason
and she was sent back to Manila. The cost of the plane ticket was
deducted from her salary so she was only able to receive NT$9,000.00
DOCTRINE: Although not raised as an issue, the clause of for three
months for every year of the unexpired term, whichever is less which
was struck down as unconstitutional in the case of Serrano v. Gallant
Maritime Services, Inc. and Marlow Navigation Co. Inc. and reproduced
exactly in Section 7 of RA 10022 can be declared by this Court as
unconstitutional. The nullity of a law cannot be cured by
reincorporation or reenactment of the same or a similar law or
provision. A law or provision of law that was already declared
unconstitutional remains as such unless circumstances have changed
as to warrant a reverse conclusion.
LORENZO TANGGA-AN v PHIL. TRANSMARINE CARRIERS (Mar. 13,

2013; J.)
SUMMARY: Lorenzo had a 6-month employment contract but he was
illegally dismissed which left an unexpired portion of 4 months. The
point of contention is the construction of Section 10 of RA 8042 Is
Lorenzo entitled to 4 months of backpay or just 3 months. The SC held
that he is entitled to the full 4 months which is the unexpired portion of
the contract.
DOCTRINE: When the illegally dismissed employees employment
contract has a term of less than 1 year, he shall be entitled to recovery
of salaries representing the whole unexpired portion of his employment
contract. No limitation of 3 months. The 3 months for every year of
service comes into play only when the employment contract has a
term of at least 1 year or more.
c. POEA over administrative cases

(a) Pre-employment/Recruitment violation
cases
Rule X, Sec. 6. Jurisdiction of the POEA
- The POEA shall exercise original and
exclusive jurisdiction to hear and decide:
(a) all pre-employment/recruitment
violation cases
which are administrative in character,
involving or arising out of violations of
Rules and Regulations relating to
licensing and registration, including
refund of fees collected from the
workers or violation of the conditions for
issuance of license or authority to
recruit workers;
(b) Disciplinary cases and other special cases
Rule X, Sec. 6. Jurisdiction of the POEA
- The POEA shall exercise original and
exclusive jurisdiction to hear and decide:
(b) disciplinary action cases and other
special cases, which are administrative
in character, involving employers,
principals, contracting partners and
OFWs processed by the POEA.
EASTERN MEDITERRANEAN MARITIME LTD. & AGEMAR

MANNING AGENCY INC. v ESTANISLA SURIO (Aug. 23, 2012; J.)
SUMMARY: The respondent crewmembers complained of delays in
payment of wages and remittance of allotments by the owners and
operators of the vessel, herein petitioners. After the International
Transport Federation reviewed and ordered that the respondents be
paid wage differentials, the petitioners sought disciplinary action
against the respondents, and filed it with the POEA. When appealed to
the NLRC, the latter ruled that they did not have jurisdiction. The Court
affirmed this holding that the Secretary of Labor has jurisdiction over
disciplinary cases over overseas workers, for only money claims were
transferred under the jurisdiction of the NLRC by virtue of RA 8042.
DOCTRINE: While RA 8042, Sec. 10 transferred the original and
exclusive jurisdiction to hear and decide money claims involving
overseas Filipino workers from the POEA to the Labor Arbiters, the law
did not remove from the POEA the original and exclusive jurisdiction to
hear and decide all disciplinary action cases and other special cases
administrative in character involving such workers.
ii. Public Sector Agencies

1. Employment Offices
LC, Art. 12(f). supra
LC, Art. 14. Employment promotion. The Secretary of
Labor shall have the power and authority:
(a) To organize and establish new employment offices in
addition to the existing employment offices under the
Department of Labor as the need arises;
E.O. 247 (Reorganizing POEA), Sec. 3. Powers and
Functions. - In the pursuit of its mandate, the
Administration shall have the following powers and
functions:
(a) Regulate private sector participation in the recruitment
and overseas placement of workers by setting up a
licensing and registration system;
(b) 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;
(c) Protect the rights of Filipino workers for overseas
employment to fair and equitable recruitment and
employment practices and ensure their welfare;
(d) Exercise original and exclusive jurisdiction to hear and

decide all claims arising out of an employer-employee
relationship or by virtue of any law or contract
involving Filipino workers for overseas employment
including the disciplinary cases; and all preemployment cases which are administrative in
character involving or arising out of violation or
requirement laws, rules and regulations including
money claims arising therefrom, or violation of the
conditions for issuance of license or authority to recruit
workers. All prohibited recruitment activities and
practices which are penal in character as enumerated
and defined under and by virtue of existing laws, shall
be prosecuted in the regular courts in close
coordination with the appropriate Departments and
agencies concerned;
(e) Maintain a registry of skills for overseas placement;
(f) Recruit and place workers to service the requirements
for trained and competent Filipino workers by foreign
governments and their instrumentalities and such
other employers as public interest may require;
(g) Promote the development of skills and careful
selection of Filipino workers;
(h) Undertake overseas market development activities for
placement of Filipino workers;
(i) Secure the best terms and conditions of employment of
Filipino contract workers and ensure compliance
therewith;
(j) Promote and protect the well-being of Filipino workers
overseas;
(k) Develop and implement programs for the effective
monitoring of returning contract workers, promoting
their re-training and re-employment or their smooth
re-integration into the mainstream of national
economy in coordination with other government
agencies;
(l) Institute a system for ensuring fair and speedy
disposition of cases involving violation or recruitment
rules and regulations as well as violation of terms and
conditions of overseas employment;
(m) Establish a system for speedy and efficient
enforcement of decisions laid down through the
exercise of its adjudicatory function;
(n) Establish and maintain close relationship and enter
into joint projects with the Department of Foreign
Affairs, Philippine Tourism Authority, Manila
International Airport Authority, Department of Justice,
Department of Budget and Management and other
relevant government entities, in the pursuit of its

objectives. The Administration shall also establish and
maintain joint projects with private organizations,
domestic or foreign, in the furtherance of its
objectives.
2. Sanctions
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.
LC, Art. 39. Penalties.
(a) The penalty of life imprisonment and a fine of One
Hundred Thousand Pesos (P1000,000.00) shall be
imposed if illegal recruitment constitutes economic
sabotage as defined herein;
(b) Any licensee or holder of authority found violating or
causing another to violate any provision of this Title or
its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment
of not less than two years nor more than five years or
a fine of not less than P10,000 nor more than P50,000,
or both such imprisonment and fine, at the discretion
of the court;
(c) Any person who is neither a licensee nor a holder of
authority under this Title found violating any provision
thereof or its implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of
imprisonment of not less than four years nor more
than eight years or a fine of not less than P20,000 nor
more than P100,000 or both such imprisonment and
fine, at the discretion of the court;
(d) If the offender is a corporation, partnership,
association or entity, the penalty shall be imposed
upon the officer or officers of the corporation,
partnership, association or entity responsible for
violation; and if such officer is an alien, he shall, in
addition to the penalties herein prescribed, be
deported without further proceedings;
(e) In every case, conviction shall cause and carry the
automatic revocation of the license or authority and all
the permits and privileges granted to such person or
entity under this Title, and the forfeiture of the cash

and surety bonds in favor of the Overseas Employment
Development Board or the National Seamen Board, as
the case may be, both of which are authorized to use
the same exclusively to promote their objectives.
RA 8042, as amended, Sec. 6. supra
RA 8042, as amended, Sec. 7. Penalties
(a) Any person found guilty of illegal recruitment 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 not less than two hundred
thousand pesos (P200,000.00) nor more than five
hundred thousand pesos (P500,000.00).
(b) The penalty of life imprisonment and a fine of not less
than five hundred thousand pesos (P500,000.00) nor
more than one million pesos (P1,000,000.00) shall be
imposed if illegal recruitment constitutes economic
sabotage as defined herein.
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 nonlicensee or non-holder of authority.
RA 8042, as amended, Sec. 10 (pars. 5 and 6).
Money Claims 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 workers 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.
a. Local Employment
LC, Art. 39. supra
b. Overseas Employment
LC, Art. 35. supra
RA 8042, as amended, Sec. 7. supra
2. Alien Employment Regulation
1987 Constitution, Art. XII, Section 12. The State shall promote the
preferential use of Filipino labor, domestic materials and locally produced
goods, and adopt measures that help make them competitive.
a. Coverage
Omnibus Rules, Book I, Rule I, Section 1. Definition of terms.
(j) Non-resident alien" means any alien already in the Philippines or
seeking admission to the Philippines to obtain employment in any
public or private enterprise.
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.
Omnibus Rules, Book I, Rule XIV, Section 1. Coverage. This
Rule shall apply to all aliens employed or seeking employment in the
Philippines, and their present or prospective employers.
D.O. 97-09 (S. of 2009) as amended by D.O. 120-12. (Revised
Rules for the Issuance of Employment Permits to Foreign
Nationals)
Section 1. Coverage All foreign nationals who intend to engage in
gainful employment in the Philippines shall apply for Alien Employment
Permit (AEP).
D.O. 12 (S. of 2001) (Omnibus Guidelines for the Issuance of
Employment Permits to Foreign Nationals). Rule I. Coverage
and Exemption
1. The following shall apply for Alien Employment Permit (AEP)

1.1 All foreign nationals seeking admission to the Philippines for
purpose of employment
1.2 Missionaries or religious workers who intend to engage in
gainful employment;
1.3 Holders of Special Investors Resident Visa (SIRV), Special
Retirees Resident Visa (SRRV), Treaty Traders Visa (9d) or
Special Non-immigrant Visa (47(a)2), who occupy any
executive, advisory, supervisory, or technical position in any
establishment
1.4. Agencies, organizations or individuals whether public or
private who secure the services of foreign professionals to
practice their professions in the Philippines under reciprocity
and other international agreements
1.5. Non-Indo Chinese Refugees who are asylum seekers and
given refugee status by the United Nations High
Commissioner on Refugees (UNHCR) or the Department of
Justice under DOJ Department Order No. 94, series of 1998
1.6. Resident foreign nationals seeking employment in the
Philippines
i. Exemptions
D.O. 97-09 (S. of 2009) as amended by D.O. 120-12.
Section 2. Exemption The following categories of foreign
nationals are exempt from securing an employment permit:
(a) All members of the diplomatic service and foreign
government officials accredited by and with reciprocity
arrangement with the Philippine government;
(b) Officers and staff of international organizations of which the
Philippine government is aa member, and their legitimate
spouses desiring to work in the Philippines
(c) Foreign nationals elected as members of the Governing
Board who do not occupy any other position, but have only
voting rights in the corporation
(d) All foreign nationals granted exemption by law
(e) Owners and representatives of foreign principals whose
companies are accredited by the Philippine Overseas
Employment Administration (POEA), who come to the
Philippines for a limited period and solely for the purpose of
interviewing Filipino applicants for employment abroad
(f) Foreign nationals who come to the Philippines to teach,
present and/or conduct research studies in universities and
colleges as visiting, exchange, or adjunct professors under
formal agreements between the universities or colleges in
the Philippines and foreign universities or colleges; or
between the Philippine government and foreign
government; provided that the exemption is on a reciprocal

basis; and
(g) Permanent resident foreign nationals, probationary or
temporary resident visa holders
D.O. 12 (S. of 2001) (Omnibus Guidelines for the Issuance
of Employment Permits to Foreign Nationals). Rule I.
Coverage and Exemption
2. Exemption. The following categories of foreign nationals are
exempt from securing an employment permit in order to work in
the Philippines:
2.1 All members of the diplomatic services and foreign
government officials accredited by the Philippine
government
2.2 Officers and staff of international organizations of which
the Philippine government is a cooperating member, and
their legitimate spouses desiring to work in the Philippines
2.3 Foreign nationals elected as member of the Governing
Board who do not occupy any other position, but have only
voting rights in the corporation; and
2.4 All foreign nationals granted exemption by special laws and
all other laws that may be promulgated by the Congress.
ANDREW JAMES MCBURNIE v EULALIO GANZON October 17, 2013;

J.)
SUMMARY: Andrew James McBurnie, an Australian national, filed a
complaint for illegal dismissal against Eulalio Ganzon, EGI-Managers,
Inc. and E. Ganzon, Inc. Claiming he signed a 5-year employment
agreement as EVP in May 1999, he said he was forced to go back to
Australia to recuperate from the injuries he sustained in November
1999. While in Australia, he was informed by Ganzon that his services
were no longer needed because their intended project would no longer
push through. After a lengthy succession of court proceedings
culminating in a second motion for reconsideration by Ganzon before
the SC, it was held that McBurnie cannot seek the benefits of Philippine
labor laws since he didn't have a work permit and he failed to present
evidence to prove his claim of an employer-employee relationship.
DOCTRINE: 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 must
obtain an employment permit from the Department of Labor.
ALMODIEL v NLRC (1993; J.)

SUMMARY: Almodiel contends that his dismissal due to redundancy
illegal because functions of his position were absorbed by the Finance
department under the management of someone less qualified than him

and an alien resident without a working permit. Additionally, he avers
that he should have been named the manager. The Court states that it
is immaterial whether his functions have been dispensed with or
merely absorbed by another because it is the managements
prerogative to determine whether an employees services as no longer
necessary.
DOCTRINE: The employment permit is required for entry into the
country for employment purposes and is issued after 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. Resident aliens do not fall within the ambit
of the provision.
b. Conditions for Grant of Permit

Omnibus Rules, Book I, Rule XIV, Section 4. Employment permit
required for entry. No alien seeking employment, whether on
resident or non-resident status, may enter the Philippines without first
securing an employment permit from the Department of Labor and
Employment. If an alien enters the country under a non-working visa
and wishes to be employed thereafter, he may only be allowed to be
employed upon presentation of a duly approved employment permit.
Omnibus Rules, Book I, Rule XIV, Section 3. Registration of
resident aliens. All employed resident aliens shall register with the
Bureau under such guidelines as may be issued by it.
Omnibus Rules, Book I, Rule XIV, Section 5. Requirements for
employment permit application. The application for an
employment permit shall be accompanied by the following:
(a) Curriculum vitae duly signed by the applicant indicating his
educational background, his work experience and other data
showing that he possesses high technical skills in his trade or
profession;
(b) Contract of employment between the employer and the
principal which shall embody the following, among others:
(1) That the non-resident alien worker shall comply with all
applicable laws and rules and regulations of the
Philippines;
(2) That the non-resident alien worker and the employer shall
bind themselves to train at least two (2) Filipino
understudies for a period to be determined by the
Secretary of Labor and Employment; and
(3) That he shall not engage in any gainful employment other
than that for which he was issued a permit.
(c) A designation by the employer of at least two (2) understudies
for every alien worker. Such understudies must be the most
ranking regular employees in the section or department for

which the expatriates are being hired to ensure the actual
transfer of technology.
Omnibus Rules, Book I, Rule XIV, Section 6. Issuances of
employment permit. The Secretary of Labor and Employment may
issue an employment permit to the applicant based on:
a) Compliance by the applicant and his employer with the
requirements of Section 2 hereof;
b) Report of the Bureau Director as to the availability or nonavailability of any person in the Philippines who is competent,
able, and willing to do the job for which the services of the
applicant are desired;
c) His assessment as to whether or not the employment of the
applicant will redound to the national interest;
d) Admissibility of the alien as certified by the Commission on
Immigration and Deportation;
e) The recommendation of the Board of Investments or other
appropriate government agencies if the applicant will be
employed in preferred areas of investments or in accordance
with imperatives of economic developments; and
f) Payments of a P100.00 fee.
D.O. 97-09 (S. of 2009) as amended by D.O. 120-12. Sec. 3.
Procedure in the Processing of Applications for AEP
a. All applications for AEP shall be filed at the DOLE Regional Office
or Field Office having jurisdiction over the intended place of work
Only applications with the Following complete documentary
requirements shall be received and acted upon by the Regional
Office:
1. Duly accomplished Application form
2. Photocopy of Passport, with visa or Certificate of Recognition
for refugees or stateless persons
3. Contract of employment/Appointment or Board Secretarys
Certificate of Election
4. Photocopy of Mayors Permit to operate business or in case of
locators in economic zone, Certification from the PEZA or the
Ecozone Authority that the company is located and operating
within the ecozone
b. In the case of foreign nationals to be assigned in related
companies, they may file their application with the Regional Office
having jurisdiction over any of the applicants intended places of
work
c. Additional position of the foreign national in the same company
or subsequent assignment in related companies during the
validity or renewal of the AEP will be subject for publication
requirement and payment of publication fee. A change of position
or employer shall require an application for new AEP.

Fees. Upon filing of application, the applicant shall pay a fee of Eight
Thousand Pesos (P8,000) for an AEP with a validity of one year. In case
the period of employment is more than one year, an additional Three
Thousand Pesos (P3,000) shall be charged for every additional year or
fraction thereof. In case of renewal, the applicant shall pay a fee of
Three Thousand Pesos (P3,000) for each year of validity or fraction
thereof.
A courier fee of Two Hundred Pesos (P200) shall be charged to
the foreign national upon the implementation of the AEP online
application system.
Any change of information or entries in the AEP shall be subject
to payment of Seven Hundred Fifty Pesos (P750) for AEP replacement.
In case of loss of AEP, request for replacement shall be supported by
an Affidavit of Loss. All fees covered by official receipt issued by the
Regional Office are non-refundable.
PACIFIC CONSULTANTS INTERNATIONAL ASIA v SCHONFELD
(February 119, 2007; J.)
SUMMARY: PPI is a Philippine corporation and is a subsidiary of Tokyobased PCIJ. Klaus, an Alien, was employed by PCIJ (thru Henrichsen)
and was assigned as PPI Sector Manager in the Philippines. In 1999,
Klaus was terminated, which prompted him to file for money claims
(that were partially settled) and a complaint for Illegal Dismissal. PPI
argues that no employer-employee relationship exist since he was
hired by PCIJa foreign corporation.
DOCTRINE:
Employer-employee
relationship
is
proved
by
documentary evidence, and by using the four-fold test. PPI filed an
application with DOLE for an Alien Employment Permit, which requires
a contract of employment. PPI is estopped from alleging that PCIJ, and
not PPI is Klaus employer.
c. Validity of AEP
Omnibus Rules, Book I, Rule XIV, Section 7. Duration of
employment permit. Subject to renewal upon showing of good
cause, the employment permit shall be valid for a minimum period of
one (1) year starting from the date of its issuance unless sooner
revoked by the Secretary of Labor and Employment for violation of any
provisions of the Code or of these Rules.
Validity of AEP. The AEP shall be valid for the position and the
company for which it was issued for a period of one year, unless the
employment contract, consultancy services, or other modes of
engagement provides otherwise, which in no case shall exceed five
years.
d. Denial of Application
Denial of application An application for AEP may be denied by the
Regional Director based on any of the following grounds:
(a) Misrepresentation of facts in the application
(b) Submission of falsified documents
(c) The foreign national has been convicted of a criminal offense or
a fugitive from justice (amended; from the foreign national has
a derogatory record)
(d) Availability of a Filipino who is competent, able and willing to do
the job intended for the foreign national
Denial of application for AEP shall cause the forfeiture of the fees paid
by the applicant.
e. Revocation/Cancellation, Grounds Due Process
Cancellation/Revocation of AEP The Regional Director may, motu
propio or upon petition, cancel or revoke an AEP after due process,
based on any of the following grounds:
(a) Non-compliance with any of the requirements or conditions for
which the AEP was issued;
(b) Misrepresentation of facts in the application
(c) Submission of falsified or tampered documents
(d) Meritorious objection or information against the employment of
the foreign national
(e) The foreign national has been convicted of a criminal offense or
a fugitive from justice
(f) Employer terminated the employment of the foreign national
Note: Sec. 12 on Suspension of AEP has been deleted under D.O. 120-12
(S. 2012)
*Section 12 states that the AEP may be suspended when (a) the continued
stay of the foreign national may result in damage to the interest of the
industry or the country or (b) the employment of the foreign national is
suspended by the employer or by order of the Court
3. Development of Human Resources
1987 Constitution, Art. II, Sec. 17. The State shall give priority to
education, science and technology, arts, culture, and sports to foster
patriotism and nationalism, accelerate social progress, and promote total

human liberation and development.
1987 Constitution, Art. XIV, Sec. 1. The State shall protect and promote
the right of all citizens to quality education at all levels and shall take
appropriate steps to make such education accessible to all.
1987 Constitution, Art. XIV, Sec. 2. The State shall:
(1) Establish, maintain, and support a complete, adequate, and
integrated system of education relevant to the needs of the people
and society;
(2) Establish and maintain a system of free public education in the
elementary and high school levels. Without limiting the natural right
of parents to rear their children, elementary education is compulsory
for all children of school age;
(3) Establish and maintain a system of scholarship grants, student loan
programs, subsidies, and other incentives which shall be available to
deserving students in both public and private schools, especially to
the underprivileged;
(4) Encourage non-formal, informal, and indigenous learning systems, as
well as self-learning, independent, and out-of-school study programs
particularly those that respond to community needs; and
(5) Provide adult citizens, the disabled, and out-of-school youth with
training in civics, vocational efficiency, and other skills.
a. Manpower Development Technical Education and Skills Development
of Filipino Middle-level Manpower
i. Definition
Art. 44. Definitions. As used in this Title:
(a) Manpower" shall mean that portion of the nations
population which has actual or potential capability to
contribute directly to the production of goods and services.
RA 7796, Sec. 4. Definition of Terms. As used in this Act:
(b) Skills Development shall mean the process through which
learners and workers are systematically provided with
learning opportunities to acquire or upgrade, or both, their
ability, knowledge and behavior pattern required as
qualifications for a job or range of jobs in a given
occupational area;
(c) Technical Education shall refer to the education process
designed at post-secondary and lower tertiary levels,
officially recognized as non-degree programs aimed at
preparing technicians, para-professionals and other
categories of middle-level workers by providing them with a
broad range of general education, theoretical, scientific and

technological studies, and related job skills training;
(e) Middle-Level Manpower refers to those
1) who have acquired practical skills and knowledge
through formal or non-formal education and training
equivalent to at least a secondary education but
preferably a post-secondary education with a
corresponding degree or diploma; or
2) skilled workers who have become highly competent in
their trade or craft as attested by industry;
ii. General Policy
RA 7796, Sec. 2. Declaration of Policy -- It is hereby
declared the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills
development in support of the development of high quality
Filipino middle-level manpower responsive to and in accordance
with Philippine development goals and priorities.
The State shall encourage active participation of various
concerned sectors, particularly private enterprises, being direct
participants in and immediate beneficiaries of a trained and
skilled workforce in providing technical education and skills
development opportunities.
iii. Specific Goals and Objectives
RA 7796, Sec. 3. Statement of Goals and Objectives. It is
the goal and objective of this Act to:
a) Promote and strengthen the quality of technical education
and skills development programs to attain international
competitiveness;
b) Focus technical education and skills development on
meeting the changing demands for quality middle-level
manpower;
c) Encourage critical and creative thinking by disseminating
the scientific and technical knowledge base of middlelevel manpower development programs;
d) Recognize and encourage the complementary roles of
public and private institutions in technical education and
skills development and training systems; and
e) Inculcate desirably values through the development of
moral character with emphasis on work ethic, selfdiscipline, self-reliance and nationalism.
iv. National Trade Skills Standards
RA 7796, Sec. 22. Establishment and Administration of

National Trade Skills Standards. -There shall be national
occupational skills standards to be established by TESDAaccredited industry committees. The Authority shall develop and
implement a certification and accreditation program in which
private industry groups and trade associations are accredited to
conduct approved trade tests, and the local government units to
promote such trade testing activities in their respective areas in
accordance with the guidelines to be set by the Authority.
The Secretary of Labor and Employment shall determine
the occupational trades for mandatory certification.
All certificates relating to the national trade skills testing and
certification system shall be issued by the Authority through the
TESD A Secretariat.
1. Certification and Accreditation program
2. Approved Trade Tests by private industry group
a. Occupational trades for mandatory certification, to
be determined by DOLE Secretary
b. Training and Employment of Special Workers Apprentices and
Learners
i. Policy Objectives
LC Art. 57. Statement of objectives. This Title aims:
(1) To help meet the demand of the economy for trained
manpower;
(2) To establish a national apprenticeship program through
the participation of employers, workers and government
and non-government agencies; and
(3) To establish apprenticeship standards for the protection of
apprentices.
ii. Definition
1. Apprentice
2. Learner
3. Middle-level Manpower
iii. Allowed Employment and When
iv. Conditions of Employment
v. Enforcement
c. Persons with disability or PWDs (formerly referred to as Disabled
Persons or Handicapped Workers
i. Definition
ii. Policy declaration
iii. Coverage
iv. Employment Rights and Privileges
v. Discrimination in employment
MARITES BERNARDO v NLRC (July 12, 1999; J. Panganiban)

SUMMARY: From 1988 to 1993, 56 deaf-mutes were employed by Far
East Bank as Money Sorters and Counters through an employment
contract specifically for disabled people. Later, 43 of these workers
filed for illegal dismissal. While the lower courts held that under Art 80,
such contracts may specify fixed term periods, the applicable law is Art
280, which applied to the case, leads to the conclusion that said
employees are regular (only 27 of them) and may not be validly
terminated without just cause.
DOCTRINE: Section 5 of the Magna Carta for Disabled persons
provides A qualified disabled employee shall be subject to the same
terms and conditions of employment and the same compensation,
privilegesas a qualified able bodied person. Once they have
attained the status of regular workers, they should be accorded all the
benefits granted by law, notwithstanding written or verbal contracts to
the contrary. This treatment is rooted not merely on charity or
accommodation, but on justice for all.

Labor Standards Law (Part I)

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Labor Standards Law (Part I)

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LABOR STANDARDS LAW

1. Employment Policies, Recruitment and Placement of Workers, and Agencies

development. The existence of the overseas employment program

the convention/declaration/resolution, or the bilateral

which is charged, directly or indirectly, from the

LC, Art. 14. Employment promotion. The

amount greater than that actually received by

member of the Board of any corporation

prematurely terminated through no fault of his

The persons criminally liable for the above

acts constituting the offense shall be sufficient to

THIS PURPOSE REPUBLIC ACT NO. 8042,

Art. 12(f). supra

(b) Direct hiring

partnerships or entities at least seventyfive percent (75%) of the authorized and

Section 5. Provisional License.

In case of death of the sole proprietor

fees for the registration of all applicants for

and regulations, and terms and conditions

from jobs, wages, other terms and conditions and

misrepresentation for the purpose of securing a

or any law enforcement officer may initiate

license or authority under the Labor Code, or

under the Labor Code and its implementing

examination cost is shouldered by the

as prosecutors in such cases shall be entitled to

action is first filed shall acquire jurisdiction to the

as defined by law or contract, or any unauthorized

found to exist, prosecution officer within forty-eight

PEOPLE v DOLORES OCDEN (June 1, 2011; J. Leonardo-de Castro)

provided stiffer penalties, especially for those that constitute economic

(b) Prohibited practices

STOLT-NIELSEN TRANSPO. GROUP, INC. & CHUNG GAI SHIP

VILMA SULIMAN v PEOPLE (Nov. 24, 2014; J.)

NOTE: Art. 38(c) was declared unconstitutional

(b) Regulatory power

POEA Standard Employment Contract

WALLEN MARITIME SERVICES v ERNESTO TANAWAN (August

company physician can assess and establish the disability of the

(b) Construction: liberal

(c) Terms and Conditions

but not limited to payment of wages, death

shall not be affected by any substitution,

OSM SHIPPING PHIL., INC v NLRC & FERMIN GUERRERO (Mar. 5,

h. Responsibilities of local recruitment

The liability of the principal/employer and the

action is first filed shall acquire jurisdiction to the

POSEIDON INTERNATIONAL MARITIME SERVICES, INC. v TITO

NOTE: A phrase in par. 5 thereof was declared

LORENZO TANGGA-AN v PHIL. TRANSMARINE CARRIERS (Mar. 13,

c. POEA over administrative cases

EASTERN MEDITERRANEAN MARITIME LTD. & AGEMAR

ii. Public Sector Agencies

(d) Exercise original and exclusive jurisdiction to hear and

relevant government entities, in the pursuit of its

entity under this Title, and the forfeiture of the cash

1. The following shall apply for Alien Employment Permit (AEP)

government; provided that the exemption is on a reciprocal

ANDREW JAMES MCBURNIE v EULALIO GANZON October 17, 2013;

ALMODIEL v NLRC (1993; J.)

department under the management of someone less qualified than him

b. Conditions for Grant of Permit

ranking regular employees in the section or department for

D.O. 97-09 (S. of 2009) as amended by D.O. 120-12. Sec. 4.