ART. 24. Boards to Issue Rules and Collect Fees.

24- The Boards shall issue

appropriate rules and regulations to carry out their functions. They shall have the
power to impose and collect fees from employers concerned, which shall be
deposited in the respective accounts of said Boards and be used by them exclusively
to promote their objectives.

Chapter II - REGULATION OF
RECRUITMENT AND PLACEMENT
ACTIVITIES
ART. 25. Private Sector Participation in the Recruitment and Placement of
Workers.25- 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 recruitment and placement of workers,
locally and overseas, under such guidelines, rules and regulations as may be issued
by the Secretary of Labor.

ART. 26. Travel Agencies Prohibited to Recrult. 26- Travel agencies and sales
agencies of airline companies are prohibited from engaging in the business of
recruitment and placement of workers for overseas employment whether for profit or
not.

ART. 27. Citizenship Requlrement. 27- Only Filipino citizens or corporations,

partnerships or entities at least seventy-five percent (75%) of the authorized and
voting capital stock of which is owned and controlled by Filipino citizens shall be
permitted to participate in the recruitment and placement of workers, locally or
overseas.

ART. 28. Capitalization. 28- All applicants for authority to hire or renewal of
license to recruit are required to have such substantial capitalization as determined
by the Secretary of Labor.

ART. 29. Non-transferability of License or Authority.29- No license or

authority shall be used directly or indirectly by any person other than the one in

24 The Boards referred to are the boards of the now-defunct OEDB and NSB. The POEA absorbed the powers and functions of lhe OEDB and
NSB.
25 Section 23 of R.A. No. 8042, as amended by SecUon 14 of R.A. 10022, and Section 3 of R.A. No. 10022 mandate the POEA to "regulate
private sector particlpatlon In the recruitment and overseas placement of workers by setting up a licensing and registration systom.• For local
employment. see the DOLE's Rules and Regulations Governing Private Recruitment and Placement Agency (PRPA) for Local Employment.
:zesee also Section 6 0) of R.A. No. 8042, as amended.
71
Refer to Section 1, Rule I of lhe POEA Rules on Licensing and Regulatlon of Recruitment Agencies for Land-based Wcxiters. See also Section
e (n) of R.A. No. 8042, as amended, which classifies as Illegal recruitment "to allow a non-Finpino citizen to head or manage a licensed
recruitment/manning agency.•
�or overseas employment. see Section 1 (b) of Rule I, Part II of the POEA Rules on Licensing and Regulation of Recruitment Agencies for
Land-based Workers. For local employment. see Section 2, Rule II of the DOLE's PRPA Guidelines.
29
See Section 7, Rule I of the POEA Rules on Licensing and Regulation. See also Sectlon 9, Rule II of the DOLE's PRPA Guidelines.

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