SECTION 1. Qualifications of applicants. — All applicants for license to operate private employment agencies either for local or overseas recruitment and placement shall possess the following qualifications:
(a) Citizenship requirement as provided for in Rule IV of these Rules;
(b) Appropriate capitalization as follows:
1. For overseas recruitment and placement, a minimum networth of P150,000.00 in the case of single proprietorship, and a paid-up capital or networth of P150,000.00 in the case of a corporation or partnership, as the case may be;
2. For local recruitment and placement, a minimum networth of P25,000.00 in the case of single proprietorship; and a paid-up capital or networth of P25,000.00 in the case of partnership or corporation, as the case may be;
(c) Applicants not otherwise disqualified by law, rule or regulations as may be determined by competent authority to engage in recruitment and placement. (Repealed by POEA Rules and Regulations)
SECTION 2. Application for license for overseas recruitment and placement. — Every applicant for license to operate a private employment agency for overseas recruitment and placement shall submit to the Bureau the following documents in support of the application:
(a) A certified copy of the Articles of Incorporation in the case of a corporation, or the registration with the Bureau of Domestic Trade in the case of a single proprietorship or partnership;
(b) If the applicant is a corporation, proof of financial capacity of the major stockholders such as sworn statements of assets and verified income tax returns for the last two years;
(c) Clearance from the Philippine Constabulary and the Bureau of Internal Revenue for all the incorporators, partners or single proprietor;
(d) A verified statement that the applicant has in its employ persons with adequate competence to evaluate and test recruits and to consider them for employment strictly on the basis of merit and fitness, without any undue discrimination and in accordance with the qualifications prescribed by the employer;
(e) A verified undertaking to assume all responsibilities for the proper use of its license/authority and the implementation of the contracts of employment with the workers; and
(f) Such other requirements that the Secretary may require upon recommendation of the Bureau Director. (Amended by Sec. 1, Rule II, Book II, POEA Rules and Regulations)
SECTION 3. Action on application. — Within the thirty (30) days from the receipt of the application for license, the Bureau shall recommend its denial or approval to the Secretary. Upon considering the findings and recommendations of the Bureau, the Secretary may either deny or approve the application. (Amended by POEA Rules and Regulations)
SECTION 4. Fees and bonds. — Upon approval of the application, the applicant shall pay to the Department a license fee of P6,000.00, post a cash bond of P50,000.00 or negotiate bonds of equivalent amount convertible to cash issued by banking or financial institutions duly endorsed to the Department, as well as a surety bond of P150,000.00 from an accredited bonding company to answer for valid and legal claims arising from violations of the conditions of the license or the contracts of employment and guarantee compliance with the provisions of the Code, its implementing rules and regulations and appropriate issuances of the Department. (Amended by Sec. 2 & 4 Rule II Book II, POEA Rules and Regulations)
SECTION 5. Issuance of license. — Upon payment of the license fee and the posting of the appropriate bonds, the Bureau shall issue the corresponding licensing to the applicant. (Modified by Sec. 5, Rule II, Book II, POEA Rules and Regulations)
SECTION 6. Duration of license. — Every license shall be valid for one year from the date of approval, unless sooner cancelled, revoked or suspended by the Secretary for violation of any of the conditions of the license or any of applicable provisions of the Code and these Rules. (As amended by Sec. 6, Rule II, Book II, POEA Rules and Regulations)
SECTION 7. Non-transferability of license. — No license shall be transferred, conveyed or assigned to any other person or entity, or used in any place other than that stated in the license. Any transfer of business address, appointment or designation, of any agent or representative, including the establishment of additional offices elsewhere, shall be subject to the final approval of the Bureau. (As amended by Sec. 7, Rule II, Book II, POEA Rules and Regulations)
SECTION 8. Change of Ownership of Business. — Transfer or change of ownership of a single proprietorship licensed or authorized to engage in overseas employment shall cause the automatic revocation of the license or authority. The new owner shall be required to apply for a license or authority in accordance with these Rules. (Added by Sec. 8, Rule II, Book II, POEA Rules and Regulations)
A change in the relationship of the partners in a partnership duly authorized or licensed to engage in overseas employment which materially interrupt the course of the business or results in the actual dissolution of the partnership shall likewise cause the automatic revocation of the license or authority.
SECTION 9. Upgrading of Single Proprietorship or partnership. — Licensees or authority holders which are single proprietorships or partnerships may, subject to the guidelines of the Administration, convert into corporations for purposes of upgrading or raising their capabilities to meet the stiff competition in the international labor market and to enable them to better comply with their responsibilities arising from the recruitment and deployment of workers overseas. (Added by Sec. 9, Rule II, Book II, POEA Rules and Regulations)
The prohibition on the issuance of new license under L.O.I. 1190 shall not apply to the new entity created by reason of the above merger, consolidation or upgrading.
The approval of merger, consolidation or upgrading shall automatically revoke or cancel the license or authorities of the single proprietorships, partnerships or corporations so merged, consolidated or upgraded.
SECTION 10. Change of Directors of Corporations. — Every change in the composition of the Board of Directors of a corporation licensed or authorized to participate in overseas employment shall be registered with the Administration within 30 days from the date the change was decided or approved. The corporation shall be required to submit to the Administration the bio-data and clearances of the new members of the Board from the government agencies identified in Section 1 (c) Rule II, Book II of these Rules. (Added by Sec. 10, Rule II, Book II, POEA Rules and Regulations)
SECTION 11. Change of Other Officers and Personnel. — Every change of officers or representatives and termination of appointment of personnel shall be registered with the Administration within 30 days from the date the change or termination occurred. (Added by Sec. 11, Rule II, Book II, POEA Rules and Regulations)
SECTION 12. Transfer of Business Address. — Any transfer of business address, including the establishment of additional offices elsewhere, shall be effected only with prior authority or approval of the Administration. The approval shall be issued only upon formal notice of the intention of transfer with the following attachments: (Added by Sec. 12, Rule II, Book II, POEA Rules and Regulations)
(a) Copy of the company's formal notice to the BDT or SEC on the transfer of business address;
(b) In case of a corporation, Board Resolution duly registered with the SEC authorizing transfer of business address;
(c) Copy of the BDT or SEC acknowledgment of the notice to transfer;
(d) Copy of the contract of lease or proof of building ownership.
The new office space shall be subject to the normal ocular inspection procedures by duly authorized representatives of the Administration.
A notice to the public of the new address shall be punished in a newspaper of general circulation.
SECTION 13. Conduct of Recruitment Outside of Registered Office. — No licensed or authorized agency or entity shall conduct recruitment activities outside of the address stated in the licensed authority without first securing prior authority from the Administration. (Added by Sec. 13, Rule II, Book II, POEA Rules and Regulations)
SECTION 14. Appointment of Representatives. — Every appointment of representatives or agents of licensed or authorized agency or entity shall be subject to the prior approval or authority of the Administration. The approval may be issued upon submission of or compliance with the following requirements:(Added by Sec. 14, Rule II, Book II, POEA Rules and Regulations)
(a) Proposed appointment or special power of attorney;
(b) Philippine Constabulary (PC-CIS) and National Bureau of Investigation (NBI) clearances of the proposed representative or agent;
(c) Two (2) copies of passport-size pictures of the proposed representative or agent;
(d) A sworn or verified statement by the designating or appointing person or company assuming full responsibility for all acts of the agent or representative done in connection with the recruitment and placement of workers.
Approval by the Administration of the appointment or designation does not authorize the agent or representative to establish a branch or extension office of the licensed agency represented.
Any revocation or amendments in the appointment should be communicated to the Administration, otherwise the designation or appointment shall be deemed as not revoked or amended.
SECTION 15. Renewal of license. — Not later than forty five (45) days before the expiry date of the license, a private employment agency shall submit to the Bureau an application for renewal of license. Such application shall be supported by the following documents:
(a) A report under oath of its operations during the period covered by the license containing the following information, among other:
1) Number and categories of workers recruited and placed overseas during the period, names and addresses of their respective employer(s)/principal(s), total basic wages and salaries earned of workers placed by it and reported foreign exchange earnings remitted during the period as certified by the Central Bank;
2) Total amount paid to the welfare fund and processing fees paid during the period;
3) Names and addresses of its principals and the amount of service fees per worker charged against them; and
(b) Verified financial statement of operation during the period, including latest income tax payment. (Amended by Sec. 15, Rule II, Book II, POEA Rules and Regulations)
SECTION 16. Processing of application for renewal. — Within thirty (30) days from receipt of the application for renewal of license, the Bureau shall complete the processing of the same. Upon evaluation of the documents submitted and the agency's performance records, the Bureau shall recommend its denial or renewal to the Secretary who may accept or deny the Bureau's recommendation. The Bureau shall release the license subject to payment of a license fee of P6,000.00, posting of a cash bond of P50,000.00 or its acceptable equivalent, and the renewal of the surety bond of P150,000.00. (Amended by Sec. 16 to 18, Rule II, Book II, POEA Rules and Regulations)
(a) Replenishment of Cash or Surety Bonds. — Within thirty (30) days from notice by the Administration that the bonds or any part thereof had been garnished, the agency or entity shall replenish the same. Failure to replenish shall cause the suspension or cancellation of the license or authority.
(b) Refund of Cash Bond. A licensed agency or entity which voluntarily surrenders its license or authority shall be entitled to the refund of its cash bond only after posting a surety bond of similar amount valid for three (3) years.
(c) Evaluation of Performance of Agencies and Entities. The Administration shall undertake the evaluation and rating of the performance of licensed agencies and entities and determine the merits of their continued participation in the overseas employment program taking into consideration compliance with laws and regulations and such other criteria as it may deem proper. (Sec. 21 Rule II, Book III, POEA Rules and Regulations)
(d) Classification and Ranking. — The Administration may undertake the classification and ranking of agencies and entities. (Sec. 22 Rule II, Book III, POEA Rules and Regulations)
(e) Incentives and Recognition. — The Administration may undertake incentives and recognition to deserving agencies and contractors for exemplary performance. (Sec. 23 Rule II, Book III, POEA Rules and Regulations)
SECTION 17. Requirement before recruitment. — Before recruiting any worker, the private employment agency shall submit to the Bureau the following documents:
(a) A formal appointment or agency contract executed by a foreign-based employer in favor of the license holder to recruit and hire personnel for the former duly authenticated or attested by the Philippine Labor Attaché or duly authorized Philippine foreign service official or, in his absence by an appropriate official, agency or organization in the country where the employer conducts his business. In case any of the foregoing documents is executed in the Philippines, the same may be authenticated by the duly authorized official of the Department of Foreign Affairs or of the employer's consulate or Embassy or of the Department of Labor and Employment official as may be appropriate. Such formal appointment or recruitment agreement shall contain the following provisions, among others:
(1) Terms of recruitment, including the responsibility of the parties relative to the employment of workers;
(2) Power of the agency to sue and be sued jointly and solidarily with the principal or foreign-based employer for any of the violations of the recruitment agreement and the contracts of employment;
(3) Compensation or payment schedule, including payment of documentation costs, government fees, service from the transportation fare and the mode of payments;
(4) Period of validity, which shall be not less than one year and up to the expiration date of the last employment contract signed with its recruits; and
(5) Institutions of systems or procedure to be implemented for mandatory remittance of a portion of the worker's salary as provided under the Code and the Affidavit of undertaking.
(b) Commercial registration and other pertinent documents proving the legal personality of the foreign principal, including its authority to hire and recruit foreign workers;
(c) Job order or requisition of the foreign-based employer or principal, including the number for categories of workers needed, salary and benefit schedule, qualification guidelines and testing procedures and master employment contract; and
(d) Work permits or work visas where such are required by the country of destination.
SECTION 18. Submission of employment contracts. — (a) Every private employment agency shall submit to the Bureau, for evaluation and approval, the master employment contract to be used for its recruits and the service/recruitment agreement which shall be written in English and in the language of the country of work whenever necessary.
(b) All applicants for passport or travel of recruited workers shall be properly endorsed by the Bureau.
SECTION 19. Standard format of service agreement and employment contract. — The Bureau shall adopt a standard format of service agreement and employment contract in accordance with pertinent labor and social legislation and prevailing international standard and conventions. The standard format shall set the minimum standards of the terms and conditions to govern the employment of land-based overseas Filipinos. All employers shall adopt the model contract in connection with the hiring and engagement of the services of overseas workers. (Modified by Sec. 2 Rule I, Book V, POEA Rules and Regulations)
SECTION 20. Worker's deployment. — It shall be the responsibility of the private employment agency to facilitate the deployment of the recruits. If the worker is unable to depart within forty-five (45) days from the release of passport through no fault of his and without any valid reason on the part of the agency, he shall be entitled to the refund of his expenses, if any, and standby pay, if he is made to wait for his deployment. On the other hand, if after the applicant worker has been properly documented and processed, he decides to withdraw without any valid reason, he shall reimburse the agency all expenses of processing and documentation. The Bureau shall issue as appropriate, orders to implement this provision.
SECTION 21. Contents of employment contracts. — The employment contracts shall in no case provide for terms of employment below the standards established by the Department, which shall not be below the basic requirements of Philippine labor and social legislation or practices, and shall include the following: (Modified by Sec. 1 Rule I, Book V, POEA Rules and Regulations)
(a) Guaranteed wages for regular working hours and overtime pay for services rendered in excess of basic working hours as established by the Ministry;
(b) Free transportation from point of hire to site of employment and return, including expenses for travel documentation;
(c) Adequate board and lodging facilities;
(d) Free emergency medical and dental treatment and facilities;
(e) Just causes for the termination of the contract or of the service of the workers;
(f) Workmen's compensation benefits and war hazard protection, including life and accident insurance coverage during the term of employment;
(g) Immediate transportation of the worker's remains and property in case of death to the point of hire or if this is not possible under the circumstances, the proper disposition thereof, upon previous arrangement with the worker's next-of-kin and the nearest Philippine Embassy or Consulate; and
(h) Remittance of the worker's salaries, allowances and/or allotments to his beneficiaries through the Philippine banking system.
SECTION 21. (a) Allowable Salaries and Wages. — Workers hired for overseas employment shall receive salaries or wages in accordance with the standards promulgated by the Administration. The Administration shall undertake the periodic review of salaries and wages prevailing at worksites. (Sec. 3 Rule I, Book V, POEA Rules and Regulations)
SECTION 22. Renewal of contracts. — Every contract worker shall advise the Department of the renewal or extension of his employment contract in any of the following manner:
(a) Through the labor attaché, or in his absence through a duly designated foreign service official in the area of employment who is authorized to renew the contract; or
(b) By furnishing the Bureau directly with a copy of the renewed contract.
SECTION 23. Allowable fees chargeable against the workers. —
(a) Unless otherwise provided by the Secretary, private employment agencies may collect a placement fee from every worker in accordance with a schedule to be approved by him. Such fee shall be paid only when the employment contract of the worker has been approved by the Bureau and he is about to commence employment through the efforts of the agency. Every payment shall be covered by an appropriate receipt indicating the amount paid and the purpose of such payment. In addition and subject to the approval of the Secretary the applicant workers may be required to post a bond to guarantee compliance with the employment contract.
(b) A recruit may be required to shoulder the cost of the following requirements provided that the same shall be covered by an appropriate receipt and unless paid by the employer of principal:
(1) Medical and psychological examination;
(2) Inoculation certificate;
(c) Records of payment shall be available for inspection by an authorized representative of the Bureau any time during regular office hours. (Amended by Sec. 2 Rule IV, Book II, POEA Rules and Regulations)
SECTION 24. Fees chargeable against the employer. — A private employment agency shall charge a minimum mobilization fee to cover costs of recruitment, processing and documentation in accordance with a schedule approved by the Secretary in addition to service charges which may be negotiated with a foreign employer or principal.
(a) Fees Chargeable Against Principals. Agencies shall charge from their principals a service of manning fee to cover services rendered in the recruitment, documentation and placement of workers. (Sec. 1 Rule IV, Book II, POEA Rules and Regulations)
(b) Charges deductible from Fees Paid by Withdrawing Workers. In case of the withdrawal of the worker within one hundred twenty (120) days from the signing of the employment contracts the agency or entity shall refund the amount paid by him after deducting such actual expenses incurred in the documentation of the worker as may be supported by receipts. (Sec. 3 Rule IV, Book II, POEA Rules and Regulations)
(c) Prohibition on Charging of Other Fees. No other fees or charges shall be imposed against any worker. (Sec. 4 Rule IV, Book II, POEA Rules and Regulations)
(d) Processing Fees and Welfare Fund Contribution. Contract processing fees and the Welfare Fund contributions shall in no case be charged to the worker. However, this shall not apply in the case of Seafarers' Welfare Fund which is contributory in nature.
SECTION 25. Recruitment Advertisement. —
(a) No advertisement for overseas recruitment including training or review activities for overseas employment shall be placed in any newspaper by a private employment agency without prior authorization by the Bureau. Such advertisement shall contain the following information, among others:
(1) The number and nature of jobs available, including wage and benefit schedule;
(2) A brief description of the skills needed;
(3) The name, nationality and address of the employer; and
(4) The name, address and license number of the agency.
(b) No press notice or announcement regarding the availability of overseas jobs shall be released by the agency prior to the accreditation of one principal. (As amended by Sec. 2 Rule II Book III, POEA Rules and Regulations)
SECTION 25. (a) Recruitment from the Administration's Manpower Registry. Agencies or entities may recruit workers for their accredited principals or projects from the manpower registry of the Administration in accordance with the guidelines set by it. (Sec. 1, Rule II Book III, POEA Rules and Regulations)
(b) Advertisement for Manpower Pooling By Agencies or Entities. Agencies or entities desiring to generate qualified applicants for prospective principal or project may advertise in accordance with the format prescribed by the Administration. Such undertakings shall not involve payment of any fee by applicants. (Sec. 3, Rule II Book III, POEA Rules and Regulations)
(c) Press Releases on Recruitment. For purposes of these rules, press releases on negotiations with principals or contracting partners and/or involving overseas job openings shall be considered as advertisements. (Sec. 4, Rule II Book III, POEA Rules and Regulations)
(d) Sanctions. False and deceptive advertisements published by agencies or entities including those published not in accordance with the prescribed format shall be valid ground for suspension or cancellation of license or authority. (Sec. 3, Rule I, Book III, POEA Rules and Regulations)
SECTION 26. Application for license for local recruitment and placement.
(a) Every applicant for license to operate a private employment agency for local recruitment and placement shall submit the following documents in support of the application;
(1) A certified copy of the Articles of Incorporation in the case of a corporation or the registration with the Bureau of Domestic Trade in the case of a single proprietorship or partnership; and
(2) Clearance from the Philippine Constabulary and the Bureau of Internal Revenue for all the incorporators, partners or single proprietor.
(3) List of officers/personnel and corresponding bio-data.
(b) An agency licensed to recruit and place workers overseas need not apply for a separate license to engage in domestic recruitment and placement.
SECTION 27. Action on application. — Within thirty (30) days from receipt of the application for license, the Bureau Director shall either deny or approve the same. The denial by the Bureau Director may be appealed by the applicant to the Secretary within ten (10) days from the receipt of the notice of denial.
SECTION 28. Notice of approval or denial. — The Bureau shall immediately transmit the notice of denial or approval of the application to the applicant.
SECTION 29. Fees and bonds. — Upon approval of the application, the applicant shall pay to the Department a license fee of P1,000.00 and post cash and surety bonds of P5,000.00 and P25,000.00, respectively.
The bonds shall guarantee compliance with the provisions of the Code, its implementing rules and the terms and conditions of the employment contracts.
SECTION 30. Issuance of License. — Upon payment of the license fee and the posting of the appropriate bonds, the Bureau Director shall issue the corresponding license to the applicant.
SECTION 31. Duration of license. — The license shall be valid for one year from the date of approval unless sooner cancelled, revoked or suspended by the Bureau Director for violation of any of the conditions prescribed in the license or applicable provisions of the Code or these Rules.
SECTION 32. Non-transferability of license. — No license shall be transferred, conveyed or assigned to any other person or entity, or used in any place other than that stated in the license. Any transfer of business address, appointment, or designation of any agent or representatives, including the establishment of additional offices elsewhere shall be subject to the prior approval of the Bureau.
SECTION 33. Registration of local private recruitment entities. — Educational institutions and civic organizations setting up placement offices to service their students or members shall register their operations with the nearest public employment office or the Bureau under such guidelines as may be prescribed by the Secretary. Such entities shall coordinate their recruitment activities with the public employment offices in the area where they operate.
SECTION 34. Allowable fees. — An employment agency which recruits a domestic worker for an employer may charge the latter a service fee to be determined by the Bureau which shall cover the maintenance of the recruit including board and lodging prior to placement. The transportation fare of the recruit from place of work may be charged against the latter.
Every payment shall be covered by an appropriate receipt indicating the amount paid and purpose of such payment.
SECTION 35. Replacement without costs. — An employer shall be entitled to a replacement without additional charges within one (1) month from the date of engagement of the first recruit on any of the following grounds:
(a) The recruit is found to be suffering from an incurable or contagious disease;
(b) The recruit is physically or mentally incapable of discharging the minimum normal requirements of the job;
(c) The recruit abandons the job, voluntarily resigns, commits theft or any other act prejudicial to the employer or to any immediate members of his family; and
(d) Other grounds analogous to the foregoing.
SECTION 36. Acknowledgment of contracts. — Every recruitment contract shall be acknowledged before the appropriate Regional Director or his duly authorized representative, or in his absence, before the municipal mayor, judge, notaries public or any person authorized by law to administer oath of the place where the recruit resides. If the recruit is a minor, the consent of the parent or guardian, similarly acknowledged, shall be attached to the contract.