SECTION 1. Qualifications of applicants. — All applicants for authority to operate private recruitment entities for overseas work other than construction contractors shall possess the following qualifications:
(a) Citizenship requirement as provided for in Rule IV of these Rules;
(b) Appropriate capitalization as follows:
1. A minimum networth of P300,000 in the case of single proprietorship; and a paid-up capital or networth of P300,000 in the case of a corporation or partnership, as the case may be.
SECTION 2. Application for authority for overseas private recruitment. — Every applicant for authority to operate a private recruitment entity shall submit 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 liabilities and verified income tax returns for the last two years;
(c) If the applicant is a single proprietorship or a partnership, proof of financial capacity of proprietor or partners such as sworn statements of assets and liabilities and verified income tax returns for the last two years;
(d) Clearance from the Philippine Constabulary and the Bureau of Internal Revenue for all the incorporators, partners or single proprietor;
(e) 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 employers;
(f) A verified undertaking to assume all responsibilities for the proper use of its authority and the implementation of the contract of employment with the workers; and
(g) Such other requirements that the Secretary may require upon recommendation of the Director.
SECTION 3. Action on application. — Within thirty (30) days from the receipt of the application for authority, 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.
SECTION 4. Fees and bonds. — Upon approval of the application, the applicant shall pay to the Department a registration fee of P2,000.00, and post a performance bond of P200,000.00 from an accredited bonding company to answer for valid and legal claims arising from violations of the conditions of the authority of the contracts of employment and guarantee compliance with the provisions of the Code, its implementing rules and appropriate issuances of the Department.
SECTION 5. Action on application. — Within thirty (30) days from the receipt of the application for authority, 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.
SECTION 6. Issuance of authority. — Upon payment of the registration fee and the posting of the appropriate bonds the Secretary shall issue the corresponding authority to the applicant.
SECTION 7. Duration/renewal and non-transferability of Authority. —
(a) Every authority shall be valid for one year from the date of approval, unless sooner cancelled, revoked or suspended by the Secretary for violations of any of the conditions of the authority or any applicable provisions of the Code or these Rules.
(b) No authority shall be transferred, conveyed or assigned to any other person or entity or used in any place other than that stated in the authority. Any transfer of business address, appointment or designation of any agency or representative, including the establishment of additional offices elsewhere, shall be subject to the prior approval of the Bureau.
(c) The Secretary shall issue appropriate guidelines on the renewal of authority in accordance with the applicable provisions of these Rules and which may be similar to those provided for licensed holders.
SECTION 8. Recruitment, hiring and employment of workers. — Every private recruitment entity shall recruit, hire and employ workers for overseas job in accordance with the applicable provisions of these Rules. All applications for passport or travel of recruited and hired workers shall be properly endorsed by the Bureau.
SECTION 9. Allowable fees and charges. —
(a) A private recruitment entity 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 it may negotiate with its principal.
(b) Subject to approval by the Secretary the recruited workers may be required to post a bond to guarantee compliance with the employment contract.
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Rules to Implement the Labor Code
