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.
RULE IX : Overseas Employment Development Board (Abolished by EO 797)
SECTION 1. Coverage. — This Rule shall cover the functions and responsibilities of the OEDB. It shall apply to employers hiring through the OEDB and to workers processed and placed by said agency.
SECTION 2. Role of the OEDB. — The OEDB shall be the government placement agency for overseas employment. In cooperation with other relevant agencies and entities, it shall also be responsible for developing employment and wage standards and such support services as may be necessary for the government's overseas employment program. (Modified by Sec. 1, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 3. Employment development. — The promotion and development of employment opportunities abroad shall be undertaken by the OEDB, in cooperation with relevant government agencies and entities, through organized and systematic activities and services which shall include among others, the following:
(a) A comprehensive manpower marketing strategy and to dispatch OEDB development officers abroad for this purpose;
(b) Develop and promote programs or arrangements that would encourage the hiring of Filipinos in organized or corporate groups;
(c) Scout for labor market for unskilled workers, among others; and
(d) Promote Filipino manpower through advertising in appropriate media overseas. (Modified by Sec. 1, Rule I, Bk. IV POEA Rules and Regulations)
SECTION 4. Recruitment and placement. — a) The OEDB shall recruit and place workers primarily on government-to-government arrangements, and shall therefore service the hiring of foreign governments and their instrumentalities and, in addition:
(1) Recruit and place workers of particular skills categories as may be directed by the Secretary;
(2) Administer employment programs or projects as may be directed by the Secretary; and
(3) In cooperation with the Regional Offices of the Department, undertake organized recruitment activities in the provinces in aid of the employment dispersal policy of the Department.
b) The employer shall enter into a bilateral recruitment agreement with the OEDB. The employer shall directly assist the OEDB in selecting appropriate workers from its manpower pool.
c) The OEDB shall ensure that the worker through appropriate undertakings complies with his obligations arising from the employment contract.
SECTION 5. Documents requirements. — An employer hiring through the OEDB shall submit the following documents:
a) Authority from the government of the employer to hire Filipino workers;
b) Work permit or visa assurance of workers; and
c) Recruitment Order which shall state the number and categories of workers needed, compensation benefits, qualification guidelines, testing procedures and a model employment contract. (Modified by Sec. 2, Rule II, POEA Rules and Regulations)
SECTION 6. Formalization of a Recruitment Agreement. — Employers hiring through the Administration shall be required to formalize a Recruitment Agreement which shall be in accordance with existing bilateral labor agreements, if any. The Recruitment Agreement shall, among others, contain the following provisions:
a. Responsibilities of the parties to the agreement;
b. Selection and documentation procedures;
c. Fee schedules and terms of payment;
d. Manner and facilities for remittance of workers' salary;
e. Grievance Machinery for workers; and
f. Validity and revocation of the agreement.
The standards and requirements set by the Administration for the recruitment and placement of workers overseas shall apply to hiring thru the Administration. (Sec. 3, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 7. Recruitment and Placement Procedures. — a) Interview and Selection — An employer hiring through the Administration shall select his workers from the manpower pool developed and maintained by the Administration;
b) Medical Examination. — Selected workers shall undergo and pass a standard pre-employment medical examination conducted by a duly accredited medical retainer of the Administration;
c) Ticketing and Flight Arrangements. — The employer shall assume the full cost of workers' transportation to and from the place of work, For this purpose, the Administration shall handle the flight arrangements and/or ticketing of workers hired. Should the employer decide to handle its own ticketing, he shall be required to course pre-paid tickets through the Administration for appropriate flight booking.
d) Orientation. — Before the worksite, hired workers shall undergo the required Pre-Departure Orientation Seminar (PDOS). (Sec. 4, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 8. Documentation of Workers. — a) Contract Processing — Workers hired through the Administration shall be issued the following documents:
(1) Individual Employment Contract duly signed by the employer or the proper administration official where appropriate;
(2) Travel Exit Pass;
(3) Endorsement letter to PTA, and
(4) Such other documents as may be necessary for travel.
b) Passport Documentation. — The Administration may secure directly the selected worker's passport from the Department of Foreign Affairs. All transmittals and endorsements for passport issuance shall be undertaken directly by the Administration.
c) Visa Arrangements. — The Administration may assist employers and selected workers secure their visas from the appropriate Embassy. Visa forms may be accomplished by the worker at the Administration. The accomplished visa forms together with the passport shall be endorsed by the Administration directly to the Embassy.
SECTION 9. Workers protection. — The OEDB shall protect and enhance the interest, well-being and welfare of workers and, for this purpose, it shall undertake:
a) To establish wage and compensation standards, employments and conditions, by region or by country, which shall be prescribed by the Secretary;
b) To provide facilities for skills development and testing, pre-employment medical examination, pre-departure work/or language orientation, foreign exchange remittance assistance, re-entry and re-employment assistance, accident insurance, among others, and
c) To implement a grievance procedure in accordance with the provisions of this Title and the development objectives of the OEDB.
SECTION 10. Dispute settlement. — The following shall be adhered to in handling employee-employer disputes:
a) In the event of a dispute between employee and employer, the complainant and/or respondent shall submit such dispute to the OEDB for conciliation or mediation. If the dispute is not settled at this stage, the OEDB shall certify the case to the Secretary for final decision.
b) The OEDB, under appropriate circumstances, may suspend, prohibit or prevent an employer from further recruitment activities in the country. The OEDB also under appropriate circumstances, may suspend, prohibit or prevent workers from being placed overseas.
c) Whenever circumstances warrant, the OEDB may dispatch an officer to the worksite to conciliate or mediate employee-employer disputes, in coordination with other appropriate government agencies.
SECTION 11. Welfare Services. — The OEDB shall establish and support a Secretariat for the Welfare Fund for Overseas Workers (Welfund) in accordance with P. D. 1412 and P. D. 1691. Upon the operationalization of the Welfare Fund under P. D. 1694, the functions and responsibilities of such Secretariat shall be assumed by the Welfund.
SECTION 12. Foreign exchange. — The OEDB shall develop and monitor the compliance with the foreign exchange remittance requirements under this Title by employers and workers. It shall establish an office in the OEDB for this purpose in coordination with relevant government agencies.
SECTION 13. Auxiliary services. — The OEDB may, upon approval of its Board, initiate, organize, and establish auxiliary services in support of the overseas employment development program.
SECTION 14. Overseas information system. — The OEDB shall, in coordination with relevant agencies, establish a system of gathering, collating, evaluating and disseminating data and information concerning the Department's overseas employment program.
SECTION 15. Fees and other charges. — The OEDB shall collect reasonable administrative or service fees from employers. It shall not collect service fee from workers.
SECTION 16. Authority to issue rules. — The OEDB shall issue rules and regulations, instructions or orders governing its functions and responsibilities.
SECTION 2. Role of the OEDB. — The OEDB shall be the government placement agency for overseas employment. In cooperation with other relevant agencies and entities, it shall also be responsible for developing employment and wage standards and such support services as may be necessary for the government's overseas employment program. (Modified by Sec. 1, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 3. Employment development. — The promotion and development of employment opportunities abroad shall be undertaken by the OEDB, in cooperation with relevant government agencies and entities, through organized and systematic activities and services which shall include among others, the following:
(a) A comprehensive manpower marketing strategy and to dispatch OEDB development officers abroad for this purpose;
(b) Develop and promote programs or arrangements that would encourage the hiring of Filipinos in organized or corporate groups;
(c) Scout for labor market for unskilled workers, among others; and
(d) Promote Filipino manpower through advertising in appropriate media overseas. (Modified by Sec. 1, Rule I, Bk. IV POEA Rules and Regulations)
SECTION 4. Recruitment and placement. — a) The OEDB shall recruit and place workers primarily on government-to-government arrangements, and shall therefore service the hiring of foreign governments and their instrumentalities and, in addition:
(1) Recruit and place workers of particular skills categories as may be directed by the Secretary;
(2) Administer employment programs or projects as may be directed by the Secretary; and
(3) In cooperation with the Regional Offices of the Department, undertake organized recruitment activities in the provinces in aid of the employment dispersal policy of the Department.
b) The employer shall enter into a bilateral recruitment agreement with the OEDB. The employer shall directly assist the OEDB in selecting appropriate workers from its manpower pool.
c) The OEDB shall ensure that the worker through appropriate undertakings complies with his obligations arising from the employment contract.
SECTION 5. Documents requirements. — An employer hiring through the OEDB shall submit the following documents:
a) Authority from the government of the employer to hire Filipino workers;
b) Work permit or visa assurance of workers; and
c) Recruitment Order which shall state the number and categories of workers needed, compensation benefits, qualification guidelines, testing procedures and a model employment contract. (Modified by Sec. 2, Rule II, POEA Rules and Regulations)
SECTION 6. Formalization of a Recruitment Agreement. — Employers hiring through the Administration shall be required to formalize a Recruitment Agreement which shall be in accordance with existing bilateral labor agreements, if any. The Recruitment Agreement shall, among others, contain the following provisions:
a. Responsibilities of the parties to the agreement;
b. Selection and documentation procedures;
c. Fee schedules and terms of payment;
d. Manner and facilities for remittance of workers' salary;
e. Grievance Machinery for workers; and
f. Validity and revocation of the agreement.
The standards and requirements set by the Administration for the recruitment and placement of workers overseas shall apply to hiring thru the Administration. (Sec. 3, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 7. Recruitment and Placement Procedures. — a) Interview and Selection — An employer hiring through the Administration shall select his workers from the manpower pool developed and maintained by the Administration;
b) Medical Examination. — Selected workers shall undergo and pass a standard pre-employment medical examination conducted by a duly accredited medical retainer of the Administration;
c) Ticketing and Flight Arrangements. — The employer shall assume the full cost of workers' transportation to and from the place of work, For this purpose, the Administration shall handle the flight arrangements and/or ticketing of workers hired. Should the employer decide to handle its own ticketing, he shall be required to course pre-paid tickets through the Administration for appropriate flight booking.
d) Orientation. — Before the worksite, hired workers shall undergo the required Pre-Departure Orientation Seminar (PDOS). (Sec. 4, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 8. Documentation of Workers. — a) Contract Processing — Workers hired through the Administration shall be issued the following documents:
(1) Individual Employment Contract duly signed by the employer or the proper administration official where appropriate;
(2) Travel Exit Pass;
(3) Endorsement letter to PTA, and
(4) Such other documents as may be necessary for travel.
b) Passport Documentation. — The Administration may secure directly the selected worker's passport from the Department of Foreign Affairs. All transmittals and endorsements for passport issuance shall be undertaken directly by the Administration.
c) Visa Arrangements. — The Administration may assist employers and selected workers secure their visas from the appropriate Embassy. Visa forms may be accomplished by the worker at the Administration. The accomplished visa forms together with the passport shall be endorsed by the Administration directly to the Embassy.
SECTION 9. Workers protection. — The OEDB shall protect and enhance the interest, well-being and welfare of workers and, for this purpose, it shall undertake:
a) To establish wage and compensation standards, employments and conditions, by region or by country, which shall be prescribed by the Secretary;
b) To provide facilities for skills development and testing, pre-employment medical examination, pre-departure work/or language orientation, foreign exchange remittance assistance, re-entry and re-employment assistance, accident insurance, among others, and
c) To implement a grievance procedure in accordance with the provisions of this Title and the development objectives of the OEDB.
SECTION 10. Dispute settlement. — The following shall be adhered to in handling employee-employer disputes:
a) In the event of a dispute between employee and employer, the complainant and/or respondent shall submit such dispute to the OEDB for conciliation or mediation. If the dispute is not settled at this stage, the OEDB shall certify the case to the Secretary for final decision.
b) The OEDB, under appropriate circumstances, may suspend, prohibit or prevent an employer from further recruitment activities in the country. The OEDB also under appropriate circumstances, may suspend, prohibit or prevent workers from being placed overseas.
c) Whenever circumstances warrant, the OEDB may dispatch an officer to the worksite to conciliate or mediate employee-employer disputes, in coordination with other appropriate government agencies.
SECTION 11. Welfare Services. — The OEDB shall establish and support a Secretariat for the Welfare Fund for Overseas Workers (Welfund) in accordance with P. D. 1412 and P. D. 1691. Upon the operationalization of the Welfare Fund under P. D. 1694, the functions and responsibilities of such Secretariat shall be assumed by the Welfund.
SECTION 12. Foreign exchange. — The OEDB shall develop and monitor the compliance with the foreign exchange remittance requirements under this Title by employers and workers. It shall establish an office in the OEDB for this purpose in coordination with relevant government agencies.
SECTION 13. Auxiliary services. — The OEDB may, upon approval of its Board, initiate, organize, and establish auxiliary services in support of the overseas employment development program.
SECTION 14. Overseas information system. — The OEDB shall, in coordination with relevant agencies, establish a system of gathering, collating, evaluating and disseminating data and information concerning the Department's overseas employment program.
SECTION 15. Fees and other charges. — The OEDB shall collect reasonable administrative or service fees from employers. It shall not collect service fee from workers.
SECTION 16. Authority to issue rules. — The OEDB shall issue rules and regulations, instructions or orders governing its functions and responsibilities.
RULE X : National Seamen Board
SECTION 1. Recruitment and placement of seamen. — Foreign shipping companies and domestic shipping companies owning or operating vessels engaged in overseas shipping shall hire Filipino seamen through the National Seamen Board. For this purpose, the Board shall maintain a complete registry of seamen indicating their categories or ratings and such other qualifications as may be appropriate.
SECTION 2. Requirements for hiring through agents or representatives. — Foreign shipping companies may hire through duly authorized shipping or manning agents if the latter comply with the following requirements:
(a) Registration with the Securities and Exchange Commission or the Bureau of Domestic Trade, as the case may be;
(b) Submission to the Board of a special power of attorney from their foreign principals which shall include the power to sue and be sued in their behalf;
(c) Submission to the Board for approval of the employment contracts, salary scales and other documents the Board may require;
(d) Submission to the Board of their agency or manning contracts with their foreign principals; and
(e) Other requirements the Board may impose.
SECTION 3. Power to modify and revise hiring procedures. — The Board may amend, alter or modify the manner and/or procedure of recruitment, hiring and placement of seamen to make them more responsive to the demands for Filipino seamen.
SECTION 4. Registration of Seamen. — All seamen applicants should register with the Board when applying with an authorized shipping or manning agent for employment on board a foreign-going vessel.
SECTION 5. Qualifications for registration. — To qualify for registration, an applicant must:
(a) Be a Filipino citizen;
(b) Be at least 18 years of age;
(c) Be physically and mentally fit for employment as a seaman; and
(d) Have adequate training or experience for employment as seaman.
SECTION 6. Supporting documents. — The applicant shall also submit the following documents to complete his registration:
(a) Professional license;
(b) Diploma or certification of educational and other training;
(c) Seaman Continuous Discharge Book;
(d) Certificate of employment and/or service record; and
(e) Other documents the Board may require.
SECTION 7. Power to hear and decide cases. — The Board shall have original and exclusive jurisdiction over disputes arising out of or in connection with, the employment of all Filipino seamen on board vessels engaged in overseas trade. Its decision in such cases shall be appealable by any aggrieved party to the National Labor Relations Commission within the same period and upon the same grounds provided in Article 223 of the Code.
SECTION 8. Model contract of employment. — The Board shall adopt a standard format of service agreement in accordance with pertinent labor and special legislations and the prevailing standards set by applicable International Labor Organization Conventions. The standard format shall set the minimum standards of the terms and conditions to govern the employment of Filipino seafarers, but in no case shall a shipboard employment contract be allowed where the same provides for benefits less than those enumerated in the model employment contract, or in any way conflict with any other provision embodied in the standard format.
SECTION 9. Sanctions. — The Board may ban, prohibit or prevent foreign shipping companies, their agents or representatives from hiring Filipino seamen if they are shown to have repeatedly or grossly violated pertinent provisions of the Code, these rules and regulations and issuances of the Department of Labor and Employment, the Board and the Central Bank of the Philippines.
SECTION 10. No service charge. — No fees shall be charged from the seamen for services in connection with their recruitment and placement. All expenses for hiring seamen shall be shouldered by foreign shipping principals.
SECTION 11. Fees from employers. — The Board shall collect from shipping companies fees to cover reasonable expenses of recruitment and placement of seamen hired through the Board.
SECTION 12. Board to issue rules and regulations. — The Board shall issue rules and regulations governing its functions and responsibilities.
SECTION 2. Requirements for hiring through agents or representatives. — Foreign shipping companies may hire through duly authorized shipping or manning agents if the latter comply with the following requirements:
(a) Registration with the Securities and Exchange Commission or the Bureau of Domestic Trade, as the case may be;
(b) Submission to the Board of a special power of attorney from their foreign principals which shall include the power to sue and be sued in their behalf;
(c) Submission to the Board for approval of the employment contracts, salary scales and other documents the Board may require;
(d) Submission to the Board of their agency or manning contracts with their foreign principals; and
(e) Other requirements the Board may impose.
SECTION 3. Power to modify and revise hiring procedures. — The Board may amend, alter or modify the manner and/or procedure of recruitment, hiring and placement of seamen to make them more responsive to the demands for Filipino seamen.
SECTION 4. Registration of Seamen. — All seamen applicants should register with the Board when applying with an authorized shipping or manning agent for employment on board a foreign-going vessel.
SECTION 5. Qualifications for registration. — To qualify for registration, an applicant must:
(a) Be a Filipino citizen;
(b) Be at least 18 years of age;
(c) Be physically and mentally fit for employment as a seaman; and
(d) Have adequate training or experience for employment as seaman.
SECTION 6. Supporting documents. — The applicant shall also submit the following documents to complete his registration:
(a) Professional license;
(b) Diploma or certification of educational and other training;
(c) Seaman Continuous Discharge Book;
(d) Certificate of employment and/or service record; and
(e) Other documents the Board may require.
SECTION 7. Power to hear and decide cases. — The Board shall have original and exclusive jurisdiction over disputes arising out of or in connection with, the employment of all Filipino seamen on board vessels engaged in overseas trade. Its decision in such cases shall be appealable by any aggrieved party to the National Labor Relations Commission within the same period and upon the same grounds provided in Article 223 of the Code.
SECTION 8. Model contract of employment. — The Board shall adopt a standard format of service agreement in accordance with pertinent labor and special legislations and the prevailing standards set by applicable International Labor Organization Conventions. The standard format shall set the minimum standards of the terms and conditions to govern the employment of Filipino seafarers, but in no case shall a shipboard employment contract be allowed where the same provides for benefits less than those enumerated in the model employment contract, or in any way conflict with any other provision embodied in the standard format.
SECTION 9. Sanctions. — The Board may ban, prohibit or prevent foreign shipping companies, their agents or representatives from hiring Filipino seamen if they are shown to have repeatedly or grossly violated pertinent provisions of the Code, these rules and regulations and issuances of the Department of Labor and Employment, the Board and the Central Bank of the Philippines.
SECTION 10. No service charge. — No fees shall be charged from the seamen for services in connection with their recruitment and placement. All expenses for hiring seamen shall be shouldered by foreign shipping principals.
SECTION 11. Fees from employers. — The Board shall collect from shipping companies fees to cover reasonable expenses of recruitment and placement of seamen hired through the Board.
SECTION 12. Board to issue rules and regulations. — The Board shall issue rules and regulations governing its functions and responsibilities.
RULE XI : Disputes Involving Land-Based Overseas Contract Workers
SECTION 1. Scope. — This Rule shall govern the adjudication of complaints for violations of contracts or employer-employee relations dispute arising from the recruitment, placement and employment of land-based overseas contract workers, except cases involving workers recruited through the OEDB.
SECTION 2. Jurisdiction. — The regional offices of the Department shall have the original and exclusive jurisdiction over all matters or cases involving Filipino workers for overseas employment except seamen: Provided, that the Bureau shall, in the case of the National Capital Region, exercise such power. The decisions of the regional offices or the Bureau shall be appealable to the National Labor Relations Commission within the same period and upon the same grounds provided in Article 223 of the Code.
SECTION 3. Who may file. — Any aggrieved worker or his beneficiaries may file a complaint against any placement agency, authority holder construction contractor or foreign based employer-principal or the latter's authorized agent or representative. The employer or his representative may also file a complaint against a worker for breach of the employment contract or for other violations of the terms and conditions of the employment contract.
SECTION 4. Venue. — Any complainant may file a complaint with the Bureau or with the Regional Office where the contract of employment was originally executed.
SECTION 5. Action of complaints. — Upon receipt of the complaint the Bureau or the Regional Office shall immediately summon the parties for the purpose of conciliating the dispute. If the dispute is not settled within fifteen (15) days from the date of the first conciliation meeting, the Bureau Director shall hear and decide the case; where the case falls under the jurisdiction of the Regional Office, the Regional Director shall assign the same to a Labor Arbiter for compulsory arbitration.
SECTION 2. Jurisdiction. — The regional offices of the Department shall have the original and exclusive jurisdiction over all matters or cases involving Filipino workers for overseas employment except seamen: Provided, that the Bureau shall, in the case of the National Capital Region, exercise such power. The decisions of the regional offices or the Bureau shall be appealable to the National Labor Relations Commission within the same period and upon the same grounds provided in Article 223 of the Code.
SECTION 3. Who may file. — Any aggrieved worker or his beneficiaries may file a complaint against any placement agency, authority holder construction contractor or foreign based employer-principal or the latter's authorized agent or representative. The employer or his representative may also file a complaint against a worker for breach of the employment contract or for other violations of the terms and conditions of the employment contract.
SECTION 4. Venue. — Any complainant may file a complaint with the Bureau or with the Regional Office where the contract of employment was originally executed.
SECTION 5. Action of complaints. — Upon receipt of the complaint the Bureau or the Regional Office shall immediately summon the parties for the purpose of conciliating the dispute. If the dispute is not settled within fifteen (15) days from the date of the first conciliation meeting, the Bureau Director shall hear and decide the case; where the case falls under the jurisdiction of the Regional Office, the Regional Director shall assign the same to a Labor Arbiter for compulsory arbitration.
RULE XII : Illegal Recruitment
SECTION 1. Basis for recommending arrest and detention. — The Secretary may recommend to the appropriate authority the arrest and detention of any person for illegal recruitment if he is satisfied from the preliminary examination conducted by him or by his duly authorized representative that the act constituting illegal recruitment has been committed and that the particular person has committed it.
SECTION 2. Preliminary examination. — Preliminary examination shall be considered as sufficient basis for recommending arrest and detention if the witness or witnesses have been examined personally by the Secretary or his duly authorized representative and the examination is reduced to writing under oath in the form of searching questions and answers.
SECTION 3. Secretariat on illegal recruitment. — The Bureau shall serve as the secretariat of the inter-agency Council on Illegal Recruitment established under LOI 324. It shall provide the necessary personnel, facilities and support services to the campaign against illegal recruitment and shall coordinate activities for the council for such purpose.
SECTION 2. Preliminary examination. — Preliminary examination shall be considered as sufficient basis for recommending arrest and detention if the witness or witnesses have been examined personally by the Secretary or his duly authorized representative and the examination is reduced to writing under oath in the form of searching questions and answers.
SECTION 3. Secretariat on illegal recruitment. — The Bureau shall serve as the secretariat of the inter-agency Council on Illegal Recruitment established under LOI 324. It shall provide the necessary personnel, facilities and support services to the campaign against illegal recruitment and shall coordinate activities for the council for such purpose.
RULE XIII : Foreign Exchange Remittance
SECTION 1. Coverage. — This Rule shall apply to every contract worker and seaman recruits. It shall also apply to licensed or authorized recruiters and/or their foreign principals or employers.
SECTION 2. Obligation to remit. — It shall be mandatory for a worker or seaman to remit regularly a portion of his foreign exchange earnings abroad to his beneficiary, through the Philippine banking system. This obligation shall be stipulated in the following documents:
a) Contract of employment and/or service between foreign based employer and a worker;
b) Affidavit of undertaking whereby a worker obligates himself to remit a portion of his earnings to his beneficiaries; and
c) Application for a license or authority to recruit workers.
SECTION 2-A. Obligation to Report. — Agencies and entities shall submit periodic reports to the Central Bank of the Philippines on their foreign exchange earnings, copies of which shall be furnished by the Administration.
SECTION 3. Amount of foreign exchange remittances. — The amount of foreign exchange remittance referred to in Section 2 hereof, shall be a minimum of 70% of the overseas workers basic salary in foreign exchange in the case of construction and sea-based workers; and a minimum of 50% in the case of other workers.
SECTION 4. Form of Remittance. — Remittance of foreign exchange may be done individually by a worker or collectively through an employer under a payroll deduction scheme, to be approved by the Bureau, NSB, OEDB as appropriate.
SECTION 5. Procedure of remittance. — (a) The workers, prior to departure, shall open a deposit account in favor of his beneficiary in any Philippine bank. A foreign currency account may also be opened by the worker.
The applicant shall inform the Bureau, the OEDB or NSB, as the case may be his deposit account number.
(b) In the case of seamen, construction workers and other organized work crews involving at least twenty-five (25) workers, the foreign currency/peso account shall be opened by the employer with any Philippine bank upon the signing of the employment contract. The account shall be accompanied by a covering letter of nomination of beneficiaries and the date of payment of the allotment to the beneficiary as may be stipulated by the employee and the licensed agency, manning agent or construction contractor.
(c) At the end of every period as may be stipulated in the notice as payment, the licensed agency, construction contractor or manning agent shall prepare a payroll sheet indicating the names of workers covered by the scheme, their beneficiaries, their individual bank account numbers, the amount of foreign currency remitted and the peso equivalent thereof. This payroll sheet, together with the peso check representing the remittances, shall be forwarded to the bank concerned with instruction to credit the account of the worker or beneficiaries. A copy of the payroll sheet shall be furnished to the Bureau, OEDB or NSB as the case may be, on a monthly basis.
SECTION 6. Permanent Secretariat. — A permanent inter-agency Secretariat in the Department of Labor and Employment to direct and monitor implementation of this Rule is hereby established. It shall have the power and duty to:
(a) Avail itself of the assistance of the agencies represented in the Foreign Exchange Remittance Committee created under Letter of Instruction No. 90 to enable it to effectively carry out its duties.
(b) Assist the committee in carrying out a continuing informational and educational campaign to promote foreign exchange remittance by workers.
(c) Establish and maintain an information monitoring system to determine periodically the status of remittances, particularly the number of remitters, amount and nature of remittances, amounts actually received by the beneficiaries, etc.
SECTION 7. Responsibility of employer or his representative. — The employer or his representative shall undertake the proper implementation of this Rule by providing facilities to effect the remittances and monitoring of foreign exchange earnings. Failure to do so shall be subject to appropriate sanctions specified in the Code and Central Bank regulations.
SECTION 8. Failure or refusal to remit and trafficking in foreign currency. — A worker who willfully fails or refuses to remit the assigned portion of his foreign exchange earnings or is found to be engaged or is engaging in the illegal traffic or blackmarket of foreign exchange shall be liable under this Code and existing Central Bank rules.
SECTION 2. Obligation to remit. — It shall be mandatory for a worker or seaman to remit regularly a portion of his foreign exchange earnings abroad to his beneficiary, through the Philippine banking system. This obligation shall be stipulated in the following documents:
a) Contract of employment and/or service between foreign based employer and a worker;
b) Affidavit of undertaking whereby a worker obligates himself to remit a portion of his earnings to his beneficiaries; and
c) Application for a license or authority to recruit workers.
SECTION 2-A. Obligation to Report. — Agencies and entities shall submit periodic reports to the Central Bank of the Philippines on their foreign exchange earnings, copies of which shall be furnished by the Administration.
SECTION 3. Amount of foreign exchange remittances. — The amount of foreign exchange remittance referred to in Section 2 hereof, shall be a minimum of 70% of the overseas workers basic salary in foreign exchange in the case of construction and sea-based workers; and a minimum of 50% in the case of other workers.
SECTION 4. Form of Remittance. — Remittance of foreign exchange may be done individually by a worker or collectively through an employer under a payroll deduction scheme, to be approved by the Bureau, NSB, OEDB as appropriate.
SECTION 5. Procedure of remittance. — (a) The workers, prior to departure, shall open a deposit account in favor of his beneficiary in any Philippine bank. A foreign currency account may also be opened by the worker.
The applicant shall inform the Bureau, the OEDB or NSB, as the case may be his deposit account number.
(b) In the case of seamen, construction workers and other organized work crews involving at least twenty-five (25) workers, the foreign currency/peso account shall be opened by the employer with any Philippine bank upon the signing of the employment contract. The account shall be accompanied by a covering letter of nomination of beneficiaries and the date of payment of the allotment to the beneficiary as may be stipulated by the employee and the licensed agency, manning agent or construction contractor.
(c) At the end of every period as may be stipulated in the notice as payment, the licensed agency, construction contractor or manning agent shall prepare a payroll sheet indicating the names of workers covered by the scheme, their beneficiaries, their individual bank account numbers, the amount of foreign currency remitted and the peso equivalent thereof. This payroll sheet, together with the peso check representing the remittances, shall be forwarded to the bank concerned with instruction to credit the account of the worker or beneficiaries. A copy of the payroll sheet shall be furnished to the Bureau, OEDB or NSB as the case may be, on a monthly basis.
SECTION 6. Permanent Secretariat. — A permanent inter-agency Secretariat in the Department of Labor and Employment to direct and monitor implementation of this Rule is hereby established. It shall have the power and duty to:
(a) Avail itself of the assistance of the agencies represented in the Foreign Exchange Remittance Committee created under Letter of Instruction No. 90 to enable it to effectively carry out its duties.
(b) Assist the committee in carrying out a continuing informational and educational campaign to promote foreign exchange remittance by workers.
(c) Establish and maintain an information monitoring system to determine periodically the status of remittances, particularly the number of remitters, amount and nature of remittances, amounts actually received by the beneficiaries, etc.
SECTION 7. Responsibility of employer or his representative. — The employer or his representative shall undertake the proper implementation of this Rule by providing facilities to effect the remittances and monitoring of foreign exchange earnings. Failure to do so shall be subject to appropriate sanctions specified in the Code and Central Bank regulations.
SECTION 8. Failure or refusal to remit and trafficking in foreign currency. — A worker who willfully fails or refuses to remit the assigned portion of his foreign exchange earnings or is found to be engaged or is engaging in the illegal traffic or blackmarket of foreign exchange shall be liable under this Code and existing Central Bank rules.
RULE XIV : Employment of Aliens
SECTION 1. Coverage. — This Rule shall apply to all aliens employed or seeking employment in the Philippines, and their present or prospective employers.
SECTION 2. Submission of list. — All employers employing foreign nationals, whether resident or non-resident shall submit a list of such nationals to the Bureau indicating their names, citizenship, foreign and local addresses; nature of employment and status of stay in the Philippines.
SECTION 3. Registration of resident aliens. — All employed resident aliens shall register with the Bureau under such guidelines as may be issued by it.
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.
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.
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 non-availability 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.
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.
SECTION 8. Advice to Commission on Immigration and Deportation. — The Bureau shall advice the Commission on Immigration and Deportation on the issuance of an employment permit to an applicant.
SECTION 9. Understudy Training Program. — The employer shall submit a training program for his understudies to the Bureau within thirty (30) days upon arrival of the alien workers. The supervision of the training program shall be the responsibility of the Bureau and shall be in accordance with standards established by the Secretary of Labor and Employment.
SECTION 2. Submission of list. — All employers employing foreign nationals, whether resident or non-resident shall submit a list of such nationals to the Bureau indicating their names, citizenship, foreign and local addresses; nature of employment and status of stay in the Philippines.
SECTION 3. Registration of resident aliens. — All employed resident aliens shall register with the Bureau under such guidelines as may be issued by it.
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.
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.
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 non-availability 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.
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.
SECTION 8. Advice to Commission on Immigration and Deportation. — The Bureau shall advice the Commission on Immigration and Deportation on the issuance of an employment permit to an applicant.
SECTION 9. Understudy Training Program. — The employer shall submit a training program for his understudies to the Bureau within thirty (30) days upon arrival of the alien workers. The supervision of the training program shall be the responsibility of the Bureau and shall be in accordance with standards established by the Secretary of Labor and Employment.
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