QuestionsQuestions (OMNIBUS RULES IMPLEMENTING THE LABOR CODE)
It is a rule of construction that, when the meaning of the Omnibus Rules is ambiguous, the interpretation that better protects workers/labor must be adopted over the interpretation that favors employers or recruiters.
"Private recruitment entity" engages in recruitment/placement without charging any fee against the worker. "Private employment agency" charges a fee directly against the workers or the employers, or both.
It includes canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referrals, contract services, promising or advertising employment locally or abroad, whether for profit or not. Offering or promising employment for a fee to two or more persons is deemed recruitment and placement.
Recruitment and placement may be done only by: public employment offices, Overseas Employment Development Board, National Seamen Board, private recruitment offices/entities, private employment agencies, shipping/manning agents or representatives, and other persons/entities authorized by the Secretary; additionally, only specific private sector participants (private employment agencies, private recruitment entities, shipping/manning agents/representatives, and authorized entities) may participate under Rule IV.
No employer may hire a Filipino worker for overseas employment except through those enumerated in Rule III (or as authorized by law or by the Secretary). Exemptions include direct hiring by members of the diplomatic service, officials and employees of international organizations, and other employers authorized by the Secretary; such hiring is processed by the Overseas Employment Development Board.
Only Filipino citizens or corporations/partnerships/entities at least 75% of their authorized and voting capital stock owned and controlled by Filipino citizens may participate.
A minimum net worth of P150,000 (single proprietorship) and paid-up capital or net worth of P150,000 (corporation or partnership).
Among others: certified copy of Articles/registration; proof of financial capacity (for corporations) via sworn assets statements and verified income tax returns for last two years; clearances from relevant agencies for incorporators/partners/single proprietor; verified statement of adequate competent staff; verified undertaking to assume responsibilities; and other requirements the Secretary may require.
Within thirty (30) days from receipt of the application for license, the Bureau shall recommend denial or approval to the Secretary.
License fee of P6,000; post a cash bond of P50,000 (or negotiate equivalent bonds convertible to cash) plus a surety bond of P150,000 to answer for valid and legal claims arising from violations and to guarantee compliance.
Valid for one year from date of approval unless sooner cancelled, revoked or suspended by the Secretary for violation of conditions of the license or applicable provisions of the Code and Rules.
Transfer or change of ownership causes automatic revocation of the license/authority. The new owner must apply for a new license/authority.
No. It must secure prior authority from the Administration before conducting recruitment activities outside the address stated.
The agency must submit: (1) formal appointment or agency contract with the foreign-based employer duly authenticated/attested, including specified provisions; (2) commercial registration and documents proving legal personality/authority to hire; (3) job order/requisition and master employment contract plus salary/benefit and qualification/testing guidelines; and (4) required work permits or visas where required.
Contracts cannot provide less than Department standards and must include guaranteed wages for regular hours and overtime pay; free transportation (hire to site and return) including travel documentation expenses; adequate board and lodging; free emergency medical/dental; just causes for termination; workmen’s compensation and war hazard protection (including life/accident insurance); prompt transportation of remains and property upon death; and remittance of salaries/allowances/allotments through the Philippine banking system.
Placement fees may be collected in accordance with an approved schedule, but only when the employment contract is approved by the Bureau and the worker is about to commence employment through the agency. All payments must be covered by proper receipts.
No other fees or charges shall be imposed against any worker (with limited exceptions in the rules, such as certain costs like medical/psychological exam, inoculation certificate, and passport if required and unless paid by the principal/employer). Processing fees and Welfare Fund contributions cannot be charged to the worker.
Examples include: charging/exacting money beyond prescribed limits; misrepresentation via false deceptive advertisements or false statements/documents; obstructing inspection; substituting or altering approved employment contracts without Administration approval; failure to file required reports on remittance of foreign exchange earnings; recruiting in places other than those specified without authorization; withholding travel/documents for monetary considerations; failure to deploy without valid reasons; withholding workers’ salaries/remittances; falsifying documents; deploying to vessels/principals not accredited; and disregard of lawful orders/summons.
The Bureau investigates after receiving a complaint; it requires comments/explanation within five (5) working days upon receipt of the order/notice. The respondent must file an answer within ten (10) working days from receipt of the copy of the complaint and supporting documents. The Hearing Officer schedules the hearing within five (5) days from receipt of the last responsive pleading if prima facie case exists.