QuestionsQuestions (Act No. 3957)
The short title is the “Private Employment Agency Law.” It regulates the activities of private employment agencies, provides requirements for licensing, and penalizes violations.
It refers to any office or person who for monetary consideration procures, looks for, offers, or promises to procure employment/positions or contracts for employment, or procures employees/laborers/servants for another, including associations/firms that procure work for members or others, except as provided in the Act.
A document issued by competent authority allowing the person to establish, direct, or manage an employment agency/business, to have an employment office, and to procure/look for or furnish employment/positions or contracts for employment and related personnel.
The application must be in writing and include: full name, age, civil status, residence (street and house number), names of recruiter/agents to be employed for outside activities, whether applicant is the only interested person or others (with their details), and the place/address of the agency. For corporations/registered companies/partnerships: names/addresses of specified corporate officers or partnership members, and appropriate sworn/subscribed execution and attestation.
It must be accompanied by: (1) the necessary sum to pay the tax for the license period (refundable if denied), and (2) a bond subscribed by the applicant with two or more solvent sureties or a reputable fidelity bond company, with penal sum between PHP 3,000 and PHP 10,000, conditioned on strict compliance with the Act and other regulations, payment of penalties, and damages adjudged by a competent court.
After filing, the applicant must post notice publicly. Any person may object in writing with just and reasonable grounds. If an objection is received, the Director of Labor sets a hearing (date, hour, place) and may issue subpoenas and subpoenas duces tecum, administer oaths, and take affidavits for purposes of the hearing/investigation.
If in City of Manila: PHP 100 per annum; if in a province: PHP 50 per annum. If also for procuring/furnishing for foreign countries (under the Act’s reference): PHP 1,500 if in provinces and PHP 2,500 if in Manila. Plus an additional PHP 25 annually to the treasurer of Manila/province.
It takes effect on the first day of the month it is issued and expires on December 31 of that year. Renewal requires a new application. It is valid only in the province/provinces specified in the license and cannot be used outside the stated place or transferred/assigned.
No agency may be established in a hotel or boarding house or building where liquors or intoxicating beverages are sold.
The contract must be written in a language/dialect known to the applicant and executed before a clerk of Court of First Instance or justice of the peace, who must not charge a fee. The officer must explain the scope/effects, verify correctness of fees/debts/obligations, and sign certifying compliance.
Register for applicants for employment: language, date of application, name/address of applicant promised employment, fees received, employment secured, and—when possible—known persons acquainted with the applicant. Separate register for applicants for employees: official language, name/address, date, kind of employee requested, names of persons sent, whether employed, and sum received as fees.
The license must be displayed conspicuously in the agency. A printed table of fees (with Director of Labor approval) must be posted, in specified languages and font size/size, and must include the required notice on fee limitations and refunds. Receipts issued to applicants must have the Section 15 notice printed on the back.
Fees collected from an applicant for employment/position/work shall not exceed 20% of his wages during the first year. The fees are collected only when the applicant secured the employment and received wages for the first month, payable in monthly installments of 20% of monthly wages until fully paid.
Seventy-five percent of money paid by an applicant for employees is refunded if not accommodated within 15 days after acceptance. If the employee leaves before serving at least one month without being dismissed, the agent must replace within 15 days or refund 75% of fees received.
Examples include: charging/accepting more than the schedule of fees or making an employee pay an imaginary debt; giving knowingly false notices or deceiving applicants with false information; inducing an already employed person to quit to offer him to another; attempting to influence an employer not to admit workers not applied through the agency; assisting admission of a minor without written consent; sending a woman to a house of ill fame or exposing her to corruption.