Title
Tax on Labor Recruiters and Contracting Laws
Law
Act No. 2486
Decision Date
Feb 5, 1915
A Philippine law requires individuals or entities engaged in labor recruitment or contracting to pay an annual tax, provide free return passage for laborers, obtain a license, appoint commissioners for laborer protection, and comply with labor contract regulations, with penalties for violations.
A

Obligation to Provide Return Passage to Laborers

  • Companies or entities engaged in labor contracting must provide free passage back to the Philippines for laborers upon contract expiration.
  • This obligation applies if laborers complied with contract terms or have become physically unfit for work.

Licensing Requirement for Labor Contractors

  • Labor contractors must obtain an annual license from the Director of the Bureau of Labor, approved by the Secretary of Commerce and Police.
  • License specifies the province(s) where the labor contracting activity will be conducted.
  • License fee set at six thousand pesos annually, payable to the Insular Treasury.

Appointment and Duties of Overseas Commissioner(s)

  • Governor-General appoints commissioner(s) with Commission’s consent for service outside the Philippines.
  • Commissioners receive and hear complaints of Filipino laborers abroad, mediate disputes, ensure contract compliance, and protect laborers’ interests.
  • Must submit reports on laborers’ conditions to the Governor-General.
  • Compensation and expenses capped at six thousand pesos annually.

Supervision of Labor Contracts and Protection of Minors

  • Director of Labor supervises all labor contracts.
  • Prohibition on contracting minors below 15 years.
  • Minors aged 15 to 18 require written parental or guardian consent for contracting.

Penalties for Violations

  • Violators subject to a fine not exceeding two thousand pesos, imprisonment up to two years, or both, as decided by the court.

Amendment to Act No. 2339 on Customhouse Brokers

  • Subsection (a) of Section 53 of Act No. 2339 amended to impose an eighty peso fee on customhouse brokers.

Effectivity Clause

  • The Act takes effect thirty days after its passage.

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