Lifting Ban on Licenses for Overseas Recruitment Agencies

Article 25 of the Labor Code of the Philippines, as amended recognizes the continued participation of the private employment sector in recruitment and placement of workers locally and overseas under guidelines issued by the Secretary of Labor and Employment.
Letter of Instruction No. 1190 (January 20, 1982) previously banned the issuance of licenses to operate private employment agencies engaged in recruitment and placement of Filipino workers for overseas employment.
Executive Order No. 450 lifts the ban on new applications for licenses to operate private recruitment agencies engaged in overseas recruitment and placement.

Executive Order No. 450 is grounded on the need to prevent the proliferation of recruitment agencies and cut-throat competition that can lead to prohibited and exploitative practices.
Executive Order No. 450 adopts the policy that overseas employment operations should be managed through an integrated administrative framework created for overseas employment, including the Philippine Overseas Employment Administration (POEA).
Executive Order No. 450 requires that the operations of licensed agencies be placed under strict supervision and regulation by the Department of Labor and Employment.
Executive Order No. 450 aims to take advantage of new overseas markets with increasing demand for Filipino manpower under competitive employment terms and conditions.

Executive Order No. 450 directs the immediate lifting of the ban on new applications for licenses to operate private recruitment agencies engaged in recruitment and placement of Filipino workers for overseas employment.
Executive Order No. 450 allows entry of innovative and dynamic participants to revitalize existing overseas employment markets and respond to emerging market challenges.
Executive Order No. 450 provides that licensed agencies’ efforts will aggressively channel much-needed foreign exchange.

Executive Order No. 450 makes the lifting of the ban subject to guidelines, rules, and regulations to be promulgated by the Secretary of Labor and Employment.
Executive Order No. 450 preserves the role of the Secretary of Labor and Employment in issuing the governing guidelines under the Labor Code framework for private recruitment and placement operations.

Executive Order No. 450 is issued by the President of the Philippines exercising powers vested by law.
Executive Order No. 450 directs compliance with such guidelines, rules, and regulations as the Secretary of Labor and Employment will promulgate to govern the newly allowed licensing applications.