Omnibus Rules Implementing the Labor Code

Law Summary

Definitions and Scope of Pre-Employment Terms

Bureau: Bureau of Employment Services.
NSB: National Seamen Board.
OEDB: Overseas Employment Development Board (now abolished).
Private recruitment entity vs. private employment agency distinctions, including fee-charging practices.
Authority and License: Documents issued by the Secretary authorizing recruitment activities.
Employment Permit: Authorization for aliens to work in the Philippines, with stipulations for understudy programs.
Definitions include contract workers, beneficiaries, mobilization fees, service fees, and terms concerning foreign exchange earnings and remittances.

Employment Promotion Powers and Functions

Secretary may organize employment offices and systems for job information locally and overseas.
Public employment offices provide free placement services.
Vocational guidance, occupational classification, and inter-area placement are mandated.
Monthly reporting by employers on vacancies, hires, terminations, and assistance requests is required.

Recruitment and Placement Regulations

Only specified government offices and licensed private entities may engage in recruitment and placement.
Direct hiring for overseas employment is generally prohibited, except specific exemptions.
Private sector participation is limited to Filipino-controlled entities with minimum capitalization requirements.

Licensing and Operation of Private Employment Agencies

Applicants must meet citizenship and capitalization criteria.
Application requires documentation, competence assurance, and assumption of responsibilities.
License fees, cash bonds, and surety bonds are required.
Licenses are valid for one year, non-transferable, and subject to conditions on ownership changes and operational conduct.
Renewal requires submission of reports and financial statements; failure to replenish bonds may lead to suspension or cancellation.

Recruitment Procedures and Contract Requirements

Prior to recruitment, agencies must submit authenticated contracts and documents for evaluation.
Master employment contracts must meet minimum labor and social standards, including wages, benefits, and remittance provisions.
Placement and refund policies are defined for delayed deployment or voluntary withdrawal.
Placement fees charged to workers and mobilization/service fees charged to employers are regulated with receipts required.

Advertising and Recruitment Compliance

Recruitment advertisements require prior authorization and must contain specific information.
False or deceptive advertising is sanctionable.
Agencies may recruit from the Administration’s manpower registry under guidelines.

Oversight on Local Recruitment and Placement

Separate licensing requirements with fees and bond posting apply to local recruitment.
Registration of educational and civic recruitment entities is required.
Employers entitled to replacement without costs within one month under specified grounds.

Grounds and Procedures for License Suspension or Cancellation

Violations include overcharging, misrepresentation, obstruction, deployment errors, and non-compliance with laws.
Complaints are investigated by the Bureau; non-response may result in suspension.
Orders of suspension or cancellation are issued by the Secretary or Administrator; appeals and motions for reconsideration are allowed but do not stay enforcement unless bond is posted.
Inspection and monitoring systems are established for compliance enforcement.

Regulation of Overseas Construction Industry and Corporate Export Program

Filipino construction contractors must register as private recruitment entities.
Programs for organized hiring and deployment shall be developed in coordination with relevant agencies.

Oversight of Private Recruitment Entities

Defined citizenship and capitalization criteria for applicants.
Authority granted after submission of required documents and approval process.
Fees and bonds for compliance and liability assurance required.
Recruitment, placements, and endorsements must follow regulatory standards.

Functions of the Overseas Employment Development Board (OEDB) (Abolished)

Provided government placement services and wage standard development for overseas employment.
Conducted employment promotion, medical requirements, documentation, and dispute settlement.
Managed welfare and foreign exchange remittance compliance.

National Seamen Board (NSB) Oversight

Exclusive recruitment channel for Filipino seamen working overseas.
Agents must comply with registration and contract submission requirements.
Possesses exclusive jurisdiction over disputes involving Filipino seamen.
Collects fees from employers, prohibits charging fees from seamen.

Adjudication of Land-Based Overseas Contract Worker Disputes

Regional Offices have exclusive jurisdiction over complaints except those processed by OEDB.
Complaints may be filed by workers, beneficiaries, or employers.
Initial conciliation required before arbitration or adjudication.

Illegal Recruitment Provisions

Secretary may recommend arrest upon preliminary individualized examination supporting probable cause.
Bureau acts as secretariat of inter-agency council combating illegal recruitment.

Foreign Exchange Remittance Rules

Mandatory regular remittance of a portion of earnings by overseas workers to beneficiaries through the formal banking system.
Minimum remittance rates defined: 70% for sea-based and construction workers, 50% for others.
Establishment of deposit accounts before departure and payroll remittance schemes for groups.
Monitoring and educational campaign by an inter-agency Secretariat.

Employment of Aliens

Employment permits required before aliens may work in the Philippines.
Application requires proof of high technical skills, undertakings for understudy training, and contract of employment conditions.
Validity of permits set for minimum of one year, subject to renewal and cancellation.

National Manpower Development Program (NMDP)

Council organized to plan, develop and coordinate human resources and training programs nationally and regionally.
Defines types of training including vocational, entrepreneurship, and apprenticeship programs.
Establishes national skills standards and administers training assistance and evaluations.

Apprenticeship and Learnership

Apprenticeship aimed at on-the-job and theoretical skill development with standardized terms and conditions.
Learnership permits trainees for up to 3 months in non-apprenticeable occupations.
Set qualifications and protections for apprentices and learners including wage minimums and termination procedures.

Employment Conditions—Hours of Work

Applies to all except specifically exempt employees such as government and managerial employees.
Work exceeding eight hours daily requires overtime pay with specified premiums.
Rest periods and meal breaks standards established, noting exceptions for shorter meal breaks under certain conditions.

Hours of Work for Hospital and Clinic Personnel

Special provisions for hospitals and clinics related to bed capacity and location.
Defines regular working hours and days with overtime compensation requirements.

Night Shift Differential

Ten percent (10%) night differential pay for work between 10 pm and 6 am, with additional premiums for overtime and holiday work.

Weekly Rest Periods

Employees entitled to at least 24 consecutive hours rest after six normal workdays.
Employer may schedule rest days, respecting religious preferences when feasible.
Additional pay for work on rest days and holidays mandated.

Holidays With Pay

Coverage excludes government employees, small establishments, domestic helpers, managerial employees, and certain others.
Employees working on regular holidays entitled to 200% of regular wage for up to eight hours.
Overtime premiums for holiday work beyond eight hours.
Specific provisions for private school teachers and workers paid by results.

Service Incentive Leave

Employees with at least one year of service are entitled to five days paid service incentive leave annually.
Leave is commutable to cash if unused.

Service Charges

Applicable to establishments collecting service charges (e.g., hotels, restaurants).
85% of collected service charges distributed equally to employees; 15% retained by management.
Distribution at least twice a month, with provisions on integration of abolished service charges into wages.

Wages

Establishes terms and definitions related to wages, including minimum wage definitions and distinctions.
Increases national and regional wage rates with exemptions for certain small or new enterprises.
Details calculations for monthly wage equivalents and criteria for wage fixing.
Enforcement mechanisms including inspections and penalties for violations.

Payment of Wages

Wages to be paid in legal tender, prohibiting tokens or promissory notes.
Payment by check allowed under specific conditions with employee consent.
Payment intervals not exceeding sixteen days, with provisions for wage payments during force majeure.
Prohibits payment in bars, clubs, or gambling establishments except for employees thereof.
Employers jointly liable with contractors for unpaid wages.
Allows job contracting under fact-specific conditions; prohibits labor-only contracting.

Adjudicatory Powers

Regional Directors and Hearing Officers empowered to decide money claims up to P5,000 via summary proceedings.
Appeal paths established to National Labor Relations Commission.
Provisions for deposit and use of recovered sums.

Employment of Women and Minors

Covers all employers except government and employers of household helpers.
Allows employment of children 15 years and above in non-hazardous work; maternity leave and benefits provided.
Special provisions for night work of women and family planning services for large employers.

Employment of Househe