Law Summary
Definitions
- "Person": includes individuals, corporations, companies, associations.
- "Agency" or "employment agent": procures or offers to procure employment or employees for monetary consideration.
- "License" or "license certificate": official authorization to operate as an employment agency.
- "Fees": any form of remuneration or compensation charged by employment agencies.
- "Applicant for employment": person seeking employment.
- "Applicant for employee": person seeking employees.
- "Licensee": a licensed employment agency or agent.
Licensing Requirement (Sec. 3)
- No one shall establish or operate an employment agency or act as an agent without a license from the Director of Labor, approved by the Secretary.
Application for License (Secs. 4–6)
- Must be written, sworn, and detail:
- Full name, age, civil status, and address of the applicant(s).
- Names and details of recruiters or agents to be employed.
- For corporations or partnerships, names of officers or members.
- Must be accompanied by payment of tax and a bond between ₱3,000 and ₱10,000.
- Bond conditioned on compliance and payment of penalties or damages.
- Public notice of application must be posted and objections heard with due process.
License Fees and Registration (Sec. 7)
- Fees vary by location:
- ₱100 annually for Manila.
- ₱50 annually for provinces.
- Additional ₱1,500 to ₱2,500 if agency deals with foreign placements.
- ₱25 annual payment to local treasurer.
- ₱1 per appointment issued to recruiters or agents.
- Monies collected (excluding local treasurer) go to the Insular Treasury.
License Validity and Restrictions (Sec. 9)
- Valid from issuance until December 31 of the year issued.
- Valid only within the specified province(s).
- Non-transferable and must be displayed prominently.
- Appointments must be presented upon request by authority or interested parties.
Prohibited Locations and Barracks (Sec. 10)
- Employment agencies cannot be established in hotels, boarding houses, or premises selling intoxicating beverages.
- Barracks for applicants may be established with Director of Labor's approval.
Contract Requirements (Sec. 11)
- Contracts between agency and applicant must be:
- Written in a language understood by the applicant.
- Executed before a clerk of court or justice of the peace for validation.
- Official must ensure the applicant understands terms and fees.
- Failure to comply may result in reprimand or removal from office.
Record-Keeping (Secs. 12–13)
- Licensees must keep two approved registers:
- One for applicants for employment (details of applicant, fees, employment secured).
- One for applicants for employees (details of request, fees, and outcomes).
- Registers open for inspection by authorities during office hours.
Fee Table and Transparency (Secs. 14–16)
- Licensee must post license and fee schedule in English, Spanish, and local dialect.
- Fee schedule:
- Fees shall not exceed 20% of wages for the first year.
- Fees payable only after employment and during first month.
- Refund of 75% if no placement within 15 days.
- Replacement or partial refund if employee leaves prematurely.
- Receipts must contain the fee notice on their reverse side.
Prohibited Practices (Secs. 17, 20)
- No fee division with contractors or employers.
- Forbidden to:
- Charge fees above the legal limit.
- Provide false or deceptive information.
- Induce employed persons to quit for re-placement.
- Influence denial of employment to non-applicants.
- Employ minors without parental/guardian consent.
- Send women to places of ill fame or expose to corruption.
Supervision and Inspection (Sec. 18)
- Director of Labor authorized to regulate and inspect agencies, offices, barracks, and records.
Exemptions (Sec. 19)
- Plantation, estate, or factory owners recruiting laborers for their own operations are exempt, provided they furnish the Bureau of Labor the list of their recruiters.
Penalties (Sec. 21–22)
- Violations punished by:
- Fine: ₱25 to ₱200.
- Imprisonment: 1 to 6 months.
- Both, at court discretion.
- Severe penalty (6 months to 6 years) for sending women to ill-fame houses or exposure to corruption.
- License cancellation and permanent disqualification possible.
- Corporate officers criminally liable for violations committed by their firms.
Miscellaneous Provisions (Secs. 23–25)
- Does not repeal or amend other relevant laws regarding foreign recruitment.
- Director of Labor empowered to prescribe regulations and forms subject to department head approval.
- Law took effect January 1, 1933.