Law Summary
Coverage
- Applies to all individuals, partnerships, or corporations recruiting locally through agencies.
- Covers recruitment via electronic means.
- Separate provisions govern local domestic worker recruitment (Republic Act No. 10361).
Definition of Terms
- Key terms defined include Bureau, Department, Secretary, Regional Office/Director, Field Office.
- "Private employment agency" means entities licensed by DOLE for local recruitment.
- Defines License, Authority to recruit, Representative, Domestic Worker (Kasambahay), Service contracts, Service fees, Deployment expenses.
- Employer defined as party engaging workers via agency or directly for domestic workers.
Qualifications for License
- Applicant must be Filipino owned (single proprietorship or 75% Filipino owned).
- Minimum net worth or paid-up capital of ₱1,000,000.
- Must not be disqualified by law to engage in recruitment business.
Grounds for Disqualification
- Conviction of illegal recruitment, trafficking, or crimes involving moral turpitude.
- Agencies with revoked licenses.
- Cooperatives and certain DOLE officials disallowed.
- Sole proprietors barred from multiple licenses and from job contracting.
Application Requirements
- Accomplished application, ₱5,000 filing fee.
- Business registration from DTI or SEC depending on entity type.
- Proof of office space (≥50 sqm), One-year lease contract if applicable.
- NBI clearance for owners/officers.
- Affidavit of undertaking against illegal recruitment and other violations.
- Designation of office staff knowledgeable in recruitment documentation.
- Attendance certificate from pre-application seminar.
Pre-Application Seminar
- Mandatory attendance by agency top management.
- Covers rules, anti-trafficking, anti-child labor, illegal recruitment, penalties.
- Seminar module formulated by the Bureau.
Filing and Processing
- Application filed at Regional/Field Office where office will be established.
- Must include complete documents; incomplete applications are rejected.
- Filing fee is non-refundable.
- Regional Director evaluates and inspects within 10 calendar days.
Bonding and License Fee
- Upon approval, payment of ₱15,000 license fee.
- Posting of ₱50,000 cash bond and ₱100,000 surety bond guaranteeing compliance and claims.
License Validity and Renewal
- License valid for 3 years unless revoked/cancelled.
- Renewal application to be filed 30-60 days before expiration.
- Requirements similar to initial application plus placement reports.
- Late filing subject to penalties.
Display and Non-transferability
- Agency must display original license and organizational structure with photos.
- License or recruitment authority is non-transferable.
Change of Ownership and Personnel
- Ownership transfer requires surrender of existing license and new application.
- Change in board of directors triggers license revocation.
- Officer changes must be reported within 5 days with required documentation.
Change of Address
- Advance 15-day notice required.
- Transfer across regions requires clearances, inspections, and public notification.
Authority to Recruit
- May be issued separately or together with license; valid nationwide.
- Requires letter request, certified agreements, NBI clearance, and seminar attendance.
- Processed within 2 days; registration fee ₱2,000 upon approval.
Authority to Recruit Renewal
- Apply 5-60 days before expiration with supporting documents.
- Late filing penalized.
Termination and Revocation
- Authority revoked upon cancellation order or issuance of another agency's authority.
- Public notice of revoked authorities required.
Branch Offices
- Require separate authorization with ₱2,000 filing fee.
- Must submit organizational structure, NBI clearances, office lease or ownership proof.
- Evaluation and inspection completed within 5 days.
- Additional ₱100,000 surety bond and ₱5,000 registration fee required.
- Validity co-terminus with main license; specific renewal rules apply.
Grounds for Denial
- Non-compliance with requirements.
- Pending related legal cases.
- Conviction involving illegal recruitment, trafficking, child labor violations.
- Previous revocation of license or authority.
Appeals
- Denials can be appealed to the Secretary within 10 days.
- Secretary resolves within 10 days; one motion for reconsideration possible.
Registration of Educational Institutions
- Educational institutions conducting placement services must register and coordinate with PESO.
Loss of License or Authority
- Requires affidavit of loss and ₱1,000 replacement fee.
- Certified copy issued upon approval.
Fees and Charges
- Agencies cannot collect/deduct any fees from workers.
- Service fee only charged to employers by agreement.
- Transportation for worker transfer is employer’s responsibility.
Official Receipts
- All payments must be documented with official receipts stating amount and purpose.
Worker Replacement and Refund
- Employers entitled to replacement or 75% refund of service fee if:
- Worker medically certified ill within 1 month.
- Worker abandons or behaves prejudicially within 3 months.
- Refund conditions and forfeiture timelines specified.
Recruitment Procedures
- Agencies must present valid license, recruitment authority, and notarized job order.
- Recruits must submit biodata, birth certificate, medical and barangay clearance.
- Interview conducted, recruitment contracts notarized and filed.
- Pre-departure orientation coordinated with PESO or accredited bodies.
Placement Procedures
- Free housing accommodation provided upon arrival.
- Arrange employer interview within 3 days.
- Prepare written employment contract including standard terms.
- Provide Pre-Employment Orientation covering rights/responsibilities.
- For domestic workers, require employer clearance from Barangay and NBI/PNP.
- Inform family of recruit’s employer info; register domestic worker with Barangay.
Illegal Recruitment Defined
- Canvassing, hiring by non-licensees or unauthorized persons for two or more persons.
- Prohibited acts include charging workers, false information, misrepresentation, inducing quitting, obstructing inspection, contract substitution.
Anti-Illegal Recruitment Programs
- Legal assistance, prosecution support, surveillance, and education campaigns.
- Inter-agency coordination encouraged.
Legal Assistance
- Free legal aid for victims including advice, complaint preparation, counseling.
Complaints Filing
- Victims or guardians may file sworn complaints at Regional/Field Offices where offense occurred.
Surveillance and Enforcement
- Regional Directors may conduct inspections and surveillance.
- Closure orders issued if danger or exploitation confirmed.
Cease and Desist Orders
- Issued when non-licensed recruitment activity endangers the public.
- Local government recommended to revoke business permits.
Execution of Orders
- Enforced by DOLE Sheriff with law enforcement assistance.
- Execution reports submitted within 24 hours.
Criminal Action
- Regional Director or aggrieved persons may file cases with prosecutors.
Offense Classification and Penalties
- Serious offenses include illegal recruitment, misrepresentation, operation despite suspension, etc., punishable with license cancellation.
- Less serious offenses penalized by suspension escalating to cancellation for repeated offenses.
- Fines of ₱10,000 per offense imposed with suspensions.
- Multiple complainants (5 or more) lead to license cancellation.
Complaint Procedures
- Complaints must be sworn and detail respondent, acts, place/date, claim, and relief.
- Respondent given 10 days to file verified answer.
- Failure to answer is waiver; case resolved based on available pleadings.
- Withdrawal of complaints does not stop investigation.
- Parties may compromise subject to approval.
Case Resolution
- Hearings completed within 30 working days; decision within 10 working days.
- Case deemed submitted when evidence sufficient.
Suspension Pending Investigation
- Grounds include risk of exploitation, non-response, failure to attend hearings.
Appeal and Reconsideration
- Regional Director's orders appealable to Secretary within 10 days.
- Secretary’s decision final unless reconsideration filed within 10 days.
- No second reconsideration allowed.
Agency Closure and Bond Refund
- Agency ceasing operations must notify Regional Office stating reasons.
- Cash bond refundable after posting a surety bond valid 3 years or after case resolution.
Inspections
- DOLE authorized representatives may inspect agency premises anytime.
Registration in Phil-Jobnet and Reporting
- Agencies must register within 5 days of license issuance.
- Monthly job vacancy reports due within 15 days after the reference month.
Rewards and Incentives
- Agencies complying fully with laws may receive rewards.
- DOLE to set guidelines.
Separability and Repealing Clauses
- Invalid provisions do not affect the rest of the rules.
- Previous inconsistent rules repealed or modified.
Effectivity
- Rules effective 15 days after publication in two newspapers of general circulation.