Rules on Local Recruitment and Placement

Legal basis, policy, and compliance duties

The order is issued pursuant to Articles 5, 13, and 25 to 39 of the Labor Code, as amended, governing recruitment and placement.
The policy is to recognize the private sector’s participation in recruitment and placement for local employment while promoting equality of employment opportunity and treatment (Section 1).
The policy is to promote employment creation under the decent work agenda (Section 1).
The order requires compliance with the Labor Code, the Anti-Trafficking in Persons Act of 2003, the Anti-Child Labor Laws, and other related laws, rules, and regulations (Section 1).
The order protects jobseekers by ensuring the best possible terms and conditions of employment and cooperative welfare efforts with government agencies and duly registered NGOs (Section 1).

Coverage and key definitions

These rules apply to every person, partnership, or corporation intending to engage in recruitment and placement for local employment through an agency (Section 2(a)).
Persons, partnerships, or corporations in the Philippines intending to recruit and place through the electronic medium are covered by the applicable provisions of these rules (Section 2(a)).
Recruitment and placement of domestic workers within local employment are governed by Republic Act No. 10361 (Section 2(b)).
“Private employment agency or agency” means any person, partnership, or corporation engaged in recruitment and placement for local employment, including entities licensed by DOLE to recruit and place Kasambahay for local employment (Section 3(a)).
“License” means a document issued by the Secretary through the Regional Director authorizing operation (Section 3(a)).
“Authority to recruit” means a document issued by the Secretary through the Regional Director authorizing recruitment activities for local employment on behalf of a private employment agency (Section 3(a)).
“Non-licensee or non-holder of authority” refers to persons/entities without a license or whose authority to recruit has been revoked or cancelled (Section 3(a)).
“Recruit” refers to any Filipino individual promised, contracted, or enlisted for employment (Section 3(a)).
“Recruitment contract” is the agreement between the agency (or representative) and the recruit stating terms and conditions of recruitment in a language known and understood by the recruit (Section 3(a)).
“Employment contract” is the written agreement between the employer and the worker stating employment terms and conditions in a language known and understood by the worker (Section 3(a)).
“Service contract” is the agreement between the employer and the private employment agency stating service terms and conditions (Section 3(a)).
“Service fee” is the amount charged by the agency to a local employer for actual services rendered in relation to recruitment and placement (Section 3(a)).
“Deployment expenses” for Kasambahay covers transportation, meals, communication expense, and other incidental expenses; advances or loans by the Kasambahay are not included (Section 3(a)).
“Employer” means the person/entity engaging the worker through the agency and party to the employment contract; it also includes the person who engages and controls the Kasambahay’s services and is party to the employment contract (Section 3(a)).
“PESO” is a non-fee charging multi-employment service facility or entity established, recognized, or accredited pursuant to Republic Act No. 8759 (Section 3(a)).
“Domestic worker or Kasambahay” covers domestic work in an employment relationship (live-in or live-out) and includes general househelp, yaya, cook, gardener, or laundry person; it excludes service providers, family drivers, children under foster family arrangement, and persons performing domestic work only occasionally or sporadically and not on occupational basis (Section 3(a)).

Licensing, authority to recruit, and branch operations

To obtain a license to operate a private employment agency, the applicant must be a Filipino citizen (single proprietorship) or have seventy five percent (75%) of authorized capital stock owned and controlled by Filipino citizens (partnership/corporation), must meet minimum capitalization requirements, and must not be disqualified by law (Section 4).
The required minimum capitalization is P1,000,000.00 minimum net worth for single proprietorship and P1,000,000.00 minimum paid-up capital for partnership/corporation (Section 4).
The following entities and persons are disqualified from recruitment and placement business: those convicted of illegal recruitment, trafficking in persons, anti-child labor violation, or crimes involving moral turpitude; those with probable cause or prima facie finding of guilt for illegal recruitment or related cases (especially agency owners/directors); agencies whose licenses were previously revoked/cancelled under Section 54 of these rules; cooperatives registered or not under the Cooperative Act of the Philippines; law enforcers and DOLE officials/employees; and sole proprietors of duly licensed agencies securing another license (Section 5).
Sole proprietors are prohibited from securing another license to engage in recruitment and placement, and licensed sole proprietors/partnerships/corporations are prohibited from engaging in job contracting or sub-contracting activities (Section 5).
Applicants must submit a duly accomplished application form with: filing fee of P5,000.00; business registration documents (DTI for single proprietorship; SEC Articles of Partnership/Incorporation for partnerships/corporations); proof of office ownership/lease for exclusive use with at least fifty (50) square meters floor area; lease contract for one (1) year with option for renewal (if leased); NBI clearances; and an affidavit of undertaking with specific commitments (Section 6).
The affidavit undertaking must include commitments including: no acts involving illegal recruitment/trafficking/anti-child labor violations/moral turpitude; adherence to DOLE Standard Recruitment; no collection of any fees from applicants; full responsibility for acts of officers/employees/representatives; designation of an Office Manager and Office Secretary or Clerk knowledgeable in document preparation/review; and a list of representatives at least college level and/or with relevant training/experience, plus participation/attendance certificate to a pre-application seminar (Section 6).
An agency licensed to recruit and place for overseas employment intending to do local recruitment must apply for a separate license (Section 6).
The owner, partners, president, general managers, or agency management representative must attend a pre-application seminar conducted by Regional/Field Offices prior to filing (Section 7).
The Bureau must formulate the module for the pre-application seminar (Section 7).
The license application must be filed with the Regional/Field Office having jurisdiction over the place where the agency intends to establish its office (Section 8).
Incomplete documents bar acceptance: incomplete applications must not be received/accepted (Sections 8 and 10).
Upon receipt of a complete application and proof of filing fee payment, the filing fee is P5,000.00 and is not refunded if the application is denied (Section 9).
Within ten (10) calendar days from receipt of complete application and proof of payment, the Regional Director or representative must evaluate documents and conduct an ocular inspection to decide to grant or deny (Section 10).
Upon approval, the applicant must pay a license fee of P15,000.00 and post a cash bond of P50,000.00 and a surety bond of P100,000.00 (Section 11).
Bonds answer for all valid and legal claims from use of the license and guarantee compliance with the Labor Code and relevant DOLE recruitment and placement issuances (Section 11).
A license is valid for three (3) years from date of issuance unless sooner revoked/cancelled (Section 12).
Renewal must be filed not earlier than sixty (60) days and not later than thirty (30) days before expiration; the renewed license validity starts on the expiration date of the previous license (Section 13).
Renewal beyond the prescribed period is subject to penalties under the rules (Section 13).
Renewal requires compliance with Section 6 requirements plus copies of placement reports (Section 13).
The original license and organizational structure (with 2x2 size photographs of officers, personnel, and representatives) must be conspicuously and permanently displayed within the office premises (Section 14).
A license or authority to recruit is non-transferable and cannot be transferred, conveyed, or assigned to another person/entity (Section 15).
For change of ownership, the agency must surrender its license to the issuing Regional Office and the new owner/s must apply for a new license; for a change in sole proprietorship ownership, the license is automatically revoked (Section 16).
In case of death of a single proprietor, the license may be extended for not more than six (6) months from death upon heirs’ request to continue only for winding up or until expiration, whichever comes first (Section 16).
A change in partner relationships in a partnership dissolves the partnership and causes automatic revocation of the license (Section 16).
Changes in corporate board composition and appointments must be registered with the Regional Office within five (5) days, with documents including a Board Secretary’s certificate of election/letter of appointment or contract of employment and 2x2 photos and NBI clearances (Section 17).
The Regional Office may deny acknowledgement for non-compliance with requirements (Section 17).
Complete change of board membership causes revocation of the license (Section 17).
Change of address requires notice to the issuing Regional Office fifteen (15) days prior to transfer intent (Section 18).
If transfer is to another region, within fifteen (15) days prior to transfer the agency must: secure clearance of no pending case from the issuing Regional Office; notify receiving Regional Office; submit clearance, location map, and lease contract/certificate of ownership to receiving Regional Office; and publish the new address for two (2) consecutive weeks in a newspaper of general circulation (Section 18).
Receiving Regional Office must conduct an ocular inspection to ensure compliance (Section 18).
Authority to recruit may be issued together with the license and is valid nationwide (Section 19).
For issuance of authority to recruit, requirements are: letter request by the agency; certification under oath or agreement/sp. power of attorney detailing proposed recruitment activities; NBI clearance and bio-data of representative with one recent passport-size picture; certificate of no pending recruitment case; and certificate of attendance to pre-application seminar (Section 20).
No authority application is accepted unless all requirements are complied with (Section 20).
On complete documents, the Regional Director must approve or deny within two (2) days (Section 21).
Upon approval, a registration fee of P2,000.00 must be paid (Section 21).
The authority to recruit is co-terminus with the license validity unless revoked/cancelled for Labor Code and related legal violations (Section 22).
Renewal of authority to recruit must be filed not earlier than sixty (60) days and not later than five (5) days before expiration; validity takes effect on the previous authority’s expiration date (Section 23).
After expiration, renewal is subject to penalties under the rules (Section 23).
Renewal requires submission of a copy of the existing authority to recruit plus Section 20 requirements (Section 23).
Authority to recruit is revoked upon issuance of a cancellation/revocation order by the concerned Regional Office (Section 24).
Any existing authority is deemed cancelled upon issuance of authority to recruit for another agency (Section 24).
Agencies must publish names and pictures of representatives whose authorities were revoked/terminated for two (2) consecutive weeks in a newspaper of general circulation and furnish proof of publication to the Regional Office (Section 24).
Regional Offices must keep records of issued/revoked/terminated authorities and provide the Bureau copies (Section 24).
Agencies must apply for authority to operate a branch office with the Regional Office having jurisdiction over the branch location (Section 25).
Branch authority requirements include: filing fee payment of P2,000.00; certified copy of a valid license; organizational structure of branch office with duly notarized appointments; NBI clearances; bio-data and one passport-size picture of branch manager and staff; and certification of exclusive office space with minimum floor area of fifty (50) square meters (Section 26).
If requirements are not fully complied with, the application must not be accepted (Section 26).
Within five (5) days from receipt, the Regional Director (or authorized representative) evaluates documents and conducts an ocular inspection (Section 27).
Within five (5) days after ocular inspection, the Regional Director approves or denies (Section 27).
After approval, the applicant must post an additional surety bond of P100,000.00 and pay a registration fee of P5,000.00 (Section 28).
Authority to operate a branch office is co-terminus with the agency license unless sooner cancelled or revoked by the Regional Director (Section 29).
Renewal must be filed not earlier than sixty (60) days and not later than ten (10) days before expiration; the renewed validity takes effect on the expiration date (Section 30).
After expiration, renewal is subject to penalties under the rules (Section 30).
Renewal submissions require a copy of existing branch authority plus Section 26 requirements (Section 30).
Applications for new licenses or renewals, and authority to recruit or branch office, may be denied on grounds including: non-compliance with requirements; pendency of cases for Labor Code violations; conviction of illegal recruitment/trafficking/anti-child labor or moral turpitude crimes by applicant/officers/authorized representatives; or prior revocation/cancellation of license/authority (Section 31).

Appeals and procedural timelines

The Regional Director’s denial order for license, authority to recruit, or branch office is appealable to the Office of the Secretary within ten (10) days from receipt (Section 32).
The Secretary must resolve the appeal within ten (10) days from receipt of the notice of appeal (Section 32).
A motion for reconsideration may be filed within ten (10) days from receipt of the decision; a second motion for reconsideration is not allowed (Section 32).
The Secretary’s decision becomes final and executory within ten (10) days from receipt of the resolution (Section 32).
Complaints for recruitment violations are filed with the Regional/Field Office having jurisdiction where the agency/branch is located, where the prohibited act was committed, or at the complainant’s place of residence, at complainant’s option; the office that first acquired jurisdiction acts to the exclusion of others (Section 54).
The complaint must be under oath, administered by an authorized officer, and must state: complainant name/address; respondent name/address; specific acts; when/where committed; amount of claim if any; relief sought; and must attach relevant supporting papers (Section 55).
Upon receipt, the Regional Director issues a show cause order requiring a verified answer/counter-affidavit within ten (10) days, attaching documents, furnishing copies to complainant/s, and submitting proof of service (Section 56).
Failure to file an answer/counter-affidavit within ten (10) days is a waiver; the case is resolved on the basis of the complaint, documents, and other pleadings (Section 57).
Withdrawal/desistance by the complaining witness does not bar investigation; the Regional Office proceeds, merits the evidence, and imposes appropriate penalties (Section 58).
Parties may submit a compromise agreement at any stage, subject to Regional Office approval (Section 59).
Hearings must be completed within thirty (30) working days from filing; the Regional Director resolves within ten (10) working days from when the case is deemed submitted for decision (Section 60).
Pending investigation of an offense listed in Section 51, the Regional Director may suspend the agency license on grounds including reasonable belief of exploitation/further violations, failure to submit answer/position within ten (10) days upon notice, or failure to attend hearing on two (2) occasions despite due notice (Section 61).
Orders of suspension/cancellation are appealable to the Secretary by filing a notice of appeal with the appropriate Regional Office within ten (10) days from receipt, on specified grounds including prima facie abuse of discretion, fraud/coercion in securing the decision/award, purely questions of law, serious errors of fact causing grave/irreparable damage, among others stated in the section (Section 62).
The Secretary’s decision is final and executory unless a motion for reconsideration is filed within ten (10) days after receipt; no second motion for reconsideration is entertained (Section 63).
Within ten (10) days from finality, the Regional Director issues a writ of execution (Section 63).

License loss, inspections, Phil-Jobnet registration

If license or authority is lost, the holder must submit an affidavit of loss and pay a replacement fee of P1,000.00, after which the Regional Director issues a certified copy after evaluation and approval (Section 34).
The Regional Director or duly authorized representative may access agency records and premises at any time of day or night wherever recruitment and placement is undertaken for compliance verification (Section 66).
All licensed agencies must register at Phil-Jobnet within five (5) days from license issuance and submit job vacancies for posting (Section 67).
Agencies must submit monthly reports to the Regional Office within fifteen (15) days after the reference month (Section 67).

Recruitment and placement duties; worker protections

Agencies must abide by recruitment procedures, including presenting copies of valid license, authority to recruit, and notarized job order to PESO and the Barangay Office where recruitment will occur (Section 40).
Agencies must require recruits to submit specified documents, including bio data or comprehensive resume; birth certificate from Local Civil Registrar or National Statistics Office; original medical certificate issued by a government physician or reputable private medical practitioner; and original barangay clearance issued by the Barangay Chairman with jurisdiction over the recruit’s residence (Section 40).
Agencies must conduct an interview after evaluating documents, explain the recruitment contract, and determine if recruits are fit, capable, and willing to work (Section 40).
Agencies must submit to the Regional Office a duly executed and notarized recruitment contract between the agency and recruit (Section 40).
Agencies must request a pre-departure orientation from the Regional Office or PESO or an organization duly accredited by DOLE in the area of origin (Section 40).
Agencies must submit to the Regional Office/Field Office a list of recruits’ names and addresses with copies of required documents for authentication and validation (Section 40).
Agencies must request the Regional/Field Office of origin for certification that recruitment is in accordance with the rules, and furnish copies to PESO/LGU, Regional Office, Marine Police/Coast Guard/PNP, and Philippine Ports Authority/Air Transportation Office as applicable to destination (Section 40).
Agencies must provide, at destination and while awaiting actual placement, free, convenient, separate housing accommodation for men and women (Section 41).
Agencies must bring the recruit to the prospective employer as per the job order and arrange an employer-recruit interview within three (3) days upon arrival (Section 41).
Agencies must prepare employment contracts using the Standard Employment Contract, including monthly salary and mode of payment, nature of work, benefits mandated by law, and other mutually agreed benefits (Section 41).
Agencies must provide Pre-Employment Orientation (PEO) covering rights and responsibilities of workers, employer obligations, grievance mechanism, and agency contact information, plus information on other support groups; the Bureau formulates the PEO module (Section 41).
For domestic workers, agencies must require the employer to submit clearance from the Barangay Office and the National Bureau of Investigation or Philippine National Police (Section 41).
Agencies must inform the recruit’s family of the employer’s name, address, and contact number (Section 41).
Agencies must register the domestic worker with the Barangay Office nearest the place of work (Section 41).
Agencies must not collect or deduct any fees whatsoever from salaries or wages of workers (Section 35).
Agencies may charge employers a service fee as agreed, but it must never be deducted from the worker’s salary (Section 35).
Transportation expenses for transfer from residence to place of work must be charged to the employer and must never be deducted from workers’ salaries (Section 35).
All payments/fees collected by an agency must be evidenced by an official receipt indicating amount and purpose (Section 36).
An employer is entitled to replacement of a worker without additional cost or refund of seventy five percent (75%) of the service fee and transportation expenses under specific conditions: medical or mental illness certified by a competent/government physician within one (1) month from first day of work causing incapacity to meet minimum job requirements; or worker abandons job, voluntarily resigns, commits theft, or other prejudicial acts within three (3) months from first day of work (Section 37).
If a replacement request is beyond the stated periods, the employer must pay an additional service fee as agreed by both parties (Section 37).
An employer is entitled to refund of seventy five (75%) percent of service fee if the agency failed to provide a replacement after the lapse of one (1) month from receipt of request, unless parties agreed to a longer period (Section 38).
The employer is deemed to forfeit the right to replacement without cost/refund when the right is not availed within thirty (30) days after the lapse of one (1) month or within three (3) months as the case may be, unless otherwise agreed by the parties (Section 39).
If an agency or branch ceases to operate before license/authority expiration, it must notify the Regional Office stating the reason for closure (Section 64).

Illegal recruitment: definitions and prohibited acts

Illegal recruitment includes any act of canvassing, enlisting, contracting, utilizing, hiring, or procuring workers, including referrals and contract services, promising or advertising for local employment, whether for profit or not, when undertaken by a non-licensee or non-holder of authority.
Non-licensees or non-holders of authority who offer or promise fee employment to two or more persons are deemed so engaged (Section 42).
It is unlawful for any person to charge or accept any amount or make a worker pay any amount greater than that actually loaned or advanced (Section 42).
It is unlawful to furnish or publish any false notice or information related to recruitment or employment (Section 42).
It is unlawful to give any false notice, testimony, information, or document or commit misrepresentation to secure a license or authority (Section 42).
It is unlawful to induce or attempt to induce an already employed worker to quit to offer another transfer, unless designed to liberate the worker from oppressive terms and conditions (Section 42).
It is unlawful to influence or attempt to influence any person/entity not to employ a worker who did not apply through the offender’s agency (Section 42).
It is unlawful to engage in recruitment/placement in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines (Section 42).
It is unlawful to obstruct or attempt to obstruct inspection by the Secretary or authorized representatives (Section 42).
It is unlawful to substitute or alter to the prejudice of the worker the employment contract prescribed by the Department from signing up to and including contract expiration without Department approval (Section 42).

Cease and desist, surveillance, criminal actions

The Department must adopt and implement programs, policies, rules, and procedures toward eradicating illegal recruitment, including legal assistance to victims, assistance in prosecution, special operations such as surveillance, and information and education campaigns; DOLE coordinates with appropriate agencies when necessary (Section 43).
The Department may provide free legal assistance to victims, including legal advice, assistance in preparing complaints and supporting documents, institution of criminal actions, counseling during preliminary investigation and hearings when necessary (Section 44).
Victims of illegal recruitment or related illegal acts, or their parents/legal guardians, may file a written complaint under oath with the Regional Office or Field Office having jurisdiction over the place where the illegal act was committed (Section 45).
The Regional Director or authorized representative may conduct motu proprio surveillance on reported illegal recruitment activities (Section 46).
If complaint/report alleges continuous illegal recruitment, the Regional Director or authorized representative must conduct surveillance and, if confirmed, a closure order may be issued (Section 46).
If sufficient basis for criminal action is found, the case must be indorsed to the appropriate office (Section 46).
For cease and desist orders, the Regional Director must conduct preliminary examination to determine whether the activities of a non-licensee pose danger to life, limb, property, public order, or will lead to further exploitation of job seekers (Section 47).
If danger or exploitation exists after preliminary examination/surveillance, a written closure order must be issued for the establishment used for the recruitment activity (Section 47).
Where the establishment’s license/permit is issued by local government, the Regional Director must recommend immediate cancellation/revocation to the granting authority (Section 47).
A cease and desist order must be served by the DOLE Sheriff upon the offender/person in charge of the establishment; law enforcement assistance must be secured when necessary (Section 48).
Within twenty four (24) hours from implementation, the DOLE Sheriff must submit a written report under oath on execution to the Regional Director (Section 49).
The Regional Director (or authorized representative) or any aggrieved person may initiate filing of appropriate criminal action with the prosecutor; complaints filed with the Regional Office proper for preliminary investigation must be endorsed to the prosecutor with supporting documents (Section 50).

Administrative offenses, penalties, and fines

Administrative offenses are classified into serious, less serious, and light based on gravity; the Regional Director, after due process, imposes appropriate administrative penalties for every recruitment violation (Section 51).
Serious offenses carry penalty of cancellation of license/authority (Section 51), including:
- Recruitment/placement violating anti-child labor laws.
- Misrepresentation acts to secure a license or renewal.
- Recruitment/placement in jobs harmful to public health or morality or to the dignity of the Republic of the Philippines.
- Transferring/conveying/assigning the license/authority to anyone other than the one in whose favor it was issued.