Law Summary
Key Definitions
- Administration: Philippine Overseas Employment Administration (POEA)
- Contract Worker: person working or who worked overseas under a valid contract
- Agency: licensed private employment or manning agency
- Employer: person or entity employing Filipinos overseas
- License: document authorizing operation of recruitment/manning agency
- Others include terms like Balik-Manggagawa, Beneficiary, Placement Fee, Principal, and more
Licensing and Regulation of Agencies
- Qualified applicants: Filipino ownership (>=75%), minimum capitalization ₱1M, no disqualifications
- Disqualifications include travel agencies, persons with derogatory records, government employees involved, etc.
- Application requires submission of documents proving financial capacity, clearance from agencies, marketing capabilities, escrow agreements, and others
- License valid for two years, non-transferable, specific to address
- Fees: ₱30,000 license fee, cash and surety bonds for claims and compliance
- Renewals require proof of foreign exchange earnings, bonds, financial capacity, deployment reports
Registration and Inspection
- Philippine shipping companies must register with relevant documents and surety bonds
- Agencies subject to inspection before licensing, periodic, upon complaints, or office changes
- Inspections conducted by authorized POEA inspectors with documented reports
Placement Fees and Documentation Costs
- Fees charged to principals for recruitment, documentation services
- Placement fees to workers authorized by Secretary, except manning agencies cannot charge fees
- Service fees cover actual recruitment and placement services
- Prohibitions on unauthorized fees and charges
Advertisement and Recruitment Activities
- Job vacancy ads permitted only for accredited principals/projects with prior approval
- Ads must include agency name, address, license number, principal details, skill categories
- False, deceptive ads subject to sanctions and possible cancellation of accreditation/license
- Foreign principals advertise only through licensed agencies
Trade Tests and Medical Exams
- Trade tests conducted after interview and pre-qualification for approved jobs
- Medical exams conducted post-interview and trade test
Mandatory Insurance and War Risk Coverage
- Required life and personal accident insurance: minimum ₱50,000 coverage without cost to workers
- War risk insurance mandatory for workers in designated war risk areas
- Coverage extends for contract duration plus 60 days, minimum one year
- War risk premium pay provided to seafarers
Departure and Labor Assistance
- Labor Assistance Centers established at exit points for deployment support
- POEA issues special clearance for non-contract workers with valid documents
- Coordination with immigration, foreign affairs, airport authorities for deployment facilitation
Illegal Recruitment: Definitions and Enforcement
- Illegal recruitment includes recruiting by non-licensees, unauthorized agents
- Programs include prosecution, surveillance, legal assistance for victims
- Complaints filed under oath with specified details needed
- Closure orders issued on grounds of danger or exploitation, backed by surveillance reports
- Appeals and motions for lifting closure allowed under defined conditions
Accreditation of Principals and Projects
- Only licensed agencies may apply
- Requirements include employment contracts, service agreements, manpower requests
- Verification/authentication may involve Philippine Embassy or host country officials
- Single accreditation rule for landbased principals; limit on manning
- Transfers of accreditation subject to no wage/benefits reduction for workers
Documentary Processing and Deployment
- Agencies submit recruitment or crew orders with workers' contracts, documents
- Processing fees paid only after approval
- Deployment deadlines: 120 days for landbased, 30 days for seafarers
- One-Stop Processing Centers facilitate deployment
- Balik-Manggagawa processed with simplified documentation
Recruitment and Placement by the Administration
- Focus on government-to-government hiring
- Employers submit work permit/visa, recruitment and employment contracts
- Recruitment agreements outline responsibilities, fees, grievance mechanisms
- Workers selected from Administration’s manpower pool
- Medical exams and pre-departure orientation required
Name Hires and Ban on Direct Hires
- Name hires (self-secured employment) processed by Administration
- Ban on direct hires except for diplomatic or allowed employers
Market Development and Employment Standards
- Research and marketing activities to promote employment opportunities
- Establish minimum employment contract provisions including wages, benefits, repatriation, accommodations
- Develop region/country/skill-specific standard employment contracts
Jurisdiction and Penalties for Recruitment Violations
- POEA has exclusive original jurisdiction for pre-employment cases
- Grounds for suspension: charging excessive fees, misrepresentation, obstructing inspection, falsification, etc.
- License revocation for serious or repeated violations
- Complaints filed with POEA Adjudication Office or Regional Offices
- Procedures include show cause orders, subpoenas, hearings, suspension pending investigation
Employer-Employee Relation Cases
- POEA has exclusive jurisdiction over disputes from contracts, money claims, benefits
- Complaints filed at POEA or Regional Offices
- Non-litigious proceedings with pre-trial, summary judgment, settlement options
- Appeals to National Labor Relations Commission on specific grounds
Disciplinary Actions Against Workers
- Grounds include felony, drug-related offenses, desertion, misconduct
- Penalties range from warning to disqualification and repatriation
- Blacklisting system maintained
Worker Welfare Programs and Services
- Agencies responsible for protecting workers’ welfare including enforcement of contracts
- Assistance for workers and families, including repatriation and claims handling
- Welfare programs to aid integration and well-being
- Orientation programs before employment and departure
- Manpower Registry/Skills Bank established to organize worker qualifications
Performance Bonds and Repatriation
- Optional worker performance bonds for contract compliance
- Agencies responsible for repatriation including cases with or without bonds
Foreign Exchange Remittance
- Mandatory remittance of prescribed percentage of basic salary
- Agencies report foreign earnings to Central Bank
- Proof of compliance includes bank receipts, employer certifications, postal money orders
General Provisions
- Administrator authorized to administer oaths, consolidate cases
- Prescriptive periods for claims and disciplinary actions set at 3 years
- Rules liberally construed to effectuate protection and justice
- Severability and repealing clauses present
- Effective 15 days post-publication
This comprehensive explanation captures all significant aspects of the Rules and Regulations Governing Overseas Employment as detailed in the POEA document.