1.

Books Covered by Labor Standards: - Labor legislation consists of statutes, regulations and
a. Pre-Employment jurisprudence governing the relations between capital
b. Human Resources Development Program and labor, by providing for employment standards and a
c. Conditions of Employment legal framework for negotiating, adjusting and
d. Healthy. Safety and Social Welfare Benefits administering those standards and other incidents of
2. Books Covered by Labor Relations: employment.
a. Labor Relations - Social legislation includes laws that provide particular
b. Post-Employment kinds of protection or benefits to society or segments
c. Transitory and Final Provisions thereof in furtherance of social justice.
3. General Classifications of Labor Statutes: 6. Police Power of the State (Case of JMM Promotion and
a. Labor Standards Law shall refer to the minimum Management, Inc., vs. CA)
requirements prescribed by existing laws, rules and - The police power of the State is a power coextensive
regulations and other issuances relating to wages, with self-protection, and is not inaptly termed “the law
hours of work, cost of living allowances and other of overruling necessity.” It may be said to be that
monetary and welfare benefits, including those set inherent and plenary power in the state which enables
by occupational safety and health standards, it to prohibit all things hurtful to the comfort, safety and
b. Social Security Law are those laws that provide for welfare of the Society.
income security and/or medical care for - The welfare of Filipino performing artists, particularly
contingencies such as: a. sickness, b. maternity, c. the women was the paramount in the issuance of
invalidity, d. old age, e. death of breadwinner; Department Order No. 3. Short of a total and absolute
unemployment, f. emergency expenses, and g. ban against the deployment of performing artists to
employment injuries. “high risk” destinations, a measure which would only
c. Labor Relations Law defines the statues, rights, and drive recruitment further underground, the new
duties, and institutional mechanisms, that govern scheme at the very least rationalizes the method of
the individual and collective interactions of screening performing artists by requiring reasonable
employers, employees or their representatives. educational and artistic skill from them and limits
4. Purpose of Labor Legislation: deployment to only those individuals adequately
- The purpose of labor legislation is to implement the prepared for the unpredictable demands of
state policies in the Labor Code and the Constitution. employment as artists abroad. It cannot be gainsaid
Such as those provided in Article 3 of the Labor Code, that this scheme at least lessens the room for
Article II, Section 18 and Article XIII, Section 3 of the exploitation by unscrupulous individuals and agencies.
1987 Constitution 7. Declared policies on and distinctions between Article 3 of
5. Distinction between and definition of Labor Legislation and the Labor Code and Article XIII, Section 3 of the 1987
Social Legislation Constitution.
a. Protection to labor clause under the Constitution: v. Security of tenure, humane conditions of
Section 3. The State shall afford full protection to work, and a living wage
labor, local and overseas, organized and unorganized, vi. Participation in policy and decision-making
and promote full employment and equality of processes affecting their rights and benefits
employment opportunities for all. as may be provided by law
It shall guarantee the rights of all workers to self- vii. Promote the principle of shared
organization, collective bargaining and negotiations, responsibility between workers and
and peaceful concerted activities, including the right employers
to strike in accordance with law. They shall be entitled viii. Preferential use of voluntary modes in
to security of tenure, humane conditions of work, and settling disputes, including conciliation, and
a living wage. They shall also participate in policy and shall enforce their mutual compliance
decision-making processes affecting their rights and therewith to foster industrial peace
benefits as may be provided by law. ix. Right of labor to its just share in the fruits of
The State shall promote the principle of shared production and the right of enterprises to
responsibility between workers and employers and reasonable returns on investments, and to
the preferential use of voluntary modes in settling expansion and growth
disputes, including conciliation, and shall enforce their b. Declaration of basic policy under the Labor Code:
mutual compliance therewith to foster industrial “Article 3. Declaration of basic policy. The State
peace. shall afford protection to labor, promote full
The State shall regulate the relations between employment, ensure equal work opportunities
workers and employers, recognizing the right of labor regardless of sex, race or creed and regulate the
to its just share in the fruits of production and the relations between workers and employers. The
right of enterprises to reasonable returns to State shall assure the rights of workers to self-
investments, and to expansion and growth. organization, collective bargaining, security of
i. Full protection to labor, local and overseas, tenure, and just and humane conditions of work.”
organized and unorganized i. Afford protection to labor
ii. Promote full employment and equality of ii. Promote full employment
opportunities for all iii. Ensure equal work opportunities regardless
iii. The rights of all workers to self- of sex, race or creed
organization, collective bargaining and iv. Regulate relations between workers and
negotiations employers
iv. Peaceful concerted activities, including right v. Assure the rights of workers to self-
to strike in accordance with law organization, collective bargaining, security
 of tenure, and just and humane conditions (g) To ensure the participation of
of work workers in decision and policy-making
8. PAL vs. NLRC processes affecting their rights, duties and
a. Management prerogatives ( PAL vs. NLRC) welfare. x x x
- Even in the absence of clear provision of 9. Distinctions between Article 4 LC and Article 1702 NCC:
law, the exercise of management a. Article 4. Construction in favor of labor. All doubts in
prerogatives was never considered the implementation and interpretation of the
boundless. provisions of this Code, including its implementing
- Management prerogatives must be without rules and regulations, shall be resolved in favor of
abuse of discretion. (Cruz vs. Medina) labor.
- so long as a company’s management b. Article 1702. In case of doubt, all labor legislation
prerogatives are exercised in good faith for and all labor contracts shall be construed in favor of
the advancement of the employer’s interest the safety and decent living for the laborer.
and not for the purpose of defeating or c. As to scope and extent, Article 1702 NCC is broader
circumventing the rights of the employees as it includes all labor legislations and labor
under special laws or under valid contracts. As defined, labor legislation “consists of
agreements, this Court will uphold them. statutes, regulations and jurisprudence governing
(San Miguel Brewery vs. Ople) the relations between capital and labor, x x x.” As
b. Management prerogatives vs. Right to co- opposed to Article 4 of the LC which only includes
determination (PAL vs. NLRC) the interpretation of the Labor Code and its IRR.
- The exercise of management prerogatives d. In the case of Penaflor vs Outdoor Clothing
must be without abuse of discretion, must Manufacturing, the Court extended the scope and
be in good faith for the advancement of the extent of Article 4 of the LC to cover doubts in the
employer’s interest and not for the purpose evidence presented by the employer and the
of defeating or circumventing the laws, and employee. In said case, the Court ruled that
must be invoked in managerial purpose. Penaflor was constructively dismissed given the
- Co-determination must be exercised to hostile and discriminatory working environment he
avoid infringement of constitutional rights, found himself in, particularly evidenced by the
to uphold the constitutional requirements escalating acts of unfairness against him that
for the protection of labor and the culminated in the appointment of another HRD
promotion of social justice. Manager without any prior notice to him. Where no
c. Article 218 (g) of the Labor Code: less than the company’s chief corporate officer was
- Article 218. Declaration of Policy - against him, Penaflor had no alternative choice but
a) It is the policy of the State: x x x to resign from his employment.
10. Management prerogatives e. Criterion in the exercise of grant of bonus; when is
a. Definition of Management Prerogatives it demandable - The grant of a bonus is basically a
- Management prerogatives refer to the right management prerogative which cannot be forced
of an employer to regulate all aspects of upon the employer who may not be obliged to
employment, such as the freedom to assume the onerous burden of granting bonuses or
prescribe work assignments, working other benefits aside from the employee’s basic
methods, processes to be followed, salaries or wages. A bonus, however, becomes
regulation regarding transfer of employees, demandable or enforceable obligation when it is
supervision of their work, lay-off and made part of the wage or salary or compensation of
discipline, and dismissal and recall of work. the employee.
b. An employer has a free reign and enjoys wide f. Definition of Demotion - it exists when there is a
latitude of discretion to regulate all aspects of reduction in position, rank or salary. it is a valid
employment and the only criterion to guide the excuse of management prerogative, often as a
exercise of its management prerogative is that the consequence of an employee’s failure to comply
policies, rules and regulations on work-related with company productivity standards.
activities of the employees must be fair and g. Post retirement competitive ban - Forfeitures for
reasonable. engaging in subsequent competitive employment,
c. Criterion in the exercise of management included in pension retirement plans, are valid,
prerogative on outsourcing - the Court said that it is even though unrestricted in time or geography. The
management prerogative to farm out any of its reasoning behind the forfeiture is, unlike the
activities, regardless of whether such activity is restraint included in employment contract, it is not
peripheral or core in nature. What is of primordial a prohibition on the employee’s engaging in
importance is that the service agreement does not competitive work but is merely a denial of the right
violate the employee’s right to security of tenure to participate in the retirement plan if he does so
and payment of benefits to which he is entitled engage. A restriction in the contract which does not
under the law. Furthermore, the outsourcing must preclude the employee from engaging in
not squarely fall under labor-only contracting where competitive activity, but simply provides for the loss
the contractor or sub-contractor merely recruits, of rights or privileges if he does so is not in restraint
supplies or places workers to perform a job, work or of trade.
service for a principal. h. A post-retirement competitive employment
d. Definition of bonus - it is a gratuity or act of restriction is designed to protect the employer
liberality of the giver which the recipient has no against competition by former employees who may
right to demand as a matter of right. retire and obtain retirement or pension benefits
 and, at the same time, engage in competitive during the time the employer was operating
employment. his drugstore. We said that a contract in
i. Limitations on non-involvement clause: restraint of trade is valid provided there is a
i. In Ferrazzini, the employee was prohibited limitation upon either time or place and the
from engaging in any business or restraint upon one party is not greater than
occupation in the Philippines for a period of the protection the other party requires.
five years after the termination of his iv. In the case of Consulta vs CA, the Court
employment contract and must first get the considered a non-involvement clause in
written permission of his employer if he accordance with Article 1306 of the Civil
were to do so. The Court ruled that while Code. While the complaint in that case was
the stipulation was indeed limited as to an independent agent and not an
time and space, it was not limited to trade. employee, she was prohibited for one year
Such prohibition, in effect, forces an from engaging directly or indirectly in
employee to leave the Philippines to work activities of other companies that compete
should his employer refuse to give a written with the business of her principal. The Court
permission. noted that the restriction did not prohibit
ii. In G. Martini, Ltd case, the employee was the agent from engaging in any other
prohibited from engaging in any business business, or from being connected with any
similar to that of his employer for a period other company, for as long as the business
of one year. Since the employee was or company did not compete with the
employed only in the connection with the principal’s business. Further, the prohibition
purchase and export of abaca, among the applied only for one year after the
many businesses of the employer, the Court termination of the agent’s contract and was
considered the restraint too broad since it therefore a reasonable restriction designed
effectively prevented the employee from to prevent acts prejudicial to the employer.
working in any other business similar to his j. Criterion in the exercise of non-involvement clause -
employer even if his employment was a non-involvement clause is not necessarily void for
limited to one of its multifarious business being in restraint of trade as long as there are
activities. reasonable limitations as to time, trade, and place.
iii. In the case of Del Castillo vs. Richmond, the k. The Goodwill Clause or the Non-compete Clause is a
employee was restricted from opening, contractual undertaking effective after the cessation
owning or having any connection with any of the employment relationship between the
other drugstore within a radius of four parties. In accordance with jurisprudence, breach of
miles from the employer’s place of business
 the undertaking is a civil law dispute, not a labor ensure maximum profit and
law case. business success.
l. Premarital Discrimination: ii. Test of validity on company policy on
i. Validity of policy prohibiting relationship marital discrimination:
with competitor’s employee: - In the case of Star Paper Corp., the
- In the case of Duncan vs Glaxo, the Court ruled that the policy is not a
Court said that Glaxo has a right to valid exercise of management
guard its trade secrets, prerogatives discussing therein the
manufacturing formulas, marketing bona fide occupational qualification
strategies and other confidential vis-a-vis standard of reasonabless in
programs and information from laying down policies regarding
competitors, especially so that is marital discrimination.
and Astra are rival companies in the - The Court said, quoting from the
highly competitive pharmaceutical case of Ross vs Stouffer, that the
industry. no-spouse employment policy is
- The prohibition against personal invalid for failure of the employer
and marital relationships is to present any evidence of business
reasonable under the necessity other than the general
circumstances because perception that spouses in the
relationships of that nature might same place might adversely affect
compromise the interests of the the business. They hold that the
company. absence of a bona fide occupational
- the policy being questioned is not a qualification invalidates a rule
policy against marriage. An denying employment to one spouse
employee of the company remains due to the current employment of
free to marry anyone of his or her the other spouse in the same office.
choosing. The policy is not aimed at Unless the employer proves the
restricting a personal prerogative reasonable demands of the
that belongs only to the individual. business require a distinction based
However, an employee’s personal on marital status and there is no
decision does not detract the better available or acceptable policy
employer from exercising which would better accomplish the
management prerogatives to business purpose, an employer may
not discriminate against an
 employee based on the identity of a. Exceptions - The applicability of the Labor Code are
the employee’s spouse. subject to certain exceptions such as those
- The concept of BFOQ is not foreign employed in the civil service, those employed in the
in our jurisdiction. We employ the government-owned and controlled corporations
standard of reasonableness of the with special charter, involving intra-corporate
company policy which is parallel to controversy, employers with immunity from suit
the BFOQ requirement. The and those excluded under working conditions and
requirement that a company policy rest periods of Book III, Title I under Article 82 of
must be reasonable under the the Labor Code in relation to Rule I, Section 2, Rule
circumstances to qualify as a valid II, Section 1, Rule IV, Section 1 and Rule V Section 1,
exercise of management Book III of the Rules to Implement the Labor Code.
prerogative must show that the 12. Article 13. Definitions
reasonableness is clearly (b) "Recruitment and placement" refers to any act of
established to uphold the canvassing, enlisting, contracting, transporting, utilizing,
questioned employment policy. The hiring or procuring workers, and includes referrals, contract
employer has the burden to prove services, promising or advertising for employment, locally or
the existence of a reasonable abroad, whether for profit or not: Provided, That any
business necessity. person or entity which, in any manner, offers or promises
- In this case however, the policy is for a fee, employment to two or more persons shall be
premised on the mere fear that deemed engaged in recruitment and placement.
employees married to each other (c)"Private fee-charging employment agency" means any
will be less efficient. If we uphold person or entity engaged in recruitment and placement of
the questioned rule without valid workers for a fee which is charged, directly or indirectly,
justification, the employer can from the workers or employers or both.
create policies based on an (d) "License" means a document issued by the Department
unproven presumption of a of Labor authorizing a person or entity to operate a private
perceived danger at the expense of employment agency.
an employee’s right to security of (e) "Private recruitment entity" means any person or
tenure. association engaged in the recruitment and placement of
11. Article 6. Applicability. All rights and benefits granted to workers, locally or overseas, without charging, directly or
workers under this Code shall, except as may otherwise be indirectly, any fee from the workers or employers.
provided herein, apply alike to all workers, whether (f) "Authority" means a document issued by the
agricultural or non-agricultural. Department of Labor authorizing a person or association to
engage in recruitment and placement activities as a private - An act will be declared void and inoperative
recruitment entity. on the ground of vagueness and
a. Meaning of the proviso Art. 13 (b) LC - The number uncertainty, only upon a showing that the
of persons dealt with is not an essential ingredient defect is such that the courts are unable to
of the act of recruitment and placement of workers. determine, with any reasonable degree of
Any of the acts mentioned in the basic rule in Article certainty, what the legislature intended.
13(b) will constitute recruitment and placement c. Difference between Art. 13(c) abd 13(e):
even if only one prospective worker is involved. The - Private fee-charging employment agency
proviso merely lays down a rule of evidence where means any person or entity engaged in
a fee is collected in consideration of a promise or recruitment and placement of workers for
offer of employment to two or more prospective a fee which is charged directly or indirectly,
workers, the individual or entity dealing with them from the workers or employers or both is
shall be deemed to be engaged in the act of charged directly or indirectly, from the
recruitment and placement. The words “shall be workers or employers or both while Private
deemed” create that presumption. (Case of People recruitment entity meany any person or
vs Panis) association engaged in the recruitment and
b. Constitutionality of the Proviso Article 13(b) placement of workers, locally or overseas,
- As a rule, a statute or act may be said to be without charging, directly or indirectly, any
vague when it lacks comprehensible fee from the workers or employers.
standards that men "of common - The authority of private fee-charging
intelligence must necessarily guess at its employment agency to recruit and place
meaning and differ as to its application." It workers is derived from a document known
is repugnant to the Constitution in two as a license while the authority of the latter
respects: (1) it violates due process for to recruit and place workers is derived from
failure to accord persons, especially the a document known as authority. The former
parties targeted by it, fair notice of the is engaged in overseas recruitment while
conduct to avoid; and (2) it leaves law the latter is engaged in the recruitment and
enforcers unbridled discretion in carrying placement of workers, locally or overseas.
out its provisions and become an arbitrary d. Difference between Article 13(d) and 13(f) - License
flexing of the Government muscle. The act means a document issued by the Department of
must be utterly vague on its face, that is to Labor authorizing a person or entity to operate a
say, it cannot be clarified by either a saving private employment agency while Authority means
clause or by construction. a document issued by the Department of Labor
authorizing a person or association to engage in
 recruitment and placement activities as a private 2. For Seafarers - written standard
recruitment entity. POEA-approved employment
e. What is Private Recruitment/Employment Agency contract stipulating a specific period
(PREA) under RA 8042? Difference with Art. 13 (e) of employment and formulated
Private Recruitment Entity - “PREA refers to any through tripartite consultation,
person, partnership or corporation duly licensed by individually adopted and agreed
the Secretary of Labor and Employment to engage upon by the principal/employer and
in the recruitment and placement of workers for the seafarer.
overseas employment for a fee which is charged, iii. (p) Filipino Service Contractor - refers to any
directly or indirectly, from the workers or person, partnership or corporation duly
employers or both.” It seems that from the said licensed as a private recruitment agency by
definition, PREA and Private Recruitment Entity the Secretary of Labor and Employment to
have no more relevant distinctions to speak of. recruit workers for its accredited projects or
f. Definitions under RA 8042 (Omnibus IRR of RA contracts overseas.
10022 [amendatory act of RA8042]): iv. (q) Gender Sensitivity - refers to cognizance
i. (b) Authority - refers to a document issued of the inequalities and inequities prevalent
by the Secretary of Labor and in society between women and men and a
Employmentauthorizing the officers, commitment to address issues with concern
personnel, agents or representatives of a for the respective interest of the sexes.
licensed recruitment/manning agency to v. (r) Head or Manage - refers to any following
conduct recruitment and placement acts:
activities in a place stated in the license or 1. Control and supervise the
in a specified place. operations of the
ii. (o) Employment Contract - refers to the recruitment/manning agency or
following: branch thereof of which they are
1. For land-based workers hired by employed; or
private recruitment/employment 2. Exercise the authority to hire and
agencies - an individual written fire employees and lay down and
agreement between the foreign execute management policies of
principal/employer and the worker the recruitment/manning agency or
based on the master employment branch thereof.
contract approved by the vi. (s) Joint and Several Liability - refers to the
Administration; and liability of the principal/employer and the
recruitment/manning agency, for any and
 all claims arising out of the implementation seafarers for ships plying international
of the employment contract involving waters and for related maritime activities.
Filipino workers for overseas deployment. If x. (cc) Non-licensee- - refers to any person,
the recruitment/manning agency is a partnership or corporation with no valid
juridical being, the corporate officers and license to engage in recruitment and
directors and partners, as the case may be, placement or overseas Filipino Workers or
shall themselves be jointly and severally whose license is revoked, cancelled,
liable with the corporation or partnership terminated, expired or otherwise delisted
for the aforesaid claims and damages. from the roll of licensed
vii. (u) Irregular/Undocumented Filipino recruitment/manning agencies registered
migrant workers - refer to the following: with the POEA.
1. Those who acquired their passports xi. (hh) Overseas Filipino - refer to migrant
through fraud or workers, other Filipino nationals and their
misrepresentation; dependents abroad.
2. Those who possess expired visas or xii. (jj) Overseas Filipino Worker or Migrant
permits to stay; Worker - refers to a person to be engage, is
3. Those who have no travel engaged, or has been engaged in a
document whatsoever; remunerated activity in a state of which he
4. Those who have valid but or she is not a citizen or on board a vessel
inappropriate visas; or navigating the foreign seas other than a
5. Those whose employment government ship used for military or non-
contracts were not processed by commercial purposes, or on an installation
the POEA or subsequently verified located offshore or on the high seas. A
and registered on-site by the POLO, “person to be engaged in a remunerated
if required by law or regulation. activity” refers to an applicant worker who
viii. (w) License - refers to the document issued has been promised or assured employment
by the Secretary of Labor and Employment overseas.
authorizing a person, partnership or xiii. (ll) Placement Fees - refer to any and all
corporation to operate a private amounts charged by a private recruitment
recruitment/manning agency. agency from a worker for its recruitment
ix. (y) Manning Agency - refers to any person, and placement services as prescribed by the
partnership or corporation duly licensed by Secretary of Labor and Employment.
the Secretary of Labor and Employment to xiv. (oo) Principal - refers to an employer or
engage in the recruitment and placement of foreign placement agency hiring or
 engaging Filipino workers for overseas determined by the appropriate government
employment through a licensed private agency.
recruitment/manning agency. xix. (vv) Underage Migrant Workers - refer to
xv. (pp) Private Recruitment/Employment those who are below eighteen (18) years or
Agency - refers to any person, partnership below the minimum age requirement for
or corporation duly licensed by the overseas employment as determined by the
Secretary of Labor and Employment to Secretary of Labor and Employment.
engage in the recruitment and placement of g. Definition under DO No. 141-14, Series of 2014:
workers for overseas employment for a fee i. (g) Private employment agency or agency
which is charged, directly or indirectly, from refers to any person, partnership or
the workers who renews their employment corporation engaged in the recruitment and
contracts with the same principal. placement of workers for local
xvi. (qq) Rehires - refer to land-based workers employment.
who renewed their employment contracts It also refers to any individual, partnership,
with the same principal. corporation or entity licensed by the
xvii. (rr) Regular/Documented Filipino Migrant Department of Labor and Employment to
Workers - refer to the following: engage in the recruitment and placement of
1. Those who possess valid passports Kasambahay for local employment,
and appropriate visas or permits to ii. (h) License refers to a document issued by
stay and work in the receiving the Secretary through the Regional Director
country; and authorizing a person, partnership or
2. Those whose contracts of corporation to operate a private
employment have been processed employment agency.
by the POEA, or subsequently Authority to operate branch office refers to
verified and registered on-site by a document issued by the Secretary through
the POLO, if required by law or the Regional Director authorizing a private
regulation. employment agency to establish and
xviii. (tt) Skilled Filipino Workers - refer to those operate a branch office.
who have obtained an academic degree, iii. (i) Authority to recruit refers to a document
qualification, or experience, or those who issued by the Secretary through the
are in possession of an appropriate level of Regional Director authorizing a person to
competence, training and certification, for conduct recruitment activities for local
the job they are applying, as may be employment on behalf of a private
employment agency.
 iv. (q) Recruitment contract refers to the the employment contract with the worker.
agreement entered into between a private It also refers to any person who engages
employment agency or its representative and controls the services of a Kasambahay
and a recruitment stating the terms and and is party to the employment contract.
conditions of the recruitment in a language x. (w) Non-licensee or non-holder of authority
known and understood by the recruit. refers to any person, partnership or
v. ® Employment contract refers to the corporation who has not been issued a
individual written agreement between the license or authority to recruit, or whose
employer and the worker stating clearly the license or authority to recruit has been
terms and conditions of employment in a revoked or cancelled by the Regional
language known and understood by the Director.
worker. 13. Article 16. Private recruitment. Except as provided in
vi. (s) Service contract refers to the agreement Chapter II of this Title, no person or entity other than the
entered into between the employer and the public employment offices, shall engage in the recruitment
private employment agency stating clearly and placement of workers.
the terms and conditions of the service. a. SECTION 1. Private recruitment. — No person or
vii. (t) Service fee refers to the amount charged entity shall engage in the recruitment and
by a private employment agency to a local placement of workers either for local or overseas
employer as payment for actual services employment except the following:
rendered in relation to the recruitment and i. (a) Public employment offices;
placement of workers. ii. (b) Overseas Employment Development
viii. (u) Deployment Expenses refer to expenses Board; (REPEALED)
that are directly used for the transfer of the iii. (c) National Seamen Board;
Kasambahay from the place of origin to the iv. (d) Private recruitment offices;
place of work covering the cost of v. (e) Private employment agencies;
transportation, meals, communication vi. (f) Shipping or manning agents or
expense, and other incidental expenses. representatives; and
Advances or loans by the Kasambahay are vii. (g) Such other persons or entities as may be
not included in the definition of authorized by the Secretary.
deployment expenses. b. Public sectors engaged in the recruitment and
ix. (v) Employer refers to any person, placement of workers:
partnership, corporation or entity engaging i. Bureau of Local Employment (EO No. 797,
the services of a worker through the private May 1, 1982) - abolished by Bureau of
employment agency, and who is party to Employment Services
 ii. Public Employment Service Office (PESO) a. All pre-employment/recruitment violation cases
(RA 8759) which are administrative in character, involving or
iii. Philippine Overseas Employment Agency arising out of violations of Rules and Regulations
(POEA) (EO No. 797, May 1, 1982) - relating to licensing and registration, including
replaced Overseas Employment refund of fees collected from the workers or
Development Board and National Seamen violation of the conditions for issuance of license or
Board authority to recruit workers; and
c. Private Sectors engaged in the recruitment and b. Disciplinary action cases and other special cases,
placement of workers: which are administrative in character, involving
i. Private employment agency or agency employers, principals, contracting partners,
under DO No. 141-14, Series of 2014. violation and OFW’s processed by the POEA.
ii. Filipino Service Contractor, Manning 15. Venue on the filing of the complaint:
Agency, Principal, and Private a. On the first scenario, violation of which may be filed
Recruiting/Employment Agency under with the POEA Adjudication Office or at any
Omnibus IRR of RA 10022. DOLE/POEA Regional Office of the place where the
iii. Principal, License Manning Agency under complainant applied or was recruited, at the option
2016 Revised POEA Rules and Regulations of the complainant. The office where the complaint
Governing the recruitment and was first filed shall take cognizance of the case.
Employment of Seafarers. b. On the second scenario, violation of which shall be
iv. Foreign Placement Agency or FPA, Foreign filed with the POEA Adjudication Office.
Service Contractor/Staffing Agency, 16. Article 18. Ban on direct-hiring. No employer may hire a
Licensed Recruitment Agency and Principal Filipino worker for overseas employment except through
under POEA Rules and Regulations the Boards and entities authorized by the Secretary of
Governing the Recruitment and Labor. Direct-hiring by members of the diplomatic corps,
Employment of Landbased Overseas Filipino international organizations and such other employers as
Worker of 2016. may be allowed by the Secretary of Labor is exempted from
14. Jurisdiction of POEA - The POEA shall exercise original and this provision.
exclusive jurisdiction to hear and decide: a. Rule on direct-hiring - Direct-hiring is prohibited
b. Exceptions under RA 8042:
i. Direct-Hires - workers directly hired by
employers for overseas employment as
authorized by the Secretary of Labor and
Employment and processed by the POEA,
including:
 1. Those hired by international 5. 50% - Domestic and other service
organization workers
2. Those hired members of the 6. 50% - All other workers not falling
diplomatic corps under the aforementioned
3. Name hires or workers who are categories
able to secure overseas 7. 50% - Performing artists overseas
employment opportunity with an 17. Article 25. Private sector participation in the recruitment
employer without the assistance or and placement of workers. Pursuant to national
participation of any agency. development objectives and in order to harness and
c. Article 22. Mandatory remittance of foreign maximize the use of private sector resources and initiative
exchange earnings. It shall be mandatory for all in the development and implementation of a
Filipino workers abroad to remit a portion of their comprehensive employment program, the private
foreign exchange earnings to their families, employment sector shall participate in the recruitment and
dependents, and/or beneficiaries in the country in placement of workers, locally and overseas, under such
accordance with rules and regulations prescribed by guidelines, rules and regulations as may be issued by the
the Secretary of Labor. Secretary of Labor.
i. Under EO 857, it shall be mandatory for a. Who may participate in the Private sector:
every filipino contract worker abroad to i. Private employment agencies
remit regularly a portion of his foreign ii. Private recruitment entities
exchange earnings to his beneficiary in the iii. Shipping or manning agents or
Philippines through the Philippine Banking representatives
System: iv. Such other persons or entities as may be
1. 80% - Seamen or mariners authorized by the secretary
2. 70% - Worker of Filipino contractors 18. Article 26. Travel agencies prohibited to recruit. Travel
and construction companies agencies and sales agencies of airline companies are
3. 70% - Doctors, engineers, teachers, prohibited from engaging in the business of recruitment and
nurses, and other professional placement of workers for overseas employment whether
workers whose contracts provide for profit or not.
for free board and lodging. a. Disqualifications to engage in recruitment and
4. 50% - All other professional workers placement for landbased and seafarers overseas
whose employment contracts do employment:
not provide for free board and i. Travel agencies and sales agencies of airline
lodging facilities companies
 ii. Officers or members of the Board of any amended, and their implementing rules and
corporation or partners in a partnership regulations;
engaged in the business of a travel agency iii. Those agencies whose licenses have been
iii. Corporations and partnerships, where any cancelled, or those who, pursuant to the
of its officers, members of the board or Order of the Administrator, were included
partners is also an officer, member of the in the list of persons with derogatory record
board or partner of a corporation or for violation of recruitment laws and
partnership engaged in the business of a regulations.
travel agency 20. What is the citizenship required?
19. Derogatory Record (Rule II, Part I, Revised POEA Rules and - Article 27. Citizenship requirement. Only Filipino
Regulations Governing the Recruitment and Employment of citizens or corporations, partnerships or entities at
Landbased Overseas Filipino Worker of 2016 and Section least seventy-five percent (75%) of the authorized
3(g), Rule I Part II, 2016 Revised POEA Rules and Regulations and voting capital stock of which is owned and
Governing the Recruitment and Employment of Seafarers) controlled by Filipino citizens shall be permitted to
a. It refers to the resolution on the finding of probable participate in the recruitment and placement of
cause by the Department of Justice for illegal workers, locally or overseas.
recruitment of for other related crimes or offenses, - At least 75% of the authorized and voting capital
or a licensed recruitment agency whose license had stock of which is owned and controlled by Filipino
been cancelled or revoked by the POEA, including citizens, may engage in the business of recruitment
its proprietors, partners or officers, directors, and and placement of Filipino workers.
employees responsible for the commission of the 21. What is the capitalization required?
crime or offense. - Article 28. Capitalization. All applicants for
b. Those considered with derogatory records: authority to hire or renewal of license to recruit are
i. Those convicted, or against whom probable required to have such substantial capitalization as
cause or prima facie finding of guilt is determined by the Secretary of Labor.
determined by a competent authority, for - The sole proprietor and partnership shall have a
illegal recruitment, or for other related minimum capitalization of P5,000,000.00 and a
crimes or offenses committed in the course minimum paid up capital of P5,000,00.00 in case of
of, related to, or resulting from, illegal corporation.
recruitment, or for crimes involving moral - Those with existing license shall, within 4 years from
turpitude; effectivity hereof, increase their capitalization or
ii. Those agencies whose licenses have been paid up capital, as the case may be to P5,000,000.00
revoked for violation of RA 8042, as at the rate of P750,000.00 every year.
amended, PD 442, as amended, RA 9208, as 22. What is the rule on non-transferability?
 - Article 29. Non-transferability of license or 24. Illegal recruitment under Art. 34 LC and RA 8042
authority. No license or authority shall be used
RA 8042 Labor Code
directly or indirectly by any person other than the
one in whose favor it was issued or at any place Applicable to Overseas Local recruitment
other than that stated in the license or authority be what kind of recruitment
transferred, conveyed or assigned to any other recruitment
person or entity. Any transfer of business address,
appointment or designation of any agent or Unlawful acts (a) To charge or (a) To charge or accept
representative including the establishment of accept directly or directly or indirectly, any
additional offices anywhere shall be subject to the indirectly any amount greater than that
prior approval of the Department of Labor. amount greater specified in the schedule
- No license shall be used, directly or indirectly, by than that specified of allowable fees
person other than the one whose favor it was in the schedule of prescribed by the
issued, nor at any place other than stated in the allowable fees Secretary of Labor, or to
license, nor such license be transferred, conveyed prescribed by the make a worker pay any
or assigned to any person or entity. Secretary of Labor amount greater than that
23. What is the effect of excessive charge? and Employment, actually received by him as
- It is illegal recruitment, under Sec. 6(a) of R.A. No. or to make a a loan or advance;
8042, to charge or accept directly or indirectly any worker pay or
amount greater than that specified in the schedule acknowledge any
of allowable fees prescribed by the Secretary of amount greater (b) To furnish or publish
Labor and Employment. This act is committed by than that actually any false notice or
any licensee or holder of authority and punishable received by him as information or document
under Sec. 7 of R.A. No. 8042. The administrative a loan or advance; in relation to recruitment
character of the violation is provided under Sec. 143 or employment;
[I(h)], Rule III, Part IV, of the Revised POEA Rules (b) To furnish or
and Regulations Governing Recruitment and publish any false (c) To give any false
Employment of Landbased Overseas Filipino Worker notice or notice, testimony,
of 2016. information or information or document
document in or commit any act of
relation to misrepresentation for the
recruitment or purpose of securing a
employment; license or authority under
this Code.
(c) To give any false order to offer him of workers in jobs harmful
notice, testimony, another unless the to public health or
information or transfer is designed morality or to the dignity
documentor to liberate a worker of the Republic of the
commit any act of from oppressive Philippines;
misrepresentation terms and
for the purpose of conditions of (g) To obstruct or attempt
securing a license employment; to obstruct inspection by
or authority under the Secretary of Labor and
the Labor Code, or (d) To induce or attempt (e) To influence or Employment or by his duly
for the purpose of to induce a worker already attempt to authorized representative;
documenting hired employed to quit his influence any
workers with the employment in order to person or entity (h) To fail to submit
POEA, which offer him to another not to employ any reports on the status of
include the act of unless the transfer is worker who has employment, placement
reprocessing designed to liberate the not applied for vacancies, remittance of
workers through a worker from oppressive employment foreign exchange earnings,
job order that terms and conditions of through his agency separation from jobs,
pertains to non- employment; or who has formed, departure and such other
existent work, work joined or matters or information as
different from the (e) To influence or to supported, or has may be required by the
actual overseas attempt to influence any contacted or is Secretary of Labor;
work, or work with person or entity not to supported by any
a different employ any worker who union or workers’
employer whether has not applied for organization; (i) To substitute or alter to
registered or not employment through his the prejudice of the
with the POEA; agency; (f) To engage in the worker, employment
recruitment or contracts approved and
(d) To induce or placement of verified by the
attempt to induce a workers in jobs Department of Labor from
worker already harmful to public the time of actual signing
employed to quit (f) To engage in the health or morality thereof by the parties up
his employment in recruitment or placement or to the dignity of to and including the
the Republic of the period of the expiration of worker,
Philippines; the same without the employment
approval of the contracts approved
(g) To obstruct or Department of Labor; and verified by the
attempt to obstruct Department of
inspection by the Labor and
Secretary of Labor Employment from
and Employment or (j) To become an officer or the time of actual
by his duly member of the Board of signing thereof by
authorized any corporation engaged the parties up to
representative; in travel agency or to be and including the
engaged directly or period of the
(h) To fail to submit indirectly in the expiration of the
reports on the management of a travel same without the
status of agency; and approval of the
employment, Department of
placement Labor and
vacancies, Employment;
remittance of (k) To withhold or deny
foreign exchange travel documents from (j) For an officer or
earnings, applicant workers before agent of a
separation from departure for monetary or recruitment or
jobs, departure and financial considerations placement agency
such other matters other than those to become an
or information as authorized under this officer or member
may be required by Code and its implementing of the Board of any
the Secretary of rules and regulations. corporation
Labor and (Art. 34) engaged in travel
Employment; agency or to be
engaged directly or
(i) To substitute or indirectly in the
alter to the management of a
prejudice of the travel agency;
 processing for
(k) To withhold or purposes of
deny travel deployment, in
documents from case where the
applicant workers deployment does
before departure not actually take
for monetary or place without the
financial worker’s fault; and
considerations, or
for other reasons, (n) To allow a non-
other than those Filipino citizen head
authorized under or manage a
the Labor Code and licensed
its implementing recruitment/manni
Rules and ng agency. (Sec. 6
Regulations; (a-n))

(l) Failure to Committed by By any person, Non-licensees or non-

actually deploy a whom whether a non- holders or authority (Art.
contracted worker licensee, non- 38 (a)) or if by a licensee
without valid holder of authority, or holder of authority
reason as licensee or holder (Art. 34) it is with a
determined by the of authority. (Sec. different penalty.
Department of 6)
Labor and
Employment; When it is It is illegal When committed by non-
considered as recruitment, licensees or non-holders
(m) Failure to illegal committed by any of authority
reimburse recruitment person, whether a - It is illegal
expenses incurred non-licensee, non- recruitment. (Art.
by the worker in holder of authority, 38(a))
connection with his licensee or holder
documentation and of authority. (Sec. When committed by
6) licensee or holder of
 authority scale) than 5 years or a
- It is not illegal - Life fine of not less
recruitment but a imprisonm than P10,000 nor
plain violation of ent and a more than
prohibited fine of not P50,000, or both
practices, declared less than such
unlawful by Art. P2,000,000 imprisonment and
34 and penalized .00 nor fine, at the
by Art. 288 of the more than discretion of the
Labor Code P5, court. (Art. 39 (b))
000,000.00
Penalty Simple Illegal When committed by non- . The
Recruitment: licensees, non-holders of maximum
- Imprisonm authority penalty
ent of not - Imprisonment of shall be
less than not less than 4 imposed if
12 years years nor more the person
and 1 day than 8 years or a illegally
but not fine of not less recruited is
more than than P20,000.00 less than
20 years nor more than 18 years of
and a fine P100,000 or both age or
not less such committed
than imprisonment and by a non-
P1,000,000 fine, at the licensee or
.00 nor discretion of the non-holder
more than court. (Art. 39 (c)) of
P2,000,000 authority.
.00. (Sec. 7 When committed by (Sec. 7 (b))
(a)) licensees, holders of
- authority In addition to If the offender is an When committed by non-
As Economic - Imprisonment of penalties alien, he or she licensees, non-holders of
Sabotage (By not less than 2 shall, in addition to authority
syndicate/large years nor more the penalties, be - If such officer is an
 deported without alien, he shall be Courts and RTC (Art. 288)
further deported without
proceedings. In further Persons - Principal;
every case, proceedings. (Art. responsible - Accomplice
conviction shall 39 (d)) s; and
cause and carry the - Accessories
automatic When committed by
revocation of the licensees or holder of 25. Article 35. Suspension and/or cancellation of license or
license or authority authority. The Minister of Labor shall have the power to
registration of the - If such officer is an suspend or cancel any license or authority to recruit
recruitment/manni alien, he shall be employees for overseas employment for violation of rules
ng agency, lending deported without and regulations issued by the Ministry of Labor, the
institutions, further Overseas Employment Development Board, or for violation
training school or proceedings. (Art. of the provisions of this and other applicable laws, General
medical clinic. (Sec. 39 (d)) Orders and Letters of Instructions.
7 (b)) - In every case, a. What is the rule on authority to cancel or suspend
conviction shall license and authority?
cause and carry - In the case of Trans Action Overseas Corp.,
the automatic the power to suspend or cancel any license
revocation of or authority to recruit employees for
license or overseas employment is vested upon the
authority and all Secretary of Labor and Employment as
the permits and provided by Art. 35 of the Labor Code. The
privileges granted DOLE has concurrent jurisdiction over these
to such person or cases.
entity under this 26. What is the regulatory power of the SOLE?
Title, and the a. Art. 36. Regulatory Power. - The Secretary of Labor
forfeiture of the shall have the power to restrict and regulate the
cash and surety recruitment and placement activities of all agencies
bonds in favor of within the coverage of this Title and is hereby
the POEA. (Art. 39 authorized to issue orders and promulgate rules
(e)) and regulations to carry out the objectives and
implement the provision of this Title.
Jurisdiction RTC Concurrent Municipal/City
 - Jurisdiction of DOLE to suspend or cancel under Article 39 of this Code. The Department of Labor and
license or authority Employment or any law enforcement officer may initiate
- The concurrent jurisdiction of the DOLE and complaints under this Article.
the POEA. (b) Illegal recruitment when committed by a syndicate or in
27. What is the Visitorial Power of the SOLE? large scale shall be considered an offense involving
a. Art. 37. Visitorial Power. - The Secretary of Labor of economic sabotage and shall be penalized in
his duly authorized representatives may, at any accordance with Article 39 hereof.
time, inspect the premises, books of accounts and Illegal recruitment is deemed committed by a syndicate
records of any person or entity covered by this Title, if carried out by a group of three (3) or more persons
require it to submit reports regularly on prescribed conspiring and/or confederating with one another in
forms, and act on violation of any provisions of this carrying out any unlawful or illegal transaction,
Title. enterprise or scheme defined under the first paragraph
- Inspect the premises, books of account and hereof. Illegal recruitment is deemed committed in
records of any person or entity by this Title. large scale if committed against three (3) or more
- Require it to submit reports regularly on persons individually or as a group.
prescribed forms. (c) The Secretary of Labor and Employment or his duly
- Act on violation of any provisions of this authorized representatives shall have the power to
Title. cause the arrest and detention of such non-licensee or
b. What is the effect of violation of visitorial power non-holder of authority if after investigation it is
aside from administrative penalty? determined that his activities constitute a danger to
- It is illegal recruitment under Sec. 6(g) of national security and public order or will lead to further
R.A. No. 8042 to obstruct or attempt to exploitation of job-seekers. The Secretary shall order
obstruct inspection by the SOLE or by his the search of the office or premises and seizure of
duly authorized representative, committed documents, paraphernalia, properties and other
by any person, whether a licensee or holder implements used in illegal recruitment activities and the
of authority or non-licensee or non-holder closure of companies, establishments and entities found
of authority and under Art. 34(g) in relation to be engaged in the recruitment of workers for
to Art. 38(a) of the Labor Code, when overseas employment, without having been licensed or
committed by non-licensees or non-holders authorized to do so.
of authority.
28. Art. 38. Illegal Recruitment.- (a) Any recruitment activities, a. What is illegal recruitment?
including the prohibited practices enumerated under Article - Any recruitment activities, including the
34 of this Code, to be undertaken by non-licensees or non- prohibited practices enumerated under
holders of authority, shall be deemed illegal and punishable Article 34 of this Code, to be undertaken by
 non-licensees or non-holders of authority, whether the activities of a non-licensee
shall be deemed illegal and punishable constitute a danger to national security and
under Article 39 of this Code. public order or will lead to further
b. What is illegal recruitment by a syndicate or in a exploitation of job seekers. For this
large scale under the Labor Code? purpose, the POEA Administrator of the
- Illegal recruitment when committed by a Regional Director concerned or their duly
syndicate or in large scale shall be authorized representatives, may examine
considered an offense involving economic personally the complaints and/or their
sabotage and shall be penalized in witnesses in the form of searching
accordance with Article 39 hereof. questions and answers and shall take their
- Illegal recruitment is deemed committed by testimony under oath. The testimony of the
a syndicate if carried out by a group of complainants and/or witnesses shall be
three (3) or more persons conspiring and/or reduced in writing and signed by them and
confederating with one another in carrying attested by an authorized officer.
out any unlawful or illegal transaction, - If based on a surveillance report, or
enterprise or scheme defined under the preliminary examination of the
first paragraph hereof. Illegal recruitment is complainants, the POEA Administrator or
deemed committed in large scale if DOLE Regional Director, or their authorized
committed against three (3) or more representative is satisfied that such danger
persons individually or as a group or exploitation exists, a written order shall
c. What are the remedies available for the victims be issued by the POEA Administrator for the
of IR? (P. 245-247) closure of the establishment being used for
i. Anti-illegal recruitment program illegal recruitment activity.
ii. Legal Assistance - In case of a business establishment whose
iii. Filing of complaints for IR license or permit to operate a business was
iv. Surveillance issued by the local government, the
v. Issuance of Closure Order Secretary of Labor and Employment, the
vi. Execution of Cease and Desist Order POEA Administrator or the Regional
vii. Execution Report Director concerned shall likewise
viii. Institution of Criminal Action recommend to the granting authority the
d. Who may issue closure order? immediate cancellation/revocation of the
- The POEA Administrator or the concerned license or permit to operate its business.
DOLE Regional Director may conduct an ex - Theory of imputed knowledge: The theory
parte preliminary examination to determine of imputed knowledge ascribes the
 knowledge of the agent, Sunace, to the i. It is deemed committed in large scale if
principal, employer Xiong, not the other committed against 3 or more persons
way around (Sunace Int’l Mgmt. Services individually or as a group.
Inc. v NLRC) i. Element of illegal recruitment in a large scale:
e. Illegal recruitment under RA 8042 i. The offender has no valid license or
- Illegal recruitment shall mean any act of authority required by law to enable him
canvassing, enlisting, contracting, to lawfully engage in recruitment and
transporting, utilizing or procuring workers placement of workers.
and includes referring, contract services, ii. The offender undertakes any of the
promising or advertising for employment activities within the meaning of
abroad, whether for profit or not, when “recruitment and placement” under
undertaken by non-licensee or non-holder Art. 13(b) of the Labor Code, or any of
of authority contemplated under Art. 13(f) the prohibited acts enumerated under
of PD 442 Art. 34 of the LC.
f. Illegal Recruitment constituting Economic iii. The offender committed the same
Sabotage against 3 or more persons, individually
- Illegal recruitment by a syndicate and illegal or as a group.
recruitment in a large scale are qualifying j. Other prohibited acts:
circumstances to constitute an offense i. "(1) Grant a loan to an overseas Filipino
involving economic sabotage. worker with interest exceeding eight
g. Element of illegal recruitment by a syndicate: percent (8%) per annum, which will be
i. The accused have no valid license or used for payment of legal and allowable
authority required by law to enable placement fees and make the migrant
them to lawfully engage in the worker issue, either personally or
recruitment and placement of workers. through a guarantor or accommodation
ii. The accused engaged in this activity of party, postdated checks in relation to
recruitment and placement by actually the said loan;
recruiting, deploying and transporting. ii. "(2) Impose a compulsory and exclusive
iii. Illegal recruitment was committed by arrangement whereby an overseas
three or more persons conspiring and Filipino worker is required to avail of a
confederating with one another. loan only from specifically designated
h. Illegal recruitment in a large scale, how institutions, entities or persons;
committed? iii. "(3) Refuse to condone or renegotiate a
loan incurred by an overseas Filipino
 worker after the latter's employment premium or other insurance related
contract has been prematurely charges, as provided under the
terminated through no fault of his or compulsory worker's insurance
her own; coverage.
iv. "(4) Impose a compulsory and exclusive k. Persons liable:
arrangement whereby an overseas i. The principals, accomplices and
Filipino worker is required to undergo accessories.
health examinations only from ii. In case of juridical persons, the officers
specifically designated medical clinics, having ownership, control,
institutions, entities or persons, except management or direction of their
in the case of a seafarer whose medical business who are responsible for the
examination cost is shouldered by the commission of the offense and the
principal/shipowner; responsible employees/agents thereof
v. "(5) Impose a compulsory and exclusive shall be liable.
arrangement whereby an overseas l. Penalty for simple illegal recruitment – an
Filipino worker is required to undergo imprisonment of not less than 12 years and 1
training, seminar, instruction or day but not more than 21 years; and a fine of
schooling of any kind only from not less than 1 million pesos nor more than 2
specifically designated institutions, million pesos.
entities or persons, except for m. Penalty for any prohibited acts – an
recommendatory trainings mandated imprisonment of not less than 6 years and one
by principals/shipowners where the day but not more than 12 years; and a fine of
latter shoulder the cost of such not less than P500,000.00 nor more than
trainings; P1,000,000.00
vi. "(6) For a suspended n. Penalty for illegal recruitment constituting
recruitment/manning agency to engage economic sabotage:
in any kind of recruitment activity i. Life imprisonment and a fine of not less
including the processing of pending than P2,000,00.00 nor more than
workers' applications; and P5,000,000.00
vii. "(7) For a recruitment/manning agency ii. Penalty if the person illegally recruited
or a foreign principal/employer to pass is less than 18 years of age committed
on the overseas Filipino worker or by a non-licensee or non-holder of
deduct from his or her salary the authority and the offender is alien: The
payment of the cost of insurance fees, maximum penalty shall be imposed.
 iii. If the offender is an alien, the additional
apprenticeship only in non-
penalty other than fine and
hazardous occupations;
imprisonment is deportation without
further proceedings.
(b) Be physically fit for the
o. Venue of criminal action for illegal recruitment
occupation in which he desires
under RA 8042:
to be trained;
i. The RTC of the province or city where
the offense was committed
(b) Possess vocational aptitude (c) Possess vocational aptitude
ii. Where the offended part actually
and capacity for appropriate and capacity for the particular
resides at the time of the commission of
tests; occupation as establishment
the crime.
through appropriate tests; and
p.
(c) Possess the ability to (d) Possess the ability to
29. Article 58. Definition of Terms. - As used in this Title:
comprehend and follow oral comprehend and follow oral
(a) “Apprenticeship” - practical training on the job supplemented by
and written instructions and written instructions.
related theoretical instruction.
(b) “Apprentice” - worker who is covered by a written
apprenticeship agreement with an individual employer or any of the 31. Article 60. Employment of apprentices. - Only employers in the
entities recognized under this Chapter. highly technical industries may employ apprentices and only in
(c) “Apprenticeable occupation” - any trade, form of employment or apprenticeable occupations approved by the Secretary of Labor and
occupation which requires more than 3 months of practical training Employment
on the job supplemented by related theoretical instruction. - “Highly Technical Industries” - trade, business, enterprise,
(d) “Apprenticeship agreement” - employment contract wherein the industry, or other activity, which is engaged in the
employer binds himself to train the apprentice and the apprentice application of advanced technology. (Section 2 (j), Rule VI,
in turn accepts the terms of training. Book II, Rules to Implement the Labor Code)

30. Qualifications of apprentice 32. Article 61. Contents of apprenticeship agreements. -

Apprenticeship agreements, including the wage rates of
apprentices, shall conform to the rules issued by the Secretary of
Art. 59 IRR
Labor and Employment. The period of apprenticeship shall not
(a) Be at least 14 years of age; (a) Be at least 15 years of age; exceed 6 months. apprenticeship agreements providing for wage
provided those who are at least start below 75% of the applicable minimum wage, may be entered
15 years of age but less than 18 into only in accordance with apprenticeship programs duly
may be eligible for approved by the Secretary of Labor and Employment. The
Department shall develop standard model programs of this incentive should pay his apprentices the minimum
apprenticeship. wage.
- Benefits of apprenticeship: the apprentices are entitled to 35. What is the compensation of apprentices?
receive a wage equivalent to 75% of the prevailing a. Article 72. Apprentices without compensation. The
minimum wage and other benefits including overtime pay. Secretary of Labor and Employment may authorize the
33. What is compulsory apprenticeship? hiring of apprentices without compensation whose training
a. Article 70. Voluntary organization of apprenticeship on the job is required by the school or training program
programs; exemptions. curriculum or as requisite for graduation or board
The organization of apprenticeship program shall be examination.
primarily a voluntary undertaking by employers; 36. What is a learner?
When national security or particular requirements of a. Article 73. Learners defined. Learners are persons hired
economic development so demand, the President of the as trainees in semi-skilled and other industrial occupations
Philippines may require compulsory training of apprentices which are non-apprenticeable and which may be learned
in certain trades, occupations, jobs or employment levels through practical training on the job in a relatively short
where shortage of trained manpower is deemed critical as period of time which shall not exceed three (3) months.
determined by the Secretary of Labor and Employment. b. Leaner is a person hired as a trainee in industrial
Appropriate rules in this connection shall be promulgated occupations which are non-apprenticeable and which may
by the Secretary of Labor and Employment as the need be learned through practical training on the job for a period
arises; and not exceeding 3 months, whether or not such practical
Where services of foreign technicians are utilized by private training is supplemented by theoretical instructions. (IRR)
companies in apprenticeable trades, said companies are c. Learners refer to persons hired as trainees in semi-
required to set up appropriate apprenticeship programs. skilled and other industrial occupations which are non-
34. What are the incentives given to employer? apprenticeable. Learnership programs must be approved by
a. Article 71. Deductibility of training costs. An additional Authority. (TESDA Act)
deduction from taxable income of one-half (1/2) of the d. Learners are persons hired as trainees in semi-skilled
value of labor training expenses incurred for developing the and other industrial occupations which are non-
productivity and efficiency of apprentices shall be granted apprenticeable.
to the person or enterprise organizing an apprenticeship 37. Distinctions between Apprenticeship and Learnership:
program: Provided, That such program is duly recognized by
the Department of Labor and Employment: Provided,
Distinctions Apprenticeship Learnership
further, That such deduction shall not exceed ten (10%)
percent of direct labor wage: and Provided, finally, That the As to agreement In apprenticeship, the In learnership, the
person or enterprise who wishes to avail himself or itself of agreement entered agreement entered
by the parties is by the parties is
 known as known as As to supplement The training on the The practical training
Apprenticeship Learnership on theoretical job is with on the job may or
Agreement Agreement instructions compulsory related may not be
theoretical supplemented by
As to period of The agreement shall The agreement instructions related theoretical
agreement not be less than 4 period shall not be instructions
months and not more more than 3 months
than 6 months As to reasons for the law did not The law provides the
hiring provide any reasons following reasons for
As to obligations The enterprise is not The enterprise is where an apprentice hiring:
to hire obliged to hire the obliged to hire the may be hired 1. When no
apprentice after the learner after the experienced workers
apprenticeship period learnership period are available
2. The
As to pre- Upon pre-termination A learner allowed or employment of
termination of of the agreement suffered to work learners is necessary
the agreement there is no regular during the first 2 to prevent
employment by months shall be curtailment of
operation of law deemed regular employment
employees if training opportunities
is terminated by the 3. The
employer before the employment does
end of the stipulated not create unfair
period through no competition in terms
fault of the learners of labor costs or
impair or lower
As to person The persons hired as The persons hired as
working standards
hired trainees are known as trainees are known
apprentice as learner As to 1. At least 15 The law did not
qualifications years of age provide such
2. Possess qualifications.
vocational aptitude However, reasons or
for appropriate tests justifications for
3. Posses the hiring are provided
 (a). Disabled Persons are those suffering from restriction of different
ability to by law.
abilities, as a result of a mental, physical or sensory impairment, to
comprehend and
perform an activity in the manner or within the range considered
follow oral and
normal for a human being;
written instructions
(b). Impairment is any loss, diminution or aberration of
and no justifications
psychological, physiological, or anatomical structure of function;
or reasons given by
(c). Disability shall mean (1) a physical or mental impairment that
law for hiring
substantially limits one or more psychological, physiological or
As to occupations The occupations The occupations anatomical function of an individual or activities of such individual;
involved involves “highly involved are semi- (2) a record of such an impairment; or (3) being regarded as having
technical industries” skilled and other such an impairment;
which means trade, industrial (d). Handicap refers to a disadvantage for a given individual
business, enterprise, occupations which resulting from an impairment or a disability, that limits or prevents
or other activity, are non- the functions or activity, that is considered normal given the age
which is engaged in apprenticeable and and sex of the individual;
the application of learnable (l). Qualified Individual with a Disability shall mean an individual
advanced technology occupations must be with a disability who, with or without reasonable accommodations,
and apprenticeable approved by TESDA can perform the essential functions of the employment position
occupation must be that such individual holds or desires. However, consideration shall
approved by TESDA be given to the employer’s judgement as to what functions of a job
are essential, and if an employer has prepared a written description
38. When learners may be hired? before advertising or interviewing applicants for the job, this
a. Article 74. When learners may be hired. Learners may description shall be considered evidence of the essential functions
be employed when no experienced workers are available, of the job;
the employment of learners is necessary to prevent 40. Article 79. When employable. Handicapped workers may be
curtailment of employment opportunities, and the employed when their employment is necessary to prevent
employment does not create unfair competition in terms of curtailment of employment opportunities and when it does not
labor costs or impair or lower working standards. create unfair competition in labor costs or impair or lower working
39. What is handicapped? standards.
- Article 78. Definition. Handicapped workers are those
whose earning capacity is impaired by age or physical or a. Equal opportunity for Employment:
mental deficiency or injury. - SECTION 5. Equal Opportunity for Employment
- Definitions under RA No. 7277: No disabled persons shall be denied access to
opportunities for suitable employment. A qualified
disabled employee shall be subject to the same
 terms and conditions of employment and the same entitled to an additional deduction, from their gross
compensation, privileges, benefits, fringe benefits, income, equivalent to twenty-five percent (25%) of
incentives or allowances as a qualified able-bodied the total amount paid as salaries and wages to
person. Five percent (5%) of all casual, emergency disabled persons: Provided, however, That such
and contractual positions in the Department of entities present proof as certified by the
Social Welfare and Development; Health; Department of Labor and Employment that disabled
Education, Culture and Sports; and other person are under their employ. Provided, further,
government agencies, offices or corporations That the disabled employee is accredited with the
engaged in social development shall be reserved for Department of Labor and Employment and the
disabled persons. Department of Health as to his disability, skills and
b. Wage rate of persons with disability qualifications.
- A qualified disbaled employee shall be subject to
the same terms and conditions of employment and (c). Private entities that improved or modify their
the same compensation, privileges, benefits, fringe physical facilities in order to provide reasonable
benefits, incentives or allowances as a qualified accommodation for disabled persons shall also be
able-bodied person. This means that persons wth entitled to an additional deduction from their net
disability are entitled 100% of the applicable taxable income, equivalent to fifty percent (50%) of
minimum wage. However, if they are employed as the direct costs of the improvements or
apprentices or learners their wage rate shall be not modifications. This section, however, does not apply
less than 75% of the applicable minimum wage. But to improvements or modifications of facilities
if they are employed as learners in piece or required under Batas Pambansa Bilang 344.
incentive-rate jobs they are entitled to be paid in
full or 100% of the minimum wage.
c. Incentives for employer Batch pa-edit na lang kung paano sa format dito sorry huhu
- SECTION 8. Incentives for Employer (a) To
encourage the active participation of the private Distinctions between Contracting and LOC (Art. 106)
sector in promoting the welfare of disabled persons Art. 106. Contractor or subcontractor. - Whenever an employer
and to ensure gainful employment for qualified
enters into a contract with another person for the performance
disabled persons, adequate incentives shall be
provided to private entities which employ disabled of the former’s work, the employees of the contractor and of
persons. the contractor and of the latter’s subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
(b). Private entities that employ disabled persons
xxx
who meet the required skills or qualifications, either
as regular employee, apprentice or learner, shall be
There is “labor-only” contracting where the person supplying
contractor/subcontractor places workers to perform a
worker to an employer does not have substantial capital or job, work or service for a
the performance of
investment in the form of tools, equipment, machineries, work principal.
completion of a specific job,
premises, among others, and the workers recruited and placed
work or service within a
by such person are performing activities which are directly
definite or predetermined
related to the principal business of such employer. In such
period, regardless of whether
cases, the person or intermediary shall be considered merely
such job, work or service is to
as an agent of the employer who shall be responsible to the
be performed or completed
workers in the same manner and extent as if the latter were
within or outside the premises
directly employed by him.
of the principal.
Elements of LOC:
1. The contractor/subcontractor does not have A person is considered In labor-only contracting, the
substantial capital or investment to actually perform engaged in legitimate job following elements are
the job, work, or service under its own account and contracting/subcontracting present:
responsibility; and if the following conditions 1. The
2. The employees recruited, supplied or placed by such concur: contractor/subcontra
contractor/subcontractor perform activities which are 1. The ctor does not have
directly related to the main business of the principal. contractor/subcontra substantial capital or
Distinction of Job Contracting/Subcontracting and LOC ctor carries on a investment to
distinct and actually perform the
independent business job, work, or service
Job LOC
and undertakes to under its own
Contracting/Subcontracting
perform the job, work account and
Permissible job In contrast, labor-only or service on its own responsibility; and
contracting/subcontracting contracting, a prohibited account and under 2. The employees
refers to an arrangement act, is an arrangement
its own responsibility recruited, supplied or
where the
whereby a principal agrees according to its own placed by such
contractor/subcontractor
to put out or farm out to a manner and method, contractor/subcontra
merely recruits, supplies or
 and free from the ctor perform activities and welfare benefits.
control and direction which are directly
of the principal in all related to the main
matters connected business of the DO No. 174-17, Sec. 3. Definition of terms.
with the performance principal. (a) “Bond” - refers to the bodn under Art. 108 of the
of the work except as Labor Code that the principal may require from the contractor
to the result thereof; to be posted equal to the cost of labor under contract.
2. The (b) “Cabo” - refers to a person or group of persons or to
contractor/subcontra labor group which, under the guise of a labor organization,
ctor has substantial cooperative or any entity, supplies workers to an employer,
capital or investment; with or without any monetary or other consideration, whether
and in the capacity of an agent of the employer or as an
3. The agreement ostensible independent contractor.
between the (c) “Contracting” or “Subcontracting” - refers to an
principal and arrangement whereby a principal agrees to farm out to a
contractor/subcontra contractor the performance or completion of a specific job or
ctor assures the work within a definite or predetermined period, regardless of
contractual whether such job work is to be performed or completed within
employees or outside the premises of the principal.
entitlement to all (f) “In-house agency” - refers to a contractor which is
labor and owned, managed, or controlled directly or indirectly by the
occupational safety principal or one where the principal or any of its officers
and health standards, own/represents any equity or interest, and which operates
free exercise of the solely or mainly for the principal.
right to self- (g) “In-house cooperative” - refers to a cooperative
organization, security which is managed, or controlled directly or indirectly by the
of tenure, and social principal or one where the principal or any of its officers
owns/represents any equity or interest, and which operates
solely or mainly for the principal.
(k) “Solidary liability” - refers to the liability of the
principal, pursuant to the provision of Art. 109 of the Labor
Code, as direct employer together with the contractor for any
violation of any provision of the Labor Code.
It also refers to the liability of the principal, in the same
manner and extent that he/she is liable to his/her direct
employees, to the extent of the work performed under the
contract when the contractor fails to pay the wages of his/her
employees, as provided in Art. 106 of the LC, as amended.
(l) “Substantial capital” - refers to paid-up capital
stock/shares at least P5,000,000.00 in the case of corporations,
partnerships and cooperatives; in the case of single
proprietorship, a net worth of at least P5,000,000.00.

Rule on solidary liability (Sec. 9)

- In the event of any violation of any provision of the LC,
including the failure to pay wages, there exists a
solidary liability on the part of the principal and the
contractor for purposes of enforcing the provisions of
the LC and other social legislations, to the extent of the
work performed under the employment contract