Art.

25: Private Sector Participation in the Recruitment and

Placement of Workers
POEAs Retained Jurisdiction

RA 8042 transferred from POEA to NLRC the jurisdiction over

OFWs claims arising from er-ee relationship
POEA retains original and exclusive jurisdiction over cases
involving violation of POEA rules and regulations, disciplinary
cases and other cases that are administrative in character
involving OFWs
POEA performs regulatory enforcement, and limited or special
adjudicatory functions

in the implementation of RA 8042 or any of their relatives

within the 4th civil degree
Art. 27: Citizenship Requirement to
Recruitment and Placement of Workers

Sec 4 (a) of EO 797 provides that POEA shall promulgate the

necessary rules and regulations to govern the exercise of the
adjudicatory functions of the POEA
power of subordinate legislation
- national legislature entrust to administrative agencies
the authority to issue rules to carry out the general
provisions of the statue due to its specialized activities
and peculiar problems

POEA Circulars Unenforceable for Lack of Publication

administrative rules and regulations must be published if its

purpose is t enforce or implement existing law pursuant to
valid delegation

Art. 26: Travel Agencies Prohibited to Recruit

travel agencies and sales agencies of airline companies are

prohibited
POEA Rule 1 Sec 2 also disqualify persons with derogatory
records such as those convicted for illegal recruitment or other
crimes involving moral turpitude
rule also prohibits any official or employee of DOLE, POEA,
OWWA, DFA and other government agencies directly involved

in

the

Filipino citizens or corporations, partnerships or entities at

least 75% f the authorized and voting stocks of which is owned
and controlled by Filipino citizens

Art. 28: Capitalization

Validity of POEA Regulations

Participate

private employment agency for local employment should

have a minimum networth of P200,000.00 in the case of single
proprietorship and partnership of a minimum paid up capital of
P500,000.00 in the case of a corporation
private recruitment or manning agency for overseas
employment should have a minimum capitalization of
P2,000,000.00 for single proprietorship or partnership and a
minimum paid up capital of P2,000,000.00 for corporation

Art. 29: Non Transferability of License or Authority

Place of Recruitment

GR: licensees or holders of authority or their duly authorized

representatives may undertake recruitment and placement
activity only at their authorized official addresses
most of them have their official addresses in Metro Manila
Under existing regulations, they may be allowed to conduct
provincial recruitment or job fairs only upon written authority
from POEA
- prior to the conduct of provincial recruitment, a copy of
the authority shall be presented to the DOLE? Regional
Director concerned
- recruitment activities are conducted under the
supervision of a DOLE employee or officer designated
by the Regional Director

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recruitment of workers for overseas employment

cannot be lawfully done on a house-to-house basis, in
residences or in secluded places

Art. 30: Registration Fees

Sec of Labor shall promulgate schedule of fees for the

registration of all applicants for license or authority

Art. 31: Bonds

as determined by Sec of Labor

Amount of Bond

Recruitment or Manning Agency for Overseas

Employment
Upon approval of the application for license, the applicant for
license to operate a private recruitment or manning agency
shall:
1. submit and Escrow Agreement in the amount of P1M,
with confirmation of escrow deposit with an accredited
reputable bank
2. post a surety bong in the amount of P100,000 from a
bonding company acceptable to the POEA and
Accredited with the Insurance Commission
surety bond shall cover the validity of the period of the license
and shall include the conditions that notice to the principal is
notice to the surety and that any judgment against the principal
in connection with matters falling under the jurisdiction of the
POEA or NLRC shall be binding and conclusive to the surety
bonds and escrows shall answer for all valid and legal claims
arising from violations of the conditions for the grant and use
of the license and/or accreditation and contracts of
employment
bonds and escrows also guarantee compliance with the
provisions of the Philippine laws and all liabilities that the
POEA may impose
Enforcement

POEA posses the power to enforce liability under cash or

surety bonds
Finnman Gen. Assurance v Innocencio
- Finnman claims that its liability under its own bond
shall be enforced by the Insurance Commission or by
regular courts (not by Sec of Labor or POEA)
- Held: His proposition is contrary with public policy
which requires prompt resolution of claim against
private recruitment and placement agencies. Cash and
surety bonds are required by the POEA precisely as a
means of ensuring prompt and effective recourse
against such companies when held liable for applicants
or workers claim

Apart from Appeal Bond

Bond required under Art 31 is different from Art 223

(renumbered as Art 229)
Art 223 is a requirement for the perfection of an appeal. It is
intended to insure the payment of the monetary award if the
judgment is affirmed on appeal
Art 31 are also intended to guarantee payment of all valid and
legal claims against employer, but these claims are not limited
to monetary awards to employees whose contract of
employment have been violated.
POEA can go against the bonds in Art 31 for violations of
recruiter of conditions for its license, the provisions of the
Labor Code, the rules of the POEA as well as the settlements
of other liabilities the recruiter may incur
therefore, recruitment agency who appeals a judgment of the
POEA or Labor Arbiter to the NLRC is still obliged to pst a
bond in an amount equivalent to the monetary award as
required by Art. 220 of the Labor Code (notwithstanding the
fact that it has already posted a bond under Art 31)

Garnishment of Bonds

bond under Art 21 is intended to answer only for employmentrelated claims and for violations of labor law

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therefore, it cannot be garnished to satisfy a claim of travel

agency against a recruitment agency as such as payment for
airline tickets used by the agencys recruits
though the liability may have been incurred in connection with
the business of recruiting or placing overseas workers, it is
definitely not one arising from violation of the conditions for the
grant and use of the license or authority and contracts of
employment
nor is it one arising from a violation of labor laws

Effect of a Valid Garnishment

as soon as an Order or Notice of Garnishment is served upon

the Bank, and the same is correspondingly earnmarked, the
deposit in escrow shall no longer be considered sufficient
POEA shall then require the recruitment or manning agency to
replenish its escrow deposit
Within 15 days from the date of receipt of notice from the
POEA that the bonds or deposit in escrow, or any part of it had
been garnished, the recruitment or manning agency shall
replenish the same
failure to replenish such bonds or deposit in escrow within the
said period shall cause the suspension of the license

Release of Cash Bond/ Deposit in Escrow

Recruitment Agency for Local Employment
private recruitment and placement agency for local
employment which voluntarily surrenders its license shall
be entitled to the refund of its deposited cash bond only
after posting a surety bond of similar amount from a
bonding company accredited to the Insurance
Commission
surety bond is valid for 3 years from the expiration of the
license
Recruitment or Manning Agency for Overseas
Employment
licensed recruitment or manning agency for overseas
employment which voluntarily surrenders its license shall
be entitled to the release of the deposit in escrow, only

after posting a surety bond of similar amount valid for 4

years from expiration of license and submission of
clearance from the NLRC and POEA
Law as Part of the Bond

it is a settled doctrine that the conditions of a bond specified

and required in the provisions of the statute or regulation
providing for the submission of the bond are incorporated or
built into all bonds tendered under that statute or regulation
even though not there set out in printers ink

Art. 32: Fees to be Paid by Workers

Chargeable Fees
Placement and Documentation Fees for Overseas
Employment
o Fees chargeable to Principals
1. visa fee
2. airfare
3. POEA processing fee
4. OWWA membership fee
o Fees chargeable to Workers
1. placement fee in an amount equivalent to 1 month
salary exclusive of
2. documentation costs
passport
NBI/police/brgy clearance
authentication
birth certificate
medicare
trade test, if necessary
inoculation, when required by host country
medical examination fees
Note: in case the recruitment agency agrees to
perform documentation services, the worker shall
pay only the actual costs of the document which
shall be covered by official receipts

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abovementioned placement and documentation costs are the

only authorized payments that may be collected from a hired
worker
no other charges in whatever form, manner or purpose, shall
be imposed on and be paid by the worker without prior
approval of the POEA
such fees shall be collected from a hired worker only after he
has obtained employment through the facilities of the
recruitment agency

For Recruitment or Manning Agency for Overseas

Employment
private recruitment or manning agency for overseas
employment shall charge their principals a service or manning
fee to cover services rendered in the recruitment and
placement of workers or seafarers
Refund of Fees

POEA has the power to order refund of illegally collected fees

implicit in its power to regulate the recruitment and placement
activities of all agencies is the award of appropriate relief to
the victims of the offenses committed by the respondent
agency or contractor
such relief includes the refund or reimbursement of such fees
as may have been fraudulently or otherwise illegally collected,
or such money, goods or services imposed and accepted in
excess of what is licitly prescribed

Art. 33: Reports on Employment Status

Sec of Labor may direct all persons or entities within the

coverage of this Title to submit a report on the status of
employment whenever the public interest requires

Art. 34: Prohibited Acts

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