RA 7277 – An Act Providing For The
Rehabilitation, Self-Development And
Self-Reliance Of Disabled Person And
Their Integration Into The Mainstream Of
Society And For Other Purposes.
Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro Manila
Fifth Regular Session
BEGUN AND HELD IN METRO MANILA, ON MONDAY, THE TWENTY SECOND DAY
OF JULY, NINETEEN HUNDRED AND NINETY-ONE.
Republic Act No. 7277
AN ACT PROVIDING FOR THE REHABILITATION, SELF-DEVELOPMENT AND
SELF-RELIANCE OF DISABLED PERSON AND THEIR INTEGRATION
INTO THE MAINSTREAM OF SOCIETY AND FOR OTHER PURPOSES.
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:
TITLE ONE GENERAL PROVISIONS
CHAPTER I Basic Principle
SECTION 1. Title: This Act shall be known and cited as the Magna Carta for
Disabled Persons.
SECTION 2. Declaration of Policy: The grant of the rights and privileges for disabled
persons shall be guided by the following principles:
(a). Disabled persons are part of the Philippine society, thus the Senate shall give full
support to the improvement of the total well-being of disabled persons and their
integration into the mainstream of society.
Toward this end, the State shall adopt policies ensuring the rehabilitation, self-
development and self-reliance of disabled persons.
It shall develop their skills and potentials to enable them to compete favorably for
available opportunities.
(b). Disabled persons have the same rights as other people to take their proper place in
society. They should be able to live freely and as independently as possible. This must
be the concern of everyone the family, community and all government and non-
government organizations. Disabled person’s rights must never be perceived as welfare
services by the Government.
(c). The rehabilitation of the disabled persons shall be the concern of the Government in
order to foster their capability to attain a more meaningful, productive and satisfying life.
To reach out to a greater number of disabled persons, the rehabilitation services and
benefits shall be expanded beyond the traditional urban-based centers to community
based programs, that will ensure full participation of different sectors as supported by
national and local government agencies.
(d). The State also recognizes the role of the private sector in promoting the welfare of
disabled persons and shall encourage partnership in programs that address their needs
and concerns.
(e). To facilitate integration of disabled persons into the mainstream of society, the State
shall advocate for and encourage respect for disabled persons. The State shall exert all
efforts to remove all social, cultural, economic, environmental and attitudinal barriers
that are prejudicial to disabled persons.
SECTION 3. Coverage: This Act shall covers all disabled persons and, to the extend
herein provided, departments, offices and agencies of the National Government or non-
government organization involved in the attainment of the objectives of this Act.
SECTION 4. Definition of Terms: For purposes of this Act, these terms are defined as
follows:
(a). Disabled Persons are those suffering from restriction of different abilities, as a result
of a mental, physical or sensory impairment, to perform an activity in the manner or
within the range considered normal for a human being;
(b). Impairment is any loss, diminution or aberration of psychological, physiological, or
anatomical structure of function;
(c). Disability shall mean (1) a physical or mental impairment that substantially limits one
or more psychological, physiological or anatomical function of an individual or activities
of such individual; (2) a record of such an impairment; or (3) being regarded as having
such an impairment;
(d). Handicap refers to a disadvantage for a given individual resulting from an
impairment or a disability, that limits or prevents the functions or activity, that is
considered normal given the age and sex of the individual;
(e). Rehabilitation is an integrated approach to physical, social, cultural, spiritual,
educational and vocational measures that create conditions for the individual to attain
the highest possible level of functional ability;
(f). Social Barriers refer to the characteristics of institutions, whether legal, economic,
cultural, recreational or other, any human group, community, or society which limit the
fullest possible participation of disabled persons in the life of the group. Social barriers
include negative attitudes which tends to single out and exclude disabled persons and
which distort roles and interpersonal relationship;
(g). Auxiliary Aids and Services include:
1) qualified interpreters or other effective methods of delivering materials to individuals
with hearing impairments;
2) qualified readers, taped tests, or other effective methods of delivering materials to
individuals with visual impairments;
3) acquisition or modification of equipment or devices; and
4) other similar services and actions or all types of aids and services that facilitate the
learning process of people with mental disability;
(h). Reasonable Accommodation include (1) improvement of existing facilities used by
employees in order to render these readily accessible to and usable by disabled
persons; and (2) modification of work schedules, reassignment to a vacant position,
acquisition or modification of equipment or devices, appropriate adjustments or
modifications of examinations, training materials or company policies, rules and
regulations, the provisions of auxiliary aids and services, and other similar
accommodations for disabled persons;
(i). Sheltered Employment refers to the provision of productive work for disabled
persons through workshop providing special facilities, income producing projects or
homework schemes with a view to given them the opportunity to earn a living thus
enabling them to acquire a working capacity required in open industry.
(j). Auxiliary Social Services are the supportive activities in the delivery of social
services to the marginalized sectors of society;
(k). Marginalized Disabled Persons refer to disabled persons who lack access to
rehabilitative services and opportunities to be able to participate fully in socioeconomic
activities and who have no means of livelihood or whose incomes fall below poverty
threshold;
(l). Qualified Individual with a Disability shall mean an individual with a disability who,
with or without reasonable accommodations, can perform the essential functions of the
employment position that such individual holds or desires. However, consideration shall
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 before advertising or interviewing
applicants for the job, this description shall be considered evidence of the essential
functions of the job;
(m). Readily Achievable means a goal can be easily attained and carried out without
much difficulty or expense. In determining whether an action is readily achievable,
factors to be considered include
1) the nature and cost of the action;
2) the overall financial resources of the facility or facilities involved in the action; the
number of persons employed at such facility; the effect on expenses and resources, or
the impact otherwise of such action upon the operation of the facility;
3) the overall financial resources of the covered entity with respect to the number of its
employees; the number, type and location of its facilities; and
4) the type of operation or operations of the covered entity, including the composition,
structure and functions of the work force of such entity; the geographic separateness,
administrative or fiscal relationship of the facilities in question to the covered entity;
(n). Public Transportation means transportation by air, land and sea that provides the
public with general or special service on a regular and continuing basis;
(o). Covered entity means employer, employment agency, labor organization or joint
labor-management committee; and
(p). Commerce shall be taken to mean a s travel, trade, traffic, commerce,
transportation, or communication among the provinces or between any foreign country
or any territory or possession and any province.
TITLE TWO RIGHTS AND PRIVILEGES OF DISABLED PERSONS
CHAPTER I – Employment
SECTION 5. Equal Opportunity for Employment : 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 compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qualified able-bodied
person. Five percent (5%) of all casual, emergency and contractual positions in the
Department of Social Welfare and Development; Health; Education, Culture and Sports;
and other government agencies, offices or corporations engaged in social development
shall be reserved for disabled persons.
SECTION 6. Sheltered Employment : If suitable employment for disabled persons
cannot be found through open employment as provided in the immediately preceding
Section, the State shall endeavor to provide it by means of sheltered employment. In
the placement of disabled persons in sheltered employment, it shall accord due regard
to the individual qualities, vocational goals and inclinations to ensure a good working
atmosphere and efficient production.
SECTION 7. Apprenticeship : Subject to the provision of the Labor Code as amended,
disabled persons shall be eligible as apprentices or learners; Provided, That their
handicap is not much as to effectively impede the performance of job operations in the
particular occupation for which they are hired; Provided, further, That after the lapse of
the period of apprenticeship if found satisfactory in the job performance, they shall be
eligible for employment.
SECTION 8. Incentives for Employer :
(a) To encourage the active participation of the private sector in promoting the welfare
of disabled persons and to ensure gainful employment for qualified disabled persons,
adequate incentives shall be provided to private entities which employ disabled
persons.
(b). Private entities that employ disabled persons who meet the required skills or
qualifications, either as regular employee, apprentice or learner, shall be entitled to an
additional deduction, from their gross income, equivalent to twenty-five percent (25%) of
the total amount paid as salaries and wages to disabled persons: Provided, however,
That such entities present proof as certified by the Department of Labor and
Employment that disabled person are under their employ. Provided, further, That the
disabled employee is accredited with the Department of Labor and Employment and the
Department of Health as to his disability, skills and qualifications.
(c). Private entities that improved or modify their physical facilities in order to provide
reasonable accommodation for disabled persons shall also be entitled to an additional
deduction from their net taxable income, equivalent to fifty percent (50%) of the direct
costs of the improvements or modifications. This section, however, does not apply to
improvements or modifications of facilities required under Batas Pambansa Bilang 344.
SECTION 9. Vocational Rehabilitation : Consistent with the principle of equal
opportunity for disabled workers and workers in general, the State shall take appropriate
vocational rehabilitation measures that shall serve to develop the skills and potential of
disabled persons and enable them to compete favorably for available productive and
remunerative employment opportunities in the labor market. The State shall also take
measures to ensure the provisions of vocational rehabilitation and livelihood services for
disabled persons in the rural areas. In addition, it shall promote cooperation and
coordination between the government and non-government organization and other
private entities engaged in vocational rehabilitation activities.
The Department of Social Welfare and Development shall design and implement
training programs that will provide disabled persons with vocational skills to enable them
to engage in livelihood activities or obtain gainful employment. The Department of Labor
and Employment shall likewise design and conduct training programs geared towards
providing disabled persons with skills for livelihood.
SECTION 10. Vocational Guidance and Counselling : The Department of Social Welfare
and Development shall implement measures providing and evaluating vocational
guidance and counselling to enable disabled persons to secure, retain and advance in
employment. It shall ensure the availability and training counsellors and other suitability
qualified staff responsible for the vocational guidance and counselling of disabled
persons.
SECTION 11. Implementing Rules and Regulations : The Department of Labor and
Employment shall in coordination with the Department of Social Welfare and
Development (DSWD) and National Council for the Welfare of Disabled Persons
(NCWDP), shall promulgate the rules and regulations necessary to implement the
provision under this Chapter.
CHAPTER 2 – Education
SECTION 12. Access to Quality Education : The State shall ensure that disabled
persons are provided with adequate access to quality education and ample
opportunities to develop their skills. It shall take appropriate steps to make such
education accessible to all disabled persons. It shall be unlawful for any learning
institutions to deny a disabled person admission to any course it offers by reason of
handicap or disability. The State shall take into consideration the special requirements
of disabled persons in the formulation of education policies and program. It shall
encourage learning institutions to take into account the special needs of disabled
persons with respect to the use of school facilities, class schedules, physical education
requirements and other pertinent consideration. The State shall also promote the
provision by learning institutions, of auxiliary services that will facilitate the learning
process for disabled persons.
SECTION 13. Assistance to Disabled Students : The State shall provide financial
assistance to economically marginalized but deserving disabled students pursuing post
secondary or tertiary education. Such assistance may be in the form of scholarship
grants, student loan programs, subsidies, and other incentives to qualified disabled
students in both public and private schools. At least five percent (5%) of the allocation
for the Private Education Student Financial Assistance Program created by virtue of
R.A. 6728 shall be set aside for disabled students pursuing vocational or technical and
degree courses.
SECTION 14. Special Education : The State shall establish, maintain and support a
complete, adequate and integrated system of special education for the visually
impaired, hearing impaired, mentally retarded persons and other type of exceptional
children in all regions of the country. Towards this end, the Department of Education,
Culture and Sports shall establish special education classes in public schools in cities,
or municipalities. It shall also establish, where viable, Braille and Record Libraries in
provinces, cities or municipalities. The National Government shall allocate funds
necessary for the effective implementation of the special education program nationwide.
Local government units may likewise appropriate counterpart funds to supplement
national funds.
SECTION 15. Vocational or Technical and Other Training Programs : The State provide
disabled persons with training in civics, vocational efficiency, sports and physical
fitness, and other skills. The Department of Education, Culture and Sports shall
establish in at least one government-owned vocational and technical school in every
province a special vocational and technical training program for disabled persons. It
shall develop and implement sports and physical fitness program specifically designed
for disabled persons taking into consideration the nature of their handicap.
SECTION 16. Non-Formal Education : The State shall develop nonformal education
programs intended for the total human development of disabled persons. It shall provide
adequate resources for non-formal education programs and projects that cater to the
special needs of disabled persons.
SECTION 17. State Universities and Colleges : If viable and needed, the State
Universities or State Colleges in each region or province shall be responsible for (a) the
development of material appliances and technical aids for disabled persons; (b) the
development of training materials for vocational rehabilitation and special education
instructions; and (c) the research on special problems, particularly of the visually-
impaired, hearing-impaired, and orthopedically-impaired students, mentally retarded,
and multi-handicapped and other, and the elimination of social barriers and
discrimination against disabled persons; and (d) inclusion of the Special Education for
Disabled (SPED) course in the curriculum. The National Government shall provide
these state universities and colleges with the necessary special facilities for visually-
impaired, hearing impaired, speech impaired, and orthopedically-impaired students. It
shall likewise allocate the necessary funds in support of the above.
CHAPTER 3 – Health
SECTION 18. National Health Program : The Department of Health, in coordination with
National Council for the Welfare of Disabled Persons, shall institute a national health
program which shall aim to attain the following:
(a). prevention of disability, whether occurring prenatally or post-natally;
(b). recognition and early diagnosis of disability; and
(c). early rehabilitation of the disabled.
SECTION 19. Rehabilitation Centers : The Department of Health shall establish medical
rehabilitation centers in government provincial hospitals, and shall include it annual
appropriation the necessary funds for the operation of such centers. The Department of
Health shall formulate and implement a program to enable marginalized disabled
persons to avail of free rehabilitation services in government hospitals.
SECTION 20. Health Services : The State shall protect and promote the right to health
of disabled persons and shall adopt an integrated and comprehensive approach to their
health development which shall make essential health services available to them at
affordable cost. The National Government shall provide an integrated health service for
disabled persons which shall include, but not limited to, the following:
(a). prevention of disability through immunization, nutrition, environmental protection
and preservation, and genetic counselling; and early detection of disability and timely
intervention to arrest disabling condition; and
(b). medical treatment and rehabilitation. The Department of Health shall field medical
personnel specializing in the treatment and rehabilitation of disabled persons to
provincial hospitals and, when viable, to municipal health centers. It shall also train its
field health personnel in the provision of medical attention to disabled persons. It shall
further ensure that its field health units have the necessary capabilities to fit prosthetic
and orthotic appliances on disabled persons.
CHAPTER 4 Auxiliary Social Services
SECTION 21. Auxiliary Social Services : The State shall ensure that marginalized
persons are provided with the necessary auxiliary services that will restore their social
functioning and participation in community affairs. Toward this end, the Department of
Social Welfare and Development shall develop and implement programs on auxiliary
social services that respond to the needs of marginalized disabled persons. The
components of such a program shall be as follows:
(a). assistance in the acquisition of prosthetic devices and medical intervention of
specialty services;
(b). provision of specialized training activities designed to improved functional limitations
of disabled persons related to communications skills;
(c). development among disabled persons of a positive self-image through the provision
of counselling, orientation and mobility and strengthening daily living capability;
(d). provision of family care services geared towards developing the capability of
families to respond to the needs of the disabled members of the family;
(e). provision of substitute family care services and the facilities therefore for
abandoned, neglected, abused and unattached disabled persons who need custodial
care;
(f). provision of after care and follow-up services for the continued rehabilitation in a
community-based setting of disabled persons who were released from the residential
care or rehabilitation center; and
(g). provision of day care services for disabled children of pre-school age.
CHAPTER 5 – Telecommunications
SECTION 22. Broadcast Media : Television stations shall be encouraged to provide a
sign language inset or subtitles in at least one (1) newscast program a day and special
program covering events of national significance.
SECTION 23. Telephone Services : All telephone companies shall be encouraged to
install special telephone devices or units for the hearing-impaired and ensure that they
are commercially available to enable them to communicate through the telephone
system.
SECTION 24. Free Postal Charges for the Disabled : Postal charges shall be free on
the following:
(a). article and literature like books and periodicals, orthopedic and other devices, and
teaching aids for the use of the disabled sent by mail within the Philippines and abroad;
and
(b). aids and orthopedic devices for the disabled sent abroad by mail for repair;
Provided, That the aforesaid items are for personal purposes only: Provided further,
That the disabled person is a marginalized disabled as certified by the Social Welfare
and Development Office of the local government unit concerned or the Department of
Social Welfare and Development.
CHAPTER 6 – Accessibility
SECTION 25. Barrier-Free Environment : The State shall ensure the attainment of a
barrier-free environment that will enable disabled persons to have access in public and
private buildings and establishments and such other places mentioned in Batas
Pambansa Bilang 344, otherwise known as the Accessibility Law. The national and
local government shall allocate funds for the provision of architectural or structural
features for disabled persons in government buildings and facilities.
SECTION 26. Mobility : The State promote the mobility of disabled persons. Disabled
persons shall be allowed to drive motor vehicles, subject to the rules and regulations
issued by the Land Transportation Office pertinent to the nature of their disability and
the appropriate adaptations or modifications made on such vehicles.
SECTION 27. Access to Public Transport Facilities : The Department of Social Welfare
and Development shall develop a program to assist marginalized disabled persons gain
access in the use of public transport facilities. Such assistance may be in the form of
subsidized transportation fare. The said department shall also allocate such funds as
may be necessary for the effective implementation of the public transport program for
the disabled persons. The Accessibility Law as amended, shall be made supplementary
to this Act.
SECTION 28. Implementing Rules and Regulations : The Department of Transportation
and Communications shall formulate the rules and regulations necessary to implement
the provision of this Chapter.
CHAPTER 7 Political and Civil Rights
SECTION 29. System of Voting : Disabled persons shall be allowed to be assisted by a
person of his choice in voting in the national or local elections. The person thus chosen
shall prepare ballot for the disabled voter inside the voting booth. The person assisting
shall bind himself in a formal document under oath to fill out the ballot strictly in
accordance with the instructions of the voter and not to reveal the contents of the ballot
prepared by him. Violation of this provision shall constitute an election offense. Polling
places should be made accessible to disabled persons during the national or local
elections.
SECTION 30. Right to Assemble : Consistent with the provisions of the Constitution, the
State shall recognize the right of disabled persons to participate in processions, rallies,
parades, demonstrations, public meetings, and assemblages or other forms of mass or
concerted action held in public.
SECTION 31. Right to Organize : The State recognize the rights of disabled persons to
form organizations or associations that promote their welfare and advance or safeguard
their interests. The National Government, through its agencies, instrumentalities and
subdivisions, shall assist disabled persons in establishing self-help organizations by
providing them with necessary technical and financial assistance. Concerned
government agencies and offices shall establish close linkages with organizations of
disabled persons in order to respond expeditiously to the needs of disabled persons.
National line agencies and local government units shall assist disabled persons in
setting up specific projects that will be managed like business propositions. To ensure
the active participation of disabled persons in the social economic development of the
country, their organizations shall be encouraged to participate in the planning,
organization and management of government programs and projects for disabled
persons. Organizations of disabled persons shall participate in the identification and
preparation of programs that shall serve to develop employment opportunities for the
disabled persons.
TITLE THREE PROHIBITION ON DISCRIMINATION AGAINST DISABLED
PERSONS
CHAPTER 1 Discrimination on Employment
SECTION 32. Discrimination on Employment : No entity, whether public or private, shall
discriminate against a qualified disabled person by reason of disability in regard to job
application procedures, the hiring, promotion, or discharge of employees, employee
compensation, job training, and other terms, conditions, and privileges of employment.
The following constitute acts of discrimination:
(a). Limiting, segregating or classifying a disabled job applicant in such a manner that
adversely affects his work opportunities;
(b). Using qualification standards, employment tests or other selection criteria that
screen out or tend to screen out a disabled person unless such standards, tests or other
selection criteria are shown to be jobrelated for the position on question and are
consistent with business necessity;
(c). Utilizing standards, criteria, or methods of administration that:
1). have the effect of discrimination on the basis of disability; or
2). perpetuate the discrimination of others who are subject to common administrative
control;
(d). Providing less compensation, such as salary, wage or other forms of remuneration
and fringe benefits, to a qualified disabled employee, by reason of his disability, than the
amount to which a non-disabled person performing the same work is entitled;
(e). Favoring a non-disabled employee over a qualified disabled employee with respect
to promotion, training opportunities, study and scholarship grants, solely on account of
the latter’s disability;
(f). Re-assigning or transferring a disabled employee to a job or position he cannot
perform by reason of his disability;
(g). Dismissing or terminating the services of a disabled employee by reason of his
disability unless the employer can prove that he impairs the satisfactory performance of
the work involve to the prejudice of the business entities; Provided, however, That the
employer first sought provide reasonable accommodations for disabled persons;
(h). Failing to select or administer in the effective manner employment tests which
accurately reflect the skills, aptitude or other factor of the disabled applicant or
employee that such test purports to measure, rather than the impaired sensory, manual
or speaking skills of such applicant or employee, if any; and
(i). Excluding disabled persons from membership in labor unions or similar organization.
SECTION 33. Employment Entrance Examination : Upon an offer of employment, a
disabled applicant may be subjected to medical examination, on the following
occasions:
(a). all entering employees are subjected to such an examination regardless of
disability;
(b). information obtained during the medical condition or history of the applicant is
collected and maintained on separate forms and in separate medical files and is treated
as a confidential medical record, Provided, however, That:
1). supervisors and managers may be informed regarding necessary restrictions on the
work or duties of the employees and necessary accommodations;
2). first aid and safety personnel my be informed, when appropriate, if the disability
might require emergency treatment;
3). government officials investigating compliance with this Act shall be provided relevant
information on request; and
4). the results of such examination are used only accordance with this Act.
CHPTER 2 Discrimination on Transportation
SECTION 34. Public Transportation : It shall be considered discrimination for the
franchises or operators and personnel of sea, land, and air transportation facilities to
charge higher fare or to refuse to convey a passenger, his orthopedic devices, personal
effects, and merchandise by reason of his disability.
CHAPTER 3 Discrimination on the Use of Public Accommodations and Services
SECTION 35. Public Accommodations and Services : For purposes of this Chapter,
public accommodations and services shall include the following:
(a). an inn, hotel, motel, or other place of lodging, except for an establishment located
within a building that contains not more than five (5) rooms for rent or hire and that is
actually occupied by the proprietor of such establishment as the residence of such
proprietor;
(b). a restaurant, bar or other establishment serving food or drink;
(c). a motion picture, theater, concert hall, stadium, or other place of exhibition or
entertainment;
(d). an auditorium, convention center, lecture hall, or other place of public gathering;
(e). a bakery, grocery store, hardware store, shopping center, or other sales or rental
establishment;
(f). a bank, barber-shop, beauty-shop, travel service, funeral parlor, gas station, office of
a lawyer, pharmacy, insurance office, professional office of a health care provider,
hospital or other service establishment;
(g). a terminal, depot, or other station used for specified public transportation;
(h). a museum, gallery, library or other place of public display or collection;
(i). a park, zoo, amusement park, or other place of recreation;
(j). a nursery, elementary, secondary, undergraduate, or post-graduate private school,
or other place of education;
(k). a gymnasium, health spa, bowling alley, golf course; or
(l). other place of exercise or recreation.
SECTION 36. Discrimination on the Use of Public Accommodations
(a) No disabled persons shall be discriminated on the basis of disability in the full and
equal enjoyment of the goods, services, facilities, privileges, advantages or
accommodations of any place of public accommodation by any person who owns,
leases, or operates a place of public accommodation. The following constitute acts of
discrimination:
1). denying a disabled person, directly through contractual, licensing, or other
arrangement, the opportunity to participate in or benefit from the goods, services,
facilities, privileges, advantages, or accommodations of an entity by reason of his
disability;
2). affording a disabled person, on the basis of his disability, directly or through
contractual, licensing, or other arrangement, with the opportunity to participate in or
benefit from a good, service, facility, privilege, advantage, or accommodation that is not
equal to that afforded to other able-bodied persons; and
3). providing disability, directly or through contractual, licensing, or other arrangement,
with a good, service, facility, advantages, privilege, or accommodation that is different or
separate from that provided to other able-bodied persons unless such action is
necessary to provide the disabled person with a good, service, facility, advantage,
privilege or accommodation, or other opportunity that is as effective as that provided to
others;
For purpose of this section, the term individuals or class individuals refers to the clients
or customers of the covered public accommodation that enters into the contractual,
licensing or other arrangement.
(b). Integrated Settings : Goods, services, facilities, advantages, and accommodations
shall be afforded to an individual with a disability in the most integrated setting
appropriate to the needs of the individual.
(c). Opportunity to Participate : Not withstanding the existence of separate or different
programs or activities provided in accordance with this section, an individual with a
disability shall not be denied the opportunity to participate in such programs or activities
that are not separate or different.
(d). Association : It shall be discriminatory to exclude or otherwise deny equal goods,
services, facilities, advantages, privileges, accommodations or other opportunities to an
individual or entity because of the known disability of an individual with whom the
individual or entity is known to have a relationship or association.
(e). Prohibitions : For purposes of this Section, the following shall be considered as
discriminatory.
1). The imposition or application of eligibility criteria that screen out or tend to screen out
an individual with a disability or any class or individuals with disabilities from fully and
equally enjoying and goods, services, facilities, privileges, advantages,
accommodations, unless such criteria can be shown to be necessary for the provision of
the goods, services, facilities, privileges, or accommodations being offered;
2). A failure to make reasonable modifications in policies, practices, or procedures,
when such modification are necessary to afford such goods, services, facilities,
privileges, advantages or accommodations to individuals with disabilities, unless the
entity can demonstrate that making such modification would fundamentally alter the
nature of the goods, facilities, services, privileges, advantages, or accommodations;
3). Failure to take steps as may be necessary to ensure that no individual with disability
is excluded, denied services, segregated or otherwise treated differently than other
individuals because of the absence of auxiliary aids and services, unless the entity can
demonstrate that taking such steps would fundamentally alter the nature of the good,
service, facility, privilege or would result in undue burden;
4). A failure to remove architectural barriers, and communication barriers that are
structural in nature, in existing facilities, where such removal is readily achievable; and
5). Where an entity can demonstrate that the removal of a barrier under clause (4) is not
readily achievable, a failure to make such goods, services, facilities, privileges,
advantages, or accommodations available through alternative methods if such methods
are readily achievable.
SECTION 37. Use of Government Recreational or Sports Centers
Free of Charge : Recreational or sports centers owned or operated by the Government
shall be used, free of charge, by marginalized disabled persons during their social,
sports or recreation activities.
SECTION 38. Implementing Rules and Regulations : The Department of Public Works
and Highway shall formulate the rules and regulations necessary to implement the
provisions of this Chapter.
TITLE FOUR FINAL PROVISIONS
SECTION 39. Housing Program : The National Government shall take into
consideration in its national shelter programs the special housing requirement of
disabled persons.
SECTION 40. Role of National Agencies and Local Government Units : Local
government units shall promote the establishment of organizations of disabled persons
in their respective territorial jurisdictions. National agencies and local government units
may enter into joint ventures with organizations or associations of disabled persons to
explore livelihood opportunities and other undertaking that shall enhance the health,
physical fitness and the economic and social well-being of disabled persons.
SECTION 41. Support From Non-government Organizations : Non-government
organizations or private volunteer organizations dedicated to the purpose of promoting
and enhancing the welfare of disabled persons shall, as they, are hereby encouraged,
become partners of the Government in the implementation of vocational rehabilitation
measures and other related programs and projects. Accordingly, their participation in
the implementation of said measures, program and projects is to be extended all
possible support by the Government. The Government shall sponsor a volunteer service
program which shall harness the involvement of private individual in the provision of
assistance to disabled persons.
SECTION 42. Tax Incentives :
(a) Any donation, bequest, subsidy or financial aid which may be made to government
agencies engaged in the rehabilitation of disabled persons and organizations of
disabled persons shall be exempt form the donor’s tax subject to the provisions of
Section 94 of the National Internal Revenue Code (NIRC), as amended and shall be
allowed as deduction from the donor’s gross income for purposes of computing the
taxable income subject to the provisions of Section 29 (h) of the Code.
(b). Donations from foreign countries shall be exempt from taxes and duties on
importation subject to the provisions of Section 105 of the Tariff and Customs Code of
the Philippines, as amended, Section 103 of the NIRC, as amended and other relevant
laws and international agreements.
(c). Local manufacturing of technical aids and appliances used by disabled persons
shall be considered as a preferred area of investment subject to the provisions of
Executive Order No. 226 otherwise known as the Omnibus Investments Code of 1987
and, as such, shall enjoy the rights, privileges and incentives as provided in said Code
such as, but not limited, to the following:
1). repatriation of investments;
2). remittance of earnings;
3). remittance of payments on foreign contracts;
4). freedom from expropriations;
5). freedom from requisition of investment;
6). income tax holiday;
7). additional deduction for labor expense;
8). tax and duty exemption on imported capital equipment;
9). tax credit on domestic capital equipment;
10). exemption from contractor’s tax;
11). simplification of customs procedures;
12). unrestricted use of consigned equipment;
13). employment of foreign nationals;
14). tax credits for taxes and duties on raw materials;
15). access to bonded manufacturing/trading warehouse system;
16). exemption from taxes and duties on imported spare parts; and
17). Exemption from wharfage dues and any export tax, duty, impost and free.
SECTION 43. Continuity Clause : Should any department or agency tasked with the
enforcement or formulation of rules and regulations and guidelines for implementation of
any provisions of this Act is abolished, merge with another department or agency or
modified, such shall not affect the enforcement or formulation of rules, regulations and
guidelines for implementation of this Act to the effect that
(a). In case of abolition, the department or agency established to replace the abolished
department or agency shall take-over the functions under this Act of the abolished
department or agency.
(b). In case of the department or agency tasked with the enforcement of formulation of
rules, regulations and guidelines for implementation of this Act is merged with another
department or agency, the former shall continue the functions under this Act of the
merged department or agency.
(c). In case of modification, the department or agency modified shall continue the
functions under this Act of the department or agency that has undergone modification.
SECTION 44. Enforcement by the Secretary of Justice
(a). Denial of Right
1). Duty to Investigate : The Secretary of Justice shall investigate alleged violations of
this Act, and shall undertake periodic reviews of compliance of covered entities under
this Act.
(b). Potential Violations : If the Secretary of Justice has reasonable cause to believe that
1). any person or group of persons is engaged in a pattern of practice of discrimination
under this Act; or
2). any person or group of persons has been discriminated against under this Act and
such discrimination raises and issue of general public importance, the Secretary of
Justice may commence a legal action in any appropriate court.
SECTION 45. Authority of Court : The court may grant any equitable relief that such
court considers to be appropriate, including, to the extent required by this Act:
(a). granting temporary, preliminary or permanent relief;
(b). providing an auxiliary aid or service, modification of policy, practice or procedure, or
alternative method; and
(c). making facilities readily accessible to and usable by individuals with disabilities.
SECTION 46. Penal Clause :
(a) Any person who violates any provision of this Act shall suffer the following penalties:
1). for the first violation, a fine of not less than Fifty thousand pesos (P 50,000.00) but
not exceeding One hundred thousand pesos(P 100,000.00) or imprisonment of not less
than six (6) months but not more than two (2) years, or both at the discretion of the
court; and
2). for any subsequent violation, a fine of not less than One hundred thousand pesos (P
100,000.00) but not exceeding Two hundred thousand pesos (P 200,000.00) or
imprisonment for less than two (2) years but not more than six (6) years, or both at the
discretion of the court.
(b). Any person who abuses the privileges granted herein shall be punished with
imprisonment of not less than six (6) months or a fine of not less than Five thousand
pesos (P 5,000.00) but not more than Fifty thousand pesos (P 50,000.00), or both, at
the discretion of the court.
(c). If the violator is a corporation, organization or any similar entity, the officials thereof
directly involved shall be liable therefor.
(d). If the violator is an alien or a foreigner, he shall be deported immediately after
service of sentence without further deportation proceedings.
SECTION 47. Appropriations : The amount necessary to carry out the provision of this
Act shall be included in the General Appropriation Act of the year following its
enactment into law and thereafter.
SECTION 48. Separability Clause : Should any provision of this Act be found
unconstitutional by a court of law, such provisions shall be severed from the remainder
of the Act, and such action shall not affect the enforceability of the remaining provisions
of this Act.
SECTION 49. Repealing Clause : All laws, presidential decrees, executive orders and
rules and regulations inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.
SECTION 50. Effectivity : This Act shall take effect fifteen (15) days after its publication
in any two (2) newspaper of general circulation.
Approved:
THE LABOR CODE OF THE PHILIPPINES
PRESIDENTIAL DECREE NO. 442, AS AMENDED.
A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR
AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND
HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL
JUSTICE.
BOOK ONE
PRE-EMPLOYMENT
ART. 12. Statement of objectives. - It is the policy of the State:
a) To promote and maintain a state of full employment through improved manpower
training, allocation and utilization;
b) To protect every citizen desiring to work locally or overseas by securing for him the best
possible terms and conditions of employment;
c) To facilitate a free choice of available employment by persons seeking work in conformity
with the national interest;
d) To facilitate and regulate the movement of workers in conformity with the national
interest;
e) To regulate the employment of aliens, including the establishment of a registration
and/or work permit system;
f) To strengthen the network of public employment offices and rationalize the participation
of the private sector in the recruitment and placement of workers, locally and overseas, to
serve national development objectives;
g) To insure careful selection of Filipino workers for overseas employment in order to
protect the good name of the Philippines abroad.
Title I
RECRUITMENT AND PLACEMENT OF WORKERS
Chapter I
GENERAL PROVISIONS
ART. 13. Definitions. - (a) "Worker" means any member of the labor force, whether
employed or unemployed.
(b) "Recruitment and placement" refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers, and includes referrals, contract services,
promising or advertising for employment, locally or abroad, whether for profit or not:
Provided, That any person or entity which, in any manner, offers or promises for a fee,
employment to two or more persons shall be deemed engaged in recruitment and
placement.
(c) "Private fee-charging employment agency" means any person or entity engaged in
recruitment and placement of workers for a fee which is charged, directly or indirectly, from
the workers or employers or both.
(d) "License" means a document issued by the Department of Labor authorizing a person or
entity to operate a private employment agency.
(e) "Private recruitment entity" means any person or association engaged in the recruitment
and placement of workers, locally or overseas, without charging, directly or indirectly, any
fee from the workers or employers.
(f) "Authority" means a document issued by the Department of Labor authorizing a person
or association to engage in recruitment and placement activities as a private recruitment
entity.
(g) "Seaman" means any person employed in a vessel engaged in maritime navigation.
(h) "Overseas employment" means employment of a worker outside the Philippines.
(i) "Emigrant" means any person, worker or otherwise, who emigrates to a foreign country
by virtue of an immigrant visa or resident permit or its equivalent in the country of
destination.
ART. 14. Employment promotion. - The Secretary of Labor shall have the power and
authority:
(a) To organize and establish new employment offices in addition to the existing
employment offices under the Department of Labor as the need arises;
(b) To organize and establish a nationwide job clearance and information system to inform
applicants registering with a particular employment office of job opportunities in other parts
of the country as well as job opportunities abroad;
(c) To develop and organize a program that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation of workers from one
area to another; and
(d) To require any person, establishment, organization or institution to submit such
employment information as may be prescribed by the Secretary of Labor.
ART. 15. Bureau of Employment Services. - (a) The Bureau of Employment Services shall be
primarily responsible for developing and monitoring a comprehensive employment program.
It shall have the power and duty:
1. To formulate and develop plans and programs to implement the employment promotion
objectives of this Title;
2. To establish and maintain a registration and/or licensing system to regulate private
sector participation in the recruitment and placement of workers, locally and overseas, and
to secure the best possible terms and conditions of employment for Filipino contract workers
and compliance therewith under such rules and regulations as may be issued by the Minister
of Labor;
3. To formulate and develop employment programs designed to benefit disadvantaged
groups and communities;
4. To establish and maintain a registration and/or work permit system to regulate the
employment of aliens;
5. To develop a labor market information system in aid of proper manpower and
development planning;
6. To develop a responsive vocational guidance and testing system in aid of proper human
resources allocation; and
7. To maintain a central registry of skills, except seamen.
(b) The regional offices of the Ministry of Labor shall have the original and exclusive
jurisdiction over all matters or cases involving employer-employee relations including
money claims, arising out of or by virtue of any law or contracts involving Filipino workers
for overseas employment except seamen: Provided, That the Bureau of Employment
Services may, in the case of the National Capital Region, exercise such power, whenever the
Minister of Labor deems it appropriate. The decisions of the regional offices of the Bureau of
Employment Services, if so authorized by the Minister of Labor as provided in this Article,
shall be appealable to the National Labor Relations Commission upon the same grounds
provided in Article 223 hereof. The decisions of the National Labor Relations Commission
shall be final and inappealable. (Superseded by Exec. Order 797, May 1, 1982).
(c) The Minister of Labor shall have the power to impose and collect fees based on rates
recommended by the Bureau of Employment Services. Such fees shall be deposited in the
National Treasury as a special account of the General Fund, for the promotion of the
objectives of the Bureau of Employment Services, subject to the provisions of Section 40 of
Presidential Decree No. 1177.
ART. 16. Private recruitment. - Except as provided in Chapter II of this Title, no person or
entity other than the public employment offices, shall engage in the recruitment and
placement of workers.
ART. 17. Overseas Employment Development Board. - An Overseas Employment
Development Board is hereby created to undertake, in cooperation with relevant entities
and agencies, a systematic program for overseas employment of Filipino workers in excess
of domestic needs and to protect their rights to fair and equitable employment practices. It
shall have the power and duty:
1. To promote the overseas employment of Filipino workers through a comprehensive
market promotion and development program;
2. To secure the best possible terms and conditions of employment of Filipino contract
workers on a government-to-government basis and to ensure compliance therewith;
3. To recruit and place workers for overseas employment on a government-to-government
arrangement and in such other sectors as policy may dictate; and
4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund for
Overseas Workers.
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for overseas employment
except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international organizations and such other employers as may be
allowed by the Secretary of Labor is exempted from this provision.
ART. 19. Office of Emigrant Affairs. - (a) Pursuant to the national policy to maintain close ties with
Filipino migrant communities and promote their welfare as well as establish a data bank in aid of
national manpower policy formulation, an Office of Emigrant Affairs is hereby created in the
Department of Labor. The Office shall be a unit at the Office of the Secretary and shall initially be
manned and operated by such personnel and through such funding as are available within the
Department and its attached agencies. Thereafter, its appropriation shall be made part of the regular
General Appropriations Decree.
(b) The office shall, among others, promote the well-being of emigrants and maintain their
close link to the homeland by:
1) serving as a liaison with migrant communities;
2) provision of welfare and cultural services;
3) promote and facilitate re-integration of migrants into the national mainstream;
4) promote economic; political and cultural ties with the communities; and
5) generally to undertake such activities as may be appropriate to enhance such cooperative
links.
ART. 20. National Seamen Board. - (a) A National Seamen Board is hereby created which
shall develop and maintain a comprehensive program for Filipino seamen employed
overseas. It shall have the power and duty:
1. To provide free placement services for seamen;
2. To regulate and supervise the activities of agents or representatives of shipping
companies in the hiring of seamen for overseas employment and secure the best possible
terms of employment for contract seamen workers and secure compliance therewith;
3. To maintain a complete registry of all Filipino seamen.
(b) The Board shall have original and exclusive jurisdiction over all matters or cases
including money claims, involving employer-employee relations, arising out of or by virtue
of any law or contracts involving Filipino seamen for overseas employment. The decisions of
the Board shall be appealable to the National Labor Relations Commission upon the same
grounds provided in Article 223 hereof. The decisions of the National Labor Relations
Commission shall be final and inappealable.
ART. 21. Foreign service role and participation. - To provide ample protection to Filipino
workers abroad, the labor attaches, the labor reporting officers duly designated by the
Secretary of Labor and the Philippine diplomatic or consular officials concerned shall, even
without prior instruction or advice from the home office, exercise the power and duty:
(a) To provide all Filipino workers within their jurisdiction assistance on all matters arising
out of employment;
(b) To insure that Filipino workers are not exploited or discriminated against;
(c) To verify and certify as requisite to authentication that the terms and conditions of
employment in contracts involving Filipino workers are in accordance with the Labor Code
and rules and regulations of the Overseas Employment Development Board and National
Seamen Board;
(d) To make continuing studies or researches and recommendations on the various aspects
of the employment market within their jurisdiction;
(e) To gather and analyze information on the employment situation and its probable trends,
and to make such information available; and
(f) To perform such other duties as may be required of them from time to time.
ART. 22. Mandatory remittance of foreign exchange earnings. - It shall be mandatory for all
Filipino workers abroad to remit a portion of their foreign exchange earnings to their
families, dependents, and/or beneficiaries in the country in accordance with rules and
regulations prescribed by the Secretary of Labor.
ART. 23. Composition of the Boards. - (a) The OEDB shall be composed of the Secretary of
Labor and Employment as Chairman, the Undersecretary of Labor as Vice-Chairman, and a
representative each of the Department of Foreign Affairs, the Department of National
Defense, the Central Bank, the Department of Education, Culture and Sports, the National
Manpower and Youth Council, the Bureau of Employment Services, a workers’ organization
and an employers’ organization and the Executive Director of the OEDB as members.
(b) The National Seamen Board shall be composed of the Secretary of Labor and
Employment as Chairman, the Undersecretary of Labor as Vice-Chairman, the Commandant
of the Philippine Coast Guard, and a representative each of the Department of Foreign
Affairs, the Department of Education, Culture and Sports, the Central Bank, the Maritime
Industry Authority, the Bureau of Employment Services, a national shipping association and
the Executive Director of the NSB as members.
The members of the Boards shall receive allowances to be determined by the Board which
shall not be more than P2,000.00 per month.
(c) The Boards shall be attached to the Department of Labor for policy and program
coordination. They shall each be assisted by a Secretariat headed by an Executive Director
who shall be a Filipino citizen with sufficient experience in manpower administration,
including overseas employment activities. The Executive Director shall be appointed by the
President of the Philippines upon the recommendation of the Secretary of Labor and shall
receive an annual salary as fixed by law. The Secretary of Labor shall appoint the other
members of the Secretariat.
(d) The Auditor General shall appoint his representative to the Boards to audit their
respective accounts in accordance with auditing laws and pertinent rules and regulations.
ART. 24. Boards to issue rules and collect fees. - The Boards shall issue appropriate rules
and regulations to carry out their functions. They shall have the power to impose and collect
fees from employers concerned, which shall be deposited in the respective accounts of said
Boards and be used by them exclusively to promote their objectives.
Chapter II
REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
ART. 25. Private sector participation in the recruitment and placement of workers. - Pursuant to
national development objectives and in order to harness and maximize the use of private sector
resources and initiative in the development and implementation of a comprehensive employment
program, the private employment sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and regulations as may be issued by the
Secretary of Labor.
ART. 26. Travel agencies prohibited to recruit. - Travel agencies and sales agencies of airline
companies are prohibited from engaging in the business of recruitment and placement of
workers for overseas employment whether for profit or not.
ART. 27. Citizenship requirement. - Only Filipino citizens or corporations, partnerships or entities at
least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and
controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of
workers, locally or overseas.
ART. 28. Capitalization. - All applicants for authority to hire or renewal of license to recruit
are required to have such substantial capitalization as determined by the Secretary of
Labor.
ART. 29. Non-transferability of license or authority. - No license or authority shall be used
directly or indirectly by any person other than the one in whose favor it was issued or at any
place other than that stated in the license or authority be transferred, conveyed or assigned
to any other person or entity. Any transfer of business address, appointment or designation
of any agent or representative including the establishment of additional offices anywhere
shall be subject to the prior approval of the Department of Labor.
ART. 30. Registration fees. - The Secretary of Labor shall promulgate a schedule of fees for the
registration of all applicants for license or authority.
ART. 31. Bonds. - All applicants for license or authority shall post such cash and surety
bonds as determined by the Secretary of Labor to guarantee compliance with prescribed
recruitment procedures, rules and regulations, and terms and conditions of employment as
may be appropriate.
ART. 32. Fees to be paid by workers. - Any person applying with a private fee-charging employment
agency for employment assistance shall not be charged any fee until he has obtained employment
through its efforts or has actually commenced employment. Such fee shall be always covered with the
appropriate receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.
ART. 33. Reports on employment status. - Whenever the public interest requires, the Secretary of
Labor may direct all persons or entities within the coverage of this Title to submit a report on the
status of employment, including job vacancies, details of job requisitions, separation from jobs,
wages, other terms and conditions and other employment data.
ART. 34. Prohibited practices. - It shall be unlawful for any individual, entity, licensee, or holder of
authority:
(a) To charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay
any amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under this Code.
(d) To induce or attempt to induce a worker already employed to quit his employment in
order to offer him to another unless the transfer is designed to liberate the worker from
oppressive terms and conditions of employment;
(e) To influence or to attempt to influence any person or entity not to employ any worker
who has not applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly
authorized representatives;
(h) To fail to file reports on the status of employment, placement vacancies, remittance of
foreign exchange earnings, separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor.
(i) To substitute or alter employment contracts approved and verified by the Department of
Labor from the time of actual signing thereof by the parties up to and including the periods
of expiration of the same without the approval of the Secretary of Labor;
(j) To become an officer or member of the Board of any corporation engaged in travel
agency or to be engaged directly or indirectly in the management of a travel agency; and
(k) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations other than those authorized under this Code and its
implementing rules and regulations.
ART. 35. Suspension and/or cancellation of license or authority. - The Minister of Labor shall
have the power to suspend or cancel any license or authority to recruit employees for
overseas employment for violation of rules and regulations issued by the Ministry of Labor,
the Overseas Employment Development Board, or for violation of the provisions of this and
other applicable laws, General Orders and Letters of Instructions.
Chapter III
MISCELLANEOUS PROVISIONS
ART. 36. Regulatory power. - The Secretary of Labor shall have the power to restrict and regulate the
recruitment and placement activities of all agencies within the coverage of this Title and is hereby
authorized to issue orders and promulgate rules and regulations to carry out the objectives and
implement the provisions of this Title.
ART. 37. Visitorial Power. - The Secretary of Labor or his duly authorized representatives
may, at any time, inspect the premises, books of accounts and records of any person or
entity covered by this Title, require it to submit reports regularly on prescribed forms, and
act on violation of any provisions of this Title.
ART. 38. Illegal recruitment. - (a) Any recruitment activities, including the prohibited
practices enumerated under Article 34 of this Code, to be undertaken by non-licensees or
non-holders of authority, shall be deemed illegal and punishable under Article 39 of this
Code. The Department of Labor and Employment or any law enforcement officer may
initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered
an offense involving economic sabotage and shall be penalized in accordance with Article 39
hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three
(3) or more persons conspiring and/or confederating with one another in carrying out any
unlawful or illegal transaction, enterprise or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed committed in large scale if committed against three
(3) or more persons individually or as a group.
(c) The Secretary of Labor and Employment or his duly authorized representatives shall
have the power to cause the arrest and detention of such non-licensee or non-holder of
authority if after investigation it is determined that his activities constitute a danger to
national security and public order or will lead to further exploitation of job-seekers. The
Secretary shall order the search of the office or premises and seizure of documents,
paraphernalia, properties and other implements used in illegal recruitment activities and the
closure of companies, establishments and entities found to be engaged in the recruitment of
workers for overseas employment, without having been licensed or authorized to do so.
ART. 39. Penalties. - (a) The penalty of life imprisonment and a fine of One Hundred Thousand Pesos
(P1000,000.00) shall be imposed if illegal recruitment constitutes economic sabotage as defined
herein;
(b) Any licensee or holder of authority found violating or causing another to violate any
provision of this Title or its implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than two years nor more than five
years or a fine of not less than P10,000 nor more than P50,000, or both such imprisonment
and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title found
violating any provision thereof or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not less than four years nor more
than eight years or a fine of not less than P20,000 nor more than P100,000 or both such
imprisonment and fine, at the discretion of the court;
(d) If the offender is a corporation, partnership, association or entity, the penalty shall be
imposed upon the officer or officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall, in addition to the penalties
herein prescribed, be deported without further proceedings;
(e) In every case, conviction shall cause and carry the automatic revocation of the license or
authority and all the permits and privileges granted to such person or entity under this Title,
and the forfeiture of the cash and surety bonds in favor of the Overseas Employment
Development Board or the National Seamen Board, as the case may be, both of which are
authorized to use the same exclusively to promote their objectives.