Article 1. Name of Decree.

This Decree shall be known as the "Labor Code of the

Philippines".

Article 2. Date of effectivity. This Code shall take effect six (6) months after its
promulgation.

Article 3. Declaration of basic policy. The State shall afford protection to labor,
promote full employment, ensure equal work opportunities regardless of sex, race or
creed and regulate the relations between workers and employers. The State shall
assure the rights of workers to self-organization, collective bargaining, security of
tenure, and just and humane conditions of work.

Article 4. Construction in favor of labor. All doubts in the implementation and

interpretation of the provisions of this Code, including its implementing rules and
regulations, shall be resolved in favor of labor.

Article 5. Rules and regulations. The Department of Labor and other government
agencies charged with the administration and enforcement of this Code or any of its
parts shall promulgate the necessary implementing rules and regulations. Such rules
and regulations shall become effective fifteen (15) days after announcement of their
adoption in newspapers of general circulation.

Article 6. Applicability. All rights and benefits granted to workers under this Code
shall, except as may otherwise be provided herein, apply alike to all workers, whether
agricultural or non-agricultural. (As amended by Presidential Decree No. 570-A,
November 1, 1974)

Article 13. Definitions.

"Worker" means any member of the labor force, whether employed or unemployed.

"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.

"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.

"License" means a document issued by the Department of Labor authorizing a person

or entity to operate a private employment agency.
"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.

"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.

"Seaman" means any person employed in a vessel engaged in maritime navigation.

"Overseas employment" means employment of a worker outside the Philippines.

"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.

Article 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.

Article 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.

Article 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.

Article 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.

Article 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.
Article 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.

Article 34. Prohibited practices. It shall be unlawful for any individual, entity,
licensee, or holder of authority:

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;

To furnish or publish any false notice or information or document in relation to

recruitment or employment;

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.

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;

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;

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;

To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly

authorized representatives;

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.

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;

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
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.

Article 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

Article 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.

Article 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.

Article 38. Illegal recruitment.

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.

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.

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.