August 5, 2025 5.

Regulation of recruitment and

placement activities
Module 2 a. L.C.; POEA Charter
Introduction to Labor Law: (Executive Order No. 247,
Fundamental Principles and Concepts series of 1987, as
& Recruitment and Placement of amended by R.A. 9422),
Workers Department of Migrant
Workers (DMW) Charter
R.A. 11641 (2021)
A. Legal Basis 6. Regulatory authorities
1. International Documents a. Department of Migrant
a. ILO Ratifications Workers
2. 1987 Constitution b. Regulatory and visitorial
3. Civil Code powers of the
4. Labor Code (L.C.) Department of the
Migrant Workers
B. Recruitment and Placement Secretary, R.A. No. 11641
1. Local employment and overseas 7. Ban on direct hiring Case:
employment; R.A. No. 8042 (1) Questcore, Inc. v. Bumanglag,
(1995) as amended by R.A. No. G.R. No. 253020, (07 December
1022 (2010); R.A. 10706 (2015); R.A. 2022)
11641 (2021) 8. Entities prohibited from
2. Revised POEA Rules and recruiting
regulations Governing the 9. Suspension or cancellation of
Recruitment and Employment license or authority
of Land based Overseas Filipino 10. Prohibited practices
Workers (2016); 2016 Revised
POEA Rules and Regulations C. Illegal Recruitment
Governing the Recruitment and L.C.; R.A. 8042 as amended by R.A. No.
Employment of Seafarers 10022
3. Parties 1. Elements and Types
a. Worker 2. Illegal recruitment as
b. Migrant worker or OFW distinguished from estafa
c. Private Employment
Agency D. Liability of local recruitment
d. Private Recruitment agency and foreign employer
Entity R.A.8042, as amended by R.A. 10022
e. License/Authority 1. Solidary liability
4. Definition of recruitment and 2. Theory of imputed knowledge
placement
● L.C., R.A. 8042, as amended
Guide questions:
 1. What is the status of an “Offer conditions of employment" which is
of Employment” which did not "processed by the POEA".
pass through the POEA?
Irregular/Undocumented Status:
Such an offer is invalid and not Workers whose employment contracts
binding on the worker. Under were not processed by the POEA (or
Philippine law, an OFW’s employment subsequently verified and registered
contract must be approved by the on-site by the Philippine Overseas
POEA. The Supreme Court held that Labor Office (POLO)) are explicitly
an “offer of employment” executed categorized as
abroad without POEA review “is "irregular/undocumented Filipino
invalid” and contrary to the migrant workers".
Constitution’s protection of migrant
workers. Prohibited Act and Serious Offense:
In other words, a foreign employer Deploying workers whose
cannot bypass the POEA. employment and travel documents
were not processed by the
Here's what the sources indicate about Administration is considered a serious
its status: offense punishable by cancellation of
Definition of Contracted Worker: A license for a recruitment agency. It is
"contracted worker" (or "contracted also listed as an act constituting illegal
seafarer") is defined as a Filipino recruitment to "give any false notice,
worker whose employment contract testimony, information or document or
has been processed by the POEA for commit any act of misrepresentation
overseas deployment. This implies for the purpose of documenting hired
that an offer or contract not workers with the POEA".
processed by the POEA does not Ban on Direct Hires (with exemptions):
result in a "contracted worker" Generally, no employer is allowed to
status. directly hire an Overseas Filipino
Worker (OFW) for overseas
Definition of Employment Contract: employment. While there are specific
For land-based workers hired by exemptions (e.g., members of
private recruitment agencies, an diplomatic corps, international
employment contract is an "individual organizations, or certain
written agreement between the professionals/skilled workers), these
foreign principal/employer and the still require registration by the
worker based on the master Administration upon submission of
employment contract approved by the specific documents and are subject to
Administration". For seafarers, it refers POEA awareness of the terms and
to the "POEA-prescribed contract conditions.
containing the minimum terms and
In essence, an "Offer of Employment" lawyer is not a placement agency, the
that bypasses the POEA is not act of keeping an OFW’s passport over
recognized as legitimate for deploying unpaid fees would violate this
Filipino workers overseas and is provision and ethical rules. In short, the
associated with illegal recruitment lawyer cannot lawfully keep the
activities and severe administrative passport as security.
penalties for the involved agencies.
No, a lawyer may not retain a
1.1 May the existence of an client's passport for outstanding
employer-employee payables.
relationship be established The act of withholding or
absent a valid contract/offer of denying travel documents from
employment? How? applicant workers (including seafarers)
Yes. Courts determine an for monetary or financial
employment relationship by the considerations (other than those
factual elements – specifically authorized by law) is
selection/engagement of the worker, explicitly classified as illegal
payment of wages, the employer’s recruitment [185(k), 214(k), 286(k), 75(l),
power of dismissal, and the employer’s 587(l)].
control over the worker’s performance Key points from the sources
In SRL International v. Yarza, the SC include:
applied these four factors and found ● This prohibition applies
an employer–employee relationship regardless of whether the
despite the invalid contract person committing the act is a
Thus, even without a formal non-licensee or a licensee
POEA-approved contract, an OFW’s (holder of authority).
hiring can be recognized based on ● The phrase "other than those
these realities. authorized under the Labor
Code and its implementing
2. May a lawyer retain a client’s rules and regulations" sets a
passport because the latter strict limit on permissible
and his agency had reasons for withholding
outstanding payables at the documents. Lawyer's fees for
former’s law office? outstanding payables are not
No. Withholding travel listed as an authorized reason.
documents for money is unlawful. RA ● For recruitment agencies,
8042 (S6[k]) expressly prohibits "Withholding or denying release
“withhold[ing] or den[ying] travel of travel or other pertinent
documents from applicant workers documents from a worker
before departure for monetary or despite demand" is considered a
financial considerations” not less serious offense, punishable
authorized by law. Even though a by suspension of license up to
 cancellation, and includes the for all money claims (wages, benefits,
accessory penalty of return of damages, etc.) of the worker. They
the documents (or refund of must both respond for 100% of any
their cost). award. If the agency is a corporation or
● While the "Seafarers Protection partnership, its corporate officers,
Act" (R.A. No. 10706) specifically directors and partners are likewise
targets "ambulance chasing" by “jointly and solidarily liable” with the
persons soliciting claims from agency. (The Supreme Court has
seafarers for excessive fees, and clarified that such personal liability of
limits attorney's fees to 10% of officers is not automatic; there must be
the award, this act relates to the a finding that they were negligent or
pursuit of claims and not “remiss” in directing the agency’s
directly to the retention of travel affairs.
documents for general Under Republic Act No. 10022, which
outstanding payables to a law amended Republic Act No. 8042
office. The illegal recruitment (Migrant Workers and Overseas
provisions, however, directly Filipinos Act of 1995), the nature of
address the retention of travel liability for claims is as follows:
documents. • Principal/Employer and
Therefore, retaining a client's Recruitment/Placement Agency: Their
passport due to outstanding payables liability for any and all claims arising
to a law office falls under the out of the implementation of the
prohibited acts of illegal recruitment, employment contract involving
as it involves withholding travel Filipino workers for overseas
documents for unauthorized monetary deployment is joint and several. This
considerations. provision is a condition precedent for
3. What is the nature of the the approval of the overseas
liability of the employment contract and must be
principal/employer and the incorporated into the contract itself.
recruitment/placement ◦ The performance bond filed by the
agency for claims under R.A. recruitment/placement agency is
10022? How about the answerable for all money claims or
corporate officers and damages awarded to the workers.
directors and partners if the ◦ This liability continues during the
recruitment and placement entire period or duration of the
agency is a juridical being? employment contract and is not
The law makes their liability joint and affected by any substitution,
several (solidary) for all claims arising amendment, or modification of the
from the employment contract. RA contract, whether made locally or in a
10022 (amending RA 8042) provides foreign country.
that the principal and the licensed • Corporate Officers and Directors and
agency are “joint and several[ly] liable” Partners (if juridical being): If the
recruitment/placement agency is a required; mere performance of these
juridical being (e.g., a corporation or acts by an unauthorized person
partnership), the corporate officers and suffices.
directors and partners, as the case may The elements of illegal recruitment in a
be, shall themselves be jointly and large scale are comprehensively
solidarily liable with the corporation or outlined in "People v. Ramos and
partnership for the aforementioned Ojastro" and other sources:
claims and damages. 1. Absence of Valid License or Authority:
This legal principle is consistently The offender has no valid license or
reiterated across the relevant sources, authority required by law to lawfully
including the "2016 Revised POEA engage in the recruitment and
Rules and Regulations Governing the placement of workers. This is explicitly
Recruitment and Employment of shown through certifications from the
Seafarers", the "Revised POEA Rules POEA.
And Regulations.pdf" for land-based ◦ "Non-licensee" refers to a person,
workers, and applied in judicial partnership, or corporation without a
decisions like "Seafarer's Injury: valid license, or whose license has
Work-Related and Compensable". been revoked, cancelled, expired, or
delisted.
4. What are the elements of 2. Engagement in Recruitment and
illegal recruitment? Placement Activities: The offender
Illegal recruitment (RA 8042 S6) undertakes any of the activities falling
occurs when a person “canvasses, under the meaning of "recruitment
enlists, contracts, transports, utilizes, and placement" as defined in the
hires or procures” workers for overseas Labor Code (Article 13(b)) or any of the
employment (or refers/promises prohibited practices enumerated
employment abroad) without a license under Section 6 of Republic Act No.
or authority. Key elements are: (a) 8042 (as amended by R.A. No. 10022).
performing one of those recruitment ◦ "Recruitment and placement"
acts (or offering/promise of involves acts such as canvassing,
employment) and (b) doing so as a enlisting, contracting, transporting,
non-licensee or non-holder of utilizing, hiring, or procuring workers,
authority. Under RA 8042, even and includes referrals, contract
“offering or promising for a fee services, promising or advertising for
employment abroad to two or more employment, locally or abroad,
persons” makes one deemed engaged whether for profit or not. A person
in recruitment. The statute also lists offering or promising for a fee
specific prohibited acts (charging employment abroad to two or more
excess fees, falsifying documents, persons is deemed engaged in
failing to deploy, withholding recruitment and placement.
documents, etc.) that constitute illegal ◦ Prohibited acts (even by licensees)
recruitment. No criminal intent is include, but are not limited to:
 ▪ Charging excessive fees or ▪ Failure to actually deploy a
making a worker pay more than contracted worker without valid reason
received as a loan/advance [185(a), [185(l), 214(l), 286(l), 587(m)].
211(a), 283(a), 582(a)]. ▪ Failure to reimburse expenses for
▪ Furnishing false information or non-deployment due to no fault of the
documents related to recruitment or worker [185(m), 215(m), 287(m), 588(n)].
employment [185(b), 211(b), 283(b), ▪ Allowing a non-Filipino citizen to
583(b)]. head or manage an agency [215(n),
▪ Misrepresentation for securing a 287(n), 588(o)].
license or documenting hired workers, ▪ Imposing compulsory loans from
including reprocessing for designated institutions, or compulsory
non-existent work or different health examinations/trainings from
employers/work [211(c), 283(c), 583(d)]. designated entities (unless costs are
▪ Inducing an employed worker to shouldered by employer/principal) [216,
quit for another offer, unless to liberate 217, 218, 288, 289, 290, 588(p-t)].
from oppressive terms [185(d), 212(d), ▪ Suspended agencies engaging in
284(d), 584(e)]. recruitment [218, 290, 591(u)].
▪ Influencing entities not to ▪ Passing on insurance costs to
employ workers not through their OFWs or deducting them from salary
agency or who are part of unions [219, 290, 591(v)].
[185(e), 212(e), 284(e), 585(f)]. 3. Against Three or More Persons: The
▪ Recruiting for jobs harmful to offender commits any of the acts of
public health, morality, or the dignity of recruitment and placement against
the Philippines [185(f), 212(f), 284(f), three or more persons, individually or
585(g)]. as a group.
▪ Obstructing inspection [185(g), Differentiate illegal recruitment
213(g), 285(g), 585(h)]. committed by a syndicate as opposed
▪ Failing to submit required reports to illegal recruitment committed in
[185(h), 213(h), 285(h), 586(i)]. large scale.
▪ Substituting or altering Both illegal recruitment committed by
employment contracts to the worker's a syndicate and illegal recruitment
prejudice without approval [185(i), committed in large scale are
213(i), 285(i), 586(j)]. considered offenses involving
▪ Agency officers/agents becoming economic sabotage, which carry stiffer
officers/members of travel agencies penalties, including life imprisonment
[185(j), 214(j), 286(j), 586(k)]. and higher fines. The maximum
▪ Withholding or denying travel penalty is imposed if the victim is less
documents for unauthorized than eighteen (18) years of age or if the
monetary/financial reasons [185(k), offense is committed by a non-licensee
214(k), 286(k), 587(l)]. or non-holder of authority.
Here's the key differentiation:
• Illegal Recruitment Committed by a are considered offenses involving
SYNDICATE: economic sabotage, which carries
◦ This refers to the number of stiffer penalties. The distinction lies in
perpetrators involved. the nature of the act:
◦ It is deemed committed by a • Illegal Recruitment Committed by a
syndicate if carried out by a group of Syndicate: This is deemed committed
three (3) or more persons conspiring or when the illegal recruitment activities
confederating with one another. are carried out by a group of three (3)
◦ The focus is on the conspiracy or more persons conspiring or
among multiple individuals to commit confederating with one another.
illegal recruitment. • Illegal Recruitment Committed in
• Illegal Recruitment Committed in Large Scale: This is deemed committed
LARGE SCALE: if the illegal recruitment is perpetrated
◦ This refers to the number of victims. against three (3) or more persons
◦ It is deemed committed in large individually or as a group.
scale if committed against three (3) or In essence, "by a syndicate" refers to
more persons individually or as a the number of perpetrators involved in
group. the conspiracy, while "in large scale"
◦ The focus is on the scope of the refers to the number of victims of the
illegal activity affecting multiple illegal recruitment act.
victims.
6. What are the elements of
5. Differentiate illegal large-scale illegal recruitment?
recruitment committed by a There are two core elements: (1)
syndicate as opposed to illegal the acts constituting illegal
recruitment committed in recruitment (as defined above); and (2)
large scale. it was committed against at least three
The distinction is number of (3) persons (individually or as a group).
offenders vs. number of victims. Under In other words, three or more victims
RA 8042, illegal recruitment is “by a were recruited illegally.
syndicate” when committed by three The offender has no valid license or
or more persons conspiring together. It authority required by law to lawfully
is “in large scale” when the illegal engage in the recruitment and
recruitment is committed against placement of workers.
three or more persons (individually or • The offender undertakes any of the
as a group). Both elevate the offense to activities falling within the meaning of
“economic sabotage” with harsher "recruitment and placement" as
penalties, but syndicate refers to defined under Article 13(b) of the Labor
multiple conspirators, whereas Code, or any of the prohibited practices
large-scale refers to multiple victims. enumerated under Section 6 of
Both illegal recruitment by a syndicate Republic Act No. 8042 (as amended).
and illegal recruitment in large scale Recruitment and placement broadly
refer to any act of canvassing, enlisting, • These activities are carried out by a
contracting, transporting, utilizing, group of three (3) or more persons
hiring, or procuring workers, and conspiring or confederating with one
includes referrals, contract services, another.
promising or advertising for Essentially, it combines the general
employment, whether for profit or not. elements of illegal recruitment with
• The offender commits any of these the specific condition of collective
acts of recruitment and placement action by a group of three or more
against three or more persons, individuals.
whether individually or as a group.
In the case of People v. Ramos and
Ojastro, the court found these 8. May a person charged with
elements present because the accused illegal recruitment be held
did not have a license, promised liable for estafa?
overseas employment to three victims Yes. Illegal recruitment (a malum
for a fee, and failed to deploy them. prohibitum offense) and estafa by
deceit (malum in se under Art. 315(2)(a)
7. What are the elements of RPC) have different elements, so a
illegal recruitment committed person can be convicted of both for
by a syndicate? the same act. The Supreme Court has
The elements are: (1) the acts of held that double jeopardy does not bar
illegal recruitment; and (2) it was done separate prosecution for estafa once
by a syndicate of three (3) or more illegal recruitment is proven.
persons acting in conspiracy or In short, illegal recruitment’s elements
confederation. In practice, this means are regulatory and do not preclude
at least three people together criminal charges for fraud if the deceit
engaged in the illicit recruitment element is present.
scheme. .
While the sources do not explicitly list
"elements" for illegal recruitment by a 8.1. What are the elements of
syndicate in the same way they do for Estafa by deceit under Article
large-scale illegal recruitment, the 315(2)(a) of the RPC?
definition implies the following: Two elements must concur:
• The offender (or offenders) has no (1) Fraud or deceit – the accused must
valid license or authority required by have defrauded the offended party by
law to lawfully engage in the abuse of confidence or deceit; and (2)
recruitment and placement of workers. Damage – the offended party (or third
• The offender (or offenders) party) suffers damage or prejudice
undertakes any of the activities falling capable of pecuniary estimation.
within the meaning of "recruitment
and placement" or any of the
prohibited practices.
 9. Is the lack of receipts a valid No, the execution of a contract is not
defense for illegal necessary to prove the crime of illegal
recruitment? recruitment. The core of illegal
No. The absence of receipts or recruitment lies in the act of
documentary evidence of fees is not a "canvassing, enlisting, contracting,
defense. Illegal recruitment transporting, utilizing, hiring, or
convictions are often based on witness procuring workers, and includes
testimony; Philippine jurisprudence referrals, contract services, promising
holds that proofs of recruitment need or advertising for employment abroad".
not include receipts, and in fact a lack Even without a signed contract, if a
of documents can underscore the illicit person performs acts that signify an
nature of the scheme. offer of overseas employment and the
No, the lack of receipts is not a valid applicant accepts it (e.g., by submitting
defense for illegal recruitment. The law required documents), illegal
is clear that illegal recruitment recruitment can be established. For
activities are punishable regardless of instance, in People v. Ramos and
whether they are done for profit or not. Ojastro, one victim who did not sign a
As the court stated in People v. Ramos contract or pay money was still
and Ojastro, the receipt of money is considered a victim because she
not necessary as proof for conviction if submitted requirements in response to
the prosecution's evidence successfully the offer of overseas employment.
establishes the accused's guilt. In that
case, despite the lack of a receipt from 11. May a foreign employer
one of the victims, the court still found directly hire a Filipino worker
the accused guilty based on other for overseas employment?
evidence and testimonies. Generally, no. Article 18 of the Labor
Code (PD 442) bans foreign principals
10. Is the execution of a contract from directly hiring Filipino workers;
necessary to prove the crime they must use a licensed Philippine
of illegal recruitment? recruiter. The Supreme Court
No. Even without a signed reaffirmed that excluding a worker
contract, mere promises or offers of from a manning agency’s roster (to
employment are illegal recruitment. then hire him directly) is an
Under the mnemonic “CETCHUP impermissible “circumvention of the
CRAP” (canvassing, enlisting, etc.), a ban on direct hiring”. There are limited
mere promise/offer of employment exceptions (diplomatic corps,
abroad by an unlicensed recruiter international organizations, and other
already constitutes recruitment. categories allowed by the Secretary),
The law requires no formal contract; but ordinary employers with POEA
the proscribed acts themselves accreditation cannot legally bypass
(including advertising or promising recruitment agencies.
work) suffice.
nly licensed entities meeting the • Other employers as allowed by the
qualifications may recruit. By law, Secretary of Labor and Employment,
recruitment for overseas jobs is which may include:
confined to private ◦ Those mentioned above (a, b, and c)
recruitment/manning agencies that who hold a lesser rank, if endorsed by
are (a) Filipino-owned/controlled (≥75% the Philippine Overseas Labor Office
Filipino capital) and (b) duly licensed (POLO) or the Head of Mission in the
by DOLE/POEA. (Government-run absence of the POLO.
agencies may facilitate recruitment ◦ Professionals and skilled workers
under international agreements, but with duly executed and authenticated
routine overseas hiring must go contracts that contain terms and
through licensed agencies.) Key conditions over and above the
disqualifications apply: for example, standards set by the POEA. For the first
travel agencies, airline sales agencies, time, the number of such workers
and related persons are barred. In hired by the employer shall not exceed
practice, the allowed recruiters are five. If workers are hired as a group,
licensed private employment agencies they are counted as one.
(land-based OFWs) and licensed ◦ Workers hired by a relative/family
manning or service contractors member who is a permanent resident
(seafarers or project workers) that of the host country.
satisfy legal capital and ownership For workers hired under these
requirements. No other entities may exemptions, the Administration
recruit overseas – all others (unlicensed (POEA) may register them upon
individuals, employers hiring abroad, submission of specific documents, and
etc.) would be performing illegal the Administration must ensure the
recruitment. worker is fully aware of the terms and
conditions of the employment
Generally, there is a ban on direct contract and the advantages and
hiring of Overseas Filipino Workers disadvantages of direct-hiring.
(OFWs) by foreign employers for 12. List the persons/entities
overseas employment. However, the allowed by law to engage in
law provides specific exemptions to the recruitment and
this rule: placement of workers.
Exemptions from the Ban on Direct Only licensed entities meeting the
Hiring: qualifications may recruit. By law,
• Members of the diplomatic corps. recruitment for overseas jobs is
• International organizations. confined to private
• Heads of state and government recruitment/manning agencies that
officials with the rank of at least deputy are (a) Filipino-owned/controlled (≥75%
minister. Filipino capital) and (b) duly licensed
by DOLE/POEA
(Government-run agencies may least seventy-five percent (75%) owned
facilitate recruitment under and controlled by Filipino citizens and
international agreements, but routine meet a minimum capitalization
overseas hiring must go through requirement (e.g., Five Million Pesos).
licensed agencies.) Key • Philippine Overseas Shipping
disqualifications apply: for example, Enterprises (POSE): These entities,
travel agencies, airline sales agencies, registered and duly authorized to
and related persons are barred. engage in overseas shipping activities,
In practice, the allowed recruiters are may apply for a special license to hire
licensed private employment agencies seafarers.
(land-based OFWs) and licensed • POCB-registered companies
manning or service contractors (Philippine Overseas Construction
(seafarers or project workers) that Board): Companies with overseas
satisfy legal capital and ownership projects registered with POCB may
requirements. No other entities may apply for a special license to deploy
recruit overseas – all others (unlicensed their workers to their overseas projects.
individuals, employers hiring abroad, • The Administration
etc.) would be performing illegal (POEA/Department of Migrant
recruitment. Workers): The POEA (now largely
The law primarily allows the private subsumed by the Department of
sector to participate in the recruitment Migrant Workers) itself can engage in
and placement of Filipino workers for recruitment and placement, primarily
overseas employment. Specifically: on government-to-government
• Licensed Manning Agencies: These arrangements, and may service the
are persons, partnerships, or hiring of foreign governments and
corporations duly licensed by the their instrumentalities. It can also
Secretary of Labor and Employment or recruit for labor markets not serviced
his/her duly authorized representative by the private sector.
to engage in the recruitment and The Department of Migrant Workers
placement of Filipino seafarers for (DMW), created by Republic Act No.
ships plying international waters and 11641, absorbs the powers, functions,
for related maritime activities. To be and mandate of the POEA and
licensed, they must generally be at regulates the recruitment,
least seventy-five percent (75%) owned employment, and deployment of
and controlled by Filipino citizens. OFWs, including fostering ethical
• Licensed Recruitment Agencies: recruitment practices and licensing
These are persons, partnerships, or agencies.
corporations duly authorized to
engage in the recruitment and 13. What are included in the
placement of workers for overseas solidary liability of the agency
employment. Similar to manning and foreign employers?
agencies, they must generally be at
 Under RA 8042/RA 10022 §10, all answerable for these money claims or
claims arising from the employment damages. If the
relationship are covered by joint recruitment/placement agency is a
liability. This means the agency and juridical entity (like a corporation or
employer are both responsible for any partnership), its corporate officers and
and all money claims of the worker: directors and partners (as the case
unpaid wages and salary, benefits, may be) are jointly and solidarily liable
placement fees, allowances, plus with the corporation or partnership for
actual, moral, exemplary or other these claims and damages. This
damages. For example, if a worker is liability continues throughout the
terminated without cause, both must entire period of the employment
reimburse the full placement fee with contract and is not affected by any
12% interest and pay salary for the local or foreign substitution,
unexpired contract term. All such amendment, or modification of the
obligations are enforceable against contract.
either or both parties under solidary
liability.
The liability of the principal/employer 14. What is the theory of imputed
and the recruitment/placement knowledge?
agency is joint and several (solidary). This is a rule of agency law. It
This means that both parties are fully holds that any information possessed
responsible for the entire obligation, by the agent (recruitment agency) that
and the aggrieved party can seek the is material to the transaction is
full amount from either of them. deemed to be knowledge of the
This joint and several liability covers principal (employer), even if not
any and all claims arising out of the communicated.
implementation of the employment In migrant hiring, the recruitment
contract involving Filipino workers for agency is the agent and the foreign
overseas deployment. Specifically, employer is the principal. For example,
these claims include, but are not if the agency and worker renegotiate
limited to: or extend the contract and the agency
• Unpaid wages. knows about it, the employer is bound
• Death and disability compensation. by that contract extension. However,
• Repatriation costs. the theory does not work in reverse –
• Actual, moral, exemplary, and other the employer’s knowledge is not
forms of damages. automatically imputed to the agency.
This provision is required to be Thus, once the original contract lapses
incorporated into the contract for and the agency is no longer involved,
overseas employment and serves as a the agency is not liable for new
condition precedent for its approval. agreements made solely between
The performance bond filed by the employer and worker.
recruitment/placement agency is
 15. Why are travel agencies employment to ensure ethical
prohibited to recruit? practices and protect workers. It is also
Philippine law specifically bans considered a serious offense leading to
travel agencies and their officers from cancellation of license for an officer or
engaging in recruitment to avoid agent of a recruitment agency to
conflicts of interest and exploitative become an officer or member of a
practices. RA 8042 S6(j) forbids any board of a travel agency or be
officer or agent of a recruitment directly/indirectly involved in its
agency from simultaneously management.
managing a travel agency. Likewise,
the POEA rules disqualify travel 16. Who are disqualified from
agencies (and related airline sales being issued a license?
offices) outright. ● Travel agencies and airline sales
In short, travel agencies are expressly agencies, and anyone serving on
barred from the recruitment business, the board or management of a
so any recruitment activity by them travel agency.
would be illegal. ● Entities whose officers are
connected to travel agencies
Travel agencies and sales agencies of (e.g. an officer of an agency who
airline companies are explicitly is also an officer of a travel firm).
disqualified from participating or ● Persons/agents with derogatory
engaging in the recruitment and records: those certified by the
placement of seafarers or other NBI or POEA’s anti-illegal
workers for overseas employment. recruitment unit as having
Furthermore, officers or members of probable cause or convictions
the Board of any corporation or for illegal recruitment or related
partners in a partnership engaged in crimes.
the business of a travel agency are also ● Agencies whose licenses were
disqualified from participating in previously revoked or cancelled
overseas employment recruitment. for violating recruitment laws.
The same disqualification applies to ● Government officials and
corporations and partnerships where relatives: any officer or employee
any of their officers, members of the of DOLE, POEA, OWWA, DFA (or
board, or partners also hold positions other agencies implementing
in a travel agency business. RA 8042) – and their relatives up
The specific reason or rationale behind to 4th civil degree – are barred.
this prohibition (e.g., potential for ● Persons and officers of agencies
conflict of interest, prevention of fraud with prior cancellation of license
through combined services) is not for recruitment violations.
detailed in the provided excerpts, but ● Only applicants not falling into
the prohibition itself is clearly stated as these categories can obtain a
part of the rules regulating overseas license.
 ◦ Agencies whose licenses have been
The following persons and entities are revoked for violation of RA 8042
disqualified from participating or (Migrant Workers and Overseas
engaging in the recruitment and Filipinos Act of 1995), as amended, PD
placement of workers for overseas 442 (Labor Code of the Philippines), as
employment: amended, and RA 9208 (Trafficking in
• Travel agencies and sales agencies of Persons Act of 2003), as amended, and
airline companies. their implementing rules and
• Officers or members of the Board of regulations.
any corporation or partners in a ◦ Agencies whose licenses have been
partnership engaged in the business cancelled, or those who, pursuant to
of a travel agency. the Order of the Administrator, were
• Applicants who are presently an included in the list of persons with
incorporator, director, or key officer of derogatory record for violation of
at least five (5) licensed manning recruitment laws and regulations.
agencies. (This specific limit appears in • Any official or employee of the DOLE,
the seabased rules but not explicitly in POEA, OWWA, DFA, DOJ, DOH, BI, IC,
the landbased rules provided). NLRC, TESDA, CFO, NBI, PNP, Civil
• Corporations and partnerships where Aviation Authority of the Philippines
any of their officers, members of the (CAAP), MARINA, international airport
board, or partners is also an officer, authorities, and other government
member of the board, or partner of a agencies directly involved in the
corporation or partnership engaged in implementation of RA 8042, as
the business of a travel agency. amended, and/or any of his/her
• Individuals, partners, officers, or relatives within the fourth civil degree
directors of an insurance company of consanguinity or affinity. This
who make, propose, or provide an prohibition specifically applies to the
insurance contract under the newly created Department of Migrant
compulsory insurance coverage for Workers as well
seafarers or agency-hired OFWs.
• Sole proprietors, partners, or officers
and members of the board with
derogatory records, including but not
limited to:
◦ Those convicted, or against whom
probable cause or prima facie finding
of guilt is determined by a competent
authority, for illegal recruitment, or for
other related crimes or offenses
committed in the course of, related to,
or resulting from, illegal recruitment,
or for crimes involving moral turpitude.