REVISED POEA RULES AND REGULATIONS

GOVERNING THE RECRUITMENT AND EMPLOYMENT OF

LANDBASED OVERSEAS FILIPINO WORKERS OF 2016

 

 

PART II
LICENSING AND REGULATION

RULE I
Private Sector Participation in the Overseas Employment Program

 

SECTION 1.Participation of the Private Sector.— The private sector shall participate in the recruitment of Filipino workers for overseas employment in accordance with these Rules and any subsequent guidelines that may be issued by the POEA Governing Board and the Administration.

 

SECTION 2. Who may participate; Required Capitalization. — Any Filipino citizen acting as a sole proprietor or a partnership, or a corporation at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino citizens, may engage in the business of recruitment and placement of Filipino workers.

 

The sole proprietor and partnership shall have a minimum capitalization of Five Million Pesos (PhP5,000,000.00) and a minimum paid up capital of Five Million Pesos (PhP5,000,000.00) in case of a corporation.

 

Those with existing licenses shall, within four (4) years from effectivity hereof, increase their capitalization or paid up capital, as the case may be, to Five Million Pesos (PhP5,000,000.00) at the rate of Seven Hundred Fifty Thousand Pesos (PhP750,000.00) every year.

 

SECTION 3. Who are Disqualified. — The following persons and entities are disqualified to participate or engage in the recruitment and placement of workers for overseas employment:

 

a.     Travel agencies and sales agencies of airline companies;

b.    Officers or members of the Board of any corporation or partners in a partnership engaged in the business of a travel agency;

c.     Corporations and partnerships, where any of its officers, members of the board or partners is also an officer, member of the board or partner of a corporation or partnership engaged in the business of a travel agency;

d.    Individuals, partners, officers or directors of an insurance company who make, propose or provide an insurance contract under the compulsory insurance coverage for agency-hired Overseas Filipino Workers;

e.     Sole proprietors, partners or officers and members of the board with derogatory records, such as, but not limited to the following:

 

1.   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;

2.   Those agencies whose licenses have been revoked for violation of RA 8042 (Migrant Workers and Overseas Filipinos Act of 1995), as amended, PD 442 (Labor Code of the Philippines), as amended, and RA 9208 (Trafficking in Persons Act of 2003), as amended, and their implementing rules and regulations;

3.   Those agencies whose licenses have been cancelled, or those who, pursuant to the Order of the Administrator, were included in the list of persons with derogatory record for violation of recruitment laws and regulations; and

 

f.     Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC, NLRC, TESDA, CFO, NBI, PNP, Civil Aviation Authority of the Philippines (CAAP), international airport authorities, and other government agencies directly involved in the implementation of RA 8042, as amended, and/or any of his/her relatives within the fourth civil degree of consanguinity or affinity.

 

 

RULE II
Issuance of License

 

 A. APPLICATION

 

SECTION 4.    Pre-Qualification Requirements.— Any person applying for a license to operate a recruitment agency shall file a written application with the Administration, together with the following requirements:

 

a.     Business Name Certificate issued by the Department of Trade and Industry (DTI) in the case of a single proprietorship, or a certified copy of the Articles of Partnership or Articles of Incorporation duly registered with the SEC in the case of a partnership or corporation;

b.    Proof of financial capacity:

 

i.      Bank certificate showing a deposit of at least Five Million Pesos (PhP5,000,000.00), with authority to examine the bank account;

ii.     Duly filed Income Tax Returns (ITR) for the last two (2) years of the proprietor, partners, members of the Board of Directors and major stockholders of a corporation and official receipts showing payment of income tax; and

iii.    Proof of sources of investment.

 

c.     Proof of existence of new market:

i.      POLO verified and/or consulate authenticated Recruitment/Service Agreement (RA/SA) duly concluded by the applicant and the new principal/employer.

 

For this purpose, a new principal/employer refers to a principal/employer which has never been accredited/registered with any licensed recruitment agency or with the Administration and has been existing for at least a year; Provided, that in the case of a foreign placement agency, its client employer/s must be identified and must not have been accredited with any licensed recruitment agency or with the Administration.

 

ii.     Employer’s profile to include:

 

a.     Valid business license or commercial registration of the principal/employer, with English translation;

b.    Information on business activities;

c.     Number of years in operation; and

d.    Number of workers.

 

d.    Proof of possession by the sole proprietor, managing partner, president or chief executive officer, as the case may be, of a bachelor's degree or at least four (4) years experience in human resource management or experience in heading or managing a manpower business;

e.     Valid clearances from the NBI and the Anti-Illegal Recruitment Branch of the Administration for the proprietor, partners, and all members of the board of directors of the applicant agency. If a member of the board is a foreign national, a duly authenticated police clearance from his/her country of origin shall be required;

f.     A duly notarized undertaking by the sole proprietor, the managing partner, or the president of the corporation stating that the applicant shall:

 

1.     Negotiate for the best terms and conditions of employment for the workers;

2.     Select and deploy only medically fit and competent workers as tested by the employers or certified by TESDA or by other competent authority;

3.     Provide orientation to the workers on recruitment procedures, as well as the country profile and the working and living conditions, and other relevant information about the host country and work site;

4.     Obtain compulsory insurance coverage for its hired workers for the duration of the contract of employment, at no cost to the workers;

5.     Provide the worker a copy of the contract upon signing and provide the OEC upon issuance;

6.     Guarantee that there is no officer or employee of the recruitment agency related within the fourth civil degree of consanguinity or affinity to any official or employee of any government agency engaged, directly or indirectly, in the implementation of RA 8042, as amended;

7.     Assume full and complete responsibility for all claims and liabilities which may arise in connection with the use of the license;

8.     Assume joint and several liability with the employer for all claims and liabilities which may arise in connection with the implementation of the contract, including but not limited to unpaid wages, death and disability compensation and repatriation;

9.     Assume full and complete responsibility for all acts of its officers, employees and representatives done in connection with recruitment and placement;

10.  Adhere to the ethical standards as prescribed in the Code of Conduct for Ethical Recruitment as endorsed by recruitment industry associations and the Administration; and

11.  Guarantee compliance with existing labor and social legislation of the Philippines and of the country of employment of the recruited workers.

 

g.    In case of a corporation or partnership, a duly notarized undertaking by the corporate officers and directors, or partners, that they shall be jointly and severally liable with the corporation or partnership for claims and/or damages that may be awarded to the workers;

h.     List of all officials and personnel involved in recruitment and placement, together with their appointment, signed bio-data and two (2) copies of their passport-size pictures, as well as their clearances from the NBI and their individual affidavits, declaring that they have no conviction or pending criminal case for illegal recruitment or case involving moral turpitude;

i.      Certificate of attendance of the sole proprietor, managing partner, president, chief executive officer and/or operations manager in a Pre-Licensing Orientation Seminar (PLOS);

j.      Flowchart detailing step-by-step recruitment procedures, documentary requirements, briefings and orientations required, authorized fees and costs, deployment timeframes, and the responsible officer/s and process cycle time for every phase of the process; and

k.     Four-year business plan detailing financial, market and operational viability, including projected income and a risk management plan.

 

SECTION 5.  Payment of Filing Fee.— Upon receipt of the complete requirements for application, the Administration shall require payment of a non-refundable filing fee of Twenty-Five Thousand Pesos (PhP25,000.00) and submission of proof of payment thereof. 

 

SECTION 6.Panel Interview.— The proprietor, partners and members of the Board of Directors, including the major stockholders, shall undergo a panel interview to ascertain their qualifications and fulfillment of the requirements under Rules I and II, Part II of these Rules.

 

SECTION 7.Decision on the Application.— The Administration shall notify the applicant in writing of the decision on the application within three (3) working days after interview.

 

SECTION 8.Grounds for Denial of Application.— An application for license shall be denied when the applicant fails to satisfy any of the requirements or gives any false information or documents.

 

SECTION 9.Submission of Post-Qualification Requirements.—  Upon receipt of the notification, the applicant shall submit the following post-qualification requirements prior to the issuance of the provisional license:

 

a.     A lease contract for an office space measuring at least one hundred (100) square meters, or proof of building ownership that will be used as an office or an identified portion thereof measuring at least 100 square meters;

b.    An office layout providing and clearly delineating adequate spaces that will serve as receiving area, interview room, administrative and finance area, conference/training room, and an executive office;

c.     An inventory of office equipment and facilities, which at the minimum, shall include the following:

 

i.    Office furniture such as tables and chairs for the president and other officers and employees, as well as similar furniture for the receiving area, interview room and conference/training room;

ii.    Secured filing cabinets; and

iii.   Office equipment which shall, at the minimum, include two (2) computers, computer printer and scanner, photocopying machine, fax machine, landline telephone,  internet connection, and multi-media equipment (i.e. LCD projector, and other similar audio-visual equipment).

 

d.    Organizational chart indicating the duties and responsibilities and names of officers and staff, which shall, at the minimum, consist of the President, Chief Executive Officer, Recruitment and/or Documentation Officer, Accountant or Bookkeeper, Cashier and Liaison Officer;

e.     Payment of license fee of One Hundred Thousand Pesos (PhP100,000.00); and

f.     An escrow agreement with a bank authorized by the Bangko Sentral ng Pilipinas to handle trust accounts, with deposit in the amount of One Million Pesos (PhP1,000,000.00).

 

The escrow deposit shall answer for all valid and legal claims arising from contracts of employment and violations of the conditions for the grant and use of the license, including fines imposed by the Administration. The escrow shall likewise guarantee compliance with prescribed recruitment procedures, rules and regulations, appropriate terms and conditions of employment, and relevant issuances of the DOLE.

 

       The escrow deposit shall not be sourced from the capitalization requirement.

 

SECTION 10.Assessment Prior to Issuance of License. — The Administration shall assess the applicant’s compliance with paragraphs (a), (b) and (c) of the preceding section. The Labor Laws Compliance Officer (LLCO) shall determine the size of the office space and the existence of the facilities and equipment as shown in the applicant’s floor plan and inventory of equipment.

 

The assessment shall be conducted in accordance with the provisions of Rule III, Part II of these Rules.

 

 

B. PROVISIONAL LICENSE

 

SECTION 11.Issuance and Validity of a Provisional License. — Within five (5) working days from satisfaction of the post-qualification requirements, the Administration shall issue a provisional license which shall be valid within a non-extendible period of two (2) years from date of issuance.

 

SECTION 12.Prohibition.— The agency granted with a provisional license shall not deploy domestic workers during the validity of the provisional license.

 

C. REGULAR LICENSE

 

SECTION 13.Application for Upgrading of Provisional License to a Regular License.—  Upon application, a provisional license may be upgraded to a regular license at any time during its validity upon deployment of one hundred (100) workers to its new principal/s, and upon submission of the following:

 

a.     Quality Management System (QMS) manual, defining the scope of the agency’s quality management system that includes, among others, the quality policy and objectives, organizational structure and management responsibilities, and documented recruitment and deployment processes;

b.    Updated bank certificate stating that the escrow deposit remains at One Million Pesos (PhP1,000,000.00);

c.     Certificate of no pending case or any substantiated adverse report during the validity of the provisional license;

d.    Certificate of attendance to the Continuing Agency Education Program (CAEP) of all its officers and staff; and

e.     Latest audited financial statement.

 

SECTION 14.Validity of a Regular License.— The regular license shall be valid up to the full term of four (4) years from the date of issuance of the provisional license.

 

The application for upgrading of the provisional license shall be filed within three (3) months before the expiration of the provisional license.

 

D. RENEWAL OF LICENSE

 

SECTION 15.  Renewal of License. — A licensed recruitment agency should submit an application for the renewal of its license within three (3) months before the expiration of its license. The application shall be supported by the following documents:

 

a.     Updated DTI registration in case of sole proprietorship, or General Information Sheet in case of partnership and corporation;

b.     Renewed/new escrow agreement with a commercial bank authorized to handle trust accounts by the Bangko Sentral ng Pilipinas, supported by a bank certification;

 

Provided, that, if during the renewal, the applicant has pending recruitment violation case/s before the Administration, an additional escrow deposit shall be required in accordance with the following schedule:

NO. OF PENDING CASE/S

ADDITIONAL ESCROW DEPOSIT

1 to 5

PhP50,000.00 per case

6 to 10

PhP75,000.00 per case

11 or more

PhP100,000.00 per case

 

The total escrow deposit shall, in no case, exceed Two Million Pesos (PhP2,000,000.00).

 

Provided, further, that, if in the succeeding renewal, the licensed recruitment agency has no pending case, the Administration shall allow the withdrawal of the additional escrow deposit.

 

c.     Duly filed latest audited financial statements and income tax returns of the licensed recruitment agency.  In case the equity of the licensed recruitment agency is below the minimum capitalization requirement, it shall be given thirty (30) days from release of the renewed license to submit an SEC certification on capital infusion, otherwise the license shall be suspended until it has complied with such requirement;

d.    Clearances from the NBI and the Anti-Illegal Recruitment Branch of the sole proprietor, partners, members of the board of directors, officers, and personnel; and

e.     Valid Certificate of Compliance with general labor standards and valid Certificate of Compliance with occupational safety and health standards.

 

The Administration shall only accept applications with complete requirements based on the checklist for renewal of license.  No application shall be accepted after the date of expiration of the license.

 

SECTION 16.Action on Renewal of License.—The Administration shall evaluate the application within five (5) working days from receipt of such application. The license remains valid until the application shall have been finally acted upon.

 

 

E. ESCROW DEPOSIT

 

SECTION 17.Maintenance of Escrow Deposit.— A licensed recruitment agency shall maintain at all times its escrow deposit in the minimum amount of One Million Pesos (PhP1,000,000.00). In case the licensed recruitment agency is required an additional escrow pursuant to Section 15, it shall maintain the escrow deposit  of One Million Pesos (PhP1,000,000.00) plus the additional escrow.

 

In case the escrow deposit has been garnished, the licensed recruitment agency shall replenish the escrow deposit within fifteen (15) days from receipt of the Notice to Replenish Escrow Deposit. Failure to comply with such notice will result in the suspension of the license of the recruitment agency. Within the same fifteen (15) day period, the licensed recruitment agency may explain why it should not be suspended for such failure to comply.

 

The Administration shall ensure compliance with the increased escrow deposit as provided in this Rule.

 

SECTION 18.    Monitoring Compliance with Conditions for the Issuance of the License. — The Administration shall monitor the compliance of licensed recruitment agencies with the conditions for the issuance of license, recruitment laws, rules and regulations on the use of license, and general labor standards and occupational safety and health standards in coordination with the DOLE Regional Office.

 

The Administration shall suspend or revoke the license of a recruitment agency for failure to maintain the required qualifications or conditions for the issuance of a license as provided in this Rule.

 

SECTION 19.    Release of Deposit in Escrow. — The deposit in escrow of a licensed recruitment agency that voluntarily surrenders its license or has not renewed its license shall be released upon submission of the following:

 

a.     Copy of the duly executed/signed escrow agreement;

b.    Bank certification on the status of escrow deposit;

c.     Certificate of No Pending Case from the NLRC;

d.    Clearance from the Adjudication Office;

e.     Notarized Board Resolution/Partnership Resolution duly received by the SEC on the decision to withdraw escrow deposit, indicating the name of the person to process and receive the check representing the escrow deposit; and

f.     Surety bond equivalent to the amount of the escrow deposit valid for four (4) years from expiration of the license, if applicable.

 

 

 F. COMMON PROVISIONS

 

SECTION 20.    Derogatory Record after Issuance/Renewal of License. — The license of a single proprietorship or a partnership shall be suspended, until cleared by the Administration, should any derogatory record as provided in Section 3 herein be found to exist against the single proprietor or any or all of the partners, as the case may be.

 

The appointment of any officer or employee of any licensed recruitment agency may be cancelled or revoked by the Administration at any time, with due notice to the licensed recruitment agency concerned, whenever said officer or employee is found to have any derogatory record.

 

SECTION 21.    Non-Transferability of License. — No license shall be used, directly or indirectly, by any person other than the one in whose favor it was issued, nor at any place other than that stated in the license, nor may such license be transferred, conveyed or assigned to any other person or entity.

 

SECTION 22.    Revocation of License of Sole Proprietorship. — The license of the sole proprietorship shall automatically be revoked upon the death of the sole proprietor.  The next-in-rank officer of the agency shall, within ten (10) days, report such death to the Administration. Failure to report shall automatically include such next-in-rank officer in the list of persons with derogatory record.

 

SECTION 23.Revocation of License of a Partnership Due to Death or Withdrawal of Partner. — The license of a partnership shall be automatically revoked upon the death or withdrawal of a partner which materially interrupts the course of business or results in the actual dissolution of the partnership.  The surviving partner/s shall, within ten (10) days, report such death or withdrawal to the Administration. Failure to report shall automatically include the surviving partner/s in the list of persons with derogatory record.

 

SECTION 24.Upgrading, Merger or Consolidation of Licensed Recruitment Agencies. — The upgrading, merger or consolidation of licensed recruitment agencies shall be undertaken in accordance with the regulations of the SEC, without prejudice to the determination by the Administration of the qualifications of the new partners or directors.

 

The upgraded licensed recruitment agencies, the surviving corporation, or the new corporation, as the case may be, shall inform the Administration of such changes within thirty (30) days from confirmation by SEC of such upgrading, merger or consolidation.

 

SECTION 25. Change in the Composition of Partners/Board of Directors. — The licensed recruitment agency shall notify the Administration of every change in the composition of the partnership or board of directors within thirty (30) calendar days from the date of such change, and submit the following supporting documents:

 

a.     ln case of change of partners, the amended articles of partnership, and bio-data, pictures, NBI clearances, AIRB clearances and income tax returns with proof of payment, for the last two (2) years of the new partners; and

b.    ln case of election of new members of the Board of Directors, the amended General Information Sheet and the bio-data, pictures, NBI clearances, AIRB clearances and income tax returns with proof of payment for the last two (2) years of the new directors.

 

In case of change in the controlling shares or composition of the board of directors/partnership or any transfer of control in the operations of a licensed recruitment agency, the new set of board of directors/partners shall be subject to a panel interview to ascertain their qualifications as provided in these Rules.

 

SECTION 26.Transfer of Shares of Stocks.— A licensed recruitment agency operating as a corporation shall notify the Administration of any transfer of shares of stocks of the corporation within thirty (30) calendar days from approval of such transfer by SEC, together with the updated General Information Sheet reflecting such transfer, and a certified true copy of the Stock and Transfer Book.

 

SECTION 27.  Appointment, Termination, or Resignation of Officers and Personnel.— The licensed recruitment agency shall notify the Administration of the appointment, termination or resignation of any officer and personnel of the agency within thirty (30) days from such appointment, termination or resignation. In case of appointment, the notification shall include the following documents:

 

a.     Letter of appointment containing duties and responsibilities duly accepted by the appointee;

b.    NBI and AIRB clearances; and

c.     Bio-data and two (2) recent passport size pictures.

 

SECTION 28. Transfer of Business Address. — A licensed recruitment agency may transfer its business address upon submission of the following:

 

a.     Letter of Intent to transfer office in the case of sole proprietorship, or a partnership or Board Resolution approving the transfer of office in case of a partnership or a corporation; and

b.    Copy of lease contract or proof of building ownership.

 

The Administration shall acknowledge such transfer after an assessment of compliance with space, office layout and equipment requirements has been completed.

 

The licensed recruitment agency shall publish a notice to the public of the new business address in a newspaper of general circulation within thirty (30) days from such transfer. The proof of publication shall be provided to the Administration within five (5) days from publication.

 

SECTION 29.Establishment of a Branch. — A licensed recruitment agency may request for an authority to establish a branch specifying the location, area and personnel.   In case of a corporation, a board resolution authorizing the establishment of a branch shall be submitted.  The request shall be subject to evaluation taking into account the track record of the agency and the number of job orders.

 

SECTION 30.Additional Office Space. - A licensed recruitment agency shall report to the Administration the acquisition of additional office space. The additional office space shall be adjacent to the registered main office or within the same building, provided, that, it is properly identified and covered by a duly notarized lease contract.

 

 

RULE III

Overseas Employment and Labor Laws Compliance System

 

SECTION 31. Assessment of Agencies and Labor Laws Compliance— The Administration, in coordination with DOLE, shall assess, validate and monitor compliance of licensed recruitment agencies with these Rules and applicable labor laws and social legislation.

 

An Assessment shall refer to the process of evaluating compliance with these Rules, labor laws and social legislation, undertaken by qualified labor laws compliance officers (LLCOs) using a prescribed checklist in accordance with the pertinent provisions of the Rules on Labor Laws Compliance System (LLCS) issued by the Secretary of Labor and Employment through Department Order No. 131-13. The Assessment shall include matters relating to the maintenance of requirements on capitalization/equity, office space, equipment, facilities, and postings.

 

The Assessment shall be conducted prior to the issuance of a license (post qualification assessment), upgrading of provisional license to a regular license, issuance of branch authority, renewal of license and branch authority, and transfer of office. The Assessment shall likewise be conducted once every two (2) years after renewal of license.

 

A. ASSESSMENT PRIOR TO THE ISSUANCE OF A LICENSE

(pOST QUALIFICATION ASSESSMENT)

 

SECTION 32.Scope of Assessment. — the post-qualification assessment shall cover compliance with minimum office space, facilities and equipment under Section 9 hereof by the applicant whose license application has been approved. The Assessment shall be conducted prior to the issuance of the provisional license.

 

SECTION 33, Issuance of Authority to Assess.—  The Licensing Regulations Office (LRO) Director or his/her authorized representative shall issue the Authority to Assess, indicating the names of the LLCO or POEA personnel, the applicant and its registered address, the purpose of the assessment and the validity period of the authority.

 

SECTION 34.Conduct and Report of Assessment. — The LLCO/POEA personnel shall proceed to the establishment and present the authority to the applicant agency. A responsible representative of the applicant shall receive and sign a copy of the authority. The assessment shall be conducted in the presence of such representative.

 

the assessment report shall be forwarded to the Licensing Branch of the Administration.

 

B. REGULAR ASSESSMENT

 

SECTION 35.Scope of Regular Assessment. — The Assessment shall be undertaken as a requirement for upgrading of the provisional license to a regular license, renewal of license and branch authority, transfer of office, and once every two (2) years after renewal of license. The Assessment shall cover the following:

 

a.     Maintenance of the minimum office space, facilities and equipment;

b.   Maintenance of the required signs and postings, such as POEA door sticker, agency license, organizational chart, “Kaukulang Bayad” poster and anti-illegal recruitment campaign posters;

c.   Examination of books of accounts, official receipts, and financial statements; and

d.   Compliance with general labor standards and occupational safety and health standards.

 

SECTION 36.Issuance of Authority to Assess. — the LRO Director or his/her duly authorized representative shall issue the authority to assess to its duly authorized LLCOs, indicating the names of the LLCOs, the licensed recruitment agency to be assessed, the purpose of the assessment and the validity period of the authority.

 

The LRO Director or his/her duly authorized representative may also request the DOLE Regional Director for the conduct of assessment of licensed recruitment agencies, including their branches.

 

SECTION 37.Conduct and Report of Assessment. — The LLCO shall proceed to the establishment and present the authority to the licensed recruitment agency. A responsible representative of the licensed recruitment agency shall receive and sign a copy of the authority. The Assessment shall be conducted in his/her presence, including a representative designated by the rank and file employees at the time of Assessment.

 

The Assessment shall proceed based on the Assessment Checklist contained in Annex “A” hereof. 

 

SECTION 38.Issuance of Notice of Results.— The LLCO shall issue the Notice of Results indicating compliance or deficiencies with POEA rules, labor laws and social legislation. The licensed recruitment agency representative shall acknowledge such results.

 

sECTION 39.Report of Assessment. —- The LLCO shall endorse to the LRO Director the results relating to overseas employment, or to the DOLE Regional Director for general labor standards and occupational safety and health standards.

 

sECTION 40.Issuance of Certificate of Compliance. — Licensed recruitment agencies that have complied with overseas employment rules and regulations shall be issued, within five (5) days from such compliance, a Certificate of Compliance with a validity period of two (2) years by the POEA Administrator. 

 

The Certificate of Compliance with general labor standards and occupational safety and health shall be issued by the DOLE Regional Director who has territorial jurisdiction over the establishment.

 

The Certificate of Compliance issued to a licensed recruitment agency shall cover branch offices that have been included in the renewal of license.

 

Section 41.Compliance with Deficiencies. — In case of non-compliance, the LLCO shall issue a Notice of Results, together with the accomplished assessment checklist indicating the deficiencies. The licensed recruitment agency shall comply with the deficiencies or findings in accordance with the following:

 

a.   In case of deficiencies on office facilities, equipment, postings and signs, the agency shall, within five (5) working days from the date of assessment, correct the deficiencies and submit proof of compliance for verification. Failure to comply shall cause the imposition of suspension of documentary processing, until compliance.

b.   For failure to maintain the required minimum office space, the agency shall submit proof of compliance within thirty (30) days from assessment. Failure to comply shall cause the imposition of suspension of documentary processing, until compliance.

c.   In case the audited financial statement indicates an amount lower than the required capitalization, the agency shall, within thirty (30) days from the date of assessment, infuse additional capital up to the required minimum level and submit the certificate of corporate filing/information on the present paid-up capital issued by the SEC. Failure to comply shall cause the suspension of license, until compliance.

d.   In case of non-presentation of the books of accounts and official receipts during assessment, the agency shall be given forty eight (48) hours to present such books and receipts; otherwise, a suspension of documentary processing shall be imposed.

e.   If an unauthorized person is present in the agency’s premises, the LLCO shall report such findings for review and endorsement to the Adjudication Office for administrative proceedings.

 

In case of deficiencies on general labor standards and occupation safety and health standards, the DOLE shall have jurisdiction over the agency’s compliance in accordance with the Rules on LLCS.

 

 

C. SALVO/SPOT INSPECTION

 

SECTION 42.Scope of Salvo/Spot Inspection. — The Administration shall undertake inspection in response to a complaint or report of illegal recruitment activities and recruitment violations. Such inspection shall be conducted in accordance with the POEA labor laws compliance manual.

 

 

RULE IV

Licensing of Companies Registered with

Philippine Overseas Construction Board (POCB)

 

SECTION 43.  Licensing of POCB-Registered Companies. — POCB-registered companies with overseas projects may apply in writing for a special license to deploy their workers to their overseas projects, subject to submission of the following requirements:

 

a.     Articles of Incorporation;

b.    A certified true copy of the POCB certificate of registration;

c.     POCB certification of an existing overseas project;

d.    Affidavit of Undertaking that the company will submit the renewed POCB registration upon its expiration; and

e.     Proof of payment of the non-refundable filing fee of Twenty Five Thousand Pesos (PhP25,000.00).

 

SECTION 44. Payment of Fees. — Upon approval of the application, the applicant shall:

 

a.   Pay a license fee of Fifty Thousand Pesos (PhP50,000.00); and

b.   Submit an Escrow Deposit Agreement of Two Hundred Fifty Thousand Pesos (PhP250,000.00) with an accredited bank authorized to handle trust accounts by the Bangko Sentral ng Pilipinas.

 

SECTION 45.  Issuance of Special License. — The Administration shall issue a special license to the POCB-registered companies within twenty-four (24) hours from receipt of application, provided all the requirements are met by the applicant. Only applications with complete supporting documents shall be deemed filed.

 

SECTION 46.  Validity Period of Special License. — The special license shall be valid for four (4) years from date of issuance subject to the validity of the POCB-registration, or unless sooner revoked, terminated, suspended, or cancelled by the Secretary or his/her duly authorized representative.

 

SECTION 47. Requisites for Renewal. — Within three (3) months prior to the expiration of the license, the POCB-registered company shall submit a written application together with the following requirements:

 

a.  Certified copy of valid POCB Certificate of Registration;

b.  Bank Certificate indicating that the escrow of Two Hundred Fifty Thousand Pesos (PhP250,000.00) is still intact;

c.   POCB certification of an existing overseas project; and

d. Proof of payment of license fee of Fifty Thousand Pesos (PhP50,000.00).

 

SECTION 48.Prohibition on Collection of Fees from Overseas Filipino Workers.— POCB-registered companies shall not collect any fee from the workers deployed to their projects overseas.

 

SECTION 49. POCB-registered Companies without Overseas Projects. — POCB-registered companies without POCB-certified overseas projects that intend to deploy workers overseas may apply for a regular license pursuant to Rule II, Part II of these Rules.

 

 

RULE V
Fees, Costs and Contributions

 

SECTION 50.Fees and Costs Chargeable to the Overseas Filipino Workers. — The Overseas Filipino Worker shall pay the following fees and costs:

 

a.     Documentation costs:

 

1.     Passport;

2.     NBI/Police/Barangay Clearance;

3.     NSO authenticated birth certificate;

4.     Transcript of Records and diploma issued by the school, certified by the CHED and authenticated by the DFA;

5.     Professional license issued by the PRC, authenticated by the DFA;

6.     Certificate of Competency issued by TESDA or other competent certifying body for the job applied for; and

7.     DOH prescribed medical/health examination, based on the host country medical protocol.

 

b.    Membership with Philhealth, Pag-Ibig and the Social Security System.

 

SECTION 51.Placement Fee.—  A placement fee may be charged against the Overseas Filipino Worker equivalent to one (1) month basic salary specified in the POEA approved contract, except for the following:

 

a.     Domestic workers; and

b.    Workers to be deployed to countries where the prevailing system, either by law, policy or practice do not allow, directly or indirectly, the charging and collection of recruitment/placement fee.

 

The worker shall pay the placement fee to the licensed recruitment agency only after signing the POEA-approved contract.  The agency must issue a BIR-registered receipt stating the date of payment and the exact amount paid.

 

SECTION 52.  Payment of Insurance Premium. — The licensed recruitment agency shall be responsible for the payment of the premium for the compulsory insurance coverage under Section 37-A of RA 8042, as amended.

 

SECTION 53.Costs and Fees Chargeable Against the Principal/Employer. — The costs of recruitment and placement shall be the responsibility of principal/employer, which cover payment for the following:

 

a.     Visa, including the stamping fee;

b.    Work permit and residence permit;

c.     Round trip airfare;

d.    Transportation from the airport to the jobsite;

e.     POEA processing fee;

f.     OWWA membership fee; and

g.    Additional trade test/assessment, if required by the principal/employer.

 

SECTION 54. Prohibition Against Charging of Other Fees. — No other charges in whatever amount, form, manner or purpose shall be charged against the Overseas Filipino Worker, except those specified in this Rule.

 

SECTION 55.Service Fees. — Licensed recruitment agencies shall charge principals/employers service fees commensurate to the fair market value of their services.

 

 

RULE VI
Skills Test and Medical Examination for Overseas Employment

 

SECTION 56.  Skills Testing for Applicant. — An applicant for overseas employment shall undergo a skills test in a TESDA-accredited skills testing center only after the licensed recruitment agency and/or its principal/employer has pre-qualified him/her for work covered by an approved job order. The licensed recruitment agency shall ensure that the appropriate skills test shall be administered to the worker, corresponding to the position/job category applied for.

 

SECTION 57.Medical/Health Examination. — The licensed recruitment agency shall require an applicant to undergo a medical/health examination as required by the medical protocol of the host country. The medical examination shall be conducted through a DOH-accredited medical clinic of his/her choice, and only after reasonable certainty that the worker shall be hired by the principal/employer under an approved job order.

 

The licensed recruitment agency shall ensure that the coverage of medical examination is in accordance with the standard requirements of the host government and the principal/employer.

 

 

 

RULE VII
Recruitment Outside Registered Office

 

SECTION 58.Special Recruitment Activity. — A licensed recruitment agency may conduct recruitment activities outside its registered address by securing a Special Recruitment Authority prior to the conduct of the recruitment.