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POEA
Rules and Regulations Governing the
Recruitment and Employment of Seafarers
PART II - LlCENSING AND REGULATION
RULE I
PARTICIPATION OF PRIVATE SECTOR
IN THE MARITIME EMPLOYMENT PROGRAM
Section 1. Qualifications. Only those who
possess the following qualifications may be permitted to
engage in the business of recruitment and placement of
Filipino seafarers:
a. Filipino citizens, partnerships or
corporations at least seventy-five percent (75%) of the
authorized and voting capital stock of which is owned and
controlled by Filipino citizens;
b. A minimum capitalization of Two
Million Pesos (P2,000,000.00) in case of a single
proprietorship or partnership and a minimum paid-up capital
of Two Million Pesos (P2,000,000.00) in case of a
corporation; Provided that those with existing licenses
shall, within four years from effectivity hereof, increase
their capitalization or paid up capital, as the case may be,
to Two Million Pesos (P2,000,000.00) at the rate of Two
Hundred Fifty Thousand (P250,000.00) every year; and
c. Those not otherwise disqualified by
law or other government regulations to engage in the
recruitment and placement of seafarers.
Section 2. Disqualification. The
following are not qualified to engage in the business of
recruitment and placement of Filipino seafarers.
a. Travel agencies and sales agencies of
airline companies;
b. Officers or members of the Board of
any corporation or members in a partnership engaged in the
business of a travel agency;
c. Corporations and partnerships, when
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. Persons, partnerships or corporations
which have derogatory records, such as but not limited to
the following:
1. Those certified to have a derogatory
record by the National Bureau of Investigation or by the
Anti-Illegal Recruitment Branch of the POEA;
2. Those against whom probable cause or
prima facie finding of guilt for illegal recruitment or
other related cases exists;
3. Those convicted for illegal
recruitment or other related cases and/or crimes involving
moral turpitude;
4. Those agencies whose licenses have
been previously revoked or cancelled by the Administration
for violation of RA 8042, PD 442, as amended, and their
implementing rules and regulations as well as these rules
and regulations.
All applicants for issuance/renewal of
license shall be required to submit clearances from the
National Bureau of Investigation and Anti-illegal
Recruitment Branch, POEA, including clearances for their
respective officers and employees.
e. Any official or employee of the DOLE,
POEA, OWWA, DFA and other government agencies directly
involved in the implementation of R.A. 8042 and/or any of
his/her relatives within the fourth civil degree of
consanguinity or affinity; and
f. Persons, partners, officers and
directors of corporations whose licenses have been
previously cancelled or revoked for violation of recruitment
laws.
RULE II
ISSUANCE OF LICENSE
Section 1. Requirements for Licensing.
Every applicant for license to operate a manning agency
shall submit a written application together with the
following requirements:
a. A certified copy of the Articles of
Incorporation or of Partnership duly registered with the
SEC, in the case of a corporation or partnership or
Certificate of Registration of the firm or business name
with the Department of Trade and Industry (DTI), in the case
of single proprietorship.
b. Proof of financial capacity. In the
case of a single proprietorship or partnership, verified
income tax returns of the proprietors or partners for the
past two (2) years and a savings account showing a
maintaining balance of not less than Five Hundred Thousand
Pesos (P500,000.00), provided that the applicant should
submit an authority to examine such bank deposit. In the
case of a newly organized corporation, submission of a
savings account showing a maintaining balance of not less
than Five Hundred Thousand Pesos (P500,000.00), with
authority to examine the same. For an existing corporation,
submission of a verified financial statement, corporate tax
returns for the past two (2) years and a savings account
showing a maintaining balance of not less than Five Hundred
Thousand Pesos (P500,000.00) with the corresponding
authority to examine such deposit.
c. Proof of marketing capability:
1. A duly executed Special Power of
Attorney authenticated by the Philippine Embassy/Consulate
or verified by the Labor Attaché in the place where the
vessel owner/operator/manager holds its principal office;
2. A duly concluded manning agreement
authenticated by the Philippine Embassy/Consulate or
verified by the Labor Attaché in the place where the
vessel owner/operator/manager holds his/its principal
office;
3. Crew order/s of not less than fifty
(50) seafarers from its new market; and
4. Certification from Pre-Employment
Services Office of POEA on the existence of new market.
d. Clearance of all members of the board
of directors, partners and proprietor of the applicant
agency from the NBI, Anti-Illegal Recruitment Branch of POEA
and other government agencies as the need may require;
provided that where the member or partner concerned is a
foreigner, clearance from his country of origin shall be
required.
e. A verified undertaking stating that
the applicant shall:
1. Provide its seafarers orientation on
recruitment policies and procedures, terms and conditions of
employment and other relevant information;
2. Ensure that any seafarer recruited or
deployed by them is qualified and holds the documents
necessary for the job concerned;
3. Ensure that contracts of employment
are in accordance with the standard employment contract and
other applicable laws, regulations and collective bargaining
agreements;
4. Ensure that seafarers are informed of
their rights and duties under their contracts of employment
and the articles of agreement prior to or in the process of
engagement;
5. Ensure that proper arrangements are
made for seafarers to examine their contracts of employment
and articles of agreement before and after they are signed
and for them to receive a copy of the contract of
employment;
6. Ensure that the vessel/s and the crew
are adequately covered by P & I Club or similar insurance
thru the submission of the certificate of insurance
coverage;
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 solidary liability
with the employer for all claims and liabilities which may
arise in connection with the implementation of the
employment contract, including but not limited to wages,
death and disability compensation and their repatriation;
9. Guarantee compliance with the
applicable labor, social and maritime legislations of the
Philippines, and applicable regulations of the flag state
and international maritime bodies such as the International
Maritime Organization (IMO) and the International Labor
Organization (ILO);
10. Assume full and complete responsibility
for all acts of its officials, employees and representatives
done in connection with recruitment and placement;
11. Deploy at least fifty (50) seafarers to
its new market within one-year from issuance of its license
which shall also be a condition to the accreditation of old
principals; and
12. Repatriate the deployed seafarers when
the need arises.
f. In case of corporation or partnership,
verified undertaking by officers, directors and partners
that they will be jointly and severally liable with the
company over claims arising from employer-employee
relationship.
g. Individual income tax return of the
proprietor, partners, or board of directors as the case may
be, for the past two (2) years.
h. Proof of possession by the sole
proprietor, partner or chief executive officer, as the case
may be, of a bachelor’s degree and three years business
experience.
i. List of all officials and personnel
involved in the recruitment and placement, together with
their appointment, bio-data and two (2) copies of their
passport size pictures as well as their clearances from the
NBI and the Anti-Illegal Recruitment Branch, POEA.
j. Copy of contract of lease or proof of
building ownership, indicating the office address and
providing for an office space of at least one hundred (100)
square meters.
k. Proof of publication of notice of the
application with the names of the proprietor, partners,
incorporators and officers;
l. Certificate of attendance of owner
and/or chief executive officer in a pre-application seminar
conducted by the Administration.
Only applications with complete
supporting documents shall be processed.
Section 2. Payment of Filing Fee. Upon
receipt of an application with complete requirements, the
Administration shall require payment of a non-refundable
filing fee of Ten Thousand Pesos (P10,000.00) and submission
of proof of payment thereof.
Section 3. Action Upon the Application.
Within fifteen (15) calendar days from receipt of an
application with complete requirements including proof of
payment of the filing fee of Ten Thousand Pesos
(P10,000.00), the Administration shall evaluate the
pertinent documents, inspect the office premises of the
applicant and determine whether or not to grant the
application. Denial of an application will result to the
forfeiture of the filing fee.
Section 4. Payment of Fees and Posting of
Bonds. Upon approval of the application, the applicant shall
pay a license fee of Fifty Thousand Pesos (P50,000.00). It
shall submit an escrow agreement in the amount of One
Million Pesos (P1,000,000.00), confirmation of escrow
deposit with a reputable bank and a surety bond of One
Hundred Thousand Pesos (P100,000.00) from a bonding company
acceptable to the Administration and accredited with the
Insurance Commission.
Agencies with existing licenses shall,
within four years from effectivity hereof, increase their
Escrow Deposit to One Million Pesos (P1,000,000.00) at the
rate of One Hundred Seventy-Five Thousand (P175,000.00)
pesos per year.
The bonds and escrow shall answer for all
valid and legal claims arising from violations of the
conditions for the grant and use of the license and/or
contracts of employment. The bonds and escrow shall likewise
guarantee compliance with the provisions of these rules and
pertinent Philippine laws and all liabilities which the
Administration may impose. The surety bonds shall
include the condition that notice to the
principal is notice to the surety and that any final and
executory judgment against the principal in connection with
matters falling under POEA’s/NLRC’s jurisdiction shall be
binding and conclusive on the surety. The surety bonds shall
cover the validity period of the license.
Section 5. Provisional License.
Applicants for new license shall be issued a provisional
license which shall be valid for a limited period of one (1)
year within which the applicant should be able to comply
with its undertaking to deploy 50 seafarers to its new
principal. The license of a complying agency shall be
upgraded to a full license entitling them to another three
years of operation. Non-complying agencies will be notified
of the expiration of their license.
Section 6. Validity of the License.
Except in case of a provisional license, every license shall
be valid for four (4) years from the date of issuance unless
sooner cancelled, revoked or suspended for violation of
applicable Philippine law, these rules and other pertinent
issuances. Such license shall be valid only at the place/s
stated therein, subject to the conditions of the subsequent
paragraph, and when used by the licensed person, partnership
or corporation.
Section 7. Non-Transferability of the
License. No license shall be transferred, conveyed or
assigned to any person, partnership or corporation. It shall
not be used directly or indirectly by any person,
partnership or corporation other than the one in whose favor
it was issued.
In case of death of the sole proprietor,
and in order to prevent disruption of operations and so as
not to prejudice the interest of legitimate heirs, the
license may be extended upon request of the heirs, to
continue only for the purpose of winding up business
operations.
Section 8. Change of
Ownership/Relationship of Single Proprietorship or
Partnership. Transfer or change of ownership of a single
proprietorship licensed to engage in maritime employment
shall cause the automatic revocation of the license.
A change in relationship of the partners
in a partnership duly licensed to engage in maritime
employment, which materially interrupts the course of the
business or results in the actual dissolution of the
partnership, shall likewise cause the automatic revocation
of the license.
Section 9. Upgrading of Single
Proprietorship or Partnerships. License holders, which are
single proprietorships or partnerships, may convert into a
corporation for purposes of upgrading or raising their
capabilities to respond adequately to developments/changes
in international shipping and to enable them to better
comply with their responsibilities arising from the
recruitment and deployment of seafarers.
The approval of merger, consolidation or
upgrading shall automatically revoke or cancel the licenses
of the single proprietorships, partnerships or corporations
so merged, consolidated or upgraded.
Section 10. Derogatory Record After
Issuance/ Renewal of License. The license of a single
proprietorship and partnership shall be suspended until
cleared by the Administration should any derogatory record
be found to exist against the single proprietorship or any
or all of the partners, as the case may be. The appointment
of any officer or employee of any licensed agency may be
cancelled or revoked at any time with due notice to the
agency concerned, whenever said officer or employee is found
to have any derogatory record, as herein contemplated.
Section 11. Appointment/Change of
Officers and Personnel. Every appointment of agents or
representatives of a licensed agency shall be subject to
prior approval or authority of the Administration. The
acknowledgment or approval may be issued upon submission of
or compliance with the following:
a. Proposed appointment or special power
of attorney;
b. Clearances of the proposed representative
or agent from the NBI and the Anti-illegal Recruitment
Branch of the POEA; and
c. Sworn or verified statement by the
designating or appointing person or company assuming full
responsibility for all acts of the agent or representative
done in connection with the recruitment and placement of
seafarers.
Every change in the composition of the
board of directors of a corporation, appointment or
termination of officers and personnel shall be registered
with the Administration within thirty (30) calendar days
from the date of such change. The agency shall be required
to submit the minutes of proceedings duly certified by the
SEC in case of election of new members of the board of
directors with their bio-data, ID pictures and clearances.
The Administration reserves the right to
deny the acknowledgment or appointment of officers,
employees and representatives who were directly involved in
recruitment irregularities.
Section 12. Publication of Change of
Directors/Other Officers and Personnel/ Revocation or
Amendment of Appointment of Representatives. In addition to
the requirement of registration with and submission to the
Administration, every change in the membership of the Board
of Directors, termination for cause of other officers and
personnel, revocation or amendment of appointment of
representatives shall be published at least once in a
newspaper of general circulation, in order to bind third
parties. Proof of such publication shall be submitted to the
Administration.
Section 13. Transfer of Business Address.
Any transfer of business address shall be effected only with
prior authority or approval of the Administration. The
approval shall be issued only upon formal notice of the
intention to transfer with the following attachments:
a. In the case of a corporation, a Board
Resolution duly registered with the SEC authorizing the
transfer of business address; and
b. Copy of the contract of lease or proof
of building ownership.
The new office shall be subject to the
regular ocular inspection procedures by duly authorized
representatives of the Administration.
A notice to the public of the new address
shall be published in a newspaper of general circulation.
Section 14. Establishment of Extension
Offices. Extension offices may be established subject to the
prior approval of the Administration.
Section 15. Renewal of License. An agency
shall submit an application for the renewal of its license
on or before the expiration of the license. Such application
shall be supported by the following documents:
a. Renewed or revalidated surety bond
amounting to One Hundred Thousand Pesos (P100,000.00);
b. Renewed escrow agreement in the amount
of One Million Pesos (P1,000,000.00) with a commercial bank
to primarily answer for valid and legal claims of recruited
seafarers as a result of recruitment violations or money
claims;
c. Audited financial statements for the
past two years with verified corporate or individual tax
returns. In case the equity of the agency is below the
minimum capitalization requirement, it shall be given thirty
(30) days from release of the renewed license to submit
proof(s) of capital infusion, such as SEC certification of
such infusion or bank certification corresponding to the
amount infused and treasurer’s affidavit duly received by
the SEC. Otherwise the license shall be suspended until it
has complied with said requirement;
d. Clearances from the NBI and Anti-Illegal
Recruitment Branch for all its employees and officers; and
e. Other requirements as may be imposed
by the Administration.
Section 16. Monitoring Compliance with
Conditions of License. The Administration shall monitor the
compliance of agencies with their undertakings in connection
with the issuance or renewal of the license. Appropriate
sanctions shall be imposed for non-compliance with any of
their undertakings.
Section 17. Non-expiration of License
Pending Renewal. Where the license holder has made timely
and sufficient application for renewal, the existing license
shall not expire until the application shall have been
finally determined by the Administration. For this purpose,
an application shall be considered sufficient if the
applicant has complied with the requirements for renewal.
Section 18. Action on Renewal of License.
Within forty-eight (48) hours from receipt of the
application for renewal with the complete requirements, the
Administration shall undertake evaluation and inspection and
determine the grant or denial of the application.
Application for renewal of license which fail to meet the
requirements set by the Administration, shall be denied.
Only applications for renewal submitted
with complete requirements shall be processed.
Section 19. Late Filing of Renewal. Any
agency which failed to file an application for renewal of
license may be allowed to renew within thirty (30) calendar
days from expiry thereof and subject to the payment of a
fine of P10,000.00.
Section 20. Escrow Deposit as Garnished.
As soon as an Order or Notice of Garnishment is served upon
the bank, and the same is correspondingly earmarked, the
deposit in escrow of an agency shall no longer be considered
sufficient. The Administration shall forthwith serve upon
the agency a notice to replenish its escrow deposit.
Section 21. Replenishment of Surety
Bonds/Deposit in Escrow. Within fifteen (15) calendar days
from date of receipt of notice from the Administration that
the bonds/deposit in escrow or any part thereof had been
garnished, the agency shall replenish the same. Failure to
replenish such bonds/deposit in escrow within the said
period shall cause the suspension of the license.
Section 22. Release of Deposit in Escrow.
A licensed agency which voluntarily surrenders its license
shall be entitled to the release of the deposit in escrow,
only after posting a surety bond of similar amount valid for
four (4) years from expiration of license and submission of
the necessary clearances from the National Labor Relations
Commission (NLRC) and the Administration.
Section 23. Classification, Ranking and
Incentives. The Administration shall undertake the
classification and ranking of agencies. In recognition of
their exemplary performance, the Administration shall issue
guidelines for entitlement of agencies to schemes for
incentives and rewards such as extension of validity of the
license, express processing and in-house documentation.
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