Further Amending Certain Provisions of Book I, Presidential Decree No. 442, Otherwise Known as The Labor Code of the Philippines

Case Overview and Summary

Summary of Presidential Decree No. 1412

Strengthening Employment Promotion System
- Declares policy to strengthen public employment offices and rationalize private sector participation in recruitment and placement of workers locally and overseas. (Art. 12(f))

Definitions
- Defines "private employment agency", "license", "private recruitment entity", and "authority". (Art. 13)

Bureau of Employment Services
- Develops and implements comprehensive employment program. (Art. 15(a))
- Establishes and operates public employment offices for free placement services. (Art. 15(a)(2))
- Regulates and supervises private sector participation in recruitment and placement locally and overseas. (Art. 15(a)(3))
- Has original and exclusive jurisdiction over employer-employee relations cases involving Filipino workers for overseas employment, except seamen. (Art. 15(b))
- Can impose and collect fees subject to Secretary of Labor's approval. (Art. 15(c))

Private Recruitment
- Only public employment offices and Overseas Employment Development Board (OEDB) can engage in recruitment and placement of workers, except as provided in Chapter II. (Art. 16)

Overseas Employment Development Board (OEDB)
- Created to undertake systematic program for overseas employment of Filipino workers, except seamen. (Art. 17(a))
- Has powers and duties related to recruitment, placement, promotion, securing terms and conditions, generating foreign exchange, and promoting well-being of Filipino workers overseas. (Art. 17(a)(1-6))
- Authorized to establish offices abroad. (Art. 17(b))

Ban on Direct Hiring
- No employer may hire Filipino worker for overseas employment except through OEDB and entities authorized by Secretary of Labor, with some exceptions. (Art. 18)

Office of Emigrant Affairs
- Created to maintain close ties with Filipino migrant communities, promote their welfare, and establish data bank for manpower policy formulation. (Art. 19(a))
- Promotes well-being of emigrants and maintains their close link to homeland through various activities. (Art. 19(b)(1-5))

Composition of Boards
- OEDB composed of Secretary of Labor as Chairman, Undersecretary of Labor as Vice-Chairman, and representatives from various government agencies, worker's organization, employer's organization, and Executive Director of OEDB. (Art. 23(a))
- National Seamen Board composed of Secretary of Labor as Chairman, Undersecretary of Labor as Vice-Chairman, and representatives from various government agencies, National Shipping Association, and Executive Director of NSB. (Art. 23(b))
- Board members receive allowances not more than P2,000 per month. (Art. 23)

Private Sector Participation
- Private employment sector shall participate in recruitment and placement of workers locally and overseas under guidelines, rules, and regulations issued by Secretary of Labor. (Art. 25)

Citizenship Requirement
- Only Filipino citizens or corporations/entities with at least 75% Filipino ownership and control can participate in recruitment and placement of workers locally or overseas. (Art. 27)

Registration Fees and Bonds
- Secretary of Labor shall promulgate schedule of fees for registration of applicants for license or authority. (Art. 30)
- Applicants for license or authority shall post cash and surety bonds as determined by Secretary of Labor. (Art. 31)

Fees to be Paid by Workers
- Workers shall not be charged any fee by private fee-charging employment agency until they have obtained employment or commenced employment. (Art. 32)
- Secretary of Labor shall promulgate schedule of allowable fees. (Art. 32)

Illegal Recruitment
- Recruitment activities by non-licensees or non-holders of authority shall be deemed illegal and punishable under Art. 39. (Art. 38(a))
- Secretary of Labor can recommend arrest and detention of non-licensee or non-holder if activities constitute danger to national security and public order or lead to exploitation of job seekers. (Art. 38(b))

Prohibition and Penal Sanctions
- After issuance of employment permit, alien shall not transfer to another job or change employer without prior approval of Secretary of Labor. (Art. 41)
- Non-resident alien who takes up employment in violation shall be punished under Art. 289 and 290 of Labor Code and subject to deportation after serving sentence. (Art. 41)