Articles 26-31

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Coercive, unfair or deceptive recruitment

Articles 26-31 provide the requirements and eligibility criteria for obtaining a license to act as a recruitment or placement agency for overseas employment. Only Filipino citizens or corporations that are at least 75% owned or controlled by Filipino citizens and have substantial capital are qualified to receive licences to recruit and deploy workers. All license applicants must post cash and surety bonds to guarantee compliance with prescribed recruitment procedures, rules and regulations, and terms and conditions of employment.

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Article 26. Travel agencies prohibited to recruit.

Travel agencies and sales agencies of airline companies are prohibited from engaging in the business of recruitment and placement of workers for overseas employment whether for profit or not.

Article 27. Citizenship requirement.

Only Filipino citizens or corporations, partnerships or entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or overseas.

Article 28. Capitalization.

All applicants for authority to hire or renewal of license to recruit are required to have such substantial capitalization as determined by the Secretary of Labor.

Article 29. Non-transferability of license or authority.

No license or authority shall be used directly or indirectly by any person other than the one in whose favor it was issued or at any place other than that stated in the license or authority be transferred, conveyed or assigned to any other person or entity. Any transfer of business address, appointment or designation of any agent or representative including the establishment of additional offices anywhere shall be subject to the prior approval of the Department of Labor.

Article 30. Registration fees.

The Secretary of Labor shall promulgate a schedule of fees for the registration of all applicants for license or authority.

Article 31. Bonds.

All applicants for license or authority shall post such cash and surety bonds as determined by the Secretary of Labor to guarantee compliance with prescribed recruitment procedures, rules and regulations, and terms and conditions of employment as may be appropriate.”

Law / Philippines / Labour Code (Presidential Decree No. 442 of 1974, as amended)

The Labour Code regulates the employment of all workers, except certain excluded categories, and may be used to hold both individual and corporate employers to account for violations of labour rights. Under the Code, breaches declared to be unlawful or penal in nature, are penalised with 3 months to 3 years of imprisonment, a fine ranging from 1,000 to 10,000 pesos, or both. The Labour Code provides some rights and protections for workers, such as provisions regarding working hours, weekly rest, health and safety, minimum wages, and against wage manipulation and the witholding of wages. The Labour Code excludes domestic workers from its scope of application, and thus from the protections afforded to other workers. This major loophole was addressed through the enactment of the Domestic Workers Bill in 2013, which instituted a number of protections for domestic workers, including minimum wages, social security, leave entitlements, and protection against abuse, violence or harassment.