GR: All rights and benefits granted to workers shall

SUMMARY NOTES ON BOOK 1 OF THE apply to all workers.

LABOR CODE XPN: when provided
- LC may apply even if the parties
Social Legislation – laws that provide particular kinds are not employees and employers
of protection or benefits to society or segments thereof of each other.
in furtherance of social justice. - Employment relationship is NOT
Labor Legislation – consists of statues, regulations, a pre-condition to the applicability
jurisprudence, governing the relations between capital of the Code.
and labor, by proving for certain the relations between  Government Corps created by CONGRESS –
capital and labor, by proving for certain employment Subject to CS Rules
standards.  Incorporated under Corporation Law –
Labor Code – set of substantive and procedural laws covered by LC
that prescribe the principal rights and responsibilities  LC applies to a government corporation under
of the industrial participants. Corporation Code
Labor Standards – norms, terms, and conditions of  LC is not applicable to government
employment that must be complied as established by agencies/instrumentalities.
law.
Labor Management Relations – broad spectrum of BOOK 1 PRE EMPLOYMENT
activities which concern relationship of employees to ART 12 STATEMENT OF OBJECTIVES
employers both union and non-union. - Policy of the state to promote full
Social Legislation – neither communism nor employment
despotism, nor atomism, nor anarchy, but the ART 13 DEFINITIONS
humanization of laws and the equalization od social Recruitment and Placement (CETCHUP-CRAP)
and economic forces by the State (Calalang v. - Canvassing - Contract
Williams) Serv.
- Enlisting - Referrals
Three Actors in Industrial Relations - Transporting - Advertising
1. Employees - Utilizing - Promoting
2. Employers - Hiring
3. Government Agencies - Procuring
ART 3 LC Declaration of Basic Policy (P-P-E-R) Provided; any person/entity, in many manner,
- Protection to labor offers or promises for a fee employment to two
- ensure equal work opportunities or more persons shall be engaged in
- promote full employment recruitment and placement.
- regulate relations between workers
and employees People v. Panis
Rights of Workers (S-C-S-J) - The number of persons is not an
- Self-organization essential ingredient of the act of
- security of tenure recruitment and placement of
- Collective bargaining workers.
- just and human conditions of work - The proviso was intended neither
Management Rights (D-Ro-P-S) to impose a condition of the basic
- Right to ROI rule nor to provide and exception
- Right to select employees but merely create a presumption.
- Right to prescribe rules - Any of the acts mentioned in the
- Right to discharge/transfer basic rule 13(b) will constitute
employees recruitment and placement even if
 Management Rights are not absolute. only one prospective worker is
Limitations to Management Rights (L-G-C) involved.
1. Law 2. Contract Private fee-charging employment agency – any
3. General Principles of Fair Play and Justice person/entity engaged in the recruitment and
ART 4 LC CONSTRUCTION OF LABOR placement of workers for a fee is charged
- Resolved in favor of labor directly/indirectly from workers, or employers, or
- The working man’s welfare both.
should be the primordial and Private recruitment entity – any person or association
paramount consideration. engaged in the recruitment and placement of workers,
ART 5 DOLE AND OTHER AGENCIES locally or overseas, without charging directly or
- Promulgate rules indirectly, any fee from the workers or employees.
ART 6 APPLICABILITY
License – document issued by DOLE authorizing a
person or entity to operate a private employment
agency. THERE IS A CHARGING FEE. ART 19 OFFICE OF THE EMIGRANT AFFAIRS
Authority – document issued by DOLE authoring a ART 20 NATIONAL SEAMEN BOARD
person or entity to engage in recruitment and
placement activities as a private recruitment entity. NO Lex Loci Celebrationis – It may be the law of the
CHARGING FEE. country where the employee habitually carries out his
 If the local employer does recruitment and work in cases of conflict.
placement, he is not persecuted because he is  Employees are not stripped of their security of
the employer. tenure when they move to work in a different
jurisdiction.
ART 14 EMPLOYMENT PROMOTION Lex Loci Contractus – the law of the place where the
ART 15 BUREAU OF EMPLOYMENT contract is made.
SERVICES
Disability Benefits for Injury or Illness
ART 16 PRIVATE RECRUITMENT  In case of death of the seafarer during his
GR: No person or entity, other than the public contract, the employer shall pay his
employment office, shall engage in the recruitment and beneficiaries.
placement. XPN: Medical Repatriation
XPN: Art. 25 Two Elements Required for an Injury to be
Compensable
ART 17 OVERSEAS EMPLOYMENT 1. The injury or illness is work-related.
DEVELOPMENT BOARD 2. It occurred during the term of the sea-farer’s
 RA 8042 amended by RA 10022 – Policies on contract.
Migrant Workers
POEA and Its Functions  INVALID SIDE AGREEMENT – an
1. Administrative agreement that diminishes the employee’s pay
2. Regulatory and benefits; void.
3. Enforcement GR: Workers have the right to security of tenure.
4. Adjudicatory XPN: Employment-At-Will Contract
REALIGNMENT OF JURISDICTION
RA 8042 transferred employer-employee LEGAL INTEREST RATE – placement fee to be
relations cases from the POEA to the NLRC including reimbursed to an OFW whose employment is
money claims. unlawfully terminated:
JURISDICTION RETAINED WITH POEA 12% - Sec 10 RA 1042
a. Administrative in character 6% - per annum interest rate
b. Disciplinary action cases
 The Office of the DOLE Secretary shall have ART 21 FOREIGN SERVICE ROLE AND
exclusive original jurisdiction on appeals cases PARTICIPATION
decided by POEA.
PROTECTION AND ASSISTANCE OF GOV’T
ART 18 BAN ON DIRECT HIRING AGENCIES
GR: Direct hiring of Filipino workers by a foreign 1. DFA – take priority action or make
employer is not allowed. representation with the foreign authority to protect the
XPN: (I-N-O-M) rights of migrant workers and OFWs.
1. International Organizations 2. DOLE – see to it that labor and social
2. Name Hiring welfare laws in the foreign countries are applied to
3. Other allowed by law migrant workers/OFWs.
4. Members of the diplomatic corps 3. POEA – regulate private sector participation
*Name-hirees – individual workers who are able to in the recruitment and overseas placement of workers
secure contracts for overseas employment on their own by licensing and registration system.
efforts and representations without assistance or 4. OWWA – develops and implements
participation of any agency. programs and services to OFWs and their families.
GR: Public employment offices may do direct hiring.
XPN: Art 25 (Private)  Repatriation of the worker and the transport of
XPN to XPN: If the employer is doing the recruitment his personal belongings shall be the primary
and placement, no license is required for local responsibility of the agency.
employment.  Repatriation of remains shall be borne by the
XPN to the XPN to the XPN: License is required for principal or local agency.
overseas employment.
Three Requirements Mandatory for the Complete - 1M (min paid up capita) –
Termination of the Employment Contract: corporation
1. Termination due to expiration of other Overseas Employment
reasons/causes - 5M (min capitalization) – single
2. Signing off from the vessel - 5M (min paid up capita) – corpo
3. Arrival at the point of time Validity of License - 3 yrs from the date of issuance
 Domestic Seafarers are:
- Contractual, not regular ART 29 NON-TRANSFERABILITY OF LICENSE
- Entitled to security of tenure OR AUTHORITY
 No license or authority shall be used directly
ART 22 MANADATORY REMITTANCE OF or indirectly by any person other than the
FOREIGN EXCHANGE holder of it.
- Mandatory for all Filipino workers  No license may be transferred, conveyed,
abroad to permit a portion of their assigned to any person.
forex earnings to their: (Fa-De-
Be) ART 30 REGISTRATION FEES
o Families  Labor Secretary shall promulgate schedule of
o Dependents fees of license/authority applicants.
o Beneficiaries ART 31 BONDS
ART 23 COMPOSITION OF THE BOARDS  All applicants shall post:
ART 24 BOARDS TO ISSUE RULES AND o Cash and surety bonds
COLLECT FEES  To guarantee compliance with
prescribed recruitment
REQUISITES AND CONDITIONS OF LICENSE proceedings.

 Agencies licensed to engage in recruitment ART 32 FEES TO BE PAID BY WORKERS
and placement for local employment are GR: No fees shall be collected neither deducted from
prohibited from engaging in job contracting or the salaries or wages of the workers.
subcontracting activities.  Any agency may charge employers:
o Service Fee
ART 25 PRIVATE SECTOR PARTICIPATION o Transpo Fee
IN THE RECRUITMENT AND PLACEMENT OF  Fees charged to OFW
WORKERS o Placement fee; EXCEPT:
- Private employment sector shall  Domestic worker
participate in the recruitment and  Workers to be deployed in
placement of workers, locally or countries without recruitment
overseas, under regulation of o Documentation cost (passport etc)
DOLE.
 POEA has the power to order refund of
- XPN to ART 16
illegally collected fees.
ART 33 REPORTS ON EMPLOYMENT STATUS
ART 26 TRAVEL AGENCIES PROHIBITED TO
- Job vacancies
RECRUIT
- Details of job requisitions
- Travel and sales agencies
- Separation from jobs
- Wages
ART 27 CITIZENSHIP REQUIREMENT
- Terms and conditions
Only Filipino citizens/corps etc at least 75% of
- Other employment data
the authorized and voting capital stock which is owned
ART 34 PROHIBITED ACTS (OFMIIROC-FTW)
and controllably Filipino citizens
1. Overcharging
- Permitted to participate in the
2. False Notice
recruitment and placement of
3. Misrepresentation to Secure License
workers, locally or overseas.
4. Inducement to quit
5. Influence not to employ
ART 28 CAPITALIZATION
6. Recruitment of harmful jobs
All applicants for license or authority:
7. Obstructing Inspection
- Required to have substantial
8. Contract Substitution
capitalization
9. Failure to File Reports
Local Employment
10. Travel or Sales Agencies’ Officers
- 1M (min net worth) – single
11. Withholding travel documents
proprietorship and partnership
ART 35 SUSPENSION AND/OR  Illegal recruitment in large scale and illegal
CANCELLATION OF LICENSE/AUTHORITY recruitment by syndicate are separate or
- Minister of Labor has the power to independent categories.
suspend or cancel any license or Distinct Impression
authority to recruit employees for To prove that the accused was engaged in
overseas employment. recruitment activities, it must be shown that the
 DOLE Secretary and POEA Administrator accused gave the complainant the direct impression
have concurrent jurisdiction to suspend or that she had the power or ability to send the
cancel a license. complainant abroad for work (People v. Goce)
 A recruitment agency is solidarily liable for Lack of Receipts
the unpaid worker it recruited for employment Absence of receipts cannot defeat a criminal
with the principal. procedure for illegal recruitment.
Credible testimonial evidence may suffice.
Theory of Imputed Knowledge – Knowledge of Agent
to the Principal/Employer (Sunace Case) Persons Liable for Illegal Recruitment
- Principals
 A foreign corporation which hires Filipino - Accomplices
workers is suable under PH courts. - Accessories
Salazar v. Achacoso and Marquez
ILLEGAL RECRUITMENT AND OTHER - Article 38 (c) LC is unconstitutional
PROHIBITED ACTIVITIES - Only judge may issue warrant of arrest or
search
ART 36 REGULATORY POWER - Secretary of Labor may no longer issue search
Secretary of Labor or arrest warrants.
- Power to restrict and regulate the
recruitment and placement ARTICLE 39 PENALTIES
activities of all agencies - Life Imprisonment (Penalty for Illegal
- Authorized to issue orders and Recruitment as Economic Sabotage)
promulgate rules and regulations  Illegal Recruitment for Overseas – Sec 7 RA
to carry out objectives 8042
 Illegal Recruitment for Local Employment –
ART 37 VISITORIAL POWER Art 39 LC
Secretary of Labor Venue
- Inspect the premises, books of - Criminal action arising from illegal
accounts, and records of any recruitment shall be filed with:
person or entity o RTC
- Require it to submit reports o Province or City where the offense
regularly on prescribed forms was committed
- Act on violations o Province or city where the offended
ART 38 ILLEGAL RECRUITMENT party actually resides
Two Kinds of Illegal Recruiter Prescriptive Periods
1. Licensee - Simple Illegal Recruitment – 5 YEARS
2. Non-licensee - Illegal Recruitment as Economic Sabotage - 20
- Illegal Recruitment for Local Employment YEARS
(OFMIIROC)
- Illegal Employment for Overseas Employment
(MNIW-F2-N2-S3-VEC)
Simple Illegal Recruitment – committed by any person
who is neither a licensee or non-licensee against one or
two persons only.

Illegal Recruitment as Economic Sabotage

1. When Committed by Syndicate – carried out by a
group of three or more persons conspiring and/or
confederating with one another.
2. When committed in Large Scale – committed
against three or more persons individually or as a
group.