Recruitment and Placement of Workers- Reviewer

RECRUITMENT AND PLACEMENT OF WORKERS* worker- means any member of the labor force, whether employed or unemployed. * recruitment and placement- refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referrals, contract services and promising or advertising for employment, locally or abroad. Provided, that any person or entity which in any manner, offer or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement. - used tocreate presumption that an individual or entity is engaged in recruitment and placement. - the number of persons dealt with is not essential ingredient. Any acts mentioned will constitute recruitment and placement even if only one prospective worker is involved. * license- a document issued by DOLE authorizing a person or entity to operate a private employment agency. *authority- a document issued by DOLE authorizing a person or association to engage in recruitment and placement activities as private recruitment entity. *private fee-charging employment agency- any person or entity engaged in the recruitment and placement of workers for a fee which is charged, directly and indirectly from the workers or employers or both. *private recruitment entity- any person or assoc engaged in the recruitment and placement of workers, locally or overseas without charging directly or indirectly any fee from the workers or employers. POWERS OF THE SECRETARY OF LABOR AND EMPLOYMENT  To organize and establish new establishment offices in addition to the existing employment offices.  To organize and establish a nationwide job clearance and information system to inform applicants registering with a particular employment office of job opportunities here and abroad.  To organize a program that will facilitate occupational, industrial and geographical mobility of labor and provide assistance in the relocation of workers from one area to another.  to require any person, establishment,organization or institution to submit such employment information as may be presecribed by Sec of Labor. POWERS OF POEA 1. Regulate private sector participation in the recruitment and placement of overseas by licensing and registrations system. 2. Formulate and implement necessary system in monitoring the overseas employment of Filipino. 3. Protect the rights of Filipino workers. 4. Exclusive original and exclusive jurisdiction to hear and decide disciplinary cases. 5. Maintain registry of skills for overseas placements. 6. Recruit and place workers to service the requirement for trained filipino workers. 7. Promote and development of skills 8. Undertake overseas market development. 9. Secure the best terms and conditions of employment 10. Promote and protect the well-being of filipino workers overseas. 11. Establish a speedy and efficient enforcement of decisions. 12. Establish and maintain close relationship and enter into joint projects with DFA, Phil. Tourism, MIA, DOJ, DBM snd other relevant entities. REGULATORY POWERS OF THE POEA 1. Issuance of license 2. Suspension,cancellation or revocation of license 3. Approval of transfer of business address 4. Approval establishment of executive office outside of the registered address 5. Accreditation of principals or projects 6. Revocation of accreditation 7. Closure of agencies engaged in illegal recruitment 8. Registration of any charge in the composition of the board of directorsm officers and personnel of a recruitment agency. QUASI-JUDICIAL POWERS OF POEA The POEA exercises original and exclusive jurisdiction to hear and decide: a. Disciplinary cases involving overseas Filipino workers. b. All pre-employment cases which are administrative in character, involving or arising out of recruitment laws, rules and regulations including money claims or violations of the conditions for issuance of license to recruit workers. RECRUITMENT AND PLACEMENT BY THE POEA The POEA is authorized to recruit and place workers primarily on government-togovernment arrangements and thus service the hirings of foreign government ministries and instrumentalities. REQUIREMENTS to be SUBMITTED to the EMPLOYER: 1. work permit or visa assurance 2. recruitment order stating the number and categories of workers neededm compensation, benefits, qualification, guidelines, testing procedures etc, 3. Model employment contract 4. other documents which the POEA may find necessary. FORMALIZING a RECRUITMENT AGREEMENT. Employers hiring through POEA should formalize a recruitment agreement which contains the following: 1. responsibilities of the parties to the agreement 2. selection and documentation procedures 3. fee schedules and terms of payement 4. manner and facilities for remittance of workers salary 5. grievance machinery for workers 6. validity and revocation of the agreement. PROCEDURES IN RECRUITMENT AND PLACEMENT 1. interview and selection 2. Medical Examination 3. Travel Arrangements 4. Orientation- before departure for the worksite, hired workers shall undergo PreDepature Orientation Seminar (PDOS) NOTES: -it is the power to adjudicate cases particularly for the violation of rules in recruitment. - Administartive FN: sanction, penalize, revoke licenses and regualtory power. DISQUALIFICATION (employee) A. submission of fake documents B. breach of code of discipline for Filipino overseas workers C. Tampering with documents issued by POEA. D. other grounds determined by POEA BAN ON DIRECT-HIRING - No employer may hire a Filipino worker for overseas employment except through the Boards and entities authorized by DOLE. - Direct hiring by members of the diplomatic corps, International Organizations and other employes as may be allowed by DOLE is exempted from this provision. A name hire is also exempted from the ban including missionaries actually engaged in missionary work. * Name hire- is a worker who is able to secure contract for employment overseas on his own without the assistance or participation of an agency. (however, he should still undergo processing by the POEA.) FOREIGN SERVICE ROLE AND PARTICIPATION 1. to provide all Filipino workers within their jurisdiction assistance on all matters arising out of employment. 2. to insure that Filipino workers are not exploited or discriminated. 3. to verify and certify as requisite of authentication the terms and conditions of employment contracts. 4. to make continuing studies and researches 5. to gather and analyzed information on the employment situation and probable trends 6. to peform such other duties as may be required of them from time to time. - to inform the home country of the status of workers employed i their respective areas of assignment. MANDATORY REMITTANCE EXCHANGE EARNINGS OF FOREIGN * Mandatory remittance- is the amount or portion of the basic salary of Overseas Filipino workers required under existing laws and regulations to be remitted by the workers to their beneficiaries in the Philippines and sold for pesos to the Phils. Banking system. GENERAL RULE: ALL PERSONS SHOULD HAVE THEIR MANDATORY REMITTANCE. EXCEPTIONS: 1. where the workers immediate family members, dependents, or beneficiaries are residing with him abroad. 2. Filipino servicemen working in US military installations. 3. immigrants and Filipino professionals and employees working with UN agencies or specialized bodies. AMOUNT OF REMITTANCE (basic salary) 1. 80% - seamen or mariners 2. 70%- workers of Filipino contractors and construction companies; doctors, engineers, teachers, nurses and other professional whose employment contracts provide for free board and lodging. 3. 50%- other professionals does not provide free board and lodging, domestic and other service workers, other workers falling under the aforementioned categories. FAILURE TO REMIT; its penalty -shall be suspended or excluded from the list eligible workers for overseas employment. -Subsequent violations shall warrant his repatriation from the job site at the expense of the employer or at his expense. - Exclusion from the list or revocation of licenses or authority to recruit, without prejudice to other liabilities under existing laws and regulations. OBLIGATIONS OF RECRUITMENT AGENCIES - cause the inward remittance of foreign exchange payments resulting from their overseas transactions. - shall also submit periodic reports to the BSP on their foreign exchange earnings, copies of which will be furnished the POEA. REGULATION OF RECRUITMENT PLACEMENT ACTIVITIES AND Secretary of Labor to recruit seafarers for vessels plying international waters and for related maritime activities. NOTES:  upon receipt of an application for license with complete requirements, POEA shall require the payment of nonrefundable filing fee and submission thereof.  Within 15 calendar days from receipt of such application, POEA shall evaluate the pertinent documents, whether to grant or deny the application. PAYMENT OF FEES AND POSTING OF BONDS PURPOSE: - use to insure the success of the program between the government and private sector. PRIVATE SECTOR PARTICIPATION The following persons or entities in tne private sector may engage in the recruitment and placement of workers either for overseas employment: 1. private employment agency 2. private recruitment entity 3. shipping or manning agency 4. othe person authorized by Secretary of Labor and Employement. *Private employment agency with a licenserefers to any person or entity engaged in the recruitment and placement of workers for a fee which is charged, directly and indirectly from the workers or employers or both. *Private recruitment entity with an authorityrefers to any person or association engaged in the recruitment and placement of workers, locally, or overseas, without charging, directly or indirectly, any fee from the workers or employers. *Manning agency- refers to any person, partnership or corporation duly licensed by the  Applicant shall pay a license fee of P50,000. It shall submit and Escrow agreement in the amount of P1,000, 000.00, confirmation of escrow deposit with an accredited reputable bank and a surety bond of P100,000 from a bonding company acceptable to POEA and accredited with the Insurance Commission. RENEWAL OF LICENSE - failure to obtain renewal of its license within thirty calendar days from expiration thereof shall be immediately deemed listed and barred from engaging in recruitment and placement activities. REQUIREMENTS: 1.proof of foreign exchange earnings issued by BSP 2. surety bond duly renewed or revalidated 3. Escrow agreement in the amount of P200,000 with an acrediation of reputable banking corp. 4. replenishment of cash bond 5. proof of financial capavity but not limited to veified financial statements for past two years. 6. summary of deployment reports 7. summary of payroll reports 8. other requirements as may be imposed by the POEA. NOTE: -POEA shall conduct an inspection of the premises and pertinent documents of the applicant DENIAL of RENEWAL LICENSES 1. failure to conclude recruitment or manning agreement 2. failure to undertake the minimum levels of worker deployment and foreign exchange generation 3. failure to meet the minimum operational standards and requirements set by POEA. PRE-EMPLOYMENT TEST - trade test should only be conducted only after the agency and or its principal has interviewed the worker and the latter has prequalified for an existing overseas postion. -medical examination shall be conducted only after and or its principal shall have interviewed and trade tested or have prequalified the worker for an existing overseas position duly covered by an approved job order. DOCUMENTARY PROCESSING - as a pre-requisite for contract processing with POEA, submit for approval a recruitment order (RO) or crew order (CO) as the case may be, using the prescribed form which shall indicate the names, positions and salaries of selected contract workers. a. individual employment contract containing minimum provisions set by POEA. b. SEAFARERS- valid seamen service record book and seafarers registration card c. Land based- insurance certificate WORKER’s DEPLOYMENT a. 120 calendar days from the date of signing of EO for land based workers. b. 30 calendar days from the date of processing by the POEA of the employment contract for seafarers. REPATRIATION - OWWA sghall undertake the repatriation in case of war, epidemic, disasters or calamities, natural or manmade and the like. The Administration shall reimbursed by the responsible principal or agency. DISCUSSION: RULE V PLACEMENT COSTS FEES AND DOCUMENTATION Section 1. Fees Chargeable Against Principals. Agencies shall charge from their principals a service or manning fee to cover services rendered in the recruitment, documentation and placement of workers. Section 2. Fees/Costs Chargeable from Workers. a. Private employment agencies may charge placement fees as may be authorized by the Secretary from a hired worker to cover costs of placement and documentation services such as trade or skill testing, medical examination, passport, visa, clearances, inoculation, airport terminal fee, notarials, among others. The above charge shall be collected from a hired worker only after he has signed the employment contract and shall be covered by receipts clearly showing the amount paid. b. Manning agencies shall not charge any fee from seafarer-applicants for its recruitment and placement services. Section 3. Prohibition on Charging of Other Fees. - No other fees or charges including processing fees shall be imposed against any worker, except when authorized by law. Section 4. Seafarer’s Welfare Fund Contribution. - Every seafarer processed for deployment abroad shall contribute to the seafarer’s Welfare Fund. Section 5. Charges Deductible from Fees by Withdrawing Workers. - In case of withdrawal of the worker within one hundred twenty (!20) calendar days from the signing of the employment contract, the agency shall refund the amount paid by him after deducting such actual expenses incurred in the documentation of the worker as may be supported by receipts. PERSONS DISQUALIFIED FROM ENGAGING RECRUITMENT AND PLACEMENT 1. travel agencies and sales agencies of airline companies 2. officers or members of the Board of any corporation or partnership engaged in travel agency. 3. Corporations or partnerships, when any of its officers, members, board, partners, is also an officer. 4. Persons, partnerships or corporations which have deregatory records a. public offices b. private agencies c. shipping management corp d. other employees authorized by DOLE CITIZENSHIP- only Filipino citizens or corporations, partnership at least 75% of the authorized and voting capitals tock of which is owned and controlled by Filipino citizens shall be permitted in the recruitment and placement of workers, locally or overseas. LIMITATIONS ON THE USE OF LICENSE- the license may be extended upon request of the heirs, to continue only for the purpose of winding up business operations. CHANGE OF OWNERSHIP- shall cause the automatic revocation of the license. The new owner shall be required to apply for a license in accordance with the rules. Change of relationship may also cause of revocation if it is materially interrupts the course of business or results in actual dissolution of partnership. FEES TO BE PAID BY WORKERS- any person applying with a private fee charging employment agency for employment shall not be charged any fee until he has obtained employment through its efforts or has actually commenved employment. REGULATORY AND VISITORIAL POWERS - sole power of Secretary of Labor. -Or his duly authorized representative at any time. (office hours) ILLEGAL RECRUITMENT Recruitment activities including prohibited practices, undertaken by nonlicensees or non-holders of authority. A person is guilty of illegal recruitment when he gives the impression that he has the power to send workers abroad for work such that the latter were convinced to part with their money in order to be so employed. FOUR TYPES 1. simple/ licensee- committed by a licensee or holder of authority against one or two persons only. 2. non-licensee- committed by any person who is neither a licensee or holder of authority. 3. syndicated- committed by a syndicate if carried out by a group of three or more persons in conspiracy or confederation with one another. ( # of persons committed) 4. large-scale or qualified- committed against three or more persons, individually or as a group despite necessary license from POEA. Essential elements: 1. the offender is a licensee/non-licensee or holder/non-holder of authority engaged in therecruitment and placement of workers. 2. the offender undertakes either any recruitment activities defined under or any prohibited practices enumerated under art 34 * recruitment agency is solidarily liable with a foreign principal for the unpaid salaries of a worker it recruited for employment. *life time and a fine of not less than 500,000 nor more than 1,000,000 for large scale, syndicated and economic sabotage *ordinary- imprisonment not less than 6 years and one day but not more than twelve years and a fine of not less than 200, 000 nor more than 500,000. PRESCRIPTIVE PERIODS - illegal recruitment cases shall prescribe in 5 years. - however, if the illegal recruitment cases constitute economic sabotage, the same shall prescribe in twenty 20 years.