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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.
AT A GLANCE
- A license is issued for private employment agencies.
- An authority is given to private recruitment agencies.
Under the Labor Code, “recruitment and placement” refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not; provided that any person or entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement.
Jurisprudence says:
The number of persons dealt with is not an essential ingredient of the act of recruitment and placement of workers. Any of the acts mentioned in the basic rule in Article 13(b) win constitute recruitment and placement even if only one prospective worker is involved. The proviso merely lays down a rule of evidence that where a fee is collected in consideration of a promise or offer of employment to two or more prospective workers, the individual or entity dealing with them shall be deemed to be engaged in the act of recruitment and placement. The words “shall be deemed” create that presumption. (People of the Philippines vs. Hon. Domingo Panis, G.R. Nos. L-58674-77, July 11, 1990)
What is a license?
The law says:
“License” means a document issued by the Department of Labor authorizing a person or entity to operate a private employment agency. (Section 13(d), Labor Code of the Philippines)
What is an authority?
The law says:
“Authority” means a document issued by the Department of Labor authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity. (Section 13(f), Labor Code of the Philippines)
Who may suspend and/or cancel a license or authority?
Jurisprudence says:
The power to suspend or cancel any license or authority to recruit employees for overseas employment is vested upon the Secretary of Labor and Employment. (Trans Action Overseas Corporation vs. The Honorable Secretary of Labor, G.R. No. 109583 September 5, 1997)
The law says:
Article 35. Suspension and/or Cancellation of License or Authority – The Minister of labor shall have the power to suspend or cancel any license or authority to recruit employees for overseas employment for violation of rules and regulations issued by the Ministry of Labor, the Overseas Employment Development Board, or for violation of the provisions of this and other applicable laws, General Orders, and Letters of Instructions. (Article 35, Labor Code)
The Philippine Overseas Employment Administration, in the exercise of adjudicatory power, may impose the penalty of reprimand, suspension, or cancellation or revocation of license for pre-employment/recruitment violation cases. (Section 10, Republic Act No. 10022 also known as the Migrant Workers and Overseas Filipino Act of 1995)
Note that the Ministry of Labor is now the Department of Labor and Employment. The Overseas Employment Development Board has been replaced by the Philippine Overseas Employment Administration. General Orders and Letters of Instruction refer to issuances by the President of the Republic in his capacity as Commander-in-Chief of the Armed Forces of the Philippines. (Article 35, Labor Code)
What is the difference between a license and an authority?
A license is issued for private employment agencies. Private fee-charging employment agencies mean any person or entity engaged in recruitment and placement of workers for a fee which is charged, directly, or indirectly, from the workers or employers or both. (Section 13(c), Labor Code)
On the other hand, an authority is given to private recruitment agencies. Private recruitment entities mean 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 and employers. (Section 13(e), Labor Code)
Related article: Who are disqualified from engaging in the recruitment and placement of workers for overseas employment?
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