Photo from Unsplash | Priscilla Du Preez
The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.
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 Private Employment Agency refers to any individual, partnership, corporation, or entity licensed by the Department of Labor and Employment to engage in the recruitment and placement of workers for local employment.
- These Rules shall apply to persons, sole proprietors, partnerships, or corporations intending to engage or engaged in the recruitment and placement of industry workers for local employment through a private employment agency.
A Private Employment Agency (PEA) refers to any individual, partnership, corporation, or entity licensed by the Department of Labor and Employment to engage in the recruitment and placement of workers for local employment. (Section 4(q), Department Order No. 216, Series of 2020)
What are the qualifications for the registration of a Private Employment Agency?
The law says:
Section 1. Qualifications. The applicant for license to operate a PEA must possess the following:
a. Citizenship Requirement. For single proprietorship, the applicant must be a resident Filipino Citizen.
For partnership or domestic corporation, at least seventy-five percent of the authorized capital stock must be owned and controlled by resident Filipino citizens.
b. Capital Requirement. For single proprietorship, the applicant must have a minimum net worth of one million pesos (Php1,000,000.00).
For partnership or domestic corporation, the applicant must have a minimum paid-up capital of one million pesos (Php1,000,000.00), 75% of which must be owned by resident Filipino citizens as evidenced by the Articles of Partnership or Incorporation. (Section 1, Article II, D.O. No. 216, Series of 2020)
In addition to these qualifications, the applicant must likewise duly accomplish the application form together with a valid NBI clearance of the applicant owner, or the partners in case of partnership, or in case of corporation, its officers and directors; for single proprietorships, certified true copies of the Certificate of Business Name Registration and of the original application form from the Department of Trade and Industry. For partnerships and corporations, certified true copies of the Articles of Partnership, Certificate of Incorporation and By-Laws from the Securities and Exchange Commission, and updated General Information Sheet (GIS). Another requirement is documentary proof of ownership. Certificate/s of participation or attendance by the owner, partners, president, general managers, or agency’s management representatives to the Pre-Application Orientation are likewise needed. The Certificate of No Pending Case from the Department of Labor and Employment, a Notarized Affidavit, a proof for net worth and for paid-up capital, shall also be enclosed therein. (Section 3, Article II, D.O. No. 216, Series of 2020)
Who are disqualified from engaging in the business of recruitment and placement for local employment?
The law says:
Section 2. Disqualifications. – The following are not qualified to engage in the recruitment and placement of workers for local employment as a PEA:
- Those who have pending cases with probable cause for or convicted of illegal recruitment, trafficking in persons, anti-child labor law violation, or crimes involving moral turpitude;
- Those agencies, proprietors, partnerships, corporations whose licenses have been previously revoked or canceled by the DOLE under these Rules;
- Cooperatives whether registered or not under the Cooperative Act of the Philippines;
- Law enforcers and any official and employee of the Department of Labor and Employment;
- Current PEA licensed sole proprietors are prohibited from securing another license to engage in local recruitment and placement;
- Sole proprietors, partnerships or corporations licensed to engage in private recruitment and placement for local employment are prohibited from engaging in job contracting or subcontracting activities; and
- Technical-vocational training institutions and other training institutions. (Section 2, Article II, D.O. No. 216, Series of 2020)
These Rules shall apply to persons, sole proprietors, partnerships, or corporations intending to engage or engaged in the recruitment and placement of industry workers for local employment through a private employment agency. (Section 3, Article I, D.O. No. 216, Series of 2020)
Related article: Who are disqualified from engaging in the recruitment and placement of workers for overseas employment?
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
All rights reserved.