Labor Code: PD 442 RA 6715

Labor Code
PD 442 as amended by RA 6715
Article 16 - 24
ENDO
Sec. 18, Art. II
Manggagawa 1987 Phil. Consti Employer - Employee
Labor Union ng Pinoy Relationship
Article 16
Private Recruitment. Except as provided

in Chapter II of this Title, no person or
entity other than the public employment
offices, shall engage in the recruitment
and placement of workers.
No person or entity shall engage in recruitment, other than
the following:
• Public employment offices;

• POEA (E.O. 797);
• Private recruitment offices;
• Private employment agencies;
• Shipping or manning agencies;
• Other persons or entities under (Rule III, Sec. 1, Book 1
of Rules to Implement the Labor Code)
Philippine Overseas Employment Administration
(POEA)
• POEA shall recruit and place workers primarily

on government-to-government arrangements.
• POEA shall deploy only to countries where the

Philippines has concluded bilateral agreements
or arrangements.
Article 17
Overseas Employment Development Board.
An Overseas Employment Development Board is hereby created to
undertake, in cooperation with relevant entities and agencies, a
systematic program for overseas employment of Filipino workers in
excess of domestic needs and to protect their rights to fair and
equitable employment practices. It shall have the power and duty:
1. To promote the overseas employment of Filipino workers
through a comprehensive market promotion and development
program;
2. To secure the best possible terms and conditions of

employment of Filipino contract workers on a government-to-
government basis and to ensure compliance therewith;
3. To recruit and place workers for overseas employment on a

government-to-government arrangement and in such other
sectors as policy may dictate; and
4. To act as secretariat for the Board of Trustees of the Welfare

and Training Fund for Overseas Workers.
E.O. 797: REORGANIZING THE MINISTRY OF LABOR AND
EMPLOYMENT, CREATING THE PHILIPPINE OVERSEAS EMPLOYMENT
ADMINISTRATION, AND FOR OTHER PURPOSES.
E.O. 797 abolished the Overseas Employment Development Board

• Bureau of Employment Services
• Bureau of Apprenticeship
• Free Legal Assistance Office
• National Seamen Board
• Overseas Employment Development Board
• Population/Family Planning Office
However, it created the POEA

Sec. 3, E.O. 247, s. 1987: Powers and Functions of the POEA
a. Regulate private sector participation in the recruitment and overseas
placement of workers by setting up a licensing and registration system;
b. Formulate and implement, in coordination with appropriate entities

concerned, when necessary, a system for promoting and monitoring the
overseas employment of Filipino workers taking into consideration their
welfare and the domestic manpower requirements;
c. Protect the rights of Filipino workers for overseas employment to fair and
equitable recruitment and employment practices and ensure their welfare;
d. Exercise original and exclusive jurisdiction to hear and decide all claims
arising out of an employer-employee relationship or by virtue of any law or
contract involving Filipino workers for overseas employment including the
disciplinary cases
All prohibited recruitment activities and practices which are penal in character as
enumerated and defined under and by virtue of existing laws, shall be
prosecuted in the regular courts in close coordination with the appropriate
Departments and agencies concerned;
e. Maintain a registry of skills for overseas placements;
f. Recruit and place workers to service the requirement for trained and
competent Filipino workers by foreign governments and their instrumentalities
and such other employers as public interest may require;
(g) Promote the development of skills and careful selection of Filipino workers
for overseas employment;
(h) Undertake overseas market development activities for placement of

Filipino workers;
(i) Secure the best terms and conditions of employment of Filipino contract
workers and ensure compliance therewith;
(j) Promote and protect the well-being of Filipino workers overseas;
(k) Develop and implement programs for the effective monitoring of returning
contract workers, promoting their re-training and re-employment or their
smooth-re-integration into the mainstream of national economy in
coordination with other government agencies;
(l) Institute a system for ensuring fair and speedy disposition of cases
involving violation of recruitment rules and regulations as well as
violation of terms and conditions of overseas employment;
(m) Establish a system for speedy and efficient enforcement of decisions

laid down through the exercise of its adjudicatory function;
(n) Establish and maintain close relationship and enter into joint projects
with the Department of Foreign Affairs, Philippine Tourism Authority,
Manila International Airport Authority, Department of Justice,
Department of Budget and Management and other relevant government
entities, in the pursuit of its objectives. The Administration shall also
establish and maintain joint projects with private organizations, domestic
or foreign, in the furtherance of its objectives.
Article 18
Ban on direct-hiring – No employer may hire a

Filipino worker for overseas employment except
through the Boards and entities authorized by
the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international
organizations and such other employers as may
be allowed by the Secretary of Labor is
exempted from this provision.
A Filipino worker hired directly by a foreign employer without
government intervention may not be assured of the best
possible terms and conditions of employment.
He is not in the condition to know the financial condition of the

foreign employer and the prevailing terms and conditions of
employment of the host country.
Exemptions:
• hired by diplomatic corps;
• International organizations that
are allowed by the Secretary of
Labor
Article 19
Office of Emigrant Affairs. – (a) Pursuant to the national
policy to maintain close ties with Filipino migrant
communities and promote their welfare as well as establish
a data bank in aid of national manpowerpolicy formulation,
an Office of Emigrant Affairs is hereby created in the
Department of Labor. The Office shall be a unit at the
Office of the Secretary and shall initially be manned and
operated by such personnel and through such funding as
are available within the Department and its attached
agencies. Thereafter, its appropriation shall be made part
of the regular General Appropriations Decree.
(b) The office shall, among others, promote the well-being of emigrants and
maintain their close link to the homeland by:
1) serving as a liaison with migrant communities;
2) provision of welfare and cultural services;
3) promote and facilitate re-integration of migrants into the national

mainstream;
4) promote economic; political and cultural ties with the communities;
5) generally to undertake such activities as may be appropriate to

enhance such cooperative links.
Article 20
National Seamen Board. – (a) A National Seamen Board is
hereby created which shall develop and maintain a
comprehensive program for Filipino seamen employed
overseas. It shall have the power and duty:
1. To provide free placement services for seamen;

2. To regulate and supervise the activities of agents or
representatives of shipping companies in the hiring of
seamen for overseas employment and secure the best
possible terms of employment for contract seamen workers
and secure compliance therewith;
3. To maintain a complete registry of all Filipino seamen.
(b) The Board shall have original and
exclusive jurisdiction over all matters or
cases including money claims, involving
employer-employee relations, arising out of
or by virtue of any law or contracts
involving Filipino seamen for overseas
employment.
The decisions of the Board shall be appealable to the National
Labor Relations Commission upon the same grounds provided
in Article 223 hereof. The decisions of the National Labor
Relations Commission shall be final and inappealable.
Article 21
Foreign service role and participation. – To provide ample protection to
Filipino workers abroad, the labor attaches, the labor reporting officers
duly designated by the Secretary of Labor and the Philippine diplomatic or
consular officials concerned shall, even without prior instruction or advice
from the home office, exercise the power and duty:
(a) To provide all Filipino workers within their jurisdiction assistance on all
matters arising out of employment;
(b) To insure that Filipino workers are not exploited or discriminated

against;
(c) To verify and certify as requisite to authentication that the terms and
conditions of employment in contracts involving Filipino workers are in
accordance with the Labor Code and rules and regulations of the
Overseas Employment Development Board and National Seamen Board;
(d) To make continuing studies or researches and recommendations on

the various aspects of the employment market within their jurisdiction;
(e) To gather and analyze information on the employment situation and

its probable trends, and to make such information available; and
(f) To perform such other duties as may be required of them from time to
time.
Article 22
Mandatory remittance of foreign exchange earnings. – It shall be
mandatory for all Filipino workers abroad to remit a portion of their
foreign exchange earnings to their families, dependents, and/or
beneficiaries in the country in accordance with rules and
regulations prescribed by the Secretary of Labor.
Sec. 2, EO 857, s. 1982: All contracts of employment and agency or service agreements submitted to
the Ministry of Labor and Employment shall contain a proviso that shall make it mandatory for
workers to remit to the Philippines in foreign exchange at least the following portions of their
earnings;
a) Seamen or mariners: Seventy (70) percent of basic salary;
b) Workers of Filipino contractors and construction companies: Seventy (70) percent of basic salary;
c) Doctors, engineers, teachers, nurses and other professional workers whose contract provide for
free board and lodging: Seventy (70) percent of basic salary;
d) All other professional workers whose employment contracts do not provide for free board and
lodging facilities: Fifty (50) percent of basic salary;
e) Domestic and other service workers: 50% of basic salary;
f) All other workers not falling under the

aforementioned categories: 50% of basic salary.
Article 23
Composition of the Boards. – (a) The OEDB shall be composed of the
Secretary of ่มLabor
โปรดเพิ and่ น่ี Employment as Chairman, the Undersecretary of
เนื้ อหาเฉพาะที
Labor asคลิกVice-Chairman,and
ที่น่ี เพื่อเพิม ้ ความ ปรับสีและขนาด a representative each of the Department of
่ ขอ
Foreign Affairs, the Department of National Defense, the Central Bank,

the Department
โปรดเพิ่มเนื้ อหาเฉพาะที of ่ น่ี Education, Culture and Sports, the National
คลิกที่น่ี เพื่อเพิม
Manpower and่ ขอ้ Youth
ความ ปรับสีและขนาด
Council, the Bureau of Employment Services, a
workers organization and an employers organization and the Executive
่มเนื้ อหาเฉพาะที่ น่ี
Directorโปรดเพิ
of the OEDB as members.
คลิกที่น่ี เพื่อเพิม
่ ขอ
้ ความ ปรับสีและขนาด
(b) The National Seamen Board shall be composed of the Secretary of
Labor and Employment as Chairman, the Undersecretary of Labor as
Vice-Chairman, the Commandant of the Philippine Coast Guard, and a
representative each of the Department of Foreign Affairs, the
Department of Education, Culture and Sports, the Central Bank, the
Maritime IndustryAuthority, the Bureau of Employment Services, a
national shipping association and the Executive Director of the NSB as
members.
The members of the Boards shall

receive allowances to be determined
by the Board which shall not be more
than P2,000.00 per month.
(c) The Boards shall be attached to the Department of Labor for policy
and program coordination. They shall each be assisted by a Secretariat
headed by an Executive Director who shall be a Filipino citizen with
sufficient experience in manpower administration, including overseas
employment activities. The Executive Director shall be appointed by the
President of the Philippines upon the recommendation of the Secretary
of Labor and shall receive an annual salary as fixed by law. The
Secretary of Labor shall appoint the other members of the Secretariat.
(d) The Auditor General shall appoint his representative to the Boards
to audit their respective accounts in accordance with auditing laws and
pertinent rules and regulations.
Article 24
Amended by E.O. 797, E.O. 247. Further amended by RA 8042
Boards to issue rules and collect fees. – The Boards shall

issue appropriate rules and regulations to carry out their
functions. They shall have the power to impose and collect fees
from employers concerned, which shall be deposited in the
respective accounts of said Boards and be used by them
exclusively to promote their objectives.
The World howls for social justice, but when it comes to
social responsibility (minimum wage), you sometimes
cannot even hear crickets chirping
-Anonymous-
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Labor Code

PD 442 as amended by RA 6715

Private Recruitment. Except as provided

• Public employment offices;

• POEA shall recruit and place workers primarily

• POEA shall deploy only to countries where the

2. To secure the best possible terms and conditions of

3. To recruit and place workers for overseas employment on a

4. To act as secretariat for the Board of Trustees of the Welfare

E.O. 797 abolished the Overseas Employment Development Board

However, it created the POEA

b. Formulate and implement, in coordination with appropriate entities

e. Maintain a registry of skills for overseas placements;

(h) Undertake overseas market development activities for placement of

(j) Promote and protect the well-being of Filipino workers overseas;

(m) Establish a system for speedy and efficient enforcement of decisions

Ban on direct-hiring – No employer may hire a

He is not in the condition to know the financial condition of the

1) serving as a liaison with migrant communities;

2) provision of welfare and cultural services;

3) promote and facilitate re-integration of migrants into the national

4) promote economic; political and cultural ties with the communities;

5) generally to undertake such activities as may be appropriate to

1. To provide free placement services for seamen;

(b) To insure that Filipino workers are not exploited or discriminated

(d) To make continuing studies or researches and recommendations on

(e) To gather and analyze information on the employment situation and

a) Seamen or mariners: Seventy (70) percent of basic salary;

e) Domestic and other service workers: 50% of basic salary;

f) All other workers not falling under the

Foreign Affairs, the Department of National Defense, the Central Bank,

The members of the Boards shall

Boards to issue rules and collect fees. – The Boards shall

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