According to the Department of Migrant Workers, about ten (10) million Filipinos live abroad and around a million leave the country each year. This represents seven percent (7%) of Filipino households per the Social Weather Stations. Overseas Filipino Workers' (OFWs) humungous contributions to the economy cannot be discounted as they remitted more than 1.8 trillion pesos in 2022. Deployment continues to soar as demand for Filipino workers increases.

This labor arrangement necessitates strict compliance with the requirements of recruitment and placement activities to protect the interests of OFWs. Article 13 (b) of the Labor Code defines recruitment and placement as “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 [x x x] [by] any person or entity which, in any manner, offers or promises for a fee employment.” An entity may engage in the said activities provided that at least seventy-five percent (75%) of its authorized and voting capital stock is owned or controlled by Filipino citizens, that it obtained a license from the Department of Migrant Workers, and that it is not among those disqualified by law. Among the initial requirements for a license are:

• Written application
• Proof of business registration and minimum P5 million paid-up capital
• Proof of financial capacity
• Proof of marketing capability
• List of all officials and personnel involved in recruitment and placement
• Certificate of attendance of proprietor/president/managing partner or CEO to the pre-licensing orientation seminar

The Secretary of the Department of Migrant Workers may impose administrative sanctions against a licensed recruitment agency for serious, less serious, and light offenses. Proprietors must take note that foreign employers have joint and solidary liability with local recruitment and placement agencies for all claims arising out of an employer-employee relationship or any law or contract involving Filipino workers for overseas deployment under Section 10 of the Migrant Workers Act. The termination of their relationship does not relieve any party of liabilities as their responsibilities exist until the expiration of the contracts of those recruited and employed. Moreover, corporate officers, directors, and partners are likewise solidarily liable with the recruitment and placement agency.

For any legal assistance you may need, you may send your inquiries and other legal concerns to info@gqlaw.com.ph.