Labor Law and Social Legislation › Recruitment and Placement › Local Employment › Employment Office or Agency › Private Employment Entities

i. Employment Agency vs. Recruitment Entity

Private Employment Agency (PEA) v. Private Recruitment Entity (PRE) [Art. 13 (c), (e)]

Private Employment Agency Private Recruitment Entity
Definition 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 Any person or association engaged in the recruitment and placement of workers, locally or overseas, without charging, directly or indirectly, any fee
Requirement License Authority

Conditions for a valid outsourcing

  • Motivated by good faith; and
  • Must not have been resorted to circumvent the law and must not have been the result of malicious or arbitrary action (Manila Electric v. Quisumbing, G.R. No. 127598, 1999; Bankard v.NLRC, G.R. No. 171664, 2013)