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

ii. License or Authority Requirement

License and Authority [Art. 13(d) and (f); Sec. 3 (h)(g), DO 141-14]

License Authority
Document issued by the Department of Labor and Employment (DOLE)
Authorize an entity to operate as a private employment agency Authorize an entity to operate as a private recruitment entity
When a license is given, one is also authorized to collect fees Does not entitle a private recruitment entity to collect fees.

Entities Disqualified from Engaging in the Business of Recruitment and Placement of Workers for Local Employment

  • Travel agencies and sales agencies of airline companies, whether for profit or not [Sec. 5, DOLE Department Order No. 141-14];
  • Those who are convicted of illegal recruitment, trafficking in persons, anti-child labor violation, or crimes involving moral turpitude;
  • Those against whom probable cause or prima facie finding of guilt for illegal recruitment or other related cases exist particularly to owners or directors of agencies who have committed illegal recruitment or other related cases;
  • Those agencies whose licenses have been previously revoked or cancelled by the Department under Sec. 54 of 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 (DOLE);
  • Sole proprietors of duly licensed agencies are prohibited from securing another license to engage in 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 [Sec. 5, DO 141-14, Revised Rules and Regulations Governing Recruitment and Placement for Local Employment].

Profit or Lack Thereof - Immaterial

It is the lack of the necessary license or authority, not the fact of payment that renders the recruitment activity of the agency unlawful. (C.F. Sharp vs. Espanol, G.R. No. 155903, 2007)

(1) Simple Illegal Recruitment

Simple illegal recruitment is illegal recruitment not committed by a syndicate or on a large scale. It may be committed by a person without the required license or authority, or through the prohibited acts enumerated in Sec. 6 of RA 8042, as amended by RA 10022, including acts by a licensee or holder of authority.

When maximum penalty is imposed:

  • If the person illegally recruited is less than 18 years of age; or
  • If committed by a non-licensee or non-holder of authority (R.A. No. 8042, Sec. 7)