i. Non-transferability

Non-transferability of License or Authority

Concept

A license or authority is personal to the person in whose favor it was issued. Article 29 of the Labor Code prohibits another person from using it, whether directly or indirectly. It also restricts use to the place stated in the license or authority. The holder therefore cannot treat the issuance as permission for someone else to operate under it or for its use at a different place. (Art. 29, Labor Code)¹

Governing provisions

Article 29 prohibits the transfer, conveyance, or assignment of a license or authority to another person or entity. It separately requires prior approval of the Department of Labor for a transfer of business address, the appointment or designation of an agent or representative, and the establishment of additional offices anywhere. These are distinct restrictions in the same provision. (Art. 29, Labor Code)¹

Requisites / Rules

• Authorized user. Only the person in whose favor the license or authority was issued may use it. The prohibition covers use by another person both directly and indirectly. (Art. 29, Labor Code)¹
• Authorized place. The license or authority may not be used at a place other than the one stated in it. The stated place matters independently of the identity of the user. (Art. 29, Labor Code)¹
• No assignment. The license or authority may not be transferred, conveyed, or assigned to another person or entity. Article 29 states this prohibition separately from its rule against use by another person. (Art. 29, Labor Code)¹
• Prior approval. A transfer of business address, an appointment or designation of an agent or representative, or the establishment of additional offices anywhere is subject to the Department of Labor’s prior approval. (Art. 29, Labor Code)¹

Distinctions

Distinguish transferring the license or authority from transferring the business address. Article 29 prohibits the former; it subjects the latter to prior approval. Likewise, appointing an agent or representative is an approval matter, but that requirement does not remove the separate prohibition against another person’s direct or indirect use of the license or authority. (Art. 29, Labor Code)¹

Key doctrines

The controlling limits concern the holder, the stated place, and changes in business arrangements. Compliance with one limit does not dispense with the others: use by the named holder does not, by itself, permit use at another place, and a proposed new office remains subject to prior approval. (Art. 29, Labor Code)¹

Bar tip

For an Article 29 problem, check who uses the license or authority, where it is used, whether it is being assigned, and whether a change of address, agent, representative, or additional office received prior approval. (Art. 29, Labor Code)¹