(b) Suspension or Cancellation

Suspension or Cancellation of a Recruitment License or Authority

Concept

Suspension or cancellation is a regulatory consequence for violations involving a license or authority to recruit workers for overseas employment. Article 35 gives the labor authority the power to suspend or cancel that license or authority; the source identifies the Ministry of Labor as the present Department of Labor and Employment (DOLE). (Art. 35, Labor Code)¹

Governing provisions

Article 35 addresses suspension or cancellation for violations of recruitment rules and regulations, the Labor Code, and other applicable laws and issuances identified in the provision. Article 36 separately empowers the Secretary of Labor to restrict and regulate recruitment and placement activities and to issue implementing orders and rules. (Art. 35, Labor Code)¹ (Art. 36, Labor Code)²

The material accompanying Article 35 also states that, under Section 10 of Republic Act No. 10022, the POEA may impose reprimand, suspension, or cancellation or revocation of a license when exercising adjudicatory power over pre-employment or recruitment violation cases. It points to separate PRPA guidelines for local employment; the contents of those guidelines are not supplied here. (Art. 35, Labor Code)¹

Requisites / Rules

• The subject of Article 35’s suspension or cancellation power is a license or authority to recruit employees for overseas employment. Its stated basis is a violation of the rules, regulations, laws, or other issuances covered by that article. (Art. 35, Labor Code)¹
• A recruitment-related prohibited act may provide the underlying violation. For example, Article 34 prohibits charging or accepting more than the prescribed allowable fee, as well as making a worker pay more than the amount actually received as a loan or advance. (Art. 34, Labor Code)³
• Regulatory power and a specific penalty should be kept distinct: Article 36 authorizes regulation and rulemaking, while Article 35 expressly provides the power to suspend or cancel for covered violations. (Art. 36, Labor Code)² (Art. 35, Labor Code)¹

Distinctions

Do not confuse cancellation of a recruitment license with cancellation of a labor organization’s certificate of registration. The supplied Article 238 text addresses the latter and requires a due hearing on its specified grounds; Article 35 concerns authority to recruit for overseas employment. (Art. 238, Labor Code)⁴ (Art. 35, Labor Code)¹

Key doctrines

Cancellation of an entity’s recruitment license automatically disqualifies its officers and directors from participating in the government’s overseas employment program. The consequence applies even if an administrative decision does not expressly state it. (Republic v. Humanlink Manpower Consultants, Inc., G.R. No. 205188, 21 December 2015)⁵

Exceptions

The supplied recruitment provisions and case do not state an exception to that automatic consequence. Section 32 of Republic Act No. 4566 says that lapse, suspension, or voluntary surrender does not remove the Board’s disciplinary jurisdiction, but it concerns a different licensing regime and should not be treated as a recruitment-license rule. (Republic v. Humanlink Manpower Consultants, Inc.)⁵ (Sec. 32, Rep. Act No. 4566)⁶

Bar tip

Identify the violation, the license or authority affected, and the applicable regulatory power. If the recruitment license is cancelled, state the consequence for the entity’s officers and directors even when the decision omits it. (Art. 35, Labor Code)¹ (Republic v. Humanlink Manpower Consultants, Inc.)⁵