(a) Non-transferability

Non-transferability

Concept

A recruitment license or authority is specific to the person or entity in whose favor it was issued. It cannot be lent to another person for use in recruitment, whether directly or indirectly, and it cannot be transferred, conveyed, or assigned. The rule also limits use to the place stated in the license or authority. (Art. 29, Labor Code)¹

Governing provisions

Article 29 of the Labor Code states the non-transferability rule and requires prior Department of Labor approval for specified changes involving the business address, agents or representatives, and additional offices. Article 15 places private-sector recruitment and placement within a registration or licensing system. These provisions treat authorization as tied to an identified holder and regulated operations, rather than as a document that anyone may use. (Art. 29, Labor Code)¹ (Art. 15, Labor Code)²

Requisites / Rules

• Authorized user. Only the person or entity in whose favor the license or authority was issued may use it. The prohibition covers both direct use by another and indirect use through another. (Art. 29, Labor Code)¹
• No assignment. A holder cannot transfer, convey, or assign its license or authority to another person or entity. A proposed recipient cannot rely on the holder’s document as its own authorization. (Art. 29, Labor Code)¹
• Place of use. The license or authority cannot be used at a place other than the one stated in it. A change in business address requires prior approval of the Department of Labor. (Art. 29, Labor Code)¹
• Personnel and offices. The appointment or designation of an agent or representative, and the establishment of additional offices anywhere, likewise require prior Department of Labor approval. (Art. 29, Labor Code)¹

Distinctions

Do not confuse a prohibited transfer of the license or authority with an operational change for which Article 29 prescribes prior approval. The former would make another person or entity the user or recipient of the authorization; the latter concerns such matters as the holder’s address, agents or representatives, and additional offices. Prior approval for an operational change is not a rule allowing assignment of the license itself. (Art. 29, Labor Code)¹

Key doctrines

The requirement of proper authorization matters when assessing recruitment acts. The Court has explained that overseas recruitment activities, including promising or advertising employment abroad, may constitute illegal recruitment when undertaken without the required license or authority. This reinforces why another person’s license cannot simply be invoked as authority to recruit. (People v. Tolentino, G.R. No. 208686, 1 July 2015)³ (Art. 29, Labor Code)¹

Exceptions

Article 29 states no exception permitting transfer, conveyance, or assignment of a license or authority. Its provision for prior approval applies to the specified operational changes; it does not expressly permit a different person or entity to use the authorization. (Art. 29, Labor Code)¹

Bar tip

Ask two separate questions: Who is using the license or authority, and where is it being used? Then check whether a change of address, agent, representative, or office obtained prior approval. (Art. 29, Labor Code)¹