Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session
43

HOUSE BILL NO.,

Introduced by Representative Estrellita B. Suansing

EXPLANATORY NOTE

This bill requires a private recruitment entity or private employment agency to
establish and maintain an office or branch in the country where it deploys overseas
ino workers, amending for the purpose Presidential Decree No. 442, as amended,
otherwise known as the “Labor Code of the Philippines.”

The overseas Filipino workers (OFWs) are recognized as the modern-day
heroes because of their significant contributions to the national economy through their
foreign exchange remittances. In 2015, the Philippine Statistics Authority estimated
the number of OFWs at 2.4 million and the Bangko Sentral ng Pilipinas reported that
their total cash remittances amounted to $25.76 billion. Despite the contributions of
OFWs in nation building and the existence of laws protecting them, numerous cases
of abuse and rampant violations of their labor rights have been reported. Many OFWs
are confronted with different work problems such as breach of contracts, illegal
dismissals, unpaid salaries, maltreatments and other forms of abuse. In many cases,
abused OFWs find it very difficult to file complaints against their foreign employer.

One important aspect of the Philippine labor migration policy is the concept of
joint and solidary liability of the local recruitment agency and foreign principal in
addressing workers issues and concerns. This means that a local recruitment agency
may be held liable for any breach or violation of an employment contract by the foreign
employer. However, recruitment agencies are based here in the Philippines and the
abused OFWs need to return to the Philippines to file a complaint or deal directly with
their agencies, thus, they have no other option but to return to their home country
without receiving their unpaid salaries, benefits and other money claims

Under this bill, private recruitment entities or private employment agencies are
required to establish and maintain an office or branch in the country where they deploy
overseas Filipino workers to ensure that the terms and conditions of the workers’
employment contract are properly implemented and coordinated with the foreign


employer and the agency. This will provide immediate and accessible remedy for our
workers in the foreign land. This bill will also ensure the protection and security of our
migrant workers.

In view of the foregoing, approval of this bill is earnestly recommended. .



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS,
First Regular Session

House BILL No, 4314

Introduced by Representative Estrellita B. Suansing

AN ACT
REQUIRING A PRIVATE RECRUITMENT ENTITY OR PRIVATE EMPLOYMENT
AGENCY TO ESTABLISH AND MAINTAIN AN OFFICE OR BRANCH IN THE
COUNTRY WHERE IT DEPLOYS OVERSEAS FILIPINO WORKERS AMENDING FOR
THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE
KNOWN AS THE “LABOR CODE OF THE PHILIPPINES”

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Article 25 of Presidential Decree No. 442, as amended, is hereby
further amended to read as follows:

“Article 25. Private sector participation in the recruitment and
placement of workers. — Pursuant to national development objectives and in
order to harness and maximize the use of private sector resources and
initiative in the development and implementation of a comprehensive
employment program, the private employment sector shall participate in the
recruitment and placement of workers, locally and overseas, under such
guidelines, rules and regulations, as may be issued by the Secretary of Labor
and Employment.

A PRIVATE RECRUITMENT ENTITY OR PRIVATE EMPLOYMENT
AGENCY ENGAGED IN THE RECRUITMENT AND PLACEMENT OF
OVERSEAS FILIPINO WORKERS IS REQUIRED TO ESTABLISH AND
MAINTAIN AN OFFICE OR BRANCH IN THE COUNTRY WHERE IT
DEPLOYS MORE THAN TEN (10) OVERSEAS FILIPINO WORKERS AS


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A REQUIREMENT FOR THE ISSUANCE AND RENEWAL OF THE
LICENSE TO OPERATE.

THE OFFICE OR BRANCH SHALL SERVE AS A LIAISON OFFICE
OF THE OVERSEAS FILIPINO WORKERS ABROAD TO THE LOCAL
PRIVATE EMPLOYMENT ENTITY OR AGENCY. IT SHALL
COORDINATE AND FACILITATE THE TRANSACTIONS AND CLAIMS
OF THE OVERSEAS FILIPINO WORKER UNDER THE EMPLOYMENT
CONTRACT.”

SEC. 2. All laws, decrees, executive orders, proclamations, rules and regulations
and other issuances or part or parts thereof which are inconsistent with the provisions of
this Act are hereby amended or modified accordingly.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.

Approved,