Private Recruitment and Placement Agency (PRPA) License

Private Recruitment and Placement Agency (PRPA) License

Contents

    Private Recruitment and Placement Agency License.
    Clients / Applicants.
    Requirements for New/Renewal License.
    Requirements for Establishment of Branch Office / Renewal of Authority to Operate a Branch Office.
    Validity Period of PRPA License.
    License Fee.
    Where to apply.
    Click here to download the application form.
    Click here to download the list of qualifications and requirements.
    Click here to download the important reminders to applicants and employers seeking assistance from a Licensed PRPA.
    Click here to download the implementing rules and guidelines.
    For additional information visit the Bureau of Local Employment website at www.ble.dole.gov.ph.



Private Recruitment and Placement Agency License

     Under Article 25 of the Labor Code of the Philippines, as amended, the Department is mandated to govern and regulate the activities of all individuals and entities engaged in the recruitment and placement of persons for local employment.

     The Private Recruitment and Placement Agency License is a license issued by the Department authorizing an individual, partnership, corporation or entity to operate a private recruitment and placement agency for local employment.



Applicants/Clients

    Must be a Filipino citizen, if single proprietorship. In case of partnership or a corporation, at least seventy-five percent (75%) of the authorized capital stock must be owned and controlled by Filipino citizens.
    Must have a minimum net worth of P200,000.00 in the case of single proprietorship and partnership or a minimum paid-up capital ofP500,000.00 in the case of corporation.
    The owner, partners or the officers of the corporation must be of good moral character and not otherwise disqualified by law.
    Must have an office space with a minimum floor area of fifty (50) square meters.
    Must issue an undertaking on the following:
        That they will not engage in the recruitment of children below 15 years of age or place children below 18 years old in hazardous occupation in accordance with Republic Act No. 9231 and other related laws, and;
        That they will assume full responsibility for all claims and liabilities which may arise in connection with the use of the license.
    Must have undergone orientation on rules and regulations on local recruitment.



Requirements:

    For New/Renewal License
        Duly filled up and notarized application form with undertaking.
        Certified copy of Certificate of Registration of firm or business name from Department of Trade and Industry (DTI) Business Name Registration for Single Proprietorship; or SEC Registration/By-Laws/Articles of Incorporation/Articles of Partnership for Partnership and/or Corporation - original copy to be presented.
            Must have a minimum paid-up capital of P500,000.00 for corporation.
            Must have a minimum net worth of P200,000.00 for single proprietorship and partnership.
        Specific address and location map of the office/proposed office.
        Specific address and location map of the office/proposed office.
        Contract of Lease for two (2) years or Owner’s Certificate/Title of Office location (minimum office floor area of 50 sq.m.) - original copy to be presented.
        Updated NBI Clearance of the applicant-owner, of the partners in the case of partnership or all the officers and members of the Board of Directors in the case of corporation - original copy to be presented.
        Organizational structure and list of all officers and personnel with their respective bio-data, two (2) passport size picture and detailed statement of their duties and responsibilities.
        Income Tax Return (ITR) for the last two (2) years, as the case may be - original copy to be presented.
        Sworn statement of assets and liabilities and/or duly audited financial statement, as the case may be.
        List of all authorized representatives, if any; who must be at least high school graduate, with their corresponding bio-data, two (2) passport size pictures, high school diploma or other proof of educational attainment duly authenticated, NBI clearance and Special Power of Attorney (SPA).
        Certificate of attendance to orientation on rules and regulations on local recruitment.
        if for renewal, the following additional requirements are required:
            DOLE Certificate of No Pending/Has Pending Case - original copy to be presented.
            Original copy of existing license.
            Proof of Publication of the previous license.
                * The application for renewal shall be filed not later than thirty (30) days before expiration of the same.
                * The PRPA License cannot be renewed if the licensee/proprietor, or any of the partners and board directors have been convicted by the regular courts for violation of the Labor Code, as amended and its Implementing Rules and Regulations, or if it has been previously revoked.
    For Establishment of Branch Office/Renewal of Authority to Operate a Branch Office.
        Certified copy of the current license
        Organizational structure of the branch office, including duly notarized appointments.
        NBI Clearance, bio-data and two (2) passport-size pictures of the branch manager and staff members.
        Certification that the branch office has office space with a minimum floor area of fifty (50) sq.m.
        Certification that the licensee has no pending case from the DOLE Regional Office which issued the license and where the applicant will establish a branch office.
        List of all authorized representatives, if any;  who must be at least high school graduate, with their corresponding bio-data, two (2) passport size pictures, high school diploma or other proof of educational attainment duly authenticated, NBI clearance and Special Power of Attorney (SPA).



Validity Period of License

    Two(2) years, renewable every 2 years



License Fee:

    Schedule of Fees


   

New or Renewal of License
   

Authority to operate a Branch  Office


   

Single Proprietorship
   

Corporation/ Partnership

Filing Fee
   

P1,000.00
   

P3,000.00
   

P1,000.00

License Fee
   

P6,000.00 
   

P6,000.00
   

P3,000.00

Cash Bond
   

P25,000.00
   

P25,000.00
   



Surety Bond
   

P100,000.00
   

P100,000.00
   

Additional P50,000.00

Replacement of Lost License
   

P600.00

Penalty

        P5,000.00 - Non publication of license.
        10,000.00 - Late filing of application.



Where to apply

       DOLE Regional Office



Source: Copyright© 2010 Department of Labor and Employment Regional Office IV -A 3rd & 4th Floors, Andenson Building II, Parian, Calamba City, Laguna 4027, Philippines

My Research Finding about Starting a Placement Agency

I've been researching about starting a placement agency that would cater local clients. The interest sprouted because I also find it hard to find a maid or store attendant for myself. My father who is a police tried to use his connections to find some maids. Fortunately, he has a friend who refers to us some maid, but in exchange, that person asks for compensation which is P1000. I know that would be illegal and that would be considered "illegal recruitment" as she refers to us some sort of labor and she does it without license. So in a way, this helped me find interest in searching for some information about the laws that regulate starting a placement agency. I started searching for subcontracting and requirements of the Labor Code and the Department of Labor and Employment for this kind of business. So far, I've found the following links:


Department Order No. 18-02 (Series of 2002) [Rules Implementing Articles 106 to 109 of the Labor Code, as Amended]

Department Order No. 03 (Series of 2001) [Revoking Department Order No. 10, Series of 1997, and Continuing to Prohibit Labor-Only Contracting]

DOLE Primer on Contracting and Subcontracting Under Articles 106 to 109 of the Labor Code

Department Order No. 10 (Series of 1997) [Amending the Rules Implementing Books III and VI of the Labor Code, as Amended]


Among these, I find the DOLE PRIMER ON CONTRACTING AND SUBCONTRACTING easy to read and understand. It also states the difference between a Subcontractor and a Placement Agency.

There are still questions in my mind about starting a placement agency, and I'll research more about this in the near future.

Rent Control Act of 2009 - Republic Act (RA) No. 9653

Okay, now I've decided to blog again what's on my mind. When I first came to this apartment that I'm renting, I asked the caretaker what would be the terms of payment. He said, "It would be one month advanced, one month deposit. We are implementing the rental law here.

And because I haven't read the Rental Law for a while, I've decided to print out a copy again, and then post it here in my blog.

Up to now, the caretaker still hasn't handed me the copy of the notarized lease contract. What I'm particularly curious about is that provision of the contract which reads, "In case the lessee would terminate the contract prior to one year, he/she shall be obliged to pay for the remaining period".  I want to know if this is allowed or not in the Rent Control Act of 2009. So here's a copy of what I've researched.

Congress of the Philippines

Twelfth Congress

REPUBLIC ACT NO. 9161

December 22, 2001

AN ACT ESTABLISHING REFORMS IN THE REGULATION OF RENTALS OF CERTAIN RESIDENTIAL UNITS, PROVIDING THE MECHANISMS THEREFOR AND FOR OTHER PURPOSES

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

Section 1. Short Tittle. This ACT shall be known and cited as the "Rental Reform Act of 2002"

Sec. 2. Declaration of Policy. The State shall for the common good, undertake a continuing of urban land reform an housing which will make available at affordable cost decent housing and basic services to underprivileged and homeless citizens in urban centers and resettlement areas.

Toward this end, the State shall establish reforms in the regulation of retails of certain residential units.

Section 3. Monthly Rental and Maximum Increase. Beginning 01 January 2002 and for a duration of three (3) years thereafter ending on 31 December 2004, the monthly rentals of all residential units in the National Capital Region and other highly urbanized cities not exceeding Seven thousand five hundred pesos (P7,500.00) and the monthly rentals of all residential units is all other areas not exceeding Four thousand pesos (P4,000.00) shall not be increased annually by the lessor, without prejudice to existing contracts, by more than ten (10%).

Sec. 4. Definition of Terms. The following terms as used in this Act shall be understood as:

(a) "Rental" shall mean the amount paid for the use or occupancy of a residential unit whether payment is made on a monthly or other basic.

(b) "Residential unit" shall refer to an apartment, house and/or land on which another's dwelling is located and used for residential purpose and shall include not only buildings parts or units thereof used solely as dwelling places, boarding houses, dormitories, rooms and bedspaces offered for rent by their owners, except motels, motel rooms, hotels, hotels rooms, but also those used for home industries, retail stores or other business purposes if the owner thereof and his or her family actually live therein and use it principally for dwelling purposes.

(c) "Immediate members of family of the lessee or lessor" for purposes of repossessing the leased promises, shall be limited to his or her spouse, direct descendants or ascendants, by consanguinity or affinity.

(d) "Lessee" shall mean the person renting a residential unit.

(e) "Owner/Lessor" shall include the owner or administrator or agent of the owner of the residential unit.

(f) "Sublessor" shall mean the person who leases or rents out a residential unit leased to him by an owner.

(g) "Sublessee" shall mean the person who leased or rents out a residential unit from a sublessor.

(h) "Assignment of lease" shall mean the act contemplated in Article 1649 of the Civil Code of the Philippines.

Sec. 5. Rental and Deposit. Rental shall be paid in advance within the first five (5) days of every current month or the beginning of the lease agreement unless the contract of lease provides for a later date of payment. The lessor cannot demand more than one (1) month advance rental and two (2) month's deposit.

Sec. 6. Assignment of Lease of Subleasing. Assignment of lease of subleasing of the whole or any portion of the residential unit, including the acceptance of boarders or bedspacers, without the written consent of the owner/lessor is prohibited.

Sec. 7. Grounds for Judicial Ejectment. Ejectment shall be allowed on be the following grounds;

(a) Assignment of lease or subleasing of residential units in whole or part, including the acceptance of boarders or bedspacers, without the written consent of the owner/lessor.

(b) Arrears in payment of rent for a total of three (3) months Provided. That in the case of refusal by the lessor to accept payment of the rental agreed upon, the leased may either deposit by way of consignation, the amount in court, or with the city or municipal treasurer, as the case may be, or in a bank in the name of and with notice to the lessor, within one (1) month after the refusal of the lessor to accept payment.

The lessee shall thereafter deposit the rental within ten (10) days of every current month. Failure to deposit the rental for three (3) month shall constitute a ground for ejectment. If an ejectment case is already pending, the court upon proper motion may order the lessee or any person or persons claiming under him to immediately vacate the leased premises without prejudice to the continuation of the ejectment proceedings. At any time, the lessor may, upon the authority of the court, withdraw the rentals deposited.

The lessor, upon authority of the court in case of consignation or upon joint affidavit by him and the lessee to be submitted to the city or municipal treasure and to the bank where deposit was made, shall be allowed to withdraw the deposits;

(c) Legitimate need of the owner/lessor to repossess his or her property for his or her own use or for the use of any immediate member of his or her family as a residential unit: Provided, however. That the lease for a definite period has expired: Provided, further, That the lessor has given the lessee formal notice three (3) months in advance of the lessor's intention to repossess the property and: Provided finally; That the owner/lessor is prohibited from leasing the residential unit or allowing its use by a third party for a period of at least one year from the time of repossession;

(d) Need of the lessor to make necessary repairs of the leased premises which is the subject of an existing order of condemnation by appropriate authorities concerned in order to make the said premises safe and habitable: Provided. That after said repair, the lessee ejected shall have the first preference to lease the same promises: Provided, however. That the new rental shall be reasonably commensurate with the expenses incurred for the repair of the said residential unit and: Provided, finally; That if the residential unit is condemned or completely demolished, the lease of the new building will no longer be subject to the aforementioned first-preference rule in this subsection; and

(e) Expiration of the period of the lease contract.

Sec. 8. Prohibition Against Ejectment by Reason of Sale or Mortgage. No lessor or his successor-in-interest shall be entitled to eject the lessee upon the ground that the leased premises have been sold or mortgaged to a third person regardless of whether the lease or mortgage is registered or not.

Section 9. Ret-to-Own Scheme. At the option of the lessor, he or she may engage the lessee in a written rent-to-own agreement that will result in the transfer or ownership of the particular dwelling in favor of the latter. Such an agreement shall be except from the coverage of Sec. 3 of this Act.

Sec. 10. Application of the Civil Code and Rules of Court of the Philippines. Except when the lease is for a definite period, the provisions of paragraph (1) of Article 1673 of the Civil Code of the Philippines, insofar as they refers to residential units covered by this Act, shall be suspended during the effectivity of this Act, but other provisions of the Civil Code and the Rules of Court on lease contracts, insofar as they are not in conflict with the provisions of this Act shall apply.

Sec. 11. Coverage of this Act. - All residential units in the National Capital Region and other highly urbanized cities the total monthly rental for each of which does not exceed Seven thousand five hundred pesos (P7,500.00) and all residential units in all other areas the total monthly rental for each of which does not exceed Four thousand pesos (P4,000.00) as of the effectivity date of this Act shall be covered, without prejudice to existing contracts.

Sec. 12. Penalties. - a fine of not less than Five thousand pesos (P5,000) nor more than Fifteen thousand pesos (15,000.00) or imprisonment of not less than one (1) month and (1) day to not more than six (6) month or both shall be imposed on any person,natural or juridical, found guilty of violating any provision of this Act.

Sec. 13. Information Drive. - The Department of the Interior and Local Government and the Housing and Urban Development Coordinating Council, in coordination with other concern agencies, are hereby mandated to conduct a continuing information drive about the provisions of this Act.

Sec. 14. Transition Program. - The Housing and Urban Development Coordinating Council is hereby mandated to formulate, within six (6) months from effectivity hereof, a transition program which will provide for safety measures to cushion the impact of a free rental market.

Sec. 15. Separability Clause. - If any provision or part hereof is held invalid or unconstitutional, the remainder of the law or the provision not otherwise affected shall remain valid and subsisting.

Sec. 16. Repealing Clause. - Any law, presidential decree or issuance, executive order, letter of instruction, administrative order, rule or regulation contrary to or inconsistent with, the provisions of this Act is hereby repealed, modified or amended according.

Sec. 17. Effectivity Clause. - This Act shall take effect on 01 January 2002 following its publication in at least two (2) newspapers of general circulation.

Approved:

(Sgd)

FRANKLIN M. DRILON

President of the Senate

(Sgd)

JOSE DE VENECIA, JR.

Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 1949 and Senate Bill No. 214 was finally passed by the House of Representatives and the Senate on 20th December 2001

(Sgd)

OSCAR G. YARES

Secretary of the Senate

(Sgd)

ROBERTO P. NAZARENOSecretary General

House of Representatives

Approved: December 22, 2001

(Sgd)

GLORIA MACAPAGAL-ARROYO

President of the Philippines