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REVISED POEA RULES AND REGULATIONS GOVERNING THE RECRUITMENT
AND EMPLOYMENT OF LANDBASED OVERSEAS FILIPINO WORKERS OF 2016
Question and Answer
I. Licensing and Regulation
Question: What is the required capitalization for a private entity to qualify for a
grant of a POEA license? How does it affect existing licensees?
Answer: The sole proprietor and partnership shall have a minimum capitalization of Five Million
Pesos (PhP5,000,000.00) and a minimum paid up capital of Five Million Pesos
(PhP5,000,000.00) in case of a corporation.
Those with existing licenses shall, within four (4) years from effectivity hereof, increase
their capitalization or paid up capital, as the case may be, to Five Million Pesos
(PhP5,000,000.00) at the rate of Seven Hundred Fifty Thousand Pesos (PhP750,000.00)
every year. (Section 2, Rule I, Part II)
Question: Who are disqualified to participate and engage in the recruitment and placement of
workers for overseas employment?
Answer: a. Travel agencies and sales agencies of airline companies;
b. Officers or members of the Board of any corporation or partners in a partnership
engaged in the business of a travel agency;
c. Corporations and partnerships, where any of its officers, members of the board or
partners is also an officer, member of the board or partner of a corporation or
partnership engaged in the business of a travel agency;
d. Individuals, partners, officers or directors of an insurance company who make,
propose or provide an insurance contract under the compulsory insurance coverage
for agency-hired Overseas Filipino Workers;
e. Sole proprietors, partners or officers and members of the board with derogatory
records, such as, but not limited to the following:
1. Those convicted, or against whom probable cause or prima facie finding
of guilt is determined by a competent authority, for illegal recruitment, or for other
related crimes or offenses committed in the course of, related to, or resulting
from, illegal recruitment, or for crimes involving moral turpitude;
2. Those agencies whose licenses have been revoked for violation of RA
8042 (Migrant Workers and Overseas Filipinos Act of 1995), as amended, PD
442 (Labor Code of the Philippines), as amended, and RA 9208 (Trafficking in
Persons Act of 2003), as amended, and their implementing rules and regulations;
3. Those agencies whose licenses have been cancelled, or those who,
pursuant to the Order of the Administrator, were included in the list of persons
with derogatory record for violation of recruitment laws and regulations; and
f. Any official or employee of the DOLE, POEA, OWWA, DFA, DOJ, DOH, BI, IC,
NLRC, TESDA, CFO, NBI, PNP, Civil Aviation Authority of the Philippines