Practice question
A foreign hotel group offers all job orders to a Philippine recruitment agency in exchange for a minority ownership stake and a right to direct its placement operations. The local agency says it remains majority Filipino-owned and therefore satisfies every eligibility rule. Which analysis is best?
- Filipino majority ownership automatically removes all other disqualifications.
- The hotel group may control recruitment if applicants consent.
- Only a majority foreign investment could be prohibited.
- The arrangement is valid whenever jobs are genuine.
- Compliance with a Filipino-capital threshold does not erase the separate prohibition on foreign-principal ownership or operational participation.
Legal references
- 2023 DMW landbased Rules, Department Circular 01 s.2023, specified section: https://dmw.gov.ph/archives/v1/resources/dsms/DMW/ISN-EXT/2023/DMW-DC-01-2023.pdf — Part II Rule I Section 3; Labor Code Articles 18,26,29,34–35, official DOLE text: https://dole.gov.ph/book-1-pre-employment/ — Article 26.
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