FACTS:

The Philippine Association of Service Exporters (PASEI) filed a petition for prohibition with temporary restraining order against the Secretary of the Department of Labor and Employment (DOLE) and the Administrator of the Philippine Overseas Employment Administration (POEA) seeking to prohibit the enforcement of DOLE Department Order No. 16, Series of 1991 and POEA Memorandum Circulars Nos. 30 and 37, Series of 1991. These orders temporarily suspended the recruitment by private employment agencies of Filipino domestic helpers for Hong Kong and entrusted the DOLE and POEA with the task of processing and deploying such workers. PASEI is the largest national organization of private employment and recruitment agencies duly licensed and authorized by the POEA to engage in the business of obtaining overseas employment for Filipino land-based workers, including domestic helpers.

On June 1, 1991, DOLE Secretary Ruben D. Torres issued Department Order No. 16, temporarily suspending the recruitment by private employment agencies of Filipino domestic helpers going to Hong Kong due to reported abuses suffered by Filipino housemaids employed in Hong Kong. The DOLE, through the POEA, then took over the processing and deployment of household workers bound for Hong Kong.

Pursuant to the DOLE circular, the POEA issued Memorandum Circular No. 30 providing guidelines for the government processing and deployment of Filipino domestic helpers to Hong Kong and the accreditation of Hong Kong recruitment agencies. The circular established a Joint POEA-OWWA Household Workers Placement Unit (HWPU) to oversee the operations of the Hong Kong-DH industry segment. It also outlined the documentary requirements and conditions for the accreditation of Hong Kong recruitment agencies.

On August 1, 1991, the POEA Administrator issued Memorandum Circular No. 37 stating that employment contracts attested by the Hong Kong Commissioner of Labor until June 30, 1991, would be processed by the POEA until August 15, 1991. Starting from August 16, 1991, Hong Kong recruitment agencies would need to be accredited with the POEA before recruiting domestic helpers from the Philippines.

PASEI filed the petition on September 2, 1991, seeking to annul the DOLE and POEA circulars, claiming that these circulars were issued with grave abuse of discretion, contrary to the Constitution, and failed to comply with publication and filing requirements.

ISSUES:

1. Whether the respondents acted with grave abuse of discretion and/or in excess of their rule-making authority in issuing the DOLE and POEA circulars.

2. Whether the DOLE and POEA circulars are contrary to the Constitution, unreasonable, unfair, and oppressive.

3. Whether the requirements of publication and filing with the Office of the National Administrative Register were complied with.

RULING:

1. The Court held that there is no merit in the first and second grounds of the petition. The Labor Code grants the Labor Secretary the power to restrict and regulate recruitment and placement activities. Therefore, the respondents did not act with grave abuse of discretion or in excess of their authority in issuing the circulars. Additionally, the Court found no evidence to support the claim that the circulars are contrary to the Constitution or are unreasonable, unfair, and oppressive.

PRINCIPLES:

• The Labor Secretary has the power to restrict and regulate recruitment and placement activities.

• The Court will not invalidate a government circular unless it is shown that there is grave abuse of discretion or violation of the Constitution.

• There is a presumption of regularity in the performance of official duties, and the burden of proof is on the petitioner to show otherwise.