Pursuant to Section 4 of Memorandum Circular No. 3 dated 3 August 1987 the following guidelines for availing of the policy on the relaxation of the conditions for undertaking worksite supervision and payrolling under the authority of private recruitment entities are hereby promulgated:

1. The policy under Memorandum Circular No. 3, s. 1987 shall apply only to private recruitment entities who are holders of valid authorities as such on the date of signing of the said Circular.

2. This policy may be availed of the covered private recruitment entities for a period of one (1) year from the date of effectivity of these guidelines.

3. The following procedures for availing of the policy of relaxation shall be observed:

1. The covered private recruitment entity, who may be interested in availing of the policy of relaxation under MC No. 3, shall file an application therefor with the Licensing Division together with the proof of capitalization of least P750,000.00 and proof of posting of additional cash bond of P50,000.00.
   
   
2. Upon receipt of the application and its supporting documents, the Licensing Division shall examine them to determine if they are in order.  Thereafter, the Division shall recommend to the Administration the approval or denial of the application.
   
   
3. Upon approval of the application, the Licensing Division shall issue a certification attesting to the fact that the subject private recruitment entity has complied with the requirements for availing of the policy under MC No. 3, and that for a period of one (1) year from the date of effectivity of these guidelines, the subject entity shall be exempt from compliance with the conditions for worksite supervision and payrolling, provided that, it subject itself to performance evaluation six (6) months from the accreditation of every project approved under MC No. 3 and these guidelines, or at anytime as the Administration may require.  The Licensing Division shall advise the Accreditation Department and the Contracts Processing Department of the approval of the application.

4. Unless a contrary policy is issued, private recruitment entities whose agreements were accredited by virtue of MC No. 3 and these guidelines shall benefit from the relaxation of the worksite supervision and payrolling requirements only during the one (1) year period prescribed under Section 2 hereof.  After the lapse of such period, the worksite supervision and payrolling requirements shall be reimposed.

5. Private recruitment entities, who, prior to the issuance of these guidelines, had been permitted to service projects under the policy enunciated in MC No. 3 shall comply with these guidelines to be able to continue servicing said projects and shall be subject to the same period under Section 2 of these guidelines.

6. Private recruitment entities whose applications for availing of the policy of relaxation had been approved shall observe all the conditions set forth under Section 2 of MC No. 3.  Any violation of the said conditions shall result in the cancellation of the privilege to avail of MC No. 3 without prejudice to the imposition of appropriate sanctions under existing rules.

7. These guidelines shall take effect on the date of its signing.

Adopted: 3 Sept. 1987


Re-issued: 18 Feb. 1992