Illegal Recruitment

Presidential Decree 2018

Took effect on the 26th day of January, 1986.

PRESIDENTIAL DECREE NO. 2018 - FURTHER AMENDING ARTICLES 38 AND 39 OF THE LABOR
CODE BY MAKING ILLEGAL RECRUITMENT A CRIME OF ECONOMIC SABOTAGE AND
PUNISHABLE WITH LIFE IMPRISONMENT
WHEREAS, despite existing provisions of law and the continuing efforts to eliminate them,
illegal recruiters, have continued to proliferate and victimize unwary workers;
WHEREAS, illegal recruiters have defrauded and caused untold sufferings to thousands of
Filipino workers and their families;
WHEREAS, experience shows that because of light penalties, illegal recruiters have become
more callous and bolder in their modus operandi and usually carry out their activities as
syndicates or in large scale
Definition of Terms
"Recruitment and placement"
refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or
procuring workers, and includes referrals, contract services, promising or advertising for
employment, locally or abroad, whether for profit or not: Provided, That any person or entity
which, in any manner, offers or promises for a fee, employment to two or more persons shall
be deemed engaged in recruitment and placement.
--Section 2, Article 13, Labor Code
"License"
means a document issued by the Department of Labor authorizing a person or entity to
operate a private employment agency.
-- Section 4, Article 13, Labor Code
"Authority"
means a document issued by the Department of Labor authorizing a person or association to
engage in recruitment and placement activities as a private recruitment entity
--Section 6, Article 13, Labor Code
Section 1. Articles 38 and 39 of Presidential Decree No. 442, as amended, otherwise known
as the Labor Code of the Philippines, is hereby further amended to read as follows:
Art. 38. Illegal Recruitment.
(a) Any recruitment activities, including the prohibited practices enumerated under Article
34 of this Code, to be undertaken by non-licensees or non-holders of authority shall be
deemed illegal and punishable under Article 39 of this Code. The Ministry of Labor and
Employment or any law enforcement officers may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered
an offense involving economic sabotage and shall be penalized in accordance with
Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of
three (3) or more persons conspiring and/or confederating with one another in carrying
out any unlawful or illegal transaction, enterprise or scheme defined under this first

paragraph hereof. Illegal recruitment is deemed committed in large scale if committed

against three (3) or more persons individually or as a group.
(c) The Minister of Labor and Employment or his duly authorized representatives shall have
the power to cause the arrest and detention of such non-license or non-holder of
authority if after investigation it is determined that his activities constitute a danger to
national security and public order or will lead to further exploitation of job-seekers. The
Minister shall order the search of the office or premises and seizure of documents
paraphernalia, properties and other implements used in illegal recruitment activities
and the closure of companies, establishment and entities found to be engaged in the
recruitment of workers for overseas employment, without having been licensed or
authorized to do so.
Art. 39. Penalties.
(a) The penalty of imprisonment and a fine of One Hundred Thousand Pesos (P100,000) shall
be imposed if illegal recruitment constitutes economic sabotage as defined herein;
(b) Any licensee or holder of authority found violating or causing another to violate any
provision of this Title or its implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than two years nor more than five
years or a fine of not less than P10,000 nor more than P50,000 or both such imprisonment
and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title found
violating any provision thereof or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not less than four years nor more
than eight years or a fine of not less than P20,000 nor more than P100,000 or both such
imprisonment and fine, at the discretion of the Court;
(d) If the offender is a corporation, partnership, association or entity, the penalty shall be
imposed upon the officer or officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall, in addition to the penalties
herein prescribed be deported without further proceedings;
(e) In every case, conviction shall cause and carry the automatic revocation of the license or
authority and all the permits and privileges granted to such person or entity under this
Title, and the forfeiture of the cash and surety bonds in favor of the Overseas Employment
Development Board or the National Seamen Board, as the case may be, both of which are
authorized to use the same exclusively to promote their objectives.
Art. 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or
holder of authority:
(a) To charge or accept directly or indirectly any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor and Employment, or to
make a worker pay or acknowledge any amount greater than that actually received by
him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to
recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor
Code, or for the purpose of documenting hired workers with the POEA, which include
the act of reprocessing workers through a job order that pertains to non-existent work,
work different from the actual overseas work, or work with a different employer
whether registered or not with the POEA;
(d) To induce or attempt to induce a worker already employed to quit his employment in
order to offer him another unless the transfer is designed to liberate a worker from
oppressive terms and conditions of employment;

(e) To influence or attempt to influence any person or entity not to employ any worker who
has not applied for employment through his agency or who has formed, joined or
supported, or has contacted or is supported by any union or workers organization;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and
Employment or by his duly authorized representative;
(h) To fail to submit reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures and such
other matters or information as may be required by the Secretary of Labor and
Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved
and verified by the Department of Labor and Employment from the time of actual
signing thereof by the parties up to and including the period of the expiration of the
same without the approval of the Department of
Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or
member of the Board of any corporation engaged in travel agency or to be engaged
directly or indirectly in the management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for
monetary or financial considerations, or for any other reasons, other than those
authorized under the Labor Code and its implementing Rules and Regulations;
(l) Failure to actually deploy a contracted worker without valid reason as determined by
the Department of Labor and Employment;
(m)
Failure to reimburse expenses incurred by the worker in connection with his
documentation and processing for purposes of deployment, in cases where the
deployment does not actually take place without the worker's fault; and
(n) (n) To allow a non-Filipino citizen to head or manage a licensed recruitment/manning
agency.

Elements of Illegal Recruitment

The crime of illegal recruitment is committed when two elements concur, namely:

the offender has no valid license or authority required by law to enable one to lawfully
engage in recruitment and placement of workers; and
the undertakes either any activity within the meaning of "recruitment and placement"
defined under Article 13 (b), or any prohibited practices enumerated under Article 34 of
the Labor Code.

--Romero vs People

Elements of Illegal Recruitment in Large Scale

Thus for illegal recruitment in large scale to prosper, the prosecution has to prove three
essential elements, to wit:
1. the accused undertook a recruitment activity under Article 13(b) or any prohibited
practice under Article 34 of the Labor Code;
2. the accused did not have the license or the authority to lawfully engage in the
recruitment and placement of workers; and

3. the accused committed such illegal activity against three or more persons individually
or as a group
--People vs Melissa Chua
Persons Responsible in Illegal Recruitment (R.A. 10022)
Section 4. Persons Responsible.
The persons criminally liable for the above offenses are the principals, accomplices and
accessories. In case of juridical persons, the officers having ownership, control, management
or direction of their business and the responsible for the commission of the offense and the
responsible employees/agents thereof shall be liable.
Penalties (Section 5, R.A. 10022)
(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment
of not less than twelve (12) years and one (1) day but not more than twenty (20) years
and a fine of not less than One million pesos (P1,000,000.00) nor more than Two Million
Pesos (P2,000,000.00).
(b) The penalty of life imprisonment and a fine of not less than Two Million Pesos
(P2,000,000.00) nor more than Five Million Pesos (P5,000,000.00) shall be imposed if
illegal recruitment constitutes economic sabotage as defined therein.
Provided, however, That the maximum penalty shall be imposed if the person illegally
recruited is less than eighteen (18) years of age or committed by a non-licensee or nonholder of authority.
(c) Any person found guilty of any of the prohibited acts shall suffer the penalty of
imprisonment of not less than six (6) years and one (1) day but not more than twelve
(12) years and a fine of not less than Five Hundred Thousand Pesos (P500,000.00) nor
more than One million pesos (P1,000,000.00).
Venue (Section 6, R.A. 10022)
A criminal action arising from illegal recruitment as defined under this Rule shall be filed with
the Regional Trial Court of the province or city where the offense was committed or where the
offended party actually resides at the time of the commission of the offense; Provided, that
the court where the criminal action is first filed shall acquire jurisdiction to the exclusion of
other courts.
Prescription (Section 7, R.A. 10022)
Illegal recruitment cases under this Rule shall prescribe in five (5) years; Provided, however,
that illegal recruitment cases involving economic sabotage shall prescribed in twenty (20)
years.
ANTI-ILLEGAL RECRUITMENT PROGRAMS (Rule VI, R.A 10022)
Section 1. POEA Anti-Illegal Recruitment Programs. The POEA adopts policies and procedures,
prepares and implements intensified programs and strategies towards the eradication of
illegal recruitment activities such as, but not limited to the following:
(a) Providing legal assistance to victims of illegal recruitment and related cases which are
administrative or criminal in nature, such as but not limited to documentation and counseling.
(b) Prosecution of illegal recruiters, during preliminary investigation and during trial in
collaboration with the DOJ prosecutors;

(c) Special operations such as surveillance and closure of establishment or entities suspected
to be engaged in illegal recruitment; and
(d) Information and education campaign.
Whenever necessary, the POEA shall coordinate with other appropriate entities in the
implementation of said programs.

BAR Q & A
(2004) Question:
RR represented to AA, BB, CC and DD that she could send them to London to work there as
sales ladies and waitresses. She collected and received from them various amounts of money
for recruitment and placement fees totaling P400,000. After their dates of departure were
postponed several times, the four prospects got suspicious and went to POEA (Phil. Overseas
Employment Authority). There they found out that RR was not authorized nor licensed to
recruit workers for employment abroad. They sought refund to no avail. Is RR guilty of any
grave offense? Explain briefly.
Suggested Answer:
Yes. RR is guilty of a grave offense, having engaged in illegal recruitment constituting the
offense of economic sabotage which is punishable with life imprisonment and a fine of P100,
000.00. ECONOMIC SABOTAGE is an offense defined in 38(b) of the Labor Code, as amended
by Pres. Decree No. 2018, which is incurred when the illegal recruitment is carried out in large
scale or by a syndicate. It is in a large scale when there are three or more aggrieved parties,
individually or as a group. And it is committed by a syndicate when three or more persons
conspire or cooperate with one another in carrying out the illegal transaction, scheme or
activity.

(2010) Question:
A was approached for possible overseas deployment to Dubai by X, an interviewer of job
applicants for Alpha Personnel Services, Inc., an overseas recruitment agency. X required A to
submit certain documents (passport, NBI clearance, medical certificate) and to pay P25,000
as processing fee. Upon payment of the said amount to the agency cashier, A was advised to
wait for his visa. After five months, A visited the office of Alpha Personnel Services, Inc. during
which X told him that he could no longer be deployed for employment abroad. A was informed
by the Philippine Overseas Employment Administration (POEA) that while Alpha Personnel
Services, Inc. was a licensed agency, X was not registered as its employee, contrary to POEA
Rules and Regulations. Under POEA Rules and Regulations, the obligation to register personnel
with the POEA belongs to the officers of a recruitment agency.
a. May X be held criminally liable for illegal recruitment? Explain. (2%)
NO. X performed his work with the knowledge that he works for a licensed recruitment
agency. He is in no position to know that the officers of said recruitment agency failed
to register him as its personnel (People v. Chowdury, 325 SCRA 572 [20Q0] J. The fault
not being attributable to him, he may be considered to have apparent authority to
represent Alpha on recruitment for overseas employment.

b. May the officers having control, management or direction of Alpha Personnel Services, Inc.
be held criminally liable for illegal recruitment? Explain.
Yes, Alpha, being a licensed recruitment agency, still has obligation to A for processing
his papers for overseas employment. Under Section 6(m) of Rep. Act. No. 8042, failure
to reimburse expenses incurred by the worker in connection with his documentation
and processing for purposes of deployment, in cases where the deployment does not
actually take place without the workers fault, amounts to illegal recruitment.
MALACAANG
Manila
PRESIDENTIAL DECREE No. 2018
FURTHER AMENDING ARTICLES 38 AND 39 OF THE LABOR CODE BY MAKING ILLEGAL
RECRUITMENT A CRIME OF ECONOMIC SABOTAGE AND PUNISHABLE WITH LIFE IMPRISONMENT
WHEREAS, despite existing provisions of law and the continuing efforts to eliminate them, illegal recruiters,
have continued to proliferate and victimize unwary workers;
WHEREAS, illegal recruiters have defrauded and caused untold sufferings to thousands of Filipino workers and
their families;
lawphil.net

WHEREAS, experience shows that because of light penalties, illegal recruiters have become more callous and
bolder in their modus operandi and usually carry out their activities as syndicates or in large scale;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order:
Section 1. Articles 38 and 39 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code
of the Philippines, is hereby further amended to read as follows:
"Art. 38. Illegal Recruitment. - (a) Any recruitment activities, including the prohibited practices enumerated under
Article 34 of this Code, to be undertaken by non-licensees or non-holders of authority shall be deemed illegal
and punishable under Article 39 of this Code. The Ministry of Labor and Employment or any law enforcement
officers may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense
involving economic sabotage and shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more
persons conspiring and/or confederating with one another in carrying out any unlawful or illegal
transaction, enterprise or scheme defined under this first paragraph hereof. Illegal recruitment is deemed
committed in large scale if committed against three (3) or more persons individually or as a group.
(c) The Minister of Labor and Employment or his duly authorized representatives shall have the power to
cause the arrest and detention of such non-license or non-holder of authority if after investigation it is
determined that his activities constitute a danger to national security and public order or will lead to
further exploitation of job-seekers. The Minister shall order the search of the office or premises and
seizure of documents paraphernalia, properties and other implements used in illegal recruitment
activities and the closure of companies, establishment and entities found to be engaged in the
recruitment of workers for overseas employment, without having been licensed or authorized to do so.
"Art. 39. Penalties. - (a) The penalty of imprisonment and a fine of One Hundred Thousand Pesos (P100,000)
shall be imposed if illegal recruitment constitutes economic sabotage as defined herein;

(b) Any licensee or holder of authority found violating or causing another to violate any provision of this
Title or its implementing rules and regulations shall, upon conviction thereof, suffer the penalty of
imprisonment of not less than two years nor more than five years or a fine of not less than P10,000 nor
more than P50,000 or both such imprisonment and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title found violating any
provision thereof or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than four years nor more than eight years or a fine of not less than
P20,000 nor more than P100,000 or both such imprisonment and fine, at the discretion of the Court;
(d) If the offender is a corporation, partnership, association or entity, the penalty shall be imposed upon
the officer or officers of the corporation, partnership, association or entity responsible for violation; and if
such officer is an alien, he shall, in addition to the penalties herein prescribed be deported without further
proceedings;
lawphi1.net

(e) In every case, conviction shall cause and carry the automatic revocation of the license or authority
and all the permits and privileges granted to such person or entity under this Title, and the forfeiture of
the cash and surety bonds in favor of the Overseas Employment Development Board or the National
Seamen Board, as the case may be, both of which are authorized to use the same exclusively to
promote their objectives.
Section 2. This Decree shall take effect immediately.
Done in the City of Manila, this 26th day of January, 1986.