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

P.D 2018
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

Art. 38. Illegal Recruitment.

(b) Illegal recruitment when committed by a syndicate or

in large scaleshall 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 isdeemed committed in large scale if
committed against three (3) or more persons individually
or as a group.

Art. 38. Illegal Recruitment.

(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 jobseekers. 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;

Art. 39. Penalties.

(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;

Art. 39. Penalties.

(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;

Art. 34. Prohibited practices. It shall be

unlawful for any individual, entity, licensee,
or holder of authority:

(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;

Art. 34. Prohibited practices. It shall be

unlawful for any individual, entity, licensee,
or holder of authority:

(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

Art. 34. Prohibited practices. It shall be

unlawful for any individual, entity, licensee,
or holder of authority:

(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;

Art. 34. Prohibited practices. It shall be

unlawful for any individual, entity, licensee,
or holder of authority:
(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) To allow a non-Filipino citizen to head or manage a
licensed recruitment/manning agency.

Illegal Recruitment (Migrant

Workers Act)
Illegal recruitment shall mean any act of
canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers and includes
referring, contract services, promising or
advertising for employment abroad, whether for
profit or not, when undertaken by non-licensee or
non-holder of authority contemplated under
Article 13(f) of Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of
the Philippines: Provided, That any such nonlicensee or non-holder who, in any manner, offers
or promises for a fee employment abroad to two
or more persons shall be deemed so engaged.

Illegal Recruiters Act (Migrant Workers Act)

Additional Prohibited Act
(1) Grant a loan to an overseas Filipino worker with
interest exceeding eight percent (8%) per annum,
which will be used for payment of legal and
allowable placement fees and make the migrant
worker issue, either personally or through a
guarantor or accommodation party, postdated
checks in relation to the said loan;
(2) Impose a compulsory and exclusive
arrangement whereby an overseas Filipino worker is
required to avail of a loan only from specifically
designated institutions, entities or persons;
(3) Refuse to condone or renegotiate a loan incurred
by an overseas Filipino worker after the latter's
employment contract has been prematurely

Illegal Recruiters Act (Migrant Workers Act)

Additional Prohibited Act
(4) Impose a compulsory and exclusive
arrangement whereby an overseas Filipino worker is
required to undergo health examinations only from
specifically designated medical clinics, institutions,
entities or persons, except in the case of a seafarer
whose medical examination cost is shouldered by
the principal/shipowner;
(5) Impose a compulsory and exclusive
arrangement whereby an overseas Filipino worker is
required to undergo training, seminar, instruction or
schooling of any kind only from specifically
designated institutions, entities or persons, except
for recommendatory trainings mandated by
principals/shipowners where the latter shoulder the

Illegal Recruiters Act (Migrant Workers Act)

Additional Prohibited Act
(6) For a suspended recruitment/manning agency to
engage in any kind of recruitment activity including
the processing of pending workers' applications;
and
(7) For a recruitment/manning agency or a foreign
principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment
of the cost of insurance fees, premium or other
insurance related charges, as provided under the
compulsory worker's insurance coverage.

Elements of Illegal
Recruitment
The crime of illegal recruitment is committed whentwo
elements concur, namely:
(1)the offender has no valid license or authority required
by law to enable one to lawfully engage in recruitment
and placement of workers; and
(2) 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 by A

Syndicate

The crime of illegal recruitment is

committed by a syndicate if illegal
recruitment is carried out by a group of
three (3) or more persons conspiring or
confederating with one another.

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

Additional Prohibited Acts

(Migrant Workers Act)
(1) Grant a loan to an overseas Filipino worker with
interest exceeding eight percent (8%) per annum,
which will be used for payment of legal and
allowable placement fees and make the migrant
worker issue, either personally or through a
guarantor or accommodation party, postdated
checks in relation to the said loan;
(2) Impose a compulsory and exclusive
arrangement whereby an overseas Filipino worker is
required to avail of a loan only from specifically
designated institutions, entities or persons;
(3) Refuse to condone or renegotiate a loan incurred
by an overseas Filipino worker after the latter's
employment contract has been prematurely

Additional Prohibited Acts

(Migrant Workers Act)
(4) Impose a compulsory and exclusive
arrangement whereby an overseas Filipino worker is
required to undergo health examinations only from
specifically designated medical clinics, institutions,
entities or persons, except in the case of a seafarer
whose medical examination cost is shouldered by
the principal/shipowner;
(5) Impose a compulsory and exclusive
arrangement whereby an overseas Filipino worker is
required to undergo training, seminar, instruction or
schooling of any kind only from specifically
designated institutions, entities or persons, except
for recommendatory trainings mandated by
principals/shipowners where the latter shoulder the

Additional Prohibited Acts

(Migrant Workers Act)
(6) For a suspended recruitment/manning agency to
engage in any kind of recruitment activity including
the processing of pending workers' applications;
and
(7) For a recruitment/manning agency or a foreign
principal/employer to pass on the overseas Filipino
worker or deduct from his or her salary the payment
of the cost of insurance fees, premium or other
insurance related charges, as provided under the
compulsory worker's insurance coverage.

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-

Penalties (Section 5, R.A. 10022)

(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;

ANTI-ILLEGAL RECRUITMENT
PROGRAMS (Rule VI, R.A 10022)
(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.

BAR Q & A
(2004) 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.

BAR Q & A
(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

BAR Q & A
(2010) Question & Answer:
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.

Cases
Rosita Sy vs. People of the Philippines (G. R.
No.: 183879)
Issue: Whether one can be charged with the cases of
illegal recruitment and estafa simultaneously?

Held: Yes, illegal recruitment and estafa cases may

be filed simultaneously or separately. The filing of
charges for illegal recruitment does not bar the
filing of estafa and vice versa. Illegal recruitment
and estafa are entirely different offenses and
neither one necessarily includes or is necessarily
included in the other. Double jeopardy will not set in
because illegal recruitment is malum prohibitum, in
which there is no necessity to prove criminal intent,
whereas estafa is mala in se, in prosecution of
which, proof of criminal intent in necessary.
Therefore, Sys acquittal in the illegal recruitment

Cases
People of the Philippines vs. Lauro Domingo
(G. R. No.: 181475)
Issue: WON Domingo is engaged in recruitment
activities when he issued no receipt or document in
which he acknowledged as having received any money
for the promised jobs?

Held: Yes, To prove illegal recruitment in large

scale, it is enough that the prosecution must prove
three essential elements, to wit: (1) the person
charged undertook a recruitment activity under
Article 13(b) or any prohibited practice under Article
34 of the Labor Code; (2) he/she did not have the
license or the authority to lawfully engage in the
recruitment and placement of workers; and (3)
he/she committed the prohibited practice against

Cases
People of the Philippines vs. Discora Arabia
and Francsica Tomas (G. R. No.: 138431-36)
Issue: WON the accused-appellants committed the
crime of illegal recruitment (large scale) even if they
claim to be they were actually victims of illegal
recruitment?

Held: Yes. All the elements of Large-scale illegal

recruitment has been proven in this case against
the accused appellants. On the other hand, Arabia
and Tomas failed to present proof that they indeed
filed a case against Rebecca de Jesus for illegal
recruitment. Neither did they present proof that
complainants also filed a case against said Rebecca
de Jesus. Accused Arabia presented supposed
complainant-affidavits against Rebecca de Jesus,
however, it was not shown that herein complainants

Cases
People of the Philippines vs. Samina
Angeles(G. R. No.: 132376)
Issue: Issue: Is Samina Angeles guilty of illegal
recruitment when she never represented to the
complainants that she could provide them with work
abroad and none of the complainants testified on what
kinds of jobs were promised, names of their prospective
employer, how much they would earn and the length of
their employment?

Held: No. To prove illegal recruitment, it must be

shown that the accused-appellant gave
complainants the distinct impression that he had
the power or ability to send complainants abroad for
work such that the latter were convinced to part
with their money in order to be employed. To be
engaged in the practice of recruitment and

Cases
People of the Philippines vs. Nimfa Remullo
(GR No: 124443-46)
Issue: Is Remullo guilty of the crime of illegal
recruitment in large scale and estafa when he is acting
as an employee an agency who defrauded the
complainants?

Held: Yes. This is for the reason that the private

complainants were enticed by Remullo to apply for
employment abroad even if she clearly knows that
she acted without a license or lawful authority to do
so. Her employer clearly states as a marketing
consultant, it is not within her scope of work to
recruit prospective employees abroad.