Title
Illegal Recruitment as Economic Sabotage
Law
Presidential Decree No. 2018
Decision Date
Jan 26, 1986
Presidential Decree No. 2018 amends the Labor Code of the Philippines to impose stricter penalties on illegal recruiters, including life imprisonment and a fine of P100,000 for offenses constituting economic sabotage, while also granting the Ministry of Labor and Employment the power to arrest, detain, and close down companies engaged in illegal recruitment.

Law Summary

Classification and Aggravating Circumstances

  • Illegal recruitment by a syndicate or on a large scale is considered economic sabotage.
  • A syndicate is defined as a group of three or more persons conspiring together.
  • Large scale illegal recruitment involves recruitment of three or more persons individually or as a group.

Powers of the Minister of Labor and Employment

  • Authorized to arrest and detain persons involved in illegal recruitment after investigation.
  • Can order the search of offices and premises, seizure of documents and materials.
  • Has authority to close companies or entities engaged in unlicensed recruitment for overseas employment.

Penalties for Illegal Recruitment

  • Life imprisonment and a fine of P100,000 if illegal recruitment amounts to economic sabotage.
  • Licensed recruiters violating the law face imprisonment of 2 to 5 years, or fines ranging from P10,000 to P50,000, or both.
  • Unlicensed or unauthorized persons face imprisonment of 4 to 8 years, or fines from P20,000 to P100,000, or both.
  • Officers of corporations or entities responsible for violations are personally liable.
  • Foreign officers guilty of violation will be deported in addition to penalties.

Consequences of Conviction

  • Automatic revocation of license, authority, permits, and privileges granted under the law.
  • Forfeiture of cash and surety bonds in favor of Overseas Employment Development Board or National Seamen Board.
  • Bonds forfeited shall be used exclusively to promote the objectives of said boards.

Effective Date

  • The decree takes effect immediately upon issuance.

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