Legal basis and amending authority
- Presidential Decree No. 2018 amends Articles 38 and 39 of Presidential Decree No. 442 (Labor Code of the Philippines).
- Section 1 directs that Article 38 and Article 39 be further amended to incorporate the economic sabotage classification and corresponding penalties.
Policy and purpose statement
- The decree declares that, despite existing laws and continuing efforts to eliminate illegal recruiters, illegal recruitment has continued to proliferate and victimize workers and their families.
- The decree states that illegal recruiters have defrauded workers and caused extensive suffering.
- The decree declares that light penalties have made illegal recruiters more callous and bold, usually operating as syndicates or in large scale.
Definitions: syndicate and large scale
- Article 38(a) deems illegal recruitment committed when recruitment activities, including prohibited practices under Article 34 of the Labor Code, are undertaken by non-licensees on non-holders of authority.
- Article 38(b) defines illegal recruitment as “economic sabotage” when committed by a syndicate or in large scale.
- Article 38(b) provides that 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 within Article 38(a).
- Article 38(b) provides that illegal recruitment is deemed committed in large scale if committed against three (3) or more persons, individually or as a group.
Covered acts, persons, and recruitment authority
- Article 38(a) covers recruitment activities, including the prohibited practices enumerated under Article 34, when undertaken by non-licensees on non-holders of authority.
- Article 38(a) makes such recruitment activities illegal and punishable under Article 39.
- Article 38(a) authorizes the Ministry of Labor and Employment or any law enforcement officers to initiate complaints under Article 38.
- Article 38(b) covers illegal recruitment committed by a syndicate or in large scale, classifying it as an offense involving economic sabotage.
- Article 38(c) empowers the Minister of Labor and Employment (or duly authorized representatives) to order actions against non-licensees/non-holders of authority whose activities endanger national security and public order or will lead to further exploitation of job-seekers.
Investigation, arrest, detention, search, closure powers
- Article 38(c) authorizes the Minister of Labor and Employment or duly authorized representatives to cause the arrest and detention of a non-licensee or non-holder of authority.
- Article 38(c) conditions arrest and detention on a determination, after investigation, that the activities constitute a danger to national security and public order or will lead to further exploitation of job-seekers.
- Article 38(c) requires the Minister to order the search of the office or premises and the seizure of documents, paraphernalia, properties, and other implements used in illegal recruitment activities.
- Article 38(c) requires the Minister to order the closure of companies, establishments, and entities found to be engaged in recruiting workers for overseas employment without being licensed or authorized to do so.
Penalties for illegal recruitment as economic sabotage
- Article 39(a) mandates life imprisonment and a fine of PHP 100,000 if illegal recruitment constitutes economic sabotage as defined in Article 38.
- Article 39(b) imposes on a licensee or holder of authority who violates (or causes another to violate) any provision of the Title or its implementing rules and regulations: imprisonment of not less than two (2) years nor more than five (5) years or a fine of not less than PHP 10,000 nor more than PHP 50,000, or both, at the discretion of the court.
- Article 39(c) imposes on any person who is neither a licensee nor a holder of authority and who violates any provision of the Title or its implementing rules and regulations: imprisonment of not less than four (4) years nor more than eight (8) years or a fine of not less than PHP 20,000 nor more than PHP 100,000, or both, at the discretion of the court.
- Article 39(d) provides that if the offender is a corporation, partnership, association, or entity, the penalty shall be imposed on the responsible officer or officers.
- Article 39(d) provides that if such responsible officer is an alien, the alien shall be deported without further proceedings in addition to the penalties prescribed.
- Article 39(e) provides that in every case, conviction causes and carries automatic revocation of the offender’s license or authority and all permits and privileges granted under the Title.
- Article 39(e) provides that conviction also causes 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, with authorization for both to use the forfeited bonds exclusively to promote their objectives.