Text of the provision
Art. 38. Illegal recruitment. 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 Department of Labor and Employment or any law enforcement officer may initiate complaints under this Article. 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 the first paragraph hereof. Illegal recruitment is deemed committed in large scale if committed against three
(3) or more persons individually or as a group. The Secretary of Labor and Employment or his duly authorized representatives shall have the power to cause the arrest and detention of such non-licensee 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 Secretary 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, establishments and entities found to be engaged in the recruitment of workers for overseas employment, without having been licensed or authorized to do so.
Labor Code of the Philippines, Presidential Decree No. 442, as amended. Reproduced in full from the official enactment and verified against the LawPhil and ChanRobles renderings.
What this article means
Recruitment activities — including the practices banned by Article 34 — carried out by non-licensees or non-holders of authority are illegal and punishable under Article 39, and complaints may be started by the Department of Labor and Employment or by any law enforcement officer. It becomes economic sabotage when done by a syndicate (three or more persons conspiring) or in large scale (against three or more persons). The provision also lets the Secretary cause arrest and detention where the activity endangers national security and public order or will further exploit job-seekers, and order the search, seizure and closure of unlicensed recruitment operations.
Questions about this provision
- Can DOLE shut down an unlicensed recruitment office and seize its records?
- Do I have to be the victim to file an illegal recruitment complaint, or can the police start one?
- How many recruiters make an illegal recruitment case a syndicated one?
- I paid a recruiter who turned out to have no licence — is that illegal recruitment?
- When does illegal recruitment become large scale and count as economic sabotage?
Related provisions
- Article 37 — Power To Inspect Agencies.
- Article 40 — Work Permits For Foreigners.
A note on article numbers. The articles of the Labor Code have been administratively renumbered, so the same provision is often cited under a different number. Supreme Court decisions write both, in the form “Article 297 [282]” — the new number first, the original in brackets. The text on this page is published under its original number, which is the numbering both source texts use. When citing, check which numbering your source follows.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.