Illegal Recruitment Liability of Officers and Principals in the Philippines

Illegal recruitment liability in the Philippines does not stop at the person who actually recruited the worker. Under Republic Act No. 10022, which amended the Migrant Workers and Overseas Filipinos Act of 1995, the persons criminally liable for illegal recruitment and the prohibited acts are the principals, accomplices and accessories. If the offender is a corporation, partnership or other juridical person, the officers having ownership, control, management or direction of the business who are responsible for the offense, together with the responsible employees or agents, are liable. Officers of a licensed agency can therefore be prosecuted even when the agency itself holds a valid license.

What counts as illegal recruitment

Section 6 of Republic Act No. 10022 defines illegal recruitment as any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, including referring, contract services, promising or advertising for employment abroad, whether for profit or not, when undertaken by a non-licensee or non-holder of authority. A non-licensee or non-holder who offers or promises employment abroad for a fee to two or more persons is deemed engaged in illegal recruitment.

The same section lists acts that are illegal whether committed by a non-licensee, a non-holder, a licensee or a holder of authority. These include charging or accepting amounts greater than the schedule of allowable fees, furnishing false notices or documents, misrepresentation to secure a license, substituting or altering approved employment contracts to the prejudice of the worker, withholding travel documents, failing to actually deploy a contracted worker without valid reason, and failing to reimburse documentation and processing expenses when deployment does not take place without the worker's fault.

Two acts in the list speak directly to officers and agents. It is illegal 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. It is likewise illegal to allow a non-Filipino citizen to head or manage a licensed recruitment or manning agency.

When illegal recruitment becomes economic sabotage

Illegal recruitment is deemed committed by a syndicate if carried out by a group of three or more persons conspiring or confederating with one another. It is deemed committed in large scale if committed against three or more persons, individually or as a group. Either circumstance makes the offense one involving economic sabotage, which carries the heavier penalty under Section 7.

Penalties officers and principals face

Under Section 7 of Republic Act No. 10022, a person found guilty of illegal recruitment faces imprisonment of not less than twelve years and one day but not more than twenty years, and a fine of not less than One million pesos nor more than Two million pesos.

If the illegal recruitment constitutes economic sabotage, the penalty is life imprisonment and a fine of not less than Two million pesos nor more than Five million pesos. The maximum penalty is imposed if the person illegally recruited is less than eighteen years of age, or if the offense is committed by a non-licensee or non-holder of authority.

For the prohibited acts, the penalty is imprisonment of not less than six years and one day but not more than twelve years, and a fine of not less than Five hundred thousand pesos nor more than One million pesos. If the offender is an alien, deportation follows in addition to these penalties. In every case, conviction carries the automatic revocation of the license or registration of the recruitment or manning agency, lending institution, training school or medical clinic.

Civil liability of corporate officers for money claims

Liability is not only criminal. Section 10 of Republic Act No. 10022 provides that the liability of the principal or employer and the recruitment or placement agency for money claims is joint and several. If the recruitment or placement agency is a juridical entity, the corporate officers, directors and partners are themselves jointly and severally liable with the corporation or partnership for the claims and damages.

These liabilities continue during the entire duration of the employment contract and are not affected by any substitution, amendment or modification of the contract made locally or abroad. Where overseas employment is terminated without just, valid or authorized cause, the worker is entitled to full reimbursement of the placement fee with interest at twelve percent per annum, plus salaries for the unexpired portion of the contract or for three months for every year of the unexpired term, whichever is less.

Who may file and where assistance is available

The Secretary of Labor and Employment, the POEA Administrator or their duly authorized representatives, or any aggrieved person may initiate the corresponding criminal action with the appropriate office. Affidavits and testimonies of operatives or personnel from the Department of Labor and Employment, the POEA and other law enforcement agencies who witnessed the offense are sufficient to prosecute the accused.

Victims may also seek immediate financial assistance. Under Department Order No. 04, Series of 2024, OFWs who are immediate victims of illegal recruitment may receive a one-time financial aid of Thirty Thousand Pesos (Php 30,000.00) upon submission of complete documents, including a sworn complaint affidavit and the docket number of the case filed with the Department of Justice or the local prosecution office.

Frequently asked questions

Can the officers of a licensed recruitment agency be held liable for illegal recruitment? Yes. Section 6 of Republic Act No. 10022 makes the prohibited acts illegal whether committed by a non-licensee, non-holder, licensee or holder of authority, and states that in the case of juridical persons, the officers having ownership, control, management or direction of the business who are responsible for the offense shall be liable.

What is the difference between illegal recruitment by a syndicate and in large scale? Illegal recruitment is by a syndicate when carried out by a group of three or more persons conspiring or confederating with one another, and in large scale when committed against three or more persons individually or as a group. Both are considered offenses involving economic sabotage.

Are corporate officers liable for money claims awarded to the worker? Yes. Under Section 10, if the recruitment or placement agency is a juridical entity, the corporate officers, directors and partners are jointly and severally liable with the corporation or partnership for the claims and damages.

Practical takeaways

• Criminal liability for illegal recruitment extends to principals, accomplices and accessories, not just the recruiter.
• For juridical persons, officers with ownership, control, management or direction who are responsible for the offense are liable, along with responsible employees and agents.
• Economic sabotage — recruitment by a syndicate of three or more persons, or in large scale against three or more persons — carries life imprisonment and a fine of up to Five million pesos.
• Conviction automatically revokes the agency's license or registration.
• Corporate officers, directors and partners are jointly and severally liable with the agency for money claims and damages.

Primary sources

The rules discussed above are drawn from the following primary sources. Where the firm's library holds the document as a PDF it is embedded here in full; the rest are cited by title.

DMW-DO-04-2024 — GUIDELINES FOR THE PROVISION OF IMMEDIATE FINANCIAL ASSISTANCE TO VICTIMS OF ILLEGAL RECRUITMENT THROUGH THE AGARANG KALINGA AT SAKLOLO PARA SA MGA OFWs NA NANGANGAILANGAN (AKSYON) FUNDOpen in Law LibraryDownload PDF

• REPUBLIC ACT NO. 10022 - AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPINOS ACT OF 1995, AS AMENDED, FURTHER IMPROVING THE STANDARD OF PROTECTION AND PROMOTION OF THE WELFARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVERSEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES

• IRR of REPUBLIC ACT NO. 11641 (Approved by the Transition Committee) - THE IMPLEMENTING RULES AND REGULATIONS OF REPUBLIC ACT NO. 11641, OTHERWISE KNOWN AS THE "DEPARTMENT OF MIGRANT WORKERS ACT"

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.