6/15/2016
P.D.No.1866
TodayisWednesday,June15,2016
MALACAANG
Manila
PRESIDENTIALDECREENo.2018
FURTHERAMENDINGARTICLES38AND39OFTHELABORCODEBYMAKINGILLEGALRECRUITMENTA
CRIMEOFECONOMICSABOTAGEANDPUNISHABLEWITHLIFEIMPRISONMENT
WHEREAS,despiteexistingprovisionsoflawandthecontinuingeffortstoeliminatethem,illegalrecruiters,have
continuedtoproliferateandvictimizeunwaryworkers
WHEREAS, illegal recruiters have defrauded and caused untold sufferings to thousands of Filipino workers and
theirfamilies
la w p h il.n e t
WHEREAS, experience shows that because of light penalties, illegal recruiters have become more callous and
bolderintheirmodusoperandiandusuallycarryouttheiractivitiesassyndicatesorinlargescale
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the
powersvestedinmebytheConstitution,doherebyorder:
Section1.Articles38and39ofPresidentialDecreeNo.442,asamended,otherwiseknownastheLaborCode
ofthePhilippines,isherebyfurtheramendedtoreadasfollows:
"Art.38.IllegalRecruitment.(a)Anyrecruitmentactivities,includingtheprohibitedpracticesenumeratedunder
Article34ofthisCode,tobeundertakenbynonlicenseesornonholdersofauthorityshallbedeemedillegaland
punishableunderArticle39ofthisCode.TheMinistryofLaborandEmploymentoranylawenforcementofficers
mayinitiatecomplaintsunderthisArticle.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be considered an offense
involvingeconomicsabotageandshallbepenalizedinaccordancewithArticle39hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or more
personsconspiringand/orconfederatingwithoneanotherincarryingoutanyunlawfulorillegaltransaction,
enterpriseorschemedefinedunderthisfirstparagraphhereof.Illegalrecruitmentisdeemedcommittedin
largescaleifcommittedagainstthree(3)ormorepersonsindividuallyorasagroup.
(c)TheMinisterofLaborandEmploymentorhisdulyauthorizedrepresentativesshallhavethepowerto
cause the arrest and detention of such nonlicense or nonholder of authority if after investigation it is
determinedthathisactivitiesconstituteadangertonationalsecurityandpublicorderorwillleadtofurther
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
overseasemployment,withouthavingbeenlicensedorauthorizedtodoso.
"Art. 39. Penalties. (a) The penalty of imprisonment and a fine of One Hundred Thousand Pesos (P100,000)
shallbeimposedifillegalrecruitmentconstituteseconomicsabotageasdefinedherein
(b)AnylicenseeorholderofauthorityfoundviolatingorcausinganothertoviolateanyprovisionofthisTitle
oritsimplementingrulesandregulationsshall,uponconvictionthereof,sufferthepenaltyofimprisonment
of not less than two years nor more than five years or a fine of not less than P10,000 nor more than
P50,000orbothsuchimprisonmentandfine,atthediscretionofthecourt
(c) Any person who is neither a licensee nor a holder of authority under this Title found violating any
provisionthereoforitsimplementingrulesandregulationsshall,uponconvictionthereof,sufferthepenalty
ofimprisonmentofnotlessthanfouryearsnormorethaneightyearsorafineofnotlessthanP20,000nor
morethanP100,000orbothsuchimprisonmentandfine,atthediscretionoftheCourt
(d)Iftheoffenderisacorporation,partnership,associationorentity,thepenaltyshallbeimposeduponthe
officerorofficersofthecorporation,partnership,associationorentityresponsibleforviolationandifsuch
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P.D.No.1866
officer is an alien, he shall, in addition to the penalties herein prescribed be deported without further
proceedings
la w p h i1 .n e t
(e)Ineverycase,convictionshallcauseandcarrytheautomaticrevocationofthelicenseorauthorityand
allthepermitsandprivilegesgrantedtosuchpersonorentityunderthisTitle,andtheforfeitureofthecash
andsuretybondsinfavoroftheOverseasEmploymentDevelopmentBoardortheNationalSeamenBoard,
asthecasemaybe,bothofwhichareauthorizedtousethesameexclusivelytopromotetheirobjectives.
Section2.ThisDecreeshalltakeeffectimmediately.
DoneintheCityofManila,this26thdayofJanuary,1986.
TheLawphilProjectArellanoLawFoundation
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