Prohibited Practices in Recruitment and Placement Under Philippine Labor Law

The Labor Code of the Philippines (Presidential Decree No. 442, as amended) governs recruitment and placement in the country. Specifically, the following provisions and jurisprudence address prohibited practices in recruitment and placement. These practices are explicitly outlined to protect workers from exploitation, fraud, and abuse.

1. Recruitment Defined

Under Article 13 of the Labor Code, recruitment and placement refer to "any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers, and includes referrals, contract services, promising or advertising employment, locally or abroad, whether for profit or not."

Prohibited Acts Under the Labor Code

a. Article 34: Prohibited Practices by Recruitment Agencies

Licensed recruitment and placement agencies or their representatives are prohibited from:

Charging Excessive Fees
- Collecting or charging recruitment or placement fees in excess of the authorized amount set by the Department of Migrant Workers (DMW) and the Philippine Overseas Employment Administration (POEA).
False Advertising
- Engaging in misrepresentation by giving false information in advertisements, brochures, or oral representations regarding the terms and conditions of employment.
Inducements to Mislead Workers
- Inducing jobseekers to leave their current employment through false promises or deceptive representations.
Involvement in Illegal Recruitment
- Participating in any act of recruitment without the proper authorization from the government or recruiting workers for non-existent jobs.
Substitution and Alteration of Contracts
- Substituting or altering employment contracts without the worker’s knowledge and consent.
Imposing Unlawful Restrictions
- Imposing restrictions on the worker’s right to leave employment.
Failure to Reimburse Expenses
- Failing to reimburse workers for transportation expenses and other costs in case of deployment delays or failures attributable to the agency.

b. Article 38: Illegal Recruitment

Illegal recruitment constitutes any recruitment activity conducted without the necessary license or authority from the POEA/DMW. Specific acts constituting illegal recruitment include:

Recruitment Without a License
- Undertaking recruitment activities without obtaining the required license or authority.
Charging Unauthorized Fees
- Collecting fees or payments not sanctioned by law or beyond allowable limits.
Deceptive Practices
- Misrepresentation of job opportunities, salaries, or benefits.
Exploitation
- Failing to deliver the promised job, or requiring applicants to perform tasks unrelated to the recruitment process (e.g., personal favors).
Requiring Unlawful Medical Exams or Certifications
- Mandating unnecessary medical exams as a precondition for employment.
Deployment of Minors
- Recruiting or deploying workers below the minimum legal age for employment, in violation of labor standards.

c. RA 8042 (Migrant Workers and Overseas Filipinos Act of 1995), as Amended by RA 10022

RA 8042 strengthens penalties for illegal recruitment and expands the definition of prohibited practices for overseas recruitment:

Prohibited Fees
- Collecting placement fees from domestic workers or overseas Filipino workers (OFWs) where such fees are prohibited.
Fraudulent Documentation
- Forging or falsifying travel documents, visas, or work permits.
No Job or Employment Violation
- Recruiting workers for jobs that do not exist, or deploying workers to conditions different from those promised.
Failure to Repatriate Workers
- Failing to assist in the repatriation of OFWs in distress.
Multiple Violations
- Committing acts in conjunction with other offenses, such as human trafficking.

Penalties for Violations

Administrative Penalties
- Cancellation, suspension, or revocation of the license to recruit.
- Fines and penalties imposed by the POEA/DMW.
Criminal Penalties
- Illegal recruitment, especially if done on a large scale (committed against three or more persons individually or as a group), is punishable under the Revised Penal Code as a non-bailable offense with penalties ranging from imprisonment (life imprisonment or reclusion perpetua) to fines of up to PHP 2 million.
Civil Liabilities
- Recruitment agencies are held solidarily liable with employers for violations of worker rights, including unpaid wages, illegal dismissal, or abuse.

Enforcement Mechanisms

Role of the Department of Migrant Workers (DMW)
- Monitoring and regulating private recruitment agencies.
- Issuing guidelines on placement fees and employment contracts.
Role of the Department of Labor and Employment (DOLE)
- Overseeing local recruitment and placement activities.
- Investigating complaints of illegal recruitment and labor malpractice.
Barangay and Law Enforcement Interventions
- Cases of illegal recruitment may also be reported at the barangay level, where referrals are made to authorities.

Special Provisions on Trafficking

Prohibited recruitment practices that lead to human trafficking (RA 9208) carry additional penalties under the Anti-Trafficking in Persons Act. These offenses include:

Recruitment for prostitution or forced labor.
Exploiting vulnerabilities of the workers.

Key Jurisprudence

People v. Gloria Tan Torio (G.R. No. 130568)
- Large-scale illegal recruitment was affirmed as a non-bailable offense.
Philippine Overseas Employment Administration v. Hon. Frank Chavez (G.R. No. 162248)
- Jurisdiction over illegal recruitment lies primarily with the POEA, but criminal actions must be filed in regular courts.

Worker Protections

Workers are encouraged to:

Verify job orders and recruitment licenses with the POEA.
Avoid paying excessive placement fees.
Immediately report suspected illegal recruitment activities to the DMW or law enforcement agencies.

By adhering strictly to these principles, recruitment agencies ensure compliance with labor laws, while workers gain protection against exploitation and abuse.