LLSL Course Outline: Page 1

LABOR LAWS AND SOCIAL LEGISLATION

THE LABOR CODE OF THE PHILIPPINES

BOOK I: PRE-EMPLOYMENT

Title I
RECRUITMENT AND PLACEMENT OF WORKERS

Chapter III
MISCELLANEOUS PROVISIONS

I. REGULATORY AND VISITORIAL POWERS OF THE SOLE (Arts. 36 & 37, LC)

A. Regulatory power (A.36, LC)

Article 36. Regulatory power. The Secretary of Labor shall have the power to restrict and
regulate the recruitment and placement activities of all agencies within the coverage of this Title
and is hereby authorized to issue orders and promulgate rules and regulations to carry out the
objectives and implement the provisions of this Title.

 The Secretary of Labor shall have the power to:

1) Restrict and regulate the recruitment and placement activities of all agencies; and
2) Issue orders and promulgate rules and regulations

B. Visitorial power (A.37, LC)

Article 37. Visitorial Power. The Secretary of Labor or his duly authorized representatives may,
at any time, inspect the premises, books of accounts and records of any person or entity
covered by this Title, require it to submit reports regularly on prescribed forms, and act on
violation of any provisions of this Title.

 The Secretary of Labor or his duly authorized representatives may, at any time:
1) Inspect the premises, books of accounts and records of any person or entity covered by this
Title;
2) Require it to submit reports regularly on a prescribed forms;
3) Act on violations of any provisions of this Title;
4) Have access to Er’s records and premises to determine violations of any provisions of the LC
on recruitment and placement (Art. 128, LC);
5) Conduct industrial safety inspections of establishments (Art. 171, LC)

 Procedure for inspection:

1) Inspection shall be conducted during office hours by a team of at least two (2) duly
authorized inspectors, in the presence of the manager of the office or any office
personnel;

1st Semester, SY 2021-2022 ~ labor omnia vincit ~ Atty. Maan Grace B. Elago
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2) Inspection reports shall be submitted to the POEA within 24 hours after inspection;

 SOLE’s authority to issue search warrants

- Art.38 last paragraph > SOLE may issue search warrants
- BUT the above was ruled as UNCONSTITUTIONAL1 because under the 1987 Constitution,
only a judge may issue search warrants or warrants of arrest
 The labor authorities must go through the judicial process

II. ILLEGAL RECRUITMENT (Art. 38, LC)

A. Defined

- Any recruitment activities, including the prohibited practices enumerated under Article 34 of the
Labor Code, to be undertaken by non-licensees or non-holders of authority (Art.38 par.1, LC)
- any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers
and includes referring, contract services, promising or advertising for employment abroad,
whether for profit or not, when undertaken by non-licensee or non-holder of authority:
Provided, That any such non-licensee or non-holder who, in any manner, offers or promises for
a fee employment abroad to two or more persons shall be deemed so engaged (Sec.5, RA
10022).

B. Vs. Estafa

1) As to classification as offense
- Illegal recruitment: Malum prohibitum
- Estafa: Mala in se

2) As to element of deceit
- Illegal recruitment: Malum prohibitum
- Estafa: Accused defrauded another by abuse of confidence, or by means of deceit

C. Elements

1. The offender is a licensee/non-licensee or holder/non-holder of authority engaged in the

recruitment and placement of workers; and
2. The offender undertakes:
a. Any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring
workers and includes referring, contract services, promising or advertising for employment
abroad, whether for profit or not [Art. 13(b), LC; R.A. 8042 as amended by R.A. 10022]; or
b. Any prohibited practices enumerated under Section 5 of RA 10022

 There is illegal recruitment when one gives the impression of having the ability to send a worker
abroad. It is important that there must at least be a promise or offer of an employment from the
person posing as a recruiter, whether locally or abroad

1
Salazar v. Achacoso, G.R. No. 81510, March 14, 1990

1st Semester, SY 2021-2022 ~ labor omnia vincit ~ Atty. Maan Grace B. Elago
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D. Types

1. Simple
- Committed against one or two persons only by a:
a. Licensee
b. Non-licensee
- Simple illegal recruitment
- Criminal case filed before the Regional Trial Court (RTC) where the offense was committed
or where the offended party actually resides at the time of the commission of the offense
- Prescriptive period: 5 years from the commission of the prohibited act

2. Economic sabotage (Art.38, par.2, LC)

- Types:
a. Syndicated (Art.38, par.3, 1st sentence, LC)
 committed out by a group of three (3) or more persons in conspiracy or
confederation with one another
b. Large scale/qualified (Art.38, par.3, 2nd sentence, LC)
 committed against three (3) or more persons, individually or as a group despite
the lack of the necessary license from the POEA
- Criminal case filed before the Regional Trial Court (RTC) where the offense was committed
or where the offended party actually resides at the time of the commission of the offense
- Prescriptive period: 20 years from the commission of the prohibited act

E. Who are liable

 GR:
- Non-licensees or non-holders of authority who undertake Illegal recruitment including
prohibited practices enumerated under Article 34
 Principals, accomplices and accessories
 In case of juridical persons, the officers having control, management or direction of their
business (Sec. 6, R.A. 8042)

 EXC:
- School and civic, charitable organizations or employers for their own use;
- Direct hiring by members of the diplomatic corps, international organizations, and other
employers.

 EXC to EXC: Subject to rules and regulations by Secretary of Labor and Employment.

F. Liabilities

- Nature: joint and solidary liability

 Local Recruitment Agency with its principal or foreign-based employer
 Private Employment Agency and the principal or foreign-based employer
-

1st Semester, SY 2021-2022 ~ labor omnia vincit ~ Atty. Maan Grace B. Elago
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G. Penalties (Art.39, LC, as repealed by repealed by Section 7 of Republic Act No. 80422)

SIMPLE ECONOMIC SABOTAGE ADMINISTRATIVE

Prohibited acts:
6 yrs 1 day - 12 yrs
Automatic revocation of
Imprisonment Lifetime
license of authority
Illegal recruitment:
12 yrs 1 day - 20 yrs
Prohibited acts:
P500K – P1M
Forfeiture of cash and
Fine P2M-P5M
surety bond
Illegal recruitment:
P1M – P2M
If committed against
a minor or by a
nonlicensee:
 Non-bailable
 Max. penalty

2
Migrant Workers Act of 1995

1st Semester, SY 2021-2022 ~ labor omnia vincit ~ Atty. Maan Grace B. Elago