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Batas Pambansa Bilang 130
AN
ACT AMENDING ARTICLES 214, 217, 231, 232, 234, 249, 250, 251, 257, 262,
263, 264, 265, 278, 283, AND 284 OF PRESIDENTIAL
DECREE NUMBERED FOUR HUNDRED AND FORTY-TWO, OTHERWISE KNOWN AS THE
LABOR
CODE OF THE PHILIPPINES, AS AMENDED, TO FURTHER PROMOTE FREE TRADE
UNIONISM AND COLLECTIVE BARGAINING AND FOR OTHER PURPOSES.
chan
robles
virtual law library
BATAS
PAMBANSA BILANG 130AN
ACT AMENDING ARTICLES 214, 217, 231, 232, 234, 249, 250, 251, 257, 262,
263, 264, 265, 278, 283, AND 284 OF PRESIDENTIAL
DECREE NUMBERED FOUR HUNDRED AND FORTY-TWO, OTHERWISE KNOWN AS THE
LABOR
CODE OF THE PHILIPPINES, AS AMENDED, TO FURTHER PROMOTE FREE TRADE
UNIONISM AND COLLECTIVE BARGAINING AND FOR OTHER PURPOSES.chan
robles
virtual law library
chan
robles virtual law librarySection
1. Article 214 of the Labor
Code of the Philippines is hereby amended to read as follows:chanroblesvirtuallawlibrarychanrobles virtual law library
"Art.
214. Headquarters and branches.
— The Commission shall have its main office in Metropolitan Manila and
its Chairman shall exercise supervision over labor arbiters and all its
personnel. It shall establish as many branches as there are regional
offices
of the Ministry of Labor and Employment, with as many labor arbiters as
shall be necessary for its effective operation, each branch to be
headed
by an executive labor arbiter who shall be a member of the Integrated
Bar
of the Philippines."
Sec.
2. Subparagraph (2) of
paragraph (a) and paragraph (b) of Article 217 of the Labor
Code are amended to read as follows:
"(2) Those
that involve wages, hours of work and other terms and conditions of
employment;
and" chanrobles virtual law library
"(b) The
Commission shall have exclusive appellate jurisdiction over all cases
decided
by Labor Arbiters."
Sec.
3. Article 231 is hereby
amended to read as follows: chanrobles virtual law library
"Art.
231. Registry of unions
and file of collective agreements. — The Bureau shall keep a registry
of
legitimate labor organizations.chanrobles virtual law library
"It
shall also maintain a file of all collective agreements and other
related
agreements and records of settlements of labor disputes, and copies of
all orders and decisions of voluntary arbitrators. The file shall be
open
and accessible to interested parties under conditions prescribed by the
Minister of Labor and Employment, provided that no specific information
submitted in confidence shall be disclosed unless authorized by the
Minister,
or when it is at issue in any judicial litigation or when public
interest
or national security so requires. chanrobles virtual law library
"Parties
shall submit copies of their collective agreement to the Bureau through
the regional offices. Such agreements shall be accompanied with a
verified
proof of ratification by the majority of all the workers in the
bargaining
unit.
"The
Bureau shall also maintain a file, and shall undertake or assist in the
publication of all final decisions, orders, and awards of the Minister
of Labor and Employment and the Commission."
Sec.
4. Article 232 of the Labor
Code is amended to read as follows:
"Art.
232. Prohibition on certification
election. — The Bureau shall not entertain any petition for
certification
election or any other action which may disturb the administration of
existing
collective bargaining agreements affecting the parties except under
Articles
254 and 257 of this Code."
Sec.
5. Article 234 of the Labor
Code is hereby amended to read as follows:
"Art.
234. Requirements of registration.
— Any application labor organization, association or group of unions or
workers shall acquire legal personality and shall be entitled to the
rights
and privileges granted by law to legitimate labor organizations upon
issuance
of the certificate of registration, based on the following
requirements: chanrobles virtual law library
"(a) Fifty-peso
(P50.00) registration fee; chanrobles virtual law library
"(b) The
names of its officers, their addresses, the principal address of the
labor
organization, the minutes of the organizational meetings and the list
of
the workers who participated in such meetings;
"(c) The
names of all its members comprising at least thirty (30%) per cent of
all
the employees in the bargaining unit where it seeks to operate; chanrobles virtual law library
"(d) If
the applicant has been in existence for one or more years, copies of
its
annual financial reports; and
"(e) Four
(4) copies of the constitution and by-laws of the applicant union, the
minutes of its adoption or ratification, and the list of the members
who
participated in it."chanrobles virtual law library
Sec.
6. Article 249 of the Labor
Code, as amended, is further amended by deleting paragraph (i), and
renumbering paragraph (j) as paragraph (i), as follows: chanrobles virtual law library
"Art.
249. Unfair labor practices
of employers. — It shall be unlawful for an employer to commit any of
the
following unfair labor practices: chanrobles virtual law library
"(a) To
interfere with, restrain or coerce employees in the exercise of their
right
to self-organization;
"(b) To
require as a condition for employment that a person or an employee
shall
not join a labor organization or shall withdraw from one to which he
belongs; chanrobles virtual law library
"(c) To
contract out services or functions being performed by union members
when
such will interfere with, restrain or coerce employees in the exercise
of their right to self-organization;
"(d) To
initiate, dominate, assist or otherwise interfere with the formation or
administration of any labor organization, including the giving of
financial
or other support to it or its organizers or officers;chanrobles virtual law library
"(e) To
discriminate in regard to hire or tenure of employment or any term or
condition
of employment in order to encourage or discourage membership in any
labor
organization. Nothing in this Code or in any other law shall prevent
the
parties from requiring membership in a recognized collective bargaining
agent as a condition for employment, except of those employees who are
already members of another union at the time of the signing of the
collective
bargaining agreement. Employees belonging to an appropriate collective
bargaining unit who are not members of the recognized collective
bargaining
agent may be assessed a reasonable fee equivalent to the dues and other
fees paid by members of the recognized collective bargaining agent, if
such non-union members accept the benefits under the collective
agreement:
Provided, That the individual authorization required under Article 242,
paragraph (o) of this Code shall not apply to non-members of the
recognized
collective bargaining agent;
"(f) To
dismiss, discharge, or otherwise prejudice or discriminate against an
employee
for having given or being about to give testimony under this Code; chanrobles virtual law library
"(g) To
violate the duty to bargain collectively as prescribed by this
Code; chanrobles virtual law library
"(h) To
pay negotiation or attorney's fees to the union or its officers or
agents
as part of the settlement of any issue in collective bargaining or any
other dispute; or
"(i) To
violate a collective bargaining agreement. chanrobles virtual law library
"The
provisions of the preceding paragraph notwithstanding, only the
officers
and agents of corporations, associations or partnerships who have
actually
participated in, authorized or ratified unfair labor practices shall be
held criminally liable."
Sec.
7. Article 250 of the Labor
Code, as amended, is further amended by deleting paragraph (f) and
renumbering paragraph (g) thereof as paragraph (f), as follows:chanroblesvirtuallawlibrary
"Art.
250. Unfair labor practices
of labor organizations. — It shall be unlawful for a labor
organization,
its officers, agents or representatives to commit any of the following
unfair labor practices: chanrobles virtual law library
"(a) To
restrain or coerce employees in the exercise of their right to
self-organization:
Provided, That the labor organization shall have the right to prescribe
its own rules with respect to the acquisition or retention of
membership;
"(b) To
cause or attempt to cause an employer to discriminate against an
employee,
including discrimination against an employee with respect to whom
membership
in such organization has been denied or terminated on any ground other
than the usual terms and conditions under which membership or
continuation
of membership is made available to other members;
"(c) To
violate the duty, or refuse to bargain collectively with the employer,
provided that it is the representative of the employees; chanrobles virtual law library
"(d) To
cause or attempt to cause an employer to pay or deliver or agree to pay
or deliver any money or other things of value, in the nature of an
exaction,
for services which are not performed or not to be performed, including
the demand for a fee for union negotiations; chanrobles virtual law library
"(e) To
ask for or accept negotiation or attorney's fees from employers as part
of the settlement of any issue in collective bargaining or any other
dispute;
or chanrobles virtual law library
"(f) To
violate a collective bargaining agreement.
"The
provisions of the preceding paragraph notwithstanding, only the
officers,
members of governing boards, representatives or agents or members of
labor
associations or organizations who have actually participated in,
authorized
or ratified unfair labor practices shall be held criminally liable."chanrobles virtual law library
Sec.
8. Article 257 of the Labor
Code is hereby amended to read as follows:chanroblesvirtuallawlibrary
"Art.
257. Procedure governing
representation issues. — When a question concerning the representation
of employees is submitted to the Ministry, a Med-Arbiter shall hear and
decide such controversy and certify to the parties in writing the name
of the labor organization that has been designated or selected by the
majority
of the workers in the appropriate bargaining unit as the exclusive
bargaining
agent. If there is any reasonable doubt as to which union the employees
have chosen as their representative for the purpose of collective
bargaining,
the Med-Arbiter shall order an election by secret ballot to be
conducted
by the Ministry to ascertain the freely chosen representative of the
employees
concerned, under such rules and regulations as the Ministry may
prescribe,
at which election representatives of the contending parties shall have
the right to act as inspectors. The labor union receiving the majority
of the valid votes cast shall be certified as the exclusive bargaining
representative of the workers.
"No
certification election issue shall be entertained if a collective
agreement
which has been submitted in accordance with Article 231 of this Code
exists
between the employer and a legitimate labor organization except within
sixty (60) days prior to the expiration of the life of such collective
agreement."
Sec.
9. Article 262 of the Labor
Code is hereby amended to read as follows: chanrobles virtual law library
"Art.
262. Grievance machinery.
— Whenever a grievance arises from the interpretation or implementation
of a collective agreement, including disciplinary actions imposed on
members
of the bargaining unit, the employer and the bargaining representative
shall meet to adjust the grievance. Where there is no collective
agreement
and in cases where the grievance procedure as provided herein does not
apply, grievances shall be subject to negotiation, conciliation or
arbitration
as provided elsewhere in this Code."
Sec.
10. Article 263 of the
Labor
Code is hereby amended to read as follows: chanrobles virtual law library
"Art.
263. Voluntary arbitration.
— All grievances referred to in the immediately preceding Article which
are not settled through the grievance procedure provided in the
collective
agreement shall be referred to voluntary arbitration prescribed in said
agreement: Provided, That termination disputes shall be governed by
Article
278 of this Code, as amended, unless the parties agree to submit them
to
voluntary arbitration.chanrobles virtual law library
"Every
collective agreement shall designate in advance an arbitrator or panel
of arbitrators chosen by the parties or include provisions on the
procedure
for the selection of such arbitrator or panel of arbitrators. The
Ministry
shall compile a list of qualified arbitrators and make the same
available
to the parties. Such arbitrator or panel of arbitrators shall have
exclusive
original jurisdiction to hear and decide all unsettled grievances
referred
to in the immediately preceding paragraph.
"Voluntary
arbitration awards or decisions shall be final, unappealable, and
executory."
Sec.
11. Article 264 of the
Labor
Code is hereby amended to read as follows:
"Art.
264. Strikes, picketing,
and lockouts. — (a) It is the policy of the State to encourage free
trade
unionism and free collective bargaining. chanrobles virtual law library
"(b) Workers
shall have the right to engage in concerted activities for purposes of
collective bargaining or for their mutual benefit and protection. The
right
of lifetime labor organizations to strike and picket and of employers
to
lockout, consistent with the national interest, shall continue to be
recognized
and respected. However, no labor union may strike and no employer may
declare
a lockout on grounds involving inter-union and intra-union
disputes.
"(c) In
cases of bargaining deadlocks, the certified or duly recognized
bargaining
representative may file a notice of strike or the employer may file a
notice
of lockout with the Ministry at least thirty (30) days before the
intended
date thereof. In cases of unfair labor practices, the period of notice
shall be shortened to fifteen (15) days; and in the absence of a duly
certified
or recognized bargaining representative, the notice of strike may be
filed
by any legitimate labor organization in behalf of its members.
"(d) The
notice must be in accordance with such implementing rules and
regulations
as the Minister of Labor and Employment may promulgate. chanrobles virtual law library
"(e) During
the cooling-off period, it shall be the duty of the Ministry to exert
all
efforts at mediation and conciliation to effect a voluntary settlement.
Should the dispute remain unsettled until the lapse of the requisite
number
of days from the mandatory filing of the notice, the labor union may
strike
or the employer may declare a lockout. chanrobles virtual law library
"(f) A
decision to declare a strike must be approved by at least two-thirds
(2/3)
of the total union membership in the bargaining unit concerned obtained
by secret ballot in meetings or referenda. A decision to declare a
lockout
must be approved by at least two-thirds (2/3) of the board of directors
of the employer corporation or association or of the partners in a
partnership
obtained by secret ballot in a meeting called for the purpose. The
decision
shall be valid for the duration of the dispute based on substantially
the
same grounds considered when the strike or lockout vote was taken. The
Ministry may, at its own initiative or upon the request of any affected
party, supervise the conduct of the secret balloting. In every case,
the
union or the employer shall furnish the Ministry the results of the
voting
at least seven (7) days before the intended strike or lockout, subject
to the cooling-off period herein provided.chanrobles virtual law library
"(g) In
labor disputes causing or likely to cause strikes or lockouts adversely
affecting the national interest, such as may occur in but not limited
to
public utilities, companies engaged in the generation or distribution
of
energy, banks, hospitals, and those within export processing zones, the
Minister of Labor and Employment may assume jurisdiction over the
dispute
and decide it or certify the same to the Commission for compulsory
arbitration.
Such assumption or certification shall have the effect of automatically
enjoining the intended or impending strike or lockout. If one has
already
taken place at the time of assumption or certification, all striking or
locked out employees shall immediately return to work and the employers
shall immediately resume operations and readmit all workers under the
same
terms and conditions prevailing before the strike or lockout. The
Minister
may seek the assistance of law enforcement agencies to ensure
compliance
with this provision as well as such orders as he may issue to enforce
the
same. chanrobles virtual law library
"The
foregoing notwithstanding, the President of the Philippines shall have
authority to intervene at any time and exercise jurisdiction over any
labor
dispute adversely affecting the national interest in order to settle or
terminate the same.
"(h) Before
or at any stage of the compulsory arbitration process, the parties may
opt to submit their dispute to voluntary arbitration.chanrobles virtual law library
"(i) The
Minister of Labor and Employment, the Commission or the voluntary
arbitrator
shall decide or resolve the dispute within thirty (30) working days
from
the date of the assumption of jurisdiction or the certification or
submission
of the dispute, as the case may be. The decision of the Minister, the
Commission
or the voluntary arbitrator shall be final and immediately executory."
Sec.
12. Article 265 of the
Labor
Code is hereby amended to read as follows:
"Art.
265. Prohibited activities.
— It shall be unlawful for any labor organization or employer to
declare
a strike or lockout without first having bargained collectively in
accordance
with Title VII of this Book or without first having filed the notice
required
in the preceding Article or without the necessary strike or lockout
vote
first having been obtained and reported to the Ministry.
"It
shall likewise be unlawful to declare a strike or lockout after
assumption
of jurisdiction by the President or the Minister or after certification
or submission of the dispute to compulsory or voluntary arbitration or
during the pendency of cases involving the same grounds for the strike
or lockout. chanrobles virtual law library
"Any
worker whose employment has been terminated as a consequence of an
unlawful
lockout shall be entitled to reinstatement with full back wages. Any
union
officer who knowingly participates in an illegal strike and any worker
or union officer who knowingly participates in the commission of
illegal
acts during a strike may be declared to have lost his employment
status."
Sec.
13. Paragraphs (a) and
(b) of Article 278 of the Labor
Code are hereby amended as follows: chanrobles virtual law library
"(a) All
unions are authorized to collect reasonable contributions for their
labor
education and research funds.
"(b) Subject
to the constitutional right of workers to security of tenure and their
right to be protected against dismissal except for a just or authorized
cause and without prejudice to the requirement of notice under Article
284 of this Code, the clearance to terminate employment shall no longer
be necessary.chanrobles virtual law library
"However,
the employer shall furnish the worker whose employment is sought to be
terminated a written notice containing a statement of the causes for
termination
and shall afford the latter ample opportunity to be heard and to defend
himself with the assistance of his representative if he so desires in
accordance
with company rules and regulations promulgated pursuant to guidelines
set
by the Ministry of Labor and Employment. Any decision taken by the
employer
shall be without prejudice to the right of the worker to contest the
validity
or legality of his dismissal by filing a complaint with the regional
branch
of the National Labor Relations Commission. The burden of proving that
the termination was for a valid or authorized cause shall rest on the
employer.
The Ministry may suspend the effects of the termination pending
resolution
of the case in the event of a prima facie finding by the Ministry that
the termination may cause a serious labor dispute or is in
implementation
of a mass lay-off."
Sec.
14. Article 278 of the
Labor
Code is further amended by adding thereto the following new
paragraphs:
"(e) The
Minister of Labor and Employment and the Minister of the Budget shall
cause
to be created or reclassified in accordance with law such positions as
may be necessary to carry out the objectives of this Code and cause the
upgrading of the salaries of the personnel involved in the Labor
Relations
System of the Ministry. Funds needed for this purpose shall be provided
out of the Special Activities Fund appropriated by Batas Pambansa Blg.
80 and from annual appropriations thereafter.
"(f) A
special Voluntary Arbitration Fund is hereby established in the Bureau
to cover voluntary arbitration fees incurred by indigent parties, and
for
such other related purposes to promote and develop a voluntary
arbitration
program as may be authorized by the Minister. Funds needed for this
purpose
shall be provided out of the Special Activities Fund appropriated by
Batas
Pambansa Blg. 80 and from annual appropriations thereafter. chanrobles virtual law library
"(g) The
Ministry shall help promote and gradually develop, with the agreement
of
labor organizations and employers, labor-management cooperation
programs
at appropriate levels of the enterprise based on shared responsibility
and mutual respect in order to ensure industrial peace and improvement
in productivity, working conditions and the quality of working life.
"(h) In
establishments where no labor organization exists, labor-management
committees
may be formed voluntarily by workers and employers for the purpose of
promoting
industrial peace."chanrobles virtual law library
Sec.
15. Articles 283 and 284
of the Labor
Code are hereby amended to read as follows:
"Art.
283. Termination by employer.
— An employer may terminate an employment for any of the following just
causes:
"(a) Serious
misconduct or willful disobedience by the employee of the lawful orders
of his employer or representative in connection with his work; chanrobles virtual law library
"(b) Gross
and habitual neglect by the employee of his duties; chanrobles virtual law library
"(c) Fraud
or willful breach by the employee of the trust reposed in him by his
employer
or duly authorized representative;
"(d) Commission
of a crime or offense by the employee against the person of his
employer
or any immediate member of his family or his duly authorized
representative;
and chanrobles virtual law library
"(e) Other
causes analogous to the foregoing."chanrobles virtual law library
"Art.
284. Closure of establishment
and reduction of personnel. — The employer may also terminate the
employment
of any employee due to the installation of labor-saving devices,
redundancy,
retrenchment to prevent losses or the closing or cessation of operation
of the establishment or undertaking unless the closing is for the
purpose
of circumventing the provisions of this title; by serving a written
notice
on the workers and the Ministry of Labor and Employment at least one
(1)
month before the intended date thereof. In case of termination due to
the
installation of labor-saving devices or redundancy, the worker affected
thereby shall be entitled to a separation pay equivalent to at least
his
one (1) month pay or to at least one (1) month pay for every year of
service,
whichever is higher. In case of retrenchment to prevent losses and in
cases
of closures or cessation of operations of establishment or undertaking
not due to serious business losses or financial reverses, the
separation
pay shall be equivalent to one (1) month pay or at least one-half (1/2)
month pay for every year of service, whichever is higher. A fraction of
at least six (6) months shall be considered one (1) whole year."chanrobles virtual law library
Sec.
16. Articles 220, 228,
paragraph (f) of Article 251, Article 266, paragraph (b) of Article 273
of the Labor
Code and all provisions of said Code and other laws, orders,
decrees
and rules and regulations inconsistent with the provisions of this Act,
are hereby repealed.
Sec.
17. This Act shall take
effect upon its approval. chanrobles virtual law library
Approved:
August 21, 1981
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