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THE
LABOR CODE OF THE PHILIPPINES
,
ANNOTATED
Volume
II
LAW ON LABOR
RELATIONS AND TERMINATION OF EMPLOYMENT
[Articles
211 to 302, Labor Code]
2007 e-Book Edition
By: JOSELITO
GUIANAN CHAN
Practising
Lawyer, Professor of Law and Bar Reviewer
PRESIDENTIAL
DECREE NO. 570-A
AMENDING
CERTAIN SECTIONS OF PRESIDENTIAL DECREE NO. 442 ENTITLED “LABOR CODE OF
THE
PHILIPPINES”
WHEREAS,
Presidential Decree No. 442
otherwise known as the Labor Code of the Philippines provided for a
transition
period of six (6) months between the dates of its promulgation and
effectivity;
WHEREAS,
this transition period has been
utilized by the Department of Labor for extensive and intensive study
and
discussions of the Labor Code with responsible public officials, labor
organizations, employers’ organizations, civic, professional and
technical
associations, educational institutions, and other knowledgeable groups
representing various sectors of the economy;
WHEREAS,
as a result of such discussion and
consultations and in the light of the experience of the Department of
Labor, it
has been found necessary to make adjustments in the text of the Labor
Code to
correct significant flaws or to strengthen basic concepts, and in
general, to
fully align the Labor Code to its broad objectives consistent with the
overriding priority of development;
NOW,
THEREFORE, I, FERDINAND E. MARCOS,
President of the Philippines, by virtue of the powers vested in me by
the Constitution,
do hereby decree and order:
SECTION
1. Article 6 of the Labor Code is
hereby amended to read as follows:
“Art.
6. Applicability.
— All rights and
benefits granted to workers under this Code shall, except as may
otherwise be
provided herein, apply alike to all workers, whether agricultural, or
non-agricultural.”
SECTION
2. Article 12 of the same Code is
hereby amended to read as follows:
“Art.
12. Statement of Objectives.
— It is the policy
of the State:
a) To promote and maintain a state of
full
employment through improved manpower training allocation and
utilization;
(b) To protect every citizen desiring to work
locally or overseas by securing for him the best possible terms and
conditions
of employment;
(c) To facilitate a free choice of available
employment by persons seeking work in conformity with the national
interest;
(d) To facilitate and regulate the movement of
workers in conformity with the national interest;
(e) To regulate the employment of aliens,
including the establishment of a registration and/or work permit
system;
(f) To strengthen the network of public
employment offices and undertake the phasing out of private
fee-charging
employment agencies; and
(g) To insure careful selection of Filipino
workers for overseas employment in order to protect the good name of
the
Philippines abroad.”
SECTION
3. Article 15 of the same Code is
hereby amended to read as follows:
“Art.
15. Power to phase out.
— The Department of
Labor shall phase out within four (4) years from the effectivity of
this Code
the operation of all private fee-charging employment agencies,
including those
engaged in the overseas recruitment and placement of individuals for
personal
services or for the crew of a vessel.
No
new application for license to operate a
private fee-charging domestic employment agency shall be entertained
upon the
effectivity of the Code. All existing licenses issued in favor of
private
fee-charging domestic employment agencies shall be valid only up to the
date of
their expiration.
The
public employment offices of the
Department of Labor shall absorb the functions and activities of
private
fee-charging domestic employment agencies.
Upon
the completion of such phaseout, no
person or entity shall directly or indirectly engage, for profit or any
pecuniary or material advantage, in any recruitment or placement
activity. No
fee-charging employment agencies or placement services undertaken by
schools or
by civic or charitable organizations or by employers for their own use
may
continue under such rules and regulations as may be promulgated by the
Secretary of Labor.”
SECTION
4. Article 17 of the same Code is
hereby amended to read as follows:
“Art.
17. Compositions of Overseas
Employment
Board.
— The Board shall be composed of:
The
Secretary of Labor as Chairman and a
representative each of the Department of Education and Culture, the
Department
of Foreign Affairs, the Central Bank and the National Manpower and
Youth
Council, as members.
The
Board shall be assisted by a Secretariat
headed by an Executive Director. The Executive Director shall be
appointed by
the President of the Philippines upon recommendation of the Secretary
of Labor
who shall appoint the members of the Secretariat.
The
Executive Director shall be a Filipino
citizen with sufficient experience in manpower administration,
including
overseas employment activities.
The
Executive Director shall receive an
annual salary of not less than P40,000.00.
The
Auditor General shall appoint his
representative to the Board to audit its accounts in accordance with
auditing
laws pertinent rules and regulations.
SECTION
5. A new article, to be numbered as
Article 20 is hereby inserted after Article 19 of the same Code to read
as
follows:
“Art.
20. Registration of immigrant workers.
— Any individual
desiring to emigrate to any foreign country for the purpose of taking
up
employment thereat shall, before filing applications with the embassy
of the
country of intended destination, register with the Overseas Employment
Development Board. The registration of such immigrant shall include
among
others, the following information: name, address, civil status,
profession,
occupation, country of destination. Those who have pending applications
at the
time of the effectivity of the Code shall likewise register with the
Overseas
Employment Development Board before they may be issued the
corresponding
passports.”
SECTION
6. Article 20 of the same Code is
hereby renumbered to read as follows:
“Art.
21. National Seaman Board, Creation of
—
There is hereby created of a body to be known as the National Seamen
Board.
It
shall:
(a) establish and maintain a comprehensive seamen
training program.
(b) provide free placement services for seamen.
(c) obtain the best possible terms and
conditions
of employment for seamen.
(d) secure full implementation of the employment
contracts of seamen.
(e) maintain a complete registry of all
seamen.
(f) regulate the activities of agents or
representatives of shipping companies in the hiring of seamen for
overseas
employment.”
SECTION
7. Article 21 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
22. Composition of National Seamen Board.
— The Board shall
be attached to the Department of Labor for policy and program
coordination and
shall be composed of: the Secretary of Labor as Chairman, the Commander
of the
Philippine Coast Guard, and a representative each of the Department of
Foreign
Affairs, Maritime Industry Authority, Central Bank, a national
seafarers
organization and a national shipping association, as members.
The
Board shall be assisted by Secretariat
headed by an Executive Director. The Executive Director shall be
appointed by
the President of the Philippines upon recommendation of the Secretary
of Labor
who shall appoint the members of the Secretariat.
The
Executive Director shall be a Filipino
citizen with sufficient experience in manpower administration,
including
overseas employment activities.
The
Executive Director shall receive an
annual salary of not less than P40,000.00.
The
Auditor General shall appoint his
representative to the Board to audit its accounts in accordance with
auditing
laws and pertinent rules and regulations.”
SECTION
8. Article 22 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
23. Boards authorized to collect and
utilize fees.
— The Overseas Employment Development Board and the National
Seamen Board shall have the power to imposed and collect fees from
workers and
employers concerned or both, which shall be deposited to the respective
accounts of said Board and be used by them exclusively to promote their
objectives.”
SECTION
9. Article 23 of the same Code is
hereby renumbered as Article 24.
SECTION
10. Article 24 of the same Code is
hereby renumbered to read as follows:
“Art.
25. Authority or license to recruit.
— No individual or
entity may engage in the business of a private fee-charging employment
agency
without first obtaining a license from the Department of Labor.
No
individual or entity may operate a
private non-fee charging employment agency without first obtaining an
authority
from the Department of Labor.
The
Secretary of Labor shall issue rules and
regulations establishing the requirements and the procedures for the
issuance
of a license or authority.
Every
existing authority or license to hire
or recruit workers on the date of effectivity of this Code shall remain
valid
for the duration indicated therein unless sooner cancelled, revoked or
suspended for cause by the Secretary of Labor. However, said authority
or
license to hire or recruit may be renewed provided that the holders
thereof
shall comply with all applicable provisions of this Code and its
implementing
rules and regulations.”
SECTION
11. Article 25 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
26. Travel agencies prohibited to
recruit.
— Travel agencies and sales agencies of airline companies are
prohibited from engaging in the business of recruitment and placement
of
workers for overseas employment whether for profit or not.”
SECTION
12. The following Articles of the
same
Code are hereby renumbered as follows:
“Article
26, as Article 27
Article
27, as Article 28
Article
28, as Article 29
Article
29, as Article 30
Article
30, as Article 31
Article
31, as Article 32
Article
32, as Article 33
Article
33, as Article 34
Article
34, as Article 35
Article
35, as Article 36
Article
36, as Article 37.”
SECTION
13. Article 37 of the same Code is
hereby renumbered to read as follows:
“Art.
38. Jurisdiction.
— (a) Any violation
of the provisions of this Title or its implementing rules and
regulations as
promulgated by the Secretary of Labor shall within the concurrent
jurisdiction
of the Military Tribunals and the regular courts. The court that first
assumes
jurisdiction shall exclude the other.
(b) All
matters or questions involving employer-employee relations, including
money
claims arising from this Title, shall be under the original and
exclusive
jurisdiction of the National Labor Relations Commission, except cases
involving
Filipino seamen employed overseas, which shall fall under the exclusive
jurisdiction of the National Seamen Board, whose decision shall be
final and
inappealable. The Board shall promulgate appropriate rules and
regulations
governing the processing and settlement of such cases.
SECTION
14. Article 38 of the same Code is
hereby renumbered and settlement of such cases:
“Art.
39. Penalty.
— Persons who are
licensees or holders of authority under the Provisions of this Title
found
violating or causing another to violate any provisions of this Title or
of the
rules and regulations issues thereunder shall, upon conviction thereof,
suffer
the penalty of imprisonment of not less than two (2) years nor more
than five
(5) years or a fine of not less than P2,000.00 nor more than
P30,000.00, or
both such imprisonment or fine, at the discretion of the court; while
persons
who are not licensees or holders of authority under this Title shall
upon
conviction thereof suffer the penalty of imprisonment of not less than
four (4)
years but not more than eight (8) years or a fine of not less than
P5,000.00,
nor more than P35,000.00, or both such fine and imprisonment, at the
discretion
of the court; Provided, however, That if the offender is a corporation,
partnership, association or entity, the penalty shall be imposed upon
the
guilty officer or officers of the corporation, partnership, association
or
entity; and if such guilty officer is an alien, in addition to the
penalties
herein prescribed, he shall be deported without further proceedings.
In
every case, conviction shall cause and
carry the forfeiture of the bond — cash as well as surety — in favor of
the
Overseas Employment Development Board or the National Seamen Board, as
the case
may be, both of which are authorized to use the same to promote
exclusively
their objectives, and also the automatic revocation of the license or
authority
and all the permits and privileges granted to such person or entity
under this
Title.”
SECTION
15. The following articles of the same
Code are hereby renumbered as follows:
“Article
39, as Article 40
Article
40, as Article 41
Article
41, as Article 42
Article
42, as Article 43
Article
43, as Article 44
Article
44, as Article 45
Article
45, as Article 46
Article
46, as Article 47
Article
47, as Article 48
Article
48, as Article 49
Article
49, as Article 50
Article
50, as Article 51
Article
51, as Article 52.”
SECTION
16. Article 52 of the same Code is
hereby renumbered as Article 53 and the first paragraph thereof is
hereby
amended to read as follows:
“Art.
53. Council Secretariat.
— To carry out the
objectives of this Title, the Council shall have the Secretariat headed
by an
Executive Director who shall be assisted by one Deputy Executive
Director both
of whom shall be career administrators appointed by the President of
the
Philippines on recommendation of the Secretary of Labor. The
Secretariat shall
under the administrative supervision of the Secretary of Labor and
shall have
an Office of Manpower Planning and Development, a National Manpower
Skills
Center, regional development centers, and such other offices as may be
necessary.”
SECTION
17. The following articles of the same
Code are hereby renumbered as follows:
“Article
53, as Article 54
Article
54, as Article 55
Article
55, as Article 56
Article
56, as Article 57
Article
57, as Article 58
Article
58, as Article 59
Article
59, as Article 60
Article
60, as Article 61
Article
61, as Article 62
Article
62, as Article 63
Article
63, as Article 64
Article
64, as Article 65
Article
65, as Article 66
Article
66, as Article 67
Article
67, as Article 68
Article
68, as Article 69
Article
69, as Article 70
Article
70, as Article 71
Article
71, as Article 72
Article
72, as Article 73
Article
73, as Article 74
Article
74, as Article 75
Article
75, as Article 76
Article
76, as Article 77
Article
77, as Article 78
Article
78, as Article 79
Article
79, as Article 80
Article
80, as Article 81”
SECTION
18. Article 81 of the same Code is
hereby repealed and deleted from the said Code.
SECTION
19. Article 83 of the same Code is
hereby amended to read as follows:
“Art.
83. Normal hours of work.
— The normal hours
of work of any employee shall not exceed eight in a day.
Health
personnel shall hold regular officer
hours for eight hours a day, for five days a week, or a total of forty
hours a
week, exclusive of time for time of lunch, if their services are
rendered in
cities and municipalities with a population of one million or more in
hospitals
and clinics with a bed capacity of at least one hundred except where
the
exigencies of the service require that such personnel work for
forty-eight
hours or six days, in which case they shall be entitled to an
additional
compensation of at least 25% of their regular wage for work on the
sixth day.
For purposes of this Article, “health personnel” shall include
government and
private resident physicians, nurses, nutritionists, dieticians,
pharmacists,
social workers, laboratory technicians, para-medical technicians,
psychologists, midwives, attendants and all other hospital or clinic
personnel.
SECTION
20. Article 91 of the same Code is
hereby amended to read as follows:
“Art.
91. Right to weekly rest day.
— It shall be the
duty of every employer, whether operating for profit or not, to provide
each of
his employees a rest period of not less than twenty-four consecutive
hours for
every seven consecutive days.”
SECTION
21. Article 97 of the same Code is
hereby amended to read as follows:
“Art.
97. Statutory minimum wages.
— The minimum wage
rates for agricultural and non-agricultural employees shall be those
prescribed
by law in force on the date of this Code takes effect. However, the
Secretary
of Labor may, to the extent necessary to promote employment in severely
depressed areas, authorized the payment of sub-minimum wage rates, but
no case
lower than fifty (50) per cent of the applicable minimum by enterprises
that
may be established in such areas to provide employment opportunities to
the
residents therein, subject to such terms and conditions as he may
prescribe to
insure the protection and welfare of the workers.”
SECTION
22. Article 104 of the same Code is
hereby amended to read as follows:
“Art.
104. Contractor or sub-contractor.
— Whenever an
employer enters into a contract with another person for the performance
of the
former’s work, the employees of the contractor and of the latter’s
sub-contractor, if any, shall be paid in accordance with the provisions
of this
Code.
In
the event that the contractor or
sub-contractor fails to pay the wages of his employees in accordance
with this
Code, the employer shall be jointly and severally liable with his
contractor or
sub-contractor to such employees to the extent of the work performed
under the
contract, in the same manner and extent that he is liable to employees
directly
employed by him.
The
Secretary of Labor may, by appropriate
regulations, restrict or prohibit the contracting out of labor to
protect the
rights of workers established under this Code. In so prohibiting or
restricting, he may make appropriate distinctions between labor only
contracting as well as differentiations within this types of
contracting, and
determine who among the parties involved shall be considered the
employer for
the purposes of this Code, to prevent any violation or circumvention of
any
provision of this Code.
There
is “labor-only” contracting where the
person supplying workers to an employer does not have substantial
capital or
investment in the form of tools, equipment, machineries, work premises,
among
others, and the workers recruited and placed by such person are
performing
activities which are directly related to the principal business of such
employer. In such cases, the person or intermediary shall be considered
merely
as an agent of the employer who shall be responsible to the workers in
the same
manner and extent as if the latter were directly employed by him.”
SECTION
23. Article 111 of the same Code is
hereby amended to read as follows:
“Art.
111. Wage Deduction.
— No employer, in
his own behalf of any person, shall make any deduction from the wages
of his
employees except:
(a) In cases where the worker is insured with his
consent by the employer and the deduction is to recompense the employer
for the
amount paid by him as premium on the insurance;
(b) For union dues, in cases where the right of
the worker of his union to check off has been recognized by the
employer or
authorized in writing by the individual worker concerned; and
(c) In cases where the employer is
authorized by
law or regulations issued by the Secretary of Labor.”
SECTION
24. Article 127 of the same Code is
hereby amended to read as follows:
“Art.
127. Recovery of wages.
— Upon application
of any interested party, any regional office of the Department of Labor
may
certify to the National Labor Relations Commission established under
this Code
any matter involving the recovery of wages and other benefits owing to
an
employee under this Code, with legal interest. Any sum thus recovered
on behalf
of an employee pursuant to this Article shall be held in a special
deposit
account by and shall be paid, on order of the Secretary of Labor,
directly to
the employee concerned. Any such item not paid to the employee because
he
cannot be located within a period of two (2) years shall be held as a
special
fund of the Department of Labor to be used exclusively in the
administration
and enforcement of labor laws.”
SECTION
25. Article 139 of the same Code is
hereby amended to read as follows:
“Art.
139. Coverage.
— This Chapter
shall apply to all persons rendering services in households for
compensation.
“Domestic
or household service” shall mean
service in the employer’s home which is usually necessary or desirable
for the
maintenance and enjoyment thereof and includes ministering to the
personal
comfort and convenience of the members of the employer’s household,
including
services of family drivers.”
SECTION
26. Article 155 of the same Code is
hereby amended to read as follows:
“Art.
155. Emergency medical and dental
services.
— It shall be the duty of every employer to furnish his
employees in any locality with free medical and dental attendance and
facilities
consisting of:
(a) The services of a full-time registered nurse
when the number of employees exceeds fifty (50) but nor more than two
hundred
except when the employer does not maintain hazardous work places, in
which case
the services of a graduate first-aider shall be provided for the
protection of
the workers, where no registered nurse is available. The Secretary of
Labor
shall provide by appropriate regulations the services that shall be
required
where the number of employees does not exceed fifty and shall determine
by
appropriate order hazardous work places for purposes of this Article;
(b) The services of a full-time registered nurse,
a part-time physician and dentist, and an emergency clinic, when the
number of
employees exceeds two hundred but not more than three hundred; and
(c) The services of a full-time physician,
dentist and a full-time registered nurse as well as a dental clinic,
and an
infirmary or emergency hospital with one bed capacity for every one
hundred
employees, when the number of employees exceeds three hundred.
In
cases of
hazardous work places, no employer shall engage the services of a
physician or
dentist who cannot stay in the premises of the establishment for at
least two
hours, in the case of those engaged on part-time basis, and not less
than eight
hours in the case of those employed on full-time basis. Where the
undertaking
is non-hazardous in nature, the physician and the dentist may be
engaged or
retained basis, subject to such regulations as the Secretary of Labor
may
prescribe to insure immediate availability of medical and dental
treatment and
attendance in case of emergency.”
SECTION
27. Article 163 of the same Code is
hereby amended to read as follows:
“Art.
163. Administration of safety and
health laws.
— (a) The Department of Labor shall be solely responsible for
the administration and enforcement of occupational safety and health
laws,
regulations and standards in all establishments and work places
wherever they
may be located; however, chartered cities may be allowed to conduct
industrial
safety inspections of establishments within their respective
jurisdiction where
they have adequate facilities and competent personnel for the purpose
as
determined by the Department of Labor and subject to national standards
established by the latter.
(b) The
Secretary of Labor may, through appropriate regulations, collect
reasonable
fees for the inspection of steam boilers, pressure vessels and pipings
and
electrical installations, the test and approval for safe use of
materials,
equipment and other safety devices, and the approval of plans for such
materials, equipment and devices. The fee so collected shall be
deposited in
the national treasury to the credit of the occupational safety and
health fund
and shall be expended exclusively for the administration and
enforcement of
safety and other labor laws administered by the Department of Labor.”
SECTION
28. A new provision is hereby
substituted in lieu of the original provision of Article 258 of the
same Code
to read as follows:
“Art.
258. Right to holiday pay.
—
(a) Every worker shall be paid his regular daily
wage during regular holidays, except in retail and service
establishments
regularly employing less than 10 workers.
(b) The term “holiday” as used in this Chapter,
shall include: New Year’s Day, Maundy Thursday, Good Friday, the ninth
of
April, the first of May, the twelfth of June, the fourth of July, the
thirtieth
of November, the twenty-fifth and thirtieth of December and the day
designated
by law for holding a general election.
(c) When employer may require work on
holidays. —
The employer may require an employee to work on a holiday but such
employee
shall be paid a compensation equivalent to twice his regular rate.
SECTION
29. Article 258 of the same Code is
hereby renumbered as Article 259.
SECTION
30. Article 259 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
260. Statement of Objectives.
— It is the policy
of the State:
(a) To promote free collective bargaining,
including voluntary arbitration, as a mode of settling labor or
industrial
disputes;
(b) To promote free trade unionism as an agent of
democracy, social justice and development;
(c) To rationalize and restructure the labor
movement in order to eradicate inter-union and intra-union conflicts;
(d) To promote the enlightenment of workers
concerning their rights and obligations as union members and as
employees;
(e) To provide an adequate administrative
machinery for the expeditious settlements of labor or industrial
disputes; and
(f) To ensure a stable but dynamic and just
industrial peace.”
SECTION
31. Article 260 of the same Code is
hereby renumbered as Article 261 and the following paragraphs thereof
are
hereby amended to read as follows:
“Art.
261. Definitions. —
(e) “Labor organization” means any union or
association of employees which exist in whole or in part for the
purpose of
collective bargaining or of dealing with the employers concerning terms
and
conditions of employment.
(g) “Company union” means any labor organization
whose formation, function or administration has been assisted by any
act
defined as unfair labor practice by this Code.
(i) “Unfair labor practice” means any unfair
labor practice as expressly defined by this Code.
(j) “Labor dispute” includes any controversy
or
matter concerning terms and conditions of employment or the
associations or
representation of persons in negotiating, fixing, maintaining, changing
or
arranging the terms and conditions of employment regardless of whether
or not
the disputants stand in the proximate relation of employers and
employees.
(l) “Strike” means any temporary stoppage of
work
by concerted action of employees as a result of an industrial or labor
dispute.
(m)“Lockout” means the temporary refusal of an
employer to furnish work as a result of an industrial or labor dispute.
SECTION
32. A new paragraph is hereby added
as
the last paragraph of Article 261 as renumbered, to read as follows:
(o) “Industry indispensable to the national
interest” means needful or essential to the vital functions of the
state where
the dispute involves public hazard requiring swift governmental
intervention or
action and not merely public inconvenience, whether there is an
emergency or
not.”
SECTION
33. Article 261 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
262.
Creation of National Labor
Relations Commissions.
— A National Labor Relations Commission is hereby
established in the Department of Labor. It shall be under the
administrative
supervision of the Secretary of Labor and shall be composed of a
chairman and
two members representing the public, two members representing the
workers, and
two members representing the employers.
The
National Labor Relations Commission
shall sit in two divisions composed of one member each representing the
public,
workers and employers, with the public representative acting as
division
chairman, and, subject to the approval of the Secretary of Labor,
determine
through appropriate regulations the cases that the Commission shall
decide en
banc and those that may be decided by a single division; provided, that
the
decision of a division shall have the force and effect of a decision of
the
Commission.”
SECTION
34. Article 263 of the same Code is
hereby renumbered and amended to read as follows:
“Art
264. Appointment and qualifications.
— The Chairman and
members of the Commission shall have at least five (5) years of
experience in
handling labor management relations and the Labor Arbiters shall have
at least
two years experience in the same field. In addition, the Chairman and
two
members representing the public shall be members of the bar.
The
members representing the employers and
the members representing the workers shall be chosen from among the
nominees of
workers organizations and employers organization respectively.
The
Chairman and six members of the
Commission shall be appointed by the President and shall hold office
for a
period of six (6) years without prejudice to reappointment. The Labor
Arbiters
should likewise be appointed by the President and shall be subject to
Civil
Service Law and rules and regulations.
The
Secretary of Labor shall appoint the
staff and personnel of the Commission and the regional branches as the
needs of
the service may require subject to Civil Service Law and rules and
regulations.
SECTION
35. Article 264 of the same Code is
hereby renumbered and amended as follows:
“Art.
265. Salaries.
— The Chairman
shall receive an annual salary of not less than forty thousand
(P40,000.00)
pesos. Each of the members shall receive an annual salary of not less
than
thirty-six thousand (P36,000.00) pesos and each of the Labor Arbiters
shall
receive an annual salary of not less than twenty-four thousand
(P24,000.00)
pesos.”
SECTION
36. Article 265 of the same Code is
hereby renumbered and amended as follows:
“Art.
266.
Jurisdiction of the
Commission.
— The Commission shall have exclusive appellate jurisdiction
over all cases decided by the Labor Arbiters and compulsory arbitrators.
The
Labor Arbiters shall have exclusive
jurisdiction to hear and decide the following cases involving all
workers
whether agricultural or non-agricultural:
(a) Unfair labor practice cases;
(b) Unresolved issues in collective bargaining,
including wages, hours of work and other terms and conditions of
employment
which are usually settled through collective bargaining duly certified
by the
regional offices of the Department of Labor in accordance with the
provisions
of this Code;
(c) All money claims of workers, involving
non-payment or underpayment of wages, overtime compensation, separation
pay,
maternity leave and other money claims arising from employee-employer
relations; except claims arising for workmen’s compensation, social
security
and medicare benefits;
(d) Violations of labor standard laws;
(e) Cases involving household services; and
(f) All other cases or matters arising from
employer-employee relations, unless expressly excluded by this Book.”
SECTION
37. Article 266 of the Labor Code is
hereby renumbered as Article 267 and paragraph (d) thereof is hereby
amended to
read as follows;
“Art.
267.Powers of the Commission. —
(d) To hold any person in contempt, directly or
indirectly and impose appropriate penalties therefor.
A
person guilty of
misbehavior in the presence of or so near the Chairman or any member of
the
Commission or any Labor Arbiter as to obstruct or interrupt the
proceedings
before the same, including disrespect toward said officials, offensive
personalities toward others, or refusal to be sworn or to answer as a
witness
or subscribe an affidavit or deposition when lawfully required to do
so, may be
summarily adjudged in direct contempt by said officials and punished by
fine
not exceeding two hundred pesos or imprisonment not exceeding five (5)
days, or
both if it be the Commission, or a member thereof, or by fine not
exceeding ten
pesos or imprisonment not exceeding one (1) day, or both if it be a
Labor
Arbiter.
The
persons adjudged
in direct contempt by a Labor Arbiter may appeal to the Commission and
the
execution of the judgment shall be suspended pending the resolution of
the
appeal upon the filing of such person of a bond on condition that he
will abide
by and perform the judgment of the Commission should the appeal be
decided
against him. Judgment of the Commission on direct contempt is
immediately
executory and non-appealable.
Indirect
contempt
shall be dealt with by the Commission or Labor Arbiter in the manner
prescribed
under Rule 71 of the Revised Rules of the Court.
SECTION
38. A new paragraph is hereby added
as
the last paragraph of Article 267 as renumbered to read as follows:
(e) To enjoin any or all acts involving or
arising from any case pending before it which, if not restrained
forthwith, may
grave or irreparable damage to any of the parties to the case or
seriously
affect social or economic stability.
SECTION
39. Article 267 of the same Code is
hereby renumbered as Article 268.
SECTION
40. Article 269 of the same Code is
hereby amended to read as follows:
“Art.
269. Compulsory arbitrators.
— The Commission or
any labor arbiter shall have the power to seek the assistance of other
government officials and qualified private citizens to act as
compulsory
arbitrators on cases referred to them and to fix and assess the fees of
such
compulsory arbitrators, taking into account the nature of the case, the
time
consumed in hearing of the case, the professional standing of the
arbitrators,
the financial capacity of the parties, and the fees provided in the
rules of
court.”
SECTION
41. Chapter III is hereby added
under
Title II of Book V of the same Code.
SECTION
42. Article 302 of the same Code is
hereby transferred to Chapter III as added under Section 37 hereof and
renumbered and amended to read as follows:
“Art.
272. Appeal.
— Decisions,
awards, or orders of the Labor Arbiters or compulsory arbitrators are
final and
executory unless appealed to the Commission by any or both of the
parties
within ten (10) days from receipt of such awards, orders or decisions.
Such
appeal may be entertained only on any of the following grounds:
(a) If there is prima-facie evidence of abuse of
discretion on the Labor Arbiter or Compulsory Arbitrator;
(b) If the decision, order or award was secured
through fraud or coercion, including graft and corruption;
(c) If made purely on question of law; and
(d) If serious errors in the findings of facts are
raised which would cause grave or irreparable damage or injury to the
appellant.
To
discourage
frivolous or dilatory appeals, the Commission or the Labor Arbiters
shall
impose reasonable penalty, including fines or censure, upon the erring
parties.
In
all cases, the
appellant shall furnish a copy of the memorandum of appeal to the other
party
who shall file an answer not later than ten (10) days from receipt
thereof.
The
Commission shall
decide all cases within twenty (20) working days from receipt of the
answer of
the appellee.
The
decision of the Commission shall be
final and unappealable, except in the following cases:
(a) by certiorari to the Supreme Court on question
of law; and
(b) where the case involves an industry
indispensable to the national interest, in which case it may be
appealed to the
President of the Philippines upon recommendation of the Secretary of
Labor
within ten (10) days from receipt of such decision by the appealing
party.
SECTION
43. Article 268 of the same Code is
hereby transferred to Chapter III as added under Section 37 hereof and
renumbered as Article 273.
SECTION
44. Article 316 of the same Code is
hereby transferred to Chapter III as added under Section 37 hereof and
renumbered
as Article 274.
SECTION
45. Article 272 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
275. Bureau of Labor Relations.
— The Bureau of
Labor Relations and the labor relations divisions in the regional
offices of
the Department of Labor shall have original and exclusive authority to
act, at
their own initiative or upon request of either or both parties, on all
inter-union and intra-union conflicts, and all disputes, grievances or
problems
arising from or affecting labor-management relations in all workplaces
whether
agricultural or non-agricultural, except those arising from the
implementation
or interpretation of collective bargaining agreement which shall be the
subject
of grievance procedure and/or voluntary arbitration.
The
Bureau of shall have fifteen working
days to act on all labor cases, subject to extension by agreement of
the
parties, after which the bureau shall certify the cases to the
appropriate
Labor Arbiters. The 15-working day deadline, however, shall not apply
to cases
involving deadlocks in collective bargaining which the Bureau shall
certify to
the appropriate Labor Arbiters only after all possibilities of
voluntary
settlement shall have been tried.”
SECTION
46. The following Articles of the
same
Code are hereby renumbered as follows:
“Article
273, as Article 276
Article
274, as Article 277
Article
275, as Article 278
Article
276, as Article 279
Article
277, as Article 280
Article
278, as Article 281
Article
279, as Article 282
Article
280, as Article 283
Article
281, as Article 284
Article
282, as Article 285
Article
283, as Article 286
Article
284, as Article 287
Article
285, as Article 288
Article
286, as Article 289
Article
287, as Article 290”
SECTION
47. Article 288 of the same Code is
hereby renumbered as Article 291 and paragraph (p) thereof is hereby
amended to
read as follows:
“Art.
291. Rights and conditions of
membership in a labor organization.
— The following are the rights and
conditions of membership in labor organization:
(p) It shall be the duty of any labor organization
and its officers to inform its members on the provisions of its
constitution
and by-laws, collective bargaining agreement, the prevailing labor
relations
system and all their rights and obligations under existing labor laws.
For
this purpose,
registered labor organizations may assess reasonable dues to finance
labor
relations seminars and other labor education activities.
Any
violation of the
above-rights and conditions of membership shall be a ground for
cancellation of
union registration or expulsion of an officer from office, whichever is
appropriate. At least 30 per cent of all the members of a union or any
member
or members specifically concerned by report such violation to the
Bureau. The
Bureau shall have the power to hear and decide any reported violation
to meet
the appropriate penalty.”
SECTION
48. Article 289 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
292. Rights of legitimate labor
organizations.
— A legitimate labor organization shall have the right:
(a) To act as the representative of its members
for the purpose of collective bargaining;
(b) To be certified as the exclusive
representative of all the employees in an appropriate collective
bargaining
unit for purposes of collective bargaining;
(c) To own property, real or personal, for
the
use and benefit of the labor organization and its members;
(d) To sue and be sued in its registered name; and
(e) To undertake all other activities
designed to
benefit the organization and its members, including cooperative,
housing
welfare and other projects not contrary to law.
The
income and
properties of legitimate labor organizations shall be free from taxes,
duties
and other assessments, including gifts or donations they may receive
from
fraternal and similar organizations, local or foreign.”
SECTION
49. Article 290. of the same Code is
hereby renumbered and amended to read as follows:
“Art.
293.
Coverage and employee’s
right to self-organization.
— All persons employed in commercial, industrial and
agricultural enterprises, including religious, medical or educational
institutions operating for profit, shall have the right to
self-organization
and to form, join or assist labor organizations for the purposes of
collective
bargaining.
All
religious, charitable, medical or
educational institutions not operating for profit are exempt from the
coverage
of this Book. However, this exemption shall not apply to religious,
charitable,
medical or educational institutions which, on the date of effectivity
of this
Code, have existing collective bargaining agreements or duly recognized
labor
organizations of their employees. Moreover, nothing herein shall
preclude any
employer from voluntarily recognizing any labor organization of its
employees
for the purpose of collective bargaining.”
SECTION
50. Article 291 of the same Code is hereby
renumbered as Article 294.
SECTION
51. Article 292 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
295. Ineligibility of managerial
employees to join any labor organization.
— Managerial employees are not
eligible to join, assist or form any labor organization.”
SECTION
52. Article 293 of the same Code is
hereby renumbered as Article 296.
SECTION
53. Article 294 of the same Code is
hereby renumbered and paragraph (e) thereof is hereby amended to read
as
follows:
“Art.
297. Unfair labor practices of
employers.
— It shall be unfair labor practice for an employer:
(e) To discriminate in regard to wages,
hours of
work, and other terms and conditions of employment in order to
encourage or
discourage membership in any labor organization. Nothing in this Code
or in any
other law shall stop the parties from requiring membership in a
recognized
collective bargaining agent as a condition for employment, except those
employees who are already members of another union at the time of the
signing
of the collective bargaining agreement. Employees of 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 the 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 291, paragraph
(o) of
this Code shall not apply to the non-members of the recognized
collective
bargaining agent;
SECTION
54. The following Articles of the
same
Code are hereby renumbered as follows:
“Article
295, as Article 298
Article
296, as Article 299
Article
297, as Article 300
Article
298, as Article 301
Article
299, as Article 302
Article
300, as Article 303
Article
301, as Article 304”
SECTION
55. The following Articles are
hereby
renumbered as follows:
“Article
303, as Article 305
Article
304, as Article 306
Article
305, as Article 307
Article
306, as Article 308”
SECTION
56. Article 307 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
309. Appeal on certification election
orders.
— Any party to an election may appeal the order or results of the
election to
the Bureau on the ground that the rules and regulations or parts
thereof
established by the Secretary of Labor for the conduct of the election
have been
violated. Such appeal shall be decided within fifteen (15) working
days.”
SECTION
57. The following Articles are
hereby
renumbered as follows:
“Article
308, as Article 310 Article 309, as Article 311.”
SECTION
58. Article 310 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
312. Voluntary arbitration.
— Disputes,
grievances or matters not settled through the grievance procedure shall
be
referred to and decided or settled through the prescribed voluntary
arbitration
procedure in the collective bargaining agreement.
Every
collective bargaining agreement shall
designate in advance an arbitrator or panel of arbitrators or include a
provision making the selection of such arbitrator or panel of
arbitrators
definite and certain when the need arises. Such arbitrator or panel of
arbitrators shall have exclusive and original jurisdiction to settle or
decide
all disputes, grievances, or matters arising from the implementation or
interpretation of a collective bargaining agreement after going through
the
grievance procedure. The Labor Arbiter or the Bureau shall not
entertain such
disputes, grievances or matters.
Voluntary
arbitration awards or decisions
shall be final, inappealable and executory, However, voluntary
arbitration
awards decisions on money claims involving an amount exceeding
P100,000.00 or
40% of the paid-up capital of the respondent employer, whichever is
lower, may
be appealed to the National Labor Relations Commissions only on the
following
grounds:
(a) abuse
of discretion; and
(b) gross
incompetence.”
SECTION
59. The following Articles of the same
Code are renumbered as follows:
“Article
311, as Article 313
Article
312, as Article 314
Article
313, as Article 315
Article
314, as Article 316”
SECTION
60. Article 315 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
317. Miscellaneous provisions.
— (a) Pending the
restoration of the right to strike and the right to lockout, all strike
funds
are hereby transformed into labor research and education funds. The
collection
of strike contribution is hereby prohibited. However, all unions are
authorized
to collect reasonable contributions for their labor education and
research
funds.
(b) No
employer that has no collective agreement may shutdown his
establishment or
dismiss or terminate the service of regular employees with at least one
year of
service, except managerial employees as defined in this Book without
previous
written clearance from the Secretary of Labor.
The
Secretary of Labor shall by appropriate
regulations provide for the requirements and the procedure of shutting
down,
dismissing or terminating the service of the members of the collective
bargaining agent that has collective agreement with the employer.
(c) Any
employee whose length of service is more than six (6) months whether
employed
for a definite period or not, and regardless of whether the service is
continuous or broken shall be considered as a regular employee for the
purpose
of membership in any legitimate labor organization.”
SECTION
61. The following articles of the same
Code are hereby renumbered as follows:
“Article
317, as Article 318
Article
318, as Article 319
Article
319, as Article 320
Article
320, as Article 321
Article
321, as Article 322
Article
322, as Article 323
Article
323, as Article 324
Article
324, as Article 325
Article
325, as Article 326
Article
326, as Article 327”
SECTION
62. Article 327 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
328. Penalties.
— Except as
otherwise provided in this Code, any violation of the provisions of
this Code
declared to be unlawful or penal in nature or of the rules and
regulations
issued thereunder shall be punished with a fine of not less than P1,000
nor
more than P10,000 and/or imprisonment for the duration of the violation
or
non-compliance or until such time that rectification of the violation
has been
made, at the direction of the appropriate authority.”
SECTION
63. Article 328 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
329. Who are liable when committed by
other than natural person.
— If the offense is committed by a corporation, trust,
firm, partnership, association or any other entity, the penalty shall
be
imposed upon the guilty officer or officers of such corporation, trust,
firm,
partnership, association or entity.”
SECTION
64. Article 329 of the same Code is
hereby renumbered and amended to read as follows:
SECTION
65. Article 330 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
331. Money claims.
— All money claims and benefits arising from employer-employee
relations shall be filed within three (3) year from the time the cause
of
action accrued; otherwise they shall be forever barred.
All
money claims mentioned above as well as
workmen’s compensation claims accruing prior to the effectivity of this
Code
shall be filed with the appropriate entities established under this
Code within
one year from the date of such effectivity; otherwise they shall be
forever
barred. Such claims shall be processed and/or determined in accordance
with the
provisions of this Code and its implementing rules and regulations.
SECTION
66. Article 331 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
332. Institution of money claims.
— Money claims
specified in the immediately preceding Article shall be filed before
appropriate entity independently of the criminal action that may be
instituted
in the proper courts.
Pending
the final determination of the
merits of money claims filed with the appropriate entity, no civil
action
arising from the same cause of action shall be filed with any court.
This
provision shall not apply to employees compensation cases which shall
be
processed and determined strictly in accordance with the pertinent
provisions
of this Code.
SECTION
67. The following articles of the same
Code are renumbered as follows:
“Article
332, as Article 333
Article
333, as Article 334
Article
334, as Article 335
Article
335, as Article 336
Article
336, as Article 337
Article
337, as Article 338”
SECTION
68. Article 338 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
339. Disposition of pending cases.
— All cases pending
before the Court of Industrial Relations and the National Labor
Relations
Commission established under Presidential Decree No. 21 on the date of
effectivity of this Code shall be transferred to and processed by the
corresponding labor relations division of the regional labor office,
the Bureau
of Labor Relations, or the National Labor Relations Commission created
under
this Code having cognizance of the same in accordance with the
procedure laid
down herein and its implementing rules and regulations. Labor relations
pending
appeal with the Secretary of Labor or the Office of the President of
the
Philippines upon the date of effectivity of this Code shall remain
under their
respective jurisdiction and shall be decided in accordance with the
law, rules
and regulations in force at the time of appeal.
All
workmen’s compensation cases pending
before the Workmen’s Compensation Units in the regional Office of the
Department of Labor on the date of effectivity of this Code shall be
transferred and processed in accordance with the provisions of this
Code and
its implementing rules and regulations to the Employees’ Compensation
Commission and to the Social Security System or Government Service
Insurance
System respectively and as them case may be.”
SECTION
69. The following Articles of the
same
Code are hereby renumbered as follows:
“Article
339, as Article 340
Article
340, as Article 341”
SECTION
70. Article 341 of the same Code is
hereby renumbered and amended to read as follows:
“Art.
342. Repealing clause.
— All labor laws
not adopted as part of this Code either directly or by reference are
hereby
repealed. All provisions of existing laws, orders, decrees, rules and
regulations inconsistent herewith are likewise repealed.”
SECTION
71. This Decree shall take effect on
November 1, 1974.
Done
in the City of Manila, this 1st
day of November, in the Year of Our Lord, Nineteen Hundred Seventy-Four.
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