ChanRobles Virtual law Library
THE
LABOR CODE
OF THE
PHILIPPINES
PRESIDENTIAL DECREE NO. 442,
AS AMENDED
A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
BOOK THREE
CONDITIONS OF
EMPLOYMENT
Title I
WORKING CONDITIONS
AND REST PERIODS
Chapter I
HOURS OF WORK
ART. 82. Coverage. - The
provisions of this Title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees,
managerial employees, field personnel, members of the family of the employer
who are dependent on him for support, domestic helpers, persons in the personal
service of another, and workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations.
As
used herein, "managerial employees" refer to those whose
primary duty consists of the management of the establishment in which they are
employed or of a department or subdivision thereof, and to other officers or
members of the managerial staff.
"Field
personnel" shall refer to non-agricultural
employees who regularly perform their duties away from the principal place of
business or branch office of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty.
ART.
83. Normal hours of work. - The normal hours of work of any employee
shall not exceed eight (8) hours a day.
Health
personnel in cities and municipalities with a population of at least one
million (1,000,000) or in hospitals and clinics with a bed capacity of at least
one hundred (100) shall hold regular office hours for eight (8) hours a day,
for five (5) days a week, exclusive of time for meals, except where the
exigencies of the service require that such personnel work for six (6) days or
forty-eight (48) hours, in which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular wage for work on
the sixth day. For purposes of this Article, "health personnel"
shall include resident physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other hospital or clinic personnel.
chanroblesvirtuallawlibrary
ART.
84. Hours worked. - Hours worked shall include (a) all time during which
an employee is required to be on duty or to be at a prescribed workplace; and
(b) all time during which an employee is suffered or permitted to work.
Rest
periods of short duration during working hours shall be counted as hours
worked.
ART.
85. Meal periods. - Subject to such regulations as the Secretary of Labor may prescribe, it shall be the duty of every employer
to give his employees not less than sixty (60) minutes time-off for their
regular meals.
ART.
86. Night shift differential. - Every employee shall be paid a night
shift differential of not less than ten percent (10%) of his regular wage for
each hour of work performed between ten o’clock in the evening and six o’clock
in the morning.
ART.
87. Overtime work. - Work may be performed beyond eight (8) hours a day
provided that the employee is paid for the overtime work, an additional
compensation equivalent to his regular wage plus at least twenty-five percent
(25%) thereof. Work performed beyond eight hours on a holiday or rest day shall
be paid an additional compensation equivalent to the rate of the first eight
hours on a holiday or rest day plus at least thirty percent (30%) thereof.
ART.
88. Undertime not offset by overtime. -
Undertime work on any particular day shall not be
offset by overtime work on any other day. Permission given to the employee to
go on leave on some other day of the week shall not exempt the employer from
paying the additional compensation required in this Chapter.
ART.
89. Emergency overtime work. - Any employee may be required by the
employer to perform overtime work in any of the following cases:chan robles virtual law
library
(a)
When the country is at war or when any other national or local emergency has
been declared by the National Assembly or the Chief Executive;
(b)
When it is necessary to prevent loss of life or property or in case of imminent
danger to public safety due to an actual or impending emergency in the locality
caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or
other disaster or calamity;
(c)
When there is urgent work to be performed on machines, installations, or
equipment, in order to avoid serious loss or damage to the employer or some
other cause of similar nature;
(d)
When the work is necessary to prevent loss or damage to perishable goods; and
(e)
Where the completion or continuation of the work started before the eighth hour
is necessary to prevent serious obstruction or prejudice to the business or
operations of the employer.
Any
employee required to render overtime work under this Article shall be paid the
additional compensation required in this Chapter.
ART.
90. Computation of additional compensation. - For purposes of computing
overtime and other additional remuneration as required by this Chapter, the "regular
wage" of an employee shall include the cash wage only, without
deduction on account of facilities provided by the employer.
Chapter II
WEEKLY REST PERIODS
ART. 91. Right to weekly rest day.
- (a) 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 (24) consecutive hours after every six (6) consecutive normal work
days.
(b)
The employer shall determine and schedule the weekly rest day of his employees
subject to collective bargaining agreement and to such rules and regulations as
the Secretary of Labor and Employment may provide.
However, the employer shall respect the preference of employees as to their
weekly rest day when such preference is based on religious grounds.
ART.
92. When employer may require work on a rest day. - The employer may
require his employees to work on any day:
(a)
In case of actual or impending emergencies caused by serious accident, fire,
flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent
loss of life and property, or imminent danger to public safety;
(b)
In cases of urgent work to be performed on the machinery, equipment, or
installation, to avoid serious loss which the employer would otherwise suffer;
(c)
In the event of abnormal pressure of work due to special circumstances, where
the employer cannot ordinarily be expected to resort to other measures;
(d)
To prevent loss or damage to perishable goods;
(e)
Where the nature of the work requires continuous operations and the stoppage of
work may result in irreparable injury or loss to the employer; and
(f)
Under other circumstances analogous or similar to the foregoing as determined
by the Secretary of Labor and Employment.
ART.
93. Compensation for rest day, Sunday or holiday work. - (a) Where an
employee is made or permitted to work on his scheduled rest day, he shall be
paid an additional compensation of at least thirty percent (30%) of his regular
wage. An employee shall be entitled to such additional compensation for work
performed on Sunday only when it is his established rest day.chan robles virtual law
library
(b)
When the nature of the work of the employee is such that he has no regular
workdays and no regular rest days can be scheduled, he shall be paid an
additional compensation of at least thirty percent (30%) of his regular wage
for work performed on Sundays and holidays.
(c)
Work performed on any special holiday shall be paid an additional compensation
of at least thirty percent (30%) of the regular wage of the employee. Where
such holiday work falls on the employee’s scheduled rest day, he shall be
entitled to an additional compensation of at least fifty per cent (50%) of his
regular wage.
(d)
Where the collective bargaining agreement or other applicable employment
contract stipulates the payment of a higher premium pay than that prescribed
under this Article, the employer shall pay such higher rate.
Chapter III
HOLIDAYS, SERVICE
INCENTIVE LEAVES
AND SERVICE CHARGES
ART. 94. 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 ten
(10) workers;
(b)
The employer may require an employee to work on any holiday but such employee
shall be paid a compensation equivalent to twice his regular rate; and
(c)
As used in this Article, "holiday" includes: 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.
ART.
95. Right to service incentive leave. - (a) Every employee who has
rendered at least one year of service shall be entitled to a yearly service
incentive leave of five days with pay.
(b)
This provision shall not apply to those who are already enjoying the benefit
herein provided, those enjoying vacation leave with pay of at least five days
and those employed in establishments regularly employing less than ten
employees or in establishments exempted from granting this benefit by the
Secretary of Labor and Employment after considering
the viability or financial condition of such establishment. chanroblesvirtuallawlibrary
(c)
The grant of benefit in excess of that provided herein shall not be made a
subject of arbitration or any court or administrative action.
ART.
96. Service charges. - All service charges collected by hotels,
restaurants and similar establishments shall be distributed at the rate of
eighty-five percent (85%) for all covered employees and fifteen percent (15%)
for management. The share of the employees shall be equally distributed among
them. In case the service charge is abolished, the share of the covered
employees shall be considered integrated in their wages.
Title II
WAGES
Chapter I
PRELIMINARY MATTERS
ART. 97. Definitions. - As used in this Title:
(a) "Person" means an individual,
partnership, association, corporation, business trust, legal representatives,
or any organized group of persons.
(b)
"Employer" includes any person acting directly or indirectly
in the interest of an employer in relation to an employee and shall include the
government and all its branches, subdivisions and instrumentalities, all
government-owned or controlled corporations and institutions, as well as
non-profit private institutions, or organizations.
(c)
"Employee" includes any individual employed by an employer.
(d)
"Agriculture" includes farming in all its branches and, among
other things, includes cultivation and tillage of soil, dairying, the
production, cultivation, growing and harvesting of any agricultural and
horticultural commodities, the raising of livestock or poultry, and any
practices performed by a farmer on a farm as an incident to or in conjunction
with such farming operations, but does not include the manufacturing or
processing of sugar, coconuts, abaca, tobacco, pineapples or other farm
products.
(e)
"Employ" includes to suffer or permit
to work.
(f)
"Wage" paid to any employee shall mean the remuneration or
earnings, however designated, capable of being expressed in terms of money,
whether fixed or ascertained on a time, task, piece, or commission basis, or
other method of calculating the same, which is payable by an employer to an employee
under a written or unwritten contract of employment for work done or to be
done, or for services rendered or to be rendered and includes the fair and
reasonable value, as determined by the Secretary of Labor
and Employment, of board, lodging, or other facilities customarily furnished by
the employer to the employee. "Fair and reasonable value"
shall not include any profit to the employer, or to any person affiliated with
the employer.
ART.
98. Application of Title. - This Title shall not apply to farm tenancy
or leasehold, domestic service and persons working in their respective homes in
needle work or in any cottage industry duly registered in accordance with law.
Chapter II
MINIMUM WAGE RATES
ART. 99. Regional minimum wages.
- The minimum wage rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those prescribed by
the Regional Tripartite Wages and Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).
ART.
100. Prohibition against elimination or diminution of benefits. -
Nothing in this Book shall be construed to eliminate or in any way diminish
supplements, or other employee benefits being enjoyed at the time of
promulgation of this Code.chan robles
virtual law library
ART.
101. Payment by results. - (a) The Secretary of Labor
and Employment shall regulate the payment of wages by results, including pakyao, piecework, and other non-time work, in order
to ensure the payment of fair and reasonable wage rates, preferably through
time and motion studies or in consultation with representatives of workers’ and
employers’ organizations.
Chapter III
PAYMENT OF WAGES
ART. 102. Forms of payment. - No employer shall pay the wages of an employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender, even when expressly requested by the employee.
Payment
of wages by check or money order shall be allowed when such manner of payment
is customary on the date of effectivity of this Code,
or is necessary because of special circumstances as specified in appropriate
regulations to be issued by the Secretary of Labor
and Employment or as stipulated in a collective bargaining agreement.
ART.
103. Time of payment. - Wages shall be paid at least once every two (2)
weeks or twice a month at intervals not exceeding sixteen (16) days. If on
account of force majeure or circumstances beyond the employer’s control,
payment of wages on or within the time herein provided cannot be made, the
employer shall pay the wages immediately after such force majeure or
circumstances have ceased. No employer shall make payment with less frequency
than once a month.
The
payment of wages of employees engaged to perform a task which cannot be
completed in two (2) weeks shall be subject to the following conditions, in the
absence of a collective bargaining agreement or arbitration award:
(1)
That payments are made at intervals not exceeding sixteen (16) days, in
proportion to the amount of work completed;
(2)
That final settlement is made upon completion of the work.
ART.
104. Place of payment. - Payment of wages shall be made at or near the
place of undertaking, except as otherwise provided by such regulations as the
Secretary of Labor and Employment may prescribe under
conditions to ensure greater protection of wages. chanroblesvirtuallawlibrary
ART.
105. Direct payment of wages. - Wages shall be paid directly to the workers to whom they are due, except:
(a)
In cases of force majeure rendering such payment impossible or under
other special circumstances to be determined by the Secretary of Labor and Employment in appropriate regulations, in which
case, the worker may be paid through another person under written authority
given by the worker for the purpose; or
(b)
Where the worker has died, in which case, the employer may pay the wages of the
deceased worker to the heirs of the latter without the necessity of intestate
proceedings. The claimants, if they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and the fact that they are his
heirs, to the exclusion of all other persons. If any of the heirs is a minor,
the affidavit shall be executed on his behalf by his natural guardian or next-of-kin.
The affidavit shall be presented to the employer who shall make payment through
the Secretary of Labor and Employment or his
representative. The representative of the Secretary of Labor
and Employment shall act as referee in dividing the amount paid among the
heirs. The payment of wages under this Article shall absolve the employer of
any further liability with respect to the amount paid.
ART.
106. Contractor or subcontractor. - 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 subcontractor, if any, shall be
paid in accordance with the provisions of this Code.
In
the event that the contractor or subcontractor 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 subcontractor 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. chanroblesvirtuallawlibrary
The
Secretary of Labor and Employment 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 and job contracting as well as
differentiations within these types of contracting and determine who among the
parties involved shall be considered the employer for 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.
ART.
107. Indirect employer. - The provisions of the immediately preceding
article shall likewise apply to any person, partnership, association or
corporation which, not being an employer, contracts with an independent
contractor for the performance of any work, task, job or project.
ART.
108. Posting of bond. - An employer or indirect employer may require the
contractor or subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the bond will
answer for the wages due the employees should the contractor or subcontractor,
as the case may be, fail to pay the same.
ART.
109. Solidary liability. - The
provisions of existing laws to the contrary notwithstanding, every employer or
indirect employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code. For purposes of
determining the extent of their civil liability under this Chapter, they shall
be considered as direct employers.
ART.
110. Worker preference in case of bankruptcy. - In the event of
bankruptcy or liquidation of an employer’s business, his workers shall enjoy
first preference as regards their wages and other monetary claims, any
provisions of law to the contrary notwithstanding. Such unpaid wages and
monetary claims shall be paid in full before claims of the government and other
creditors may be paid. (As
amended by Section 1, Republic Act No. 6715, March 21, 1989).
ART.
111. Attorney’s fees. - (a) In cases of
unlawful withholding of wages, the culpable party may be assessed attorney’s
fees equivalent to ten percent of the amount of wages recovered.
(b)
It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of wages, attorney’s fees which
exceed ten percent of the amount of wages recovered.
Chapter IV
PROHIBITIONS
REGARDING WAGES
ART. 112. Non-interference in
disposal of wages. - No employer shall limit or otherwise interfere with
the freedom of any employee to dispose of his wages. He shall not in any manner
force, compel, or oblige his employees to purchase merchandise, commodities or
other property from any other person, or otherwise make use of any store or
services of such employer or any other person.
ART.
113. Wage deduction. - No employer, in his own behalf or in behalf of
any person, shall make any deduction from the wages of his employees, except: chanroblesvirtuallawlibrary
(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 or 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 and Employment.
ART.
114. Deposits for loss or damage. - No employer shall require his worker
to make deposits from which deductions shall be made for the reimbursement of
loss of or damage to tools, materials, or equipment supplied by the employer,
except when the employer is engaged in such trades, occupations or business
where the practice of making deductions or requiring deposits is a recognized
one, or is necessary or desirable as determined by the Secretary of Labor and Employment in appropriate rules and regulations.
ART.
115. Limitations. - No deduction from the deposits of an employee for
the actual amount of the loss or damage shall be made unless the employee has
been heard thereon, and his responsibility has been clearly shown.
ART.
116. Withholding of wages and kickbacks prohibited. - It shall be
unlawful for any person, directly or indirectly, to withhold any amount from
the wages of a worker or induce him to give up any part of his wages by force,
stealth, intimidation, threat or by any other means whatsoever without the
worker’s consent.
ART.
117. Deduction to ensure employment. - It shall be unlawful to make any
deduction from the wages of any employee for the benefit of the employer or his
representative or intermediary as consideration of a promise of employment or
retention in employment.
ART.
118. Retaliatory measures. - It shall be unlawful for an employer to
refuse to pay or reduce the wages and benefits, discharge or in any manner
discriminate against any employee who has filed any complaint or instituted any
proceeding under this Title or has testified or is about to testify in such
proceedings.
ART.
119. False reporting. - It shall be unlawful for any person to make any
statement, report, or record filed or kept pursuant to the provisions of this
Code knowing such statement, report or record to be false in any material
respect.
Chapter V
WAGE STUDIES, WAGE
AGREEMENTS
AND WAGE
DETERMINATION
ART. 120. Creation of National
Wages and Productivity Commission. - There is hereby created a National
Wages and Productivity Commission, hereinafter referred to as the Commission,
which shall be attached to the Department of Labor
and Employment (DOLE) for policy and program coordination. (As amended by Republic Act No. 6727,
June 9, 1989).
ART.
121. Powers and functions of the Commission. - The Commission shall have
the following powers and functions:
(a)
To act as the national consultative and advisory body to the President of the
Philippines and Congress on matters relating to wages, incomes and
productivity;
(b)
To formulate policies and guidelines on wages, incomes and productivity
improvement at the enterprise, industry and national levels;
(c)
To prescribe rules and guidelines for the determination of appropriate minimum
wage and productivity measures at the regional, provincial, or industry levels;
(d)
To review regional wage levels set by the Regional Tripartite Wages and
Productivity Boards to determine if these are in accordance with prescribed
guidelines and national development plans;
(e)
To undertake studies, researches and surveys necessary for the attainment of
its functions and objectives, and to collect and compile data and periodically
disseminate information on wages and productivity and other related
information, including, but not limited to, employment, cost-of-living, labor costs, investments and returns;
(f)
To review plans and programs of the Regional Tripartite Wages and Productivity
Boards to determine whether these are consistent with national development
plans;
(g)
To exercise technical and administrative supervision over the Regional
Tripartite Wages and Productivity Boards;chan robles virtual law
library
(h)
To call, from time to time, a national tripartite conference of representatives
of government, workers and employers for the consideration of measures to
promote wage rationalization and productivity; and
(i) To exercise such powers and functions as may be
necessary to implement this Act.
The
Commission shall be composed of the Secretary of Labor
and Employment as ex-officio chairman, the Director-General of the
National Economic and Development Authority (NEDA) as ex-officio
vice-chairman, and two (2) members each from workers’ and employers’ sectors
who shall be appointed by the President of the Philippines upon recommendation
of the Secretary of Labor and Employment to be made
on the basis of the list of nominees submitted by the workers’ and employers’
sectors, respectively, and who shall serve for a term of five (5) years. The
Executive Director of the Commission shall also be a member of the Commission.
The
Commission shall be assisted by a Secretariat to be headed by an Executive
Director and two (2) Deputy Directors, who shall be appointed by the President
of the Philippines, upon the recommendation of the Secretary of Labor and Employment.
The
Executive Director shall have the same rank, salary, benefits and other
emoluments as that of a Department Assistant Secretary, while the Deputy
Directors shall have the same rank, salary, benefits and other emoluments as
that of a Bureau Director. The members of the Commission representing labor and management shall have the same rank, emoluments,
allowances and other benefits as those prescribed by law for labor and management representatives in the Employees’
Compensation Commission. (As amended by
Republic Act No. 6727, June 9, 1989).
ART.
122. Creation of Regional Tripartite Wages and Productivity Boards. -
There is hereby created Regional Tripartite Wages and Productivity Boards,
hereinafter referred to as Regional Boards, in all regions, including
autonomous regions as may be established by law. The Commission shall determine
the offices/headquarters of the respective Regional Boards.
The
Regional Boards shall have the following powers and functions in their
respective territorial jurisdictions:
(a)
To develop plans, programs and projects relative to wages, incomes and
productivity improvement for their respective regions;
(b)
To determine and fix minimum wage rates applicable in their regions, provinces
or industries therein and to issue the corresponding wage orders, subject to
guidelines issued by the Commission;
(c)
To undertake studies, researches, and surveys necessary for the attainment of
their functions, objectives and programs, and to collect and compile data on
wages, incomes, productivity and other related information and periodically
disseminate the same;
(d)
To coordinate with the other Regional Boards as may be necessary to attain the
policy and intention of this Code;
(e)
To receive, process and act on applications for exemption from prescribed wage
rates as may be provided by law or any Wage Order; and
(f)
To exercise such other powers and functions as may be necessary to carry out
their mandate under this Code.
Implementation
of the plans, programs, and projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be through the respective
regional offices of the Department of Labor and
Employment within their territorial jurisdiction; Provided, however,
That the Regional Boards shall have technical supervision over the regional
office of the Department of Labor and Employment with
respect to the implementation of said plans, programs and projects.
Each
Regional Board shall be composed of the Regional Director of the Department of Labor and Employment as chairman, the Regional Directors of
the National Economic and Development Authority and the Department of Trade and
Industry as vice-chairmen and two (2) members each from workers’ and employers’
sectors who shall be appointed by the President of the Philippines, upon the
recommendation of the Secretary of Labor and
Employment, to be made on the basis of the list of nominees submitted by the
workers’ and employers’ sectors, respectively, and who shall serve for a term
of five (5) years.
Each
Regional Board to be headed by its chairman shall be assisted by a Secretariat.
(As amended by Republic Act No. 6727,
June 9, 1989).
ART.
123. Wage Order. - Whenever conditions in the region so warrant, the
Regional Board shall investigate and study all pertinent facts; and based on
the standards and criteria herein prescribed, shall proceed to determine
whether a Wage Order should be issued. Any such Wage Order shall take effect
after fifteen (15) days from its complete publication in at least one (1)
newspaper of general circulation in the region.
In
the performance of its wage-determining functions, the Regional Board shall
conduct public hearings/consultations, giving notices to employees’ and
employers’ groups, provincial, city and municipal officials and other
interested parties.
Any
party aggrieved by the Wage Order issued by the Regional Board may appeal such
order to the Commission within ten (10) calendar days from the publication of
such order. It shall be mandatory for the Commission to decide such appeal
within sixty (60) calendar days from the filing thereof.
The
filing of the appeal does not stay the order unless the person appealing such
order shall file with the Commission, an undertaking with a surety or sureties
satisfactory to the Commission for the payment to the employees affected by the
order of the corresponding increase, in the event such order is affirmed. (As amended by Republic Act No. 6727,
June 9, 1989).
ART.
124. Standards/Criteria for minimum wage fixing. - The regional minimum
wages to be established by the Regional Board shall be as nearly adequate as is
economically feasible to maintain the minimum standards of living necessary for
the health, efficiency and general well-being of the employees within the
framework of the national economic and social development program. In the
determination of such regional minimum wages, the Regional Board shall, among
other relevant factors, consider the following:
(a) The demand for living wages;
(b)
Wage adjustment vis-à-vis the consumer price index;
(c)
The cost of living and changes or increases therein;
(d)
The needs of workers and their families;
(e)
The need to induce industries to invest in the countryside;
(f)
Improvements in standards of living;
(g)
The prevailing wage levels;
(h)
Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j)
The equitable distribution of income and wealth along the imperatives of
economic and social development.
The wages prescribed in accordance
with the provisions of this Title shall be the standard prevailing minimum
wages in every region. These wages shall include wages varying with industries,
provinces or localities if in the judgment of the Regional Board, conditions
make such local differentiation proper and necessary to effectuate the purpose
of this Title.
Any
person, company, corporation, partnership or any other entity engaged in
business shall file and register annually with the appropriate Regional Board,
Commission and the National Statistics Office, an itemized listing of their labor component, specifying the names of their workers and
employees below the managerial level, including learners, apprentices and
disabled/handicapped workers who were hired under the terms prescribed in the
employment contracts, and their corresponding salaries and wages. chanroblesvirtuallawlibrary
Where the application of any prescribed wage
increase by virtue of a law or wage order issued by any Regional Board results
in distortions of the wage structure within an establishment, the employer and
the union shall negotiate to correct the distortions. Any dispute arising from wage distortions shall be
resolved through the grievance procedure under their collective bargaining
agreement and, if it remains unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such dispute shall be decided by
the voluntary arbitrators within ten (10) calendar days from the time said
dispute was referred to voluntary arbitration.
In
cases where there are no collective agreements or recognized labor unions, the employers and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National
Conciliation and Mediation Board and, if it remains unresolved after ten (10)
calendar days of conciliation, shall be referred to the appropriate branch of
the National Labor Relations Commission (NLRC). It
shall be mandatory for the NLRC to conduct continuous hearings and decide the
dispute within twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
The
pendency of a dispute arising from a wage distortion shall not in any way delay
the applicability of any increase in prescribed wage rates pursuant to the
provisions of law or wage order.
As
used herein, a wage distortion shall mean a situation where an increase in
prescribed wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and among
employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation. chanroblesvirtuallawlibrary
All
workers paid by result, including those who are paid on piecework, takay, pakyaw or
task basis, shall receive not less than the prescribed wage rates per eight (8)
hours of work a day, or a proportion thereof for working less than eight (8)
hours.
All
recognized learnership and apprenticeship agreements
shall be considered automatically modified insofar as their wage clauses are
concerned to reflect the prescribed wage rates.
(As amended by Republic Act No. 6727, June 9, 1989).
ART.
125. Freedom to bargain. - No wage order shall be construed to prevent
workers in particular firms or enterprises or industries from bargaining for
higher wages with their respective employers.(As amended by Republic Act No. 6727,
June 9, 1989).
ART.
126. Prohibition against injunction. – No preliminary or permanent
injunction or temporary restraining order may be issued by any court, tribunal
or other entity against any proceedings before the Commission or the Regional
Boards.(As amended by Republic Act No. 6727, June 9,
1989).
ART.
127. Non-diminution of benefits. - No wage order issued by any regional
board shall provide for wage rates lower than the statutory minimum wage rates
prescribed by Congress. (As amended by
Republic Act No. 6727, June 9, 1989).
Chapter VI
ADMINISTRATION AND
ENFORCEMENT
ART. 128. Visitorial
and enforcement power. - (a) The Secretary of Labor
and Employment or his duly authorized representatives, including labor regulation officers, shall have access to employer’s
records and premises at any time of the day or night whenever work is being
undertaken therein, and the right to copy therefrom,
to question any employee and investigate any fact, condition or matter which
may be necessary to determine violations or which may aid in the enforcement of
this Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
(b)
Notwithstanding the provisions of Articles 129 and 217 of this Code to the
contrary, and in cases where the relationship of employer-employee still
exists, the Secretary of Labor and Employment or his
duly authorized representatives shall have the power to issue compliance orders
to give effect to the labor standards provisions of
this Code and other labor legislation based on the
findings of labor employment and enforcement officers
or industrial safety engineers made in the course of inspection. The Secretary
or his duly authorized representatives shall issue writs of execution to the
appropriate authority for the enforcement of their orders, except in cases
where the employer contests the findings of the labor
employment and enforcement officer and raises issues supported by documentary
proofs which were not considered in the course of inspection. (As amended by Republic Act No. 7730,
June 2, 1994).
An
order issued by the duly authorized representative of the Secretary of Labor and Employment under this Article may be appealed to
the latter. In case said order involves a monetary award, an appeal by the
employer may be perfected only upon the posting of a cash or surety bond issued
by a reputable bonding company duly accredited by the Secretary of Labor and Employment in the amount equivalent to the
monetary award in the order appealed from. (As amended by Republic Act No. 7730, June 2,
1994).chanroblesvirtuallawlibrary
(c)
The Secretary of Labor and Employment may likewise
order stoppage of work or suspension of operations of any unit or department of
an establishment when non-compliance with the law or implementing rules and
regulations poses grave and imminent danger to the health and safety of workers
in the workplace. Within twenty-four hours, a hearing shall be conducted to
determine whether an order for the stoppage of work or suspension of operations
shall be lifted or not. In case the violation is attributable to the fault of
the employer, he shall pay the employees concerned their salaries or wages
during the period of such stoppage of work or suspension of operation.
(d)
It shall be unlawful for any person or entity to obstruct, impede, delay or
otherwise render ineffective the orders of the Secretary of Labor
and Employment or his duly authorized representatives issued pursuant to the
authority granted under this Article, and no inferior court or entity shall
issue temporary or permanent injunction or restraining order or otherwise
assume jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.
(e)
Any government employee found guilty of violation of, or abuse of authority,
under this Article shall, after appropriate administrative investigation, be
subject to summary dismissal from the service.
(f)
The Secretary of Labor and Employment may, by
appropriate regulations, require employers to keep and maintain such employment
records as may be necessary in aid of his visitorial
and enforcement powers under this Code.
ART.
129. Recovery of wages, simple money claims and other benefits. - Upon
complaint of any interested party, the Regional Director of the Department of Labor and Employment or any of the duly authorized hearing
officers of the Department is empowered, through summary proceeding and after
due notice, to hear and decide any matter involving the recovery of wages and
other monetary claims and benefits, including legal interest, owing to an
employee or person employed in domestic or household service or househelper under this Code, arising from employer-employee
relations: Provided, That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate money claims of each
employee or househelper does not exceed Five thousand
pesos (P5,000.00). The Regional Director or hearing officer shall decide or
resolve the complaint within thirty (30) calendar days from the date of the
filing of the same. Any sum thus recovered on behalf of any employee or househelper pursuant to this Article shall be held in a
special deposit account by, and shall be paid on order of, the Secretary of Labor and Employment or the Regional Director directly to
the employee or househelper concerned. Any such sum
not paid to the employee or househelper because he
cannot be located after diligent and reasonable effort to locate him within a
period of three (3) years, shall be held as a special fund of the Department of
Labor and Employment to be used exclusively for the
amelioration and benefit of workers.
Any
decision or resolution of the Regional Director or hearing officer pursuant to
this provision may be appealed on the same grounds provided in Article 223 of
this Code, within five (5) calendar days from receipt of a copy of said
decision or resolution, to the National Labor Relations
Commission which shall resolve the appeal within ten (10) calendar days from
the submission of the last pleading required or allowed under its rules.chan robles virtual law
library
The
Secretary of Labor and Employment or his duly
authorized representative may supervise the payment of unpaid wages and other
monetary claims and benefits, including legal interest, found owing to any
employee or househelper under this Code. (As amended by Section 2, Republic
Act No. 6715, March 21, 1989).
Title III
WORKING CONDITIONS
FOR
SPECIAL GROUPS OF
EMPLOYEES
Chapter I
EMPLOYMENT OF WOMEN
ART. 130. Nightwork
prohibition. - No woman, regardless of age, shall be employed or permitted
or suffered to work, with or without compensation:
(a)
In any industrial undertaking or branch thereof between ten o’clock at night
and six o’clock in the morning of the following day; or
(b)
In any commercial or non-industrial undertaking or branch thereof, other than
agricultural, between midnight and six o’clock in the morning of the following
day; or
(c) In any agricultural undertaking at nighttime
unless she is given a period of rest of not less than nine (9) consecutive
hours.
ART.
131. Exceptions. - The prohibitions prescribed by the preceding Article
shall not apply in any of the following cases:
(a)
In cases of actual or impending emergencies caused by serious accident, fire,
flood, typhoon, earthquake, epidemic or other disasters or calamity, to prevent
loss of life or property, or in cases of force majeure or imminent
danger to public safety;
(b)
In case of urgent work to be performed on machineries, equipment or
installation, to avoid serious loss which the employer would otherwise suffer;
(c)
Where the work is necessary to prevent serious loss of perishable goods;
(d)
Where the woman employee holds a responsible position of managerial or
technical nature, or where the woman employee has been engaged to provide
health and welfare services;
(e)
Where the nature of the work requires the manual skill and dexterity of women
workers and the same cannot be performed with equal efficiency by male workers;
(f)
Where the women employees are immediate members of the family operating the
establishment or undertaking; and
(g)
Under other analogous cases exempted by the Secretary of Labor
and Employment in appropriate regulations.
ART.
132. Facilities for women. - The Secretary of Labor
and Employment shall establish standards that will ensure the safety and health
of women employees. In appropriate cases, he shall, by regulations, require any
employer to:
(a)
Provide seats proper for women and permit them to use such seats when they are
free from work and during working hours, provided they can perform their duties
in this position without detriment to efficiency;
(b)
To establish separate toilet rooms and lavatories for men and women and provide
at least a dressing room for women;
(c)
To establish a nursery in a workplace for the benefit of the women employees
therein; and
(d)
To determine appropriate minimum age and other standards for retirement or
termination in special occupations such as those of flight attendants and the
like.
ART.
133. Maternity leave benefits. - (a) Every
employer shall grant to any pregnant woman employee who has rendered an
aggregate service of at least six (6) months for the last twelve (12) months,
maternity leave of at least two (2) weeks prior to the expected date of
delivery and another four (4) weeks after normal delivery or abortion with full
pay based on her regular or average weekly wages. The employer may require from
any woman employee applying for maternity leave the production of a medical
certificate stating that delivery will probably take place within two weeks.
(b)
The maternity leave shall be extended without pay on account of illness
medically certified to arise out of the pregnancy, delivery, abortion or
miscarriage, which renders the woman unfit for work, unless she has earned
unused leave credits from which such extended leave may be charged.
(c)
The maternity leave provided in this Article shall be paid by the employer only
for the first four (4) deliveries by a woman employee after the effectivity of this Code.
Article 134. Family Planning
Services; Incentives for Family Planning.- (a) Establishments which are required by law to maintain a
clinic or infirmary shall provide free family planning services to their
employees which shall include, but not be limited to, the application or use of
contraceptive pills and intrauterine devices.
(b) In coordination with other agencies of
the government engaged in the promotion of family planning, the Department of Labor and Employment shall develop and prescribe incentive
bonus schemes to encourage family planning among female workers in any
establishment or enterprise.
Article 135. Discrimination Prohibited. –
It shall be unlawful for any employer to discriminate against any woman
employee with respect to terms and conditions of employment solely on account
of her sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation,
including wage, salary or other form of remuneration and fringe benefits, to a
female employee as against a male employee, for work of equal value; and
(b)Favoring a male employee over a female employee with
respect to promotion, training opportunities, study and scholarship grants
solely on account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in this
Article or any violation of the rules and regulations issued pursuant to
Section 2 hereof shall be penalized as provided in Articles 288 and 289 of this
Code:Provided, That the institution of any criminal action under this
provision shall not bar the aggrieved employee from filing an entirely separate
and distinct action for money claims, which may include claims for damages and
other affirmative reliefs. The actions hereby authorized shall proceed
independently of each other. (As amended by Republic Act No.
6725, May 12, 1989).
Article 137. Prohibited
Acts. – (a) It shall be unlawful for any employer:
(1) To deny any woman employee the benefits
provided for in this Chapter or to discharge any woman employed by him for the
purpose of preventing her from enjoying any of the benefits provided under this
Code;
(2) To discharge such woman on account of
her pregnancy, or while on leave or in confinement due to her pregnancy;
(3) To discharge or refuse the admission of
such woman upon returning to her work for fear that she may again be pregnant.
Article 138. Classification
of Certain Women Workers.–
Any woman who is permitted or suffered to work, with or without compensation,
in any night club, cocktail lounge, massage clinic, bar or similar
establishments under the effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of Labor and Employment, shall be considered as an employee of
such establishment for purposes of labor and social
legislation.
Chapter II
EMPLOYMENT OF MINORS
Article 139. Minimum
Employable Age.- (a) No
child below fifteen (15) years of age shall be employed, except when he works
directly under the sole responsibility of his parents or guardian, and his employment
does not in any way interfere with his schooling.
(b)
Any person between fifteen (15) and eighteen (18) years of age may be employed
for such number of hours and such periods of the day as determined by the
Secretary of Labor and Employment in appropriate
regulations.
(c)
The foregoing provisions shall in no case allow the employment of a person
below eighteen (18) years of age in an undertaking which is hazardous or
deleterious in nature as determined by the Secretary of Labor
and Employment.
Article 140. Prohibition Against
Child Discrimination. - No employer shall discriminate against any person
in respect to terms and conditions of employment on account of his age.
Chapter III
EMPLOYMENT OF
HOUSEHELPERS
Article 141. 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.
Article 142.Contract of Domestic Service.– The original contract of domestic
service shall not last for more than two (2) years but it may be renewed for
such periods as may be agreed upon by the parties.
Article 143. Minimum Wage.
– (a) Househelpers shall be paid the following
minimum wage rates:
(1) Eight hundred pesos (P800.00) a month
for househelpers in Manila, Quezon, Pasay, and
Caloocan cities and municipalities of Makati, San Juan, Mandaluyong,
Muntinlupa, Navotas, Malabon, Paranaque, Las Piñas,
Pasig, Marikina, Valenzuela, Taguig and Pateros in
Metro Manila and in highly urbanized cities;
(2) Six hundred fifty pesos (P650.00) a
month for those in other chartered cities and first-class municipalities; and
(3) Five
hundred fifty pesos (P550.00) a month for those in other municipalities.
Provided, That the employers shall review the
employment contracts of their househelpers every
three (3) years with the end in view of improving the terms and conditions
thereof.
Provided, further, That those househelpers who are receiving at least One thousand pesos
(P1,000.00) shall be covered by the Social Security
System (SSS) and be entitled to all the benefits provided thereunder.(As amended by Republic Act
No. 7655, August 19, 1993).
Article 144. Minimum Cash
Wage.– The minimum wage
rates prescribed under this Chapter shall be the basic cash wages which shall
be paid to the househelpers in addition to lodging,
food and medical attendance.
Article 145.Assignment to Non-Household Work.
– No househelper shall be assigned to work in a
commercial, industrial or agricultural enterprise at a wage or salary rate
lower than that provided for agricultural or non-agricultural workers as
prescribed herein.
Article 146. Opportunity for Education. – If the househelper
is under the age of eighteen (18) years, the employer shall give him or her an opportunity for at least elementary education. The
cost of education shall be part of the househelper’s
compensation, unless there is a stipulation to the contrary.
Article 147. Treatment of Househelpers.– The employer shall treat the househelper in a
just and humane manner.In no case shall
physical violence be used upon the househelper.
Article 148. Board, Lodging,
and Medical Attendance.–
The employer shall furnish the househelper, free of
charge, suitable and sanitary living quarters as well as adequate food and
medical attendance.
Article 149. Indemnity for
Unjust Termination of Services.– If the period of household service is fixed, neither the employer nor the
househelper may terminate the contract before the
expiration of the term, except for a just cause.If the househelper
is unjustly dismissed, he or she shall be paid the compensation already earned
plus that for fifteen (15) days by way of indemnity.
If the househelper
leaves without justifiable reason, he or she shall forfeit any unpaid salary
due him or her not exceeding fifteen (15) days.
Article 150.Service of Termination Notice. –
If the duration of the household service is not determined either in
stipulation or by the nature of the service, the employer or the househelper may give notice to put an end to the
relationship five (5) days before the intended termination of the service.
Article 151. Employment
Certification. – Upon the severance of the household service
relation, the employer shall give the househelper a
written statement of the nature and duration of the service and his or her
efficiency and conduct as househelper.
Article 152. Employment
Record. – The employer may keep such records as he may deem
necessary to reflect the actual terms and conditions of employment of his househelper, which the latter shall authenticate by
signature or thumbmark upon request of the employer.
Chapter IV
EMPLOYMENT OF HOMEWORKERS
Article 153. Regulation of
Industrial Homeworkers. - The employment
of industrial homeworkers and field personnel shall
be regulated by the government through the appropriate regulations issued by
the Secretary of Labor and Employment to ensure the
general welfare and protection of homeworkers and
field personnel and the industries employing them.
Article 154. Regulations of Secretaryof Labor. –
The regulations or orders to be issued pursuant to this Chapter shall be
designed to assure the minimum terms and conditions of employment applicable to
the industrial homeworkers or field personnel
involved.
Article 155. Distribution of
Homework.– For purposes
of this Chapter, the “employer” of homeworkers includes any person, natural or artificial who,
for his account or benefit, or on behalf of any person residing outside the
country, directly or indirectly, or through an employee, agent contractor,
sub-contractor or any other person:
(1)
Delivers, or causes to be delivered, any goods, articles or materials to be
processed or fabricated in or about a home and thereafter to be returned or to
be disposed of or distributed in accordance with his directions; or
(2)
Sells any goods, articles or materials to be processed or fabricated in or
about a home and then rebuys them after such
processing or fabrication, either by himself or through some other person.
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