A
collection of Philippine laws, statutes and codes
not
included or cited in the main
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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 442
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 ENSURE
INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
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chanroblesvirtualawlibrary
PRELIMINARY
TITLE
CHAPTER I
General Provisions
ARTICLE 1. Name of Decree. — This Decree shall be
known as the "Labor Code of the Philippines,"
ARTICLE 2. Date of effectivity. — This Code shall
take effect six months after its promulgation.
ARTICLE 3. Declaration of basic policy. — The State
shall afford protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed, and regulate the
relations between workers and employers. The State shall assure the
rights of workers to self-organization, collective bargaining, security
of tenure and just and humane conditions of work.
ARTICLE 4. Construction in favor of labor. — All
doubts in the implementation and interpretation of the provisions of
this Code, including its implementing rules and regulations, shall be
resolved in favor of labor. chanroblesvirtualawlibrary
ARTICLE 5. Rules and regulations. — The Department of
Labor and Employment and other government agencies charged with the
administration and enforcement of this Code or any of its parts shall
promulgate the necessary implementing rules and regulations. Such rules
and regulations shall become effective fifteen days after announcement
of their adoption in newspapers of general circulation.
ARTICLE 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.
CHAPTER II
Emancipation of Tenants
ARTICLE 7. Statement of objectives. — Inasmuch as the
old concept of land ownership by a few has spawned valid and legitimate
grievances that gave rise to violent conflict and social tension and
the redress of such legitimate grievances being one of the fundamental
objectives of the New Society, it has become imperative to start
reformation with the emancipation of the tiller of the soil from his
bondage.
ARTICLE 8. Transfer of lands to tenant workers. —
Being a vital part of the labor force, tenant-farmers on private
agricultural lands primarily devoted to rice and corn under a system of
share crop or lease tenancy whether classified as landed estate or not
shall be deemed owner of a portion constituting a family size farm of
five (5) hectares if not irrigated and three (3) hectares if irrigated.
In all cases, the landowner may retain an area of not more than seven
hectares if such landowner is cultivating such area or will now
cultivate it.
ARTICLE 9. Determination of land value. — For the
purpose of determining the cost of the land to be transferred to the
tenant-farmer, the value of the land shall be equivalent to two and
one-half (2 ½) times the average harvest of three (3) normal
crop years immediately preceding the promulgation of Presidential
Decree No. 27 on October 21, 1972.
The total cost of the land, including interest at the rate of six
percent (6%) per annum, shall be paid by the tenant in fifteen
(15) years of fifteen (15) equal annual amortizations.
In case of default, the amortizations due shall be paid by the farmer's
cooperative of which the defaulting tenant-farmer is a member, with the
cooperative having a right of recourse against him.
The government shall guarantee such amortizations with shares of stock
in government-owned and government-controlled corporations.
ARTICLE 10. Conditions of ownership. — No title to
the land acquired by the tenant-farmer under Presidential Decree No. 27
shall be actually issued to him unless and until he has become a
full-fledged member of a duly recognized farmers' cooperative.
Title to the land acquired pursuant to Presidential Decree No. 27 or
the Land Reform Program of the Government shall not be transferable
except by hereditary succession or to the Government in accordance with
the provisions of Presidential Decree No. 27, the Code of Agrarian
Reforms and other existing laws and regulations.
ARTICLE 11. Implementing agency. — The Department of
Agrarian Reform shall promulgate the necessary rules and regulations to
implement the provisions of this chapter.
BOOK ONE
Pre-Employment
ARTICLE 12. Statement of objectives. — It is the
policy of the State:cralaw:red
(a) To promote and maintain a state of full
employment through improved manpower training, allocation and
utilization;chanroblesvirtualawlibrary
(b) To protect every citizen desiring to work locally
or overseas by securing for him the best possible terms and conditions
of employment;chanroblesvirtualawlibrary
(c) To facilitate a free choice of available
employment by persons seeking work in conformity with the national
interest;chanroblesvirtualawlibrary
(d) To facilitate and regulate the movement of
workers in conformity with the national interest;chanroblesvirtualawlibrary
(e) To regulate the employment of aliens, including
the establishment of a registration and/or work permit system;chanroblesvirtualawlibrary
(f) To strengthen the network of public employment
offices and rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas, to serve
national development objectives; chanroblesvirtualawlibrary
(g) To insure careful selection of Filipino workers
for overseas employment in order to protect the good name of the
Philippines abroad.
Title I
Recruitment and Placement of Workers *
CHAPTER I
General Provisions
ARTICLE 13. Definitions. — (a) "Workers" means any
member of the labor force, whether employed or unemployed.
(b) "Recruitment and placement" refers to any act of
canvassing, enlisting, contracting, transporting, utilizing, hiring or
procuring workers, and includes referrals, contract services, promising
or advertising for employment, locally or abroad, whether for profit or
not: Provided, That any person or entity which, in any manner, offers
or promises for a fee employment to two or more persons shall be deemed
engaged in recruitment and placement.
(c) "Private employment agency" means any person or
entity engaged in the recruitment and placement of workers for a fee
which is charged, directly or indirectly, from the workers or employers
or both.
(d) "License" means a document issued by the
Department of Labor authorizing a person or entity to operate a private
employment agency.
(e) "Private recruitment entity" means any person or
association engaged in the recruitment and placement of workers,
locally or overseas, without charging, directly or indirectly, any fee
from the workers or employers.
(f) "Authority" means a document issued by the
Department of Labor authorizing a person or association to engage in
recruitment and placement activities as a private recruitment entity.
(g) "Seaman" means any person employed in a vessel
engaged in maritime navigation.
(h) "Overseas employment" means employment of a
worker outside the Philippines.
(i) "Emigrant" means any person, worker or otherwise,
who emigrates to a foreign country by virtue of an immigrant visa or
resident permit or its equivalent in the country of destination.
ARTICLE 14. Employment promotion. — The Secretary of
Labor and Employment shall have the power and authority to:cralaw:red
(a) To organize and establish new employment offices
in addition to the existing employment offices under the Department of
Labor as the need arises;chanroblesvirtualawlibrary
(b) To organize and establish a nationwide job
clearance and information system to inform applicants registering with
a particular employment office of job opportunities in other parts of
the country as well as job opportunities abroad;chanroblesvirtualawlibrary
(c) To develop and organize a program that will
facilitate occupational, industrial and geographical mobility of labor
and provide assistance in the relocation of workers from one area to
another; and
(d) To require any person, establishment,
organization or institution to submit such employment information as
may be prescribed by the Secretary of Labor.
ARTICLE 15. Bureau of Employment Services *. — (a)
The Bureau of Employment Services shall be primarily responsible for
developing and monitoring a comprehensive employment program. It shall
have the power and duty:cralaw:red
1. To formulate and develop plans and programs to
implement the employment promotion objectives of this Title;chanroblesvirtualawlibrary
2. To establish and maintain a registration and/or
licensing system to regulate private sector participation in the
recruitment and placement of workers, locally and overseas, and to
secure the best possible terms and conditions of employment for
Filipino contract workers and compliance therewith under such rules and
regulations as may be issued by the Minister of Labor;chanroblesvirtualawlibrary
3. To formulate and develop employment programs
designed to benefit disadvantaged groups and communities;chanroblesvirtualawlibrary
4. To establish and maintain a registration and/or
work permit system to regulate the employment of aliens;chanroblesvirtualawlibrary
5. To develop a labor market information system ind
of proper manpower and development planning;chanroblesvirtualawlibrary
6. To develop a responsive vocational guidance and
testing system ind of proper human resources allocation; and
7. To maintain a central registry of skills, except
seamen.
(b) The regional offices of the Ministry of Labor
shall have the original and exclusive jurisdiction over all matters or
cases involving employer-employee relations including money claims,
arising out of or by virtue of any law or contracts involving Filipino
workers for overseas employment except seamen: Provided, That the
Bureau of Employment Service may, in the case of the National Capital
Region, exercise such power, whenever the Minister of Labor deems it
appropriate. The decisions of the regional offices or the Bureau of
Employment Services if so authorized by the Secretary of Labor and
Employment as provided in this Article, shall be appealable to the
National Labor Relations Commission upon the same grounds provided in
Article 223 hereof. The decisions of the National Labor Relations
Commission shall be final and unappealable.(Superseded by Exec. Order
797.)
(c) The Minister of Labor shall have the power to
impose and collect fees, based on rate recommended by the Bureau of
Employment Services. Such fees shall be deposited in the National
Treasury as a special account of the General Fund, for the promotion of
the objectives of the Bureau of Employment Services, subject to the
provisions of Section 40 of Presidential Decree No. 1177.
ARTICLE 16. Private recruitment. — Except as provided
in Chapter II of this Title, no person or entity, other than the public
employment offices, shall engage in the recruitment and placement of
workers.
ARTICLE 17. Overseas Employment Development Board. —
[Art. 17 and Art. 20 (National Seamen Board) were repealed by Executive
Order 797, May 1, 1982 and Executive Order No. 247, July 24, 1987.
Exec. Order 797 created the Philippine Overseas Employment
Administration which assumed the functions of the OEDB and NSB
and the overseas employment functions of the Bureau of Employment
Services, which were abolished. Exec. Order 247 provided for the
following POEA functions (Sec. 3):cralaw:red
(a) Regulate private sector participation in the
recruitment and overseas placement of workers by setting up a licensing
and registration system;chanroblesvirtualawlibrary
(b) Formulate and implement, in coordination with
appropriate entities concerned, when necessary, a system for promoting
and monitoring the overseas employment of Filipino workers taking into
consideration their welfare and the domestic manpower requirements;chanroblesvirtualawlibrary
(c) Protect the rights of Filipino workers for
overseas employment to fair and equitable recruitment and employment
practices and ensure their welfare;chanroblesvirtualawlibrary
(d) Exercise original and exclusive jurisdiction to
hear and decide all claims arising out of an employer-employee
relationship or by virtue of any law or contract involving Filipino
workers for overseas employment including the disciplinary cases; and
all pre-employment cases which are administrative in character
involving or arising out of violation of requirement laws, rules and
regulations including money claims arising therefrom, or violation of
the conditions for issuance of license or authority to recruit workers.
All prohibited recurrent activities and practices which are penal in
character as enumerated and defined under Administrative shall also
establish and maintain joint projects with private organizations,
domestic or foreign, in the furtherance of its objectives.]
ARTICLE 18. Ban on direct-hiring. — No employer may
hire a Filipino worker for overseas employment except through the
Boards and entities authorized by the Secretary of Labor. Direct-hiring
by members of the diplomatic corps, international organizations and
such other employers as may be allowed by the Secretary of Labor is
exempt from this provision.
ARTICLE 19. Office of Emigrant Affairs. —*
(a) Pursuant to the national policy to maintain close ties with
Filipino migrant communities and promote their welfare as well as
establish a data bank ind of national manpower policy information, an
Office of Emigrant Affairs is hereby created in the Department of
Labor. The Office shall be a unit at the Office of the Secretary and
shall initially be manned and operated by such personnel and through
such funding as are available within the Department and its attached
agencies. Thereafter, its appropriation shall be made part of the
regular General Appropriation Decree.
(b) The Office shall, among others, promote the
well-being of emigrants and maintain their close link to the homeland
by:cralaw:red
1. serving as a liaison with migrant communities;chanroblesvirtualawlibrary
2. provision of welfare and cultural services;chanroblesvirtualawlibrary
3. promote and facilitate re-integration of migrants
into the national mainstream;chanroblesvirtualawlibrary
4. promote economic, political and cultural ties with
the communities; and
5. generally to undertake such activities as may be
appropriate to enhance such cooperative links.
[*Abolished by BP 79 and replaced by the Commission on Filipino
Overseas.]
ARTICLE 20. National Seamen Board. — [Repealed by
Exec. Order No. 797, except letter (b).]
(b) The Board (POEA) shall have original and
exclusive jurisdiction over all matters or cases including money
claims, involving employer-employee relations, arising out of or by
virtue of any law or contracts involving Filipino seamen for overseas
employment. The decisions of the Board (POEA) shall be appealable to
the National Labor Relations Commission upon the same grounds provided
in Article 223 hereof. The decisions of the National Labor Relations
Commission shall be final and unappealable.
ARTICLE 21. Foreign service role and participation. —
To provide ample protection to Filipino workers abroad, the labor
attaches, the labor reporting officers duly designated by the Secretary
of Labor and the Philippine diplomatic or consular officials concerned
shall, even without prior instruction or advice from the home office,
exercise the power and duty:cralaw:red
(a) To provide all Filipino workers within their
jurisdiction assistance on all matters arising out of employment;chanroblesvirtualawlibrary
(b) To insure that Filipino workers are not exploited
or discriminated against;chanroblesvirtualawlibrary
(c) To verify and certify as requisite to
authentication that the terms and conditions of employment in contracts
involving Filipino workers are in accordance with the Labor Code and
rules and regulations of the Overseas Employment Development Board and
the National Seamen Board (POEA);chanroblesvirtualawlibrary
(d) To make continuing studies or researches and
recommendations on the various aspects of the employment market within
their jurisdiction;chanroblesvirtualawlibrary
(e) To gather and analyze information on the
employment situation and its probable trends, and to make such
information available ; and
(f) To perform such other duties as may be required
of them from time to time.
ARTICLE 22. Mandatory remittance of foreign exchange
earnings. — It shall be mandatory for all Filipino workers abroad to
remit a portion of their foreign exchange earnings to their families,
dependents, and/or beneficiaries in the country in accordance with
rules and regulations prescribed by the Secretary of Labor.
ARTICLE 23. Composition of the Boards. — (Repealed by
Executive Order No. 247, July 24, 1987, Section 4 of which provides as
follows:cralaw:red
Structural Organizations. — The Administration shall consist of the
Governing Board, the Office of the Administrator, the Offices of such
number of Deputy Administrators as may be necessary, Office of the
Director for each of the principal subdivisions of its internal
structure.
(a) The governing Board shall be composed of the
Secretary of Labor and Employment as Chairman, the Administrator and a
third member, considered well-vested in the field of overseas
employment who shall be appointed by the President to serve for a term
of two (2) years;chanroblesvirtualawlibrary
(b) The Administrator and such Deputy Administrator
and Directors as may be necessary shall be appointed by the President
upon recommendation of the Secretary;chanroblesvirtualawlibrary
(c) The functional structure of the Administration
shall be established along the areas of: market development,
employment, welfare, licensing, regulation and adjudication. Each of
the principal substantive subdivisions of the Administration
shall be headed by a Director and shall have such departments and units
as may be necessary.)
ARTICLE 24. Boards to issue rules and collect fees. —
The Boards shall issue appropriate rules and regulations to carry out
their functions. They shall have the power to impose and collect fees
from employers concerned, which shall be deposited to the respective
accounts of said Boards and be used by them exclusively to promote
their objectives.
CHAPTER II
Regulation of Recruitment and
Placement Activities
ARTICLE 25. Private sector participation in the
recruitment and placement of workers. — Pursuant to national
development objectives and in order to harness and maximize the use of
private sector resources and initiative in the development and
implementation of a comprehensive employment program, the private
employment sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and
regulations, as may be issued by the Secretary of Labor.
ARTICLE 26. Travel agencies prohibited to recruit. —
Travel agencies and sales agencies ofrline companies are prohibited
from engaging in the business of recruitment and placement of workers
for overseas employment whether for profit or not.
ARTICLE 27. Citizenship requirement. — Only Filipino
citizens or corporations, partnerships or entities at least 75 percent
of the authorized and voting capital stock of which is owned and
controlled by Filipino citizens shall be permitted to participate in
the recruitment and placement of workers, locally or overseas.
ARTICLE 28. Capitalization. — All applicants for
authority to hire or renewal of license to recruit are required to have
such substantial capitalization as determined by the Secretary of
Labor. chanroblesvirtualawlibrary
ARTICLE 29. Non-transferability of license or
authority. — No license or authority shall be used directly or
indirectly by any person other than the one in whose favor it was
issued at any place other than that stated in the license or authority,
nor may such license or authority be transferred, conveyed or assigned
to any other person or entity. Any transfer of business address,
appointment or designation of any agent or representative including the
establishment of additional offices anywhere shall be subject to the
prior approval of the Department of Labor.
ARTICLE 30. Registration fees. — The Secretary of
Labor and Employment shall promulgate a schedule of fees for the
registration of all applicants for license or authority.
ARTICLE 31. Bonds. — All applicants for license or
authority shall post such cash and surety bonds as determined by the
Secretary of Labor and Employment to guarantee compliance with
prescribed recruitment procedures, rules and regulations, and terms and
conditions of employment as may be appropriate.
ARTICLE 32. Fees to be paid by workers. — Any person
applying with a private fee charging employment agency for employment
assistance shall not be charged any fee until he has obtained
employment through his efforts or has actually commenced employment.
Such fee shall be always covered with appropriate receipt clearly
showing the amount paid. The Secretary of Labor and Employment shall
promulgate a schedule of allowable fees.
ARTICLE 33. Reports on employment status. — Whenever
the public interest so requires, the Secretary of Labor may direct all
persons or entities within the coverage of this Title to submit a
report on the status of employment, including job vacancies; details of
job requisitions, separation from jobs, wages, other terms and
conditions, and other employment data.
ARTICLE 34. Prohibited practices. — It shall be
unlawful for any individual, entity, licensee or holder of authority:cralaw:red
(a) To charge or accept directly or indirectly any
amount greater than that specified in the schedule of allowable fees
prescribed by the Secretary of Labor, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;chanroblesvirtualawlibrary
(b) To furnish or publish any false notice or
information or document in relation to recruitment or employment;chanroblesvirtualawlibrary
(c) To give any false notice, testimony, information
or document or commit any act or misrepresentation for the purpose of
securing a license or authority under this Code;chanroblesvirtualawlibrary
(d) To induce or attempt to induce a worker already
employed to quit his employment in order to offer him to another unless
the transfer is designed to liberate the worker from oppressive terms
and conditions of employment;chanroblesvirtualawlibrary
(e) To influence or to attempt to influence any
person or entity not to employ any worker who has not applied for
employment through his agency;chanroblesvirtualawlibrary
(f) To engage in the recruitment or placement of
workers in jobs harmful to public health or morality or to the dignity
of the Republic of the Philippines;chanroblesvirtualawlibrary
(g) To obstruct or attempt to obstruct inspection by
the Secretary of Labor or by his duly authorized representatives;chanroblesvirtualawlibrary
(h) To fail to file reports on the status of
employment, placement vacancies, remittance of foreign exchange
earnings, separation from jobs, departures and such other matters or
information as may be required by the Secretary of Labor;chanroblesvirtualawlibrary
(i) To substitute or alter employment contracts
approved and verified by the Department of Labor and Employment from
the time of actual signing thereof by the parties up to and including
the periods of expiration of the same without the approval of the
Secretary of Labor.
(j) To become an officer or member of the Board of
any corporation engaged in travel agency or to be engaged directly or
indirectly in the management of a travel agency;chanroblesvirtualawlibrary
(k) To withhold or deny travel documents from
applicant workers before departure for monetary or financial
considerations other than those authorized under this Code and its
implementing rules and regulations.
ARTICLE 35. Suspension and/or cancellation of license
or authority. — The Secretary of Labor shall have the power to suspend
or cancel any license or authority to recruit employees for overseas
employment for violation of rules and regulations issued by the
Secretary of Labor, the Overseas Employment Development Board, and the
National Seamen Board, or for violations of the provisions of this and
other applicable laws, General Orders and Letters of Instructions.
CHAPTER III
Miscellaneous Provisions
ARTICLE 36. Regulatory power. — The Secretary of
Labor shall have the power to restrict and regulate the recruitment and
placement activities of all agencies within the coverage of this Title
and is hereby authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement the provisions of
this Title.
ARTICLE 37. Visitorial power. — The Secretary of
Labor or his duly authorized representatives may, at any time, inspect
the premises, books of accounts and records of any person or entity
covered by this Title, require it to submit reports regularly on
prescribed forms, and act on violations of any provisions of this
Title.
ARTICLE 38. Illegal Recruitment. — (a) Any
recruitment activities, including the prohibited practices enumerated
under Article 34 of this Code, to be undertaken by non-licensees or
non-holders of authorities shall be deemed illegal and punishable under
Article 39 of this Code. The Ministry of Labor and Employment or any
law enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate
or in large scale shall be considered an offense involving economic
sabotage and shall be penalized in accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out
by a group of three (3) or more persons conspiring and/or
confederating with one another in carrying out any unlawful or illegal
transaction , enterprise or scheme defined under the first paragraph
hereof. Illegal recruitment is deemed committed in large scale if
committed against three (3) or more persons individually or as a group.
(c) The Minister of Labor and Employment or his duly
authorized representatives shall have the power to cause the arrest and
detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger
to national security and public order or will lead to further
exploitation of job-seekers. The Minister shall order the search of the
office or premises and seizure of documents, paraphernalia, properties
and other implements used in illegal recruitment activities and
the closure of companies, establishments and entities found to be
engaged in the recruitment of workers for overseas employment, without
having been licensed or authorized to do so.
ARTICLE 39. Penalties. — (a) The penalty of life
imprisonment and a fine of One Hundred Thousand Pesos (P100,000) shall
be imposed if illegal recruitment constitutes economic sabotage as
defined herein:cralaw:red
(b) Any licensee or holder of authority found
violating or causing another to violate any provision of this Title or
its implementing rules and regulations shall, upon conviction thereof,
suffer the penalty of imprisonment of not less than two years nor more
than five years or a fine of not less than P10,000 nor more than
P50,000 or both such imprisonment and fine, at the discretion of the
court;chanroblesvirtualawlibrary
(c) Any person who is neither a licensee nor a holder
of authority under this Title found violating any provision thereof or
its implementing rules and regulations shall, upon conviction thereof,
suffer the penalty of imprisonment of not less than four years nor more
than eight years or a fine of not less than P20,000 nor more than
P100,000 or both such imprisonment and fine, at the discretion of the
court;chanroblesvirtualawlibrary
(d) If the offender is a corporation, partnership,
association or entity, the penalty shall be imposed upon the officer or
officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall,
in addition to the penalties herein prescribed, be deported without
further proceedings;chanroblesvirtualawlibrary
(d) In every case, conviction shall cause and carry
the automatic revocation of the license or authority and all the
permits and privileges granted to such person or entity under this
Title, and the forfeiture of the cash and surety bonds 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
exclusively to promote their objectives.
Title II
Employment of Non-Resident Aliens
ARTICLE 40. Employment permit of non-resident aliens.
— Any alien seeking admission to the Philippines for employment
purposes and any domestic or foreign employer who desires to engage an
alien for employment in the Philippines shall obtain an employment
permit from the Department of Labor and Employment.
The employment permit may be issued to a non-resident alien or to the
applicant employer after a determination of the non-availability of a
person in the Philippines who is competent, able and willing at the
time of application to perform the services for which the alien is
desired.
For an enterprise registered in preferred areas of investments, said
employment permit may be issued upon recommendation of the government
agency charged with the supervision of said registered enterprise.
ARTICLE 41. Prohibition against transfer of
employment. — (a) After the issuance of employment permit, the alien
shall not transfer to another job or change his employer without prior
approval of Secretary of Labor.
(b) Any non-resident alien who shall take up
employment in violation of the provision of this Title and its
implementing rules and regulations shall be punished in accordance with
the provisions of Articles 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to deportation after
service of his sentence.
ARTICLE 42. Submission of list. — Any employer
employing non-resident foreign nationals on the effective date of this
Code shall submit a list of such nationals to the Secretary of Labor
and Employment within 30 days after such date indicating their names,
citizenship, foreign and local addresses, nature of employment and
status of stay in the country. The Secretary of Labor and Employment
shall then determine if they are entitled to an employment permit.
BOOK TWO
Human Resources
Development Program
TITLE I
National Manpower Development Program
CHAPTER I
National Policies and Administrative Machinery
for their Implementation
ARTICLE 43. Statement of objective. — It is the
objective of this Title to develop human resources, establish training
institutions and formulate such plans and programs that will ensure
efficient allocation, development and utilization of the nation's
manpower and thereby promote employment and accelerate economic and
social growth.
ARTICLE 44. Definitions. — As used in this Title:cralaw:red
(a) "Manpower" shall mean that portion of the
nation's population which has actual or potential capability to
contribute directly to the production of goods and services.
(b) "Entrepreneurship" shall mean training for
self-employment or assisting individual or small industries within the
purview of this Title.
ARTICLE 45. National Manpower and Youth Council
Composition. — To carry out the objectives of this Title, the National
Manpower and Youth Council, which is attached to the Department of
Labor and Employment for policy and program coordination and
hereinafter referred to as the Council, shall be composed of the
Secretary of Labor and Employment as ex-officio chairman, the Secretary
of Education, Culture and Sports as ex-officio vice-chairman, and as
ex-officio members: the Director-General of the National Economic and
Development Authority; the Secretary of Agriculture; the Secretary of
Natural Resources; the Chairman of the Civil Service Commission; the
Secretary of Social Welfare; the Secretary of Local Government and
Community Development, the Chairman of the National Science Development
Board; the Secretary of Trade and Industry and the Director-General of
the Council. The Director-General of the Council shall have no vote.
In addition, the President shall appoint the following members from the
private sector; two representatives of national organizations of
employers; two representatives of national workers organizations and
one representative of national family and youth organizations,
each for a term of three years.
ARTICLE 46. National Manpower Plan. — The Council
shall formulate a long-term national manpower plan for the optimum
allocation, development and utilization of manpower for employment,
entrepreneurship and economic and social growth. This manpower plan
shall, after adoption by the Council, be updated annually and submitted
to the President for his approval. Thereafter, it shall be the
controlling plan for the development of manpower resources for the
entire country in accordance with the national development plan. The
Council shall call upon any agency of government or the private sector
to assist in this effort. chanroblesvirtualawlibrary
ARTICLE 47. National Manpower Skills Center. — The
Council shall establish a National Manpower Skills Center and regional
and local training centers for the purpose of promoting the development
of skills. The centers shall be administered and operated under such
rules and regulations as may be established by the Council.
ARTICLE 48. Establishment and formulation of skills
standards. — There shall be national skills standards for industry
trades to be established by the Council in consultation with employers
and workers organizations and appropriate government authorities. The
Council shall thereafter administer the national skills standards.
ARTICLE 49. Administration of training programs. —
The Council shall provide through the Secretariat instructor training,
entrepreneurship development, training in vocations, trades and other
fields of employment, and assist any employer or organization in
training schemes designed to attain its objectives under rules and
regulations which the Council shall establish for this purpose.
The Council shall exercise, through the Secretariat, authority and
jurisdiction over, and administer, on-going technical assistance
programs and/or grants-in-aid for manpower and youth development
including those which may be entered into between the Government of the
Philippines and international and foreign organizations and nations, as
well as persons and organizations in the Philippines.
In order to integrate the national manpower development effort, all
manpower training schemes as provided for in this Code shall be
coordinated with the Council particularly those having to do with the
setting of skills standards. For this purpose, existing manpower
training programs in government and in the private sector shall be
reported to the Council which may regulate such programs to make them
conform with national development programs.
This Article shall not include apprentices, learners and handicapped
workers as governed by appropriate provisions of this Code.
ARTICLE 50. Industry boards. — The Council shall
establish industry boards to assist in the establishment of manpower
development schemes, trades and skills standards and such other
functions as will provide direct participation of employers and workers
in the fulfillment of the Council's objectives, in accordance with
guidelines to be established by the Council and in consultation with
the National Economic and Development Authority.
The maintenance and operations of the Industry Boards shall be financed
through a funding scheme under such rates or fees and manners of
collection and disbursement as may be determined by the Council.
ARTICLE 51. Employment service training functions. —
The Council shall utilize the employment service of the Department of
Labor and Employment for the placement of its graduates. The Bureau of
Employment Services shall render assistance to the Council in the
measurement of unemployment and under-employment, conduct of local
manpower resource surveys and occupational studies including an
inventory of the labor force, establishment and maintenance without
charge of a national register of technicians who have successfully
completed a training program under this Title, and skilled manpower
including its publication, and maintenance of an adequate and
up-to-date system of employment information.
ARTICLE 52. Incentive scheme. — An additional
deduction from taxable income of one-half of the value of labor
training expenses incurred for development programs shall be granted to
the person or enterprise concerned provided that such development
programs, other than apprenticeship, are approved by the Council and
the deduction does not exceed ten percent (10%) of direct labor wage.
There shall be a review of the said scheme two years after its
implementation.
ARTICLE 53. Council Secretariat. — The Council shall
have a Secretariat headed by a Director-General who shall be assisted
by a Deputy Director-General, both of whom shall be career
administrators appointed by the President of the Philippines on
recommendation of the Secretary of Labor. The Secretariat shall be
under the administrative supervision of the Secretary of Labor and
shall have an Office of Manpower Planning and Development, an Office of
Vocational Preparation, a National Manpower Skills Center, regional
manpower development offices and such other offices as may be
necessary.
The Director-General shall have the rank and emoluments of an
undersecretary and shall serve for a term of ten (10) years. The
Executive-Directors of the Office of Manpower Planning and Development,
the Office of Vocational Preparation and the National Manpower Skills
Center shall have the rank and emoluments of a bureau director and
shall be subject to Civil Service Law, rules and regulations. The
Director-General, Deputy Director-General and Executive Directors shall
be natural-born citizens, between thirty and fifty years of age at the
time of appointment, with a master's degree, or its equivalent, and
experience in national planning and development of human resources. The
Executive Director of the National Manpower Skills Center shall, in
addition to the foregoing qualifications, have undergone training in
center management. Directors shall be appointed by the President on the
recommendations of the Secretary of Labor.
The Director-General shall appoint such personnel necessary to carry
out the objectives, policies and functions of the Council subject to
Civil Service rules. The regular professional and technical personnel
shall be exempt from WAPCO rules and regulations.
The Secretariat shall have the following functions and
responsibilities:cralaw:red
(a) To prepare and recommend the manpower plan for
approval by the Council;chanroblesvirtualawlibrary
(b) To recommend allocation of resources for the
implementation of the manpower plan as approved by the Council;chanroblesvirtualawlibrary
(c) To carry out the manpower plan as the
implementing arm of the Council;chanroblesvirtualawlibrary
(d) To effect the efficient performance of the
functions of the Council and the achievement of the objectives of this
Title;chanroblesvirtualawlibrary
(e) To determine specific allocation of resources for
projects to be undertaken pursuant to approved manpower
plans; chanroblesvirtualawlibrary
(f) To submit to the Council periodic reports on the
progress and accomplishment of work programs;chanroblesvirtualawlibrary
(g) To prepare for approval by the Council an annual
report to the President on plans, programs and projects on manpower and
out-of-school youth development;chanroblesvirtualawlibrary
(h) To enter into agreements to implement approved
plans and programs and perform any and all such acts as will fulfill
the objectives of this Code as well as ensure the efficient performance
of the functions of the Council; and
(i) To perform such other functions as may be
authorized by the Council.
ARTICLE 54. Regional manpower development offices. —
The Council shall create regional manpower development offices which
shall determine the manpower needs of the industry, agriculture and
other sectors of the economy within their respective jurisdictions;
provide the Council's central planners with the data for updating the
national manpower plan; recommend programs for the regional level
agencies engaged in manpower and youth development within the policies
formulated by the Council; administer and supervise Secretariat
training programs within the region and perform such other functions as
may be authorized by the Council.
ARTICLE 55. Consultants and technical assistance,
publication and research. — In pursuing its objectives, the Council is
authorized to set aside a portion of its appropriation for the hiring
of services of qualified consultants, and/or private organizations for
research work and publication. It shall avail itself of the services of
the Government as may be required.
ARTICLE 56. Rules and regulations. — The Council
shall define its broad functions and issue appropriate rules and
regulations necessary to implement the provisions of this Code.
TITLE II
Training and Employment of Special Workers
CHAPTER I
Apprentices
ARTICLE 57. Statement of objective. — This Titlems:cralaw:red
(1) To help meet the demand of the economy for
trained manpower;chanroblesvirtualawlibrary
(2) To establish a national apprenticeship program
through the participation of employers, workers, and government and
non-government agencies; and
(3) To establish apprenticeship standards for the
protection of apprentices.
ARTICLE 58. Definition of terms. — As used in this
Title:cralaw:red
(a) "Apprenticeship" means practical training on the
job supplemented by related theoretical instruction.
(b) An "apprentice" is a worker who is covered by a
written apprenticeship agreement with an individual employer or any of
the entities recognized under this Chapter.
(c) An "apprenticeship occupation" means any trade,
form of employment or occupation which requires more than three (3)
months of practical training on the job supplemented by related
theoretical instruction.
(d) "Apprenticeship agreement" is an employment
contract wherein the employer binds himself to train the apprentice and
the apprentice in turn accepts the terms of training.
ARTICLE 59. Qualifications of apprentice. — To
qualify as an apprentice, a person shall:cralaw:red
(a) Be at least fourteen year of age;chanroblesvirtualawlibrary
(b) Possess vocational aptitude and capacity for
appropriate tests; and
(c) Possess the ability to comprehend and follow oral
and written instructions.
Trade and industry associations may recommend to the Secretary of
Labor appropriate educational requirements for different
occupations.
ARTICLE 60. Employment of Apprentices. —* Only
employers in the highly technical industries may employ apprentices and
only in apprenticeable occupation approved by the Secretary of Labor
and Employment.
ARTICLE 61. Contents of apprenticeship agreements. —
Apprenticeship agreements, including main rates of apprentices, shall
conform to the rules issued by the Secretary of Labor and Employment.
The period of apprenticeship shall not exceed six months.
Apprenticeship agreements providing for wage rates below the legal
minimum wage, which in no case shall start below 75 per cent of the
applicable minimum wage, may be entered into only in accordance with
apprenticeship programs duly approved by the Secretary of Labor and
Employment. The Department shall develop standard model programs of
apprenticeship. chanroblesvirtualawlibrary
ARTICLE 62. Signing of apprenticeship agreement. —
Every apprenticeship agreement shall be signed by the employer or his
agent, or by an authorized representative of any of the recognized
organizations, associations or groups and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf
by his parent or guardian or, if the latter is not available, by an
authorized representative of the Department of Labor and Employment,
and the same shall be binding during its lifetime.
Every apprenticeship agreement entered into under this Title shall be
ratified by the appropriate apprenticeship committees, if any, and a
copy thereof shall be furnished both the employer and the apprentice.
ARTICLE 63. Venue of apprenticeship programs. — Any
firm, employer, group or association, industry organization or civic
group wishing to organize an apprenticeship program may choose from any
of the following apprenticeship schemes as the training venue of
apprentices:cralaw:red
(a) Apprenticeship conducted entirely by and within
the sponsoring firm, establishment or entity;chanroblesvirtualawlibrary
(b) Apprenticeship entirely within a Department of
Labor training center or other public training institution; or
(c) Initial training in trade fundamentals in a
training center or other institution with subsequent actual work
participation within the sponsoring firm or entity during the final
stage of training.
ARTICLE 64. Sponsoring of apprenticeship program. —
Any of the apprenticeship schemes recognized herein may be undertaken
or sponsored by a single employer or firm or by a group or association
thereof, or by a civic organization. Actual training of apprentices may
be undertaken:cralaw:red
(a) In the premises of the sponsoring employer in the
case of individual apprenticeship programs;chanroblesvirtualawlibrary
(b) In the premises of one or several designated
firms in the case of programs sponsored by a group or association of
employers or by a civic organization; or
(c) In a Department of Labor and Employment training
center or other public training institution.
ARTICLE 65. Investigation of violation of
apprenticeship agreement. — Upon complaint of any interested person or
upon its own initiative, the appropriate agency of the Department of
Labor or its authorized representative shall investigate any violation
of any apprenticeship agreement pursuant to such rules and regulations
as may be prescribed by the Secretary of Labor.
ARTICLE 66. Appeal to the Secretary of Labor. — The
decision of the authorized agency of the Department of Labor and
Employment may be appealed by any aggrieved person to the Secretary of
Labor within five days from receipt of the decision. The decision of
the Secretary of Labor shall be final and executory.
ARTICLE 67. Exhaustion of administrative remedies. —
No person shall institute any action for the enforcement of any
apprenticeship agreement or damages for breach of any such agreement,
unless he has exhausted all available administrative remedies.
ARTICLE 68. Aptitude testing of applicants. —
Consonant with the minimum qualifications of apprentice-applicants
required under this Chapter, employers of entities with duly recognized
apprenticeship programs shall have primary responsibility for providing
appropriate aptitude tests in the selection of apprentices. If they do
not have adequate facilities for the purpose, the Department of Labor
and Employment may perform the service free of charge.
ARTICLE 69. Responsibility for theoretical
instruction. — Supplementary theoretical instruction to apprentices in
cases where the program is undertaken in the plant may be done by the
employer. If the latter is not prepared to assume the responsibility,
the same may be delegated to an appropriate government agency.
ARTICLE 70. Voluntary organization of apprenticeship
program; exemptions. — (a) The organization of apprenticeship programs
shall be primarily a voluntary undertaking by employers.
(b) When national security or particular requirements
of economic development so demand, the President of the Philippines may
require compulsory training of apprentices in certain trades,
occupations, jobs or employment levels where shortage of trained
manpower is deemed critical as determined by the Secretary of Labor.
Appropriate rules in this connection shall be promulgated by the
Secretary of Labor and Employment as the need arises; and
(c) Where services of foreign technicians are
utilized by private companies in apprenticeable trades, said companies
are required to set up appropriate apprenticeship programs.
ARTICLE 71. Deductibility of training costs. — An
additional deduction from taxable income of one-half (1/2) of the value
of labor training expenses incurred for developing the productivity and
efficiency of apprentices shall be granted to the person or enterprise
organizing an apprenticeship program: Provided, that such program is
duly recognized by the Department of Labor: Provided, further, That
such deduction shall not exceed ten (10%) percent of direct labor wage;
and provided finally that the person or enterprise who wishes to avail
himself or itself of this incentive should pay his apprentices the
minimum wages.
ARTICLE 72. Apprentices without compensation. — The
Secretary of Labor and Employment may authorize the hiring of
apprentices without compensation whose training on the job is required
by the school or training program curriculum or as a requisite for
graduation or board examination. chanroblesvirtualawlibrary
CHAPTER II
Learners
ARTICLE 73. Learners defined. — Learners are persons
hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable and which may be learned through practical
training on the job in a relatively short period of time which shall
not exceed three (3) months.
ARTICLE 74. When Learners may be hired. — Learners
may be employed when no experienced workers are available, the
employment of learners is necessary to prevent curtailment of
employment opportunities, and the employment does not create unfair
competition in terms of labor costs or impair or lower working
standards.
ARTICLE 75. Learnership agreement. — Any employer
desiring to employ learners shall enter into a learnership agreement
with them, which agreement shall include:cralaw:red
(a) The names and addresses of the learners;chanroblesvirtualawlibrary
(b) The duration of the learnership period, which
shall not exceed three (3) months;chanroblesvirtualawlibrary
(c) The wages or salary rates of the learners which
shall begin at not less than 75 percent of the applicable minimum wage;
and
(d) A commitment to employ the learners, if they so
desire, as regular employees upon completion of the learnership. All
learners who have been allowed or suffered to work during the first two
(2) months shall be deemed regular employees if training is terminated
by the employer before the end of the stipulated period through no
fault of the learner.
The learnership agreement shall be subject to inspection by the
Secretary of Labor and Employment or his duly authorized
representatives.
ARTICLE 76. Learners in piece work. — Learners
employed in piece or incentive rate jobs during the training period
shall be paid in full for the work done.
ARTICLE 77. Penalty clause. — Any violation of this
Chapter or its implementing rules and regulations shall be subject to
the general penalty clause provided for in this Code.
CHAPTER III
Handicapped Workers
ARTICLE 78. Definition. — Handicapped workers are
those whose earning capacity is impaired by age or physical or mental
deficiency or injury.
ARTICLE 79. When employable. — Handicapped workers
may be employed when their employment is necessary to prevent
curtailment of employment opportunities and when it does not create
unfair competition in labor costs or impair or lower working standards.
ARTICLE 80. Employment agreement. — Any employer who
employs handicapped workers shall enter into an employment agreement
with them, which agreement shall include:cralaw:red
(a) The names and addresses of the handicapped
workers to be employed;chanroblesvirtualawlibrary
(b) The rate to be paid the handicapped workers which
shall be not less than 75 percent of the applicable legal minimum wage;chanroblesvirtualawlibrary
(c) The duration of employment period; and
(d) The work to be performed by the handicapped
workers.
The employment agreement shall be subject to inspection by the
Secretary of Labor and Employment or his duly authorized
representatives.
ARTICLE 81. Eligibility for apprenticeship. — Subject
to the appropriate provisions of this Code, handicapped workers may be
hired as apprentices or learners if their handicap is not such as to
effectively impede the performance of job operations in the particular
occupations for which they are hired. chanroblesvirtualawlibrary
BOOK THREE
Conditions of Employment
TITLE I
Working Conditions and Rest Periods
CHAPTER I
Hours of Work
ARTICLE 82. Coverage. — The provision 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" 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.
ARTICLE 83. Normal hours of work. — The normal hours
of work of any employee shall not exceed eight in a day.
Health personnel in cities or municipalities with a population of at
least one million (1,000,000) or in hospitals or 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 (30%) percent of their regular wage for work on the sixth
day. For purposes of this Article, "health personnel" shall include:
resident physicians, nurses, nutritionists, dieticians, pharmacists,
social workers, laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other hospital or clinic
personnel.
ARTICLE 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. chanroblesvirtualawlibrary
ARTICLE 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
minutes time-off for their regular meals.
ARTICLE 86. Night shift differential. — Every
employee shall be paid a night shift differential of not less than ten
(10%) percent of his regular wage for each hour of work performed
between ten o'clock in the evening and six o'clock in the morning.
ARTICLE 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 (25%) percent thereof. Work performed
beyond eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate for the first eight hours on a
holiday or rest day plus at least 30 percent thereof.
ARTICLE 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.
ARTICLE 89. Emergency overtime work. — Any employee
may be required by the employer to perform overtime work in any of the
following cases:cralaw:red
(a) When the country is at war or when any other
national or local emergency has been declared by Congress or the Chief
Executive;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(c) When there is urgent work to be performed on
machines, installation or equipment, in order to avoid serious loss or
damage to the employer or some other cause of similar nature;chanroblesvirtualawlibrary
(d) When the work is necessary to prevent loss or
damage to perishable goods;chanroblesvirtualawlibrary
(e) Where the completion or continuation of the work
started before the eight (8th) 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.
ARTICLE 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
ARTICLE 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 consecutive hours after every six consecutive normal work
days.
(b) The employer shall determine and schedule the
weekly rest day of his employees, subject to collective 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.
ARTICLE 92. When employer may require work on a rest
day. — The employer may require his employees to work on any day:cralaw:red
(a) In case of actual or impending emergencies caused
by serious accidents, fire, flood, typhoon, earthquake, epidemic or
other disaster or calamity to prevent loss of life and property or
imminent danger to public safety;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(d) To prevent loss or damage to perishable goods;chanroblesvirtualawlibrary
(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.
ARTICLE 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 (30%) percent 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.
(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 (30%) percent 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 (30%) percent 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 (50%) percent 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
ARTICLE 94. Right to holiday pay. — (a) Every worker
shall be paid his regular daily wage during regular holidays, except in
retail and service establishment regularly employing less than ten
workers;chanroblesvirtualawlibrary
(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, last Sunday of August, first of November,
the thirtieth of November, the twenty-fifth and the thirtieth of
December, thirty-first of December, and the day designated by law for
holding a general election. [Superseded by Exec. Order 203]
ARTICLE 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 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 after
considering the viability or financial condition of such establishment.
(c) The grant of benefit in excess of that provided
herein shall not be made a subject of arbitration or any court of
administrative action.
ARTICLE 96. Service charges. — All service charges
collected by hotels, restaurants and similar establishments shall be
distributed at the rate of eighty-five (85%) percent for all covered
employees and fifteen (15%) percent 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 into their wages.
TITLE II
Wages
CHAPTER I
Preliminary Matters
ARTICLE 97. Definition. — As used in this Title: (a)
"Person" means an individual, partnership, association, corporation,
business trust, legal representative 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 the 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, 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.
ARTICLE 98. Application of Title. — This Title shall
not apply to farm tenancy or leasehold, domestic service and persons
working in their respective homes in needlework or in any cottage
industry duly registered in accordance with law.
CHAPTER II
Minimum Wage Rates
ARTICLE 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 RA 6727].
ARTICLE 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 the promulgation of this Code.
ARTICLE 101. Payment by results. — The Secretary of
Labor 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
ARTICLE 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 or as
stipulated in a collective bargaining agreement.
ARTICLE 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 weeks shall be subject to the following
conditions in the absence of a collective bargaining agreement or
arbitration award: chanroblesvirtualawlibrary
(1) That payments are made at intervals not exceeding
sixteen days, in proportion to the amount of work completed; and
(2) That final settlement is made upon completion of
the work.
ARTICLE 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 may prescribe
under conditions to ensure greater protection of wages.
ARTICLE 105. Direct payment of wages. — Wages shall
be paid directly to the workers to whom they are due, except:cralaw:red
(a) In cases of force majeure rendering such payments
impossible or under other special circumstances to be determined by the
Secretary of Labor 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 claimant, 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 or his representative. The
representative of the Secretary of Labor 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.
ARTICLE 106. 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 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.
ARTICLE 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.
ARTICLE 108. Posting of bond. — An employer or
indirect employer may require the contractor or sub-contractor 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 sub-contractor, as the case may be, fail to pay the same.
ARTICLE 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.
ARTICLE 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 provision of law to the contrary
notwithstanding. Such unpaid wages and monetary claims shall be paid in
full before the claims of the Government and other creditors may be
paid. (As amended by R. A. 6715)
ARTICLE 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 the wages, attorney's fees which exceed ten percent of the amount of
wages recovered.
CHAPTER IV
Prohibitions Regarding Wages
ARTICLE 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 the employer or from any other person or otherwise
make use of any store or services of such employer or any other person.
ARTICLE 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:cralaw:red
(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;chanroblesvirtualawlibrary
(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.
ARTICLE 114. Deposits for loss or damage. — No
employer shall require his worker to make deposits from which deduction
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 in appropriate rules and regulations.
ARTICLE 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.
ARTICLE 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.
ARTICLE 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.
ARTICLE 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.
ARTICLE 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
ARTICLE 120. Creation of the 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 RA 6727)
ARTICLE 121. Powers and Functions of the Commission.
— The Commission shall have the following powers and functions:cralaw:red
(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;chanroblesvirtualawlibrary
(b) To formulate policies and guidelines on wages,
incomes and productivity improvement at the enterprise, industry and
national levels;chanroblesvirtualawlibrary
(c) To prescribe rules and guidelines for the
determination of appropriate minimum wage and productivity measures at
the regional, provincial or industry levels;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(f) To review plans and programs of the regional
Tripartite Wages and Productivity Boards to determine whether these are
consistent with national development plans;chanroblesvirtualawlibrary
(g) To exercise technical and administrative
supervision over the Regional Tripartite Wages and Productivity Boards;chanroblesvirtualawlibrary
(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 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 RA 6727)
ARTICLE 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 jurisdiction:cralaw:red
(a) To develop plans, programs and projects relative
to wages, incomes and productivity improvement for their respective
regions;chanroblesvirtualawlibrary
(b) To determine and fix minimum wage rates
applicable in their respective regions, provinces or industries therein
and to issue the corresponding wage orders, subject to guidelines
issued by the Commission;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(d) To coordinate with the other Regional Boards as
may be necessary to attain the policy and intention of this Code;chanroblesvirtualawlibrary
(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 Department of
Trade and Industry as 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. chanroblesvirtualawlibrary
Each Regional Board to be headed by its chairman shall be assisted by a
Secretariat. (As amended by RA 6727)
ARTICLE 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 operate to 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 RA 6727)
ARTICLE 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:cralaw:red
(a) The demand for living wages;chanroblesvirtualawlibrary
(b) Wage adjustment vis-a-vis the consumer price
index;chanroblesvirtualawlibrary
(c) The cost of living and changes or increases
therein;chanroblesvirtualawlibrary
(d) The needs of workers and their families;chanroblesvirtualawlibrary
(e) The need to induce industries to invest in the
countryside;chanroblesvirtualawlibrary
(f) Improvements in standards of living;chanroblesvirtualawlibrary
(g) The prevailing wage levels;chanroblesvirtualawlibrary
(h) Fair return of the capital invested and capacity
to pay of employers;chanroblesvirtualawlibrary
(i) Effects in 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.
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
arbitrator or panel of 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.
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 RA 6727)
ARTICLE 125. Freedom to bargain. — No Wage Order
shall be construed to prevent workers in particular firms or
enterprises of industries from bargaining for higher wages with their
respective employer.
ARTICLE 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 RA 6727)
ARTICLE 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 RA 6727) chanroblesvirtualawlibrary
CHAPTER VI
Administration and Enforcement
ARTICLE 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 to investigate any fact,
condition or matter which may be necessary to determine violations or
which mayd 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.
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 RA 7730)
(c) The Secretary of Labor 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 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 may, by appropriate
regulations require employers to keep and maintain such employment
records as may be necessary ind of his visitorial and enforcement
powers under this Code.
ARTICLE 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 do not exceed five thousand pesos (P5,000). 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.
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 RA 6715)
TITLE III
Working Conditions for Special Groups of Employees
CHAPTER I
Employment of Women
ARTICLE 130. Night work prohibition. — No woman,
regardless of age, shall be employed or permitted or suffered to work,
with or without compensation:cralaw:red
(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 night time
unless she is given a period of rest of not less than nine (9)
consecutive hours.
ARTICLE 131. Exceptions. — The prohibitions
prescribed by the preceding Article shall not apply in any of the
following cases:cralaw:red
(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;chanroblesvirtualawlibrary
(b) In case of urgent work to be performed on
machineries, equipment or installation, to avoid serious loss which the
employer would otherwise suffer;chanroblesvirtualawlibrary
(c) Where the work is necessary to prevent serious
loss of perishable goods;chanroblesvirtualawlibrary
(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 service;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(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.
ARTICLE 132. Facilities for women. — The Secretary of
Labor and Employment shall establish standards that will insure the
safety and health of women employees. In appropriate cases, he shall by
regulations require any employer to:cralaw:red
(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;chanroblesvirtualawlibrary
(b) To establish separate toilet rooms and lavatories
for men and women and provide at least a dressing room for women;chanroblesvirtualawlibrary
(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.
ARTICLE 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. chanroblesvirtualawlibrary
(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 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 limited to,
the application or use of contraceptive pills and intra-uterine
devices.
(b) In coordination with other agencies of the
government engaged in the promotion of family planning, the Department
of Labor 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:cralaw:red
(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 grant 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.
ARTICLE 136. Stipulation against marriage. — It shall
be unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get married,
or to stipulate expressly or tacitly that upon getting married a woman
employee shall be deemed resigned or separated or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman employee merely
by reason of her marriage.
ARTICLE 137. Prohibited acts. — (a) It shall be
unlawful for any employer:cralaw:red
(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;chanroblesvirtualawlibrary
(2) To discharge such woman on account of her
pregnancy, or while on leave or in confinement due to her pregnancy;chanroblesvirtualawlibrary
(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 establishment, 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 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 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.
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 services 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:cralaw:red
(1) Eight hundred pesos (P800.00) a month for
househelpers in Manila, Quezon City, Pasay and Caloocan cities and the
municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas,
Malabon, Parañaque, Las Piñas, Pasig and Marikina in
Rizal Province.
(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 RA 7655)
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 househelper in addition to lodging, food and
medical attendance. chanroblesvirtualawlibrary
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 worker 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 such 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 records. — 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. Regulations of industrial homeworkers. —
The employment of industrial homeworkers and field personnel shall be
regulated by the Government through appropriate regulations issued by
the Secretary of Labor to ensure the general welfare and
protection of homeworkers and field personnel and the industries
employing them.
ARTICLE 154. Regulations of Secretary of 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 any employee, agent, contractor, sub-contractor or any other
person:cralaw:red
(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 himself or through some other
person. chanroblesvirtualawlibrary
BOOK FOUR
Health, Safety and Social
Welfare Benefits
TITLE I
Medical, Dental and Occupational Safety
CHAPTER I
Medical and Dental Services
ARTICLE 156. First-aid treatment. — Every employer
shall keep in his establishment such first-aid medicines and equipment
as the nature and conditions of work may require, in accordance with
such regulations as the Department of Labor shall prescribe.
The employer shall take steps for the training of a sufficient number
of employees in first-aid treatment.
ARTICLE 157. 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:cralaw:red
(a) The services of a full-time registered nurse when
the number of employees exceeds 50 but not more than 200 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 and Employment shall provide by appropriate regulations the
services that shall be required where the number of employees does not
exceed fifty (50) and shall determine by appropriate order hazardous
workplaces for purposes of this Article;chanroblesvirtualawlibrary
(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 200 but not more than 300 and;chanroblesvirtualawlibrary
(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 (100) employees, when the number of employees exceeds three
hundred (300).
In cases of hazardous workplaces, no employer shall engage the services
of a physician or dentist who cannot stay in the premises of the
establishment for at least two (2) hours, in the case of those engaged
on part-time basis, and not less than eight (8) hours in the case of
those employed on full-time basis. Where the undertaking is
non-hazardous in nature, the physician and dentist may be engaged on
retained basis, subject to such regulations as the Secretary of Labor
and Employment may prescribe to insure immediate availability of
medical and dental treatment and attendance in case of emergency. (As
amended by Presidential Decree No. 570-A, Section 26.)
ARTICLE 158. When emergency hospital not required. —
The requirement for an emergency hospital or dental clinic shall not be
applicable in case there is a hospital or dental clinic which is
accessible from the employer's establishment and he makes arrangements
for the reservation therein of the necessary beds and dental facilities
for the use of his employees. chanroblesvirtualawlibrary
ARTICLE 159. Health program. — The physician engaged
by an employer shall, in addition to his duties under this Chapter,
develop and implement a comprehensive occupational health program for
the benefit of the employees of his employer.
ARTICLE 160. Qualifications of health personnel. —
The physicians, dentists and nurses employed by employers pursuant to
this Chapter shall have the necessary training in industrial medicine
and occupational safety and health. The Secretary of Labor, in
consultation with industrial, medical and occupational safety and
health associations, shall establish the qualifications, criteria and
conditions of employment of such health personnel.
ARTICLE 161. Assistance of employer. — It shall be
the duty of any employer to provide all the necessary assistance to
ensure the adequate and immediate medical and dental attendance and
treatment to an injured or sick employee in case of emergency.
CHAPTER II
Occupational Health and Safety
ARTICLE 162. Safety and health standards. — The
Secretary of Labor and Employment shall by appropriate orders set and
enforce mandatory occupational safety and health standards to eliminate
or reduce occupational safety and health hazards in all work places and
institute new and update existing programs to ensure safe and healthful
working conditions in all places of employment.
ARTICLE 163. Research. — It shall be the
responsibility of the Department of Labor and Employment to conduct
continuing studies and researches to develop innovative methods,
techniques and approaches for dealing with occupational safety and
health problems; to discover latent diseases by establishing causal
connections between diseases and work in environmental conditions; and
to develop medical criteria which will assure insofar as practicable
that no employee will suffer impairment or diminution in health,
functional capacity or life expectancy as a result of his work and
working conditions.
ARTICLE 164. Training programs. — The Department of
Labor and Employment shall develop and implement training programs to
increase the number and competence of personnel in the field of
occupational safety and industrial health.
ARTICLE 165. 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 workplaces 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 piping 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 fees 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 and
Employment.
TITLE II
Employees' Compensation and State Insurance Fund
CHAPTER I
Policy and Definitions
ARTICLE 166. Policy. — The State shall promote and
develop a tax-exempt employees' compensation program whereby employees
and their dependents, in the event of work-connected disability or
death, may promptly secure adequate income benefit, and medical or
related benefits.
ARTICLE 167. Definition of terms. — As used in this
Title, unless the context indicates otherwise:cralaw:red
(a) "Code" means the Labor Code of the Philippines
instituted under Presidential Decree numbered four hundred forty-two,
as amended.
(b) "Commission" means the Employees' Compensation
Commission created under this Title.
(c) "SSS" means the Social Security System created
under Republic Act numbered Eleven hundred sixty-one, as amended.
(d) "GSIS" means the Government Service Insurance
System created under Commonwealth Act Numbered one hundred eighty-six,
as amended.
(e) "System" means the SSS or GSIS, as the case may
be.
(f) "Employer" means any person, natural or
juridical, employing the services of the employee.
(g) "Employee" means any person compulsorily covered
by the GSIS under Commonwealth Act Numbered One hundred eighty-six, as
amended, including members of the Armed Forces of the Philippines, and
any person employed as casual, emergency, temporary, substitute or
contractual; or any person compulsorily covered by the SSS under
Republic Act Numbered Eleven hundred sixty-one, as amended.
(h) "Person" means any individual, partnership, firm,
association, trust, corporation or legal representative thereof.
(i) "Dependents" means the legitimate, legitimated,
legally adopted or acknowledged natural child who is unmarried, not
gainfully employed, and not over 21 years of age or over 21 years of
age provided he is incapacitated and incapable of self-support due to a
physical or mental defect which is congenital or acquired during
minority; the legitimate spouse living with the employee; and the
parents of said employee wholly dependent upon him for regular support.
(j) "Beneficiaries" means the dependent spouse until
he/she remarries and dependent children, who are the primary
beneficiaries. In their absence, the dependent parents and, subject to
the restrictions imposed on dependent children, the illegitimate
children and legitimate descendants, who are the secondary
beneficiaries: Provided, that the dependent acknowledged natural child
shall be considered as a primary beneficiary when there are no other
dependent children who are qualified and eligible for monthly income
benefit. chanroblesvirtualawlibrary
(k) "Injury" means any harmful change in the human
organism from any accident arising out of and in the course of
employment.
(l) "Sickness" means illness definitely accepted as
an occupational disease listed by the Commission, or any illness caused
by employment, subject to proof that the risk of contracting the same
is increased by working conditions. For this purpose, the Commission is
empowered to determine and approve occupational diseases and
work-related illnesses that may be considered compensable based on
peculiar hazards of employment.
(m) "Death" means loss of life resulting from injury
or sickness.
(n) "Disability" means loss or impairment of a
physical or mental function resulting from injury or sickness.
(o) "Compensation" means all payments made under this
Title for income benefits and medical or related benefits.
(p) "Income benefit" means all payments made under
this Title to the employee or his dependents.
(q) "Medical benefit" means all payments made under
this Title to the providers of medical care, rehabilitation services
and hospital care.
(r) "Related benefit" means all payments made under
this Title for appliances and supplies.
(s) "Appliances" means crutches, artificialds and
other similar devices.
(t) "Supplies" means medicine and other medical,
dental or surgical items.
(u) "Hospital" means any medical facility, government
or private, authorized by law, an active member of good standing of the
Philippine Hospital Association and accredited by the Commission.
(v) "Physician" means any doctor of medicine duly
licensed to practice in the Philippines, an active member in good
standing of the Philippine Medical Association and accredited by the
Commission.
(w) "Wages" or "salary" insofar as they refer to the
computation of benefits defined in Republic Act No. 1161, as amended ,
for SSS and Presidential Decree No. 1146, as amended, for GSIS,
respectively, except that part in excess of Three Thousand Pesos.
(x) "Monthly salary credit" means the wage or salary
base for contributions as provided in Republic Act numbered eleven
hundred sixty-one, as amended, or the wages or salary.
(y) "Average monthly salary credit" in the case of
the SSS means the result obtained by dividing the sum of the monthly
salary credit in the sixty-month period immediately preceding the
semester of death or permanent disability by sixty (60), except where
the month of death or permanent disability falls within eighteen (18)
calendar months from the month of coverage, in which case it is the
result obtained by dividing the sum of all monthly salary credits paid
prior to the month of the contingency by the total number of calendar
months of coverage in the same period.
(z) "Average daily salary credit" in the case of the
SSS means the result obtained by dividing the sum of the six highest
monthly salary credits in the twelve-month period immediately preceding
the semester of sickness or injury by one hundred eighty (180), except
where the month of injury falls within twelve calendar months from the
first month of coverage, in which case it is the result obtained by
dividing the sum of all monthly salary credits by thirty (30) times the
number of calendar months of coverage in the same period.
In the case of the GSIS, the average daily salary credit shall be the
actual daily salary or wage or the monthly salary or wage divided by
the actual number of working days in the month of contingency.
(aa) "Quarter" means a period of three (3)
consecutive months ending on the last day of March, June, September and
December.
(bb) "Semester" means a period of two consecutive
quarters ending in the quarter of death, permanent disability, injury
or sickness.
(cc) "Replacement ratio." — The sum of twenty percent
and the quotient obtained by dividing three hundred by the sum of three
hundred forty and the average monthly salary credit.
(dd) "Credited years of service". — For a member
covered prior to January 1975, nineteen hundred seventy five minus the
calendar year of coverage, plus the number of calendar years in which
six or more contributions have been paid from January 1975 up to the
calendar year containing the semester prior to the contingency. For a
member covered in or after January 1975, the number of calendar years
in which six or more contributions have been paid from the year of
coverage up to the calendar year containing the semester prior to the
contingency.
(ee) "Monthly income benefit." — means the amount
equivalent to one hundred fifteen percent of the sum of the average
monthly salary credit multiplied by the replacement ratio; and one and
a half percent of the average monthly salary credit for each credited
year of service in excess of ten years: Provided, That the monthly
income benefit shall in no case be less than two hundred fifty pesos.
CHAPTER II
Coverage and Liability
ARTICLE 168. Compulsory coverage. — Coverage in the
State Insurance Fund shall be compulsory upon all employers and their
employees not over sixty (60) years of age: Provided, That an employee
who is over sixty (60) years of age and paying contributions to qualify
for the retirement or life insurance benefit administered by the System
shall be subject to compulsory coverage.
ARTICLE 169. Foreign employment. — The Commission
shall ensure adequate coverage of Filipino employees employed abroad,
subject to regulations as it may prescribe.
ARTICLE 170. Effective date of coverage. — Compulsory
coverage of the employer during the effectivity of this Title shall
take effect on the first day of his operation, and that of the employee
on the date of his employment.
ARTICLE 171. Registration. — Each employer and his
employees shall register with the System in accordance with its
regulations. chanroblesvirtualawlibrary
ARTICLE 172. Limitation of liability. — The State
Insurance Fund shall be liable for compensation to the employee or his
dependents, except when the disability or death was occasioned by the
employee's intoxication, willful intention to injure or kill himself or
another, notorious negligence, or otherwise provided under this Title.
ARTICLE 173. Extent of liability. — Unless otherwise
provided, the liability of the State Insurance Fund under this Title
shall be exclusive and in place of all other liabilities of the
employer to the employee, his dependents or anyone otherwise entitled
to receive damages on behalf of the employee or his dependents. The
payment of compensation under this Title shall not bar the recovery of
benefits as provided for in Section 699 of the Revised Administrative
Code, Republic Act Numbered Eleven hundred sixty-one, as amended,
Republic Act Numbered Six hundred ten, as amended, Republic Act
Numbered Forty-eight hundred sixty-four, as amended, and other laws
whose benefits are administered by the System or by other agencies of
the government. (As amended by PD 1921).
ARTICLE 174. Liability of third parties. — (a) When
the disability or death is caused by circumstances creating a legal
liability against a third party, the disabled employee or the
dependents in case of his death shall be paid by the System under this
Title. In case benefit is paid under this Title, the System shall be
subrogated to the rights of the disabled employee or the dependents in
case of his death, in accordance with the general law.
(b) Where the System recovers from such third party
damages in excess of those paid or allowed under this Title, such
excess shall be delivered to the disabled employee or other persons
entitled thereto, after deducting the cost of proceedings and expenses
of the System.
ARTICLE 175. Deprivation of benefits. — Except as
otherwise provided under this Title, no contract, regulation or device
whatsoever shall operate to deprive the employee or his dependents of
any part of the income benefits and medical or related services granted
under this Title. Existing medical services being provided by the
employer shall be maintained and continued to be enjoyed by their
employees.
CHAPTER III
Administration
ARTICLE 176. Employees Compensation Commission. — (a)
To initiate, rationalize and coordinate the policies of the employees'
compensation program, the Employees' Compensation Commission is hereby
created to be composed of five (5) ex-officio members, namely: the
Secretary of Labor and Employment as Chairman, the GSIS General
Manager, the SSS Administrator, the Chairman of the Philippine Medical
Care Commission, and the Executive Director of the ECC Secretariat, and
two appointive members, one of whom shall represent the employees and
the other, the employers, to be appointed by the President of the
Philippines for a term of six years. The appointive member shall have
at least five years experience in workmen's compensation or social
security programs. All vacancies shall be filled for the unexpired term
only. (As amended by Sec. 19 (c), E.O. 126).
(b) The Vice-Chairman of the Commission shall be
alternated each year between the GSIS General Manager and the SSS
Administrator. The presence of four members shall constitute a quorum.
Each member shall receive a per diem of two hundred pesos for every
meeting that is actually attended by him, exclusive of actual, ordinary
and necessary travel and representation expenses. In his absence, any
member may designate an official of the institution he serves on
full-time basis as his representative to act in his behalf. (As amended
by Sec. 2, PD 1368).
(c) The general conduct of the operations and
management functions of the GSIS or SSS under this Title shall be
vested in its respective chief executive officer, who shall be
immediately responsible for carrying out the policies of the
Commission.
(d) The Commission shall have the status and category
of a government corporation, and it is hereby deemed attached to the
Department of Labor for policy coordination and guidance. (As amended
by PD 1368).
ARTICLE 177. Powers and duties. — The Commission
shall have the following powers and duties:cralaw:red
(a) To assess and fix a rate of contribution from all
employers;chanroblesvirtualawlibrary
(b) To determine the rate of contribution payable by
an employer whose records show a high frequency of work accidents or
occupational diseases due to failure by the said employer to observe
adequate safety measures;chanroblesvirtualawlibrary
(c) To approve rules and regulations governing the
processing of claims and the settlement of disputes arising therefrom
as prescribed by the System;chanroblesvirtualawlibrary
(d) To initiate policies and programs toward adequate
occupational health and safety and accident prevention in the working
environment, rehabilitation other than those provided for under ARTICLE
190 hereof, and other related programs and activities, and to
appropriate funds therefor; (As Amended by PD 1368).
(e) To make the necessary actuarial studies and
calculations concerning the grant of constant help and income benefits
for permanent disability or death, and the rationalization of the
benefits for permanent disability and death under the Title with
benefits payable by the System for similar contingencies: Provided,
That the Commission may upgrade benefits and add new ones, subject to
approval of the President; and Provided, further, That the actuarial
stability of the State Insurance Fund shall be guaranteed: Provided,
finally, that such increases in benefits shall not require any
increases in contribution, except as provided for in paragraph (b)
hereof; (As amended by PD 1641).
(f) To appoint the personnel of its staff, subject to
civil service law and rules, but exempt from WAPCO law and regulations;chanroblesvirtualawlibrary
(g) To adopt annually a budget of expenditures of the
Commission and its staff chargeable against the State Insurance Funds:
Provided, That the SSS and GSIS shall advance on a quarterly basis the
remittances of allotment of the loading fund for this Commissions
operational expenses based on its annual budget as duly approved by the
Department of the Budget and Management; (As amended by Sec. 3, PD
1921).
(h) To have the power to administer oath and
affirmation, and to issue subpoena and subpoena duces tecum in
connection with any question or issue arising from appealed cases under
this Title;chanroblesvirtualawlibrary
(i) To sue and be sued in court;chanroblesvirtualawlibrary
(j) To acquire property, real or personal, which may
be necessary or expedient for the attainment of the purposes of this
Title;chanroblesvirtualawlibrary
(k) To enter into agreements or contracts for such
services andd as may be needed for the proper, efficient and stable
administration of the program; and
(l) To perform such other acts as it may deem
appropriate for the attainment of the purposes of the Commission and
proper enforcement of the provisions of this Title. (As amended by Sec.
18, PD 850).
ARTICLE 178. Management of funds. — All revenues
collected by the System under this Title shall be deposited, invested,
administered and disbursed in the same manner and under the same
conditions, requirements and safeguards as provided by Republic Act
numbered eleven hundred sixty-one, as amended, and Commonwealth Act
numbered one hundred eighty-six, as amended, with regard to such other
funds as are thereunder being paid to or collected by the SSS and GSIS,
respectively: Provided, That the Commission, SSS and GSIS may disburse
each year not more than 12 per cent of the contributions and investment
earnings collected for operational expenses, including occupational
health and safety programs, incidental to the carrying out of this
Title.
ARTICLE 179. Investment of funds. — Provisions of
existing laws to the contrary notwithstanding, all revenues as are not
needed to meet current operational expenses under this Title shall be
accumulated in a fund to be known as the State Insurance Fund, which
shall be used exclusively for payment of the benefits under this Title,
and no amount thereof shall be used for any other purpose. All amounts
accruing to the State Insurance Fund, which is hereby established in
the SSS and the GSIS, respectively, shall be deposited with any
authorized depository bank approved by the Commission, or invested with
due and prudent regard for the liquidity needs of the System. (As
amended by Sec. 4, PD 1368). chanroblesvirtualawlibrary
ARTICLE 180. Settlement of claims. — The System shall
have original and exclusive jurisdiction to settle any dispute arising
from this Title with respect to coverage, entitlement to benefits,
collection and payment of contributions and penalties thereon, or any
other matter related thereto, subject to appeal to the Commission,
which shall decide appealed cases within 20 working days from the
submission of the evidence.
ARTICLE 181. Review. — Decisions, orders or
resolutions of the Commission may be reviewed on certiorari by the
Supreme Court only on questions of law upon petition of an aggrieved
party within 10 days from notice thereof.
ARTICLE 182. Enforcement of decisions. — (a) Any
decision, order or resolution of the Commission shall become final and
executory if no appeal is taken therefrom within 10 days from notice
thereof. All awards granted by the Commission in cases appealed from
decisions of the System shall be effected within 15 days from receipt
of notice.
(b) In all other cases, decisions, orders and
resolutions of the Commission which have become final and executory
shall be enforced and executed in the same manner as decisions of the
Regional Trial Court, and the Commission shall have the power to issue
to the city or provincial sheriff or to the sheriff whom it may appoint
such writs of execution as may be necessary for the enforcement of such
decisions, orders or resolutions, and any person who shall fail or
refuse to comply therewith shall, upon application by the Commission,
be punished by the proper court for contempt.
CHAPTER IV
Contributions
ARTICLE 183. Employer's contributions. — (a) Under
such regulations as the System may prescribe, beginning as of the last
day of the month when an employee's compulsory coverage takes effect
and every month thereafter during his employment, his employer shall
prepare to remit to the System a contribution equivalent to one percent
of his monthly salary credit.
(b) The rate of contribution shall be reviewed
periodically and, subject to the limitations herein provided, may be
revised as the experience in risk, cost of administration, and actual
or anticipated as well as unexpected losses, may require.
(c) Contributions under this Title shall be paid in
their entirety by the employer and any contract or devise for the
deduction of any portion thereof from the wages or salaries of the
employees shall be null and void.
(d) When a covered employee dies, becomes disabled or
is separated from employment, his obligation to pay the monthly
contribution arising from the employment shall cease at the end of the
month of contingency and during such months that he is not receiving
wages or salary.
ARTICLE 184. Government guarantee. — The Republic of
the Philippines guarantees the benefits prescribed under this Title,
and accepts general responsibility for the solvency of the State
Insurance Fund. In case of any deficiency, the same shall be covered by
supplemental appropriations from the national government.
CHAPTER V
Medical Benefits
ARTICLE 185. Medical services. — Immediately after an
employee contracts sickness or sustains an injury, he shall be provided
by the System during the subsequent period of his disability with such
medical services and appliances as the nature of his sickness or injury
and progress of his recovery may require, subject to the expense
limitation prescribed by the Commission.
ARTICLE 186. Liability. — The System shall have the
authority to choose or order a change of physician, hospital or
rehabilitation facility for the employee, and shall not be liable for
compensation for any aggravation of the employee's injury or sickness
resulting from unauthorized changes by the employee of medical
services, appliances, supplies, hospitals, rehabilitation facilities or
physicians.
ARTICLE 187. Attending physician. — Any physician
attending an injured or sick employee shall comply with all the
regulations of the System and submit reports in prescribed forms at
such time as may be required concerning his condition or treatment. All
medical information relevant to the particular injury or sickness shall
on demand be made available to the employee or the System. No
information developed in connection with treatment or examination for
which compensation sought shall be considered as privileged
communication.
ARTICLE 188. Refusal of examination or treatment. —
If the employee unreasonably refuses to submit to medical examination
or treatment the System shall stop the payment of further compensation
during such time as such refusal continues. What constitutes an
unreasonable refusal shall be determined by the System which, may on
its own initiative determine the necessity, character, and sufficiency
of any medical services furnished or to be furnished.
ARTICLE 189. Fees and other charges. — All fees and
other charges for hospital services, medical care and appliances,
including professional fees, shall not be higher than those prevailing
in wards of hospitals for similar services to injured or sick persons
in general, and shall be subject to the regulations of the Commission.
Professional fees shall only be appreciably higher than those
prescribed under Republic Act number sixty-one hundred eleven, as
amended, otherwise known as the Philippine Medical Care Act of 1969.
ARTICLE 190. Rehabilitation services. — (a) The
System shall, as soon as practicable, establish a continuing program
for the rehabilitation of injured and handicapped employees, who shall
be entitled to rehabilitation services, which shall consist of medical,
surgical or hospital treatment, including appliances if he has been
handicapped by the injury, to help him become physically independent.
(b) As soon as practicable, the System shall
establish centers equipped and staffed to provide a balanced program of
remedial treatment, vocational assessment and preparation designed to
meet the individual needs of each handicapped employee to restore him
to suitable employment, including assistance as may be within its
resources to help each rehabilitee to develop his mental, vocational or
social potential.
CHAPTER VI
Disability Benefits
ARTICLE 191. Temporary total disability. — (a) Under
such regulations as the Commission may approve, any employee under this
Title who sustains an injury or contracts sickness resulting in
temporary total disability shall for each day of such a disability or
fraction thereof be paid by the System an income benefit equivalent to
90 percent of his average daily salary credit, subject to the following
conditions; the daily income benefit shall not be less than Ten Pesos,
nor more than Ninety Pesos, nor paid for a continuous period longer
than one hundred twenty days, except as otherwise provided for in the
Rules and the System shall not be notified of the injury or sickness.
(As amended by Sec. 2, EO 179 ).
(b) The payment of such income benefit shall be in
accordance with the regulations of the Commission. ( As amended by
Section 19, PD 850).
ARTICLE 192. Permanent total disability. — (a) Under
such regulations as the Commission may approve, any employee under this
Title who contracts sickness or sustains an injury resulting in his
permanent total disability shall, for each month until his death, be
paid by the System during such a disability, an amount equivalent to
the monthly income benefit, plus ten percent thereof for each dependent
child, but not exceeding five, beginning with the youngest and without
substitution: Provided, That the monthly income benefit shall be the
new amount of the monthly benefit for all covered pensioners, effective
upon approval of this Decree.
(b) The monthly income benefit shall be guaranteed
for five years, and shall be suspended if the employee is gainfully
employed or recovers from his permanent total disability or fails to
present himself for examination at least once a year upon notice by the
System, except as otherwise provided for in other laws, decrees, orders
or Letters of Instructions. (As amended by Section 5, PD 1641).
(c) The following disabilities shall be deemed total
and permanent:cralaw:red
(1) Temporary total disability lasting continuously
for more than one hundred twenty days except as otherwise provided for
in the Rules;chanroblesvirtualawlibrary
(2) Complete loss of sight of both eyes;chanroblesvirtualawlibrary
(3) Loss of two limbs at or above the ankle or wrist;chanroblesvirtualawlibrary
(4) Permanent complete paralysis of two limbs;chanroblesvirtualawlibrary
(5) Brain injury resulting in incurable imbecility or
insanity; and
(6) Such cases as determined by the Medical Director
of the System and approve by the Commission.
(d) The number of months of paid coverage shall be
defined and approximated by a formula to be approved by the Commission.
ARTICLE 193. Permanent partial disability. — (a)
Under such regulations as the Commission may approve, any employee
under this Title who contracts sickness or sustains an injury resulting
in permanent partial disability shall for each month not exceeding the
period designated herein, be paid by the System during such disability
an income benefit equivalent to the income benefit for permanent total
disability.
(b) The benefit shall be paid for not more than the
period designated in the following schedule:cralaw:red
Complete and permanent
loss of use of : Number of Months
One thumb 10
One index finger 8
One middle finger 6
One ring finger 5
One little finger 3
One big toe 6
Any toe 3
One arm 50
One hand 39
One foot 31
One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
Sight of one eye 25
(c) A loss of a wrist shall be considered as a loss
of the hand, and a loss of an elbow shall be considered as a loss of
the arm. A loss of an ankle shall be considered as a loss of the foot,
and a loss of a knee shall be considered as a loss of the leg. A loss
of more than one joint shall be considered as a loss of the whole
finger or toe, and a loss of only the first joint shall be considered
as a loss of one-half of the whole finger or toe: Provided, that such a
loss shall be either the functional loss of the use or physical loss of
the member. (As amended by Section 7, PD 1368).
(d) In cases of permanent partial disability less
than the total loss of the member specified in the preceding paragraph,
the same monthly income benefit shall be paid for a portion of the
period established for the total loss of the member in accordance with
the proportion that the partial loss bears to the total loss. If the
result is a decimal fraction, the same shall be rounded off to the next
higher integer.
(e) In cases of simultaneous loss of more than one
member or a part thereof as specified in this Article, the same monthly
income benefit shall be paid for a period equivalent to the sum of the
periods established for the loss of the member or a part thereof. If
the result is a decimal fraction, the same shall be rounded off to the
next higher integer.
(f) In cases of injuries or illnesses resulting in a
permanent partial disability not listed in the preceding schedule, the
benefit shall be an income benefit equivalent to the percentage of the
permanent loss of the capacity for work. (Section 7, PD 1368).
(g) Under such regulations as the Commission may
approve, the income benefit payable in case of permanent partial
disability may be paid in monthly pension or in lump sum if the period
covered does not exceed one year. (Section 7, PD 1368).
CHAPTER VII
Death Benefits
ARTICLE 194. Death. — (a) Under such regulations as
the Commission may approve, the System shall pay to the primary
beneficiaries upon the death of the covered employee under this Title
an amount equivalent to his monthly income benefit, plus 10 percent
thereof for each dependent child, but not exceeding five, beginning
with the youngest and without substitution except as provided for in
paragraph (j) of Article 167 hereof: Provided, however, That the
monthly income benefit shall be guaranteed for five years: Provided,
Finally, That if he has no primary beneficiary, the System shall pay to
his secondary beneficiaries the monthly income benefit but not to
exceed 60 months: Provided, finally, That the minimum death benefit
shall not be less than fifteen thousand pesos. (As amended by Sec. 4,
PD 1921).
(b) Under such regulations as the Commission may
approve, the System shall pay to the primary beneficiaries upon the
death of a covered employee who is under permanent total disability
under this Title, eighty percent of the monthly income benefit and his
dependents to the dependent's pension: Provided, That the marriage must
have been validly subsisting at the time of disability: Provided,
further, That if he has no primary beneficiary, the System shall pay to
his secondary beneficiaries the monthly pension excluding the dependent
pension, of the remaining balance of the five-year guaranteed period:
Provided, finally, That the minimum death benefit shall not be less
than fifteen thousand pesos.(As amended by Sec. 4, PD
1921). chanroblesvirtualawlibrary
(c) The monthly income benefit provided herein shall
be the new amount of the monthly income benefit for the surviving
beneficiaries upon the approval of this decree. (As amended by Sec. 8,
PD 1368).
(d) Funeral benefit. — A funeral benefit of Three
thousand pesos be paid upon the death of a covered employee or
permanently totally disabled pensioner. (As amended by Sec. 3, E.O.
179).
CHAPTER VIII
Provisions Common to Income Benefits
ARTICLE 195. Relationship and dependency. — All
questions of relationship and dependency shall be determined as of the
time of death.
ARTICLE 196. Delinquent contributions. — (a) An
employer who is delinquent in his contributions shall be liable to the
System for the benefits which may have been paid by the System to his
employees or their dependents and any benefit and expenses to which
such employer is liable shall constitute a lien on all his property,
real or personal, which is hereby declared to be preferred to any
credit except taxes. The payment by the employer of the lump sum
equivalent of such liability shall absolve him from the payment of the
delinquent contribution and penalty thereon with respect to the
employee concerned.
(b) Failure or refusal of the employer to pay or
remit the contributions herein prescribed shall not prejudice the right
of the employee or his dependents to the benefits under this Title. If
the sickness, injury, disability or death occurs before the System
receives any report of the name of his employee, the employer shall be
liable to the System for the lump sum equivalent of the benefits to
which such employee or his dependents may be entitled.
ARTICLE 197. Second injuries. — If any employee under
permanent partial disability suffers another injury which results in a
compensable disability greater than the previous injury, the State
Insurance Fund shall be liable for the income benefit of the new
disability: Provided, That if the new disability is related to the
previous disability, the System shall be liable only for the difference
in income benefits.
ARTICLE 198. Assignment of benefits. — No claim for
compensation under this Title is transferable, or liable to tax,
attachment, garnishment, levy or seizure by or under any legal process
whatsoever, either before or after receipt by the person or persons
entitled thereto, except to pay any debt of the employee to the System.
ARTICLE 199. Earned benefits. — Income benefits
shall, with respect to any period of disability, be payable in
accordance with this Title to an employee who is entitled to receive
wages, salaries or allowances for holidays, vacation or sick leaves,
and any award or benefit under a collective bargaining or other
agreement.
ARTICLE 200. Safety devices. — In case the employee's
injury or death was due to the failure of the employer to comply with
any law, or to install and maintain safety devices, or take other
precautions for the prevention of injury, said employer shall pay to
the State Insurance Fund a penalty of 25 per cent of the lump sum
equivalent of the income benefit payable by the System to the employee.
All employers, especially those who should have been paying a rate of
contribution higher than that required of them under this Title, are
enjoined to undertake and strengthen measures for the occupational
health and safety of their employees.
ARTICLE 201. Prescriptive period. — No claim for
compensation shall be given due course unless said claim is filed with
the System within three years from the time the cause of action
accrued. (As amended by Sec. 5, PD 1921).
ARTICLE 202. Erroneous payment. — (a) If the System
in good faith pays income benefit to a dependent who is inferior in
right to another dependent or with whom another dependent is entitled
to share, such payments shall discharge the System from liability,
unless and until such other dependent notifies the System of his claim
prior to the payments.
(b) In case of doubt as to the respective rights of
rival claimants, the System is hereby empowered to determine as to whom
payment should be made in accordance with such regulations as the
Commission may approve. If the money is payable to a minor or
incompetent, payment shall be made by the System to such person or
persons as it may consider to be best qualified to take care and
dispose of the minor's or incompetent's property for his benefit.
ARTICLE 203. Prohibition. — No agent, attorney or
other person pursuing or in charge of the preparation or filing of any
claim for benefit under this Title shall demand or charge for his
services any fee, and any stipulation to the contrary shall be null and
void. The retention or deduction of any amount from any benefit granted
under this Title for the payment of fees of such services is
prohibited. Violation of any provision of this Article shall be
punished by a fine of not less than five hundred pesos nor more than
five thousand pesos, or imprisonment for not less than six months nor
more than one year, or both, at the discretion of the court.
ARTICLE 204. Exemption from levy, tax, etc. — All
laws to the contrary notwithstanding, the State Insurance Fund and all
its assets shall be exempt from any tax, fee, charge, levy or customs
or import duty, and no law hereafter enacted shall apply to the State
Insurance Fund unless it is provided therein that the same is
applicable by expressly stating its name.
CHAPTER IX
Records, Reports and Penal Provisions
ARTICLE 205. Records of death or disability. — (a)
All employers shall keep a logbook to record chronologically the
sickness, injury or death of their employees, setting forth therein
their names, dates and places of the contingency, nature of the
contingency and absences. Entries in the logbook shall be made within
five days from notice or knowledge of the occurrence of the
contingency. Within five days after the entry in the logbook, the
employer shall report to the System only those contingencies it deems
to be work connected. chanroblesvirtualawlibrary
(b) All entries in the employer's logbook shall be
made by the employer or any of his authorized official after
verification of the contingencies or the employee's absences for a
period of a day or more. Upon request by the System, the employer shall
furnish the necessary certificate regarding information about any
contingency appearing in the logbook, citing the entry number, page
number and date. Such logbook shall be made available for inspection to
the duly authorized representative of the System.
(c) Should any employer fail to record in the logbook
an actual sickness, injury or death of any of his employees within the
period prescribed herein, give false information or withhold material
information already in his possession, he shall be held liable for 50
per cent of the lump sum equivalent of the income benefit to which the
employee may be found to be entitled, the payment of which shall accrue
to the State Insurance Fund.
(d) In case of payment of benefits for any claim
which is later determined to be fraudulent and the employer is found to
be a party to the fraud, such employer shall reimburse the System the
full amount of the compensation paid.
ARTICLE 206. Notice of sickness, injury or death. —
Notice of sickness, injury or death shall be given to the employer by
the employee or by his dependents or anybody on his behalf within five
days from the occurrence of the contingency. No notice to the employer
shall be required if the contingency is known to the employer or his
agents or representatives.
ARTICLE 207. Penal provisions. — (a) The penal
provisions of Republic Act numbered eleven hundred sixty-one, as
amended, and Commonwealth Act numbered one hundred eighty-six, as
amended, with regard to the funds as are thereunder being paid to,
collected or disbursed by the System, shall be applicable to the
collection, administration and disbursement of the funds under this
Title. The penal provisions on coverage shall also be applicable.
(b) Any person, who for the purpose of securing
entitlement to any benefit or payment under this Title or the issuance
of any certificate or document for any purpose connected with this
Title, whether for him or for some other person, commits fraud,
collusion, falsification, misrepresentation of facts or any other kind
of anomaly shall be punished with a fine of not less than five hundred
pesos nor more than five hundred thousand pesos and an imprisonment for
not less than six months nor more than one year, at the discretion of
the court.
(c) If the act penalized by this Article is committed
by any person who has been or is employed by the Commission or System,
or a recidivist, the imprisonment shall not be less than one year; if
committed by a lawyer, physician or other professional, he shall in
addition to the penalty prescribed herein be disqualified from the
practice of his profession; and if committed by any official, employee
or personnel of the Commission, System or any government agency, he
shall in addition to the penalty prescribed herein be dismissed with
prejudice to reemployment in the government service.
ARTICLE 208. Applicability. — This Title shall apply
only to injury, sickness, disability or death occurring on or after
January 1, 1975.
ARTICLE 208-A. Repeal. — All existing laws,
Presidential Decrees and Letters of Instructions which are inconsistent
with or contrary to this Decree, are hereby repealed: Provided, That in
the case of the GSIS, conditions for entitlement to benefits shall be
governed by the Labor Code, as amended: Provided, however, That the
formulas for computation of benefits, as well as the contribution base,
shall be those provided for under Commonwealth Act numbered one hundred
eighty-six, as amended by Presidential Decree No. 1146, plus 20 per
cent thereof. (As amended by Sec. 7, P.D. 1641).
TITLE III
Medicare
ARTICLE 209. Medical care. — The Philippine Medical
Care Plan shall be implemented as provided under Republic Act numbered
sixty-one hundred eleven, as amended. chanroblesvirtualawlibrary
TITLE IV
Adult Education
ARTICLE 210. Adult education. — Every employer shall
render assistance in the establishment and operation of adult education
programs for their workers and employees as prescribed by regulations
jointly approved by the Department of Labor and Employment and the
Department of Education, Culture and Sports.
BOOK FIVE
Labor Relations
TITLE I
Policy and Definitions
CHAPTER I
Policy
ARTICLE 211. Declaration of policy. — A. It is the
policy of the State:cralaw:red
(a) To promote and emphasize the primacy of free
collective bargaining and negotiations, including voluntary
arbitration, mediation and conciliation, as modes of settling labor or
industrial disputes;chanroblesvirtualawlibrary
(b) To promote free trade unionism as an instrument
for the enhancement of democracy and the promotion of social justice
and development;chanroblesvirtualawlibrary
(c) To foster the free and voluntary organization of
a strong and united labor movement;chanroblesvirtualawlibrary
(d) To promote the enlightenment of workers
concerning their rights and obligations as union members and as
employees;chanroblesvirtualawlibrary
(e) To provide an adequate administrative machinery
for the expeditious settlement of labor or industrial disputes;chanroblesvirtualawlibrary
(f) To ensure a stable but dynamic and just
industrial peace; and
(g) To ensure the participation of workers in
decision and policy-making processes affecting their rights, duties and
welfare.
B. To encourage a truly democratic method of
regulating the relations between the employers and employees by means
of agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to set
or fix wages, rates of pay, hours of work or other terms and conditions
of employment, except as otherwise provided under this Code.
CHAPTER II
Definitions
ARTICLE 212. Definitions. — (a) "Commission" means
the National Labor Relations Commission or any of its divisions, as the
case may be, as provided under this Code.
(b) "Bureau" means the Bureau of Labor Relations
and/or the Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the Department of
Labor.
(c) "Board" means the National Conciliation and
Mediation Board established under Executive Order No. 126.
(d) "Council" means the Tripartite Voluntary
Arbitration Advisory Council established under Executive Order No. 126,
as amended.
(e) "Employer" includes any person acting in the
interest of an employer, directly or indirectly. The term shall not
include any labor organization or any of its officers or agents except
when acting as employer.
(f) "Employee" includes any person in the employ of
an employer. The term shall not be limited to the employees of a
particular employer, unless this Code so explicitly states. It shall
include any individual whose work has ceased as a result of or in
connection with any current labor dispute or because of any unfair
labor practice if he has not obtained any other substantially
equivalent and regular employment.
(g) "Labor organization" means any union or
association of employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with employers
concerning terms and conditions of employment. chanroblesvirtualawlibrary
(h) "Legitimate labor organization" means any labor
organization duly registered with the Department of Labor and
Employment, and includes any branch or local thereof.
(i) "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.
(j) "Bargaining representative" means a legitimate
labor organization or any officer or agent of such organization whether
or not employed by the employer.
(k) "Unfair labor practice" means any unfair labor
practice as expressly defined by this Code.
(l) "Labor dispute" includes any controversy or
matter concerning terms or conditions of employment or the association
or representation of persons in negotiating, fixing, maintaining,
changing or arranging the terms and conditions of employment,
regardless of whether the disputants stand in the proximate relation of
employer and employee.
(m) "Managerial employee" is one who is vested with
powers or prerogatives to lay down and execute management policies
and/or to hire, transfer, suspend, lay-off, recall, discharge, assign
or discipline employees. Supervisory employees are those who, in the
interest of the employer, effectively recommend such managerial actions
if the exercise of such authority is not merely routinary or clerical
in nature but requires the use of independent judgment. All employees
not falling within any of the above definitions are considered
rank-and-file employees for purposes of this Book.
(n) "Voluntary Arbitrator" means any person
accredited by the Board as such, or any person named or designated in
the Collective Bargaining Agreement by the parties to act as their
Voluntary Arbitrator, or one chosen, with or without the assistance of
the National Conciliation and Mediation Board, pursuant to a selection
procedure agreed upon in the collective bargaining agreement, or any
official that may be authorized by the Secretary of Labor and
Employment to act as voluntary arbitrator upon the written request and
agreement of the parties to a labor dispute.
(o) "Strike" means any temporary stoppage of work by
the concerted action of employees as a result of an industrial or labor
dispute.
(p) "Lockout" means the temporary refusal of an
employer to furnish work as a result of an industrial or labor dispute.
(q) "Internal union dispute" includes all disputes or
grievances arising from any violation of or disagreement over any
provision of the constitution and by-laws of a union, including any
violation of the rights and conditions of union membership provided for
in this Code.
(r) "Strike breaker" means any person who obstructs,
impedes, or interferes with by force, violence, coercion, threats or
intimidation any peaceful picketing by employees during any labor
controversy affecting wages, hours or conditions of work or in the
exercise of the right of self-organization or collective bargaining.
(s) "Strike area" means the establishment,
warehouses, depots, plants or offices, including the sites or premises
used as run-away shops, of the employer struck against, as well as the
immediate vicinity actually used by picketing strikers in moving to and
fro before all points of entrance to and exit from said establishment.
(As amended by RA 6715)
TITLE II
National Labor Relations Commission
CHAPTER I
Creation and Composition
ARTICLE 213. National Labor Relations Commission. —
There shall be a National Labor Relations Commission which shall be
attached to the Department of Labor and Employment for program and
policy coordination only, composed of a Chairman and fourteen (14)
members.
Five (5) members each shall be chosen from among the nominees of the
workers and employers organizations, respectively. The Chairman and the
four (4) remaining members shall come from the public sector, with the
latter to be chosen from among the recommendees of the Secretary of
Labor and Employment.
Upon assumption into office, the members nominated by the workers and
employers organizations shall divest themselves of any affiliation with
or interest in the federation or association to which they belong.
The Commission may sit en banc or in five (5) divisions, each composed
of three (3) members. The Commission shall sit en banc only for
purposes of promulgating rules and regulations governing the hearing
and disposition of cases before any of its divisions and regional
branches and formulating policies affecting its administration and
operations. The Commission shall exercise its adjudicatory and all
other powers, functions, and duties through its divisions. Of the five
(5) divisions, the first and second divisions shall handle cases coming
from the National Capital Region and the third, fourth and fifth
divisions, cases from other parts of Luzon, from the Visayas and
Mindanao, respectively. The divisions of the Commission shall have
exclusive appellate jurisdiction over cases within their respective
territorial jurisdiction. chanroblesvirtualawlibrary
The concurrence of two (2) Commissioners of a division shall be
necessary for the pronouncement of a judgment or resolution. Whenever
the required membership in a division is not complete and the
concurrence of two (2) Commissioners to arrive at a judgment or
resolution cannot be obtained, the Chairman shall designate such number
of additional Commissioners from the other divisions as may be
necessary.
The conclusions of a division on any case submitted to it for decision
shall be reached in consultation before the case is assigned to a
member for the writing of the opinion. It shall be mandatory for the
division to meet for purposes of the consultation ordained therein. A
certification to this effect signed by the Presiding Commissioner of
the division shall be issued, and a copy thereof attached to the record
of the case and served upon the parties.
The Chairman shall be the Presiding Commissioner of the first division,
and the four (4) other members from the public sector shall be the
Presiding Commissioners of the second, third, fourth and fifth
divisions, respectively. In case of the effective absence or incapacity
of the Chairman, the Presiding Commissioner of the second division
shall be the Acting Chairman.
The Chairman,ded by the Executive Clerk of the Commission, shall have
administrative supervision over the Commission and its regional
branches and all its personnel, including the Executive Labor Arbiters
and Labor Arbiters.
The Commission, when sitting en banc, shall be assisted by the same
Executive Clerk, and, when acting thru its divisions, by said Executive
Clerk for its first division and four (4) other Deputy Executive Clerks
for the second, third, fourth and fifth divisions, respectively, in the
performance of such similar or equivalent functions and duties as are
discharged by the Clerk of Court and Deputy Clerks of Court of the
Court of Appeals. (As amended by RA 6715)
ARTICLE 214. Headquarters, branches and provincial
extension units. — The Commission and its First, Second, and Third
divisions shall have their main offices in Metropolitan Manila, and the
fourth and fifth divisions in the cities of Cebu and Cagayan de Oro,
respectively. The Commission shall establish as many regional branches
as there are regional offices of the Department of Labor and
Employment, sub-regional branches or provincial extension units. There
shall be as many labor Arbiters as may be necessary for the effective
and efficient operation of the Commission. Each regional branch shall
be headed by an Executive Labor Arbiter. (As amended by RA 6715)
ARTICLE 215. Appointment and qualifications. — The
Chairman and other Commissioners shall be members of the Philippine Bar
and must have been engaged in the practice of law in the Philippines
for at least fifteen (15) years, with at least five (5) years
experience or exposure in the field of labor-management relations, and
shall preferably be residents of the region where they are to hold
office. The Executive Labor Arbiters and Labor Arbiters shall likewise
be members of the Philippine Bar and must have been engaged in the
practice of law in the Philippines for at least seven (7) years, with
at least three (3) years experience or exposure in the field of
labor-management relations: Provided, however, that incumbent Executive
Labor Arbiters and Labor Arbiters who have been engaged in the practice
of law for at least five (5) years may be considered as already
qualified for purposes of reappointment as such under this Act.
The Chairman and the other Commissioners, the Executive Labor Arbiters
and Labor Arbiters shall hold office during good behavior until they
reach the age of sixty-five (65) years, unless sooner removed for cause
as provided by law or become incapacitated to discharge the duties of
their office.
The Chairman, the Division Presiding Commissioners and other
Commissioners shall all be appointed by the President, subject to
confirmation by the Commission on Appointments. Appointment to any
vacancy shall come from the nominees of the sector which nominated the
predecessor. The Executive Labor Arbiters and Labor Arbiters shall also
be appointed by the President, upon recommendation of the Secretary of
Labor and Employment, and shall be subject to the Civil Service Law,
rules and regulations.
The Secretary of Labor and Employment shall, in consultation with the
Chairman of the Commission, appoint the staff and employees of the
Commission, and its regional branches as the needs of the service may
require, subject to the Civil Service Law, rules and regulations, and
upgrade their current salaries, benefits and other emoluments in
accordance with law. (As amended by RA 6715)
ARTICLE 216. Salaries, benefits and other emoluments.
— The Chairman and members of the Commission shall receive an annual
salary at least equivalent to, and be entitled to the same allowances
and benefits as, those of the Presiding Justice and Associate Justices
of the Court of Appeals, respectively. The Executive Labor Arbiters
shall receive an annual salary at least equivalent to that of an
Assistance Regional Director of the Department of Labor and Employment
and shall be entitled to the same allowances and benefits as that of a
Regional Director of said Department. The Labor Arbiters shall receive
an annual salary at least equivalent to, and be entitled to the same
allowances and benefits as, that of an Assistant Regional Director of
the Department of Labor and Employment. In no case, however, shall be
the provision of this Article result in the diminution of existing
salaries, allowances and benefits of the aforementioned officials. (As
amended by RA 6715)
CHAPTER II
Powers and Duties
ARTICLE 217. Jurisdiction of Labor Arbiters and the
Commission. — (a) Except as otherwise provided under this Code, the
Labor Arbiters shall have original and exclusive jurisdiction to hear
and decide, within thirty (30) calendar days after the submission of
the case by the parties for decision without extension, even in the
absence of stenographic notes, the following cases involving all
workers, whether agricultural or non-agricultural:cralaw:red
(1) Unfair labor practice cases;chanroblesvirtualawlibrary
(2) Termination disputes;chanroblesvirtualawlibrary
(3) If accompanied with a claim for reinstatement,
those cases that workers may file involving wages, rate of pay, hours
of work and other terms and conditions of employment;chanroblesvirtualawlibrary
(4) Claims for actual, moral, exemplary and other
forms of damages arising from the employer-employee relations;chanroblesvirtualawlibrary
(5) Cases arising from any violation of Article 264
of this Code, including questions involving the legality of strikes and
lockouts; and
(6) Except claims for Employees Compensation, Social
Security, Medicare and maternity benefits, all other claims arising
from employer-employee relations, including those of persons in
domestic or household service, involving an amount exceeding five
thousand pesos (P5,000.00), whether or not accompanied with a claim for
reinstatement.
(b) The Commission shall have exclusive appellate
jurisdiction over all cases decided by Labor Arbiters.
(c) Cases arising from the interpretation or
implementation of collective bargaining agreements and those arising
from the interpretation or enforcement of company personnel policies
shall be disposed of by the Labor Arbiter by referring the same to the
grievance machinery and voluntary arbitration as may be provided in
said agreements. (As amended by RA 6715)
ARTICLE 218. Powers of the Commission. — The
Commission shall have the power and authority:cralaw:red
(a) To promulgate rules and regulations governing the
hearing and disposition of cases before it and its regional branches,
as well as those pertaining to its internal functions and such rules
and regulations as may be necessary to carry out the purposes of this
Code;chanroblesvirtualawlibrary
(b) To administer oaths, summon the parties to a
controversy, issue subpoenas requiring the attendance and testimony of
witnesses or the production of such books, papers, contracts, records,
statements of accounts, agreements, and others as may be material to a
just determination of the matter under investigation, and to testify in
any investigation or hearing conducted in pursuance of this Code;chanroblesvirtualawlibrary
(c) To conduct investigation for the determination of
a question, matter or controversy within its jurisdiction, proceed to
hear and determine the disputes in the absence of any party thereto who
has been summoned or served with notice to appear, adjourn its hearings
to any time and place, refer technical matters or accounts to an expert
and to accept his report as evidence after hearing of the parties upon
due notice, direct parties to be joined in or excluded from the
proceedings, correct, amend, or waive any error, defect or
irregularity, whether in substance or in form, give all such directions
as it may deem necessary or expedient in the determination of the
dispute before it, and dismiss any matter or refrain from further
hearing or from determining the dispute or part thereof, where it is
trivial or where further proceedings by the Commission are not
necessary or desirable; and chanroblesvirtualawlibrary
(d) To hold any person in contempt direct or
indirectly and impose appropriate penalties therefor in accordance with
law.
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 to
subscribe an affidavit or deposition when lawfully required to do so,
may summarily adjudged in direct contempt by said officials and
punished by fine not exceeding five hundred pesos (P500) or
imprisonment not exceeding five (5) days, or both if it be the
Commission or a member thereof, or by a fine not exceeding one hundred
pesos (P100) or imprisonment not exceeding one (1) day, or both if it
be a Labor Arbiter.
The person 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 subject 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
unappealable. Indirect contempt shall be dealt with by the Commission
or Labor Arbiter in the manner prescribed under Rule 71 of the Revised
Rules of Court; and
(e) To enjoin or restrain any actual or threatened
commission of any or all prohibited or unlawful acts or to require the
performance of a particular act in any labor dispute which, if not
restrained or performed forthwith, may cause grave or irreparable
damage to any party: Provided, That no temporary or permanent
injunction in any case involving or growing out of a labor dispute as
defined in this Code shall be issued except after hearing the testimony
of witnesses, with opportunity for cross-examination, in support of the
allegations of a complaint made under oath, and testimony in opposition
thereto, if offered, and only after a finding of fact by the
Commission, to the effect:cralaw:red
(1) That prohibited or unlawful acts have been
threatened and will be committed and will be continued unless
restrained, or have been committed and will be continued unless
restrained, but no injunction or temporary restraining order shall be
issued on account of any threat, prohibited or unlawful act, except
against the person or persons, association or organization making the
threat or committing the prohibited or unlawful act or actually
authorizing or ratifying the same after actual knowledge thereof;chanroblesvirtualawlibrary
(2) That substantial and irreparable injury to
complainant's property will follow;chanroblesvirtualawlibrary
(3) That, as to each item of relief to be granted,
greater injury will be inflicted upon complainant by the denial of
relief than will be inflicted upon defendants by the granting of
relief;chanroblesvirtualawlibrary
(4) That complainant has no adequate remedy at law;
and
(5) That the public officers charged with the duty to
protect complainant's property are unable or unwilling to furnish
adequate protection.
Such hearing shall be held after due and personal notice thereof has
been served, in such manner as the Commission shall direct, to all
known persons against whom relief is sought, and also to the Chief
Executive and other public officials of the province or city within
which the unlawful acts have been threatened or committed charged with
the duty to protect complainant's property: Provided, however, That if
a complainant shall also allege that, unless a temporary restraining
order shall be issued without notice, a substantial and irreparable
injury to complainant's property will be unavoidable, such a temporary
restraining order may be issued upon testimony under oath, sufficient,
if sustained, to justify the Commission in issuing a temporary
injunction upon hearing after notice. Such a temporary restraining
order shall be effective for no longer than twenty (20) days and shall
become void at the expiration of said twenty (20) days. No such
temporary restraining order or temporary injunction shall be issued
except on condition that complainant shall first file an undertaking
with adequate security in an amount to be fixed by the Commission
sufficient to recompense those enjoined for any loss, expense or damage
caused by the improvident or erroneous issuance of such order or
injunction, including all reasonable costs, together with a reasonable
attorney's fee, and expense of defense against the order or against the
granting of any injunctive relief sought in the same proceeding and
subsequently denied by the Commission.
The undertaking herein mentioned shall be understood to constitute an
agreement entered into by the complainant and the surety upon which an
order may be rendered in the same suit or proceeding against said
complainant and surety, upon a hearing to assess damages, of which
hearing complainant and surety shall have reasonable notice, the said
complainant and surety submitting themselves to the jurisdiction of the
Commission for that purpose. But nothing herein contained shall deprive
any party having a claim or cause of action under or upon such
undertaking from electing to pursue his ordinary remedy by suit at law
or in equity: Provided, further, That the reception of evidence for the
application of a writ of injunction may be delegated by the Commission
to any of its Labor Arbiters who shall conduct such hearings in such
places as he may determine to be accessible to the parties and their
witnesses and shall submit thereafter his recommendation to the
Commission. (As amended by RA 6715)
ARTICLE 219. Ocular inspection. — The Chairman, any
Commissioner, Labor Arbiter or their duly authorized representatives
may at any time during working hours conduct an ocular inspection on
any establishment, building, ship or vessel, place or premises,
including any work, material, implement, machinery, appliance or any
object therein, and ask any employee, laborer or any person as the case
may be for any information or data concerning any matter or question
relative to the object of the investigation.
ARTICLE 220. 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. (Repealed by Sec. 16, BP Blg.
130).
ARTICLE 221. Technical rules not binding and prior
resort to amicable settlement. — In any proceeding before the
Commission or any of the Labor Arbiters, the rules of evidence
prevailing in courts of law or equity shall not be controlling, and it
is the spirit and intention of this Code that the Commission and its
members and the Labor Arbiters shall use every and all reasonable means
to ascertain the facts in each case speedily and objectively, without
regard to technicalities of law or procedure, all in the interest of
due process. In any proceeding before the Commission or any Labor
Arbiter, the parties may be represented by legal counsel but it shall
be the duty of the Chairman, any Presiding Commissioner or Commissioner
or any Labor Arbiter to exercise complete control of the proceedings at
all stages.
Any provision of law to the contrary notwithstanding, the Labor Arbiter
shall exert all efforts towards the amicable settlement of a labor
dispute within his jurisdiction on or before the first hearing. The
same rule shall apply to the Commission in the exercise of its original
jurisdiction. (As amended by RA 6715)
ARTICLE 222. Appearances and fees. — (a) Non-lawyers
may appear before the Commissioner or any Labor Arbiter only:cralaw:red
1. If they represent themselves; or
2. If they represent their organization or members
thereof.
(b) No attorney's fees, negotiation fees or similar
charges of any kind arising from any collective bargaining negotiations
or conclusion of the collective agreement shall be imposed on any
individual member of the contracting union: Provided, however, That
attorney's fees may be charged against union funds in an amount to be
agreed upon by the parties. Any contract, agreement or arrangement of
any sort to the contrary shall be null and void. chanroblesvirtualawlibrary
CHAPTER III
Appeal
ARTICLE 223. Appeal. — Decisions, awards, or orders
of the Labor Arbiter are final and executory unless appealed to the
Commission by any or both parties within ten (10) calendar days from
receipt of such decisions, awards, or orders. Such appeal may be
entertained only on any of the following grounds: chanroblesvirtualawlibrary
(a) If there is prima facie evidence of abuse of
discretion on the part of the Labor Arbiter;chanroblesvirtualawlibrary
(b) If the decision, order or award was secured
through fraud or coercion, including graft and corruption;chanroblesvirtualawlibrary
(c) If made purely on questions 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.
In case of a judgment involving 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
Commission in the amount equivalent to the monetary award in the
judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed
or separated employee, insofar as the reinstatement aspect is
concerned, shall immediately be executory, even pending appeal. The
employee shall either be admitted back to work under the same terms and
conditions prevailing prior to his dismissal or separation or, at the
option of the employer, merely reinstated in the payroll. The posting
of a bond by the employer shall not stay the execution for
reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission or the
Labor Arbiter shall impose reasonable penalty, including fines or
censures, 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) calendar days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days
from receipt of the answer of the appellee. The decision of the
Commission shall be final and executory after ten (10) calendar days
from receipt thereof by the parties.
Any law enforcement agency may be deputized by the Secretary of Labor
and Employment or the Commission in the enforcement of decisions,
awards, or orders. (As amended by RA 6715)
ARTICLE 224. Execution of decisions, orders, or
awards. — (a) The Secretary of Labor and Employment or any Regional
Director, the Commission or any Labor Arbiter or Med-Arbiter, or the
voluntary arbitrator or panel of voluntary arbitrators may, motu propio
or on motion of any interested party, issue a writ of execution on a
judgment within five (5) years from the date it becomes final and
executory, requiring a sheriff or a duly deputized officer to execute
or enforce final decisions, orders or awards of the Secretary of Labor
and Employment or Regional Director, the Commission, or the Labor
Arbiter or Med-Arbiter, or voluntary arbitrator or panel of voluntary
arbitrators. In any case, it shall be the duty of the responsible
officer to separately furnish immediately the counsel of record and the
parties with copies of said decisions, orders or awards. Failure to
comply with the duty prescribed herein shall subject such responsible
officer to appropriate administrative sanctions.
(b) The Secretary of Labor and Employment, and the
Chairman of the Commission may designate special sheriffs and take any
measure under existing laws to ensure compliance with their decisions,
orders or awards and those of Labor Arbiters and voluntary arbitrators
or panel of voluntary arbitrators, including the imposition of
administrative fines which shall not be less than five hundred pesos
(P500.00) nor more than ten thousand pesos (P10,000.00). (As amended by
RA 6715).
ARTICLE 225. Contempt powers of the Secretary of
Labor and Employment. — In the exercise of his powers under this Code,
the Secretary of Labor and Employment may hold any person in direct or
indirect contempt and impose the appropriate penalties therefor.
TITLE III
Bureau of Labor Relations
ARTICLE 226. Bureau of Labor Relations. — The Bureau
of Labor Relations and the Labor Relations Divisions in the regional
offices of the Department of Labor and Employment 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 agreements
which shall be the subject of grievance procedure and/or voluntary
arbitration.
The Bureau shall have fifteen (15) calendar days to act on labor cases
before it, subject to extension by agreement of the parties. (As
amended by RA 6715)
ARTICLE 227. Compromise agreements. — Any compromise
settlement, including those involving labor standard laws, voluntarily
agreed upon by the parties with the assistance of the Bureau or the
regional office of the Secretary of Labor and Employment, shall be
final and binding upon the parties. The National Labor Relations
Commission or any court shall not assume jurisdiction over issues
involved therein except in case of non-compliance thereof or if there
is prima facie evidence that the settlement was obtained through fraud,
misrepresentation, or coercion.
ARTICLE 228. Indorsement of case to Labor Arbiters. —
(a) Except as provided in paragraph (b) of this Article, the Labor
Arbiter shall entertain only cases indorsed to them for compulsory
arbitration by the Bureau or by the Regional Director of the Department
of Labor and Employment. All parties to a case shall be furnished by
the Bureau or by the Regional Director with a written notice of such
indorsement or non-indorsement. The indorsement or non-indorsement of
the Regional Director may be appealed to the Bureau within ten working
days from receipt of the notice.
(b) The parties may, at any time, by mutual
agreement, withdraw a case from the Conciliation Section and jointly
submit it to a Labor Arbiter, except deadlocks in collective
bargaining. (Repealed by BP Blg. 130).
ARTICLE 229. Issuance of subpoenas. — The Bureau
shall have the power to require the appearance of any person or the
production of any paper, document or matter relevant to a labor dispute
under its jurisdiction either at the request of any interested party or
at its own initiative.
ARTICLE 230. Appointment of bureau personnel. — The
Secretary of Labor and Employment may appoint, in addition to the
present personnel of the Bureau and the Industrial Relations Divisions,
such number of examiners and other assistants as may be necessary to
carry out the purpose of this Code. (As amended by RA 6715)
ARTICLE 231. Registry of unions and file of
collective agreements. — The Bureau shall keep a registry of legitimate
labor organizations. The Bureau shall also maintain a file of all
collective bargaining agreements and other related agreements and
records of settlement of labor disputes, and copies of orders, and
decisions of voluntary arbitrators or panel or voluntary arbitrators.
The file shall be open and accessible to interested parties under
conditions prescribed by the Secretary of Labor and Employment,
provided that no specific information submitted in confidence shall be
disclosed unless authorized by the Secretary, or when it is at issue in
any judicial litigation or when public interest or national security so
requires. chanroblesvirtualawlibrary
Within thirty (30) days from the execution of a collective bargaining
agreement, the parties shall submit copies of the same directly to the
Bureau or the Regional Offices of the Department of Labor and
Employment for registration accompanied with verified proofs of its
posting in two conspicuous places in the place of work and ratification
by the majority of all the workers in the bargaining unit. The Bureau
or Regional Offices shall act upon the application for registration of
such collective bargaining agreement within five (5) calendar days from
receipt thereof. The Regional Offices shall furnish the Bureau with a
copy of the collective bargaining agreement within five (5) days from
its submission.
The Bureau or Regional Office shall assess the employer for every
collective bargaining agreement a registration fee of not less than one
thousand pesos (P1,000.00) or in any other amount as may be deemed
appropriate and necessary by the Secretary of Labor and Employment for
the effective and efficient administration of the voluntary arbitration
program. Any amount collected under this provision shall accrue to the
Special Voluntary Arbitration Program.
The Bureau shall also maintain a file, and shall undertake or assist in
the publication, of all final decisions, orders and awards of the
Secretary of Labor and Employment, Regional Directors and the
Commission. (As amended by RA 6715)
ARTICLE 232. Prohibition on certification election. —
The Bureau shall not entertain any petition for certification election
or any other action which may disturb the administration of duly
registered existing collective bargaining agreements affecting the
parties except under Articles 253, 253-A and 256 of this Code. (As
amended by RA 6715)
ARTICLE 233. Privileged communication. — Information
and statements made at conciliation proceedings shall be treated as
privileged communication and shall not be used as evidence in the
Commission. Conciliators and similar officials shall not testify in any
court or body regarding any matters taken up at conciliation
proceedings conducted by them.
TITLE IV
Labor Organizations
CHAPTER I
Registration and Cancellation
ARTICLE 234. Requirements of registration. — Any
applicant labor organization, association or group of unions or workers
shall acquire legal personality and shall be entitled to the rights and
privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following
requirements:cralaw:red
(a) Fifty-pesos (P50.00) registration fee;chanroblesvirtualawlibrary
(b) The names of its officers, their addresses, the
principal address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in
such meetings;chanroblesvirtualawlibrary
(c) The names of all its members comprising at least
twenty 20% percent of all the employees in the bargaining unit where it
seeks to operate;chanroblesvirtualawlibrary
(d) If the applicant has been in existence for one or
more years, copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of
the applicant union, the minutes of its adoption or ratification and
the list of the members who participated in it.
ARTICLE 235. Action on application. — The Bureau
shall act on all applications for registration within thirty (30) days
from filing.
All requisite documents and papers shall be certified under oath by the
Secretary or the treasurer of the organization, as the case may be, and
attested to by its president.
ARTICLE 236. Denial of registration; appeal. — The
decision of the Labor Relations Division in the regional office denying
registration may be appealed by the applicant union to the Bureau
within ten days from receipt of notice thereof.
ARTICLE 237. Additional requirements for federations
or national unions. — Subject to Article 238 if the applicant for
registration is a federation or a national union, it shall, in addition
to the requirements of the preceding Articles, submit the following:cralaw:red
(a) Proof of the affiliation of at least ten locals
or chapters, each of which must be a duly recognized collective
bargaining agent in the establishment or industry in which it operates,
supporting the registration of such applicant federation or national
union;chanroblesvirtualawlibrary
(b) The names and addresses of the companies where
the locals or chapters operate and the list of all the members in each
company involved.
ARTICLE 238. Conditions for registration of
federations or national unions. — No federation or national union shall
be registered to engage in any organizational activity in more than one
industry in any area or region, and no federation or national union
shall be registered to engage in any organizational activity in more
than one industry all over the country.
The federation or national union which meets the requirements and
conditions herein prescribed may organize the affiliate locals and
chapters without registering such locals or chapters with the Bureau.
Locals or chapters shall have the same rights and privileges as if they
were registered in the Bureau, provided that such federation or
national union organizes such locals or chapters within its assigned
organization field of activity as may be prescribed by the Secretary of
Labor and Employment.
The Bureau shall see to it that federations and national unions shall
only organize locals and chapters within a specific industry or
region.]
* ARTICLE 238. Cancellation of registration, appeal.
— The certificate of registration of any legitimate labor organization,
whether national or local, shall be cancelled by the Bureau if it has
reason to believe, after due hearing, that the said labor organization
no longer meets one or more of the requirements herein prescribed.
[The Bureau upon approval of this Code shall immediately institute
cancellation proceedings and take such other steps as may be necessary
to restructure all existing registered labor organizations in
accordance with the objective envisioned above.] (Repealed by E.O. 111)
ARTICLE 239. Grounds for cancellation of union
registration. — The following shall constitute grounds for cancellation
of union registration:cralaw:red
(a) Misrepresentation, false statement or fraud in
connection with the adoption or ratification of the constitution and
by-laws or amendments thereto, the minutes of ratification, and the
list of members who took part in the ratification;chanroblesvirtualawlibrary
(b) Failure to submit the documents mentioned in the
preceding paragraph within thirty (30) days from adoption or
ratification of the constitution and by-laws or amendments thereto;chanroblesvirtualawlibrary
(c) Misrepresentation, false statement or fraud in
connection with the election of officers, minutes of the election of
officers and the list of voters, or failure to submit these documents
together with the list of the newly elected/appointed officers and
their postal addresses within thirty (30) days from
election; chanroblesvirtualawlibrary
(d) Failure to submit the annual financial report to
the Bureau within thirty (30) days after the closing of every fiscal
year and misrepresentation, false entries or fraud in the preparation
of the financial report itself;chanroblesvirtualawlibrary
(e) Acting as a labor contractor or engaging in the
"cabo" system, or otherwise engaging in any activity prohibited by law;chanroblesvirtualawlibrary
(f) Entering into collective bargaining agreements
which provide terms and conditions of employment below minimum standard
established by law;chanroblesvirtualawlibrary
(g) Asking for or accepting attorney's fees or
negotiation fees from employers;chanroblesvirtualawlibrary
(h) Other than for mandatory activities under this
Code, checking off special assessments or any other fees without duly
signed individual written authorizations of the members;chanroblesvirtualawlibrary
(i) Failure to submit a list of individual members to
the Bureau once a year or whenever required by the Bureau; and
(j) Failure to comply with requirements under
Articles 237 and 238.
ARTICLE 240. Equity of the incumbent. — All existing
federations and national unions which meet the qualifications of a
legitimate labor organization and none of the grounds for cancellation
shall continue to maintain their existing affiliates regardless of the
nature of the industry and the location of the affiliates.
[Incumbent affiliates of existing federations or national unions may
disaffiliate only for the purpose of joining a federation or national
union in the industry or region in which it properly belongs or for the
purpose of operating as an independent labor group.] (Repealed by
EO 111).
CHAPTER II
Rights and Conditions of Membership
ARTICLE 241. Rights and conditions of membership in a
labor organization. — The following are the rights and conditions of
membership in a labor organization:cralaw:red
(a) No arbitrary or excessive initiation fees shall
be required of the members of a legitimate labor organization nor shall
arbitrary, excessive or oppressive fine and forfeiture be imposed;chanroblesvirtualawlibrary
(b) The members shall be entitled to full and
detailed reports from their officers and representatives of all
financial transactions as provided for in the constitution and by-laws
of the organization;chanroblesvirtualawlibrary
(c) The members shall directly elect their officers
in the local union, as well as their national officers in the national
union or federation to which they or their local union is affiliated,
by secret ballot at intervals of five (5) years. No qualification
requirement for candidacy to any position shall be imposed other than
membership in good standing in subject labor organization. The
secretary or any other responsible union officer shall furnish the
Secretary of Labor and Employment with a list of the newly-elected
officers, together with the appointive officers or agents who are
entrusted with the handling of funds within thirty (30) calendar days
after the election of officers or from the occurrence of any change in
the list of officers of the labor organization. (As amended by RA
6715);chanroblesvirtualawlibrary
(d) The members shall determine by secret ballot,
after due deliberation, any question of major policy affecting the
entire membership of the organization, unless the nature of the
organization or force majeure renders such secret balloting
impractical, in which case the board of directors of the organization
may make the decision in behalf of the general membership.
(e) No labor organization shall knowingly admit as
member or continue in membership any individual who belongs to a
subversive organization or who is engaged directly or indirectly in any
subversive activity;chanroblesvirtualawlibrary
(f) No person who has been convicted of a crime
involving moral turpitude shall be eligible for election as a union
officer or for appointment to any position in the union;chanroblesvirtualawlibrary
(g) No officer, agent or member of a labor
organization shall collect any fees, dues, or other contributions in
its behalf or make any disbursement of its moneys or funds unless he is
duly authorized pursuant to its constitution and by-laws;chanroblesvirtualawlibrary
(h) Every payment of fees, dues or other
contributions by a member shall be evidenced by a receipt signed by the
officer or agent making the collection and entered into the record of
the organization to be kept and maintained for the purpose;chanroblesvirtualawlibrary
(i) The funds of the organization shall not be
applied for any purpose or object other than those expressly provided
by its constitution and by-laws or those expressly authorized by
written resolution adopted by the majority of the members at a general
meeting duly called for the purpose;chanroblesvirtualawlibrary
(j) Every income or revenue of the organization shall
be evidenced by a record showing its source, and every expenditure of
its funds shall be evidenced by a receipt from the person to whom the
payment is made, which shall state the date, place and purpose of such
payment. Such record or receipt shall form part of the financial
records of the organization.
Any action involving the funds of the organization shall prescribe
after three (3) years from the date of submission of the annual
financial report to the Department of Labor and Employment or from the
date the same should have been submitted as required by law, whichever
comes earlier: Provided, That this provision shall apply only to a
legitimate labor organization which has submitted the financial report
requirements under this Code: Provided, further, That failure of any
labor organization to comply with the periodic financial reports
required by law and such rules and regulations promulgated thereunder
six (6) months after the effectivity of this Act shall automatically
result in the cancellation of union registration of such labor
organization. (As amended by RA 6715);chanroblesvirtualawlibrary
(k) The officers of any labor organization shall not
be paid any compensation other than the salaries and expenses due to
their positions as specifically provided for in its constitution and
by-laws or in a written resolution duly authorized by a majority of all
the members at a general membership meeting duly called for the
purpose. The minutes of the meeting and the list of participants and
ballots cast shall be subject to inspection by the Secretary of Labor
and Employment or his duly authorized representatives. Any
irregularities in the approval of the resolutions shall be a ground for
impeachment or expulsion from the organization;chanroblesvirtualawlibrary
(l) The treasurer of any labor organization and every
officer thereof who is responsible for the accounts of such
organization or for the collection, management, disbursement, custody
or control of the funds, moneys and other properties of the
organization, shall render to the organization and to its members a
true and correct account of all moneys received and paid by him since
he assumed office or since the last date on which he rendered such
account and of the balance remaining in his hands at the time of
rendering such account, and of all bonds, securities and other
properties of the organization entrusted to his custody or under his
control. The rendering of such account shall be made.
(1) At least once a year within thirty (30) days
after the close of its fiscal year;chanroblesvirtualawlibrary
(2) At such other times as may be required by a
resolution of the majority of the members of the organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and a copy
thereof shall be furnished the Secretary of Labor and Employment;chanroblesvirtualawlibrary
(m) The books of accounts and other records of the
financial activities of any labor organization shall be opened to
inspection by any officer or member thereof during office
hours; chanroblesvirtualawlibrary
(n) No special assessment or other extraordinary fees
may be levied upon the members of a labor organization unless
authorized by a written resolution of a majority of all the members at
a general membership meeting duly called for the purpose. The secretary
of the organization shall record the minutes of the meeting including
the list of all members present, the votes cast, the purpose of the
special assessment or fees and the recipient of such assessment or
fees. The record shall be attested to by the president;chanroblesvirtualawlibrary
(o) Other than for mandatory activities under the
Code, no special assessment, attorney's fees, negotiation fees or any
other extraordinary fees may be checked off from any amount due an
employee without an individual written authorization duly signed by the
employee. The authorization should specifically state the amount,
purpose and beneficiary of the deduction; and
(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 thirty (30%)
per cent of all the members of a union or any member or members
specifically concerned may report such violation to the Bureau. The
Bureau shall have the power to hear and decide any reported violation
and to mete appropriate penalty.
Criminal and civil liabilities arising from violations of above rights
and conditions of membership shall continue to be under the
jurisdiction of ordinary courts.
CHAPTER III
Rights of Legitimate Labor Organizations
ARTICLE 242. Rights of legitimate labor
organizations. — A legitimate labor organization shall have the right:cralaw:red
(a) To act as the representative of its members for
the purpose of collective bargaining;chanroblesvirtualawlibrary
(b) To be certified as the exclusive representative
of all the employees in an appropriate collective bargaining unit for
purposes of collective bargaining;chanroblesvirtualawlibrary
(c) To be furnished by the employer, upon written
request, with his annual audited financial statements, including the
balance sheet and the profit and loss statement, within thirty (30)
calendar days from the date of receipt of the request, after the union
has been duly recognized by the employer or certified as the sole and
exclusive bargaining representative of the employees in the bargaining
unit, or within sixty (60) calendar days before the expiration of the
existing collective bargaining agreement, or during the collective
bargaining negotiation;chanroblesvirtualawlibrary
(d) To own property, real or personal, for the use
and benefit of the labor organization and its members;chanroblesvirtualawlibrary
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to
benefit the organization and its members, including cooperative,
housing welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the
contrary, the income, and the properties of legitimate labor
organizations, including grants, endowments, gifts, donations and
contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and
exclusively used for their lawful purposes, shall be free from taxes,
duties, and other assessments. The exemptions provided herein may be
withdrawn only by a special law expressly repealing this provision. (As
amended by RA 6715)
TITLE V
Coverage
ARTICLE 243. Coverage and employees' right to
self-organization. — All persons employed in commercial, industrial and
agricultural enterprises and in religious, charitable, medical or
educational institutions whether operating for profit or not, shall
have the right to self-organization and to form, join or assist labor
organizations of their own choosing for purposes of collective
bargaining. Ambulant, intermittent and itinerant workers, self-employed
people, rural workers and those without any definite employers may form
labor organizations for the purpose of enhancing and defending their
interests and for their mutuald and protection.
ARTICLE 244. Right of employees in the public
service. — Employees of government corporations established under the
Corporation Code shall have the right to organize and to bargain
collectively with their respective employers. All other employees in
the civil service shall have the right to form associations for
purposes not contrary to law.
ARTICLE 245. Ineligibility of managerial employees to
join any labor organization; right of supervisory employees. —
Managerial employees are not eligible to join, assist or form any labor
organization. Supervisory employees shall not be eligible for
membership in a labor organization of the rank-and-file employees but
may join, assist or form separate labor organizations of their own. (As
amended by RA 6715)
ARTICLE 246. Non-abridgement of right to
self-organization. — It shall be unlawful for any person to restrain,
coerce, discriminate against or unduly interfere with employees and
workers in their exercise of the right to self-organization. Such right
shall include the right to form, join, or assist labor organizations
for the purpose of collective bargaining through representatives of
their own choosing and to engage in lawfuld and protection, subject to
the provisions of Article 264 of this Code.
TITLE VI
Unfair Labor Practices
CHAPTER I
Concept
ARTICLE 247. Concept of unfair labor practice and
procedure for prosecution thereof— Unfair labor practices violate
the constitutional right of workers and employees to self-organization,
are inimical to the legitimate interests of both labor and management,
including their right to bargain collectively and otherwise deal with
each other in an atmosphere of freedom and mutual respect, disrupt
industrial peace and hinder the promotion of healthy and stable
labor-management relations.
Consequently, unfair labor practices are not only violations of the
civil rights of both labor and management but are also criminal
offenses against the State which shall be subject to prosecution and
punishment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor
and Employment of the powers vested in them by Articles 263 and 264 of
this Code, the civil aspects of all cases involving unfair labor
practices, which may include claims for actual, moral, exemplary and
other forms of damages, attorney's fees and other affirmative relief,
shall be under the jurisdiction of the Labor Arbiters. The Labor
Arbiters shall give utmost priority to the hearing and resolution of
all cases involving unfair labor practices. They shall resolve such
cases within thirty (30) calendar days from the time they are submitted
for decision. (As amended by RA 6715)
Recovery of civil liability in the administrative proceedings shall bar
recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a
final judgment, finding that an unfair labor practice was committed,
having been first obtained in the administrative proceeding referred to
in the preceding paragraph. During the pendency of such administrative
proceeding, the running of the period of prescription of the criminal
offense herein penalized shall be considered interrupted: Provided,
however, That the final judgment in the administrative proceedings
shall not be binding in the criminal case nor be considered as evidence
of guilt but merely as proof of compliance with the requirements herein
set forth.
CHAPTER II
Unfair Labor Practices of Employers
ARTICLE 248. Unfair labor practices of employers. —
It shall be unlawful for an employer to commit any of the following
unfair labor practices:cralaw:red
(a) To interfere with, restrain or coerce employees
in the exercise of their right to self-organization;chanroblesvirtualawlibrary
(b) To require as a condition of employment that a
person or an employee shall not join a labor organization or shall
withdraw from one to which he belongs;chanroblesvirtualawlibrary
(c) To contract out services or functions being
performed by union members when such will interfere with, restrain or
coerce employees in the exercise of their right to self-organization;chanroblesvirtualawlibrary
(d) To initiate, dominate, assist or otherwise
interfere with the formation or administration of any labor
organization, including the giving of financial or other support to it
or its organizers or officers;chanroblesvirtualawlibrary
(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 of 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
members of the recognized collective bargaining agent, if such
non-union members accept the benefits under the collective agreement:
Provided, That the individual authorization required under Article 242,
paragraph (o), of this Code shall not apply to the non-members of the
recognized collective bargaining agent;chanroblesvirtualawlibrary
(f) To dismiss, discharge or otherwise prejudice or
discriminate against an employee for having given or being about to
give testimony under this Code;chanroblesvirtualawlibrary
(g) To violate the duty to bargain collectively as
prescribed by this Code;chanroblesvirtualawlibrary
(h) To pay negotiation or attorney's fees to the
union or its officers or agents as part of the settlement of any issue
in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the
officers and agents of corporations, associations, or partnerships who
have actually participated in, authorized or ratified unfair labor
practices shall be held criminally liable.
CHAPTER III
Unfair Labor Practices of Labor Organizations
ARTICLE 249. Unfair labor practices of labor
organizations. — It shall be unfair labor practice for a labor
organization, its officers, agents, or representatives: chanroblesvirtualawlibrary
(a) To restrain or coerce employees in the exercise
of their right to self-organization. However, a labor organization
shall have the right to prescribe its own rules with respect to the
acquisition or retention of membership;chanroblesvirtualawlibrary
(b) To cause or attempt to cause an employer to
discriminate against an employee, including discrimination against an
employee with respect to whom membership in such organization has been
denied or to terminate an employee on any ground other than the usual
terms and conditions under which membership or continuation of
membership is made available to other members;chanroblesvirtualawlibrary
(c) To violate the duty or refuse to bargain
collectively with the employer, provided that it is the representative
of the employees;chanroblesvirtualawlibrary
(d) To cause or attempt to cause an employer to pay
or deliver or agree to pay or deliver any money or other things of
value, in the nature of an exaction, for services which are not
performed or not to be performed, including the demand for a fee for
union negotiations;chanroblesvirtualawlibrary
(e) To ask for or accept negotiation or attorney's
fees from employers as part of the settlement of any issue in
collective bargaining or any other dispute; or
(f) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the
officers, members of governing boards, representatives or agents or
members of labor associations or organizations who have actually
participated in, authorized or ratified unfair labor practices shall be
held criminally liable.
TITLE VII
Collective Bargaining and Administration of Agreements
ARTICLE 250. Procedure in collective bargaining. —
The following procedures shall be observed in collective bargaining:cralaw:red
(a) When a party desires to negotiate an agreement,
it shall serve a written notice upon the other party with a statement
of its proposals. The other party shall make a reply thereto not later
than ten (10) calendar days from receipt of such notice;chanroblesvirtualawlibrary
(b) Should differences arise on the basis of such
notice and reply, either party may request for a conference which shall
begin not later than ten (10) calendar days from the date of request;chanroblesvirtualawlibrary
(c) If the dispute is not settled, the Board shall
intervene upon request of either or both parties or at its own
initiative and immediately call the parties to conciliation meetings.
The Board shall have the power to issue subpoenas requiring the
attendance of the parties to such meetings. It shall be the duty of the
parties to participate fully and promptly in the conciliation meetings
the Board may call;chanroblesvirtualawlibrary
(d) During the conciliation proceedings in the Board,
the parties are prohibited from doing any act which may disrupt or
impede the early settlement of the disputes; and
(e) The Board shall exert all efforts to settle
disputes amicably and encourage the parties to submit their case to a
voluntary arbitrator.
ARTICLE 251. Duty to bargain collectively in the
absence of collective bargaining agreements. — In the absence of an
agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, it shall be the duty of
the employer and the representatives of the employees to bargain
collectively in accordance with the provisions of this Code.
ARTICLE 252. Meaning of duty to bargain collectively.
— The duty to bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in good faith
for the purpose of negotiating an agreement with respect to wages,
hours of work and all other terms and conditions of employment
including proposals for adjusting any grievances or questions arising
under such agreement and executing a contract incorporating such
agreements if requested by either party, but such duty does not compel
any party to agree to a proposal or to make any concession.
ARTICLE 253. Duty to bargain collectively when there
exists a collective bargaining agreement. — When there is a collective
bargaining agreement, the duty to bargain collectively shall also mean
that neither party shall terminate or modify such agreement during its
lifetime. However, either party can serve a written notice to terminate
or modify the agreement at least sixty (60) days prior to its
expiration date. It shall be the duty of both parties to keep the
status quo and to continue in full force and effect the term and
conditions of the existing agreement during the 60-day period and/or
until a new agreement is reached by the parties.
ARTICLE 253-A. Terms of a collective bargaining
agreement. — Any collective bargaining agreement that the parties may
enter into shall, insofar as the representation aspect is concerned, be
for a term of five (5) years. No petition questioning the majority
status of the incumbent bargaining agent shall be entertained and no
certification election shall be conducted by the Department of Labor
and Employment outside of the sixty-day period immediately before the
date of expiry of such five year term of the collective bargaining
agreement. All other provisions of the collective bargaining agreement
shall be renegotiated not later than three (3) years after its
execution. Any agreement on such other provisions of the collective
bargaining agreement entered into within six (6) months from the date
of expiry of the term of such other provisions as fixed in the
collective bargaining agreement, shall retroact to the day immediately
following such date. If any such agreement is entered into beyond six
months, the parties shall agree on the duration of retroactivity
thereof. In case of a deadlock in the renegotiation of the collective
bargaining agreement, the parties may exercise their rights under this
Code. (As amended by RA 6715)
ARTICLE 254. Injunction prohibited. — No temporary or
permanent injunction or restraining order in any case involving or
growing out of labor disputes shall be issued by any court or other
entity, except as otherwise provided in Articles 218 and 264 of this
Code. (As amended by BP Blg. 227)
ARTICLE 255. Exclusive bargaining representation and
workers' participation in policy and decision-making. — The labor
organization designated or selected by the majority of the employees in
an appropriate collective bargaining unit shall be the exclusive
representative of the employee in such unit for the purpose of
collective bargaining. However, an individual employee or group of
employees shall have the right at any time to present grievances to
their employer.
Any provision of law to the contrary notwithstanding, workers shall
have the right, subject to such rules and regulations as the Secretary
of Labor and Employment may promulgate, to participate in policy and
decision-making processes of the establishment where they are employed
insofar as said processes will directly affect their rights, benefits
and welfare. For this purpose, workers and employers may form
labor-management councils: Provided, That the representatives of the
workers in such labor-management councils shall be elected by at least
the majority of all employees in said establishment. (As amended by RA
6715)
ARTICLE 256. Representation issue in organized
establishments. — In organized establishments, when a verified petition
questioning the majority status of the incumbent bargaining agent is
filed before the Department of Labor and Employment within the
sixty-day period before the expiration of a collective bargaining
agreement, the Med-Arbiter shall automatically order an election by
secret ballot when the verified petition is supported by the written
consent of at least twenty-five percent (25%) of all the employees in
the appropriate bargaining unit. To have a valid election, at least a
majority of all eligible voters in the unit must have cast their votes.
The labor union receiving the majority of the valid votes cast shall be
certified as the exclusive bargaining agent of all the workers in the
unit. When an election which provides for three or more choices results
in no choice receiving a majority of the valid votes cast, a run-off
election shall be conducted between the labor unions receiving the two
highest number of votes: Provided, That the total number of votes for
all contending unions is at least fifty percent (50%) of the number of
votes cast.
At the expiration of the freedom period, the employer shall continue to
recognize the majority status of the incumbent bargaining agent where
no petition for certification is filed. (As amended by RA 6715)
ARTICLE 257. Petitions in unorganized establishments.
— In any establishment where there is no certified bargaining agent, a
certification election shall automatically be conducted by the
Med-Arbiter upon the filing of a petition by a legitimate labor
organization. (As amended by RA 6715)
ARTICLE 258. When an employer may file petition. —
When requested to bargain collectively, an employer may petition the
Bureau for an election. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall, after hearing,
order a certification election.
All certification cases shall be decided within 20 working days.
The Bureau shall conduct a certification election within 20 days in
accordance with the rules and regulations prescribed by the Secretary
of Labor and Employment.
ARTICLE 259. Appeal from certification election
orders. — Any party to an election may appeal the order or results of
the election as determined by the Med-Arbiter directly to the Secretary
of Labor and Employment on the ground that the rules and regulations or
parts thereof established by the Secretary of Labor and Employment for
the conduct of the election have been violated. Such appeal shall be
decided within fifteen (15) calendar days. (As amended by RA 6715)
TITLE VII-A
Grievance Machinery and Voluntary Arbitration
ARTICLE 260. Grievance machinery and voluntary
arbitration. — The parties to a collective bargaining agreement shall
include therein provisions that will ensure the mutual observance of
its terms and conditions. They shall establish a machinery for the
adjustment and resolution of grievances arising from the interpretation
or implementation of their collective bargaining agreement and those
arising from the interpretation or enforcement of company personnel
policies.
All grievances submitted to the grievance machinery which are not
settled within seven (7) calendar days from the date of its submission
shall automatically be referred to voluntary arbitration prescribed in
the collective bargaining agreement.
For this purpose, parties to a collective bargaining agreement shall
name and designate in advance a voluntary arbitrator or panel of
voluntary arbitrators, or include in the agreement a procedure for the
selection of such voluntary arbitrator or panel of voluntary
arbitrators, preferably from the listing of qualified Voluntary
Arbitrators duly accredited by the Board. In case the parties fail to
select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the
Board shall designate the Voluntary Arbitrator or panel of Voluntary
Arbitrators, as may be necessary, pursuant to the selection procedure
agreed upon in the collective bargaining agreement, which shall act
with the same force and effect as if the voluntary arbitrator or panel
of voluntary arbitrators have been selected by the parties as described
above. (As added by RA 6715)
ARTICLE 261. Jurisdiction of voluntary arbitrators
and panel of voluntary arbitrators. — The Voluntary Arbitrator or panel
of Voluntary Arbitrators shall have original and exclusive jurisdiction
to hear and decide all unresolved grievances arising from the
interpretation or implementation of the Collective Bargaining Agreement
and those arising from the interpretation or enforcement of company
personnel policies referred to in the immediately preceding Article.
Accordingly, violations of a Collective Bargaining Agreement, except
those which are gross in character, shall no longer be treated as
unfair labor practice and shall be resolved as grievances under the
Collective Bargaining Agreement. For purposes of this Article, gross
violations of a Collective Bargaining Agreement shall mean flagrant
and/or malicious refusal to comply with the economic provisions of such
agreement.
The Commission, its Regional Offices and the Regional Directors of the
Department of Labor and Employment shall not entertain disputes,
grievances or matters under the exclusive and original jurisdiction of
the voluntary arbitrator or panel of voluntary arbitrators and shall
immediately dispose and refer the same to the grievance machinery or
voluntary arbitration provided in the collective bargaining agreement.
(As added by RA 6715)
ARTICLE 262. Jurisdiction over other labor disputes.
— The voluntary arbitrator or panel of voluntary arbitrators, upon
agreement of the parties, shall also hear and decide all other labor
disputes including unfair labor practices and bargaining deadlocks. (As
added by RA 6715)
ARTICLE 262-A. Procedures. — The voluntary arbitrator
or panel of voluntary arbitrators shall have the power to hold
hearings, receive evidences and take whatever action is necessary to
resolve the issue or issues subject of the dispute, including efforts
to effect a voluntary settlement between parties.
All parties to the dispute shall be entitled to attend the arbitration
proceedings. The attendance of any third party or the exclusion of any
witness from the proceedings shall be determined by the voluntary
arbitrator or panel of voluntary arbitrators. Hearings may be adjourned
for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the
voluntary arbitrator or panel of voluntary arbitrators to render an
award or decision within twenty (20) calendar days from the date of
submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Voluntary
Arbitrators shall contain the facts and the law on which it is based.
It shall be final and executory after ten (10) calendar days from
receipt of the copy of the award or decision by the parties.
Upon motion of any interested party, the voluntary arbitrator or panel
of voluntary arbitrators or the Labor Arbiter in the region where the
movant resides, in case of the absence or incapacity of the voluntary
arbitrator or panel of voluntary arbitrators for any reason, may issue
a writ of execution requiring either the sheriff of the Commission or
regular courts or any public official whom the parties may designate in
the submission agreement to execute the final decision, order or award.
(As added by RA 6715)
ARTICLE 262-B. Cost of Voluntary Arbitration and
Voluntary Arbitrator's fee. — The parties to a Collective Bargaining
Agreement shall provide therein a proportionate sharing scheme on the
cost of Voluntary Arbitration including the Voluntary Arbitrator's fee.
The fixing of fee of Voluntary Arbitrators or panel of Voluntary
Arbitrators, whether shouldered wholly by the parties or subsidized by
the Special Voluntary Arbitration Fund, shall take into account the
following factors:cralaw:red
(a) Nature of the case;chanroblesvirtualawlibrary
(b) Time consumed in hearing the case;chanroblesvirtualawlibrary
(c) Professional standing of the voluntary
arbitrator;chanroblesvirtualawlibrary
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
(As added by RA 6715)
TITLE VIII
Strikes and Lockouts and Foreign Involvement in Trade Union Activities
CHAPTER I
Strikes and Lockouts
ARTICLE 263. Strikes, picketing and lockouts. — (a)
It is the policy of the State to encourage free trade unionism and free
collective bargaining. chanroblesvirtualawlibrary
(b) Workers shall have the right to engage in
concerted activities for purposes of collective bargaining or for their
mutual benefit and protection. The right of legitimate labor
organizations to strike and picket and of employers to lockout,
consistent with the national interest, shall continue to be recognized
and respected. However, no labor union may strike and no employer may
declare a lockout on grounds involving inter-union and intra-union
disputes.
(c) In cases of bargaining deadlocks, the duly
certified or recognized bargaining agent may file a notice of strike or
the employer may file a notice of lockout with the Department at least
thirty (30) days before the intended date thereof. In cases of unfair
labor practice, the period of notice shall be fifteen (15) days and in
the absence of a duly certified or recognized bargaining agent, the
notice of strike may be filed by any legitimate labor organization in
behalf of its members. However, in case of dismissal from employment of
union officers duly elected in accordance with the union constitution
and by-laws, which may constitute union busting where the existence of
the union is threatened, the 15-day cooling-off period shall not apply
and the union may take action immediately.
(d) The notice must be in accordance with such
implementing rules and regulations as the Secretary of Labor and
Employment may promulgate.
(e) During the cooling-off period, it shall be the
duty of the Department to exert all efforts at mediation and
conciliation to effect a voluntary settlement. Should the dispute
remain unsettled until the lapse of the requisite number of days from
the mandatory filing of the notice, the labor union may strike or the
employer may declare a lockout.
(f) A decision to declare a strike must be approved
by a majority of the total union membership in the bargaining unit
concerned, obtained by secret ballot in meetings or referenda called
for that purpose. A decision to declare a lockout must be approved by
majority of the board of directors of the corporation or association or
of the partners in a partnership, obtained by secret ballot in a
meeting called for that purpose. The decision shall be valid for the
duration of the dispute based on substantially the same grounds
considered when the strike or lockout vote was taken. The Department
may, at its own initiative or upon the request of any affected party,
supervise the conduct of the secret balloting. In every case, the union
or the employer shall furnish the Department the results of the voting
at least seven days before the intended strike or lockout, subject to
the cooling-off period herein provided.
(g) When, in his opinion, there exists a labor
dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of Labor and
Employment may assume jurisdiction over the dispute and decide it or
certify the same to the Commission for compulsory arbitration. Such
assumption or certification shall have the effect of automatically
enjoining the intended or impending strike or lockout as specified in
the assumption or certification order. If one has already taken place
at the time of assumption or certification, all striking or locked out
employees shall immediately return to work and the employer shall
immediately resume operations and readmit all workers under the same
terms and conditions prevailing before the strike or lockout. The
Secretary of Labor and Employment or the Commission may seek the
assistance of law enforcement agencies to ensure compliance with this
provision as well as with such orders as he may issue to enforce the
same.
In line with the national concern for and the highest respect accorded
to the right of patients to life and health, strikes and lockouts in
hospitals, clinics and similar medical institutions shall, to every
extent possible, be avoided, and all serious efforts, not only by labor
and management but government as well, be exhausted to substantially
minimize, if not prevent, their adverse effects on such life and
health, through the exercise, however legitimate, by labor of its right
to strike and by management to lockout. In labor disputes adversely
affecting the continued operation of such hospitals, clinics or medical
institutions, it shall be the duty of the striking union or locking-out
employer to provide and maintain an effective skeletal workforce of
medical and other health personnel, whose movement and services shall
be unhampered and unrestricted, as are necessary to insure the proper
and adequate protection of the life and health of its patients, most
especially emergency cases, for the duration of the strike or lockout.
In such cases, therefore, the Secretary of Labor and Employment may
immediately assume, within twenty four (24) hours from knowledge of the
occurrence of such a strike or lockout, jurisdiction over the same or
certify it to the Commission for compulsory arbitration. For this
purpose, the contending parties are strictly enjoined to comply with
such orders, prohibitions and/or injunctions as are issued by the
Secretary of Labor and Employment or the Commission, under pain of
immediate disciplinary action, including dismissal or loss of
employment status or payment by the locking-out employer of backwages,
damages and other affirmative relief, even criminal prosecution against
either or both of them.
The foregoing notwithstanding, the President of the Philippines shall
not be precluded from determining the industries that, in his opinion,
are indispensable to the national interest, and from intervening at any
time and assuming jurisdiction over any labor dispute in such
industries in order to settle or terminate the same.
(h) Before or at any stage of the compulsory
arbitration process, the parties may opt to submit their dispute to
voluntary arbitration.
(i) The Secretary of Labor and Employment, the
Commission or the voluntary arbitrator or panel of voluntary
arbitrators shall decide or resolve the dispute within thirty (30)
calendar days from the date of the assumption of jurisdiction or the
certification or submission of the dispute, as the case may be. The
decision of the President, the Secretary of Labor and Employment, the
Commission or the voluntary arbitrator or panel of voluntary
arbitrators shall be final and executory ten (10) calendar days after
receipt thereof by the parties. (As amended by RA 6715)
ARTICLE 264. Prohibited activities. — (a) No labor
organization or employer shall declare a strike or lockout without
first having bargained collectively in accordance with Title VII of
this Book or without first having filed the notice required in the
preceding Article or without the necessary strike or lockout vote first
having been obtained and reported to the Department.
No strike or lockout shall be declared after assumption of jurisdiction
by the President or the Secretary or after certification or submission
of the dispute to compulsory or voluntary arbitration or during the
pendency of cases involving the same grounds for the strike or lockout.
Any worker whose employment has been terminated as a consequence of an
unlawful lockout shall be entitled to reinstatement with full
backwages. Any union officer who knowingly participates in an illegal
strike and any worker or union officer who knowingly participates in
the commission of illegal acts during a strike may be declared to have
lost his employment right: Provided, That mere participation of a
worker in a lawful strike shall not constitute sufficient ground for
termination of his employment, even if a replacement had been hired by
the employer during such lawful strike.
(b) No person shall obstruct, impede or interfere
with by force, violence, coercion, threats or intimidation any peaceful
picketing by employees during any labor controversy or in the exercise
of the right of self-organization or collective bargaining or shall or
abet such obstruction or interference.
(c) No employer shall use or employ any
strike-breaker nor shall any person be employed as a strike-breaker.
(d) No public official or employee, including
officers and personnel of the New Armed Forces of the Philippines or
the Integrated National Police, or armed persons, shall bring in,
introduce or escort in any manner, any individual who seeks to replace
strikers in entering or leaving the premises of a strike area, or work
in place of the strikers. The police force shall keep out of the picket
lines unless actual violence or other criminal acts occur therein:
Provided, That nothing herein shall be interpreted to prevent any
public officers from taking any measure necessary to maintain peace and
order, protect life and property, and/or enforce the law and legal
order.
(e) No person engaged in picketing shall commit any
act of violence, coercion or intimidation or obstruct the free ingress
to or egress from the employer's premises for lawful purposes, or
obstruct public thoroughfares.
ARTICLE 265. Improved offer balloting. — In an effort
to settle a strike, the Department of Labor and Employment shall
conduct a referendum by secret balloting on the improved offer of the
employer on or before the 30th day of the strike. When at least a
majority of the union members vote to accept the improved offer, the
striking workers shall immediately return to work and the employer
shall thereupon readmit them upon the signing of the agreement.
In case of a lockout, the Department of Labor and Employment shall also
conduct a referendum by secret balloting on the reduced offer of the
union on or before the 30th day of the lockout. When at least a
majority of the board of directors or trustees or the partners holding
the controlling interest in the case of a partnership vote to accept
the reduced offer, the workers shall immediately return to work and the
employer shall thereupon readmit them upon the signing of the
agreement. (As amended by RA 6715)
ARTICLE 266. Requirement for arrest and detention. —
Except on grounds of national security and public peace, no union
members or union organizers may be arrested or detained for union
activities without previous consultations with the Secretary of Labor
and Employment.
CHAPTER II
Assistance to Labor Organizations
ARTICLE 267. Assistance by the Department of Labor
and Employment. — The Department of Labor and Employment, at the
initiative of the Secretary of Labor and Employment, shall extend
special assistance to the organization for purposes of collective
bargaining of the most underprivileged workers who, for reasons of
occupation, organizational structure or insufficient incomes are not
normally covered by major labor organizations or federations.
ARTICLE 268. Assistance by the Institute for Labor
and Manpower Studies. — The Institute for Labor and Manpower Studies
shall render technical and other forms of assistance to labor
organizations and employer organizations in the field of labor
education, especially pertaining to collective bargaining, arbitration,
labor standards and the Labor Code of the Philippines in general.
CHAPTER III
Foreign Activities
ARTICLE 269. Prohibition against aliens; exceptions.
— All alien, natural or juridical, as well as all foreign organizations
are strictly prohibited from engaging directly or indirectly in all
forms of trade union activities without prejudice to normal contacts
between Philippine labor unions and recognized international labor
centers: Provided, however, That aliens working in the country with
valid permits issued by the Department of Labor and Employment may
exercise the right to self-organization and join or assist labor
organizations of their own choosing for purposes of collective
bargaining: Provided, further, That said aliens are nationals of a
country which grants the same or similar rights to Filipino workers.
(As amended by RA 6715)
ARTICLE 270. Regulation of foreign assistance. —
(a) No foreign individual, organization or entity may
give any donations, grants or other forms of assistance, in cash or in
kind, directly or indirectly, to any labor organization, group of
workers or any auxiliary thereof, such as cooperatives, credit unions
and institutions engaged in research, education or communication, in
relation to trade union activities without prior permission by the
Secretary of Labor and Employment.
"Trade union activities" shall mean:cralaw:red
(1) organization, formation and administration of
labor organizations;chanroblesvirtualawlibrary
(2) negotiation and administration of collective
bargaining agreements;chanroblesvirtualawlibrary
(3) all forms of concerted union action;chanroblesvirtualawlibrary
(4) organizing, managing or assisting union
conventions, meetings, rallies, referenda, teach-ins, seminars,
conferences and institutes;chanroblesvirtualawlibrary
(5) any form of participation or involvement in
representation proceedings, representation elections, consent
elections, union elections; and
(6) other activities or actions analogous to the
foregoing.
(b) This prohibition shall equally apply to foreign
donations, grants or other forms of assistance, in cash or in kind,
given directly or indirectly to any employer or employer's organization
to support any activity or activities affecting trade unions.
(c) The Secretary of Labor and Employment shall
promulgate rules and regulations to regulate and control the giving and
receiving of such donations, grants, or other forms of assistance,
including the mandatory reporting of amounts of donations or grants,
the specific recipients thereof, the projects or activities proposed to
be supported and their duration.
ARTICLE 271. Applicability to farm tenants and rural
workers. — The provisions of this Title pertaining to foreign
organizations and activities shall be deemed applicable to all
organizations of farm tenants, rural workers and the like, provided
that in appropriate cases the Secretary of Agrarian Reform shall
exercise the powers and responsibilities vested by this Title in the
Secretary of Labor and Employment.
CHAPTER IV
Penalties for Violation
ARTICLE 272. Penalties. — (a) Any person violating
any of the provisions of Article 264 of this Code shall be punished by
a fine of not less than one thousand pesos (P1,000.00) nor more than
ten thousand pesos (P10,000.00) and/or imprisonment for not less than
three (3) months nor more than three (3) years, or both such fine and
imprisonment, at the discretion of the court. Prosecution under this
provision shall preclude prosecution for the same act under the Revised
Penal Code, and vice versa. (As amended by RA 6715)
(b) Upon the recommendation of the Secretary of Labor
and Employment and the Secretary of National Defense, foreigners who
violate the provisions of this Title shall be subject to immediate and
summary deportation by the Commission on Immigration and Deportation
and shall be permanently barred from re-entering the country without
the special permission of the President of the Philippines.
TITLE IX
Special Provisions
ARTICLE 273. Study of labor-management relations. —
The Secretary of Labor and Employment shall have the power and it shall
be his duty to inquire into:cralaw:red
(a) The existing relations between employers and
employees in the Philippines;chanroblesvirtualawlibrary
(b) The growth of associations of employees and the
effect of such associations upon employer-employee relations;chanroblesvirtualawlibrary
(c) The extent and results of the methods of
collective bargaining in the determination of terms and conditions of
employment;chanroblesvirtualawlibrary
(d) The methods which have been tried by employers
and associations of employees for maintaining mutually satisfactory
relations;chanroblesvirtualawlibrary
(e) Desirable industrial practices which have been
developed through collective bargaining for settling differences;chanroblesvirtualawlibrary
(f) The possible ways of increasing the usefulness
and efficiency of collective bargaining for settling
differences; chanroblesvirtualawlibrary
(g) The possibilities for the adoption of practical
and effective methods of labor-management cooperation;chanroblesvirtualawlibrary
(h) Any other aspects of employer-employee relations
concerning the promotion of harmony and understanding between the
parties; and
(i) The relevance of labor laws and labor relations
to national development.
The Secretary of Labor and Employment shall also inquire into the
causes of industrial unrest and take all the necessary steps within his
powers as may be prescribed by law to alleviate the same, and shall
from time to time recommend the enactment of such remedial legislation
as in his judgment may be desirable for the maintenance and promotion
of industrial peace.
ARTICLE 274. Visitorial power. — The Secretary of
Labor and Employment or his duly authorized representative is hereby
empowered to inquire into the financial activities of legitimate labor
organizations upon the filing of a complainant under oath and duly
supported by the written consent of at least twenty percent (20%) of
the total membership of the labor organization concerned and to examine
their books of accounts and other records to determine compliance or
non-compliance with the law and to prosecute any violations of the law
and the union constitution and by-laws: Provided, That such inquiry or
examination shall not be conducted during the sixty (60) day freedom
period nor within thirty (30) days immediately preceding the date of
election of union officials. (As amended by RA 6715)
ARTICLE 275. Tripartism and tripartite conferences. —
(a) Tripartism in labor relations is hereby declared a State policy.
Towards this end, workers and employers shall, as far as practicable,
be represented in decision and policy-making bodies of the government.
(b) The Secretary of Labor and Employment or his duly
authorized representatives may from time to time call a national,
regional, or industrial tripartite conference of representatives of
government, workers and employers for the consideration and adoption of
voluntary codes of principles designed to promote industrial peace
based on social justice or to align labor movement relations with
established priorities in economic and social development. In calling
such conference, the Secretary of Labor and Employment may consult with
accredited representatives of workers and employers. (As amended by RA
6715)
ARTICLE 276. Government employees. — The terms and
conditions of employment of all government employees, including
employees of government-owned and controlled corporations, shall be
governed by the Civil Service Law, rules and regulations. Their
salaries shall be standardized by the National Assembly as provided for
in the new constitution. However, there shall be no reduction of
existing wages, benefits and other terms and conditions of employment
being enjoyed by them at the time of the adoption of this Code.
ARTICLE 277. Miscellaneous provisions. — (a) All
unions are authorized to collect reasonable membership fees, union
dues, assessments and fines and other contributions for labor education
and research, mutual death and hospitalization benefits, welfare fund,
strike fund and credit and cooperative undertakings. (As amended by RA
6715)
(b) Subject to the constitutional right of workers to
security of tenure and their right to be protected against dismissal
except for a just or authorized cause and without prejudice to the
requirement of notice under Article 283 of this Code, the employer
shall furnish the workers whose employment is so sought to be
terminated a written notice containing a statement of the cause for
termination and shall afford the latter ample opportunity to be heard
and to defend himself with the assistance of his representative if he
so desires in accordance with company rules and regulations promulgated
pursuant to guidelines set by the Department of Labor and Employment.
Any decision taken by employer shall be without prejudice to the right
of the worker to contest the validity or legality of his dismissal by
filing a complaint with the regional branch of the National Labor
Relations Commission. The burden of proving that the termination was
for a valid or authorized cause shall rest on the employer. The
Secretary of Labor and Employment may suspend the effects of the
termination pending resolution of the dispute in the event of a prima
facie finding by the appropriate official of the Department of Labor
and Employment before whom such dispute is pending that the termination
may cause a serious labor dispute or is in implementation of a mass
lay-off. (As amended by RA 6715)
(c) Any employee, whether employed for a definite
period or not, shall, beginning on his first day of service, be
considered an employee for purposes of membership in any labor union.
(As amended by RA 6715)
(d) No docket fee shall be assessed in labor
standards disputes. In all other disputes, docket fees may be assessed
against the filing party, provided that in bargaining deadlocks, such
fees shall be shared equally by the negotiating parties.
(e) The Secretary of Labor and Employment and the
Secretary of the Budget shall cause to be created or reclassified in
accordance with law such positions as may be necessary to carry out the
objectives of this Code and cause the upgrading of the salaries of the
personnel involved in the Labor Relations System of the Department.
Funds needed for this purpose shall be provided out of the Special
Activities Fund appropriated by Batas Pambansa Blg. 80 and from annual
appropriation thereafter.
(f) A Special Voluntary Arbitration Fund is hereby
established in the Board to subsidize the cost of voluntary arbitration
in cases involving the interpretation and implementation of the
Collective Bargaining Agreement, including the Arbitrator's fees, and
for such other related purposes to promote and develop voluntary
arbitration. The Board shall administer the Special Voluntary
Arbitration Fund in accordance with the guidelines it may adopt upon
the recommendation of the Council, which guidelines shall be subject to
the approval of the Secretary of Labor and Employment. Continuing funds
needed for this purpose in the initial yearly amount of fifteen million
pesos (P15,000,000.00) shall be provided in the 1989 and subsequent
annual General Appropriations Acts.
The amount of subsidy in appropriate cases shall be determined by the
Board in accordance with established guidelines issued by it upon the
recommendation of the Council.
The Fund shall also be utilized for the operation of the Council, the
training and education of Voluntary Arbitrators, and the Voluntary
Arbitration Program. (As amended by RA 6715)
(g) The Ministry shall help promote and gradually
develop, with the agreement of labor organizations and employers,
labor-management cooperation programs at appropriate levels of the
enterprise based on shared responsibility and mutual respect in order
to ensure industrial peace and improvement in productivity, working
conditions and the quality of working life.
(h) In establishments where no legitimate labor
organization exists, labor-management committees may be formed
voluntarily by workers and employers for the purpose of promoting
industrial peace. The Department of Labor and Employment shall endeavor
to enlighten and educate the workers and employees on their rights and
responsibilities through labor education with emphasis on the policy
thrusts of this Code. (As amended by RA 6715)
(i) To ensure speedy labor justice, the periods
provided in this Code within which decisions or resolutions of labor
relations cases or matters should be rendered shall be mandatory. For
this purpose, a case or matter shall be deemed submitted for decision
or resolution upon the filing of the last pleading or memorandum
required by the rules of the Commission or by the Commission itself, or
the Labor Arbiter or the Director of the Bureau of Labor Relations or
Med-Arbiter, or the Regional Director.
Upon expiration of the corresponding period, a certification stating
why a decision or resolution has not been rendered within the said
period shall be issued forthwith by the Chairman of the Commission, the
Executive Labor Arbiter, or the Director of the Bureau of Labor
Relations or Med-Arbiter, or the Regional Director, as the case may be,
and a copy thereof served upon the parties.
Despite the expiration of the applicable mandatory period, the
aforesaid officials shall, without prejudice to any liability which may
have been incurred as a consequence thereof, see to it that the case or
matter shall be decided or resolved without any further delay. (As
amended by RA 6715)
BOOK SIX
Post Employment
TITLE I
Termination of Employment
ARTICLE 278. Coverage. — The provisions of this Title
shall apply to all establishments or undertakings, whether for profit
or not.
ARTICLE 279. Security of Tenure. — In cases of
regular employment, the employer shall not terminate the services of an
employee except for a just cause or when authorized by this Title. An
employee who is unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and to his backwages
computed from the time his compensation was withheld from him up to
time of his actual reinstatement. (As amended by RA 6715)
ARTICLE 280. Regular and casual employment. — The
provisions of written agreement to the contrary notwithstanding and
regardless of the oral agreements of the parties, an employment shall
be deemed to be regular where the employee has been engaged to perform
activities which are usually necessary or desirable in the usual
business or trade of the employer except where the employment has been
fixed for a specific project or undertaking, the completion or
termination of which has been determined at the time of the engagement
of the employee or where the work or service to be performed is
seasonal in nature and the employment is for the duration of the
season. chanroblesvirtualawlibrary
An employment shall be deemed to be casual if it is not covered by the
preceding paragraph: Provided, That any employee who has rendered at
least one year of service, whether such service is continuous or
broken, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue
while such activity exists.
ARTICLE 281. Probationary employment. — Probationary
employment shall not exceed six months from the date the employee
started working, unless it is covered by an apprenticeship agreement
stipulating a longer period. The services of an employee who has been
engaged on a probationary basis may be terminated for a just cause or
when he fails to qualify as a regular employee in accordance with
reasonable standards made known by the employer to the employee at the
time of his engagement. An employee who is allowed to work after a
probationary period shall be considered a regular employee.
ARTICLE 282. Termination by employer. — An employer
may terminate an employment for any of the following just causes:cralaw:red
(a) Serious misconduct or willful disobedience by the
employee of the lawful orders of his employer or representative in
connection with his work;chanroblesvirtualawlibrary
(b) Gross and habitual neglect by the employee of his
duties;chanroblesvirtualawlibrary
(c) Fraud or willful breach by the employee of the
trust reposed in him by his employer or duly authorized representative;chanroblesvirtualawlibrary
(d) Commission of a crime or offense by the employee
against the person of his employer or any immediate member of his
family or his duly authorized representative; and
(e) Other causes analogous to the foregoing.
ARTICLE 283. Closure of establishment and reduction
of personnel. — The employer may also terminate the employment of any
employee due to the installation of labor-saving devices, redundancy,
retrenchment to prevent losses or the closing or cessation of operation
of the establishment or undertaking unless the closing is for the
purpose of circumventing the provisions of this title, by serving a
written notice on the workers and the Department of Labor and
Employment at least one (1) month before the intended date thereof. In
case of termination due to the installation of labor-saving devices or
redundancy, the worker affected thereby shall be entitled to a
separation pay equivalent to at least one (1) month pay or to at least
one (1) month pay for every year of service, whichever is higher. In
case of retrenchment to prevent losses and in cases of closures or
cessation of operations of establishment or undertaking not due to
serious business losses or financial reverses, the separation pay shall
be equivalent to one (1) month pay or at least one-half (1/2) month pay
for every year of service, whichever is higher. A fraction of at least
six (6) months shall be considered one (1) whole year.
ARTICLE 284. Disease as ground for termination. — An
employer may terminate the services of an employee who has been found
to be suffering from any disease and whose continued employment is
prohibited by law or is prejudicial to his health as well as the health
of his co-employees: Provided, That he is paid separation pay
equivalent to at least one month salary or to one-half month salary for
every year of service, whichever is greater, a fraction of at least six
months being considered as one whole year.
ARTICLE 285. Termination by employee. — (a) An
employee may terminate without just cause the employee-employer
relationship by serving a written notice on the employer at least one
month in advance. The employer upon whom no such notice was served may
hold the employee liable for damages. chanroblesvirtualawlibrary
(b) An employee may put an end to the relationship
without serving any notice on the employer for any of the following
just causes:cralaw:red
(1) Serious insult by the employer or his
representative on the honor and person of the employee;chanroblesvirtualawlibrary
(2) Inhuman and unbearable treatment accorded the
employee by the employer or his representative;chanroblesvirtualawlibrary
(3) Commission of a crime or offense by the employer
or his representative against the person of the employee or any of the
immediate members of his family; and
(4) Other causes analogous to any of the foregoing.
ARTICLE 286. When employment not deemed terminated. —
The bona fide suspension of the operation of a business or undertaking
for a period not exceeding six months, or the fulfillment by the
employee of a military or civic duty shall not terminate employment. In
all such cases, the employer shall reinstate the employee to his former
position without loss of seniority rights if he indicates his desire to
resume his work not later than one month from the resumption of
operations of his employer or from his relief from the military or
civic duty.
TITLE II
Retirement from the Service
ARTICLE 287. Retirement. — Any employee may be
retired upon reaching the retirement age established in the collective
bargaining agreement or other applicable employment contract.
In case of retirement, the employee shall be entitled to receive such
retirement benefits as he may have earned under existing laws and any
collective bargaining or other agreements: Provided, however, That an
employee's retirement benefits under any collective bargaining and
other agreements shall not be less than those provided herein.
In the absence of a retirement plan or agreement providing
for retirement benefits of employees in the establishment, an employee
upon reaching the age of sixty (60) years or more, but not beyond
sixty-five (65) years which is hereby declared the compulsory
retirement age, who has served at least five (5) years in the said
establishment, may retire and shall be entitled to retirement pay
equivalent to at least one-half (1/2) month salary for every year of
service, a fraction of at least six (6) months being considered as one
whole year.
Unless the parties provide for broader inclusions, the term "one half
(1/2) month" salary shall mean fifteen (15) days plus one-twelfth
(1/12) of the 13th month pay and the cash equivalent of not more than
five (5) days of service incentive leaves.
Retail, service and agricultural establishments or operations employing
not more than ten (10) employees or workers are exempted from the
coverage of this provision.
Violation of this provision is hereby declared unlawful and subject to
the penal provisions under Article 288 of this Code.
BOOK SEVEN
Transitory and Final Provisions
TITLE I
Penal Provisions and Liabilities
ARTICLE 288. Penalties. — Except as otherwise
provided in this Code, or unless the act complained of hinges on a
question of interpretation or implementation of ambiguous provisions of
an existing collective bargaining agreement any violation of the
provisions of this Code declared to be unlawful or penal in nature
shall be punished with a fine of not less than One Thousand Pesos
(P1,000.00) nor more than Ten Thousand Pesos (P10,000.00), or
imprisonment of not less than three months nor more than three years,
or both such fine and imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be summarily
deported upon completion of service of sentence.
Any provision of law to the contrary notwithstanding, any criminal
offense punished in this Code shall be under the concurrent
jurisdiction of the Municipal or Regional Trial Court.
ARTICLE 289. 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.
TITLE II
Prescription of Offenses and Claims
ARTICLE 290. Offenses. — Offenses penalized under
this Code and the rules and regulations issued pursuant thereto shall
prescribe in three years.
All unfair labor practices arising from Book V shall be filed with the
appropriate agency within one year from accrual of such unfair labor
practice; otherwise, they shall be forever barred.
ARTICLE 291. Money claims. — All money claims arising
from employer-employee relations accruing during the effectivity of
this Code shall be filed within three years from the time the cause of
action accrued; otherwise they shall be forever barred.
All money 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, and shall be
processed or determined in accordance with implementing rules and
regulations of the Code; otherwise they shall be forever barred.
Workmen's compensation claims accruing prior to the effectivity of this
Code and during the period from November 1, 1974 up to December 31,
1974, shall be filed with the appropriate regional offices of the
Department of Labor and Employment not later than March 31, 1975;
otherwise they shall be forever barred. These claims shall be processed
and adjudicated in accordance with the law and rules at the time their
causes of action accrued.
ARTICLE 292. Institution of money claims. — Money
claims specified in the immediately preceding Article shall be filed
before the 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.
TITLE III
Transitory and Final Provisions
ARTICLE 293. Application of law enacted prior to this
Code. — All actions or claims accruing prior to the effectivity of this
Code shall be determined in accordance with the laws in force at the
time of their accrual.
ARTICLE 294. Secretary of Labor and Employment to
initiate integration of maternity leave benefits. — Within six months
after this Code takes effect, the Secretary of Labor and Employment
shall initiate such measures as may be necessary for the integration of
maternity leave benefits into the Social Security System in the case of
Private employment and the Government Service Insurance System in the
case of public employment.
ARTICLE 295. Funding of the Overseas Employment
Development Board and the National Seamen Board. — The Overseas
Employment Development Board and the National Seaman Board referred to
in Articles 16 and 20, respectively, of this Code shall initially be
funded out of the unprogrammed fund of the Department of Labor and
Employment and the National Manpower and Youth Council.
ARTICLE 296. Termination of the workmen's
compensation program. — The Bureau of Workmen's Compensation, Workmen's
Compensation Commission, and the Workmen's Compensation Units in the
regional offices of the Department of Labor and Employment shall
continue to exercise the functions and the respective jurisdictions
over workmen's compensation cases vested upon them by Rep. Act. No.
3428, as amended, otherwise known as the Workmen's Compensation Act,
until March 31, 1976. Likewise the term of office of incumbent members
of the Workmen's Compensation Commission, including its Chairmen, and
any Commissioner deemed retired as of December 31, 1975 as well as the
present employees and officials of the Bureau of Workmen's Compensation
Unit shall continue up to that date. Thereafter, said office shall be
considered abolished and all officials and personnel thereof shall be
transferred to and mandatorily absorbed by the Department of Labor and
Employment, subject to Presidential Decree No. 6, Letters of
Instructions Nos. 14 and 14-A and the Civil Service Laws and
rules. chanroblesvirtualawlibrary
Such amount as may be necessary to cover the operational expenses of
the Bureau of Workmen's Compensation, the Workmen's Compensation Units,
including the salaries of incumbent personnel for the period up to
March 31, 1976 shall be appropriated from the unprogrammed funds of the
Department of Labor and Employment.
ARTICLE 297. Continuation of insurance policies and
indemnity bonds. — All workmen's compensation insurance policies and
indemnity bonds for self-insured employers existing upon the
effectivity of this Code shall remain in force and effect until the
expiration dates of such policies or the lapse of the period of such
bonds, as the case may be, but in no case beyond December 31, 1974.
Claims may be filed against the insurance carriers and/or self-insured
employers for causes of action which accrued during the existence of
said policies or authority to self-insure.
ARTICLE 298. Abolition of the Court of Industrial
Relations and the National Labor Relations Commission. — The Court of
Industrial Relations and the National Labor Relations Commission
established under Presidential Decree No. 21 are hereby abolished. All
unexpended funds, properties, equipment and records of the Court of
Industrial Relations, and such of its personnel as may be necessary,
are hereby transferred to the Commission and to its regional branches.
All unexpended funds, properties, and equipment of the National Labor
Relations Commission established under Presidential Decree No. 21 are
transferred to the Bureau of Labor Relations. Personnel not absorbed by
or transferred to the Commission shall enjoy benefits granted under
existing laws.
ARTICLE 299. 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 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. Cases on labor relations on appeal
with the Secretary of Labor and Employment or the Office of the
President of the Philippines as of the date of effectivity of this Code
shall remain under their respective jurisdiction and shall be decided
in accordance with the 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 offices of the Department of Labor
and Employment and those pending before the Workmen's Compensation
Commission as of March 31, 1975, shall be processed and adjudicated in
accordance with the law, rules and procedure existing prior to the
effectivity of the Employees' Compensation Commission and State
Insurance Fund.
ARTICLE 300. Personnel whose services are terminated.
— Personnel of agencies or any of their subordinate units whose
services are terminated as a result of the implementation of this Code
shall enjoy the rights and protection provided in Sections 5 and 6 of
Republic Act numbered fifty-four hundred and thirty-five and such other
pertinent laws, rules and regulations. In any case, no lay-off shall be
effected until funds to cover the gratuity and/or retirement benefits
of those laid off are duly certified as available.
ARTICLE 301. Separability provisions. — If any
provision or part of this Code, or the application thereof to any
person or circumstance, is held invalid, the remainder of this Code, or
the application of such provision or part to other persons or
circumstances, shall not be affected thereby.
ARTICLE 302. 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. chanroblesvirtualawlibrary
Done in the City of Manila,
this 1st day of May in the year of our Lord nineteen hundred and
seventy-four.
* Previously numbered Art. 239 but renumbered as Art.
238 when original Art. 238 was repealed.
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