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