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The Labor Code of the Philippines Chapter II

EMANCIPATION OF TENANTS
Presidential decree no. 442, as amended.
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
a decree instituting a labor code thereby revising and consolidating labor and social laws to afford protection to labor, promote
violent conflict and social tension and the redress of such legitimate grievances
employment and human resources development and insure industrial peace based on social justice.
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

PRELIMINARY TITLE 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
Chapter I estate or not shall be deemed owner of a portion constituting a family-size farm of
GENERAL PROVISIONS five (5) hectares, if not irrigated and three (3) hectares, if irrigated.

ARTICLE 1. Name of Decree. - This Decree shall be known as the "Labor Code of In all cases, the land owner may retain a n area of not more than seven (7)
the Philippines". hectares if such landowner is cultivating such area or will now cultivate it.

ARTICLE 2. Date of effectivity. - This Code shall take effect six (6) months after its ARTICLE 9. Determination of land value. - For the purpose of determining the cost
promulgation. of the land to be transferred to the tenant-farmer, the value of the land shall be
equivalent to two and one-half (2-1/2) times the average harvest of three (3)
normal crop years immediately preceding the promulgation of Presidential Decree
ARTICLE 3. Declaration of basic policy. - The State shall afford protection to labor, No. 27 on October 21, 1972.
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 The total cost of the land, including interest at the rate of six percent (6%) per
tenure, and just and humane conditions of work. annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual
amortizations.
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 In case of default, the amortization due shall be paid by the farmers’ cooperative in
regulations, shall be resolved in favor of labor. which the defaulting tenant-farmer is a member, with the cooperative having a
right of recourse against him.

ARTICLE 5. Rules and regulations. - The Department of Labor and other

government agencies charged with the administration and enforcement of this Code The government shall guarantee such amortizations with shares of stock in
or any of its parts shall promulgate the necessary implementing rules and government-owned and government-controlled corporations.
regulations. Such rules and regulations shall become effective fifteen (15) days
after announcement of their adoption in newspapers of general circulation. 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
ARTICLE 6. Applicability. - All rights and benefits granted to workers under this until he has become a full-fledged member of a duly recognized farmers’
Code shall, except as may otherwise be provided herein, apply alike to all workers, cooperative.
whether agricultural or non-agricultural. (As amended by Presidential Decree No.
570-A, November 1, 1974). 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.
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Title I
RECRUITMENT AND PLACEMENT OF WORKERS

Chapter I
GENERAL PROVISIONS

ARTICLE 13. Definitions. - (a) "Worker" means any member of the labor force,
whether employed or unemployed.

Book 1; Pre-Employment (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
ARTICLE 12. Statement of objectives. - It is the policy of the State: 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.
a) To promote and maintain a state of full employment through improved
manpower training, allocation and utilization;
(c) "Private fee-charging employment agency" means any person or entity engaged
in recruitment and placement of workers for a fee which is charged, directly or
b) To protect every citizen desiring to work locally or overseas by securing for him indirectly, from the workers or employers or both.
the best possible terms and conditions of employment;

(d) "License" means a document issued by the Department of Labor authorizing a

c) To facilitate a free choice of available employment by persons seeking work in person or entity to operate a private employment agency.
conformity with the national interest;

(e) "Private recruitment entity" means any person or association engaged in the
d) To facilitate and regulate the movement of workers in conformity with the recruitment and placement of workers, locally or overseas, without charging,
national interest; directly or indirectly, any fee from the workers or employers.

e) To regulate the employment of aliens, including the establishment of a (f) "Authority" means a document issued by the Department of Labor authorizing a
registration and/or work permit system; person or association to engage in recruitment and placement activities as a private
recruitment entity.
f) To strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of workers, (g) "Seaman" means any person employed in a vessel engaged in maritime
locally and overseas, to serve national development objectives; navigation.

g) To insure careful selection of Filipino workers for overseas employment in order (h) "Overseas employment" means employment of a worker outside the Philippines.
to protect the good name of the Philippines abroad.

(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 shall have the
power and authority:

(a) To organize and establish new employment offices in addition to the existing
employment offices under the Department of Labor as the need arises;
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(b) To organize and establish a nationwide job clearance and information system to (c) The Minister of Labor shall have the power to impose and collect fees based on
inform applicants registering with a particular employment office of job rates recommended by the Bureau of Employment Services. Such fees shall be
opportunities in other parts of the country as well as job opportunities abroad; 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.
(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 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.
(d) To require any person, establishment, organization or institution to submit such
employment information as may be prescribed by the Secretary of Labor.
ARTICLE 17. Overseas Employment Development Board. - An Overseas
Employment Development Board is hereby created to undertake, in cooperation
ARTICLE 15. Bureau of Employment Services. - (a) The Bureau of Employment
with relevant entities and agencies, a systematic program for overseas employment
Services shall be primarily responsible for developing and monitoring a
of Filipino workers in excess of domestic needs and to protect their rights to fair
comprehensive employment program. It shall have the power and duty:
and equitable employment practices. It shall have the power and duty:

1. To formulate and develop plans and programs to implement the employment

1. To promote the overseas employment of Filipino workers through a
promotion objectives of this Title;
comprehensive market promotion and development program;

2. To establish and maintain a registration and/or licensing system to regulate

2. To secure the best possible terms and conditions of employment of Filipino
private sector participation in the recruitment and placement of workers, locally and
contract workers on a government-to-government basis and to ensure compliance
overseas, and to secure the best possible terms and conditions of employment for
therewith;
Filipino contract workers and compliance therewith under such rules and regulations
as may be issued by the Minister of Labor;
3. To recruit and place workers for overseas employment on a government-to-
government arrangement and in such other sectors as policy may dictate; and
3. To formulate and develop employment programs designed to benefit
disadvantaged groups and communities;
4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund
for Overseas Workers.
4. To establish and maintain a registration and/or work permit system to regulate
the employment of aliens;
ART. 18. Ban on direct-hiring. - No employer may hire a Filipino worker for
overseas employment except through the Boards and entities authorized by the
5. To develop a labor market information system in aid of proper manpower and
Secretary of Labor. Direct-hiring by members of the diplomatic corps, international
development planning;
organizations and such other employers as may be allowed by the Secretary of
Labor is exempted from this provision.
6. To develop a responsive vocational guidance and testing system in aid of proper
human resources allocation; and
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
7. To maintain a central registry of skills, except seamen. well as establish a data bank in aid of national manpower policy formulation, an
Office of Emigrant Affairs is hereby created in the Department of Labor. The Office
(b) The regional offices of the Ministry of Labor shall have the original and exclusive shall be a unit at the Office of the Secretary and shall initially be manned and
jurisdiction over all matters or cases involving employer-employee relations operated by such personnel and through such funding as are available within the
including money claims, arising out of or by virtue of any law or contracts involving Department and its attached agencies. Thereafter, its appropriation shall be made
Filipino workers for overseas employment except seamen: Provided, That the part of the regular General Appropriations Decree.
Bureau of Employment Services may, in the case of the National Capital Region,
exercise such power, whenever the Minister of Labor deems it appropriate. The (b) The office shall, among others, promote the well-being of emigrants and
decisions of the regional offices of the Bureau of Employment Services, if so maintain their close link to the homeland by:
authorized by the Minister of Labor as provided in this Article, shall be appealable to
the National Labor Relations Commission upon the same grounds provided in Article
1) serving as a liaison with migrant communities;
223 hereof. The decisions of the National Labor Relations Commission shall be final
2) provision of welfare and cultural services;
and inappealable. (Superseded by Exec. Order 797, May 1, 1982).
3) promote and facilitate re-integration of migrants into the national mainstream;
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4) promote economic; political and cultural ties with the communities; and ARTICLE 22. Mandatory remittance of foreign exchange earnings. - It shall be
5) generally to undertake such activities as may be appropriate to enhance such mandatory for all Filipino workers abroad to remit a portion of their foreign
cooperative links. 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 20. National Seamen Board. - (a) A National Seamen Board is hereby
created which shall develop and maintain a comprehensive program for Filipino ARTICLE 23. Composition of the Boards. - (a) The OEDB shall be composed of the
seamen employed overseas. It shall have the power and duty: Secretary of Labor and Employment as Chairman, the Undersecretary of Labor as
Vice-Chairman, and a representative each of the Department of Foreign Affairs, the
Department of National Defense, the Central Bank, the Department of Education,
1. To provide free placement services for seamen;
Culture and Sports, the National Manpower and Youth Council, the Bureau of
Employment Services, a workers’ organization and an employers’ organization and
2. To regulate and supervise the activities of agents or representatives of shipping the Executive Director of the OEDB as members.
companies in the hiring of seamen for overseas employment and secure the best
possible terms of employment for contract seamen workers and secure compliance
(b) The National Seamen Board shall be composed of the Secretary of Labor and
therewith;
Employment as Chairman, the Undersecretary of Labor as Vice-Chairman, the
Commandant of the Philippine Coast Guard, and a representative each of the
3. To maintain a complete registry of all Filipino seamen. Department of Foreign Affairs, the Department of Education, Culture and Sports,
the Central Bank, the Maritime Industry Authority, the Bureau of Employment
(b) The Board shall have original and exclusive jurisdiction over all matters or cases Services, a national shipping association and the Executive Director of the NSB as
including money claims, involving employer-employee relations, arising out of or by members.
virtue of any law or contracts involving Filipino seamen for overseas employment.
The decisions of the Board shall be appealable to the National Labor Relations The members of the Boards shall receive allowances to be determined by the Board
Commission upon the same grounds provided in Article 223 hereof. The decisions of which shall not be more than P2,000.00 per month.
the National Labor Relations Commission shall be final and inappealable.
(c) The Boards shall be attached to the Department of Labor for policy and program
ARTICLE 21. Foreign service role and participation. - To provide ample protection to coordination. They shall each be assisted by a Secretariat headed by an Executive
Filipino workers abroad, the labor attaches, the labor reporting officers duly Director who shall be a Filipino citizen with sufficient experience in manpower
designated by the Secretary of Labor and the Philippine diplomatic or consular administration, including overseas employment activities. The Executive Director
officials concerned shall, even without prior instruction or advice from the home shall be appointed by the President of the Philippines upon the recommendation of
office, exercise the power and duty: the Secretary of Labor and shall receive an annual salary as fixed by law. The
Secretary of Labor shall appoint the other members of the Secretariat.
(a) To provide all Filipino workers within their jurisdiction assistance on all matters
arising out of employment; (d) The Auditor General shall appoint his representative to the Boards to audit their
respective accounts in accordance with auditing laws and pertinent rules and
(b) To insure that Filipino workers are not exploited or discriminated against; regulations.

(c) To verify and certify as requisite to authentication that the terms and conditions ARTICLE 24. Boards to issue rules and collect fees. - The Boards shall issue
of employment in contracts involving Filipino workers are in accordance with the appropriate rules and regulations to carry out their functions. They shall have the
Labor Code and rules and regulations of the Overseas Employment Development power to impose and collect fees from employers concerned, which shall be
Board and National Seamen Board; deposited in the respective accounts of said Boards and be used by them
exclusively to promote their objectives.

(d) To make continuing studies or researches and recommendations on the various

aspects of the employment market within their jurisdiction; Chapter II
REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES

(e) To gather and analyze information on the employment situation and its
probable trends, and to make such information available; and ARTICLE 25. Private sector participation in the recruitment and placement of
workers. -Pursuant to national development objectives and in order to harness and
(f) To perform such other duties as may be required of them from time to time. 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
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overseas, under such guidelines, rules and regulations as may be issued by the (a) To charge or accept, directly or indirectly, any amount greater than that
Secretary of Labor. 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;
ARTICLE 26. Travel agencies prohibited to recruit. - Travel agencies and sales
agencies of airline companies are prohibited from engaging in the business of
recruitment and placement of workers for overseas employment whether for profit (b) To furnish or publish any false notice or information or document in relation to
or not. recruitment or employment;

ARTICLE 27. Citizenship requirement. - Only Filipino citizens or corporations, (c) To give any false notice, testimony, information or document or commit any act
partnerships or entities at least seventy-five percent (75%) of the authorized and of misrepresentation for the purpose of securing a license or authority under this
voting capital stock of which is owned and controlled by Filipino citizens shall be Code.
permitted to participate in the recruitment and placement of workers, locally or
overseas.
(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
ARTICLE 28. Capitalization. - All applicants for authority to hire or renewal of liberate the worker from oppressive terms and conditions of employment;
license to recruit are required to have such substantial capitalization as determined
by the Secretary of Labor.
(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;
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
(f) To engage in the recruitment or placement of workers in jobs harmful to public
it was issued or at any place other than that stated in the license or authority be
health or morality or to the dignity of the Republic of the Philippines;
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 (g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his
prior approval of the Department of Labor. duly authorized representatives;

ARTICLE 30. Registration fees. - The Secretary of Labor shall promulgate a (h) To fail to file reports on the status of employment, placement vacancies,
schedule of fees for the registration of all applicants for license or authority. remittance of foreign exchange earnings, separation from jobs, departures and
such other matters or information as may be required by the Secretary of Labor.
ARTICLE 31. Bonds. - All applicants for license or authority shall post such cash and
surety bonds as determined by the Secretary of Labor to guarantee compliance (i) To substitute or alter employment contracts approved and verified by the
with prescribed recruitment procedures, rules and regulations, and terms and Department of Labor from the time of actual signing thereof by the parties up to
conditions of employment as may be appropriate. and including the periods of expiration of the same without the approval of the
Secretary of Labor;
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 (j) To become an officer or member of the Board of any corporation engaged in
fee until he has obtained employment through its efforts or has actually travel agency or to be engaged directly or indirectly in the management of a travel
commenced employment. Such fee shall be always covered with the appropriate agency; and
receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees. (k) To withhold or deny travel documents from applicant workers before departure
for monetary or financial considerations other than those authorized under this
ARTICLE 33. Reports on employment status. - Whenever the public interest Code and its implementing rules and regulations.
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 ARTICLE 35. Suspension and/or cancellation of license or authority. - The Minister
vacancies, details of job requisitions, separation from jobs, wages, other terms and of Labor shall have the power to suspend or cancel any license or authority to
conditions and other employment data. recruit employees for overseas employment for violation of rules and regulations
issued by the Ministry of Labor, the Overseas Employment Development Board, or
ARTICLE 34. Prohibited practices. - It shall be unlawful for any individual, entity, for violation of the provisions of this and other applicable laws, General Orders and
licensee, or holder of authority: Letters of Instructions.
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Chapter III (c) Any person who is neither a licensee nor a holder of authority under this Title
MISCELLANEOUS PROVISIONS 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
ARTICLE 36. Regulatory power. - The Secretary of Labor shall have the power to
than P100,000 or both such imprisonment and fine, at the discretion of the court;
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 (d) If the offender is a corporation, partnership, association or entity, the penalty
this Title. 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
ARTICLE 37. Visitorial Power. - The Secretary of Labor or his duly authorized
proceedings;
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 violation of any provisions of this Title. (e) 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
ARTICLE 38. Illegal recruitment. - (a) Any recruitment activities, including the
the Overseas Employment Development Board or the National Seamen Board, as
prohibited practices enumerated under Article 34 of this Code, to be undertaken by
the case may be, both of which are authorized to use the same exclusively to
non-licensees or non-holders of authority, shall be deemed illegal and punishable
promote their objectives.
under Article 39 of this Code. The Department of Labor and Employment or any law
enforcement officer may initiate complaints under this Article.
Title II
EMPLOYMENT OF NON-RESIDENT ALIENS
(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. 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
Illegal recruitment is deemed committed by a syndicate if carried out by a group of
obtain an employment permit from the Department of Labor.
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 The employment permit may be issued to a non-resident alien or to the applicant
committed against three (3) or more persons individually or as a group. 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.
(c) The Secretary 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 For an enterprise registered in preferred areas of investments, said employment
a danger to national security and public order or will lead to further exploitation of permit may be issued upon recommendation of the government agency charged
job-seekers. The Secretary shall order the search of the office or premises and with the supervision of said registered enterprise.
seizure of documents, paraphernalia, properties and other implements used in
illegal recruitment activities and the closure of companies, establishments and
ARTICLE 41. Prohibition against transfer of employment. - (a) After the issuance of
entities found to be engaged in the recruitment of workers for overseas
an employment permit, the alien shall not transfer to another job or change his
employment, without having been licensed or authorized to do so.
employer without prior approval of the Secretary of Labor.

ARTICLE 39. Penalties. - (a) The penalty of life imprisonment and a fine of One
(b) Any non-resident alien who shall take up employment in violation of the
Hundred Thousand Pesos (P1000,000.00) shall be imposed if illegal recruitment
provision of this Title and its implementing rules and regulations shall be punished
constitutes economic sabotage as defined herein;
in accordance with the provisions of Articles 289 and 290 of the Labor Code.

(b) Any licensee or holder of authority found violating or causing another to violate
In addition, the alien worker shall be subject to deportation after service of his
any provision of this Title or its implementing rules and regulations shall, upon
sentence.
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; 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 within thirty (30) days after such date indicating their
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names, citizenship, foreign and local addresses, nature of employment and status plan for the development of manpower resources for the entire country in
of stay in the country. The Secretary of Labor shall then determine if they are accordance with the national development plan. The Council shall call upon any
entitled to an employment permit. agency of the Government or the private sector to assist in this effort.

ART. 47. National Manpower Skills Center. - The Council shall establish a National
Manpower Skills Center and regional and local training centers for the purpose of
Book 2 Human Resources Development Program promoting the development of skills. The centers shall be administered and
operated under such rules and regulations as may be established by the Council.
Title I
NATIONAL MANPOWER DEVELOPMENT PROGRAM ART. 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
Chapter I government authorities. The Council shall thereafter administer the national skills
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR standards.
IMPLEMENTATION
ART. 49. Administration of training programs. - The Council shall provide, through
ART. 43. Statement of objective. - It is the objective of this Title to develop human
the Secretariat, instructor training, entrepreneurship development, training in
resources, establish training institutions, and formulate such plans and programs as
vocations, trades and other fields of employment, and assist any employer or
will ensure efficient allocation, development and utilization of the nation’s
organization in training schemes designed to attain its objectives under rules and
manpower and thereby promote employment and accelerate economic and social
regulations which the Council shall establish for this purpose.
growth.

The Council shall exercise, through the Secretariat, authority and jurisdiction over,
ART. 44. Definitions. - As used in this Title:
and administer, on-going technical assistance programs and/or grants-in-aid for
manpower and youth development including those which may be entered into
(a) "Manpower" shall mean that portion of the nation’s population which has actual between the Government of the Philippines and international and foreign
or potential capability to contribute directly to the production of goods and services. organizations and nations, as well as persons and organizations in the Philippines.

(b) "Entrepreneurship" shall mean training for self-employment or assisting In order to integrate the national manpower development efforts, all manpower
individual or small industries within the purview of this Title. 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,
ART. 45. National Manpower and Youth Council; Composition. - To carry out the existing manpower training programs in the government and in the private sector
objectives of this Title, the National Manpower and Youth Council, which is attached shall be reported to the Council which may regulate such programs to make them
to the Department of Labor for policy and program coordination and hereinafter conform with national development programs.
referred to as the Council, shall be composed of the Secretary of Labor as ex-
officio chairman, the Secretary of Education and Culture as ex-officio vice- This Article shall not include apprentices, learners and handicapped workers as
chairman, and as ex-officio members, the Secretary of Economic Planning, the governed by appropriate provisions of this Code.
Secretary of Natural Resources, the Chairman of the Civil Service Commission, the
Secretary of Social Welfare, the Secretary of Local Government, the Secretary of
ART. 50. Industry boards. - The Council shall establish industry boards to assist in
Science and Technology, the Secretary of Trade and Industry and the Director-
the establishment of manpower development schemes, trades and skills standards
General of the Council. The Director General shall have no vote.
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
In addition, the President shall appoint the following members from the private to be established by the Council and in consultation with the National Economic and
sector: two (2) representatives of national organizations of employers; two (2) Development Authority.
representatives of national workers’ organizations; and one representative of
national family and youth organizations, each for a term of three (3) years.
The maintenance and operations of the industry boards shall be financed through a
funding scheme under such rates of fees and manners of collection and
ART. 46. National Manpower Plan. - The Council shall formulate a long-term disbursements as may be determined by the Council.
national manpower plan for the optimum allocation, development and utilization of
manpower for employment, entrepreneurship and economic and social growth. This
ART. 51. Employment service training functions. - The Council shall utilize the
manpower plan shall, after adoption by the Council, be updated annually and
employment service of the Department of Labor for the placement of its graduates.
submitted to the President for his approval. Thereafter, it shall be the controlling
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The Bureau of Employment Services shall render assistance to the Council in the (c) To carry out the manpower plan as the implementing arm of the Council;
measurement of unemployment and underemployment, conduct of local manpower
resource surveys and occupational studies including an inventory of the labor force,
(d) To effect the efficient performance of the functions of the Council and the
establishment and maintenance without charge of a national register of technicians
achievement of the objectives of this Title;
who have successfully completed a training program under this Act, and skilled
manpower including its publication, maintenance of an adequate and up-to-date
system of employment information. (e) To determine specific allocation of resources for the projects to be undertaken
pursuant to approved manpower plans;
ART. 52. Incentive Scheme. - An additional deduction from taxable income of one-
half (1/2) of the value of labor training expenses incurred for development (f) To submit to the Council periodic reports on progress and accomplishment of
programs shall be granted to the person or enterprise concerned provided that such work programs;
development programs, other than apprenticeship, are approved by the Council and
the deduction does not exceed ten percent (10%) of the direct labor wage. (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;
There shall be a review of the said scheme two years after its implementation.
(h) To enter into agreements to implement approved plans and programs and
ART. 53. Council Secretariat. - The Council shall have a Secretariat headed by a perform any and all such acts as will fulfill the objectives of this Code as well as
Director-General who shall be assisted by a Deputy Director-General, both of whom ensure the efficient performance of the functions of the Council; and
shall be career administrators appointed by the President of the Philippines on
recommendation of the Secretary of Labor. The Secretariat shall be under the (i) To perform such other functions as may be authorized by the Council.
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 ART. 54. Regional manpower development offices. - The Council shall create
other offices as may be necessary. 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
The Director-General shall have the rank and emoluments of an undersecretary and national manpower plan; recommend programs for the regional level agencies
shall serve for a term of ten (10) years. The Executive-Directors of the Office of engaged in manpower and youth development within the policies formulated by the
Manpower Planning and Development, the Office of Vocational Preparation and the Council; and administer and supervise Secretariat training programs within the
National Manpower Skills Center shall have the rank and emoluments of a bureau region and perform such other functions as may be authorized by the Council.
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 ART. 55. Consultants and technical assistance, publication and research. - In
a master’s degree or its equivalent, and experience in national planning and pursuing its objectives, the Council is authorized to set aside a portion of its
development of human resources. The Executive Director of the National Manpower appropriation for the hiring of the services of qualified consultants, and/or private
Skills Center shall, in addition to the foregoing qualifications, have undergone organizations for research work and publication. It shall avail itself of the services
training in center management. Executive Directors shall be appointed by the of the Government as may be required.
President on the recommendations of the Secretary of Labor and Employment.
ART. 56. Rules and regulations. - The Council shall define its broad functions and
The Director-General shall appoint such personnel necessary to carry out the issue appropriate rules and regulations necessary to implement the provision of this
objectives, policies and functions of the Council subject to Civil Service rules. The Code.
regular professional and technical personnel shall be exempt from WAPCO rules and
regulations. Title II
TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
The Secretariat shall have the following functions and responsibilities:
Chapter I
APPRENTICES
(a) To prepare and recommend the manpower plan for approval by the Council;
ART. 57. Statement of objectives. - This Title aims:
(b) To recommend allocation of resources for the implementation of the manpower
plan as approved by the Council; (1) To help meet the demand of the economy for trained manpower;
(2) To establish a national apprenticeship program through the participation of
employers, workers and government and non-government agencies; and
 9

(3) To establish apprenticeship standards for the protection of apprentices. An apprenticeship agreement with a minor shall be signed in his behalf by his
parent or guardian, if the latter is not available, by an authorized representative of
the Department of Labor, and the same shall be binding during its lifetime.
ART. 58. Definition of Terms. - As used in this Title:

Every apprenticeship agreement entered into under this Title shall be ratified by the
(a) "Apprenticeship" means practical training on the job supplemented by related
appropriate apprenticeship committees, if any, and a copy thereof shall be
theoretical instruction.
furnished both the employer and the apprentice.

(b) An "apprentice" is a worker who is covered by a written apprenticeship

ART. 63. Venue of apprenticeship programs. - Any firm, employer, group or
agreement with an individual employer or any of the entities recognized under this
association, industry organization or civic group wishing to organize an
Chapter.
apprenticeship program may choose from any of the following apprenticeship
schemes as the training venue for apprentice:
(c) An "apprenticeable occupation" means any trade, form of employment or
occupation which requires more than three (3) months of practical training on the
(a) Apprenticeship conducted entirely by and within the sponsoring firm,
job supplemented by related theoretical instruction.
establishment or entity;

(d) "Apprenticeship agreement" is an employment contract wherein the employer

(b) Apprenticeship entirely within a Department of Labor and Employment training
binds himself to train the apprentice and the apprentice in turn accepts the terms of
center or other public training institution; or
training.

(c) Initial training in trade fundamentals in a training center or other institution with
ART. 59. Qualifications of apprentice. - To qualify as an apprentice, a person shall:
subsequent actual work participation within the sponsoring firm or entity during the
final stage of training.
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for appropriate tests; and
ART. 64. Sponsoring of apprenticeship program. - Any of the apprenticeship
(c) Possess the ability to comprehend and follow oral and written instructions.
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
Trade and industry associations may recommend to the Secretary of Labor training of apprentices may be undertaken:
appropriate educational requirements for different occupations.
(a) In the premises of the sponsoring employer in the case of individual
ART. 60. Employment of apprentices. - Only employers in the highly technical apprenticeship programs;
industries may employ apprentices and only in apprenticeable occupations
approved by the Secretary of Labor and Employment. (As amended by Section 1,
(b) In the premises of one or several designated firms in the case of programs
Executive Order No. 111, December 24, 1986).
sponsored by a group or association of employers or by a civic organization; or

ART. 61. Contents of apprenticeship agreements. - Apprenticeship agreements,

(c) In a Department of Labor and Employment training center or other public
including the wage rates of apprentices, shall conform to the rules issued by the
training institution.
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 percent of the applicable ART. 65. Investigation of violation of apprenticeship agreement. - Upon complaint
minimum wage, may be entered into only in accordance with apprenticeship of any interested person or upon its own initiative, the appropriate agency of the
programs duly approved by the Secretary of Labor and Employment. The Department of Labor and Employment or its authorized representative shall
Department shall develop standard model programs of apprenticeship. (As investigate any violation of an apprenticeship agreement pursuant to such rules and
amended by Section 1, Executive Order No. 111, December 24, 1986). regulations as may be prescribed by the Secretary of Labor and Employment.

ART. 62. Signing of apprenticeship agreement. -Every apprenticeship agreement ART. 66. Appeal to the Secretary of Labor and Employment. - The decision of the
shall be signed by the employer or his agent, or by an authorized representative of authorized agency of the Department of Labor and Employment may be appealed
any of the recognized organizations, associations or groups and by the apprentice. by any aggrieved person to the Secretary of Labor and Employment within five (5)
days from receipt of the decision. The decision of the Secretary of Labor and
Employment shall be final and executory.
 10

ART. 67. Exhaustion of administrative remedies. - No person shall institute any Chapter II
action for the enforcement of any apprenticeship agreement or damages for breach LEARNERS
of any such agreement, unless he has exhausted all available administrative
remedies. ART. 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
ART. 68. Aptitude testing of applicants. - Consonant with the minimum
which shall not exceed three (3) months.
qualifications of apprentice-applicants required under this Chapter, employers or
entities with duly recognized apprenticeship programs shall have primary
responsibility for providing appropriate aptitude tests in the selection of ART. 74. When learners may be hired. - Learners may be employed when no
apprentices. If they do not have adequate facilities for the purpose, the Department experienced workers are available, the employment of learners is necessary to
of Labor and Employment shall perform the service free of charge. prevent curtailment of employment opportunities, and the employment does not
create unfair competition in terms of labor costs or impair or lower working
standards.
ART. 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 ART. 75. Learnership agreement. - Any employer desiring to employ learners shall
responsibility, the same may be delegated to an appropriate government agency. enter into a learnership agreement with them, which agreement shall include:

ART. 70. Voluntary organization of apprenticeship programs; exemptions. - (a) The (a) The names and addresses of the learners;
organization of apprenticeship program shall be primarily a voluntary undertaking (b) The duration of the learnership period, which shall not exceed three (3)
by employers; months;

(b) When national security or particular requirements of economic development so (c) The wages or salary rates of the learners which shall begin at not less than
demand, the President of the Philippines may require compulsory training of seventy-five percent (75%) of the applicable minimum wage; and
apprentices in certain trades, occupations, jobs or employment levels where
shortage of trained manpower is deemed critical as determined by the Secretary of
(d) A commitment to employ the learners if they so desire, as regular employees
Labor and Employment. Appropriate rules in this connection shall be promulgated
upon completion of the learnership. All learners who have been allowed or suffered
by the Secretary of Labor and Employment as the need arises; and
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
(c) Where services of foreign technicians are utilized by private companies in through no fault of the learners.
apprenticeable trades, said companies are required to set up appropriate
apprenticeship programs.
The learnership agreement shall be subject to inspection by the Secretary of Labor
and Employment or his duly authorized representative.
ART. 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
ART. 76. Learners in piecework. - Learners employed in piece or incentive-rate jobs
developing the productivity and efficiency of apprentices shall be granted to the
during the training period shall be paid in full for the work done.
person or enterprise organizing an apprenticeship program: Provided, That such
ART. 77. Penalty clause. - Any violation of this Chapter or its implementing rules
program is duly recognized by the Department of Labor and Employment: Provided,
and regulations shall be subject to the general penalty clause provided for in this
further, That such deduction shall not exceed ten (10%) percent of direct labor
Code.
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 wage.
Chapter III
HANDICAPPED WORKERS
ART. 72. Apprentices without compensation. - The Secretary of Labor and
Employment may authorize the hiring of apprentices without compensation whose ART. 78. Definition. - Handicapped workers are those whose earning capacity is
training on the job is required by the school or training program curriculum or as impaired by age or physical or mental deficiency or injury.
requisite for graduation or board examination.
ART. 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.
 11

ART. 80. Employment agreement. - Any employer who employs handicapped Health personnel in cities and municipalities with a population of at least one million
workers shall enter into an employment agreement with them, which agreement (1,000,000) or in hospitals and clinics with a bed capacity of at least one hundred
shall include: (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
a. The names and addresses of the handicapped workers to be employed;
case, they shall be entitled to an additional compensation of at least thirty percent
b. The rate to be paid the handicapped workers which shall not be less than
(30%) of their regular wage for work on the sixth day. For purposes of this
seventy five (75%) percent of the applicable legal minimum wage;
Article, "health personnel" shall include resident physicians, nurses, nutritionists,
c. The duration of employment period; and
dietitians, pharmacists, social workers, laboratory technicians, paramedical
d. The work to be performed by handicapped workers.
technicians, psychologists, midwives, attendants and all other hospital or clinic
personnel.
The employment agreement shall be subject to inspection by the Secretary of Labor
or his duly authorized representative.
ART. 84. Hours worked. - Hours worked shall include (a) all time during which an
employee is required to be on duty or to be at a prescribed workplace; and (b) all
ART. 81. Eligibility for apprenticeship. - Subject to the appropriate provisions of this time during which an employee is suffered or permitted to work.
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
Rest periods of short duration during working hours shall be counted as hours
the particular occupations for which they are hired.
worked.

ART. 85. Meal periods. - Subject to such regulations as the Secretary of Labor may
prescribe, it shall be the duty of every employer to give his employees not less than
sixty (60) minutes time-off for their regular meals.
Book 3 Conditions of Employment
ART. 86. Night shift differential. - Every employee shall be paid a night shift
Title I differential of not less than ten percent (10%) of his regular wage for each hour of
WORKING CONDITIONS AND REST PERIODS work performed between ten o’clock in the evening and six o’clock in the morning.

Chapter I
HOURS OF WORK ART. 87. Overtime work. - Work may be performed beyond eight (8) hours a day
provided that the employee is paid for the overtime work, an additional
compensation equivalent to his regular wage plus at least twenty-five percent
ART. 82. Coverage. - The provisions of this Title shall apply to employees in all (25%) thereof. Work performed beyond eight hours on a holiday or rest day shall
establishments and undertakings whether for profit or not, but not to government be paid an additional compensation equivalent to the rate of the first eight hours on
employees, managerial employees, field personnel, members of the family of the a holiday or rest day plus at least thirty percent (30%) thereof.
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 ART. 88. Undertime not offset by overtime. - Undertime work on any particular day
the Secretary of Labor in appropriate regulations. 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
As used herein, "managerial employees" refer to those whose primary duty consists employer from paying the additional compensation required in this Chapter.
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 ART. 89. Emergency overtime work. - Any employee may be required by the
managerial staff. employer to perform overtime work in any of the following cases:

"Field personnel" shall refer to non-agricultural employees who regularly perform (a) When the country is at war or when any other national or local emergency has
their duties away from the principal place of business or branch office of the been declared by the National Assembly or the Chief Executive;
employer and whose actual hours of work in the field cannot be determined with
reasonable certainty.
(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
ART. 83. Normal hours of work. - The normal hours of work of any employee shall caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other
not exceed eight (8) hours a day. disaster or calamity;
 12

(c) When there is urgent work to be performed on machines, installations, or (e) Where the nature of the work requires continuous operations and the stoppage
equipment, in order to avoid serious loss or damage to the employer or some other of work may result in irreparable injury or loss to the employer; and
cause of similar nature;
(f) Under other circumstances analogous or similar to the foregoing as determined
(d) When the work is necessary to prevent loss or damage to perishable goods; and by the Secretary of Labor and Employment.

(e) Where the completion or continuation of the work started before the eighth ART. 93. Compensation for rest day, Sunday or holiday work. - (a) Where an
hour is necessary to prevent serious obstruction or prejudice to the business or employee is made or permitted to work on his scheduled rest day, he shall be paid
operations of the employer. an additional compensation of at least thirty percent (30%) of his regular wage. An
employee shall be entitled to such additional compensation for work performed on
Sunday only when it is his established rest day.
Any employee required to render overtime work under this Article shall be paid the
additional compensation required in this Chapter.
(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
ART. 90. Computation of additional compensation. - For purposes of computing
compensation of at least thirty percent (30%) of his regular wage for work
overtime and other additional remuneration as required by this Chapter,
performed on Sundays and holidays.
the "regular wage" of an employee shall include the cash wage only, without
deduction on account of facilities provided
(c) Work performed on any special holiday shall be paid an additional compensation
of at least thirty percent (30%) of the regular wage of the employee. Where such
holiday work falls on the employee’s scheduled rest day, he shall be entitled to an
Chapter II
additional compensation of at least fifty per cent (50%) of his regular wage.
WEEKLY REST PERIODS

(d) Where the collective bargaining agreement or other applicable employment

ART. 91. Right to weekly rest day. - (a) It shall be the duty of every employer, contract stipulates the payment of a higher premium pay than that prescribed
whether operating for profit or not, to provide each of his employees a rest period under this Article, the employer shall pay such higher rate.
of not less than twenty-four (24) consecutive hours after every six (6) consecutive
normal work days.
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES
(b) The employer shall determine and schedule the weekly rest day of his AND SERVICE CHARGES
employees subject to collective bargaining agreement and to such rules and
regulations as the Secretary of Labor and Employment may provide. However, the
employer shall respect the preference of employees as to their weekly rest day ART. 94. Right to holiday pay. - (a) Every worker shall be paid his regular daily
when such preference is based on religious grounds. wage during regular holidays, except in retail and service establishments regularly
employing less than ten (10) workers;
ART. 92. When employer may require work on a rest day. - The employer may
require his employees to work on any day: (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
(a) In case of actual or impending emergencies caused by serious accident, fire,
flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss (c) As used in this Article, "holiday" includes: New Year’s Day, Maundy Thursday,
of life and property, or imminent danger to public safety; 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.
(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;
ART. 95. Right to service incentive leave. - (a) Every employee who has rendered
at least one year of service shall be entitled to a yearly service incentive leave of
(c) In the event of abnormal pressure of work due to special circumstances, where
five days with pay.
the employer cannot ordinarily be expected to resort to other measures;

(b) This provision shall not apply to those who are already enjoying the benefit
(d) To prevent loss or damage to perishable goods;
herein provided, those enjoying vacation leave with pay of at least five days and
those employed in establishments regularly employing less than ten employees or
 13

in establishments exempted from granting this benefit by the Secretary of Labor determined by the Secretary of Labor and Employment, of board, lodging, or other
and Employment after considering the viability or financial condition of such facilities customarily furnished by the employer to the employee. "Fair and
establishment. reasonable value" shall not include any profit to the employer, or to any person
affiliated with the employer.
(c) The grant of benefit in excess of that provided herein shall not be made a
subject of arbitration or any court or administrative action. ART. 98. Application of Title. - This Title shall not apply to farm tenancy or
leasehold, domestic service and persons working in their respective homes in
needle work or in any cottage industry duly registered in accordance with law.
ART. 96. Service charges. - All service charges collected by hotels, restaurants and
similar establishments shall be distributed at the rate of eighty-five percent (85%)
for all covered employees and fifteen percent (15%) for management. The share of
the employees shall be equally distributed among them. In case the service charge Chapter II
is abolished, the share of the covered employees shall be considered integrated in MINIMUM WAGE RATES
their wages.
ART. 99. Regional minimum wages. - The minimum wage rates for agricultural and
non-agricultural employees and workers in each and every region of the country
shall be those prescribed by the Regional Tripartite Wages and Productivity
Title II
Boards. (As amended by Section 3, Republic Act No. 6727, June 9, 1989).
WAGES

Chapter I ART. 100. Prohibition against elimination or diminution of benefits. - Nothing in this
PRELIMINARY MATTERS Book shall be construed to eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at the time of promulgation of this Code.
ART. 97. Definitions. - As used in this Title:
ART. 101. Payment by results. - (a) The Secretary of Labor and Employment shall
regulate the payment of wages by results, including pakyao, piecework, and other
(a) "Person" means an individual, partnership, association, corporation, business
non-time work, in order to ensure the payment of fair and reasonable wage rates,
trust, legal representatives, or any organized group of persons.
preferably through time and motion studies or in consultation with representatives
of workers’ and employers’ organizations.
(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
Chapter III
branches, subdivisions and instrumentalities, all government-owned or controlled
PAYMENT OF WAGES
corporations and institutions, as well as non-profit private institutions, or
organizations.
ART. 102. Forms of payment. - No employer shall pay the wages of an employee by
means of promissory notes, vouchers, coupons, tokens, tickets, chits, or any object
(c) "Employee" includes any individual employed by an employer. other than legal tender, even when expressly requested by the employee.

(d) "Agriculture" includes farming in all its branches and, among other things, Payment of wages by check or money order shall be allowed when such manner of
includes cultivation and tillage of soil, dairying, the production, cultivation, growing payment is customary on the date of effectivity of this Code, or is necessary
and harvesting of any agricultural and horticultural commodities, the raising of because of special circumstances as specified in appropriate regulations to be
livestock or poultry, and any practices performed by a farmer on a farm as an issued by the Secretary of Labor and Employment or as stipulated in a collective
incident to or in conjunction with such farming operations, but does not include the bargaining agreement.
manufacturing or processing of sugar, coconuts, abaca, tobacco, pineapples or
other farm products.
ART. 103. Time of payment. - Wages shall be paid at least once every two (2)
weeks or twice a month at intervals not exceeding sixteen (16) days. If on account
(e) "Employ" includes to suffer or permit to work. 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
(f) "Wage" paid to any employee shall mean the remuneration or earnings, however pay the wages immediately after such force majeure or circumstances have ceased.
designated, capable of being expressed in terms of money, whether fixed or No employer shall make payment with less frequency than once a month.
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 The payment of wages of employees engaged to perform a task which cannot be
written or unwritten contract of employment for work done or to be done, or for completed in two (2) weeks shall be subject to the following conditions, in the
services rendered or to be rendered and includes the fair and reasonable value, as absence of a collective bargaining agreement or arbitration award:
 14

(1) That payments are made at intervals not exceeding sixteen (16) days, in There is "labor-only" contracting where the person supplying workers to an
proportion to the amount of work completed; 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
(2) That final settlement is made upon completion of the work.
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
ART. 104. Place of payment. - Payment of wages shall be made at or near the place the workers in the same manner and extent as if the latter were directly employed
of undertaking, except as otherwise provided by such regulations as the Secretary by him.
of Labor and Employment may prescribe under conditions to ensure greater
protection of wages.
ART. 107. Indirect employer. - The provisions of the immediately preceding article
shall likewise apply to any person, partnership, association or corporation which,
ART. 105. Direct payment of wages. - Wages shall be paid directly to the workers to not being an employer, contracts with an independent contractor for the
whom they are due, except: performance of any work, task, job or project.

(a) In cases of force majeure rendering such payment impossible or under other ART. 108. Posting of bond. - An employer or indirect employer may require the
special circumstances to be determined by the Secretary of Labor and Employment contractor or subcontractor to furnish a bond equal to the cost of labor under
in appropriate regulations, in which case, the worker may be paid through another contract, on condition that the bond will answer for the wages due the employees
person under written authority given by the worker for the purpose; or should the contractor or subcontractor, as the case may be, fail to pay the same.

(b) Where the worker has died, in which case, the employer may pay the wages of ART. 109. Solidary liability. - The provisions of existing laws to the contrary
the deceased worker to the heirs of the latter without the necessity of intestate notwithstanding, every employer or indirect employer shall be held responsible with
proceedings. The claimants, if they are all of age, shall execute an affidavit his contractor or subcontractor for any violation of any provision of this Code. For
attesting to their relationship to the deceased and the fact that they are his heirs, purposes of determining the extent of their civil liability under this Chapter, they
to the exclusion of all other persons. If any of the heirs is a minor, the affidavit shall be considered as direct employers.
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
ART. 110. Worker preference in case of bankruptcy. - In the event of bankruptcy or
of Labor and Employment or his representative. The representative of the Secretary
liquidation of an employer’s business, his workers shall enjoy first preference as
of Labor and Employment shall act as referee in dividing the amount paid among
regards their wages and other monetary claims, any provisions of law to the
the heirs. The payment of wages under this Article shall absolve the employer of
contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in
any further liability with respect to the amount paid.
full before claims of the government and other creditors may be paid. (As amended
by Section 1, Republic Act No. 6715, March 21, 1989).
ART. 106. Contractor or subcontractor. - Whenever an employer enters into a
contract with another person for the performance of the former’s work, the
ART. 111. Attorney’s fees. - (a) In cases of unlawful withholding of wages, the
employees of the contractor and of the latter’s subcontractor, if any, shall be paid
culpable party may be assessed attorney’s fees equivalent to ten percent of the
in accordance with the provisions of this Code.
amount of wages recovered.

In the event that the contractor or subcontractor fails to pay the wages of his
(b) It shall be unlawful for any person to demand or accept, in any judicial or
employees in accordance with this Code, the employer shall be jointly and severally
administrative proceedings for the recovery of wages, attorney’s fees which exceed
liable with his contractor or subcontractor to such employees to the extent of the
ten percent of the amount of wages recovered.
work performed under the contract, in the same manner and extent that he is liable
to employees directly employed by him.

Chapter IV
The Secretary of Labor and Employment may, by appropriate regulations, restrict
PROHIBITIONS REGARDING WAGES
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
ART. 112. Non-interference in disposal of wages. - No employer shall limit or
differentiations within these types of contracting and determine who among the
otherwise interfere with the freedom of any employee to dispose of his wages. He
parties involved shall be considered the employer for purposes of this Code, to
shall not in any manner force, compel, or oblige his employees to purchase
prevent any violation or circumvention of any provision of this Code.
merchandise, commodities or other property from any other person, or otherwise
make use of any store or services of such employer or any other person.
 15

ART. 113. Wage deduction. - No employer, in his own behalf or in behalf of any Chapter V
person, shall make any deduction from the wages of his employees, except: WAGE STUDIES, WAGE AGREEMENTS & WAGE DETERMINATION

ART. 120. Creation of National Wages and Productivity Commission. - There is

(a) In cases where the worker is insured with his consent by the employer, and the
hereby created a National Wages and Productivity Commission, hereinafter referred
deduction is to recompense the employer for the amount paid by him as premium
to as the Commission, which shall be attached to the Department of Labor and
on the insurance;
Employment (DOLE) for policy and program coordination. (As amended by Republic
Act No. 6727, June 9, 1989).
(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
ART. 121. Powers and functions of the Commission. - The Commission shall have
worker concerned; and
the following powers and functions:

(c) In cases where the employer is authorized by law or regulations issued by the
(a) To act as the national consultative and advisory body to the President of the
Secretary of Labor and Employment.
Philippines and Congress on matters relating to wages, incomes and productivity;

ART. 114. Deposits for loss or damage. - No employer shall require his worker to
(b) To formulate policies and guidelines on wages, incomes and productivity
make deposits from which deductions shall be made for the reimbursement of loss
improvement at the enterprise, industry and national levels;
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 (c) To prescribe rules and guidelines for the determination of appropriate minimum
necessary or desirable as determined by the Secretary of Labor and Employment in wage and productivity measures at the regional, provincial, or industry levels;
appropriate rules and regulations.
(d) To review regional wage levels set by the Regional Tripartite Wages and
ART. 115. Limitations. - No deduction from the deposits of an employee for the Productivity Boards to determine if these are in accordance with prescribed
actual amount of the loss or damage shall be made unless the employee has been guidelines and national development plans;
heard thereon, and his responsibility has been clearly shown.
(e) To undertake studies, researches and surveys necessary for the attainment of
ART. 116. Withholding of wages and kickbacks prohibited. - It shall be unlawful for its functions and objectives, and to collect and compile data and periodically
any person, directly or indirectly, to withhold any amount from the wages of a disseminate information on wages and productivity and other related information,
worker or induce him to give up any part of his wages by force, stealth, including, but not limited to, employment, cost-of-living, labor costs, investments
intimidation, threat or by any other means whatsoever without the worker’s and returns;
consent.
(f) To review plans and programs of the Regional Tripartite Wages and Productivity
ART. 117. Deduction to ensure employment. - It shall be unlawful to make any Boards to determine whether these are consistent with national development plans;
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
(g) To exercise technical and administrative supervision over the Regional Tripartite
retention in employment.
Wages and Productivity Boards;

ART. 118. Retaliatory measures. - It shall be unlawful for an employer to refuse to

(h) To call, from time to time, a national tripartite conference of representatives of
pay or reduce the wages and benefits, discharge or in any manner discriminate
government, workers and employers for the consideration of measures to promote
against any employee who has filed any complaint or instituted any proceeding
wage rationalization and productivity; and
under this Title or has testified or is about to testify in such proceedings.

(i) To exercise such powers and functions as may be necessary to implement this
ART. 119. False reporting. - It shall be unlawful for any person to make any
Act.
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.
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
 16

employers’ sectors, respectively, and who shall serve for a term of five (5) years. respective regional offices of the Department of Labor and Employment within their
The Executive Director of the Commission shall also be a member of the territorial jurisdiction; Provided, however, That the Regional Boards shall have
Commission. technical supervision over the regional office of the Department of Labor and
Employment with respect to the implementation of said plans, programs and
projects.
The Commission shall be assisted by a Secretariat to be headed by an Executive
Director and two (2) Deputy Directors, who shall be appointed by the President of
the Philippines, upon the recommendation of the Secretary of Labor and Each Regional Board shall be composed of the Regional Director of the Department
Employment. of Labor and Employment as chairman, the Regional Directors of the National
Economic and Development Authority and the Department of Trade and Industry as
vice-chairmen and two (2) members each from workers’ and employers’ sectors
The Executive Director shall have the same rank, salary, benefits and other
who shall be appointed by the President of the Philippines, upon the
emoluments as that of a Department Assistant Secretary, while the Deputy
recommendation of the Secretary of Labor and Employment, to be made on the
Directors shall have the same rank, salary, benefits and other emoluments as that
basis of the list of nominees submitted by the workers’ and employers’ sectors,
of a Bureau Director. The members of the Commission representing labor and
respectively, and who shall serve for a term of five (5) years.
management shall have the same rank, emoluments, allowances and other benefits
as those prescribed by law for labor and management representatives in the
Employees’ Compensation Commission. (As amended by Republic Act No. 6727, Each Regional Board to be headed by its chairman shall be assisted by a
June 9, 1989). Secretariat. (As amended by Republic Act No. 6727, June 9, 1989).

ART. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is ART. 123. Wage Order. - Whenever conditions in the region so warrant, the
hereby created Regional Tripartite Wages and Productivity Boards, hereinafter Regional Board shall investigate and study all pertinent facts; and based on the
referred to as Regional Boards, in all regions, including autonomous regions as may standards and criteria herein prescribed, shall proceed to determine whether a
be established by law. The Commission shall determine the offices/headquarters of Wage Order should be issued. Any such Wage Order shall take effect after fifteen
the respective Regional Boards. (15) days from its complete publication in at least one (1) newspaper of general
circulation in the region.
The Regional Boards shall have the following powers and functions in their
respective territorial jurisdictions: 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.
(a) To develop plans, programs and projects relative to wages, incomes and
productivity improvement for their respective regions;
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
(b) To determine and fix minimum wage rates applicable in their regions, provinces
such order. It shall be mandatory for the Commission to decide such appeal within
or industries therein and to issue the corresponding wage orders, subject to
sixty (60) calendar days from the filing thereof.
guidelines issued by the Commission;

The filing of the appeal does not stay the order unless the person appealing such
(c) To undertake studies, researches, and surveys necessary for the attainment of
order shall file with the Commission, an undertaking with a surety or sureties
their functions, objectives and programs, and to collect and compile data on wages,
satisfactory to the Commission for the payment to the employees affected by the
incomes, productivity and other related information and periodically disseminate
order of the corresponding increase, in the event such order is affirmed. (As
the same;
amended by Republic Act No. 6727, June 9, 1989).

(d) To coordinate with the other Regional Boards as may be necessary to attain the
ART. 124. Standards/Criteria for minimum wage fixing. - The regional minimum
policy and intention of this Code;
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
(e) To receive, process and act on applications for exemption from prescribed wage health, efficiency and general well-being of the employees within the framework of
rates as may be provided by law or any Wage Order; and the national economic and social development program. In the determination of
such regional minimum wages, the Regional Board shall, among other relevant
(f) To exercise such other powers and functions as may be necessary to carry out factors, consider the following:
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
 17

(a) The demand for living wages; such wage structure based on skills, length of service, or other logical bases of
(b) Wage adjustment vis-à-vis the consumer price index; differentiation.
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
All workers paid by result, including those who are paid on
(e) The need to induce industries to invest in the countryside;
piecework, takay, pakyaw or task basis, shall receive not less than the prescribed
(f) Improvements in standards of living;
wage rates per eight (8) hours of work a day, or a proportion thereof for working
(g) The prevailing wage levels;
less than eight (8) hours.
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of All recognized learnership and apprenticeship agreements shall be considered
economic and social development. automatically modified insofar as their wage clauses are concerned to reflect the
prescribed wage rates. (As amended by Republic Act No. 6727, June 9, 1989).
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 ART. 125. Freedom to bargain. - No wage order shall be construed to prevent
wages varying with industries, provinces or localities if in the judgment of the workers in particular firms or enterprises or industries from bargaining for higher
Regional Board, conditions make such local differentiation proper and necessary to wages with their respective employers. (As amended by Republic Act No. 6727,
effectuate the purpose of this Title. June 9, 1989).

Any person, company, corporation, partnership or any other entity engaged in ART. 126. Prohibition against injunction. – No preliminary or permanent injunction
business shall file and register annually with the appropriate Regional Board, or temporary restraining order may be issued by any court, tribunal or other entity
Commission and the National Statistics Office, an itemized listing of their labor against any proceedings before the Commission or the Regional Boards. (As
component, specifying the names of their workers and employees below the amended by Republic Act No. 6727, June 9, 1989).
managerial level, including learners, apprentices and disabled/handicapped workers
who were hired under the terms prescribed in the employment contracts, and their ART. 127. Non-diminution of benefits. - No wage order issued by any regional board
corresponding salaries and wages. shall provide for wage rates lower than the statutory minimum wage rates
prescribed by Congress. (As amended by Republic Act No. 6727, June 9, 1989).
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 Chapter VI
distortions. Any dispute arising from wage distortions shall be resolved through the ADMINISTRATION AND ENFORCEMENT
grievance procedure under their collective bargaining agreement and, if it remains
unresolved, through voluntary arbitration. Unless otherwise agreed by the parties in ART. 128. Visitorial and enforcement power. - (a) The Secretary of Labor and
writing, such dispute shall be decided by the voluntary arbitrators within ten (10) Employment or his duly authorized representatives, including labor regulation
calendar days from the time said dispute was referred to voluntary arbitration. 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
In cases where there are no collective agreements or recognized labor unions, the therefrom, to question any employee and investigate any fact, condition or matter
employers and workers shall endeavor to correct such distortions. Any dispute which may be necessary to determine violations or which may aid in the
arising therefrom shall be settled through the National Conciliation and Mediation enforcement of this Code and of any labor law, wage order or rules and regulations
Board and, if it remains unresolved after ten (10) calendar days of conciliation, issued pursuant thereto.
shall be referred to the appropriate branch of the National Labor Relations
Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous (b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the
hearings and decide the dispute within twenty (20) calendar days from the time contrary, and in cases where the relationship of employer-employee still exists, the
said dispute is submitted for compulsory arbitration. 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
The pendency of a dispute arising from a wage distortion shall not in any way delay provisions of this Code and other labor legislation based on the findings of labor
the applicability of any increase in prescribed wage rates pursuant to the provisions employment and enforcement officers or industrial safety engineers made in the
of law or wage order. 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
As used herein, a wage distortion shall mean a situation where an increase in
employment and enforcement officer and raises issues supported by documentary
prescribed wage rates results in the elimination or severe contraction of intentional
proofs which were not considered in the course of inspection. (As amended by
quantitative differences in wage or salary rates between and among employee
Republic Act No. 7730, June 2, 1994).
groups in an establishment as to effectively obliterate the distinctions embodied in
 18

An order issued by the duly authorized representative of the Secretary of Labor and of Labor and Employment to be used exclusively for the amelioration and benefit of
Employment under this Article may be appealed to the latter. In case said order workers.
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
Any decision or resolution of the Regional Director or hearing officer pursuant to
accredited by the Secretary of Labor and Employment in the amount equivalent to
this provision may be appealed on the same grounds provided in Article 223 of this
the monetary award in the order appealed from. (As amended by Republic Act No.
Code, within five (5) calendar days from receipt of a copy of said decision or
7730, June 2, 1994).
resolution, to the National Labor Relations Commission which shall resolve the
appeal within ten (10) calendar days from the submission of the last pleading
(c) The Secretary of Labor and Employment may likewise order stoppage of work or required or allowed under its rules.
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
The Secretary of Labor and Employment or his duly authorized representative may
imminent danger to the health and safety of workers in the workplace. Within
supervise the payment of unpaid wages and other monetary claims and benefits,
twenty-four hours, a hearing shall be conducted to determine whether an order for
including legal interest, found owing to any employee or househelper under this
the stoppage of work or suspension of operations shall be lifted or not. In case the
Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989).
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. Title III
WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or
Chapter I
otherwise render ineffective the orders of the Secretary of Labor and Employment
EMPLOYMENT OF WOMEN
or his duly authorized representatives issued pursuant to the authority granted
under this Article, and no inferior court or entity shall issue temporary or
ART. 130. Nightwork prohibition. - No woman, regardless of age, shall be employed
permanent injunction or restraining order or otherwise assume jurisdiction over any
or permitted or suffered to work, with or without compensation:
case involving the enforcement orders issued in accordance with this Article.

(a) In any industrial undertaking or branch thereof between ten o’clock at night and
(e) Any government employee found guilty of violation of, or abuse of authority,
six o’clock in the morning of the following day; or
under this Article shall, after appropriate administrative investigation, be subject to
summary dismissal from the service.
(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;
(f) The Secretary of Labor and Employment may, by appropriate regulations,
or
require employers to keep and maintain such employment records as may be
necessary in aid of his visitorial and enforcement powers under this Code.
(c) In any agricultural undertaking at nighttime unless she is given a period of rest
of not less than nine (9) consecutive hours.
ART. 129. Recovery of wages, simple money claims and other benefits. - Upon
complaint of any interested party, the Regional Director of the Department of Labor
and Employment or any of the duly authorized hearing officers of the Department is ART. 131. Exceptions. - The prohibitions prescribed by the preceding Article shall
empowered, through summary proceeding and after due notice, to hear and decide not apply in any of the following cases:
any matter involving the recovery of wages and other monetary claims and
benefits, including legal interest, owing to an employee or person employed in (a) In cases of actual or impending emergencies caused by serious accident, fire,
domestic or household service or househelper under this Code, arising from flood, typhoon, earthquake, epidemic or other disasters or calamity, to prevent loss
employer-employee relations: Provided, That such complaint does not include a of life or property, or in cases of force majeure or imminent danger to public safety;
claim for reinstatement: Provided further, That the aggregate money claims of each
employee or househelper does not exceed Five thousand pesos (P5,000.00). The
Regional Director or hearing officer shall decide or resolve the complaint within (b) In case of urgent work to be performed on machineries, equipment or
thirty (30) calendar days from the date of the filing of the same. Any sum thus installation, to avoid serious loss which the employer would otherwise suffer;
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 (c) Where the work is necessary to prevent serious loss of perishable goods;
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 (d) Where the woman employee holds a responsible position of managerial or
within a period of three (3) years, shall be held as a special fund of the Department technical nature, or where the woman employee has been engaged to provide
health and welfare services;
 19

(e) Where the nature of the work requires the manual skill and dexterity of women (b) In coordination with other agencies of the government engaged in the
workers and the same cannot be performed with equal efficiency by male workers; promotion of family planning, the Department of Labor and Employment shall
develop and prescribe incentive bonus schemes to encourage family planning
among female workers in any establishment or enterprise.
(f) Where the women employees are immediate members of the family operating
the establishment or undertaking; and
ART. 135. Discrimination prohibited. - It shall be unlawful for any employer to
discriminate against any woman employee with respect to terms and conditions of
(g) Under other analogous cases exempted by the Secretary of Labor and
employment solely on account of her sex.
Employment in appropriate regulations.

The following are acts of discrimination:

ART. 132. Facilities for women. - The Secretary of Labor and Employment shall
establish standards that will ensure the safety and health of women employees. In
appropriate cases, he shall, by regulations, require any employer to: (a) Payment of a lesser compensation, including wage, salary or other form of
remuneration and fringe benefits, to a female employees as against a male
employee, for work of equal value; and
(a) Provide seats proper for women and permit them to use such seats when they
are free from work and during working hours, provided they can perform their
duties in this position without detriment to efficiency; (b) Favoring a male employee over a female employee with respect to promotion,
training opportunities, study and scholarship grants solely on account of their
sexes.
(b) To establish separate toilet rooms and lavatories for men and women and
provide at least a dressing room for women;
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
(c) To establish a nursery in a workplace for the benefit of the women employees
hereof shall be penalized as provided in Articles 288 and 289 of this Code:
therein; and
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
(d) To determine appropriate minimum age and other standards for retirement or money claims, which may include claims for damages and other affirmative reliefs.
termination in special occupations such as those of flight attendants and the like. The actions hereby authorized shall proceed independently of each other. (As
amended by Republic Act No. 6725, May 12, 1989).
ART. 133. Maternity leave benefits. - (a) Every employer shall grant to any
pregnant woman employee who has rendered an aggregate service of at least six ART. 136. Stipulation against marriage. - It shall be unlawful for an employer to
(6) months for the last twelve (12) months, maternity leave of at least two (2) require as a condition of employment or continuation of employment that a woman
weeks prior to the expected date of delivery and another four (4) weeks after employee shall not get married, or to stipulate expressly or tacitly that upon getting
normal delivery or abortion with full pay based on her regular or average weekly married, a woman employee shall be deemed resigned or separated, or to actually
wages. The employer may require from any woman employee applying for dismiss, discharge, discriminate or otherwise prejudice a woman employee merely
maternity leave the production of a medical certificate stating that delivery will by reason of her marriage.
probably take place within two weeks.
ART. 137. Prohibited acts. - (a) It shall be unlawful for any employer:
(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,
(1) To deny any woman employee the benefits provided for in this Chapter or to
which renders the woman unfit for work, unless she has earned unused leave
discharge any woman employed by him for the purpose of preventing her from
credits from which such extended leave may be charged.
enjoying any of the benefits provided under this Code.

(c) The maternity leave provided in this Article shall be paid by the employer only
(2) To discharge such woman on account of her pregnancy, or while on leave or in
for the first four (4) deliveries by a woman employee after the effectivity of this
confinement due to her pregnancy;
Code.

(3) To discharge or refuse the admission of such woman upon returning to her work
ART. 134. Family planning services; incentives for family planning. - (a)
for fear that she may again be pregnant.
Establishments which are required by law to maintain a clinic or infirmary shall
provide free family planning services to their employees which shall include, but not
be limited to, the application or use of contraceptive pills and intrauterine devices. ART. 138. Classification of certain women workers . - Any woman who is permitted
or suffered to work, with or without compensation, in any night club, cocktail
lounge, massage clinic, bar or similar establishments under the effective control or
 20

supervision of the employer for a substantial period of time as determined by the (3) Five hundred fifty pesos (P550.00) a month for those in other municipalities.
Secretary of Labor and Employment, shall be considered as an employee of such
establishment for purposes of labor and social legislation.
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
Chapter II conditions thereof.
EMPLOYMENT OF MINORS
Provided, further, That those househelpers who are receiving at least One thousand
ART. 139. Minimum employable age. - (a) No child below fifteen (15) years of age
pesos (P1,000.00) shall be covered by the Social Security System (SSS) and be
shall be employed, except when he works directly under the sole responsibility of
entitled to all the benefits provided thereunder. (As amended by Republic Act No.
his parents or guardian, and his employment does not in any way interfere with his
7655, August 19, 1993).
schooling.

ART. 144. Minimum cash wage. - The minimum wage rates prescribed under this
(b) Any person between fifteen (15) and eighteen (18) years of age may be
Chapter shall be the basic cash wages which shall be paid to the househelpers in
employed for such number of hours and such periods of the day as determined by
addition to lodging, food and medical attendance.
the Secretary of Labor and Employment in appropriate regulations.

ART. 145. Assignment to non-household work. - No househelper shall be assigned

(c) The foregoing provisions shall in no case allow the employment of a person
to work in a commercial, industrial or agricultural enterprise at a wage or salary
below eighteen (18) years of age in an undertaking which is hazardous or
rate lower than that provided for agricultural or non-agricultural workers as
deleterious in nature as determined by the Secretary of Labor and Employment.
prescribed herein.

ART. 140. Prohibition against child discrimination. - No employer shall discriminate

ART. 146. Opportunity for education. - If the househelper is under the age of
against any person in respect to terms and conditions of employment on account of
eighteen (18) years, the employer shall give him or her an opportunity for at least
his age.
elementary education. The cost of education shall be part of the househelper’s
compensation, unless there is a stipulation to the contrary.
Chapter III
EMPLOYMENT OF HOUSEHELPERS
ART. 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
ART. 141. Coverage. - This Chapter shall apply to all persons rendering services in
househelper.
households for compensation.

ART. 148. Board, lodging, and medical attendance. - The employer shall furnish the
"Domestic or household service" shall mean service in the employer’s home which
househelper, free of charge, suitable and sanitary living quarters as well as
is usually necessary or desirable for the maintenance and enjoyment thereof and
adequate food and medical attendance.
includes ministering to the personal comfort and convenience of the members of
the employer’s household, including services of family drivers.
ART. 149. Indemnity for unjust termination of services. - If the period of household
service is fixed, neither the employer nor the househelper may terminate the
ART. 142. Contract of domestic service. - The original contract of domestic service
contract before the expiration of the term, except for a just cause. If the
shall not last for more than two (2) years but it may be renewed for such periods
househelper is unjustly dismissed, he or she shall be paid the compensation already
as may be agreed upon by the parties.
earned plus that for fifteen (15) days by way of indemnity.

ART. 143. Minimum wage. - (a) Househelpers shall be paid the following minimum
If the househelper leaves without justifiable reason, he or she shall forfeit any
wage rates:
unpaid salary due him or her not exceeding fifteen (15) days.

(1) Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon,
ART. 150. Service of termination notice. - If the duration of the household service is
Pasay, and Caloocan cities and municipalities of Makati, San Juan, Mandaluyong,
not determined either in stipulation or by the nature of the service, the employer or
Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig, Marikina, Valenzuela,
the househelper may give notice to put an end to the relationship five (5) days
Taguig and Pateros in Metro Manila and in highly urbanized cities;
before the intended termination of the service.

(2) Six hundred fifty pesos (P650.00) a month for those in other chartered cities
ART. 151. Employment certification. - Upon the severance of the household service
and first-class municipalities; and
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.
 21

ART. 152. Employment record. - The employer may keep such records as he may Book 4; Health, Safety and Social Welfare Benefits
deem necessary to reflect the actual terms and conditions of employment of his
househelper, which the latter shall authenticate by signature or thumbmark upon Title I
request of the employer. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY

Chapter IV Chapter I
MEDICAL AND DENTAL SERVICES
EMPLOYMENT OF HOMEWORKERS

ART. 153. Regulation of industrial homeworkers. - The employment of industrial ART. 156. First-aid treatment. - Every employer shall keep in his establishment
homeworkers and field personnel shall be regulated by the government through the such first-aid medicines and equipment as the nature and conditions of work may
appropriate regulations issued by the Secretary of Labor and Employment to ensure require, in accordance with such regulations as the Department of Labor and
the general welfare and protection of homeworkers and field personnel and the Employment shall prescribe.
industries employing them.
The employer shall take steps for the training of a sufficient number of employees
ART. 154. Regulations of Secretary of Labor. - The regulations or orders to be in first-aid treatment.
issued pursuant to this Chapter shall be designed to assure the minimum terms and
conditions of employment applicable to the industrial homeworkers or field ART. 157. Emergency medical and dental services. - It shall be the duty of every
personnel involved. employer to furnish his employees in any locality with free medical and dental
attendance and facilities consisting of:
ART. 155. Distribution of homework. - For purposes of this Chapter,
the "employer" of homeworkers includes any person, natural or artificial who, for (a) The services of a full-time registered nurse when the number of employees
his account or benefit, or on behalf of any person residing outside the country, exceeds fifty (50) but not more than two hundred (200) except when the employer
directly or indirectly, or through an employee, agent contractor, sub-contractor or does not maintain hazardous workplaces, in which case, the services of a graduate
any other person: first-aider shall be provided for the protection of workers, where no registered
nurse is available. The Secretary of Labor and Employment shall provide by
(1) Delivers, or causes to be delivered, any goods, articles or materials to be appropriate regulations, the services that shall be required where the number of
processed or fabricated in or about a home and thereafter to be returned or to be employees does not exceed fifty (50) and shall determine by appropriate order,
disposed of or distributed in accordance with his directions; or hazardous workplaces for purposes of this Article;

(2) Sells any goods, articles or materials to be processed or fabricated in or about a (b) The services of a full-time registered nurse, a part-time physician and dentist,
home and then rebuys them after such processing or fabrication, either by himself and an emergency clinic, when the number of employees exceeds two hundred
or through some other person. (200) but not more than three hundred (300); and

(c) The services of a full-time physician, dentist and a full-time registered nurse as
well as a dental clinic and an infirmary or emergency hospital with one bed capacity
for every one hundred (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 a 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 retainer 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).

ART. 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
 22

or dental clinic which is accessible from the employer’s establishment and he makes (b) The Secretary of Labor and Employment may, through appropriate regulations,
arrangement for the reservation therein of the necessary beds and dental facilities collect reasonable fees for the inspection of steam boilers, pressure vessels and
for the use of his employees. 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
ART. 159. Health program. - The physician engaged by an employer shall, in
treasury to the credit of the occupational safety and health fund and shall be
addition to his duties under this Chapter, develop and implement a comprehensive
expended exclusively for the administration and enforcement of safety and other
occupational health program for the benefit of the employees of his employer.
labor laws administered by the Department of Labor and Employment.

ART. 160. Qualifications of health personnel. - The physicians, dentists and nurses
employed by employers pursuant to this Chapter shall have the necessary training
Title II
in industrial medicine and occupational safety and health. The Secretary of Labor
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND
and Employment, in consultation with industrial, medical, and occupational safety
and health associations, shall establish the qualifications, criteria and conditions of
Chapter I
employment of such health personnel.
POLICY AND DEFINITIONS

ART. 161. Assistance of employer. - It shall be the duty of any employer to provide ART. 166. Policy. - The State shall promote and develop a tax-exempt employees’
all the necessary assistance to ensure the adequate and immediate medical and compensation program whereby employees and their dependents, in the event of
dental attendance and treatment to an injured or sick employee in case of work-connected disability or death, may promptly secure adequate income benefit
emergency. and medical related benefits.

Chapter II ART. 167. Definition of terms. - As used in this Title, unless the context indicates
OCCUPATIONAL HEALTH AND SAFETY otherwise:

(a) "Code" means the Labor Code of the Philippines instituted under Presidential
ART. 162. Safety and health standards. - The Secretary of Labor and Employment
Decree Numbered four hundred forty-two, as amended.
shall, by appropriate orders, set and enforce mandatory occupational safety and
health standards to eliminate or reduce occupational safety and health hazards in
all workplaces and institute new, and update existing, programs to ensure safe and (b) "Commission" means the Employees’ Compensation Commission created under
healthful working conditions in all places of employment. this Title.

ART. 163. Research. - It shall be the responsibility of the Department of Labor and (c) "SSS" means the Social Security System created under Republic Act Numbered
Employment to conduct continuing studies and research to develop innovative Eleven hundred sixty-one, as amended.
methods, techniques and approaches for dealing with occupational safety and
health problems; to discover latent diseases by establishing causal connections
(d) "GSIS" means the Government Service Insurance System created under
between diseases and work in environmental conditions; and to develop medical
Commonwealth Act Numbered One hundred eighty-six, as amended.
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. (e) "System" means the SSS or GSIS, as the case may be.

ART. 164. Training programs. - The Department of Labor and Employment shall (f) "Employer" means any person, natural or juridical, employing the services of the
develop and implement training programs to increase the number and competence employee.
of personnel in the field of occupational safety and industrial health.
(g) "Employee" means any person compulsorily covered by the GSIS under
ART. 165. Administration of safety and health laws. - (a) The Department of Labor Commonwealth Act Numbered One hundred eighty-six, as amended, including the
and Employment shall be solely responsible for the administration and enforcement members of the Armed Forces of the Philippines, and any person employed as
of occupational safety and health laws, regulations and standards in all casual, emergency, temporary, substitute or contractual, or any person
establishments and workplaces wherever they may be located; however, chartered compulsorily covered by the SSS under Republic Act Numbered Eleven hundred
cities may be allowed to conduct industrial safety inspections of establishments sixty-one, as amended.
within their respective jurisdictions where they have adequate facilities and
competent personnel for the purpose as determined by the Department of Labor (h) "Person" means any individual, partnership, firm, association, trust, corporation
and Employment and subject to national standards established by the latter. or legal representative thereof.
 23

(i) "Dependent" means the legitimate, legitimated or legally adopted or (u) "Hospital" means any medical facility, government or private, authorized by
acknowledged natural child who is unmarried, not gainfully employed, and not over law, an active member in good standing of the Philippine Hospital Association and
twenty-one (21) years of age or over twenty-one (21) years of age provided he is accredited by the Commission.
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
(v) "Physician" means any doctor of medicine duly licensed to practice in the
employee and the parents of said employee wholly dependent upon him for regular
Philippines, an active member in good standing of the Philippine Medical Association
support.
and accredited by the Commission.

(j) "Beneficiaries" means the dependent spouse until he/she remarries and
(w) "Wages" or "Salary", insofar as they refer to the computation of benefits
dependent children, who are the primary beneficiaries. In their absence, the
defined in Republic Act No. 1161, as amended, for SSS and Presidential Decree No.
dependent parents and subject to the restrictions imposed on dependent children,
1146, as amended, for GSIS, respectively, except that part in excess of Three
the illegitimate children and legitimate descendants, who are the secondary
Thousand Pesos.
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. (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.
(k) "Injury" means any harmful change in the human organism from any accident
arising out of and in the course of the employment.
(y) "Average monthly salary credit" in the case of the SSS means the result
obtained by dividing the sum of the monthly salary credits in the sixty-month
(l) "Sickness" means any illness definitely accepted as an occupational disease
period immediately following the semester of death or permanent disability by sixty
listed by the Commission, or any illness caused by employment subject to proof
(60), except where the month of death or permanent disability falls within eighteen
that the risk of contracting the same is increased by working conditions. For this
(18) calendar months from the month of coverage, in which case, it is the result
purpose, the Commission is empowered to determine and approve occupational
obtained by dividing the sum of all monthly salary credits paid prior to the month of
diseases and work-related illnesses that may be considered compensable based on
contingency by the total number of calendar months of coverage in the same
peculiar hazards of employment.
period.

(m) "Death" means loss of life resulting from injury or sickness.

(z) "Average daily salary credit" in the case of the SSS means the result obtained
by dividing the sum of the six (6) highest monthly salary credits in the twelve-
(n) "Disability" means loss or impairment of a physical or mental function resulting month period immediately preceding the semester of sickness or injury by one
from injury or sickness. hundred eighty (180), except where the month of injury falls within twelve (12)
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
(o) "Compensation" means all payments made under this Title for income benefits
number of calendar months of coverage in the period.
and medical or related benefits.

In the case of the GSIS, the average daily salary credit shall be the actual daily
(p) "Income benefit" means all payments made under this Title to the providers of
salary or wage, or the monthly salary or wage divided by the actual number of
medical care, rehabilitation services and hospital care.
working days of the month of contingency.

(q) "Medical benefit" means all payments made under this Title to the providers of
(aa) "Quarter" means a period of three (3) consecutive months ending on the last
medical care, rehabilitation services and hospital care.
days of March, June, September and December.

(r) "Related benefit" means all payments made under this Title for appliances and
(bb) "Semester" means a period of two consecutive quarters ending in the quarter
supplies.
of death, permanent disability, injury or sickness.

(s) "Appliances" means crutches, artificial aids and other similar devices.
(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
(t) "Supplies" means medicine and other medical, dental or surgical items. 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
 24

number of calendar years in which six or more contributions have been paid from rights of the disabled employee or the dependents, in case of his death, in
January, 1975 up to the calendar year containing the semester prior to the accordance with the general law.
contingency. For a member covered on or after January, 1975, the number of
calendar years in which six or more contributions have been paid from the year of
(b) Where the System recovers from such third party damages in excess of those
coverage up to the calendar year containing the semester prior to the contingency.
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
(ee) "Monthly income benefit" means the amount equivalent to one hundred fifteen and expenses of the System.
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
ART. 175. Deprivation of the benefits. - Except as otherwise provided under this
for each credited year of service in excess of ten years: Provided, That the monthly
Title, no contract, regulation or device whatsoever shall operate to deprive the
income benefit shall in no case be less than two hundred fifty pesos.
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
Chapter II by the employer shall be maintained and continued to be enjoyed by their
COVERAGE AND LIABILITY employees.

ART. 168. Compulsory coverage. - Coverage in the State Insurance Fund shall be Chapter III
compulsory upon all employers and their employees not over sixty (60) years of ADMINISTRATION
age: Provided, That an employee who is over (60) years of age and paying
contributions to qualify for the retirement or life insurance benefit administered by ART. 176. Employees’ Compensation Commission. - (a) To initiate, rationalize, and
the System shall be subject to compulsory coverage. coordinate the policies of the employees’ compensation program, the Employees’
Compensation Commission is hereby created to be composed of five ex-
officio members, namely: the Secretary of Labor and Employment as Chairman, the
ART. 169. Foreign employment. - The Commission shall ensure adequate coverage
GSIS General Manager, the SSS Administrator, the Chairman of the Philippine
of Filipino employees employed abroad, subject to regulations as it may prescribe.
Medical Care Commission, and the Executive Director of the ECC Secretariat, and
two appointive members, one of whom shall represent the employees and the
ART. 170. Effective date of coverage. - Compulsory coverage of the employer other, the employers, to be appointed by the President of the Philippines for a term
during the effectivity of this Title shall take effect on the first day of his operation, of six years. The appointive member shall have at least five years experience in
and that of the employee, on the date of his employment. workmen’s compensation or social security programs. All vacancies shall be filled
for the unexpired term only. (As amended by Section 19 [c], Executive Order No.
ART. 171. Registration. - Each employer and his employees shall register with the 126).
System in accordance with its regulations.
(b) The Vice Chairman of the Commission shall be alternated each year between
ART. 172. Limitation of liability. - The State Insurance Fund shall be liable for the GSIS General Manager and the SSS Administrator. The presence of four
compensation to the employee or his dependents, except when the disability or members shall constitute a quorum. Each member shall receive a per diem of two
death was occasioned by the employee’s intoxication, willful intention to injure or hundred pesos for every meeting that is actually attended by him, exclusive of
kill himself or another, notorious negligence, or otherwise provided under this Title. 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 Section 2, Presidential
ART. 173. Extent of liability. - Unless otherwise provided, the liability of the State Decree No. 1368).
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 (c) The general conduct of the operations and management functions of the GSIS
compensation under this Title shall not bar the recovery of benefits as provided for or SSS under this Title shall be vested in its respective chief executive officers, who
in Section 699 of the Revised Administrative Code, Republic Act Numbered Eleven shall be immediately responsible for carrying out the policies of the Commission.
hundred sixty-one, as amended, Republic Act Numbered Forty-eight hundred sixty-
four as amended, and other laws whose benefits are administered by the System or (d) The Commission shall have the status and category of a government
by other agencies of the government. (As amended by Presidential Decree No. corporation, and it is hereby deemed attached to the Department of Labor and
1921). Employment for policy coordination and guidance. (As amended by Section 2,
Presidential Decree No. 1368).
ART. 174. Liability of third party/ies. - (a) When the disability or death is caused by
circumstances creating a legal liability against a third party, the disabled employee ART. 177. Powers and duties. - The Commission shall have the following powers
or the dependents, in case of his death, shall be paid by the System under this and duties:
Title. In case benefit is paid under this Title, the System shall be subrogated to the
 25

(a) To assess and fix a rate of contribution from all employers; ART. 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
(b) To determine the rate of contribution payable by an employer whose records
Republic Act Numbered eleven hundred sixty-one, as amended, with regard to such
show a high frequency of work accidents or occupational diseases due to failure by
other funds as are thereunder being paid to or collected by the SSS and GSIS,
the said employer to observe adequate safety measures;
respectively: Provided, That the Commission, SSS and GSIS may disburse each
year not more than twelve percent of the contribution and investment earnings
(c) To approve rules and regulations governing the processing of claims and the collected for operational expenses, including occupational health and safety
settlement of disputes arising therefrom as prescribed by the System; programs, incidental to the carrying out of this Title.

(d) To initiate policies and programs toward adequate occupational health and ART. 179. Investment of funds. - Provisions of existing laws to the contrary
safety and accident prevention in the working environment, rehabilitation other notwithstanding, all revenues as are not needed to meet current operational
than those provided for under Article 190 hereof, and other related programs and expenses under this Title shall be accumulated in a fund to be known as the State
activities, and to appropriate funds therefor; (As amended by Section 3, Insurance Fund, which shall be used exclusively for payment of the benefits under
Presidential Decree No. 1368). 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
(e) To make the necessary actuarial studies and calculations concerning the grant GSIS, respectively, shall be deposited with any authorized depository bank
of constant help and income benefits for permanent disability or death and the approved by the Commission, or invested with due and prudent regard for the
rationalization of the benefits for permanent disability and death under the Title liquidity needs of the System. (As amended by Section 4, Presidential Decree No.
with benefits payable by the System for similar contingencies: Provided, That the 1368).
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 ART. 180. Settlement of claims. - The System shall have original and exclusive
Fund shall be guaranteed: Provided, finally, That such increases in benefits shall jurisdiction to settle any dispute arising from this Title with respect to coverage,
not require any increases in contribution, except as provided for in paragraph (b) entitlement to benefits, collection and payment of contributions and penalties
hereof; (As amended by Section 3, Presidential Decree No. 1641). thereon, or any other matter related thereto, subject to appeal to the Commission,
which shall decide appealed cases within twenty (20) working days from the
(f) To appoint the personnel of its staff, subject to civil service law and rules, but submission of the evidence.
exempt from WAPCO law and regulations;
ART. 181. Review. - Decisions, orders or resolutions of the Commission may be
(g) To adopt annually a budget of expenditures of the Commission and its staff reviewed on certiorari by the Supreme Court on question of law upon petition of an
chargeable against the State Insurance Fund: Provided, That the SSS and GSIS aggrieved party within ten (10) days from notice thereof.
shall advance on a quarterly basis, the remittances of allotment of the loading fund
for the Commission’s operational expenses based on its annual budget as duly ART. 182. Enforcement of decisions. - (a) Any decision, order or resolution of the
approved by the Department of Budget and Management; (As amended by Section Commission shall become final and executory if no appeal is taken therefrom within
3, Presidential Decree No. 1921). ten (10) days from notice thereof. All awards granted by the Commission in cases
appealed from decisions of the System shall be effected within fifteen days from
(h) To have the power to administer oath and affirmation, and to issue subpoena receipt of notice.
and subpoena duces tecum in connection with any question or issue arising from
appealed cases under this Title; (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
(i) To sue and be sued in court; manner as decisions of the Court of First Instance, 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
(j) To acquire property, real or personal, which may be necessary or expedient for decisions, orders or resolutions, and any person who shall fail or refuse to comply
the attainment of the purposes of this Title; therewith shall, upon application by the Commission, be punished by the proper
court for contempt.
(k) To enter into agreements or contracts for such services and as may be needed
for the proper, efficient and stable administration of the program; Chapter IV
CONTRIBUTIONS
(l) To perform such other acts as it may deem appropriate for the attainment of the ART. 183. Employers’ contributions. - (a) Under such regulations as the System
purposes of the Commission and proper enforcement of the provisions of this may prescribe, beginning as of the last day of the month when an employee’s
Title. (As amended by Section 18, Presidential Decree No. 850).
 26

compulsory coverage takes effect and every month thereafter during his ART. 189. Fees and other charges. - All fees and other charges for hospital
employment, his employer shall prepare to remit to the System a contribution services, medical care and appliances, including professional fees, shall not be
equivalent to one percent of his monthly salary credit. 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
(b) The rate of contribution shall be reviewed periodically and subject to the
Republic Act Numbered sixty-one hundred eleven, as amended, otherwise known as
limitations herein provided, may be revised as the experience in risk, cost of
the Philippine Medical Care Act of 1969.
administration and actual or anticipated as well as unexpected losses, may require.

ART. 190. Rehabilitation services. - (a) The System shall, as soon as practicable,
(c) Contributions under this Title shall be paid in their entirety by the employer and
establish a continuing program, for the rehabilitation of injured and handicapped
any contract or device for the deductions of any portion thereof from the wages or
employees who shall be entitled to rehabilitation services, which shall consist of
salaries of the employees shall be null and void.
medical, surgical or hospital treatment, including appliances if they have been
handicapped by the injury, to help them become physically independent.
(d) When a covered employee dies, becomes disabled or is separated from
employment, his employer’s obligation to pay the monthly contribution arising from
(b) As soon as practicable, the System shall establish centers equipped and staffed
that employment shall cease at the end of the month of contingency and during
to provide a balanced program of remedial treatment, vocational assessment and
such months that he is not receiving wages or salary.
preparation designed to meet the individual needs of each handicapped employee
to restore him to suitable employment, including assistance as may be within its
ART. 184. Government guarantee. - The Republic of the Philippines guarantees the resources, to help each rehabilitee to develop his mental, vocational or social
benefits prescribed under this Title, and accepts general responsibility for the potential.
solvency of the State Insurance Fund. In case of any deficiency, the same shall be
covered by supplemental appropriations from the national government. Chapter VI
DISABILITY BENEFITS
Chapter V
MEDICAL BENEFITS ART. 191. Temporary total disability. - (a) Under such regulations as the
Commission may approve, any employee under this Title who sustains an injury or
ART. 185. Medical services. - Immediately after an employee contracts sickness or contracts sickness resulting in temporary total disability shall, for each day of such
sustains an injury, he shall be provided by the System during the subsequent a disability or fraction thereof, be paid by the System an income benefit equivalent
period of his disability with such medical services and appliances as the nature of to ninety percent of his average daily salary credit, subject to the following
his sickness or injury and progress of his recovery may require, subject to the conditions: the daily income benefit shall not be less than Ten Pesos nor more than
expense limitation prescribed by the Commission. 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 be
notified of the injury or sickness. (As amended by Section 2, Executive Order No.
ART. 186. Liability. - The System shall have the authority to choose or order a 179).
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, (b) The payment of such income benefit shall be in accordance with the regulations
appliances, supplies, hospitals, rehabilitation facilities or physicians. of the Commission. (As amended by Section 19, Presidential Decree No. 850).

ART. 187. Attending physician. - Any physician attending an injured or sick ART. 192. Permanent total disability. - (a) Under such regulations as the
employee shall comply with all the regulations of the System and submit reports in Commission may approve, any employee under this Title who contracts sickness or
prescribed forms at such time as may be required concerning his condition or sustains an injury resulting in his permanent total disability shall, for each month
treatment. All medical information relevant to the particular injury or sickness shall, until his death, be paid by the System during such a disability, an amount
on demand, be made available to the employee or the System. No information equivalent to the monthly income benefit, plus ten percent thereof for each
developed in connection with treatment or examination for which compensation is dependent child, but not exceeding five, beginning with the youngest and without
sought shall be considered as privileged communication. 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.
ART. 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 (b) The monthly income benefit shall be guaranteed for five years, and shall be
constitutes an unreasonable refusal shall be determined by the System which may, suspended if the employee is gainfully employed, or recovers from his permanent
on its own initiative, determine the necessity, character and sufficiency of any total disability, or fails to present himself for examination at least once a year upon
medical services furnished or to be furnished. notice by the System, except as otherwise provided for in other laws, decrees,
 27

orders or Letters of Instructions. (As amended by Section 5, Presidential Decree No. (d) In case of permanent partial disability less than the total loss of the member
1641). 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
(c) The following disabilities shall be deemed total and permanent:
result is a decimal fraction, the same shall be rounded off to the next higher
integer.
(1) Temporary total disability lasting continuously for more than one hundred
twenty days, except as otherwise provided for in the Rules;
(e) In cases of simultaneous loss of more than one member or a part thereof as
(2) Complete loss of sight of both eyes;
specified in this Article, the same monthly income benefit shall be paid for a period
(3) Loss of two limbs at or above the ankle or wrist;
equivalent to the sum of the periods established for the loss of the member or the
(4) Permanent complete paralysis of two limbs;
part thereof. If the result is a decimal fraction, the same shall be rounded off to the
(5) Brain injury resulting in incurable imbecility or insanity; and
next higher integer.
(6) Such cases as determined by the Medical Director of the System and approved
by the Commission.
(d) The number of months of paid coverage shall be defined and approximated by a (f) In cases of injuries or illnesses resulting in a permanent partial disability not
formula to be approved by the Commission. listed in the preceding schedule, the benefit shall be an income benefit equivalent
to the percentage of the permanent loss of the capacity to work. (As added by
Section 7, Presidential Decree No. 1368).
ART. 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 (g) Under such regulations as the Commission may approve, the income benefit
exceeding the period designated herein, be paid by the System during such a payable in case of permanent partial disability may be paid in monthly pension or in
disability an income benefit for permanent total disability. lump sum if the period covered does not exceed one year. (As added by Section 7,
Presidential Decree No. 1368).
(b) The benefit shall be paid for not more than the period designated in the
following schedules: Chapter VII
DEATH BENEFITS
Complete and permanent No. of Months
loss of the use of
One thumb - 10 ART. 194. Death. - (a) Under such regulations as the Commission may approve, the
One index finger - 8 System shall pay to the primary beneficiaries upon the death of the covered
One middle finger - 6 employee under this Title, an amount equivalent to his monthly income benefit,
One ring finger - 5 plus ten percent thereof for each dependent child, but not exceeding five, beginning
One little finger - 3 with the youngest and without substitution, except as provided for in paragraph (j)
One big toe - 6 of Article 167 hereof: Provided, however, That the monthly income benefit shall be
One toe - 3 guaranteed for five years: Provided, further, That if he has no primary beneficiary,
One arm - 50 the System shall pay to his secondary beneficiaries the monthly income benefit but
One hand - 39 not to exceed sixty months: Provided, finally, That the minimum death benefit shall
One foot - 31 not be less than fifteen thousand pesos. (As amended by Section 4, Presidential
One leg - 46 Decree No. 1921).
One ear - 10
Both ears - 20
(b) Under such regulations as the Commission may approve, the System shall pay
Hearing of one ear - 10
to the primary beneficiaries upon the death of a covered employee who is under
Hearing of both ears - 50
permanent total disability under this Title, eighty percent of the monthly income
Sight of one eye - 25
benefit and his dependents to the dependents’ 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
(c) A loss of a wrist shall be considered as a loss of the hand, and a loss of an secondary beneficiaries the monthly pension excluding the dependents’ pension, of
elbow shall be considered as a loss of the arm. A loss of an ankle shall be the remaining balance of the five-year guaranteed period: Provided, finally, That
considered as loss of a foot, and a loss of a knee shall be considered as a loss of the minimum death benefit shall not be less than fifteen thousand pesos. (As
the leg. A loss of more than one joint shall be considered as a loss of one-half of amended by Section 4, Presidential Decree No. 1921).
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, Presidential
Decree No. 1368).
 28

(c) The monthly income benefit provided herein shall be the new amount of the lump sum equivalent of the income benefit payable by the System to the employee.
monthly income benefit for the surviving beneficiaries upon the approval of this All employers, specially those who should have been paying a rate of contribution
decree. (As amended by Section 8, Presidential Decree No. 1368). higher than required of them under this Title, are enjoined to undertake and
strengthen measures for the occupational health and safety of their employees.
ART. 201. Prescriptive period. - No claim for compensation shall be given due
(d) Funeral benefit. - A funeral benefit of Three thousand pesos (P3,000.00) shall
course unless said claim is filed with the System within three (3) years from the
be paid upon the death of a covered employee or permanently totally disabled
time the cause of action accrued. (As amended by Section 5, Presidential Decree
pensioner. (As amended by Section 3, Executive Order No. 179).
No. 1921).
ART. 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
Chapter VIII another dependent is entitled to share, such payments shall discharge the System
PROVISIONS COMMON TO INCOME BENEFITS from liability, unless and until such other dependent notifies the System of his claim
prior to the payments.

ART. 195. Relationship and dependency. - All questions of relationship and

(b) In case of doubt as to the respective rights of rival claimants, the System is
dependency shall be determined as of the time of death.
hereby empowered to determine as to whom payments should be made in
accordance with such regulations as the Commission may approve. If the money is
ART. 196. Delinquent contributions. - (a) An employer who is delinquent in his payable to a minor or incompetent, payment shall be made by the System to such
contributions shall be liable to the System for the benefits which may have been person or persons as it may consider to be best qualified to take care and dispose
paid by the System to his employees or their dependents, and any benefit and of the minor’s or incompetent’s property for his benefit.
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
ART. 203. Prohibition. - No agent, attorney or other person pursuing or in charge of
taxes. The payment by the employer of the lump sum equivalent of such liability
the preparation or filing of any claim for benefit under this Title shall demand or
shall absolve him from the payment of the delinquent contribution and penalty
charge for his services any fee, and any stipulation to the contrary shall be null and
thereon with respect to the employee concerned.
void. The retention or deduction of any amount from any benefit granted under this
Title for the payment of fees for such services is prohibited. Violation of any
(b) Failure or refusal of the employer to pay or remit the contribution herein provision of this Article shall be punished by a fine of not less than five hundred
prescribed shall not prejudice the right of the employee or his dependents to the pesos nor more than five thousand pesos, or imprisonment for not less than six
benefits under this Title. If the sickness, injury, disability or death occurs before the months nor more than one year, or both, at the discretion of the court.
System receives any report of the name of his employee, the employer shall be ART. 204. Exemption from levy, tax, etc. - All laws to the contrary notwithstanding,
liable to the System for the lump sum equivalent to the benefits to which such the State Insurance Fund and all its assets shall be exempt from any tax, fee,
employee or his dependents may be entitled. 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
ART. 197. Second injuries. - If any employee under permanent partial disability by expressly stating its name.
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 Chapter IX
disability, the System shall be liable only for the difference in income benefits. RECORDS, REPORTS AND PENAL PROVISIONS

ART. 198. Assignment of benefits. - No claim for compensation under this Title is ART. 205. Record of death or disability. - (a) All employers shall keep a logbook to
transferable or liable to tax, attachment, garnishment, levy or seizure by or under record chronologically the sickness, injury or death of their employees, setting forth
any legal process whatsoever, either before or after receipt by the person or therein their names, dates and places of the contingency, nature of the contingency
persons entitled thereto, except to pay any debt of the employee to the System. 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 entry in the
ART. 199. Earned benefits. - Income benefits shall, with respect to any period of logbook, the employer shall report to the System only those contingencies he
disability, be payable in accordance with this Title to an employee who is entitled to deems to be work-connected.
receive wages, salaries or allowances for holidays, vacation or sick leaves and any
other award of benefit under a collective bargaining or other agreement. (b) All entries in the employer’s logbook shall be made by the employer or any of
ART. 200. Safety devices. - In case the employee’s injury or death was due to the his authorized official after verification of the contingencies or the employees’
failure of the employer to comply with any law or to install and maintain safety absences for a period of a day or more. Upon request by the System, the employer
devices or to take other precautions for the prevention of injury, said employer shall furnish the necessary certificate regarding information about any contingency
shall pay the State Insurance Fund a penalty of twenty-five percent (25%) of the appearing in the logbook, citing the entry number, page number and date. Such
 29

logbook shall be made available for inspection to the duly authorized representative That the formulas for computation of benefits, as well as the contribution base,
of the System. shall be those provided under Commonwealth Act Numbered One Hundred Eighty-
Six, as amended by Presidential Decree No. 1146, plus twenty percent thereof. (As
added by Section 9, Presidential Decree No. 1368 [May 1, 1978] and subsequently
(c) Should any employer fail to record in the logbook an actual sickness, injury or
amended by Section 7, Presidential Decree No. 1641).
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 fifty percent 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 Title III
to the State Insurance Fund. MEDICARE

ART. 209. Medical care. - The Philippine Medical Care Plan shall be implemented as
(d) In case of payment of benefits for any claim which is later determined to be
provided under Republic Act Numbered Sixty-One Hundred Eleven, as amended.
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.
Title IV
ADULT EDUCATION
ART. 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 ART. 210. Adult education. - Every employer shall render assistance in the
on his behalf within five days from the occurrence of the contingency. No notice to establishment and operation of adult education programs for their workers and
the employer shall be required if the contingency is known to the employer or his employees as prescribed by regulations jointly approved by the Department of
agents or representatives. Labor and Employment and the Department of Education, Culture and Sports.

ART. 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 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 re-
employment in the government service.

ART. 208. Applicability. - This Title shall apply only to injury, sickness, disability or
death occurring on or after January 1, 1975.

ART. 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,
 30

Book 5; Labor Relations (c) "Board" means the National Conciliation and Mediation Board established under
Executive Order No. 126.
Title I
POLICY AND DEFINITIONS (d) "Council" means the Tripartite Voluntary Arbitration Advisory Council
established under Executive Order No. 126, as amended.
Chapter I
POLICY
(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
ART. 211. Declaration of Policy. - A. It is the policy of the State:
agents except when acting as employer.
(a) To promote and emphasize the primacy of free collective bargaining and
negotiations, including voluntary arbitration, mediation and conciliation, as modes (f) "Employee" includes any person in the employ of an employer. The term shall
of settling labor or industrial disputes; not be limited to the employees of a particular employer, unless the 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
(b) To promote free trade unionism as an instrument for the enhancement of
practice if he has not obtained any other substantially equivalent and regular
democracy and the promotion of social justice and development;
employment.

(c) To foster the free and voluntary organization of a strong and united labor
(g) "Labor organization" means any union or association of employees which exists
movement;
in whole or in part for the purpose of collective bargaining or of dealing with
employers concerning terms and conditions of employment.
(d) To promote the enlightenment of workers concerning their rights and
obligations as union members and as employees;
(h) "Legitimate labor organization" means any labor organization duly registered
with the Department of Labor and Employment, and includes any branch or local
(e) To provide an adequate administrative machinery for the expeditious settlement thereof.
of labor or industrial disputes;
(i) "Company union" means any labor organization whose formation, function or
(f) To ensure a stable but dynamic and just industrial peace; and administration has been assisted by any act defined as unfair labor practice by this
Code.
(g) To ensure the participation of workers in decision and policy-making processes
affecting their rights, duties and welfare. (j) "Bargaining representative" means a legitimate labor organization whether or
not employed by the employer.
B. To encourage a truly democratic method of regulating the relations between the
employers and employees by means of agreements freely entered into through (k) "Unfair labor practice" means any unfair labor practice as expressly defined by
collective bargaining, no court or administrative agency or official shall have the the Code.
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. (As amended by
(l) "Labor dispute" includes any controversy or matter concerning terms and
Section 3, Republic Act No. 6715, March 21, 1989).
conditions of employment or the association or representation of persons in
negotiating, fixing, maintaining, changing or arranging the terms and conditions of
Chapter II
employment, regardless of whether the disputants stand in the proximate relation
DEFINITIONS
of employer and employee.
ART. 212. Definitions. - (a) "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may be, as provided under this (m) "Managerial employee" is one who is vested with the powers or prerogatives to
Code. 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
(b) "Bureau" means the Bureau of Labor Relations and/or the Labor Relations
actions if the exercise of such authority is not merely routinary or clerical in nature
Divisions in the regional offices established under Presidential Decree No. 1, in the
but requires the use of independent judgment. All employees not falling within any
Department of Labor.
of the above definitions are considered rank-and-file employees for purposes of this
Book.
 31

(n) "Voluntary Arbitrator" means any person accredited by the Board as such or any The Commission may sit en banc or in five (5) divisions, each composed of three
person named or designated in the Collective Bargaining Agreement by the parties (3) members. Subject to the penultimate sentence of this paragraph, the
to act as their Voluntary Arbitrator, or one chosen with or without the assistance of Commission shall sit en banc only for purposes of promulgating rules and
the National Conciliation and Mediation Board, pursuant to a selection procedure regulations governing the hearing and disposition of cases before any of its
agreed upon in the Collective Bargaining Agreement, or any official that may be divisions and regional branches, and formulating policies affecting its administration
authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator and operations. The Commission shall exercise its adjudicatory and all other
upon the written request and agreement of the parties to a labor dispute. powers, functions, and duties through its divisions. Of the five (5) divisions, the
first, second and third divisions shall handle cases coming from the National Capital
Region and the parts of Luzon; and the fourth and fifth divisions, cases from the
(o) "Strike" means any temporary stoppage of work by the concerted action of
Visayas and Mindanao, respectively; Provided that the Commission sitting en
employees as a result of an industrial or labor dispute.
banc may, on temporary or emergency basis, allow cases within the jurisdiction of
any division to be heard and decided by any other division whose docket allows the
(p) "Lockout" means any temporary refusal of an employer to furnish work as a additional workload and such transfer will not expose litigants to unnecessary
result of an industrial or labor dispute. additional expense. The divisions of the Commission shall have exclusive appellate
jurisdiction over cases within their respective territorial jurisdictions. [As amended
(q) "Internal union dispute" includes all disputes or grievances arising from any by Republic Act No. 7700].
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 The concurrence of two (2) Commissioners of a division shall be necessary for the
provided for in this Code. pronouncement of judgment or resolution. Whenever the required membership in a
division is not complete and the concurrence of two (2) commissioners to arrive at
(r) "Strike-breaker" means any person who obstructs, impedes, or interferes with a judgment or resolution cannot be obtained, the Chairman shall designate such
by force, violence, coercion, threats, or intimidation any peaceful picketing affecting number of additional Commissioners from the other divisions as may be necessary.
wages, hours or conditions of work or in the exercise of the right of self-
organization or collective bargaining. 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
(s) "Strike area" means the establishment, warehouses, depots, plants or offices, the opinion. It shall be mandatory for the division to meet for purposes of the
including the sites or premises used as runaway shops, of the employer struck consultation ordained herein. A certification to this effect signed by the Presiding
against, as well as the immediate vicinity actually used by picketing strikers in Commissioner of the division shall be issued and a copy thereof attached to the
moving to and fro before all points of entrance to and exit from said record of the case and served upon the parties.
establishment. (As amended by Section 4, Republic Act No. 6715, March 21, 1989).
The Chairman shall be the Presiding Commissioner of the first division and the four
Title II (4) other members from the public sector shall be the Presiding Commissioners of
NATIONAL LABOR RELATIONS COMMISSION 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
Chapter I division shall be the Acting Chairman.
CREATION AND COMPOSITION
The Chairman, aided by the Executive Clerk of the Commission, shall have
ART. 213. National Labor Relations Commission. - There shall be a National Labor administrative supervision over the Commission and its regional branches and all its
Relations Commission which shall be attached to the Department of Labor and personnel, including the Executive Labor Arbiters and Labor Arbiters.
Employment for program and policy coordination only, composed of a Chairman
and fourteen (14) Members.
The Commission, when sitting en banc shall be assisted by the same Executive
Clerk and, when acting thru its Divisions, by said Executive Clerks for the second,
Five (5) members each shall be chosen from among the nominees of the workers third, fourth and fifth Divisions, respectively, in the performance of such similar or
and employers organizations, respectively. The Chairman and the four (4) equivalent functions and duties as are discharged by the Clerk of Court and Deputy
remaining members shall come from the public sector, with the latter to be chosen Clerks of Court of the Court of Appeals. (As amended by Section 5, Republic Act No.
from among the recommendees of the Secretary of Labor and Employment. 6715, March 21, 1989).

Upon assumption into office, the members nominated by the workers and ART. 214. Headquarters, Branches and Provincial Extension Units. - The
employers organizations shall divest themselves of any affiliation with or interest in Commission and its First, Second and Third divisions shall have their main offices in
the federation or association to which they belong. 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,
 32

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 Chapter II
Commission. Each regional branch shall be headed by an Executive Labor POWERS AND DUTIES
Arbiter. (As amended by Section 6, Republic Act No. 6715, March 21, 1989).
ART. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as
otherwise provided under this Code, the Labor Arbiters shall have original and
ART. 215. Appointment and Qualifications. - The Chairman and other
exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the
Commissioners shall be members of the Philippine Bar and must have engaged in
submission of the case by the parties for decision without extension, even in the
the practice of law in the Philippines for at least fifteen (15) years, with at least five
absence of stenographic notes, the following cases involving all workers, whether
(5) years experience or exposure in the field of labor-management relations, and
agricultural or non-agricultural:
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
1. Unfair labor practice cases;
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 2. Termination disputes;
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
3. If accompanied with a claim for reinstatement, those cases that workers may file
purposes of reappointment as such under this Act. The Chairman and the other
involving wages, rates of pay, hours of work and other terms and conditions of
Commissioners, the Executive Labor Arbiters and Labor Arbiters shall hold office
employment;
during good behavior until they reach the age of sixty-five years, unless sooner
removed for cause as provided by law or become incapacitated to discharge the
duties of their office. 4. Claims for actual, moral, exemplary and other forms of damages arising from the
employer-employee relations;
The Chairman, the division Presiding Commissioners and other Commissioners shall
be appointed by the President, subject to confirmation by the Commission on 5. Cases arising from any violation of Article 264 of this Code, including questions
Appointments. Appointment to any vacancy shall come from the nominees of the involving the legality of strikes and lockouts; and
sector which nominated the predecessor. The Executive Labor Arbiters and Labor
Arbiters shall also be appointed by the President, upon recommendation of the 6. Except claims for Employees Compensation, Social Security, Medicare and
Secretary of Labor and Employment and shall be subject to the Civil Service Law, maternity benefits, all other claims arising from employer-employee relations,
rules and regulations. including those of persons in domestic or household service, involving an amount
exceeding five thousand pesos (P5,000.00) regardless of whether accompanied
The Secretary of Labor and Employment shall, in consultation with the Chairman of with a claim for reinstatement.
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 (b) The Commission shall have exclusive appellate jurisdiction over all cases
Service Law, rules and regulations, and upgrade their current salaries, benefits and decided by Labor Arbiters.
other emoluments in accordance with law. (As amended by Section 7, Republic Act
No. 6715, March 21, 1989).
(c) Cases arising from the interpretation or implementation of collective bargaining
agreements and those arising from the interpretation or enforcement of company
ART. 216. Salaries, benefits and other emoluments. - The Chairman and members personnel policies shall be disposed of by the Labor Arbiter by referring the same to
of the Commission shall receive an annual salary at least equivalent to, and be the grievance machinery and voluntary arbitration as may be provided in said
entitled to the same allowances and benefits as those of the Presiding Justice and agreements. (As amended by Section 9, Republic Act No. 6715, March 21, 1989).
Associate Justices of the Court of Appeals, respectively. The Executive Labor
Arbiters shall receive an annual salary at least equivalent to that of an Assistant
Regional Director of the Department of Labor and Employment and shall be entitled ART. 218. Powers of the Commission. - The Commission shall have the power and
to the same allowances and benefits as that of a Regional Director of said authority:
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 (a) To promulgate rules and regulations governing the hearing and disposition of
Regional Director of the Department of Labor and Employment. In no case, cases before it and its regional branches, as well as those pertaining to its internal
however, shall the provision of this Article result in the diminution of existing functions and such rules and regulations as may be necessary to carry out the
salaries, allowances and benefits of the aforementioned officials. (As amended by purposes of this Code; (As amended by Section 10, Republic Act No. 6715, March
Section 8, Republic Act No. 6715, March 21, 1989). 21, 1989).
 33

(b) To administer oaths, summon the parties to a controversy, issue subpoenas opposition thereto, if offered, and only after a finding of fact by the Commission, to
requiring the attendance and testimony of witnesses or the production of such the effect:
books, papers, contracts, records, statement of accounts, agreements, and others
as may be material to a just determination of the matter under investigation, and
(1) That prohibited or unlawful acts have been threatened and will be committed
to testify in any investigation or hearing conducted in pursuance of this Code;
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
(c) To conduct investigation for the determination of a question, matter or against the person or persons, association or organization making the threat or
controversy within its jurisdiction, proceed to hear and determine the disputes in committing the prohibited or unlawful act or actually authorizing or ratifying the
the absence of any party thereto who has been summoned or served with notice to same after actual knowledge thereof;
appear, conduct its proceedings or any part thereof in public or in private, adjourn
its hearings to any time and place, refer technical matters or accounts to an expert
(2) That substantial and irreparable injury to complainant’s property will follow;
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 (3) That as to each item of relief to be granted, greater injury will be inflicted upon
directions as it may deem necessary or expedient in the determination of the complainant by the denial of relief than will be inflicted upon defendants by the
dispute before it, and dismiss any matter or refrain from further hearing or from granting of relief;
determining the dispute or part thereof, where it is trivial or where further
proceedings by the Commission are not necessary or desirable; and (4) That complainant has no adequate remedy at law; and

(d) To hold any person in contempt directly or indirectly and impose appropriate (5) That the public officers charged with the duty to protect complainant’s property
penalties therefor in accordance with law. are unable or unwilling to furnish adequate protection.

A person guilty of misbehavior in the presence of or so near the Chairman or any Such hearing shall be held after due and personal notice thereof has been served,
member of the Commission or any Labor Arbiter as to obstruct or interrupt the in such manner as the Commission shall direct, to all known persons against whom
proceedings before the same, including disrespect toward said officials, offensive relief is sought, and also to the Chief Executive and other public officials of the
personalities toward others, or refusal to be sworn, or to answer as a witness or to province or city within which the unlawful acts have been threatened or committed,
subscribe an affidavit or deposition when lawfully required to do so, may be charged with the duty to protect complainant’s property: Provided, however, that if
summarily adjudged in direct contempt by said officials and punished by fine not a complainant shall also allege that, unless a temporary restraining order shall be
exceeding five hundred pesos (P500) or imprisonment not exceeding five (5) days, issued without notice, a substantial and irreparable injury to complainant’s property
or both, if it be the Commission, or a member thereof, or by a fine not exceeding will be unavoidable, such a temporary restraining order may be issued upon
one hundred pesos (P100) or imprisonment not exceeding one (1) day, or both, if it testimony under oath, sufficient, if sustained, to justify the Commission in issuing a
be a Labor Arbiter. 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
The person adjudged in direct contempt by a Labor Arbiter may appeal to the expiration of said twenty (20) days. No such temporary restraining order or
Commission and the execution of the judgment shall be suspended pending the temporary injunction shall be issued except on condition that complainant shall first
resolution of the appeal upon the filing by such person of a bond on condition that file an undertaking with adequate security in an amount to be fixed by the
he will abide by and perform the judgment of the Commission should the appeal be Commission sufficient to recompense those enjoined for any loss, expense or
decided against him. Judgment of the Commission on direct contempt is damage caused by the improvident or erroneous issuance of such order or
immediately executory and unappealable. Indirect contempt shall be dealt with by injunction, including all reasonable costs, together with a reasonable attorney’s fee,
the Commission or Labor Arbiter in the manner prescribed under Rule 71 of the and expense of defense against the order or against the granting of any injunctive
Revised Rules of Court; and (As amended by Section 10, Republic Act No. 6715, relief sought in the same proceeding and subsequently denied by the Commission.
March 21, 1989).
The undertaking herein mentioned shall be understood to constitute an agreement
(e) To enjoin or restrain any actual or threatened commission of any or all entered into by the complainant and the surety upon which an order may be
prohibited or unlawful acts or to require the performance of a particular act in any rendered in the same suit or proceeding against said complainant and surety, upon
labor dispute which, if not restrained or performed forthwith, may cause grave or a hearing to assess damages, of which hearing, complainant and surety shall have
irreparable damage to any party or render ineffectual any decision in favor of such reasonable notice, the said complainant and surety submitting themselves to the
party: Provided, That no temporary or permanent injunction in any case involving jurisdiction of the Commission for that purpose. But nothing herein contained shall
or growing out of a labor dispute as defined in this Code shall be issued except after deprive any party having a claim or cause of action under or upon such undertaking
hearing the testimony of witnesses, with opportunity for cross-examination, in from electing to pursue his ordinary remedy by suit at law or in equity: Provided,
support of the allegations of a complaint made under oath, and testimony in 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
 34

such hearings in such places as he may determine to be accessible to the parties Chapter III
and their witnesses and shall submit thereafter his recommendation to the APPEAL
Commission. (As amended by Section 10, Republic Act No. 6715, March 21, 1989).
ART. 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
ART. 219. Ocular inspection. - The Chairman, any Commissioner, Labor Arbiter or
(10) calendar days from receipt of such decisions, awards, or orders. Such appeal
their duly authorized representatives, may, at any time during working hours,
may be entertained only on any of the following grounds:
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, (a) If there is prima facie evidence of abuse of discretion on the part of the Labor
for any information or data concerning any matter or question relative to the object Arbiter;
of the investigation.
(b) If the decision, order or award was secured through fraud or coercion, including
[ART. 220. Compulsory arbitration. - The Commission or any Labor Arbiter shall graft and corruption;
have the power to ask the assistance of other government officials and qualified
private citizens to act as compulsory arbitrators on cases referred to them and to
(c) If made purely on questions of law; and
fix and assess the fees of such compulsory arbitrators, taking into account the
nature of the case, the time consumed in hearing the case, the professional
standing of the arbitrators, the financial capacity of the parties, and the fees (d) If serious errors in the findings of facts are raised which would cause grave or
provided in the Rules of Court.] (Repealed by Section 16, Batas Pambansa Bilang irreparable damage or injury to the appellant.
130, August 21, 1981).
In case of a judgment involving a monetary award, an appeal by the employer may
ART. 221. Technical rules not binding and prior resort to amicable settlement. - In be perfected only upon the posting of a cash or surety bond issued by a reputable
any proceeding before the Commission or any of the Labor Arbiters, the rules of bonding company duly accredited by the Commission in the amount equivalent to
evidence prevailing in courts of law or equity shall not be controlling and it is the the monetary award in the judgment appealed from.
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 In any event, the decision of the Labor Arbiter reinstating a dismissed or separated
each case speedily and objectively and without regard to technicalities of law or employee, insofar as the reinstatement aspect is concerned, shall immediately be
procedure, all in the interest of due process. In any proceeding before the executory, even pending appeal. The employee shall either be admitted back to
Commission or any Labor Arbiter, the parties may be represented by legal counsel work under the same terms and conditions prevailing prior to his dismissal or
but it shall be the duty of the Chairman, any Presiding Commissioner or separation or, at the option of the employer, merely reinstated in the payroll. The
Commissioner or any Labor Arbiter to exercise complete control of the proceedings posting of a bond by the employer shall not stay the execution for reinstatement
at all stages. provided herein.

Any provision of law to the contrary notwithstanding, the Labor Arbiter shall exert To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter
all efforts towards the amicable settlement of a labor dispute within his jurisdiction shall impose reasonable penalty, including fines or censures, upon the erring
on or before the first hearing. The same rule shall apply to the Commission in the parties.
exercise of its original jurisdiction. (As amended by Section 11, Republic Act No.
6715, March 21, 1989).
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
ART. 222. Appearances and Fees. - (a) Non-lawyers may appear before the receipt thereof.
Commission or any Labor Arbiter only:

The Commission shall decide all cases within twenty (20) calendar days from
1. If they represent themselves; or 2. If they represent their organization or receipt of the answer of the appellee. The decision of the Commission shall be final
members thereof. and executory after ten (10) calendar days from receipt thereof by the parties.

(b) No attorney’s fees, negotiation fees or similar charges of any kind arising from Any law enforcement agency may be deputized by the Secretary of Labor and
any collective bargaining agreement shall be imposed on any individual member of Employment or the Commission in the enforcement of decisions, awards or
the contracting union: Provided, However, that attorney’s fees may be charged orders. (As amended by Section 12, Republic Act No. 6715, March 21, 1989).
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. (As
amended by Presidential Decree No. 1691, May 1, 1980). ART. 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
 35

Med-Arbiter or Voluntary Arbitrator may, motu proprio or on motion of any indorsement of the Regional Director may be appealed to the Bureau within ten
interested party, issue a writ of execution on a judgment within five (5) years from (10) working days from receipt of the notice.
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
(b) The parties may, at any time, by mutual agreement, withdraw a case from the
Labor and Employment or regional director, the Commission, the Labor Arbiter or
Conciliation Section and jointly submit it to a Labor Arbiter, except deadlocks in
med-arbiter, or voluntary arbitrators. In any case, it shall be the duty of the
collective bargaining.] (Repealed by Section 16, Batas Pambansa Bilang 130,
responsible officer to separately furnish immediately the counsels of record and the
August 21, 1981).
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. ART. 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
(b) The Secretary of Labor and Employment, and the Chairman of the Commission
interested party or at its own initiative.
may designate special sheriffs and take any measure under existing laws to ensure
compliance with their decisions, orders or awards and those of the Labor Arbiters
and voluntary arbitrators, including the imposition of administrative fines which ART. 230. Appointment of bureau personnel. - The Secretary of Labor and
shall not be less than P500.00 nor more than P10,000.00. (As amended by Section Employment may appoint, in addition to the present personnel of the Bureau and
13, Republic Act No. 6715, March 21, 1989). the Industrial Relations Divisions, such number of examiners and other assistants
as may be necessary to carry out the purpose of the Code. [As amended by Section
15, Republic Act No. 6715, March 21, 1989].
ART. 225. Contempt powers of the Secretary of Labor. - In the exercise of his
powers under this Code, the Secretary of Labor may hold any person in direct or
indirect contempt and impose the appropriate penalties therefor. ART. 231. Registry of unions and file of collective bargaining 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
Title III
and records of settlement of labor disputes and copies of orders and decisions of
BUREAU OF LABOR RELATIONS
voluntary arbitrators. The file shall be open and accessible to interested parties
under conditions prescribed by the Secretary of Labor and Employment, provided
ART. 226. Bureau of Labor Relations. - The Bureau of Labor Relations and the Labor that no specific information submitted in confidence shall be disclosed unless
Relations Divisions in the regional offices of the Department of Labor, shall have authorized by the Secretary, or when it is at issue in any judicial litigation, or when
original and exclusive authority to act, at their own initiative or upon request of public interest or national security so requires.
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
Within thirty (30) days from the execution of a Collective Bargaining Agreement,
workplaces, whether agricultural or non-agricultural, except those arising from the
the parties shall submit copies of the same directly to the Bureau or the Regional
implementation or interpretation of collective bargaining agreements which shall be
Offices of the Department of Labor and Employment for registration, accompanied
the subject of grievance procedure and/or voluntary arbitration.
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
The Bureau shall have fifteen (15) working days to act on labor cases before it, Regional Offices shall act upon the application for registration of such Collective
subject to extension by agreement of the parties. (As amended by Section 14, Bargaining Agreement within five (5) calendar days from receipt thereof. The
Republic Act No. 6715, March 21, 1989). Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining
Agreement within five (5) days from its submission.
ART. 227. Compromise agreements. - Any compromise settlement, including those
involving labor standard laws, voluntarily agreed upon by the parties with the The Bureau or Regional Office shall assess the employer for every Collective
assistance of the Bureau or the regional office of the Department of Labor, shall be Bargaining Agreement a registration fee of not less than one thousand pesos
final and binding upon the parties. The National Labor Relations Commission or any (P1,000.00) or in any other amount as may be deemed appropriate and necessary
court, shall not assume jurisdiction over issues involved therein except in case of by the Secretary of Labor and Employment for the effective and efficient
non-compliance thereof or if there isprima facie evidence that the settlement was administration of the Voluntary Arbitration Program. Any amount collected under
obtained through fraud, misrepresentation, or coercion. this provision shall accrue to the Special Voluntary Arbitration Fund.

[ART. 228. Indorsement of cases to Labor Arbiters. - (a) Except as provided in The Bureau shall also maintain a file and shall undertake or assist in the publication
paragraph (b) of this Article, the Labor Arbiter shall entertain only cases endorsed of all final decisions, orders and awards of the Secretary of Labor and Employment,
to him for compulsory arbitration by the Bureau or by the Regional Director with a Regional Directors and the Commission. (As amended by Section 15, Republic Act
written notice of such indorsement or non-indorsement. The indorsement or non- No. 6715, March 21, 1989).
 36

ART. 232. Prohibition on certification election. - The Bureau shall not entertain any ART. 236. Denial of registration; appeal. - The decision of the Labor Relations
petition for certification election or any other action which may disturb the Division in the regional office denying registration may be appealed by the applicant
administration of duly registered existing collective bargaining agreements affecting union to the Bureau within ten (10) days from receipt of notice thereof.
the parties except under Articles 253, 253-A and 256 of this Code. (As amended by
Section 15, Republic Act No. 6715, March 21, 1989).
ART. 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
ART. 233. Privileged communication. - Information and statements made at shall, in addition to the requirements of the preceding Articles, submit the
conciliation proceedings shall be treated as privileged communication and shall not following:
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
(a) Proof of the affiliation of at least ten (10) locals or chapters, each of which must
proceedings conducted by them.
be a duly recognized collective bargaining agent in the establishment or industry in
which it operates, supporting the registration of such applicant federation or
Title IV national union; and
LABOR ORGANIZATIONS
(b) The names and addresses of the companies where the locals or chapters
Chapter I
operate and the list of all the members in each company involved.
REGISTRATION AND CANCELLATION

[ART. 238. Conditions for registration of federations or national unions. - No

ART. 234. Requirements of registration. - Any applicant labor organization,
federation or national union shall be registered to engage in any organization
association or group of unions or workers shall acquire legal personality and shall
activity in more than one industry in any area or region, and no federation or
be entitled to the rights and privileges granted by law to legitimate labor
national union shall be registered to engage in any organizational activity in more
organizations upon issuance of the certificate of registration based on the following
than one industry all over the country.
requirements.

The federation or national union which meets the requirements and conditions
(a) Fifty pesos (P50.00) registration fee;
herein prescribed may organize and affiliate locals and chapters without registering
such locals or chapters with the Bureau.
(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
Locals or chapters shall have the same rights and privileges as if they were
who participated in such meetings;
registered in the Bureau, provided that such federation or national union organizes
such locals or chapters within its assigned organizational field of activity as may be
(c) The names of all its members comprising at least twenty percent (20%) of all prescribed by the Secretary of Labor.
the employees in the bargaining unit where it seeks to operate; (As amended by
Executive Order No. 111, December 24, 1986).
The Bureau shall see to it that federations and national unions shall only organize
locals and chapters within a specific industry or union.] (Repealed by Executive
(d) If the applicant union has been in existence for one or more years, copies of its Order No. 111, December 24, 1986).
annual financial reports; and
ART. 238. Cancellation of registration; appeal. - The certificate of registration of
(e) Four (4) copies of the constitution and by-laws of the applicant union, minutes any legitimate labor organization, whether national or local, shall be cancelled by
of its adoption or ratification, and the list of the members who participated in it. (As the Bureau if it has reason to believe, after due hearing, that the said labor
amended by Batas Pambansa Bilang 130, August 21, 1981). organization no longer meets one or more of the requirements herein prescribed.

ART. 235. Action on application. - The Bureau shall act on all applications for [The Bureau upon approval of this Code shall immediately institute cancellation
registration within thirty (30) days from filing. 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 Executive Order No. 111, December 24, 1986).
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. ART. 239. Grounds for cancellation of union registration. - The following shall
constitute grounds for cancellation of union registration:
 37

(a) Misrepresentation, false statement or fraud in connection with the adoption or Chapter II
ratification of the constitution and by-laws or amendments thereto, the minutes of RIGHTS AND CONDITIONS OF MEMBERSHIP
ratification and the list of members who took part in the ratification;
ART. 241. Rights and conditions of membership in a labor organization. - The
following are the rights and conditions of membership in a labor organization:
(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; (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;
(c) Misrepresentation, false statements or fraud in connection with the election of
officers, minutes of the election of officers, the list of voters, or failure to submit
these documents together with the list of the newly elected/appointed officers and (b) The members shall be entitled to full and detailed reports from their officers and
their postal addresses within thirty (30) days from election; representatives of all financial transactions as provided for in the constitution and
by-laws of the organization;
(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 (c) The members shall directly elect their officers, including those of the national
fraud in the preparation of the financial report itself; union or federation, to which they or their union is affiliated, by secret ballot at
intervals of five (5) years. No qualification requirements for candidacy to any
position shall be imposed other than membership in good standing in subject labor
(e) Acting as a labor contractor or engaging in the "cabo" system, or otherwise
organization. The secretary or any other responsible union officer shall furnish the
engaging in any activity prohibited by law;
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
(f) Entering into collective bargaining agreements which provide terms and of funds, within thirty (30) calendar days after the election of officers or from the
conditions of employment below minimum standards established by law; occurrence of any change in the list of officers of the labor organization; (As
amended by Section 16, Republic Act No. 6715, March 21, 1989).
(g) Asking for or accepting attorney’s fees or negotiation fees from employers;
(d) The members shall determine by secret ballot, after due deliberation, any
(h) Other than for mandatory activities under this Code, checking off special question of major policy affecting the entire membership of the organization, unless
assessments or any other fees without duly signed individual written authorizations the nature of the organization or force majeure renders such secret ballot
of the members; impractical, in which case, the board of directors of the organization may make the
decision in behalf of the general membership;

(i) Failure to submit list of individual members to the Bureau once a year or
whenever required by the Bureau; and (e) No labor organization shall knowingly admit as members or continue in
membership any individual who belongs to a subversive organization or who is
engaged directly or indirectly in any subversive activity;
(j) Failure to comply with requirements under Articles 237 and 238.

(f) No person who has been convicted of a crime involving moral turpitude shall be
ART. 240. Equity of the incumbent. - All existing federations and national unions eligible for election as a union officer or for appointment to any position in the
which meet the qualifications of a legitimate labor organization and none of the union;
grounds for cancellation shall continue to maintain their existing affiliates
regardless of the nature of the industry and the location of the affiliates.
(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 money or funds
unless he is duly authorized pursuant to its constitution and by-laws;

(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;

(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
 38

expressly authorized by written resolution adopted by the majority of the members (m) The books of accounts and other records of the financial activities of any labor
at a general meeting duly called for the purpose; organization shall be open to inspection by any officer or member thereof during
office hours;
(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 (n) No special assessment or other extraordinary fees may be levied upon the
receipt from the person to whom the payment is made, which shall state the date, members of a labor organization unless authorized by a written resolution of a
place and purpose of such payment. Such record or receipt shall form part of the majority of all the members in a general membership meeting duly called for the
financial records of the organization. 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
Any action involving the funds of the organization shall prescribe after three (3)
be attested to by the president.
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 (o) Other than for mandatory activities under the Code, no special assessments,
apply only to a legitimate labor organization which has submitted the financial attorney’s fees, negotiation fees or any other extraordinary fees may be checked off
report requirements under this Code: Provided, further, that failure of any labor from any amount due to an employee without an individual written authorization
organization to comply with the periodic financial reports required by law and such duly signed by the employee. The authorization should specifically state the
rules and regulations promulgated thereunder six (6) months after the effectivity of amount, purpose and beneficiary of the deduction; and
this Act shall automatically result in the cancellation of union registration of such
labor organization; (As amended by Section 16, Republic Act No. 6715, March 21,
(p) It shall be the duty of any labor organization and its officers to inform its
1989).
members on the provisions of its constitution and by-laws, collective bargaining
agreement, the prevailing labor relations system and all their rights and obligations
(k) The officers of any labor organization shall not be paid any compensation other under existing labor laws.
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
For this purpose, registered labor organizations may assess reasonable dues to
of all the members at a general membership meeting duly called for the purpose.
finance labor relations seminars and other labor education activities.
The minutes of the meeting and the list of participants and ballots cast shall be
subject to inspection by the Secretary of Labor or his duly authorized
representatives. Any irregularities in the approval of the resolutions shall be a Any violation of the above rights and conditions of membership shall be a ground
ground for impeachment or expulsion from the organization; for cancellation of union registration or expulsion of officers from office, whichever
is appropriate. At least thirty percent (30%) of the members of a union or any
member or members specially concerned may report such violation to the Bureau.
(l) The treasurer of any labor organization and every officer thereof who is
The Bureau shall have the power to hear and decide any reported violation to mete
responsible for the account of such organization or for the collection, management,
the appropriate penalty.
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 Criminal and civil liabilities arising from violations of above rights and conditions of
the last day on which he rendered such account, and of all bonds, securities and membership shall continue to be under the jurisdiction of ordinary courts.
other properties of the organization entrusted to his custody or under his control.
The rendering of such account shall be made: Chapter III
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS
(1) At least once a year within thirty (30) days after the close of its fiscal year;
ART. 242. Rights of legitimate labor organizations. - A legitimate labor organization
(2) At such other times as may be required by a resolution of the majority of the shall have the right:
members of the organization; and
(a) To act as the representative of its members for the purpose of collective
(3) Upon vacating his office. bargaining;

The account shall be duly audited and verified by affidavit and a copy thereof shall (b) To be certified as the exclusive representative of all the employees in an
be furnished the Secretary of Labor. appropriate bargaining unit for purposes of collective bargaining;

(c) To be furnished by the employer, upon written request, with its annual audited
financial statements, including the balance sheet and the profit and loss statement,
 39

within thirty (30) calendar days from the date of receipt of the request, after the ART. 246. Non-abridgment of right to self-organization. - It shall be unlawful for
union has been duly recognized by the employer or certified as the sole and any person to restrain, coerce, discriminate against or unduly interfere with
exclusive bargaining representative of the employees in the bargaining unit, or employees and workers in their exercise of the right to self-organization. Such right
within sixty (60) calendar days before the expiration of the existing collective shall include the right to form, join, or assist labor organizations for the purpose of
bargaining agreement, or during the collective bargaining negotiation; collective bargaining through representatives of their own choosing and to engage
in lawful concerted activities for the same purpose for their mutual aid and
protection, subject to the provisions of Article 264 of this Code. (As amended by
(d) To own property, real or personal, for the use and benefit of the labor
Batas Pambansa Bilang 70, May 1, 1980).
organization and its members;

(e) To sue and be sued in its registered name; and

Title VI
UNFAIR LABOR PRACTICES
(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. Chapter I
CONCEPT
Notwithstanding any provision of a general or special law to the contrary, the
income and the properties of legitimate labor organizations, including grants, ART. 247. Concept of unfair labor practice and procedure for prosecution thereof. -
endowments, gifts, donations and contributions they may receive from fraternal Unfair labor practices violate the constitutional right of workers and employees to
and similar organizations, local or foreign, which are actually, directly and self-organization, are inimical to the legitimate interests of both labor and
exclusively used for their lawful purposes, shall be free from taxes, duties and other management, including their right to bargain collectively and otherwise deal with
assessments. The exemptions provided herein may be withdrawn only by a special each other in an atmosphere of freedom and mutual respect, disrupt industrial
law expressly repealing this provision. (As amended by Section 17, Republic Act No. peace and hinder the promotion of healthy and stable labor-management relations.
6715, March 21, 1989).
Consequently, unfair labor practices are not only violations of the civil rights of both
Title V labor and management but are also criminal offenses against the State which shall
COVERAGE be subject to prosecution and punishment as herein provided.

ART. 243. Coverage and employees’ right to self-organization. - All persons Subject to the exercise by the President or by the Secretary of Labor and
employed in commercial, industrial and agricultural enterprises and in religious, Employment of the powers vested in them by Articles 263 and 264 of this Code, the
charitable, medical, or educational institutions, whether operating for profit or not, civil aspects of all cases involving unfair labor practices, which may include claims
shall have the right to self-organization and to form, join, or assist labor for actual, moral, exemplary and other forms of damages, attorney’s fees and other
organizations of their own choosing for purposes of collective bargaining. Ambulant, affirmative relief, shall be under the jurisdiction of the Labor Arbiters. The Labor
intermittent and itinerant workers, self-employed people, rural workers and those Arbiters shall give utmost priority to the hearing and resolution of all cases
without any definite employers may form labor organizations for their mutual aid involving unfair labor practices. They shall resolve such cases within thirty (30)
and protection. (As amended by Batas Pambansa Bilang 70, May 1, 1980). calendar days from the time they are submitted for decision.

ART. 244. Right of employees in the public service. - Employees of government Recovery of civil liability in the administrative proceedings shall bar recovery under
corporations established under the Corporation Code shall have the right to the Civil Code.
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 No criminal prosecution under this Title may be instituted without a final judgment
not contrary to law. (As amended by Executive Order No. 111, December 24, finding that an unfair labor practice was committed, having been first obtained in
1986). the preceding paragraph. During the pendency of such administrative proceeding,
the running of the period of prescription of the criminal offense herein penalized
ART. 245. Ineligibility of managerial employees to join any labor organization; right shall be considered interrupted: Provided, however, that the final judgment in the
of supervisory employees. - Managerial employees are not eligible to join, assist or administrative proceedings shall not be binding in the criminal case nor be
form any labor organization. Supervisory employees shall not be eligible for considered as evidence of guilt but merely as proof of compliance of the
membership in a labor organization of the rank-and-file employees but may join, requirements therein set forth. (As amended by Batas Pambansa Bilang 70, May 1,
assist or form separate labor organizations of their own. (As amended by Section 1980 and later further amended by Section 19, Republic Act No. 6715, March 21,
18, Republic Act No. 6715, March 21, 1989). 1989).
 40

Chapter II Chapter III

UNFAIR LABOR PRACTICES OF EMPLOYERS UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS

ART. 248. Unfair labor practices of employers. - It shall be unlawful for an employer ART. 249. Unfair labor practices of labor organizations. - It shall be unfair labor
to commit any of the following unfair labor practice: practice for a labor organization, its officers, agents or representatives:

(a) To interfere with, restrain or coerce employees in the exercise of their right to (a) To restrain or coerce employees in the exercise of their right to self-
self-organization; organization. However, a labor organization shall have the right to prescribe its own
rules with respect to the acquisition or retention of membership;
(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; (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
(c) To contract out services or functions being performed by union members when
other than the usual terms and conditions under which membership or continuation
such will interfere with, restrain or coerce employees in the exercise of their rights
of membership is made available to other members;
to self-organization;

(c) To violate the duty, or refuse to bargain collectively with the employer, provided
(d) To initiate, dominate, assist or otherwise interfere with the formation or
it is the representative of the employees;
administration of any labor organization, including the giving of financial or other
support to it or its organizers or supporters;
(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
(e) To discriminate in regard to wages, hours of work and other terms and
services which are not performed or not to be performed, including the demand for
conditions of employment in order to encourage or discourage membership in any
fee for union negotiations;
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 (e) To ask for or accept negotiation or attorney’s fees from employers as part of the
another union at the time of the signing of the collective bargaining agreement. settlement of any issue in collective bargaining or any other dispute; or
Employees of an appropriate bargaining unit who are not members of the
recognized collective bargaining agent may be assessed a reasonable fee equivalent
(f) To violate a collective bargaining agreement.
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
bargaining agreement: Provided, that the individual authorization required under The provisions of the preceding paragraph notwithstanding, only the officers,
Article 242, paragraph (o) of this Code shall not apply to the non-members of the members of governing boards, representatives or agents or members of labor
recognized collective bargaining agent; associations or organizations who have actually participated in, authorized or
ratified unfair labor practices shall be held criminally liable. (As amended by Batas
Pambansa Bilang 130, August 21, 1981).
(f) To dismiss, discharge or otherwise prejudice or discriminate against an
employee for having given or being about to give testimony under this Code;
Title VII
COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS
(g) To violate the duty to bargain collectively as prescribed by this Code;

ART. 250. Procedure in collective bargaining. - The following procedures shall be

(h) To pay negotiation or attorney’s fees to the union or its officers or agents as
observed in collective bargaining:
part of the settlement of any issue in collective bargaining or any other dispute; or

(a) When a party desires to negotiate an agreement, it shall serve a written notice
(i) To violate a collective bargaining agreement.
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;
The provisions of the preceding paragraph notwithstanding, only the officers and
agents of corporations, associations or partnerships who have actually participated
(b) Should differences arise on the basis of such notice and reply, either party may
in, authorized or ratified unfair labor practices shall be held criminally liable. (As
request for a conference which shall begin not later than ten (10) calendar days
amended by Batas Pambansa Bilang 130, August 21, 1981).
from the date of request.
 41

(c) If the dispute is not settled, the Board shall intervene upon request of either or the Collective Bargaining Agreement, the parties may exercise their rights under
both parties or at its own initiative and immediately call the parties to conciliation this Code. (As amended by Section 21, Republic Act No. 6715, March 21, 1989).
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
ART. 254. Injunction prohibited. - No temporary or permanent injunction or
participate fully and promptly in the conciliation meetings the Board may call;
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
(d) During the conciliation proceedings in the Board, the parties are prohibited from and 264 of this Code. (As amended by Batas Pambansa Bilang 227, June 1, 1982).
doing any act which may disrupt or impede the early settlement of the disputes;
and
ART. 255. Exclusive bargaining representation and workers’ participation in policy
and decision-making. - The labor organization designated or selected by the
(e) The Board shall exert all efforts to settle disputes amicably and encourage the majority of the employees in an appropriate collective bargaining unit shall be the
parties to submit their case to a voluntary arbitrator. (As amended by Section 20, exclusive representative of the employees in such unit for the purpose of collective
Republic Act No. 6715, March 21, 1989). bargaining. However, an individual employee or group of employees shall have the
right at any time to present grievances to their employer.
ART. 251. Duty to bargain collectively in the absence of collective bargaining
agreements. - In the absence of an agreement or other voluntary arrangement Any provision of law to the contrary notwithstanding, workers shall have the right,
providing for a more expeditious manner of collective bargaining, it shall be the subject to such rules and regulations as the Secretary of Labor and Employment
duty of employer and the representatives of the employees to bargain collectively may promulgate, to participate in policy and decision-making processes of the
in accordance with the provisions of this Code. 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
ART. 252. Meaning of duty to bargain collectively. - The duty to bargain collectively
in such labor-management councils shall be elected by at least the majority of all
means the performance of a mutual obligation to meet and convene promptly and
employees in said establishment. (As amended by Section 22, Republic Act No.
expeditiously in good faith for the purpose of negotiating an agreement with
6715, March 21, 1989).
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 ART. 256. Representation issue in organized establishments. - In organized
either party but such duty does not compel any party to agree to a proposal or to establishments, when a verified petition questioning the majority status of the
make any concession. incumbent bargaining agent is filed before the Department of Labor and
Employment within the sixty-day period before the expiration of the collective
bargaining agreement, the Med-Arbiter shall automatically order an election by
ART. 253. Duty to bargain collectively when there exists a collective bargaining
secret ballot when the verified petition is supported by the written consent of at
agreement. - When there is a collective bargaining agreement, the duty to bargain
least twenty-five percent (25%) of all the employees in the bargaining unit to
collectively shall also mean that neither party shall terminate nor modify such
ascertain the will of the employees in the appropriate bargaining unit. To have a
agreement during its lifetime. However, either party can serve a written notice to
valid election, at least a majority of all eligible voters in the unit must have cast
terminate or modify the agreement at least sixty (60) days prior to its expiration
their votes. The labor union receiving the majority of the valid votes cast shall be
date. It shall be the duty of both parties to keep the status quo and to continue in
certified as the exclusive bargaining agent of all the workers in the unit. When an
full force and effect the terms and conditions of the existing agreement during the
election which provides for three or more choices results in no choice receiving a
60-day period and/or until a new agreement is reached by the parties.
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
ART. 253-A. Terms of a collective bargaining agreement. - Any Collective number of votes for all contending unions is at least fifty percent (50%) of the
Bargaining Agreement that the parties may enter into shall, insofar as the number of votes cast.
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
At the expiration of the freedom period, the employer shall continue to recognize
entertained and no certification election shall be conducted by the Department of
the majority status of the incumbent bargaining agent where no petition for
Labor and Employment outside of the sixty-day period immediately before the date
certification election is filed. (As amended by Section 23, Republic Act No. 6715,
of expiry of such five-year term of the Collective Bargaining Agreement. All other
March 21, 1989).
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 ART. 257. Petitions in unorganized establishments. - In any establishment where
date of expiry of the term of such other provisions as fixed in such Collective there is no certified bargaining agent, a certification election shall automatically be
Bargaining Agreement, shall retroact to the day immediately following such date. If conducted by the Med-Arbiter upon the filing of a petition by a legitimate labor
any such agreement is entered into beyond six months, the parties shall agree on organization. (As amended by Section 24, Republic Act No. 6715, March 21, 1989).
the duration of retroactivity thereof. In case of a deadlock in the renegotiation of
 42

ART. 258. When an employer may file petition. - When requested to bargain Collective Bargaining Agreement, except those which are gross in character, shall
collectively, an employer may petition the Bureau for an election. If there is no no longer be treated as unfair labor practice and shall be resolved as grievances
existing certified collective bargaining agreement in the unit, the Bureau shall, after under the Collective Bargaining Agreement. For purposes of this article, gross
hearing, order a certification election. violations of Collective Bargaining Agreement shall mean flagrant and/or malicious
refusal to comply with the economic provisions of such agreement.
All certification cases shall be decided within twenty (20) working days.
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 Bureau shall conduct a certification election within twenty (20) days in
the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of
accordance with the rules and regulations prescribed by the Secretary of Labor.
Voluntary Arbitrators and shall immediately dispose and refer the same to the
Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining
ART. 259. Appeal from certification election orders. - Any party to an election may Agreement.
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
ART. 262. Jurisdiction over other labor disputes. - The Voluntary Arbitrator or panel
regulations or parts thereof established by the Secretary of Labor and Employment
of Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide
for the conduct of the election have been violated. Such appeal shall be decided
all other labor disputes including unfair labor practices and bargaining deadlocks.
within fifteen (15) calendar days. (As amended by Section 25, Republic Act No.
6715, March 21, 1989).
ART. 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
Title VII-A
to effect a voluntary settlement between parties.
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

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
ART. 260. Grievance machinery and voluntary arbitration. - The parties to a
shall be determined by the Voluntary Arbitrator or panel of Voluntary Arbitrators.
Collective Bargaining Agreement shall include therein provisions that will ensure the
Hearing may be adjourned for cause or upon agreement by the parties.
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 Unless the parties agree otherwise, it shall be mandatory for the Voluntary
interpretation or enforcement of company personnel policies. 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.
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. 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
For this purpose, parties to a Collective Bargaining Agreement shall name and
decision by the parties.
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 Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary
Arbitrators duly accredited by the Board. In case the parties fail to select a Arbitrators or the Labor Arbiter in the region where the movant resides, in case of
Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall designate the the absence or incapacity of the Voluntary Arbitrator or panel of Voluntary
Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be necessary, Arbitrators, for any reason, may issue a writ of execution requiring either the sheriff
pursuant to the selection procedure agreed upon in the Collective Bargaining of the Commission or regular courts or any public official whom the parties may
Agreement, which shall act with the same force and effect as if the Arbitrator or designate in the submission agreement to execute the final decision, order or
panel of Arbitrators has been selected by the parties as described above. award.

ART. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. - ART. 262-B. Cost of voluntary arbitration and Voluntary Arbitrator’s fee. - The
The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and parties to a Collective Bargaining Agreement shall provide therein a proportionate
exclusive jurisdiction to hear and decide all unresolved grievances arising from the sharing scheme on the cost of voluntary arbitration including the Voluntary
interpretation or implementation of the Collective Bargaining Agreement and those Arbitrator’s fee. The fixing of fee of Voluntary Arbitrators, whether shouldered
arising from the interpretation or enforcement of company personnel policies wholly by the parties or subsidized by the Special Voluntary Arbitration Fund, shall
referred to in the immediately preceding article. Accordingly, violations of a take into account the following factors:
 43

(a) Nature of the case; substantially the same grounds considered when the strike or lockout vote was
(b) Time consumed in hearing the case; taken. The Ministry may, at its own initiative or upon the request of any affected
(c) Professional standing of the Voluntary Arbitrator; party, supervise the conduct of the secret balloting. In every case, the union or the
(d) Capacity to pay of the parties; and employer shall furnish the Ministry the results of the voting at least seven days
(e) Fees provided for in the Revised Rules of Court. before the intended strike or lockout, subject to the cooling-off period herein
provided. (As amended by Batas Pambansa Bilang 130, August 21, 1981 and
further amended by Executive Order No. 111, December 24, 1986).
Title VIII
STRIKES & LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION
(g) When, in his opinion, there exists a labor dispute causing or likely to cause a
ACTIVITIES
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
Chapter I
certification shall have the effect of automatically enjoining the intended or
STRIKES AND LOCKOUTS
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
ART. 263. Strikes, picketing and lockouts. - (a) It is the policy of the State to
locked out employees shall immediately return-to-work and the employer shall
encourage free trade unionism and free collective bargaining.
immediately resume operations and readmit all workers under the same terms and
conditions prevailing before the strike or lockout. The Secretary of Labor and
(b) Workers shall have the right to engage in concerted activities for purposes of Employment or the Commission may seek the assistance of law enforcement
collective bargaining or for their mutual benefit and protection. The right of agencies to ensure compliance with this provision as well as with such orders as he
legitimate labor organizations to strike and picket and of employers to lockout, may issue to enforce the same.
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
In line with the national concern for and the highest respect accorded to the right of
grounds involving inter-union and intra-union disputes.
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
(c) In case of bargaining deadlocks, the duly certified or recognized bargaining efforts, not only by labor and management but government as well, be exhausted
agent may file a notice of strike or the employer may file a notice of lockout with to substantially minimize, if not prevent, their adverse effects on such life and
the Ministry at least 30 day before the intended date thereof. In cases of unfair health, through the exercise, however legitimate, by labor of its right to strike and
labor practice, the period of notice shall be 15 days and in the absence of a duly by management to lockout. In labor disputes adversely affecting the continued
certified or recognized bargaining agent, the notice of strike may be filed by any operation of such hospitals, clinics or medical institutions, it shall be the duty of the
legitimate labor organization in behalf of its members. However, in case of striking union or locking-out employer to provide and maintain an effective skeletal
dismissal from employment of union officers duly elected in accordance with the workforce of medical and other health personnel, whose movement and services
union constitution and by-laws, which may constitute union busting, where the shall be unhampered and unrestricted, as are necessary to insure the proper and
existence of the union is threatened, the 15-day cooling-off period shall not apply adequate protection of the life and health of its patients, most especially emergency
and the union may take action immediately. (As amended by Executive Order No. cases, for the duration of the strike or lockout. In such cases, therefore, the
111, December 24, 1986). 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
(d) The notice must be in accordance with such implementing rules and regulations
arbitration. For this purpose, the contending parties are strictly enjoined to comply
as the Minister of Labor and Employment may promulgate.
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
(e) During the cooling-off period, it shall be the duty of the Ministry to exert all action, including dismissal or loss of employment status or payment by the locking-
efforts at mediation and conciliation to effect a voluntary settlement. Should the out employer of backwages, damages and other affirmative relief, even criminal
dispute remain unsettled until the lapse of the requisite number of days from the prosecution against either or both of them.
mandatory filing of the notice, the labor union may strike or the employer may
declare a lockout.
The foregoing notwithstanding, the President of the Philippines shall not be
precluded from determining the industries that, in his opinion, are indispensable to
(f) A decision to declare a strike must be approved by a majority of the total union the national interest, and from intervening at any time and assuming jurisdiction
membership in the bargaining unit concerned, obtained by secret ballot in meetings over any such labor dispute in order to settle or terminate the same.
or referenda called for that purpose. A decision to declare a lockout must be
approved by a majority of the board of directors of the corporation or association or
(h) Before or at any stage of the compulsory arbitration process, the parties may
of the partners in a partnership, obtained by secret ballot in a meeting called for
opt to submit their dispute to voluntary arbitration.
that purpose. The decision shall be valid for the duration of the dispute based on
 44

(i) The Secretary of Labor and Employment, the Commission or the voluntary ART. 265. Improved offer balloting. - In an effort to settle a strike, the Department
arbitrator shall decide or resolve the dispute, as the case may be. The decision of of Labor and Employment shall conduct a referendum by secret ballot on the
the President, the Secretary of Labor and Employment, the Commission or the improved offer of the employer on or before the 30th day of the strike. When at
voluntary arbitrator shall be final and executory ten (10) calendar days after receipt least a majority of the union members vote to accept the improved offer the
thereof by the parties. (As amended by Section 27, Republic Act No. 6715, March striking workers shall immediately return to work and the employer shall thereupon
21, 1989). readmit them upon the signing of the agreement.

ART. 264. Prohibited activities. - (a) No labor organization or employer shall declare In case of a lockout, the Department of Labor and Employment shall also conduct a
a strike or lockout without first having bargained collectively in accordance with referendum by secret balloting on the reduced offer of the union on or before the
Title VII of this Book or without first having filed the notice required in the 30th day of the lockout. When at least a majority of the board of directors or
preceding Article or without the necessary strike or lockout vote first having been trustees or the partners holding the controlling interest in the case of a partnership
obtained and reported to the Ministry. 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. (Incorporated by Section 28, Republic Act No. 6715, March 21, 1989).
No strike or lockout shall be declared after assumption of jurisdiction by the
President or the Minister or after certification or submission of the dispute to
compulsory or voluntary arbitration or during the pendency of cases involving the ART. 266. Requirement for arrest and detention. - Except on grounds of national
same grounds for the strike or lockout. security and public peace or in case of commission of a crime, no union members or
union organizers may be arrested or detained for union activities without previous
consultations with the Secretary of Labor.
Any worker whose employment has been terminated as a consequence of any
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 Chapter II
may be declared to have lost his employment status: Provided, That mere ASSISTANCE TO LABOR ORGANIZATIONS
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
ART. 267. Assistance by the Department of Labor. - The Department of Labor, at
employer during such lawful strike.
the initiative of the Secretary of Labor, shall extend special assistance to the
organization, for purposes of collective bargaining, of the most underprivileged
(b) No person shall obstruct, impede, or interfere with, by force, violence, coercion, workers who, for reasons of occupation, organizational structure or insufficient
threats or intimidation, any peaceful picketing by employees during any labor incomes, are not normally covered by major labor organizations or federations.
controversy or in the exercise of the right to self-organization or collective
bargaining, or shall aid or abet such obstruction or interference.
ART. 268. Assistance by the Institute of Labor and Manpower Studies. - The
Institute of Labor and Manpower Studies shall render technical and other forms of
(c) No employer shall use or employ any strike-breaker, nor shall any person be assistance to labor organizations and employer organizations in the field of labor
employed as a strike-breaker. education, especially pertaining to collective bargaining, arbitration, labor standards
and the Labor Code of the Philippines in general.
(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 person, Chapter III
shall bring in, introduce or escort in any manner, any individual who seeks to FOREIGN ACTIVITIES
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
ART. 269. Prohibition against aliens; exceptions. - All aliens, natural or juridical, as
violence or other criminal acts occur therein: Provided, That nothing herein shall be
well as foreign organizations are strictly prohibited from engaging directly or
interpreted to prevent any public officer from taking any measure necessary to
indirectly in all forms of trade union activities without prejudice to normal contacts
maintain peace and order, protect life and property, and/or enforce the law and
between Philippine labor unions and recognized international labor centers:
legal order. (As amended by Executive Order No. 111, December 24, 1986).
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-
(e) No person engaged in picketing shall commit any act of violence, coercion or organization and join or assist labor organizations of their own choosing for
intimidation or obstruct the free ingress to or egress from the employer’s premises purposes of collective bargaining: Provided, further, That said aliens are nationals
for lawful purposes, or obstruct public thoroughfares. (As amended by Batas of a country which grants the same or similar rights to Filipino workers. (As
Pambansa Bilang 227, June 1, 1982). amended by Section 29, Republic Act No. 6715, March 21, 1989).
 45

ART. 270. Regulation of foreign assistance. - (a) No foreign individual, organization (b) Upon the recommendation of the Minister of Labor and Employment and the
or entity may give any donations, grants or other forms of assistance, in cash or in Minister of National Defense, foreigners who violate the provisions of this Title shall
kind, directly or indirectly, to any labor organization, group of workers or any be subject to immediate and summary deportation by the Commission on
auxiliary thereof, such as cooperatives, credit unions and institutions engaged in Immigration and Deportation and shall be permanently barred from re-entering the
research, education or communication, in relation to trade union activities, without country without the special permission of the President of the Philippines. (As
prior permission by the Secretary of Labor. amended by Section 16, Batas Pambansa Bilang 130 and Section 7, Batas
Pambansa Bilang 227).
"Trade union activities" shall mean:

Title IX
(1) organization, formation and administration of labor organization;
SPECIAL PROVISIONS

(2) negotiation and administration of collective bargaining agreements;

ART. 273. Study of labor-management relations. - The Secretary of Labor shall
have the power and it shall be his duty to inquire into:
(3) all forms of concerted union action;
(a) the existing relations between employers and employees in the Philippines;
(4) organizing, managing, or assisting union conventions, meetings, rallies,
referenda, teach-ins, seminars, conferences and institutes;
(b) the growth of associations of employees and the effect of such associations
upon employer-employee relations;
(5) any form of participation or involvement in representation proceedings,
representation elections, consent elections, union elections; and
(c) the extent and results of the methods of collective bargaining in the
determination of terms and conditions of employment;
(6) other activities or actions analogous to the foregoing.
(d) the methods which have been tried by employers and associations of employees
(b) This prohibition shall equally apply to foreign donations, grants or other forms for maintaining mutually satisfactory relations;
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.
(e) desirable industrial practices which have been developed through collective
bargaining and other voluntary arrangements;
(c) The Secretary of Labor shall promulgate rules and regulations to regulate and
control the giving and receiving of such donations, grants, or other forms of
(f) the possible ways of increasing the usefulness and efficiency of collective
assistance, including the mandatory reporting of the amounts of the donations or
bargaining for settling differences;
grants, the specific recipients thereof, the projects or activities proposed to be
supported, and their duration.
(g) the possibilities for the adoption of practical and effective methods of labor-
management cooperation;
ART. 271. Applicability to farm tenants and rural workers. - The provisions of this
Title pertaining to foreign organizations and activities shall be deemed applicable
likewise to all organizations of farm tenants, rural workers, and the like: Provided, (h) any other aspects of employer-employee relations concerning the promotion of
That in appropriate cases, the Secretary of Agrarian Reform shall exercise the harmony and understanding between the parties; and
powers and responsibilities vested by this Title in the Secretary of Labor.
(i) the relevance of labor laws and labor relations to national development.
Chapter IV
PENALTIES FOR VIOLATION
The Secretary of Labor shall also inquire into the causes of industrial unrest and
take all the necessary steps within his power as may be prescribed by law to
ART. 272. Penalties. - (a) Any person violating any of the provisions of Article 264 alleviate the same, and shall from time to time recommend the enactment of such
of this Code shall be punished by a fine of not less than one thousand pesos remedial legislation as in his judgment may be desirable for the maintenance and
(P1,000.00) nor more than ten thousand pesos (P10,000.00) and/or imprisonment promotion of industrial peace.
for not less than three months nor more than three (3) years, or both such fine and
imprisonment, at the discretion of the court. Prosecution under this provision shall
ART. 274. Visitorial power. - The Secretary of Labor and Employment or his duly
preclude prosecution for the same act under the Revised Penal Code, and vice
authorized representative is hereby empowered to inquire into the financial
versa.
activities of legitimate labor organizations upon the filing of a complaint under oath
 46

and duly supported by the written consent of at least twenty percent (20%) of the event of a prima facie finding by the appropriate official of the Department of Labor
total membership of the labor organization concerned and to examine their books and Employment before whom such dispute is pending that the termination may
of accounts and other records to determine compliance or non-compliance with the cause a serious labor dispute or is in implementation of a mass lay-off. (As
law and to prosecute any violations of the law and the union constitution and by- amended by Section 33, Republic Act No. 6715, March 21, 1989).
laws: Provided, That such inquiry or examination shall not be conducted during the
sixty (60)-day freedom period nor within the thirty (30) days immediately
(c) Any employee, whether employed for a definite period or not, shall, beginning
preceding the date of election of union officials. (As amended by Section 31,
on his first day of service, be considered as an employee for purposes of
Republic Act No. 6715, March 21, 1989).
membership in any labor union. (As amended by Section 33, Republic Act No.
6715).
ART. 275. Tripartism and tripartite conferences. - (a) Tripartism in labor relations is
hereby declared a State policy. Towards this end, workers and employers shall, as
(d) No docket fee shall be assessed in labor standards disputes. In all other
far as practicable, be represented in decision and policy-making bodies of the
disputes, docket fees may be assessed against the filing party, provided that in
government.
bargaining deadlock, such fees shall be shared equally by the negotiating parties.

(b) The Secretary of Labor and Employment or his duly authorized representatives
(e) The Minister of Labor and Employment and the Minister of the Budget shall
may, from time to time, call a national, regional, or industrial tripartite conference
cause to be created or reclassified in accordance with law such positions as may be
of representatives of government, workers and employers for the consideration and
necessary to carry out the objectives of this Code and cause the upgrading of the
adoption of voluntary codes of principles designed to promote industrial peace
salaries of the personnel involved in the Labor Relations System of the Ministry.
based on social justice or to align labor movement relations with established
Funds needed for this purpose shall be provided out of the Special Activities Fund
priorities in economic and social development. In calling such conference, the
appropriated by Batas Pambansa Blg. 80 and from annual appropriations
Secretary of Labor and Employment may consult with accredited representatives of
thereafter. (Incorporated by Batas Pambansa Bilang 130, August 21, 1981).
workers and employers. (As amended by Section 32, Republic Act No. 6715, March
21, 1989).
(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
ART. 276. Government employees. - The terms and conditions of employment of all
implementation of the Collective Bargaining Agreement, including the Arbitrator’s
government employees, including employees of government-owned and controlled
fees, and for such other related purposes to promote and develop voluntary
corporations, shall be governed by the Civil Service Law, rules and regulations.
arbitration. The Board shall administer the Special Voluntary Arbitration Fund in
Their salaries shall be standardized by the National Assembly as provided for in the
accordance with the guidelines it may adopt upon the recommendation of the
New Constitution. However, there shall be no reduction of existing wages, benefits
Council, which guidelines shall be subject to the approval of the Secretary of Labor
and other terms and conditions of employment being enjoyed by them at the time
and Employment. Continuing funds needed for this purpose in the initial yearly
of the adoption of this Code.
amount of fifteen million pesos (P15,000,000.00) shall be provided in the 1989
annual general appropriations acts.
ART. 277. Miscellaneous provisions. - (a) All unions are authorized to collect
reasonable membership fees, union dues, assessments and fines and other
The amount of subsidy in appropriate cases shall be determined by the Board in
contributions for labor education and research, mutual death and hospitalization
accordance with established guidelines issued by it upon the recommendation of
benefits, welfare fund, strike fund and credit and cooperative undertakings. (As
the Council.
amended by Section 33, Republic Act No. 6715, March 21, 1989).

The Fund shall also be utilized for the operation of the Council, the training and
(b) Subject to the constitutional right of workers to security of tenure and their
education of Voluntary Arbitrators, and the Voluntary Arbitration Program.(As
right to be protected against dismissal except for a just and authorized cause and
amended by Section 33, Republic Act No. 6715, March 21, 1989).
without prejudice to the requirement of notice under Article 283 of this Code, the
employer shall furnish the worker whose employment is sought to be terminated a
written notice containing a statement of the causes for termination and shall afford (g) The Ministry shall help promote and gradually develop, with the agreement of
the latter ample opportunity to be heard and to defend himself with the assistance labor organizations and employers, labor-management cooperation programs at
of his representative if he so desires in accordance with company rules and appropriate levels of the enterprise based on the shared responsibility and mutual
regulations promulgated pursuant to guidelines set by the Department of Labor and respect in order to ensure industrial peace and improvement in productivity,
Employment. Any decision taken by the employer shall be without prejudice to the working conditions and the quality of working life. (Incorporated by Batas
right of the worker to contest the validity or legality of his dismissal by filing a Pambansa Bilang 130, August 21, 1981).
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 (h) In establishments where no legitimate labor organization exists, labor-
on the employer. The Secretary of the Department of Labor and Employment may management committees may be formed voluntarily by workers and employers for
suspend the effects of the termination pending resolution of the dispute in the the purpose of promoting industrial peace. The Department of Labor and
 47

Employment shall endeavor to enlighten and educate the workers and employers
on their rights and responsibilities through labor education with emphasis on the Book 6; Post Employment
policy thrusts of this Code. (As amended by Section 33, Republic Act No. 6715,
March 21, 1989).

Title I
(i) To ensure speedy labor justice, the periods provided in this Code within which TERMINATION OF EMPLOYMENT
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 ART. 278. Coverage. - The provisions of this Title shall apply to all establishments
decision or resolution upon the filing of the last pleading or memorandum required or undertakings, whether for profit or not.
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. ART. 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
Upon expiration of the corresponding period, a certification stating why a decision entitled to reinstatement without loss of seniority rights and other privileges and to
or resolution has not been rendered within the said period shall be issued forthwith his full backwages, inclusive of allowances, and to his other benefits or their
by the Chairman of the Commission, the Executive Labor Arbiter, or the Director of monetary equivalent computed from the time his compensation was withheld from
the Bureau of Labor Relations or Med-Arbiter, or the Regional Director, as the case him up to the time of his actual reinstatement. (As amended by Section 34,
may be, and a copy thereof served upon the parties. Republic Act No. 6715, March 21, 1989).

Despite the expiration of the applicable mandatory period, the aforesaid officials ART. 280. Regular and casual employment. - The provisions of written agreement
shall, without prejudice to any liability which may have been incurred as a to the contrary notwithstanding and regardless of the oral agreement of the parties,
consequence thereof, see to it that the case or matter shall be decided or resolved an employment shall be deemed to be regular where the employee has been
without any further delay. (Incorporated by Section 33, Republic Act No. 6715, engaged to perform activities which are usually necessary or desirable in the usual
March 21, 1989). 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.

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.

ART. 281. Probationary employment. - Probationary employment shall not exceed

six (6) 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.

ART. 282. Termination by employer. - An employer may terminate an employment

for any of the following causes:

(a) Serious misconduct or willful disobedience by the employee of the lawful orders
of his employer or representative in connection with his work;

(b) Gross and habitual neglect by the employee of his duties;

 48

(c) Fraud or willful breach by the employee of the trust reposed in him by his 4. Other causes analogous to any of the foregoing.
employer or duly authorized representative;

(d) Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized
ART. 286. When employment not deemed terminated. - The bona-fide suspension
representatives; and
of the operation of a business or undertaking for a period not exceeding six (6)
months, or the fulfillment by the employee of a military or civic duty shall not
(e) Other causes analogous to the foregoing. 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 (1) month from the resumption of
ART. 283. Closure of establishment and reduction of personnel. - The employer
operations of his employer or from his relief from the military or civic duty.
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
Title II
cessation of operation of the establishment or undertaking unless the closing is for
RETIREMENT FROM THE SERVICE
the purpose of circumventing the provisions of this Title, by serving a written notice
on the workers and the Ministry of Labor and Employment at least one (1) month
ART. 287. Retirement. - Any employee may be retired upon reaching the retirement
before the intended date thereof. In case of termination due to the installation of
age established in the collective bargaining agreement or other applicable
labor-saving devices or redundancy, the worker affected thereby shall be entitled to
employment contract.
a separation pay equivalent to at least his one (1) month pay or to at least one (1)
month pay for every year of service, whichever is higher. In case of retrenchment
to prevent losses and in cases of closures or cessation of operations of In case of retirement, the employee shall be entitled to receive such retirement
establishment or undertaking not due to serious business losses or financial benefits as he may have earned under existing laws and any collective bargaining
reverses, the separation pay shall be equivalent to one (1) month pay or at least agreement and other agreements: Provided, however, That an employee’s
one-half (1/2) month pay for every year of service, whichever is higher. A fraction retirement benefits under any collective bargaining and other agreements shall not
of at least six (6) months shall be considered one (1) whole year. be less than those provided therein.

ART. 284. Disease as ground for termination. - An employer may terminate the In the absence of a retirement plan or agreement providing for retirement benefits
services of an employee who has been found to be suffering from any disease and of employees in the establishment, an employee upon reaching the age of sixty
whose continued employment is prohibited by law or is prejudicial to his health as (60) years or more, but not beyond sixty-five (65) years which is hereby declared
well as to the health of his co-employees: Provided, That he is paid separation pay the compulsory retirement age, who has served at least five (5) years in the said
equivalent to at least one (1) month salary or to one-half (1/2) month salary for establishment, may retire and shall be entitled to retirement pay equivalent to at
every year of service, whichever is greater, a fraction of at least six (6) months least one-half (1/2) month salary for every year of service, a fraction of at least six
being considered as one (1) whole year. (6) months being considered as one whole year.

ART. 285. Termination by employee. - (a) An employee may terminate without just Unless the parties provide for broader inclusions, the term ‘one-half (1/2) month
cause the employee-employer relationship by serving a written notice on the salary’ shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay
employer at least one (1) month in advance. The employer upon whom no such and the cash equivalent of not more than five (5) days of service incentive leaves.
notice was served may hold the employee liable for damages.
Retail, service and agricultural establishments or operations employing not more
(b) An employee may put an end to the relationship without serving any notice on than ten (10) employees or workers are exempted from the coverage of this
the employer for any of the following just causes: provision.

1. Serious insult by the employer or his representative on the honor and person of Violation of this provision is hereby declared unlawful and subject to the penal
the employee; provisions under Article 288 of this Code.

2. Inhuman and unbearable treatment accorded the employee by the employer or

his representative;

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
 49

Book 7; Transitory and Final Provisions 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
Title I with the appropriate regional offices of the Department of Labor not later than
PENAL PROVISIONS AND LIABILITIES March 31, 1975; otherwise, they shall forever be barred. The claims shall be
processed and adjudicated in accordance with the law and rules at the time their
causes of action accrued.
ART. 288. Penalties. - Except as otherwise provided in this Code, or unless the acts
complained of hinge on a question of interpretation or implementation of ART. 292. Institution of money claims. - Money claims specified in the immediately
ambiguous provisions of an existing collective bargaining agreement, any violation preceding Article shall be filed before the appropriate entity independently of the
of the provisions of this Code declared to be unlawful or penal in nature shall be criminal action that may be instituted in the proper courts.
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
Pending the final determination of the merits of money claims filed with the
months nor more than three years, or both such fine and imprisonment at the
appropriate entity, no civil action arising from the same cause of action shall be
discretion of the court.
filed with any court. This provision shall not apply to employees compensation case
which shall be processed and determined strictly in accordance with the pertinent
In addition to such penalty, any alien found guilty shall be summarily deported provisions of this Code.
upon completion of service of sentence.

Any provision of law to the contrary notwithstanding, any criminal offense punished Title III
in this Code, shall be under the concurrent jurisdiction of the Municipal or City TRANSITORY AND FINAL PROVISIONS
Courts and the Courts of First Instance. (As amended by Section 3, Batas
Pambansa Bilang 70). ART. 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
ART. 289. Who are liable when committed by other than natural person. - If the the laws in force at the time of their accrual.
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 ART. 294. Secretary of Labor to initiate integration of maternity leave benefits. -
corporation, trust, firm, partnership, association or entity. Within six (6) months after this Code takes effect, the Secretary of Labor shall
initiate such measures as may be necessary for the integration of maternity leave
Title II benefits into the Social Security System, in the case of private employment, and
PRESCRIPTION OF OFFENSES AND CLAIMS the Government Service Insurance System, in the case of public employment.

ART. 290. Offenses. - Offenses penalized under this Code and the rules and ART. 295. Funding of the Overseas Employment Development Board and the
regulations issued pursuant thereto shall prescribe in three (3) years. National Seamen’s Board referred to in Articles 17 and 20, respectively, of this
Code shall initially be funded out of the unprogrammed fund of the Department of
Labor and the National Manpower and Youth Council.
All unfair labor practice arising from Book V shall be filed with the appropriate
agency within one (1) year from accrual of such unfair labor practice; otherwise,
they shall be forever barred. ART. 296. Termination of the workmen’s compensation program. - The Bureau of
Workmen’s Compensation, Workmen’s Compensation Commission, and Workmen’s
Compensation Units in the regional offices of the Department of Labor shall
ART. 291. Money claims. - All money claims arising from employer-employee continue to exercise the functions and the respective jurisdictions over workmen’s
relations accruing during the effectivity of this Code shall be filed within three (3) compensation cases vested upon them by Act No. 3428, as amended, otherwise
years from the time the cause of action accrued; otherwise they shall be forever known as the Workmen’s Compensation Act until March 31, 1976. Likewise, the
barred. term of office of incumbent members of the Workmen’s Compensation Commission,
including its Chairman and any commissioner deemed retired as of December 31,
All money claims accruing prior to the effectivity of this Code shall be filed with the 1975, as well as the present employees and officials of the Bureau of Workmen’s
appropriate entities established under this Code within one (1) year from the date Compensation, Workmen’s Compensation Commission and the Workmen’s
of effectivity, and shall be processed or determined in accordance with the Compensation Units shall continue up to that date. Thereafter, said offices shall be
implementing rules and regulations of the Code; otherwise, they shall be forever considered abolished and all officials and personnel thereof shall be transferred to
barred. and mandatorily absorbed by the Department of Labor, subject to Presidential
Decree No. 6, Letters of Instructions Nos. 14 and 14-A and the Civil Service Law
and rules.
 50

Such amount as may be necessary to cover the operational expenses of the Bureau this code, or the application of such provision or part to other persons or
of Workmen’s Compensation and the Workmen’s Compensation Units, including the circumstances, shall not be affected thereby.
salaries of incumbent personnel for the period up to March 31, 1976 shall be
appropriated from the unprogrammed funds of the Department of Labor.
ART. 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,
ART. 297. Continuation of insurance policies and indemnity bonds. - All workmen’s decrees, rules and regulations inconsistent herewith are likewise repealed.
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
Done in the City of Manila, this 1st day of May in the year of our Lord, nineteen
expiration dates of such policies or the lapse of the period of such bonds, as the
hundred and seventy four.
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.
(Sgd.) FERDINAND E. MARCOS
President, Republic of the Philippines
ART. 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.

ART. 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 divisions 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 or the Office of the President of the Philippines as of the date of effectivity of
this Code shall remain under their respective jurisdictions 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 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 and State Insurance Fund.

ART. 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.

ART. 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