Presidential Decree No.

442 of 1974, for every distinct article likewise

acknowledges Supreme Court
as Amended and Renumbered
decisions starting February
A Decree Instituting a Labor Code 2013 that refer to renumbered
Thereby Revising and Consolidating provisions. Examples
Labor and Social Laws to Afford include Pepsi-Cola
Protection to Labor, Promote v. Molon which refers to the old
Art. 283 as Art. 297
Employment and Human Resources
"renumbered pursuant to R.A.
Development and Insure Industrial
No. 10151" and Alvarez v. GTB,
Peace Based on Social Justice
Inc. which refers to "Article 293
Notes (formerly Article 279)."
 This work retains the text of
the Labor Code of the
Philippines in the original or in Preliminary Title
its latest legislative amendment
or revision. CHAPTER I General Provisions
 The current Department of ARTICLE 1. Name of Decree. — This
Labor and Employment (DOLE) decree shall be known as the "Labor
may be referred to in some Code of the Philippines."
provisions as:
 Ministry of Labor and
ARTICLE 2. Date of Effectivity. — This
Employment Code shall take effect six (6) months
 Ministry of Labor
after its promulgation.
 Department of Labor
 Similarly, in line with Sec. 30 ARTICLE 3. Declaration of Basic Policy.
of E.O. No. 126, "Reorganizing — The State shall afford protection to
the Ministry of Labor and labor, promote full employment, ensure
Employment and for Other equal work opportunities regardless of
Purposes" (1987), the titles of sex, race or creed, and regulate the
Minister, Deputy Minister, and relations between workers and
Assistant Minister shall be employers. The State shall assure the
understood to refer to rights of workers to self-organization,
Secretary, Undersecretary, and collective bargaining, security of tenure,
Assistant Secretary, and just and humane conditions of work.
respectively.
 The Project Team decided to ARTICLE 4. Construction in Favor of
adopt new numerical Labor. — All doubts in the
designations for provisions implementation and interpretation of the
previously annexed or inserted provisions of this Code, including its
to the Code, e.g., Articles 208-A, implementing rules and regulations,
238-A, etc. Old numerical shall be resolved in favor of labor.
designations are enclosed in
brackets: "[ ]". Provisions ARTICLE 5. Rules and Regulations. —
expressly deleted by statutes The Department of Labor and other
have also been removed from government agencies charged with the
the main text but are retained in administration and enforcement of this
the footnotes for reference Code or any of its parts shall promulgate
and/or educational purposes. the necessary implementing rules and
 The decision to designate a regulations. Such rules and regulations
separate numerical designation shall become effective fifteen (15) days
after announcement of their adoption in The total cost of the land, including
newspapers of general circulation. interest at the rate of six percent (6%)
per annum, shall be paid by the tenant in
ARTICLE 6. Applicability. — All rights fifteen (15) years of fifteen (15) equal
and benefits granted to workers under annual amortizations.
this Code shall, except as may otherwise
be provided herein, apply alike to all In case of default, the amortization due
workers, whether agricultural or non- shall be paid by the farmers' cooperative
agricultural. in which the defaulting tenant-farmer is
a member, with the cooperative having a
CHAPTER II Emancipation of right of recourse against him.
Tenants
The government shall guarantee such
ARTICLE 7. Statement of Objectives. — amortizations with shares of stock in
Inasmuch as the old concept of land government-owned and government-
ownership by a few has spawned valid controlled corporations.
and legitimate grievances that gave rise
to violent conflict and social tension and ARTICLE 10. Conditions of Ownership.
the redress of such legitimate grievances — No title to the land acquired by the
being one of the fundamental objectives tenant-farmer under Presidential Decree
of the New Society, it has become No. 27 shall be actually issued to him
imperative to start reformation with the unless and until he has become a full-
emancipation of the tiller of the soil from fledged member of a duly recognized
his bondage. farmers' cooperative.

ARTICLE 8. Transfer of Lands to Tenant- Title to the land acquired pursuant

Workers. — Being a vital part of the to Presidential Decree No. 27 or the
labor force, tenant-farmers on private Land Reform Program of the
agricultural lands primarily devoted to Government shall not be transferable
rice and corn under a system of share except by hereditary succession or to the
crop or lease tenancy whether classified Government in accordance with the
as landed estate or not shall be deemed provisions of Presidential Decree No. 27,
owner of a portion constituting a family- the Code of Agrarian Reforms and other
size farm of five (5) hectares if not existing laws and regulations.
irrigated and three (3) hectares if
irrigated. ARTICLE 11. Implementing Agency. —
The Department of Agrarian Reform
In all cases, the landowner may retain an shall promulgate the necessary rules and
area of not more than seven (7) hectares regulations to implement the provisions
if such landowner is cultivating such of this Chapter.
area or will now cultivate it.
ARTICLE 12. Statement of Objectives. —
ARTICLE 9. Determination of Land It is the policy of the State:
Value. — For the purpose of determining
the cost of the land to be transferred to a) To promote and maintain a state of
the tenant-farmer, the value of the land full employment through improved
shall be equivalent to two and one-half manpower training, allocation and
(2-1/2) times the average harvest of utilization;
three (3) normal crop years immediately
preceding the promulgation b) To protect every citizen desiring to
of Presidential Decree No. 27 on October work locally or overseas by securing for
21, 1972.
him the best possible terms and engaged in recruitment and placement
conditions of employment; of workers for a fee which is charged,
directly or indirectly, from the workers
c) To facilitate a free choice of available or employers or both.
employment by persons seeking work in
conformity with the national interest; (d) "License" means a document issued
by the Department of Labor authorizing
d) To facilitate and regulate the a person or entity to operate a private
movement of workers in conformity with employment agency.
the national interest;
(e) "Private recruitment entity" means
e) To regulate the employment of aliens, any person or association engaged in the
including the establishment of a recruitment and placement of workers,
registration and/or work permit system; locally or overseas, without charging,
directly or indirectly, any fee from the
f) To strengthen the network of public workers or employers.
employment offices and rationalize the
participation of the private sector in the (f) "Authority" means a document issued
recruitment and placement of workers, by the Department of Labor authorizing
locally and overseas, to serve national a person or association to engage in
development objectives; recruitment and placement activities as
a private recruitment entity.
g) To insure careful selection of Filipino
workers for overseas employment in (g) "Seaman" means any person
order to protect the good name of the employed in a vessel engaged in
Philippines abroad. maritime navigation.
TITLE I Recruitment and Placement of
(h) "Overseas employment" means
Workers
employment of a worker outside the
CHAPTER I General Provisions Philippines.

ARTICLE 13. Definitions. — (i) "Emigrant" means any person, worker

or otherwise, who emigrates to a foreign
(a) "Worker" means any member of the country by virtue of an immigrant visa or
labor force, whether employed or resident permit or its equivalent in the
unemployed. country of destination.

(b) "Recruitment and placement" refers ARTICLE 14. Employment Promotion. —

to any act of canvassing, enlisting, The Secretary of Labor shall have the
contracting, transporting, utilizing, power and authority:
hiring or procuring workers, and
includes referrals, contract services, (a) To organize and establish new
promising or advertising for employment offices in addition to the
employment, locally or abroad, whether existing employment offices under the
for profit or not: Provided, That any Department of Labor as the need arises;
person or entity which, in any manner, (b) To organize and establish a
offers or promises for a fee, employment nationwide job clearance and
to two or more persons shall be deemed information system to inform applicants
engaged in recruitment and placement. registering with a particular employment
(c) "Private fee-charging employment office of job opportunities in other parts
agency" means any person or entity of the country as well as job
opportunities abroad;
(c) To develop and organize a program 7. To maintain a central registry of skills,
that will facilitate occupational, except seamen.
industrial and geographical mobility of
labor and provide assistance in the (b) The regional offices of the Ministry of
relocation of workers from one area to Labor shall have the original and
another; and exclusive jurisdiction over all matters or
cases involving employer-employee
(d) To require any person, relations including money claims, arising
establishment, organization or out of or by virtue of any law or
institution to submit such employment contracts involving Filipino workers for
information as may be prescribed by the overseas employment except
Secretary of Labor. seamen: Provided,That the Bureau of
Employment Services may, in the case of
ARTICLE 15. Bureau of Employment the National Capital Region, exercise
Services. — (a) The Bureau of such power, whenever the Minister of
Employment Services shall be primarily Labor deems it appropriate. The
responsible for developing and decisions of the regional offices of the
monitoring a comprehensive Bureau of Employment Services, if so
employment program. It shall have the authorized by the Minister of Labor as
power and duty: provided in this Article, shall be
appealable to the National Labor
1. To formulate and develop plans and Relations Commission upon the same
programs to implement the employment grounds provided in Article 223 hereof.
promotion objectives of this Title; The decisions of the National Labor
2. To establish and maintain a Relations Commission shall be final and
registration and/or licensing system to unappealable.
regulate private sector participation in (c) The Minister of Labor shall have the
the recruitment and placement of power to impose and collect fees based
workers, locally and overseas, and to on rates recommended by the Bureau of
secure the best possible terms and Employment Services. Such fees shall be
conditions of employment for Filipino deposited in the National Treasury as a
contract workers and compliance special account of the General Fund, for
therewith under such rules and the promotion of the objectives of the
regulations as may be issued by the Bureau of Employment Services, subject
Minister of Labor; to the provisions of Section 40
3. To formulate and develop employment of Presidential Decree No. 1177.
programs designed to benefit ARTICLE 16. Private Recruitment. —
disadvantaged groups and communities; Except as provided in Chapter II of this
4. To establish and maintain a Title, no person or entity other than the
registration and/or work permit system public employment offices, shall engage
to regulate the employment of aliens; in the recruitment and placement of
workers.
5. To develop a labor market information
system in aid of proper manpower and ARTICLE 17. Overseas Employment
development planning; Development Board. — An Overseas
Employment Development Board is
6. To develop a responsive vocational hereby created to undertake, in
guidance and testing system in aid of cooperation with relevant entities and
proper human resources allocation; and agencies, a systematic program for
overseas employment of Filipino workers
in excess of domestic needs and to (b) The office shall, among others,
protect their rights to fair and equitable promote the well-being of emigrants and
employment practices. It shall have the maintain their close link to the homeland
power and duty: by:

1. To promote the overseas employment 1) serving as a liaison with migrant

of Filipino workers through a communities;
comprehensive market promotion and
development program; 2) provision of welfare and cultural
services;
2. To secure the best possible terms and
conditions of employment of Filipino 3) promote and facilitate re-integration
contract workers on a government-to- of migrants into the national
government basis and to ensure mainstream;
compliance therewith;
4) promote economic; political and
3. To recruit and place workers for cultural ties with the communities; and
overseas employment on a government-
to-government arrangement and in such 5) generally to undertake such activities
other sectors as policy may dictate; and as may be appropriate to enhance such
cooperative links.
4. To act as secretariat for the Board of
Trustees of the Welfare and Training ARTICLE 20. National Seamen Board. —
Fund for Overseas Workers. (a) A National Seamen Board is hereby
created which shall develop and
ARTICLE 18. Ban on Direct-Hiring. — No maintain a comprehensive program for
employer may hire a Filipino worker for Filipino seamen employed overseas. It
overseas employment except through the shall have the power and duty:
Boards and entities authorized by the
Secretary of Labor. Direct-hiring by 1. To provide free placement services for
members of the diplomatic corps, seamen;
international organizations and such 2. To regulate and supervise the
other employers as may be allowed by activities of agents or representatives of
the Secretary of Labor is exempted from shipping companies in the hiring of
this provision. seamen for overseas employment and
ARTICLE 19. Office of Emigrant Affairs. secure the best possible terms of
— (a) Pursuant to the national policy to employment for contract seamen
maintain close ties with Filipino migrant workers and secure compliance
communities and promote their welfare therewith;
as well as establish a data bank in aid of 3. To maintain a complete registry of all
national manpower policy formulation, Filipino seamen.
an Office of Emigrant Affairs is hereby
created in the Department of Labor. The (b) The Board shall have original and
Office shall be a unit at the Office of the exclusive jurisdiction over all matters or
Secretary and shall initially be manned cases including money claims, involving
and operated by such personnel and employer-employee relations, arising out
through such funding as are available of or by virtue of any law or contracts
within the Department and its attached involving Filipino seamen for overseas
agencies. Thereafter, its appropriation employment. The decisions of the Board
shall be made part of the regular shall be appealable to the National
General Appropriations Decree. Labor Relations Commission upon the
same grounds provided in Article 223 regulations prescribed by the Secretary
hereof. The decisions of the National of Labor.
Labor Relations Commission shall be
final and unappealable. ARTICLE 23. Composition of the Boards.
— (a) The OEDB shall be composed of
ARTICLE 21. Foreign Service Role and the Secretary of Labor and Employment
Participation. — To provide ample as Chairman, the Undersecretary of
protection to Filipino workers abroad, Labor as Vice-Chairman, and a
the labor attachés, the labor reporting representative each of the Department
officers duly designated by the Secretary of Foreign Affairs, the Department of
of Labor and the Philippine diplomatic or National Defense, the Central Bank, the
consular officials concerned shall, even Department of Education, Culture and
without prior instruction or advice from Sports, the National Manpower and
the home office, exercise the power and Youth Council, the Bureau of
duty: Employment Services, a workers'
organization and an employers'
(a) To provide all Filipino workers within organization and the Executive Director
their jurisdiction assistance on all of the OEDB as members.
matters arising out of employment;
(b) The National Seamen Board shall be
(b) To insure that Filipino workers are composed of the Secretary of Labor and
not exploited or discriminated against; Employments Chairman, the
Undersecretary of Labor as Vice-
(c) To verify and certify as requisite to Chairman, the Commandant of the
authentication that the terms and Philippine Coast Guard, and a
conditions of employment in contracts representative each of the Department
involving Filipino workers are in of Foreign Affairs, the Department of
accordance with the Labor Code and Education, Culture and Sports, the
rules and regulations of the Overseas Central Bank, the Maritime Industry
Employment Development Board and Authority, the Bureau of Employment
National Seamen Board; Services, a national shipping association
(d) To make continuing studies or and the Executive Director of the NSB as
researches and recommendations on the members.
various aspects of the employment The members of the Boards shall receive
market within their jurisdiction; allowances to be determined by the
(e) To gather and analyze information on Board which shall not be more than
the employment situation and its P2,000.00 per month.
probable trends, and to make such (c) The Boards shall be attached to the
information available; and Department of Labor for policy and
(f) To perform such other duties as may program coordination. They shall each
be required of them from time to time. be assisted by a Secretariat headed by
an Executive Director who shall be a
ARTICLE 22. Mandatory Remittance of Filipino citizen with sufficient experience
Foreign Exchange Earnings. — It shall in manpower administration, including
be mandatory for all Filipino workers overseas employment activities. The
abroad to remit a portion of their foreign Executive Director shall be appointed by
exchange earnings to their families, the President of the Philippines upon the
dependents, and/or beneficiaries in the recommendation of the Secretary of
country in accordance with rules and Labor and shall receive an annual salary
as fixed by law. The Secretary of Labor
shall appoint the other members of the be permitted to participate in the
Secretariat. recruitment and placement of workers,
locally or overseas.
(d) The Auditor General shall appoint his
representative to the Boards to audit ARTICLE 28. Capitalization. — All
their respective accounts in accordance applicants for authority to hire or
with auditing laws and pertinent rules renewal of license to recruit are required
and regulations. to have such substantial capitalization as
determined by the Secretary of Labor.
ARTICLE 24. Boards to Issue Rules and
Collect Fees. — The Boards shall issue ARTICLE 29. Non-transferability of
appropriate rules and regulations to License or Authority. — No license or
carry out their functions. They shall have authority shall be used directly or
the power to impose and collect fees indirectly by any person other than the
from employers concerned, which shall one in whose favor it was issued or at
be deposited in the respective accounts any place other than that stated in the
of said Boards and be used by them license or authority be transferred,
exclusively to promote their objectives. conveyed or assigned to any other
person or entity. Any transfer of
CHAPTER II Regulation of business address, appointment or
Recruitment and Placement designation of any agent or
Activities representative including the
establishment of additional offices
ARTICLE 25. Private Sector anywhere shall be subject to the prior
Participation in the Recruitment and approval of the Department of Labor.
Placement of Workers. — Pursuant to
national development objectives and in ARTICLE 30. Registration Fees. — The
order to harness and maximize the use Secretary of Labor shall promulgate a
of private sector resources and initiative schedule of fees for the registration of
in the development and implementation all applicants for license or authority.
of a comprehensive employment
program, the private employment sector ARTICLE 31. Bonds. — All applicants for
shall participate in the recruitment and license or authority shall post such cash
placement of workers, locally and and surety bonds as determined by the
overseas, under such guidelines, rules Secretary of Labor to guarantee
and regulations as may be issued by the compliance with prescribed recruitment
Secretary of Labor. procedures, rules and regulations, and
terms and conditions of employment as
ARTICLE 26. Travel Agencies Prohibited may be appropriate.
to Recruit. — Travel agencies and sales
agencies of airline companies are ARTICLE 32. Fees to be Paid by
prohibited from engaging in the business Workers. — Any person applying with a
of recruitment and placement of workers private fee-charging employment agency
for overseas employment whether for for employment assistance shall not be
profit or not. charged any fee until he has obtained
employment through its efforts or has
ARTICLE 27. Citizenship Requirement. actually commenced employment. Such
— Only Filipino citizens or corporations, fee shall be always covered with the
partnerships or entities at least seventy- appropriate receipt clearly showing the
five percent (75%) of the authorized and amount paid. The Secretary of Labor
voting capital stock of which is owned shall promulgate a schedule of allowable
and controlled by Filipino citizens shall fees.
ARTICLE 33. Reports on Employment (g) To obstruct or attempt to obstruct
Status. — Whenever the public interest inspection by the Secretary of Labor or
requires, the Secretary of Labor may by his duly authorized representatives;
direct all persons or entities within the
coverage of this Title to submit a report (h) To fail to file reports on the status of
on the status of employment, including employment, placement vacancies,
job vacancies, details of job requisitions, remittance of foreign exchange earnings,
separation from jobs, wages, other terms separation from jobs, departures and
and conditions and other employment such other matters or information as
data. may be required by the Secretary of
Labor;
ARTICLE 34. Prohibited Practices. — It
shall be unlawful for any individual, (i) To substitute or alter employment
entity, licensee, or holder of authority: contracts approved and verified by the
Department of Labor from the time of
(a) To charge or accept, directly or actual signing thereof by the parties up
indirectly, any amount greater than that to and including the periods of
specified in the schedule of allowable expiration of the same without the
fees prescribed by the Secretary of approval of the Secretary of Labor;
Labor, or to make a worker pay any
amount greater than that actually (j) To become an officer or member of
received by him as a loan or advance; the Board of any corporation engaged in
travel agency or to be engaged directly
(b) To furnish or publish any false notice or indirectly in the management of a
or information or document in relation to travel agency; and
recruitment or employment;
(k) To withhold or deny travel documents
(c) To give any false notice, testimony, from applicant workers before departure
information or document or commit any for monetary or financial considerations
act of misrepresentation for the purpose other than those authorized under this
of securing a license or authority under Code and its implementing rules and
this Code; regulations.

(d) To induce or attempt to induce a ARTICLE 35. Suspension and/or

worker already employed to quit his Cancellation of License or Authority. —
employment in order to offer him to The Minister of Labor shall have the
another unless the transfer is designed power to suspend or cancel any license
to liberate the worker from oppressive or authority to recruit employees for
terms and conditions of employment; overseas employment for violation of
rules and regulations issued by the
(e) To influence or to attempt to Ministry of Labor, the Overseas
influence any person or entity not to Employment Development Board, or for
employ any worker who has not applied violation of the provisions of this and
for employment through his agency; other applicable laws, General Orders
and Letters of Instructions.
(f) To engage in the recruitment or
placement of workers in jobs harmful to CHAPTER III Miscellaneous
public health or morality or to the Provisions
dignity of the Republic of the
Philippines; ARTICLE 36. Regulatory Power. — The
Secretary of Labor shall have the power
to restrict and regulate the recruitment
and placement activities of all agencies non-licensee or non-holder of authority if
within the coverage of this Title and is after investigation it is determined that
hereby authorized to issue orders and his activities constitute a danger to
promulgate rules and regulations to national security and public order or will
carry out the objectives and implement lead to further exploitation of job-
the provisions of this Title. seekers. The Secretary shall order the
search of the office or premises and
ARTICLE 37. Visitorial Power. — The seizure of documents, paraphernalia,
Secretary of Labor or his duly authorized properties and other implements used in
representatives may, at any time, inspect illegal recruitment activities and the
the premises, books of accounts and closure of companies, establishments
records of any person or entity covered and entities found to be engaged in the
by this Title, require it to submit reports recruitment of workers for overseas
regularly on prescribed forms, and act employment, without having been
on violation of any provisions of this licensed or authorized to do so.
Title.
ARTICLE 39. Penalties. — (a) The
ARTICLE 38. Illegal Recruitment. — (a) penalty of life imprisonment and a fine of
Any recruitment activities, including the One Hundred Thousand Pesos
prohibited practices enumerated under (P100,000.00) shall be imposed if illegal
Article 34 of this Code, to be undertaken recruitment constitutes economic
by non-licensees or non-holders of sabotage as defined herein;
authority, shall be deemed illegal and
punishable under Article 39 of this Code. (b) Any licensee or holder of authority
The Department of Labor and found violating or causing another to
Employment or any law enforcement violate any provision of this Title or its
officer may initiate complaints under this implementing rules and regulations
Article. shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than
(b) Illegal recruitment when committed two years nor more than five years or a
by a syndicate or in large scale shall be fine of not less than P10,000 nor more
considered an offense involving than P50,000, or both such
economic sabotage and shall be imprisonment and fine, at the discretion
penalized in accordance with Article 39 of the court;
hereof.
(c) Any person who is neither a licensee
Illegal recruitment is deemed committed nor a holder of authority under this Title
by a syndicate if carried out by a group found violating any provision thereof or
of three (3) or more persons conspiring its implementing rules and regulations
and/or confederating with one another in shall, upon conviction thereof, suffer the
carrying out any unlawful or illegal penalty of imprisonment of not less than
transaction, enterprise or scheme four years nor more than eight years or
defined under the first paragraph hereof. a fine of not less than P20,000 nor more
Illegal recruitment is deemed committed than P100,000 or both such
in large scale if committed against three imprisonment and fine, at the discretion
(3) or more persons individually or as a of the court;
group.
(d) If the offender is a corporation,
(c) The Secretary of Labor and partnership, association or entity, the
Employment or his duly authorized penalty shall be imposed upon the officer
representatives shall have the power to or officers of the corporation,
cause the arrest and detention of such partnership, association or entity
responsible for violation; and if such (b) Any non-resident alien who shall take
officer is an alien, he shall, in addition to up employment in violation of the
the penalties herein prescribed, be provision of this Title and its
deported without further proceedings; implementing rules and regulations shall
be punished in accordance with the
(e) In every case, conviction shall cause provisions of Articles 289 and 290 of the
and carry the automatic revocation of Labor Code.
the license or authority and all the
permits and privileges granted to such In addition, the alien worker shall be
person or entity under this Title, and the subject to deportation after service of his
forfeiture of the cash and surety bonds sentence.
in favor of the Overseas Employment
Development Board or the National ARTICLE 42. Submission of List. — Any
Seamen Board, as the case may be, both employer employing non-resident foreign
of which are authorized to use the same nationals on the effective date of this
exclusively to promote their objectives. Code shall submit a list of such nationals
to the Secretary of Labor within thirty
TITLE II Employment of Non-Resident (30) days after such date indicating their
Aliens names, citizenship, foreign and local
addresses, nature of employment and
ARTICLE 40. Employment Permit of
status of stay in the country. The
Non-Resident Aliens. — Any alien
Secretary of Labor shall then determine
seeking admission to the Philippines for
if they are entitled to an employment
employment purposes and any domestic
permit.
or foreign employer who desires to
engage an alien for employment in the
TITLE I National Manpower
Philippines shall obtain an employment
Development Program
permit from the Department of Labor.
CHAPTER I National Policies and
The employment permit may be issued to
Administrative Machinery for Their
a non-resident alien or to the applicant
Implementation
employer after a determination of the
non-availability of a person in the ARTICLE 43. Statement of Objective. —
Philippines who is competent, able and It is the objective of this Title to develop
willing at the time of application to human resources, establish training
perform the services for which the alien institutions, and formulate such plans
is desired. and programs as will ensure efficient
allocation, development and utilization
For an enterprise registered in preferred
of the nation's manpower and thereby
areas of investments, said employment
promote employment and accelerate
permit may be issued upon
economic and social growth.
recommendation of the government
agency charged with the supervision of ARTICLE 44. Definitions. — As used in
said registered enterprise. this Title:
ARTICLE 41. Prohibition against (a) "Manpower" shall mean that portion
Transfer of Employment. — (a) After the of the nation's population which has
issuance of an employment permit, the actual or potential capability to
alien shall not transfer to another job or contribute directly to the production of
change his employer without prior goods and services.
approval of the Secretary of Labor.
(b) "Entrepreneurship" shall mean Government or the private sector to
training for self-employment or assisting assist in this effort.
individual or small industries within the
purview of this Title. ARTICLE 47. National Manpower Skills
Center. — The Council shall establish a
ARTICLE 45. National Manpower and National Manpower Skills Center and
Youth Council; Composition. — To carry regional and local training centers for
out the objectives of this Title, the the purpose of promoting the
National Manpower and Youth Council, development of skills. The centers shall
which is attached to the Department of be administered and operated under
Labor for policy and program such rules and regulations as may be
coordination and hereinafter referred to established by the Council.
as the Council, shall be composed of the
Secretary of Labor as ex- ARTICLE 48. Establishment and
officio chairman, the Secretary of Formulation of Skills Standards. —
Education and Culture as ex-officio vice- There shall be national skills standards
chairman, and as ex-officio members, the for industry trades to be established by
Secretary of Economic Planning, the the Council in consultation with
Secretary of Natural Resources, the employers' and workers' organizations
Chairman of the Civil Service and appropriate government authorities.
Commission, the Secretary of Social The Council shall thereafter administer
Welfare, the Secretary of Local the national skills standards.
Government, the Secretary of Science
and Technology, the Secretary of Trade ARTICLE 49. Administration of Training
and Industry and the Director-General of Programs. — The Council shall provide,
the Council. The Director General shall through the Secretariat, instructor
have no vote. training, entrepreneurship development,
training in vocations, trades and other
In addition, the President shall appoint fields of employment, and assist any
the following members from the private employer or organization in training
sector: two (2) representatives of schemes designed to attain its objectives
national organizations of employers; two under rules and regulations which the
(2) representatives of national workers' Council shall establish for this purpose.
organizations; and one representative of
national family and youth organizations, The Council shall exercise, through the
each for a term of three (3) years. Secretariat, authority and jurisdiction
over, and administer, on-going technical
ARTICLE 46. National Manpower Plan. assistance programs and/or grants-in-aid
— The Council shall formulate a long- for manpower and youth development
term national manpower plan for the including those which may be entered
optimum allocation, development and into between the Government of the
utilization of manpower for employment, Philippines and international and foreign
entrepreneurship and economic and organizations and nations, as well as
social growth. This manpower plan shall, persons and organizations in the
after adoption by the Council, be Philippines.
updated annually and submitted to the
President for his approval. Thereafter, it In order to integrate the national
shall be the controlling plan for the manpower development efforts, all
development of manpower resources for manpower training schemes as provided
the entire country in accordance with for in this Code shall be coordinated
the national development plan. The with the Council, particularly those
Council shall call upon any agency of the having to do with the setting of skills
standards. For this purpose, existing and up-to-date systemm of employment
manpower training programs in the information.
government and in the private sector
shall be reported to the Council which ARTICLE 52. Incentive Scheme. — An
may regulate such programs to make additional deduction from taxable
them conform with national development income of one-half (1/2) of the value of
programs. labor training expenses incurred for
development programs shall be granted
This Article shall not include to the person or enterprise concerned
apprentices, learners and handicapped provided that such development
workers as governed by appropriate programs, other than apprenticeship,
provisions of this Code. are approved by the Council and the
deduction does not exceed ten percent
ARTICLE 50. Industry Boards. — The (10%) of the direct labor wage.
Council shall establish industry boards
to assist in the establishment of There shall be a review of the said
manpower development schemes, trades scheme two years after its
and skills standards and such other implementation.
functions as will provide direct
participation of employers and workers ARTICLE 53. Council Secretariat. — The
in the fulfillment of the Council's Council shall have a Secretariat headed
objectives, in accordance with guidelines by a Director-General who shall be
to be established by the Council and in assisted by a Deputy Director-General,
consultation with the National Economic both of whom shall be career
and Development Authority. administrators appointed by the
President of the Philippines on
The maintenance and operations of the recommendation of the Secretary of
industry boards shall be financed Labor. The Secretariat shall be under
through a funding scheme under such the administrative supervision of the
rates of fees and manners of collection Secretary of Labor and shall have an
and disbursements as may be Office of Manpower Planning and
determined by the Council. Development, an Office of Vocational
Preparation, a National Manpower Skills
ARTICLE 51. Employment Service Center, regional manpower development
Training Functions. — The Council shall offices and such other offices as may be
utilize the employment service of the necessary.
Department of Labor for the placement
of its graduates. The Bureau of The Director-General shall have the rank
Employment Services shall render and emoluments of an undersecretary
assistance to the Council in the and shall serve for a term of ten (10)
measurement of unemployment and years. The Executive-Directors of the
underemployment, conduct of local Office of Manpower Planning and
manpower resource surveys and Development, the Office of Vocational
occupational studies including an Preparation and the National Manpower
inventory of the labor force, Skills Center shall have the rank and
establishment and maintenance without emoluments of a bureau director and
charge of a national register of shall be subject to Civil Service Law,
technicians who have successfully rules and regulations. The Director-
completed a training program under this General, Deputy Director-General and
Act, and skilled manpower including its Executive Directors shall be natural-born
publication, maintenance of an adequate citizens, between thirty and fifty years of
age at the time of appointment, with a
master's degree or its equivalent, and 8. To enter into agreements to
experience in national planning and implement approved plans and programs
development of human resources. The and perform any and all such acts as will
Executive Director of the National fulfill the objectives of this Code as well
Manpower Skills Center shall, in as ensure the efficient performance of
addition to the foregoing qualifications, the functions of the Council; and
have undergone training in center
management. Executive Directors shall 9. To perform such other functions as
be appointed by the President on the may be authorized by the Council.
recommendations of the Secretary of
Labor and Employment. ARTICLE 54. Regional Manpower
Development Offices. — The Council
The Director-General shall appoint such shall create regional manpower
personnel necessary to carry out the development offices which shall
objectives, policies and functions of the determine the manpower needs of the
Council subject to Civil Service rules. industry, agriculture and other sectors of
The regular professional and technical the economy within their respective
personnel shall be exempt from WAPCO jurisdictions; provide the Council's
rules and regulations. central planners with the data for
updating the national manpower plan;
The Secretariat shall have the following recommend programs for the regional
functions and responsibilities: level agencies engaged in manpower and
youth development within the policies
1. To prepare and recommend the formulated by the Council; and
manpower plan for approval by the administer and supervise Secretariat
Council; training programs within the region and
perform such other functions as may be
2. To recommend allocation of resources authorized by the Council.
for the implementation of the manpower
plan as approved by the Council; ARTICLE 55. Consultants and Technical
Assistance, Publication, and Research. —
3. To carry out the manpower plan as In pursuing its objectives, the Council is
the implementing arm of the Council; authorized to set aside a portion of its
4. To effect the efficient performance of appropriation for the hiring of the
the functions of the Council and the services of qualified consultants, and/or
achievement of the objectives of this private organizations for research work
Title; and publication. It shall avail itself of the
services of the Government as may be
5. To determine specific allocation of required.
resources for the projects to be
undertaken pursuant to approved ARTICLE 56. Rules and Regulations. —
manpower plans; The Council shall define its broad
functions and issue appropriate rules
6. To submit to the Council periodic and regulations necessary to implement
reports on progress and accomplishment the provision of this Code.
of work programs; TITLE II Training and Employment of
Special Workers
7. To prepare for approval by the
Council an annual report to the CHAPTER I Apprentices
President on plans, programs and
projects on manpower and out-of-school ARTICLE 57. Statement of Objectives. —
youth development; This Title aims:
1. To help meet the demand of the appropriate educational requirements
economy for trained manpower; for different occupations.

2. To establish a national apprenticeship ARTICLE 60. Employment of

program through the participation of Apprentices. — Only employers in the
employers, workers and government and highly technical industries may employ
non-government agencies; and apprentices and only in apprenticeable
occupations approved by the Minister of
3. To establish apprenticeship standards Labor and Employment.
for the protection of apprentices.
ARTICLE 61. Contents of Apprenticeship
ARTICLE 58. Definition of Terms. — As Agreements. — Apprenticeship
used in this Title: agreements, including wage rates of
apprentices, shall conform to the rules
(a) "Apprenticeship" means practical issued by the Minister of Labor and
training on the job supplemented by Employment. The period of
related theoretical instruction. apprenticeship shall not exceed six
(b) An "apprentice" is a worker who is months. Apprenticeship agreements
covered by a written apprenticeship providing for wage rates below the legal
agreement with an individual employer minimum wage, which in no case shall
or any of the entities recognized under start below 75 percent of the applicable
this Chapter. minimum wage, may be entered into
only in accordance with apprenticeship
(c) An "apprenticeable programs duly approved by the Minister
occupation" means any trade, form of of Labor and Employment. The Ministry
employment or occupation which shall develop standard model programs
requires more than three (3) months of of apprenticeship.
practical training on the job
supplemented by related theoretical ARTICLE 62. Signing of Apprenticeship
instruction. Agreement. — Every apprenticeship
agreement shall be signed by the
(d) "Apprenticeship agreement" is an employer or his agent, or by an
employment contract wherein the authorized representative of any of the
employer binds himself to train the recognized organizations, associations or
apprentice and the apprentice in turn groups and by the apprentice.
accepts the terms of training.
An apprenticeship agreement with a
ARTICLE 59. Qualifications of minor shall be signed in his behalf by his
Apprentice. — To qualify as an parent or guardian or, if the latter is not
apprentice, a person shall: available, by an authorized
representative of the Department of
(a) Be at least fourteen (14) years of age; Labor, and the same shall be binding
during its lifetime.
(b) Possess vocational aptitude and
capacity for appropriate tests; and Every apprenticeship agreement entered
into under this Title shall be ratified by
(c) Possess the ability to comprehend the appropriate apprenticeship
and follow oral and written instructions. committees, if any, and a copy thereof
shall be furnished both the employer and
Trade and industry associations may the apprentice.
recommend to the Secretary of Labor
ARTICLE 63. Venue of Apprenticeship representative shall investigate any
Programs. — Any firm, employer, group violation of an apprenticeship agreement
or association, industry organization or pursuant to such rules and regulations
civic group wishing to organize an as may be prescribed by the Secretary of
apprenticeship program may choose Labor and Employment.
from any of the following apprenticeship
schemes as the training venue for ARTICLE 66. Appeal to the Secretary of
apprentice: Labor and Employment. — The decision
of the authorized agency of the
(a) Apprenticeship conducted entirely by Department of Labor and Employment
and within the sponsoring firm, may be appealed by any aggrieved
establishment or entity; person to the Secretary of Labor and
Employment within five (5) days from
(b) Apprenticeship entirely within a receipt of the decision. The decision of
Department of Labor and Employment the Secretary of Labor and Employment
training center or other public training shall be final and executory.
institution; or
ARTICLE 67. Exhaustion of
(c) Initial training in trade fundamentals Administrative Remedies. — No person
in a training center or other institution shall institute any action for the
with subsequent actual work enforcement of any apprenticeship
participation within the sponsoring firm agreement or damages for breach of any
or entity during the final stage of such agreement, unless he has
training. exhausted all available administrative
remedies.
ARTICLE 64. Sponsoring of
Apprenticeship Program. — Any of the ARTICLE 68. Aptitude Testing of
apprenticeship schemes recognized Applicants. — Consonant with the
herein may be undertaken or sponsored minimum qualifications of apprentice-
by a single employer or firm or by a applicants required under this Chapter,
group or association thereof or by a civic employers or entities with duly
organization. Actual training of recognized apprenticeship programs
apprentices may be undertaken: shall have primary responsibility for
providing appropriate aptitude tests in
(a) In the premises of the sponsoring the selection of apprentices. If they do
employer in the case of individual not have adequate facilities for the
apprenticeship programs; purpose, the Department of Labor and
(b) In the premises of one or several Employment shall perform the service
designated firms in the case of programs free of charge.
sponsored by a group or association of ARTICLE 69. Responsibility for
employers or by a civic organization; or Theoretical Instruction. —
(c) In a Department of Labor and Supplementary theoretical instruction to
Employment training center or other apprentices in cases where the program
public training institution. is undertaken in the plant may be done
by the employer. If the latter is not
ARTICLE 65. Investigation of Violation prepared to assume the responsibility,
of Apprenticeship Agreement. — Upon the same may be delegated to an
complaint of any interested person or appropriate government agency.
upon its own initiative, the appropriate
agency of the Department of Labor and ARTICLE 70. Voluntary Organization of
Employment or its authorized Apprenticeship Programs; Exemptions.
— (a) The organization of apprenticeship
program shall be primarily a voluntary
undertaking by employers; CHAPTER II Learners

(b) When national security or particular ARTICLE 73. Learners Defined. —

requirements of economic development Learners are persons hired as trainees in
so demand, the President of the semi-skilled and other industrial
Philippines may require compulsory occupations which are non-
training of apprentices in certain trades, apprenticeable and which may be
occupations, jobs or employment levels learned through practical training on the
where shortage of trained manpower is job in a relatively short period of time
deemed critical as determined by the which shall not exceed three (3) months.
Secretary of Labor and Employment.
Appropriate rules in this connection ARTICLE 74. When Learners may be
shall be promulgated by the Secretary of Hired. — Learners may be employed
Labor and Employment as the need when no experienced workers are
arises; and available, the employment of learners is
necessary to prevent curtailment of
(c) Where services of foreign technicians employment opportunities, and the
are utilized by private companies in employment does not create unfair
apprenticeable trades, said companies competition in terms of labor costs or
are required to set up appropriate impair or lower working standards.
apprenticeship programs.
ARTICLE 75. Learnership Agreement. —
ARTICLE 71. Deductibility of Training Any employer desiring to employ
Costs. — An additional deduction from learners shall enter into a learnership
taxable income of one-half (1/2) of the agreement with them, which agreement
value of labor training expenses incurred shall include:
for developing the productivity and
efficiency of apprentices shall be granted (a) The names and addresses of the
to the person or enterprise organizing an learners;
apprenticeship program: Provided,That
(b) The duration of the learnership
such program is duly recognized by the
period, which shall not exceed three (3)
Department of Labor and
months;
Employment: Provided, further, That
such deduction shall not exceed ten (c) The wages or salary rates of the
(10%) percent of direct labor wage: learners which shall begin at not less
and Provided, finally, That the person or than seventy-five percent (75%) of the
enterprise who wishes to avail himself or applicable minimum wage; and
itself of this incentive should pay his
apprentices the minimum wage. (d) A commitment to employ the learners
if they so desire, as regular employees
ARTICLE 72. Apprentices without upon completion of the learnership. All
Compensation. — The Secretary of Labor learners who have been allowed or
and Employment may authorize the suffered to work during the first two (2)
hiring of apprentices without months shall be deemed regular
compensation whose training on the job employees if training is terminated by
is required by the school or training the employer before the end of the
program curriculum or as requisite for stipulated period through no fault of the
graduation or board examination. learners.
The learnership agreement shall be Labor or his duly authorized
subject to inspection by the Secretary of representative.
Labor and Employment or his duly
authorized representative. ARTICLE 81. Eligibility for
Apprenticeship. — Subject to the
ARTICLE 76. Learners in Piecework. — appropriate provisions of this Code,
Learners employed in piece or incentive- handicapped workers may be hired as
rate jobs during the training period shall apprentices or learners if their handicap
be paid in full for the work done. is not such as to effectively impede the
performance of job operations in the
ARTICLE 77. Penalty Clause. — Any particular occupations for which they
violation of this Chapter or its are hired.
implementing rules and regulations shall
be subject to the general penalty clause TITLE I Working Conditions and Rest
provided for in this Code. Periods
CHAPTER III Handicapped Workers CHAPTER I Hours of Work
ARTICLE 78. Definition. — Handicapped ARTICLE 82. Coverage. — The
workers are those whose earning provisions of this Title shall apply to
capacity is impaired by age or physical employees in all establishments and
or mental deficiency or injury. undertakings whether for profit or not,
but not to government employees,
ARTICLE 79. When Employable. — managerial employees, field personnel,
Handicapped workers may be employed members of the family of the employer
when their employment is necessary to who are dependent on him for support,
prevent curtailment of employment domestic helpers, persons in the
opportunities and when it does not personal service of another, and workers
create unfair competition in labor costs who are paid by results as determined by
or impair or lower working standards. the Secretary of Labor in appropriate
ARTICLE 80. Employment Agreement. — regulations.
Any employer who employs handicapped As used herein, "managerial employees"
workers shall enter into an employment refer to those whose primary duty
agreement with them, which agreement consists of the management of the
shall include: establishment in which they are
1. The names and addresses of the employed or of a department or
handicapped workers to be employed; subdivision thereof, and to other officers
or members of the managerial staff.
2. The rate to be paid the handicapped
workers which shall not be less than "Field personnel" shall refer to non-
seventy five (75%) percent of the agricultural employees who regularly
applicable legal minimum wage; perform their duties away from the
principal place of business or branch
3. The duration of employment period; office of the employer and whose actual
and hours of work in the field cannot be
determined with reasonable certainty.
4. The work to be performed by
handicapped workers. ARTICLE 83. Normal Hours of Work. —
The normal hours of work of any
The employment agreement shall be employee shall not exceed eight (8)
subject to inspection by the Secretary of hours a day.
Health personnel in cities and hours a day provided that the employee
municipalities with a population of at is paid for the overtime work, an
least one million (1,000,000) or in additional compensation equivalent to
hospitals and clinics with a bed capacity his regular wage plus at least twenty-five
of at least one hundred (100) shall hold percent (25%) thereof. Work performed
regular office hours for eight (8) hours a beyond eight hours on a holiday or rest
day, for five (5) days a week, exclusive of day shall be paid an additional
time for meals, except where the compensation equivalent to the rate of
exigencies of the service require that the first eight hours on a holiday or rest
such personnel work for six (6) days or day plus at least thirty percent (30%)
forty-eight (48) hours, in which case, thereof.
they shall be entitled to an additional
compensation of at least thirty percent ARTICLE 88. Undertime Not Offset by
(30%) of their regular wage for work on Overtime. — Undertime work on any
the sixth day. For purposes of this particular day shall not be offset by
Article, "health personnel" shall include overtime work on any other day.
resident physicians, nurses, nutritionists, Permission given to the employee to go
dieticians, pharmacists, social workers, on leave on some other day of the week
laboratory technicians, paramedical shall not exempt the employer from
technicians, psychologists, midwives, paying the additional compensation
attendants and all other hospital or clinic required in this Chapter.
personnel.
ARTICLE 89. Emergency Overtime
ARTICLE 84. Hours Worked. — Hours Work. — Any employee may be required
worked shall include (a) all time during by the employer to perform overtime
which an employee is required to be on work in any of the following cases:
duty or to be at a prescribed workplace;
and (b) all time during which an (a) When the country is at war or when
employee is suffered or permitted to any other national or local emergency
work. has been declared by the National
Assembly or the Chief Executive;
Rest periods of short duration during
working hours shall be counted as hours (b) When it is necessary to prevent loss
worked. of life or property or in case of imminent
danger to public safety due to an actual
ARTICLE 85. Meal Periods. — Subject to or impending emergency in the locality
such regulations as the Secretary of caused by serious accidents, fire, flood,
Labor may prescribe, it shall be the duty typhoon, earthquake, epidemic, or other
of every employer to give his employees disaster or calamity;
not less than sixty (60) minutes time-off
for their regular meals. (c) When there is urgent work to be
performed on machines, installations, or
ARTICLE 86. Night-Shift Differential. — equipment, in order to avoid serious loss
Every employee shall be paid a night or damage to the employer or some
shift differential of not less than ten other cause of similar nature;
percent (10%) of his regular wage for
each hour of work performed between (d) When the work is necessary to
ten o'clock in the evening and six o'clock prevent loss or damage to perishable
in the morning. goods; and

ARTICLE 87. Overtime Work. — Work (e) Where the completion or continuation
may be performed beyond eight (8) of the work started before the eighth
hour is necessary to prevent serious (b) In cases of urgent work to be
obstruction or prejudice to the business performed on the machinery, equipment,
or operations of the employer. or installation, to avoid serious loss
which the employer would otherwise
Any employee required to render suffer;
overtime work under this Article shall be
paid the additional compensation (c) In the event of abnormal pressure of
required in this Chapter. work due to special circumstances,
where the employer cannot ordinarily be
ARTICLE 90. Computation of Additional expected to resort to other measures;
Compensation. — For purposes of
computing overtime and other additional (d) To prevent loss or damage to
remuneration as required by this perishable goods;
Chapter, the "regular wage" of an
employee shall include the cash wage (e) Where the nature of the work
only, without deduction on account of requires continuous operations and the
facilities provided by the employer. stoppage of work may result in
irreparable injury or loss to the
CHAPTER II Weekly Rest Periods employer; and

ARTICLE 91. Right to Weekly Rest Day. (f) Under other circumstances analogous
— (a) It shall be the duty of every or similar to the foregoing as determined
employer, whether operating for profit by the Secretary of Labor and
or not, to provide each of his employees Employment.
a rest period of not less than twenty-four
(24) consecutive hours after every six (6) ARTICLE 93. Compensation for Rest
consecutive normal work days. Day, Sunday or Holiday Work. — (a)
Where an employee is made or
(b) The employer shall determine and permitted to work on his scheduled rest
schedule the weekly rest day of his day, he shall be paid an additional
employees subject to collective compensation of at least thirty percent
bargaining agreement and to such rules (30%) of his regular wage. An employee
and regulations as the Secretary of shall be entitled to such additional
Labor and Employment may provide. compensation for work performed on
However, the employer shall respect the Sunday only when it is his established
preference of employees as to their rest day.
weekly rest day when such preference is
based on religious grounds. (b) When the nature of the work of the
employee is such that he has no regular
ARTICLE 92. When Employer May workdays and no regular rest days can
Require Work on a Rest Day. — The be scheduled, he shall be paid an
employer may require his employees to additional compensation of at least thirty
work on any day: percent (30%) of his regular wage for
work performed on Sundays and
(a) In case of actual or impending holidays.
emergencies caused by serious accident,
fire, flood, typhoon, earthquake, (c) Work performed on any special
epidemic or other disaster or calamity to holiday shall be paid an additional
prevent loss of life and property, or compensation of at least thirty percent
imminent danger to public safety; (30%) of the regular wage of the
employee. Where such holiday work falls
on the employee's scheduled rest day, he
shall be entitled to an additional after considering the viability or
compensation of at least fifty percent financial condition of such
(50%) of his regular wage. establishment.

(d) Where the collective bargaining (c) The grant of benefit in excess of that
agreement or other applicable provided herein shall not be made a
employment contract stipulates the subject of arbitration or any court or
payment of a higher premium pay than administrative action.
that prescribed under this Article, the
employer shall pay such higher rate. ARTICLE 96. Service Charges. — All
service charges collected by hotels,
CHAPTER III Holidays, Service restaurants and similar establishments
Incentive Leaves, and Service shall be distributed at the rate of eighty-
Charges five percent (85%) for all covered
employees and fifteen percent (15%) for
ARTICLE 94. Right to Holiday Pay. — (a) management. The share of the
Every worker shall be paid his regular employees shall be equally distributed
daily wage during regular holidays, among them. In case the service charge
except in retail and service is abolished, the share of the covered
establishments regularly employing less employees shall be considered
than ten (10) workers; integrated in their wages.
(b) The employer may require an TITLE II Wages
employee to work on any holiday but
such employee shall be paid a CHAPTER I Preliminary Matters
compensation equivalent to twice his
ARTICLE 97. Definitions. — As used in
regular rate; and
this Title:
(c) As used in this Article, "holiday"
(a) "Person" means an individual,
includes: New Year's Day, Maundy
partnership, association, corporation,
Thursday, Good Friday, the ninth of
business trust, legal representatives, or
April, the first of May, the twelfth of
any organized group of persons.
June, the fourth of July, the thirtieth of
November, the twenty-fifth and thirtieth (b) "Employer" includes any person
of December and the day designated by acting directly or indirectly in the
law for holding a general election. interest of an employer in relation to an
employee and shall include the
ARTICLE 95. Right to Service Incentive
government and all its branches,
Leave. — (a) Every employee who has
subdivisions and instrumentalities, all
rendered at least one year of service
government-owned or controlled
shall be entitled to a yearly service
corporations and institutions, as well as
incentive leave of five days with pay.
non-profit private institutions, or
(b) This provision shall not apply to organizations.
those who are already enjoying the
(c) "Employee" includes any individual
benefit herein provided, those enjoying
employed by an employer.
vacation leave with pay of at least five
days and those employed in (d) "Agriculture" includes farming in all
establishments regularly employing less its branches and, among other things,
than ten employees or in establishments includes cultivation and tillage of soil,
exempted from granting this benefit by dairying, the production, cultivation,
the Secretary of Labor and Employment growing and harvesting of any
agricultural and horticultural ARTICLE 100. Prohibition against
commodities, the raising of livestock or Elimination or Diminution of Benefits. —
poultry, and any practices performed by Nothing in this Book shall be construed
a farmer on a farm as an incident to or in to eliminate or in any way diminish
conjunction with such farming supplements, or other employee benefits
operations, but does not include the being enjoyed at the time of
manufacturing or processing of sugar, promulgation of this Code.
coconuts, abaca, tobacco, pineapples or
other farm products. ARTICLE 101. Payment by Results. — (a)
The Secretary of Labor and Employment
(e) "Employ" includes to suffer or permit shall regulate the payment of wages by
to work. results, including pakyao, piecework,
and other non-time work, in order to
(f) "Wage" paid to any employee shall ensure the payment of fair and
mean the remuneration or earnings, reasonable wage rates, preferably
however designated, capable of being through time and motion studies or in
expressed in terms of money, whether consultation with representatives of
fixed or ascertained on a time, task, workers' and employers' organizations.
piece, or commission basis, or other
method of calculating the same, which is CHAPTER III Payment of Wages
payable by an employer to an employee
under a written or unwritten contract of ARTICLE 102. Forms of Payment. — No
employment for work done or to be employer shall pay the wages of an
done, or for services rendered or to be employee by means of promissory notes,
rendered and includes the fair and vouchers, coupons, tokens, tickets, chits,
reasonable value, as determined by the or any object other than legal tender,
Secretary of Labor and Employment, of even when expressly requested by the
board, lodging, or other facilities employee.
customarily furnished by the employer to
the employee. "Fair and reasonable Payment of wages by check or money
value" shall not include any profit to the order shall be allowed when such
employer, or to any person affiliated manner of payment is customary on the
with the employer. date of effectivity of this Code, or is
necessary because of special
ARTICLE 98. Application of Title. — This circumstances as specified in
Title shall not apply to farm tenancy or appropriate regulations to be issued by
leasehold, domestic service and persons the Secretary of Labor and Employment
working in their respective homes in or as stipulated in a collective
needle work or in any cottage industry bargaining agreement.
duly registered in accordance with law.
ARTICLE 103. Time of Payment. —
CHAPTER II Minimum Wage Rates Wages shall be paid at least once every
two (2) weeks or twice a month at
ARTICLE 99. Regional Minimum Wages. intervals not exceeding sixteen (16)
— The minimum wage rates for days. If on account of force majeure or
agricultural and non-agricultural circumstances beyond the employer's
employees and workers in each and control, payment of wages on or within
every region of the country shall be the time herein provided cannot be
those prescribed by the Regional made, the employer shall pay the wages
Tripartite Wages and Productivity immediately after such force majeure or
Boards. circumstances have ceased. No employer
shall make payment with less frequency behalf by his natural guardian or next-of-
than once a month. kin. The affidavit shall be presented to
the employer who shall make payment
The payment of wages of employees through the Secretary of Labor and
engaged to perform a task which cannot Employment or his representative. The
be completed in two (2) weeks shall be representative of the Secretary of Labor
subject to the following conditions, in and Employment shall act as referee in
the absence of a collective bargaining dividing the amount paid among the
agreement or arbitration award: heirs.
1. That payments are made at intervals The payment of wages under this Article
not exceeding sixteen (16) days, in shall absolve the employer of any further
proportion to the amount of work liability with respect to the amount paid.
completed;
ARTICLE 106. Contractor or
2. That final settlement is made upon Subcontractor. — Whenever an employer
completion of the work. enters into a contract with another
person for the performance of the
ARTICLE 104. Place of Payment. — former's work, the employees of the
Payment of wages shall be made at or contractor and of the latter's
near the place of undertaking, except as subcontractor, if any, shall be paid in
otherwise provided by such regulations accordance with the provisions of this
as the Secretary of Labor and Code.
Employment may prescribe under
conditions to ensure greater protection In the event that the contractor or
of wages. subcontractor fails to pay the wages of
his employees in accordance with this
ARTICLE 105. Direct Payment of Wages. Code, the employer shall be jointly and
— Wages shall be paid directly to the severally liable with his contractor or
workers to whom they are due, except: subcontractor to such employees to the
(a) In cases of force majeure rendering extent of the work performed under the
such payment impossible or under other contract, in the same manner and extent
special circumstances to be determined that he is liable to employees directly
by the Secretary of Labor and employed by him.
Employment in appropriate regulations, The Secretary of Labor and Employment
in which case, the worker may be paid may, by appropriate regulations, restrict
through another person under written or prohibit the contracting-out of labor
authority given by the worker for the to protect the rights of workers
purpose; or established under this Code. In so
(b) Where the worker has died, in which prohibiting or restricting, he may make
case, the employer may pay the wages of appropriate distinctions between labor-
the deceased worker to the heirs of the only contracting and job contracting as
latter without the necessity of intestate well as differentiations within these
proceedings. The claimants, if they are types of contracting and determine who
all of age, shall execute an affidavit among the parties involved shall be
attesting to their relationship to the considered the employer for purposes of
deceased and the fact that they are his this Code, to prevent any violation or
heirs, to the exclusion of all other circumvention of any provision of this
persons. If any of the heirs is a minor, Code.
the affidavit shall be executed on his
There is "labor-only" contracting where wages and other monetary claims, any
the person supplying workers to an provisions of law to the contrary
employer does not have substantial notwithstanding. Such unpaid wages and
capital or investment in the form of monetary claims shall be paid in full
tools, equipment, machineries, work before claims of the government and
premises, among others, and the other creditors may be paid.
workers recruited and placed by such
person are performing activities which ARTICLE 111. Attorney's Fees. — (a) In
are directly related to the principal cases of unlawful withholding of wages,
business of such employer. In such the culpable party may be assessed
cases, the person or intermediary shall attorney's fees equivalent to ten percent
be considered merely as an agent of the of the amount of wages recovered.
employer who shall be responsible to the
workers in the same manner and extent (b) It shall be unlawful for any person to
as if the latter were directly employed by demand or accept, in any judicial or
him. administrative proceedings for the
recovery of wages, attorney's fees which
ARTICLE 107. Indirect Employer. — The exceed ten percent of the amount of
provisions of the immediately preceding wages recovered.
article shall likewise apply to any
person, partnership, association or CHAPTER IV Prohibitions Regarding
corporation which, not being an Wages
employer, contracts with an independent
ARTICLE 112. Non-Interference in
contractor for the performance of any
Disposal of Wages. — No employer shall
work, task, job or project.
limit or otherwise interfere with the
ARTICLE 108. Posting of Bond. — An freedom of any employee to dispose of
employer or indirect employer may his wages. He shall not in any manner
require the contractor or subcontractor force, compel, or oblige his employees to
to furnish a bond equal to the cost of purchase merchandise, commodities or
labor under contract, on condition that other property from any other person, or
the bond will answer for the wages due otherwise make use of any store or
the employees should the contractor or services of such employer or any other
subcontractor, as the case may be, fail to person.
pay the same.
ARTICLE 113. Wage Deduction. — No
ARTICLE 109. Solidary Liability. — The employer, in his own behalf or in behalf
provisions of existing laws to the of any person, shall make any deduction
contrary notwithstanding, every from the wages of his employees, except:
employer or indirect employer shall be
(a) In cases where the worker is insured
held responsible with his contractor or
with his consent by the employer, and
subcontractor for any violation of any
the deduction is to recompense the
provision of this Code. For purposes of
employer for the amount paid by him as
determining the extent of their civil
premium on the insurance;
liability under this Chapter, they shall be
considered as direct employers. (b) For union dues, in cases where the
right of the worker or his union to check-
ARTICLE 110. Worker Preference in
off has been recognized by the employer
Case of Bankruptcy. — In the event of
or authorized in writing by the individual
bankruptcy or liquidation of an
worker concerned; and
employer's business, his workers shall
enjoy first preference as regards their
(c) In cases where the employer is discriminate against any employee who
authorized by law or regulations issued has filed any complaint or instituted any
by the Secretary of Labor and proceeding under this Title or has
Employment. testified or is about to testify in such
proceedings.
ARTICLE 114. Deposits for Loss or
Damage. — No employer shall require ARTICLE 119. False Reporting. — It
his worker to make deposits from which shall be unlawful for any person to make
deductions shall be made for the any statement, report, or record filed or
reimbursement of loss of or damage to kept pursuant to the provisions of this
tools, materials, or equipment supplied Code knowing such statement, report or
by the employer, except when the record to be false in any material
employer is engaged in such trades, respect.
occupations or business where the
practice of making deductions or CHAPTER V Wage Studies, Wage
requiring deposits is a recognized one, Agreements, and Wage
or is necessary or desirable as Determination
determined by the Secretary of Labor
and Employment in appropriate rules ARTICLE 120. Creation of National
and regulations. Wages and Productivity Commission. —
There is hereby created a National
ARTICLE 115. Limitations. — No Wages and Productivity Commission,
deduction from the deposits of an hereinafter referred to as the
employee for the actual amount of the Commission, which shall be attached to
loss or damage shall be made unless the the Department of Labor and
employee has been heard thereon, and Employment (DOLE) for policy and
his responsibility has been clearly program coordination.
shown.
ARTICLE 121. Powers and Functions of
ARTICLE 116. Withholding of Wages the Commission. — The Commission
and Kickbacks Prohibited. — It shall be shall have the following powers and
unlawful for any person, directly or functions:
indirectly, to withhold any amount from
the wages of a worker or induce him to (a) To act as the national consultative
give up any part of his wages by force, and advisory body to the President of the
stealth, intimidation, threat or by any Philippines and Congress on matters
other means whatsoever without the relating to wages, incomes and
worker's consent. productivity;

ARTICLE 117. Deduction to Ensure (b) To formulate policies and guidelines

Employment. — It shall be unlawful to on wages, incomes and productivity
make any deduction from the wages of improvement at the enterprise, industry
any employee for the benefit of the and national levels;
employer or his representative or
(c) To prescribe rules and guidelines for
intermediary as consideration of a
the determination of appropriate
promise of employment or retention in
minimum wage and productivity
employment.
measures at the regional, provincial, or
ARTICLE 118. Retaliatory Measures. — industry levels;
It shall be unlawful for an employer to
(d) To review regional wage levels set by
refuse to pay or reduce the wages and
the Regional Tripartite Wages and
benefits, discharge or in any manner
Productivity Boards to determine if these The Executive Director of the
are in accordance with prescribed Commission shall also be a member of
guidelines and national development the Commission.
plans;
The Commission shall be assisted by a
(e) To undertake studies, researches and Secretariat to be headed by an Executive
surveys necessary for the attainment of Director and two (2) Deputy Directors,
its functions and objectives, and to who shall be appointed by the President
collect and compile data and periodically of the Philippines, upon the
disseminate information on wages and recommendation of the Secretary of
productivity and other related Labor and Employment.
information, including, but not limited
to, employment, cost-of-living, labor The Executive Director shall have the
costs, investments and returns; same rank, salary, benefits and other
emoluments as that of a Department
(f) To review plans and programs of the Assistant Secretary, while the Deputy
Regional Tripartite Wages and Directors shall have the same rank,
Productivity Boards to determine salary, benefits and other emoluments as
whether these are consistent with that of a Bureau Director. The members
national development plans; of the Commission representing labor
and management shall have the same
(g) To exercise technical and rank, emoluments, allowances and other
administrative supervision over the benefits as those prescribed by law for
Regional Tripartite Wages and labor and management representatives
Productivity Boards; in the Employees' Compensation
Commission.
(h) To call, from time to time, a national
tripartite conference of representatives ARTICLE 122. Creation of Regional
of government, workers and employers Tripartite Wages and Productivity
for the consideration of measures to Boards. — There is hereby created
promote wage rationalization and Regional Tripartite Wages and
productivity; and Productivity Boards, hereinafter referred
to as Regional Boards, in all regions,
(i) To exercise such powers and including autonomous regions as may be
functions as may be necessary to established by law. The Commission
implement this Act. shall determine the offices/headquarters
The Commission shall be composed of of the respective Regional Boards.
the Secretary of Labor and Employment The Regional Boards shall have the
as ex-officio chairman, the Director- following powers and functions in their
General of the National Economic and respective territorial jurisdictions:
Development Authority (NEDA) as ex-
officio vice-chairman, and two (2) (a) To develop plans, programs and
members each from workers and projects relative to wages, incomes and
employers sectors who shall be productivity improvement for their
appointed by the President of the respective regions;
Philippines upon recommendation of the
Secretary of Labor and Employment to (b) To determine and fix minimum wage
be made on the basis of the list of rates applicable in their regions,
nominees submitted by the workers and provinces or industries therein and to
employers sectors, respectively, and who issue the corresponding wage orders,
shall serve for a term of five (5) years.
subject to guidelines issued by the to be made on the basis of the list of
Commission; nominees submitted by the workers' and
employers' sectors, respectively, and
(c) To undertake studies, researches, who shall serve for a term of five (5)
and surveys necessary for the years.
attainment of their functions, objectives
and programs, and to collect and Each Regional Board to be headed by its
compile data on wages, incomes, chairman shall be assisted by a
productivity and other related Secretariat.
information and periodically disseminate
the same; ARTICLE 123. Wage Order. — Whenever
conditions in the region so warrant, the
(d) To coordinate with the other Regional Board shall investigate and
Regional Boards as may be necessary to study all pertinent facts; and based on
attain the policy and intention of this the standards and criteria herein
Code; prescribed, shall proceed to determine
whether a Wage Order should be issued.
(e) To receive, process and act on Any such Wage Order shall take effect
applications for exemption from after fifteen (15) days from its complete
prescribed wage rates as may be publication in at least one (1) newspaper
provided by law or any Wage Order; and of general circulation in the region.
(f) To exercise such other powers and In the performance of its wage-
functions as may be necessary to carry determining functions, the Regional
out their mandate under this Code. Board shall conduct public
hearings/consultations, giving notices to
Implementation of the plans, programs, employees' and employers' groups,
and projects of the Regional Boards provincial, city and municipal officials
referred to in the second paragraph, and other interested parties.
letter (a) of this Article, shall be through
the respective regional offices of the Any party aggrieved by the Wage Order
Department of Labor and Employment issued by the Regional Board may appeal
within their territorial jurisdiction; such order to the Commission within ten
Provided, however, That the Regional (10) calendar days from the publication
Boards shall have technical supervision of such order. It shall be mandatory for
over the regional office of the the Commission to decide such appeal
Department of Labor and Employment within sixty (60) calendar days from the
with respect to the implementation of filing thereof.
said plans, programs and projects.
The filing of the appeal does not stay the
Each Regional Board shall be composed order unless the person appealing such
of the Regional Director of the order shall file with the Commission, an
Department of Labor and Employment as undertaking with a surety or sureties
chairman, the Regional Directors of the satisfactory to the Commission for the
National Economic and Development payment to the employees affected by
Authority and the Department of Trade the order of the corresponding increase,
and Industry as vice-chairmen and two in the event such order is affirmed.
(2) members each from workers' and
employers' sectors who shall be ARTICLE 124. Standards/Criteria for
appointed by the President of the Minimum Wage Fixing. — The regional
Philippines, upon the recommendation of minimum wages to be established by the
the Secretary of Labor and Employment, Regional Board shall be as nearly
adequate as is economically feasible to annually with the appropriate Regional
maintain the minimum standards of Board, Commission and the National
living necessary for the health, efficiency Statistics Office, an itemized listing of
and general well-being of the employees their labor component, specifying the
within the framework of the national names of their workers and employees
economic and social development below the managerial level, including
program. In the determination of such learners, apprentices and
regional minimum wages, the Regional disabled/handicapped workers who were
Board shall, among other relevant hired under the terms prescribed in the
factors, consider the following: employment contracts, and their
corresponding salaries and wages.
(a) The demand for living wages;
Where the application of any prescribed
(b) Wage adjustment vis-à-vis the wage increase by virtue of a law or wage
consumer price index; order issued by any Regional Board
results in distortions of the wage
(c) The cost of living and changes or structure within an establishment, the
increases therein; employer and the union shall negotiate
(d) The needs of workers and their to correct the distortions. Any dispute
families; arising from wage distortions shall be
resolved through the grievance
(e) The need to induce industries to procedure under their collective
invest in the countryside; bargaining agreement and, if it remains
unresolved, through voluntary
(f) Improvements in standards of living; arbitration. Unless otherwise agreed by
the parties in writing, such dispute shall
(g) The prevailing wage levels; be decided by the voluntary arbitrators
within ten (10) calendar days from the
(h) Fair return of the capital invested time said dispute was referred to
and capacity to pay of employers; voluntary arbitration.
(i) Effects on employment generation In cases where there are no collective
and family income; and agreements or recognized labor unions,
the employers and workers shall
(j) The equitable distribution of income
endeavor to correct such distortions. Any
and wealth along the imperatives of
dispute arising therefrom shall be
economic and social development.
settled through the National Conciliation
The wages prescribed in accordance and Mediation Board and, if it remains
with the provisions of this Title shall be unresolved after ten (10) calendar days
the standard prevailing minimum wages of conciliation, shall be referred to the
in every region. These wages shall appropriate branch of the National
include wages varying with industries, Labor Relations Commission (NLRC). It
provinces or localities if in the judgment shall be mandatory for the NLRC to
of the Regional Board, conditions make conduct continuous hearings and decide
such local differentiation proper and the dispute within twenty (20) calendar
necessary to effectuate the purpose of days from the time said dispute is
this Title. submitted for compulsory arbitration.

Any person, company, corporation, The pendency of a dispute arising from a

partnership or any other entity engaged wage distortion shall not in any way
in business shall file and register delay the applicability of any increase in
prescribed wage rates pursuant to the
provisions of law or wage order.
CHAPTER VI Administration and
As used herein, a wage distortion shall Enforcement
mean a situation where an increase in
prescribed wage rates results in the ARTICLE 128. Visitorial and
elimination or severe contraction of Enforcement Power. — (a) The Secretary
intentional quantitative differences in of Labor and Employment or his duly
wage or salary rates between and among authorized representatives, including
employee groups in an establishment as labor regulation officers, shall have
to effectively obliterate the distinctions access to employer's records and
embodied in such wage structure based premises at any time of the day or night
on skills, length of service, or other whenever work is being undertaken
logical bases of differentiation. therein, and the right to copy therefrom,
to question any employee and
All workers paid by result, including investigate any fact, condition or matter
those who are paid on which may be necessary to determine
piecework, takay, pakyaw or task basis, violations or which may aid in the
shall receive not less than the prescribed enforcement of this Code and of any
wage rates per eight (8) hours of work a labor law, wage order or rules and
day, or a proportion thereof for working regulations issued pursuant thereto.
less than eight (8) hours.
(b) Notwithstanding the provisions of
All recognized learnership and Articles 129 and 217 of this Code to the
apprenticeship agreements shall be contrary, and in cases where the
considered automatically modified relationship of employer-employee still
insofar as their wage clauses are exists, the Secretary of Labor and
concerned to reflect the prescribed wage Employment or his duly authorized
rates. representatives shall have the power to
issue compliance orders to give effect to
ARTICLE 125. Freedom to Bargain. — the labor standards provisions of this
No wage order shall be construed to Code and other labor legislation based
prevent workers in particular firms or on the findings of labor employment and
enterprises or industries from enforcement officers or industrial safety
bargaining for higher wages with their engineers made in the course of
respective employers. inspection. The Secretary or his duly
authorized representatives shall issue
ARTICLE 126. Prohibition against
writs of execution to the appropriate
Injunction. — No preliminary or
authority for the enforcement of their
permanent injunction or temporary
orders, except in cases where the
restraining order may be issued by any
employer contests the findings of the
court, tribunal or other entity against
labor employment and enforcement
any proceedings before the Commission
officer and raises issues supported by
or the Regional Boards.
documentary proofs which were not
ARTICLE 127. Non-Diminution of considered in the course of inspection.
Benefits. — No wage order issued by any
An order issued by the duly authorized
regional board shall provide for wage
representative of the Secretary of Labor
rates lower than the statutory minimum
and Employment under this Article may
wage rates prescribed by Congress.
be appealed to the latter. In case said
order involves a monetary award, an
appeal by the employer may be
perfected only upon the posting of a and maintain such employment records
cash or surety bond issued by a as may be necessary in aid of his
reputable bonding company duly visitorial and enforcement powers under
accredited by the Secretary of Labor and this Code.
Employment in the amount equivalent to
the monetary award in the order ARTICLE 129. Recovery of Wages,
appealed from. Simple Money Claims and Other
Benefits. — Upon complaint of any
(c) The Secretary of Labor and interested party, the Regional Director
Employment may likewise order of the Department of Labor and
stoppage of work or suspension of Employment or any of the duly
operations of any unit or department of authorized hearing officers of the
an establishment when non-compliance Department is empowered, through
with the law or implementing rules and summary proceeding and after due
regulations poses grave and imminent notice, to hear and decide any matter
danger to the health and safety of involving the recovery of wages and
workers in the workplace. Within other monetary claims and benefits,
twenty-four hours, a hearing shall be including legal interest, owing to an
conducted to determine whether an employee or person employed in
order for the stoppage of work or domestic or household service or
suspension of operations shall be lifted househelper under this Code, arising
or not. In case the violation is from employer-employee
attributable to the fault of the employer, relations: Provided, That such complaint
he shall pay the employees concerned does not include a claim for
their salaries or wages during the period reinstatement: Provided, further, That
of such stoppage of work or suspension the aggregate money claims of each
of operation. employee or househelper do not exceed
five thousand pesos (P5,000.00). The
(d) It shall be unlawful for any person or Regional Director or hearing officer shall
entity to obstruct, impede, delay or decide or resolve the complaint within
otherwise render ineffective the orders thirty (30) calendar days from the date
of the Secretary of Labor and of the filing of the same. Any sum thus
Employment or his duly authorized recovered on behalf of any employee or
representatives issued pursuant to the househelper pursuant to this Article
authority granted under this Article, and shall be held in a special deposit
no inferior court or entity shall issue account, and shall be paid, on order of
temporary or permanent injunction or the Secretary of Labor and Employment
restraining order or otherwise assume or the Regional Director directly to the
jurisdiction over any case involving the employee or househelper concerned. Any
enforcement orders issued in accordance such sum not paid to the employee or
with this Article. househelper, because he cannot be
located after diligent and reasonable
(e) Any government employee found effort to locate him within a period of
guilty of violation of, or abuse of three (3) years, shall be held as a special
authority, under this Article shall, after fund of the Department of Labor and
appropriate administrative investigation, Employment to be used exclusively for
be subject to summary dismissal from the amelioration and benefit of workers.
the service.
Any decision or resolution of the
(f) The Secretary of Labor and Regional Director or hearing officer
Employment may, by appropriate pursuant to this provision may be
regulations, require employers to keep
appealed on the same grounds provided ARTICLE 131. [133] Maternity Leave
in Article 223 of this Code, within five (5) Benefits. — (a) Every employer shall
calendar days from receipt of a copy of grant to any pregnant woman employee
said decision or resolution, to the who has rendered an aggregate service
National Labor Relations Commission of at least six (6) months for the last
which shall resolve the appeal within ten twelve (12) months, maternity leave of at
(10) calendar days from the submission least two (2) weeks prior to the expected
of the last pleading required or allowed date of delivery and another four (4)
under its rules. weeks after normal delivery or abortion
with full pay based on her regular or
The Secretary of Labor and Employment average weekly wages. The employer
or his duly authorized representative may require from any woman employee
may supervise the payment of unpaid applying for maternity leave the
wages and other monetary claims and production of a medical certificate
benefits, including legal interest, found stating that delivery will probably take
owing to any employee or house helper place within two weeks.
under this Code.
(b) The maternity leave shall be
TITLE III Working Conditions for Special
extended without pay on account of
Groups of Employees
illness medically certified to arise out of
CHAPTER I Employment of Women the pregnancy, delivery, abortion or
miscarriage, which renders the woman
ARTICLE 130. [132] Facilities for unfit for work, unless she has earned
Women. — The Secretary of Labor and unused leave credits from which such
Employment shall establish standards extended leave may be charged.
that will ensure the safety and health of
women employees. In appropriate cases, (c) The maternity leave provided in this
he shall, by regulations, require any Article shall be paid by the employer
employer to: only for the first four (4) deliveries by a
woman employee after the effectivity of
(a) Provide seats proper for women and this Code.
permit them to use such seats when they
are free from work and during working ARTICLE 132. [134] Family Planning
hours, provided they can perform their Services; Incentives for Family Planning.
duties in this position without detriment — (a) Establishments which are required
to efficiency; by law to maintain a clinic or infirmary
shall provide free family planning
(b) To establish separate toilet rooms services to their employees which shall
and lavatories for men and women and include, but not be limited to, the
provide at least a dressing room for application or use of contraceptive pills
women; and intrauterine devices.

(c) To establish a nursery in a workplace (b) In coordination with other agencies

for the benefit of the women employees of the government engaged in the
therein; and promotion of family planning, the
Department of Labor and Employment
(d) To determine appropriate minimum shall develop and prescribe incentive
age and other standards for retirement bonus schemes to encourage family
or termination in special occupations planning among female workers in any
such as those of flight attendants and establishment or enterprise.
the like.
ARTICLE 133. [135] Discrimination ARTICLE 135. [137] Prohibited Acts. —
Prohibited. — It shall be unlawful for any It shall be unlawful for any employer:
employer to discriminate against any
woman employee with respect to terms (1) To deny any woman employee the
and conditions of employment solely on benefits provided for in this Chapter or
account of her sex. to discharge any woman employed by
him for the purpose of preventing her
The following are acts of discrimination: from enjoying any of the benefits
provided under this Code;
(a) Payment of a lesser compensation,
including wage, salary or other form of (2) To discharge such woman on account
remuneration and fringe benefits, to a of her pregnancy, or while on leave or in
female employee as against a male confinement due to her pregnancy;
employee, for work of equal value; and
(3) To discharge or refuse the admission
(b) Favoring a male employee over a of such woman upon returning to her
female employee with respect to work for fear that she may again be
promotion, training opportunities, study pregnant.
and scholarship grants solely on account
of their sexes. ARTICLE 136. [138] Classification of
Certain Women Workers. — Any woman
Criminal liability for the willful who is permitted or suffered to work,
commission of any unlawful act as with or without compensation, in any
provided in this article or any violation night club, cocktail lounge, massage
of the rules and regulations issued clinic, bar or similar establishments
pursuant to Section 2 hereof shall be under the effective control or
penalized as provided in Articles 288 supervision of the employer for a
and 289 of this Code: Provided, That the substantial period of time as determined
institution of any criminal action under by the Secretary of Labor and
this provision shall not bar the aggrieved Employment, shall be considered as an
employee from filing an entirely separate employee of such establishment for
and distinct action for money claims, purposes of labor and social legislation.
which may include claims for damages
and other affirmative reliefs. The actions CHAPTER II Employment of Minors
hereby authorized shall proceed
independently of each other. ARTICLE 137. [139] Minimum
Employable Age. — (a) No child below
ARTICLE 134. [136] Stipulation against fifteen (15) years of age shall be
Marriage. — It shall be unlawful for an employed, except when he works
employer to require as a condition of directly under the sole responsibility of
employment or continuation of his parents or guardian, and his
employment that a woman employee employment does not in any way
shall not get married, or to stipulate interfere with his schooling.
expressly or tacitly that upon getting
married, a woman employee shall be (b) Any person between fifteen (15) and
deemed resigned or separated, or to eighteen (18) years of age may be
actually dismiss, discharge, discriminate employed for such number of hours and
or otherwise prejudice a woman such periods of the day as determined by
employee merely by reason of her the Secretary of Labor and Employment
marriage. in appropriate regulations.
(c) The foregoing provisions shall in no Pateros in Metro Manila and in highly
case allow the employment of a person urbanized cities;
below eighteen (18) years of age in an
undertaking which is hazardous or (2) Six hundred fifty pesos (P650.00) a
deleterious in nature as determined by month for those in other chartered cities
the Secretary of Labor and Employment. and first-class municipalities; and

ARTICLE 138. [140] Prohibition against (3) Five hundred fifty pesos (P550.00) a
Child Discrimination. — No employer month for those in other municipalities.
shall discriminate against any person in
respect to terms and conditions of Provided, That the employers shall
employment on account of his age. review the employment contracts of
their househelpers every three (3) years
with the end in view of improving the
terms and conditions thereof.

Provided, further, That those

CHAPTER III Employment of househelpers who are receiving at least
Househelpers One Thousand pesos (P1,000.00) shall be
covered by the Social Security System
ARTICLE 139. [141] Coverage. — This (SSS) and be entitled to all the benefits
Chapter shall apply to all persons provided thereunder.
rendering services in households for
compensation. ARTICLE 142. [144] Minimum Cash
Wage. — The minimum wage rates
"Domestic or household service" shall prescribed under this Chapter shall be
mean service in the employer's home the basic cash wages which shall be paid
which is usually necessary or desirable to the househelpers in addition to
for the maintenance and enjoyment lodging, food and medical attendance.
thereof and includes ministering to the
personal comfort and convenience of the ARTICLE 143. [145] Assignment to Non-
members of the employer's household, Household Work. — No househelper
including services of family drivers. shall be assigned to work in a
commercial, industrial or agricultural
ARTICLE 140. [142] Contract of enterprise at a wage or salary rate lower
Domestic Service. — The original than that provided for agricultural or
contract of domestic service shall not non-agricultural workers as prescribed
last for more than two (2) years but it herein.
may be renewed for such periods as may
be agreed upon by the parties. ARTICLE 144. [146] Opportunity for
Education. — If the househelper is under
ARTICLE 141. [143] Minimum Wage. — the age of eighteen (18) years, the
(a) Househelpers shall be paid the employer shall give him or her an
following minimum wage rates: opportunity for at least elementary
education. The cost of education shall be
(1) Eight hundred pesos (P800.00) a part of the househelper's compensation,
month for househelpers in Manila, unless there is a stipulation to the
Quezon, Pasay, and Caloocan cities and contrary.
municipalities of Makati, San Juan,
Mandaluyong, Muntinlupa, Navotas, ARTICLE 145. [147] Treatment of
Malabon, Parañaque, Las Piñas, Pasig, Househelpers. — The employer shall
Marikina, Valenzuela, Taguig and treat the househelper in a just and
humane manner. In no case shall
physical violence be used upon the or thumbmark upon request of the
househelper. employer.

ARTICLE 146. [148] Board, Lodging, and

Medical Attendance. — The employer
shall furnish the househelper, free of CHAPTER IV Employment of
charge, suitable and sanitary living Homeworkers
quarters as well as adequate food and
medical attendance. ARTICLE 151. [153] Regulation of
Industrial Homeworkers. — The
ARTICLE 147. [149] Indemnity for employment of industrial homeworkers
Unjust Termination of Services. — If the and field personnel shall be regulated by
period of household service is fixed, the government through the appropriate
neither the employer nor the regulations issued by the Secretary of
househelper may terminate the contract Labor and Employment to ensure the
before the expiration of the term, except general welfare and protection of
for a just cause. If the househelper is homeworkers and field personnel and
unjustly dismissed, he or she shall be the industries employing them.
paid the compensation already earned
plus that for fifteen (15) days by way of ARTICLE 152. [154] Regulations of
indemnity. Secretary of Labor. — The regulations or
orders to be issued pursuant to this
If the househelper leaves without Chapter shall be designed to assure the
justifiable reason, he or she shall forfeit minimum terms and conditions of
any unpaid salary due him or her not employment applicable to the industrial
exceeding fifteen (15) days. homeworkers or field personnel
involved.
ARTICLE 148. [150] Service of
Termination Notice. — If the duration of ARTICLE 153. [155] Distribution of
the household service is not determined Homework. — For purposes of this
either in stipulation or by the nature of Chapter, the "employer" of homeworkers
the service, the employer or the includes any person, natural or artificial
househelper may give notice to put an who, for his account or benefit, or on
end to the relationship five (5) days behalf of any person residing outside the
before the intended termination of the country, directly or indirectly, or
service. through an employee, agent contractor,
sub-contractor or any other person:
ARTICLE 149. [151] Employment
Certification. — Upon the severance of (1) Delivers, or causes to be delivered,
the household service relation, the any goods, articles or materials to be
employer shall give the househelper a processed or fabricated in or about a
written statement of the nature and home and thereafter to be returned or to
duration of the service and his or her be disposed of or distributed in
efficiency and conduct as househelper. accordance with his directions; or

ARTICLE 150. [152] Employment (2) Sells any goods, articles or materials
Record. — The employer may keep such to be processed or fabricated in or about
records as he may deem necessary to a home and then rebuys them after such
reflect the actual terms and conditions of processing or fabrication, either by
employment of his househelper, which himself or through some other person.
the latter shall authenticate by signature
CHAPTER V Employment of Night ARTICLE 156. Mandatory Facilities. —
Workers Suitable first-aid facilities shall be made
available for workers performing night
ARTICLE 154. Coverage. — This chapter work, including arrangements where
shall apply to all persons, who shall be such workers, where necessary, can be
employed or permitted or suffered to taken immediately to a place for
work at night, except those employed in appropriate treatment. The employers
agriculture, stock raising, fishing, are likewise required to provide safe and
maritime transport and inland healthful working conditions and
navigation, during a period of not less adequate or reasonable facilities such as
than seven (7) consecutive hours, sleeping or resting quarters in the
including the interval from midnight to establishment and transportation from
five o'clock in the morning, to be the work premises to the nearest point
determined by the Secretary of Labor of their residence subject to exceptions
and Employment, after consulting the and guidelines to be provided by the
workers' representatives/labor DOLE.
organizations and employers.
ARTICLE 157. Transfer. — Night
"Night worker" means any employed workers who are certified as unfit for
person whose work requires night work, due to health reasons, shall
performance of a substantial number of be transferred, whenever practicable, to
hours of night work which exceeds a a similar job for which they are fit to
specified limit. This limit shall be fixed work.
by the Secretary of Labor after
consulting the workers' If such transfer to a similar job is not
representatives/labor organizations and practicable, these workers shall be
employers. granted the same benefits as other
workers who are unable to work, or to
ARTICLE 155. Health Assessment. — At secure employment during such period.
their request, workers shall have the
right to undergo a health assessment A night worker certified as temporarily
without charge and to receive advice on unfit for night work shall be given the
how to reduce or avoid health problems same protection against dismissal or
associated with their work: notice of dismissal as other workers who
are prevented from working for reasons
(a) Before taking up an assignment as a of health.
night worker;
ARTICLE 158. Women Night Workers. —
(b) At regular intervals during such an Measures shall be taken to ensure that
assignment; and an alternative to night work is available
to women workers who would otherwise
(c) If they experience health problems be called upon to perform such work:
during such an assignment which are not
caused by factors other than the (a) Before and after childbirth, for a
performance of night work. period of at least sixteen (16) weeks,
which shall be divided between the time
With the exception of a finding of before and after childbirth;
unfitness for night work, the findings of
such assessments shall not be (b) For additional periods, in respect of
transmitted to others without the which a medical certificate is produced
workers' consent and shall not be used stating that said additional periods are
to their detriment.
necessary for the health of the mother or ARTICLE 160. Social Services. —
child: Appropriate social services shall be
provided for night workers and, where
(1) During pregnancy; necessary, for workers performing night
work.
(2) During a specified time beyond the
period, after childbirth is fixed pursuant ARTICLE 161. Night Work Schedules. —
to subparagraph (a) above, the length of Before introducing work schedules
which shall be determined by the DOLE requiring the services of night workers,
after consulting the labor organizations the employer shall consult the workers'
and employers. representatives/labor organizations
concerned on the details of such
During the periods referred to in this schedules and the forms of organization
article: of night work that are best adapted to
(i) A woman worker shall not be the establishment and its personnel, as
dismissed or given notice of dismissal, well as on the occupational health
except for just or authorized causes measures and social services which are
provided for in this Code that are not required. In establishments employing
connected with pregnancy, childbirth night workers, consultation shall take
and childcare responsibilities. place regularly.

(ii) A woman worker shall not lose the TITLE I Medical, Dental and
benefits regarding her status, seniority, Occupational Safety
and access to promotion which may
attach to her regular night work CHAPTER I Medical and Dental
position. Services

Pregnant women and nursing mothers ARTICLE 162. [156] First-Aid Treatment.
may be allowed to work at night only if a — Every employer shall keep in his
competent physician, other than the establishment such first-aid medicines
company physician, shall certify their and equipment as the nature and
fitness to render night work, and specify, conditions of work may require, in
in the case of pregnant employees, the accordance with such regulations as the
period of the pregnancy that they can Department of Labor and Employment
safely work. shall prescribe.

The measures referred to in this article The employer shall take steps for the
may include transfer to day work where training of a sufficient number of
this is possible, the provision of social employees in first-aid treatment.
security benefits or an extension of
ARTICLE 163. [157] Emergency Medical
maternity leave.
and Dental Services. — It shall be the
The provisions of this article shall not duty of every employer to furnish his
have the effect of reducing the employees in any locality with free
protection and benefits connected with medical and dental attendance and
maternity leave under existing laws. facilities consisting of:

ARTICLE 159. Compensation. — The (a) The services of a full-time registered

compensation for night workers in the nurse when the number of employees
form of working time, pay or similar exceeds fifty (50) but not more than two
benefits shall recognize the exceptional hundred (200) except when the employer
nature of night work. does not maintain hazardous
workplaces, in which case, the services of the necessary beds and dental
of a graduate first-aider shall be facilities for the use of his employees.
provided for the protection of workers,
where no registered nurse is available. ARTICLE 165. [159] Health Program. —
The Secretary of Labor and Employment The physician engaged by an employer
shall provide by appropriate regulations shall, in addition to his duties under this
the services that shall be required where Chapter, develop and implement a
the number of employees does not comprehensive occupational health
exceed fifty (50) and shall determine by program for the benefit of the employees
appropriate order, hazardous of his employer.
workplaces for purposes of this Article;
ARTICLE 166. [160] Qualifications of
(b) The services of a full-time registered Health Personnel. — The physicians,
nurse, a part-time physician and dentist, dentists and nurses employed by
and an emergency clinic, when the employers pursuant to this Chapter shall
number of employees exceeds two have the necessary training in industrial
hundred (200) but not more than three medicine and occupational safety and
hundred (300); and health. The Secretary of Labor and
Employment, in consultation with
(c) The services of a full-time physician, industrial, medical, and occupational
dentist and a full-time registered nurse safety and health associations, shall
as well as a dental clinic and an establish the qualifications, criteria and
infirmary or emergency hospital with conditions of employment of such health
one bed capacity for every one hundred personnel.
(100) employees when the number of
employees exceeds three hundred (300). ARTICLE 167. [161] Assistance of
Employer. — It shall be the duty of any
In cases of hazardous workplaces, no employer to provide all the necessary
employer shall engage the services of a assistance to ensure the adequate and
physician or a dentist who cannot stay in immediate medical and dental
the premises of the establishment for at attendance and treatment to an injured
least two (2) hours, in the case of those or sick employee in case of emergency.
engaged on part-time basis, and not less
than eight (8) hours, in the case of those CHAPTER II Occupational Health
employed on full-time basis. Where the and Safety
undertaking is non-hazardous in nature,
the physician and dentist may be ARTICLE 168. [162] Safety and Health
engaged on retained basis, subject to Standards. — The Secretary of Labor
such regulations as the Secretary of and Employment shall, by appropriate
Labor and Employment may prescribe to orders, set and enforce mandatory
insure immediate availability of medical occupational safety and health standards
and dental treatment and attendance in to eliminate or reduce occupational
case of emergency. safety and health hazards in all
workplaces and institute new, and
ARTICLE 164. [158] When Emergency update existing, programs to ensure safe
Hospital Not Required. — The and healthful working conditions in all
requirement for an emergency hospital places of employment.
or dental clinic shall not be applicable in
case there is a hospital or dental clinic ARTICLE 169. [163] Research. — It shall
which is accessible from the employer's be the responsibility of the Department
establishment and he makes of Labor and Employment to conduct
arrangement for the reservation therein continuing studies and research to
develop innovative methods, techniques shall be expended exclusively for the
and approaches for dealing with administration and enforcement of safety
occupational safety and health problems; and other labor laws administered by the
to discover latent diseases by Department of Labor.
establishing causal connections between
TITLE II Employees Compensation and
diseases and work in environmental
State Insurance Fund
conditions; and to develop medical
criteria which will assure insofar as CHAPTER I Policy and Definitions
practicable that no employee will suffer
impairment or diminution in health, ARTICLE 172. [166] Policy. — The State
functional capacity, or life expectancy as shall promote and develop a tax-exempt
a result of his work and working employees' compensation program
conditions. whereby employees and their
dependents, in the event of work-
ARTICLE 170. [164] Training Programs. connected disability or death, may
— The Department of Labor and promptly secure adequate income
Employment shall develop and benefit and medical related benefits.
implement training programs to increase
the number and competence of ARTICLE 173. [167] Definition of Terms.
personnel in the field of occupational — As used in this Title, unless the
safety and industrial health. context indicates otherwise:
ARTICLE 171. [165] Administration of (a) "Code" means the Labor Code of the
Safety and Health Laws. — (a) The Philippines instituted under Presidential
Department of Labor shall be solely Decree Numbered Four Hundred Forty-
responsible for the administration and Two, as amended.
enforcement of occupational safety and
health laws, regulations and standards in (b) "Commission" means the Employees'
all establishments and workplaces Compensation Commission created
wherever they may be located; however, under this Title.
chartered cities may be allowed to
conduct industrial safety inspections of (c) "SSS" means the Social Security
establishments within their respective System created under Republic Act
jurisdictions where they have adequate Numbered Eleven Hundred Sixty-One, as
facilities and competent personnel for amended.
the purpose as determined by the
Department of Labor and subject to (d) "GSIS" means the Government
national standards established by the Service Insurance System created under
latter. Commonwealth Act Numbered One
Hundred Eighty-Six, as amended.
(b) The Secretary of Labor may, through
appropriate regulations, collect (e) "System" means the SSS or GSIS, as
reasonable fees for the inspection of the case may be.
steam boilers, pressure vessels and (f) "Employer" means any person,
pipings and electrical installations, the natural or juridical, employing the
test and approval for safe use of services of the employee.
materials, equipment and other safety
devices and the approval of plans for (g) "Employee" means any person
such materials, equipment and devices. compulsorily covered by the GSIS under
The fee so collected shall be deposited in Commonwealth Act Numbered One
the national treasury to the credit of the Hundred Eighty-Six, as amended,
occupational safety and health fund and
including the members of the Armed same is increased by working conditions.
Forces of the Philippines, and any For this purpose, the Commission is
person employed as casual, emergency, empowered to determine and approve
temporary, substitute or contractual, or occupational diseases and work-related
any person compulsorily covered by the illnesses that may be considered
SSS under Republic Act Numbered compensable based on peculiar hazards
Eleven Hundred Sixty-One, as amended. of employment.

(h) "Person" means any individual, (m) "Death" means loss of life resulting
partnership, firm, association, trust, from injury or sickness.
corporation or legal representative
thereof. (n) "Disability" means loss or
impairment of a physical or mental
(i) "Dependents" means the legitimate, function resulting from injury or
legitimated, legally adopted or sickness.
acknowledged natural child who is
unmarried, not gainfully employed, and (o) "Compensation" means all payments
not over twenty-one years of age or over made under this Title for income
twenty-one years of age provided he is benefits and medical or related benefits.
incapable of self-support due to a
physical or mental defect which is (p) "Income benefit" means all payments
congenital or acquired during minority; made under this Title to the employee or
the legitimate spouse living with the his dependents.
employee; and the parents of said (q) "Medical benefit" means all
employee wholly dependent upon him payments made under this Title to the
for regular support. providers of medical care, rehabilitation
(j) "Beneficiaries" means the dependent services and hospital care.
spouse until he/she remarries and (r) "Related benefit" means all payments
dependent children, who are the primary made under this Title for appliances and
beneficiaries. In their absence, the supplies.
dependent parents and subject to the
restrictions imposed on dependent (s) "Appliances" means crutches,
children, the illegitimate children and artificial aids and other similar devices.
legitimate descendants, who are the
secondary beneficiaries: Provided, That (t) "Supplies" means medicine and other
the dependent acknowledged natural medical, dental or surgical items.
child shall be considered as a primary
beneficiary when there are no other (u) "Hospital" means any medical
dependent children who are qualified facility, government or private,
and eligible for monthly income benefit. authorized by law, an active member in
good standing of the Philippine Hospital
(k) "Injury" means any harmful change Association and accredited by the
in the human organism from any Commission.
accident arising out of and in the course
of the employment. (v) "Physician" means any doctor of
medicine duly licensed to practice in the
(l) "Sickness" means any illness Philippines, an active member in good
definitely accepted as an occupational standing of the Philippine Medical
disease listed by the Commission, or any Association and accredited by the
illness caused by employment subject to Commission.
proof that the risk of contracting the
(w) "Wages" or "Salary" insofar as they number of working days of the month of
refer to the computation of benefits, contingency.
means the monthly remuneration as
defined in Republic Act No. 1161, as (aa) "Quarter" means a period of three
amended, for SSS and Presidential (3) consecutive months ending on the
Decree No. 1146, as amended, for GSIS, last days of March, June, September and
respectively, except that part in excess December.
of Three Thousand Pesos.
(bb) "Semester" means a period of two
(x) "Monthly salary credit" means the consecutive quarters ending in the
wage or salary base for contributions as quarter of death, permanent disability,
provided in Republic Act Numbered injury or sickness.
Eleven hundred sixty-one, as amended,
or the wages or salary. (cc) "Replacement ratio" the sum of
twenty percent and the quotient
(y) "Average monthly salary credit" in obtained by dividing three hundred by
the case of the SSS means the result the sum of three hundred forty and the
obtained by dividing the sum of the average monthly salary credit.
monthly salary credits in the sixty-month
period immediately preceding the (dd) "Credited years of service" for a
semester of death or permanent member covered prior to January, 1975,
disability by sixty (60), except where the nineteen hundred seventy-five minus the
month of death or permanent disability calendar year of coverage, plus the
falls within eighteen (18) calendar number of calendar years in which six or
months from the month of coverage, in more contributions have been paid from
which case it is the result obtained by January, 1975 up to the calendar year
dividing the sum of all monthly salary containing the semester prior to the
credits paid prior to the month of the contingency. For a member covered on
contingency by the total number of or after January, 1975, the number of
calendar months of coverage in the same calendar years in which six or more
period. contributions have been paid from the
year of coverage up to the calendar year
(z) "Average daily salary credit" in the containing the semester prior to the
case of the SSS means the result contingency.
obtained by dividing the sum of the six
(6) highest monthly salary credits in the (ee) "Monthly income benefit" means the
twelve-month period immediately amount equivalent to one hundred
preceding the semester of sickness or fifteen percent of the sum of:
injury by one hundred eighty (180), The average monthly salary credit
except where the month of injury falls multiplied by the replacement ratio; and
within twelve (12) calendar months from
the first month of coverage, in which One and a half percent of the average
case it is the result obtained by dividing monthly salary credit for each credited
the sum of all monthly salary credits by year of service in excess of ten years;
thirty (30) times the number of calendar
months of coverage in the period. Provided, That the monthly income
benefit shall in no case be less than Two
In the case of the GSIS, the average Hundred Fifty Pesos (P250.00).
daily salary credit shall be the actual
daily salary or wage, or the monthly
salary or wage divided by the actual
CHAPTER II Coverage and Liability
ARTICLE 174. [168] Compulsory Title shall not bar the recovery of
Coverage. — Coverage in the State benefits as provided for in Section 699 of
Insurance Fund shall be compulsory the Revised Administrative Code,
upon all employers and their employees Republic Act Numbered Eleven Hundred
not over sixty (60) years of Sixty-One, as amended, Republic Act
age; Provided, That an employee who is Numbered Six Hundred Ten, as
over sixty (60) years of age and paying amended, Republic Act Numbered Forty-
contributions to qualify for the Eight Hundred Sixty-Four, as amended,
retirement or life insurance benefit and other laws whose benefits are
administered by the System shall be administered by the System or by other
subject to compulsory coverage. agencies of the government.

ARTICLE 175. [169] Foreign ARTICLE 180. [174] Liability of Third

Employment. — The Commission shall Parties. — (a) When the disability or
ensure adequate coverage of Filipino death is caused by circumstances
employees employed abroad, subject to creating a legal liability against a third
regulations as it may prescribe. party, the disabled employee or the
dependents, in case of his death, shall be
ARTICLE 176. [170] Effective Date of paid by the System under this Title. In
Coverage. — Compulsory coverage of case benefit is paid under this Title, the
the employer during the effectivity of System shall be subrogated to the rights
this Title shall take effect on the first day of the disabled employee or the
of his operation, and that of the dependents, in case of his death, in
employee, on the date of his accordance with the general law.
employment.
(b) Where the System recovers from
ARTICLE 177. [171] Registration. — such third party damages in excess of
Each employer and his employees shall those paid or allowed under this Title,
register with the System in accordance such excess shall be delivered to the
with its regulations. disabled employee or other persons
entitled thereto, after deducting the cost
ARTICLE 178. [172] Limitation of of proceedings and expenses of the
Liability. — The State Insurance Fund System.
shall be liable for compensation to the
employee or his dependents, except ARTICLE 181. [175] Deprivation of the
when the disability or death was Benefits. — Except as otherwise
occasioned by the employee's provided under this Title, no contract,
intoxication, willful intention to injure or regulation or device whatsoever shall
kill himself or another, notorious operate to deprive the employee or his
negligence, or otherwise provided under dependents of any part of the income
this Title. benefits and medical or related services
granted under this Title. Existing
ARTICLE 179. [173] Extent of Liability. medical services being provided by the
— Unless otherwise provided, the employer shall be maintained and
liability of the State Insurance Fund continued to be enjoyed by their
under this Title shall be exclusive and in employees.
place of all other liabilities of the
employer to the employee, his CHAPTER III Administration
dependents or anyone otherwise entitled
to receive damages on behalf of the ARTICLE 182. [176] Employees'
employee or his dependents. The Compensation Commission. — (a) To
payment of compensation under this initiate, rationalize, and coordinate the
policies of the employees' compensation ARTICLE 183. [177] Powers and Duties.
program, the Employees' Compensation — The Commission shall have the
Commission is hereby created to be following powers and duties:
composed of five ex-officio members,
namely: the Secretary of Labor and (a) To assess and fix a rate of
Employment as Chairman, the GSIS contribution from all employers;
General Manager, the SSS
Administrator, the Chairman of the (b) To determine the rate of contribution
Philippine Medical Care Commission, payable by an employer whose records
and the Executive Director of the ECC show a high frequency of work accidents
Secretariat, and two appointive or occupational diseases due to failure
members, one of whom shall represent by the said employer to observe
the employees and the other, the adequate safety measures;
employers, to be appointed by the (c) To approve rules and regulations
President of the Philippines for a term of governing the processing of claims and
six years. The appointive member shall the settlement of disputes arising
have at least five years' experience in therefrom as prescribed by the System;
workmen's compensation or social
security programs. All vacancies shall be (d) To initiate policies and programs
filled for the unexpired term only. toward adequate occupational health
and safety and accident prevention in
(b) The Vice Chairman of the the working environment, rehabilitation
Commission shall be alternated each other than those provided for under
year between the GSIS General Manager Article 190 hereof, and other related
and the SSS Administrator. The programs and activities, and to
presence of four members shall appropriate funds therefor;
constitute a quorum. Each member shall
receive a per diem of two hundred pesos (e) To make the necessary actuarial
for every meeting that is actually studies and calculations concerning the
attended by him, exclusive of actual, grant of constant help and income
ordinary and necessary travel and benefits for permanent disability or
representation expenses. In his absence, death and the rationalization of the
any member may designate an official of benefits for permanent disability and
the institution he serves on full-time death under the Title with benefits
basis as his representative to act in his payable by the System for similar
behalf. contingencies: Provided, That the
Commission may upgrade benefits and
(c) The general conduct of the add new ones subject to approval of the
operations and management functions of President; and Provided, further, That
the GSIS or SSS under this Title shall be the actuarial stability of the State
vested in its respective chief executive Insurance Fund shall be
officers, who shall be immediately guaranteed; Provided, finally, That such
responsible for carrying out the policies increases in benefits shall not require
of the Commission. any increases in contribution, except as
(d) The Commission shall have the status provided for in paragraph (b) hereof;
and category of a government (f) To appoint the personnel of its staff,
corporation, and it is hereby deemed subject to civil service law and rules, but
attached to the Department of Labor for exempt from WAPCO law and
policy coordination and guidance. regulations;
(g) To adopt annually a budget of occupational health and safety
expenditures of the Commission and its programs, incidental to the carrying out
staff chargeable against the State of this Title.
Insurance Fund: Provided, That the SSS
and GSIS shall advance on a quarterly ARTICLE 185. [179] Investment of
basis the remittances of allotment of the Funds. — Provisions of existing laws to
loading fund for the Commission's the contrary notwithstanding, all
operational expenses based on its annual revenues as are not needed to meet
budget as duly approved by the Ministry current operational expenses under this
of Budget and Management; Title shall be accumulated in a fund to
be known as the State Insurance Fund,
(h) To have the power to administer oath which shall be used exclusively for
and affirmation, and to issue subpoena payment of the benefits under this Title,
and subpoena duces tecum in connection and no amount thereof shall be used for
with any question or issue arising from any other purpose. All amounts accruing
appealed cases under this Title; to the State Insurance Fund, which is
hereby established in the SSS and GSIS,
(i) To sue and be sued in court; respectively, shall be deposited with any
authorized depository bank approved by
(j) To acquire property, real or personal, the Commission, or invested with due
which may be necessary or expedient for and prudent regard for the liquidity
the attainment of the purposes of this needs of the System.
Title;
ARTICLE 186. [180] Settlement of
(k) To enter into agreements or Claims. — The System shall have original
contracts for such services and as may and exclusive jurisdiction to settle any
be needed for the proper, efficient and dispute arising from this Title with
stable administration of the program; respect to coverage, entitlement to
(l) To perform such other acts as it may benefits, collection and payment of
deem appropriate for the attainment of contributions and penalties thereon, or
the purposes of the Commission and any other matter related thereto, subject
proper enforcement of the provisions of to appeal to the Commission, which shall
this Title. decide appealed cases within twenty
(20) working days from the submission
ARTICLE 184. [178] Management of of the evidence.
Funds. — All revenues collected by the
System under this Title shall be ARTICLE 187. [181] Review. —
deposited, invested, administered and Decisions, orders or resolutions of the
disbursed in the same manner and under Commission may be reviewed
the same conditions, requirements and on certiorari by the Supreme Court on
safeguards as provided by Republic Act question of law upon petition of an
Numbered Eleven Hundred Sixty-One, as aggrieved party within ten (10) days
amended, with regard to such other from notice thereof.
funds as are thereunder being paid to or ARTICLE 188. [182] Enforcement of
collected by the SSS and GSIS, Decisions. — (a) Any decision, order or
respectively: Provided, That the resolution of the Commission shall
Commission, SSS and GSIS may become final and executory if no appeal
disburse each year not more than twelve is taken therefrom within ten (10) days
percent of the contribution and from notice thereof. All awards granted
investment earnings collected for by the Commission in cases appealed
operational expenses, including from decisions of the System shall be
effected within fifteen days from receipt pay the monthly contribution arising
of notice. from that employment shall cease at the
end of the month of contingency and
(b) In all other cases, decisions, orders during such months that he is not
and resolutions of the Commission which receiving wages or salary.
have become final and executory shall be
enforced and executed in the same ARTICLE 190. [184] Government
manner as decisions of the Court of First Guarantee. — The Republic of the
Instance, and the Commission shall have Philippines guarantees the benefits
the power to issue to the city or prescribed under this Title, and accepts
provincial sheriff or to the sheriff whom general responsibility for the solvency of
it may appoint, such writs of execution the State Insurance Fund. In case of any
as may be necessary for the enforcement deficiency, the same shall be covered by
of such decisions, orders or resolutions, supplemental appropriations from the
and any person who shall fail or refuse national government.
to comply therewith shall, upon
application by the Commission, be
punished by the proper court for
contempt. CHAPTER V Medical Benefits

CHAPTER IV Contributions ARTICLE 191. [185] Medical Services. —

Immediately after an employee contracts
ARTICLE 189. [183] Employers' sickness or sustains an injury, he shall
Contributions. — (a) Under such be provided by the System during the
regulations as the System may subsequent period of his disability with
prescribe, beginning as of the last day of such medical services and appliances as
the month when an employee's the nature of his sickness or injury and
compulsory coverage takes effect and progress of his recovery may require,
every month thereafter during his subject to the expense limitation
employment, his employer shall prepare prescribed by the Commission.
to remit to the System a contribution
equivalent to one (1) percent of his ARTICLE 192. [186] Liability. — The
monthly salary credit. System shall have the authority to
choose or order a change of physician,
(b) The rate of contribution shall be hospital or rehabilitation facility for the
reviewed periodically and, subject to the employee, and shall not be liable for
limitations herein provided, may be compensation for any aggravation of the
revised as the experience in risk, cost of employee's injury or sickness resulting
administration, and actual or anticipated from unauthorized changes by the
as well as unexpected losses, may employee of medical services,
require. appliances, supplies, hospitals,
rehabilitation facilities or physicians.
(c) Contributions under this Title shall
be paid in their entirety by the employer ARTICLE 193. [187] Attending
and any contract or device for the Physician. — Any physician attending an
deduction of any portion thereof from injured or sick employee shall comply
the wages or salaries of the employees with all the regulations of the System
shall be null and void. and submit reports in prescribed forms
at such time as may be required
(d) When a covered employee dies, concerning his condition or treatment.
becomes disabled or is separated from All medical information relevant to the
employment, his employer's obligation to particular injury or sickness shall, on
demand, be made available to the assessment and preparation designed to
employee or the System. No information meet the individual needs of each
developed in connection with treatment handicapped employee to restore him to
or examination for which compensation suitable employment, including
is sought shall be considered as assistance as may be within its
privileged communication. resources, to help each rehabilitee to
develop his mental, vocational or social
ARTICLE 194. [188] Refusal of potential.
Examination or Treatment. — If the
employee unreasonably refuses to CHAPTER VI Disability Benefits
submit to medical examination or
treatment, the System shall stop the ARTICLE 197. [191] Temporary Total
payment of further compensation during Disability. — (a) Under such regulations
such time as such refusal continues. as the Commission may approve, any
What constitutes an unreasonable employee under this Title who sustains
refusal shall be determined by the an injury or contracts sickness resulting
System which may, on its own initiative, in temporary total disability shall, for
determine the necessity, character and each day of such a disability or fraction
sufficiency of any medical services thereof, be paid by the System an
furnished or to be furnished. income benefit equivalent to ninety
percent of his average daily salary
ARTICLE 195. [189] Fees and Other credit, subject to the following
Charges. — All fees and other charges conditions: the daily income benefit shall
for hospital services, medical care and not be less than Ten Pesos nor more
appliances, including professional fees, than Ninety Pesos, nor paid for a
shall not be higher than those prevailing continuous period longer than one
in wards of hospitals for similar services hundred twenty days, except as
to injured or sick persons in general and otherwise provided for in the Rules, and
shall be subject to the regulations of the the System shall be notified of the injury
Commission. Professional fees shall only or sickness.
be appreciably higher than those
prescribed under Republic Act (b) The payment of such income benefit
Numbered Sixty-One Hundred Eleven, as shall be in accordance with the
amended, otherwise known as the regulations of the Commission.
Philippine Medical Care Act of 1969.
ARTICLE 198. [192] Permanent Total
ARTICLE 196. [190] Rehabilitation Disability. — (a) Under such regulations
Services. — (a) The System shall, as soon as the Commission may approve, any
as practicable, establish a continuing employee under this Title who contracts
program, for the rehabilitation of injured sickness or sustains an injury resulting
and handicapped employees who shall in his permanent total disability shall, for
be entitled to rehabilitation services, each month until his death, be paid by
which shall consist of medical, surgical the System during such a disability, an
or hospital treatment, including amount equivalent to the monthly
appliances if they have been income benefit, plus ten percent thereof
handicapped by the injury, to help them for each dependent child, but not
become physically independent. exceeding five, beginning with the
youngest and without
(b) As soon as practicable, the System substitution: Provided, That the monthly
shall establish centers equipped and income benefit shall be the new amount
staffed to provide a balanced program of of the monthly benefit for all covered
remedial treatment, vocational
pensioners, effective upon approval of (b) The benefit shall be paid for not more
this Decree. than the period designated in the
following schedules:
(b) The monthly income benefit shall be (c) A loss of a wrist shall be considered
guaranteed for five years, and shall be as a loss of the hand, and a loss of an
suspended if the employee is gainfully elbow shall be considered as a loss of
employed, or recovers from his the arm. A loss of an ankle shall be
permanent total disability, or fails to considered as loss of a foot, and a loss of
present himself for examination at least a knee shall be considered as a loss of
once a year upon notice by the System, the leg. A loss of more than one joint
except as otherwise provided for in other shall be considered as a loss of one-half
laws, decrees, orders or Letters of of the whole finger or toe: Provided, That
Instructions. such a loss shall be either the functional
loss of the use or physical loss of the
(c) The following disabilities shall be member.
deemed total and permanent:
(d) In case of permanent partial
(1) Temporary total disability lasting disability less than the total loss of the
continuously for more than one hundred member specified in the preceding
twenty days, except as otherwise paragraph, the same monthly income
provided for in the Rules; benefit shall be paid for a portion of the
(2) Complete loss of sight of both eyes; period established for the total loss of
the member in accordance with the
(3) Loss of two limbs at or above the proportion that the partial loss bears to
ankle or wrist; the total loss. If the result is a decimal
fraction, the same shall be rounded off to
(4) Permanent complete paralysis of two the next higher integer.
limbs;
(e) In cases of simultaneous loss of more
(5) Brain injury resulting in incurable than one member or a part thereof as
imbecility or insanity; and specified in this Article, the same
monthly income benefit shall be paid for
(6) Such cases as determined by the a period equivalent to the sum of the
Medical Director of the System and periods established for the loss of the
approved by the Commission. member or the part thereof. If the result
is a decimal fraction, the same shall be
(d) The number of months of paid rounded off to the next higher integer.
coverage shall be defined and
approximated by a formula to be (f) In cases of injuries or illnesses
approved by the Commission. resulting in a permanent partial
disability not listed in the preceding
ARTICLE 199. [193] Permanent Partial schedule, the benefit shall be an income
Disability. — (a) Under such regulations benefit equivalent to the percentage of
as the Commission may approve, any the permanent loss of the capacity to
employee under this Title who contracts work.
sickness or sustains an injury resulting
in permanent partial disability shall, for (g) Under such regulations as the
each month not exceeding the period Commission may approve, the income
designated herein, be paid by the benefit payable in case of permanent
System during such a disability an partial disability may be paid in monthly
income benefit for permanent total pension or in lump sum if the period
disability. covered does not exceed one year.
CHAPTER VII Death Benefits shall be paid upon the death of a covered
employee or permanently totally
ARTICLE 200. [194] Death. — (a) Under disabled pensioner.
such regulations as the Commission may
approve, the System shall pay to the CHAPTER VIII Provisions Common
primary beneficiaries upon the death of to Income Benefits
the covered employee under this Title,
an amount equivalent to his monthly ARTICLE 201. [195] Relationship and
income benefit, plus ten percent thereof Dependency. — All questions of
for each dependent child, but not relationship and dependency shall be
exceeding five, beginning with the determined as of the time of death.
youngest and without substitution,
except as provided for in paragraph (j) of ARTICLE 202. [196] Delinquent
Article 167 hereof: Provided, however, Contributions. — (a) An employer who is
That the monthly income benefit shall be delinquent in his contributions shall be
guaranteed for five years: Provided, liable to the System for the benefits
further, That if he has no primary which may have been paid by the System
beneficiary, the System shall pay to his to his employees or their dependents,
secondary beneficiaries the monthly and any benefit and expenses to which
income benefit but not to exceed sixty such employer is liable shall constitute a
months: Provided, finally, That the lien on all his property, real or personal,
minimum death benefit shall not be less which is hereby declared to be preferred
than fifteen thousand pesos. to any credit, except taxes. The payment
by the employer of the lump sum
(b) Under such regulations as the equivalent of such liability shall absolve
Commission may approve, the System him from the payment of the delinquent
shall pay to the primary beneficiaries contribution and penalty thereon with
upon the death of a covered employee respect to the employee concerned.
who is under permanent total disability
under this Title, eighty percent of the (b) Failure or refusal of the employer to
monthly income benefit and his pay or remit the contribution herein
dependents to the dependents' prescribed shall not prejudice the right
pension: Provided, That the marriage of the employee or his dependents to the
must have been validly subsisting at the benefits under this Title. If the sickness,
time of disability: Provided, further, That injury, disability or death occurs before
if he has no primary beneficiary, the the System receives any report of the
System shall pay to his secondary name of his employee, the employer
beneficiaries the monthly pension shall be liable to the System for the lump
excluding the dependents' pension, of sum equivalent to the benefits to which
the remaining balance of the five-year such employee or his dependents may be
guaranteed period: Provided, finally, entitled.
That the minimum death benefit shall
ARTICLE 203. [197] Second Injuries. —
not be less than fifteen thousand pesos.
If any employee under permanent partial
(c) The monthly income benefit provided disability suffers another injury which
herein shall be the new amount of the results in a compensable disability
monthly income benefit for the surviving greater than the previous injury, the
beneficiaries upon the approval of this State Insurance Fund shall be liable for
decree. the income benefit of the new
disability: Provided, That if the new
(d) Funeral benefit. — A funeral benefit disability is related to the previous
of Three Thousand Pesos (P3,000.00)
disability, the System shall be liable only inferior in right to another dependent or
for the difference in income benefits. with whom another dependent is entitled
to share, such payments shall discharge
ARTICLE 204. [198] Assignment of the System from liability, unless and
Benefits. — No claim for compensation until such other dependent notifies the
under this Title is transferable or liable System of his claim prior to the
to tax, attachment, garnishment, levy or payments.
seizure by or under any legal process
whatsoever, either before or after (b) In case of doubt as to the respective
receipt by the person or persons entitled rights of rival claimants, the System is
thereto, except to pay any debt of the hereby empowered to determine as to
employee to the System. whom payments should be made in
accordance with such regulations as the
ARTICLE 205. [199] Earned Benefits. — Commission may approve. If the money
Income benefits shall, with respect to is payable to a minor or incompetent,
any period of disability, be payable in payment shall be made by the System to
accordance with this Title to an such person or persons as it may
employee who is entitled to receive consider to be best qualified to take care
wages, salaries or allowances for and dispose of the minor's or
holidays, vacation or sick leaves and any incompetent's property for his benefit.
other award of benefit under a collective
bargaining or other agreement. ARTICLE 209. [203] Prohibition. — No
agent, attorney or other person pursuing
ARTICLE 206. [200] Safety Devices. — or in charge of the preparation or filing
In case the employee's injury or death of any claim for benefit under this Title
was due to the failure of the employer to shall demand or charge for his services
comply with any law or to install and any fee, and any stipulation to the
maintain safety devices or to take other contrary shall be null and void. The
precautions for the prevention of injury, retention or deduction of any amount
said employer shall pay the State from any benefit granted under this Title
Insurance Fund a penalty of twenty-five for the payment of fees for such services
percent (25%) of the lump sum is prohibited. Violation of any provision
equivalent of the income benefit payable of this Article shall be punished by a fine
by the System to the employee. All of not less than Five Hundred Pesos nor
employers, especially those who should more than Five Thousand Pesos, or
have been paying a rate of contribution imprisonment for not less than six
higher than required of them under this months nor more than one year, or both,
Title, are enjoined to undertake and at the discretion of the court.
strengthen measures for the
occupational health and safety of their ARTICLE 210. [204] Exemption from
employees. Levy, Tax, etc. — All laws to the contrary
notwithstanding, the State Insurance
ARTICLE 207. [201] Prescriptive Period. Fund and all its assets shall be exempt
— No claim for compensation shall be from any tax, fee, charge, levy, or
given due course unless said claim is customs or import duty and no law
filed with the System within three (3) hereafter enacted shall apply to the
years from the time the cause of action State Insurance Fund unless it is
accrued. provided therein that the same is
applicable by expressly stating its name.
ARTICLE 208. [202] Erroneous Payment.
— (a) If the System in good faith pays CHAPTER IX Records, Reports and
income benefit to a dependent who is Penal Provisions
ARTICLE 211. [205] Record of Death or ARTICLE 212. [206] Notice of Sickness,
Disability. — (a) All employers shall keep Injury or Death. — Notice of sickness,
a logbook to record chronologically the injury or death shall be given to the
sickness, injury or death of their employer by the employee or by his
employees, setting forth therein their dependents or anybody on his behalf
names, dates and places of the within five days from the occurrence of
contingency, nature of the contingency the contingency. No notice to the
and absences. Entries in the logbook employer shall be required if the
shall be made within five days from contingency is known to the employer or
notice or knowledge of the occurrence of his agents or representatives.
the contingency. Within five days after
entry in the logbook, the employer shall ARTICLE 213. [207] Penal Provisions. —
report to the System only those (a) The penal provisions of Republic Act
contingencies he deems to be work- Numbered Eleven Hundred Sixty-One, as
connected. amended, and Commonwealth Act
Numbered One Hundred Eighty-Six, as
(b) All entries in the employer's logbook amended, with regard to the funds as
shall be made by the employer or any of are thereunder being paid to, collected
his authorized officials after verification or disbursed by the System, shall be
of the contingencies or the employees' applicable to the collection,
absences for a period of a day or more. administration and disbursement of the
Upon request by the System, the Funds under this Title. The penal
employer shall furnish the necessary provisions on coverage shall also be
certificate regarding information about applicable.
any contingency appearing in the
logbook, citing the entry number, page (b) Any person who, for the purpose of
number and date. Such logbook shall be securing entitlement to any benefit or
made available for inspection to the duly payment under this Title, or the issuance
authorized representatives of the of any certificate or document for any
System. purpose connected with this Title,
whether for him or for some other
(c) Should any employer fail to record in person, commits fraud, collusion,
the logbook an actual sickness, injury or falsification, misrepresentation of facts
death of any of his employees within the or any other kind of anomaly, shall be
period prescribed herein, give false punished with a fine of not less than Five
information or withhold material Hundred Pesos nor more than Five
information already in his possession, he Thousand Pesos and an imprisonment
shall be held liable for fifty percent of for not less than six months nor more
the lump sum equivalent of the income than one year, at the discretion of the
benefit to which the employee may be court.
found to be entitled, the payment of
which shall accrue to the State (c) If the act penalized by this Article is
Insurance Fund. committed by any person who has been
or is employed by the Commission or
(d) In case of payment of benefits for any System, or a recidivist, the imprisonment
claim which is later determined to be shall not be less than one year; if
fraudulent and the employer is found to committed by a lawyer, physician or
be a party to the fraud, such employer other professional, he shall, in addition
shall reimburse the System the full to the penalty prescribed herein, be
amount of the compensation paid. disqualified from the practice of his
profession; and if committed by any
official, employee or personnel of the
Commission, System or any government (a) To promote and emphasize the
agency, he shall, in addition to the primacy of free collective bargaining and
penalty prescribed herein, be dismissed negotiations, including voluntary
with prejudice to re-employment in the arbitration, mediation and conciliation,
government service. as modes of settling labor or industrial
disputes;
ARTICLE 214. [208] Applicability. —
This Title shall apply only to injury, (b) To promote free trade unionism as an
sickness, disability or death occurring on instrument for the enhancement of
or after January 1, 1975. democracy and the promotion of social
justice and development;
ARTICLE 215. [208-A] Repeal. — All
existing laws, Presidential Decrees and (c) To foster the free and voluntary
Letters of Instruction which are organization of a strong and united labor
inconsistent with or contrary to this movement;
Decree, are hereby repealed: Provided,
That in the case of the GSIS, conditions (d) To promote the enlightenment of
for entitlement to benefits shall be workers concerning their rights and
governed by the Labor Code, as obligations as union members and as
amended: Provided, however, That the employees;
formulas for computation of benefits, as
well as the contribution base, shall be (e) To provide an adequate
those provided under Commonwealth administrative machinery for the
Act Numbered One Hundred Eighty-Six, expeditious settlement of labor or
as amended by Presidential Decree No. industrial disputes;
1146, plus twenty percent (20%) thereof. (f) To ensure a stable but dynamic and
TITLE III Medicare just industrial peace; and

ARTICLE 216. [209] Medical Care. — (g) To ensure the participation of

The Philippine Medical Care Plan shall workers in decision and policy-making
be implemented as provided under processes affecting their rights, duties
Republic Act Numbered Sixty-One and welfare.
Hundred Eleven, as amended.
B. To encourage a truly democratic
TITLE IV Adult Education method of regulating the relations
between the employers and employees
ARTICLE 217. [210] Adult Education. — by means of agreements freely entered
Every employer shall render assistance into through collective bargaining, no
in the establishment and operation of court or administrative agency or official
adult education programs for their shall have the power to set or fix wages,
workers and employees as prescribed by rates of pay, hours of work or other
regulations jointly approved by the terms and conditions of employment,
Department of Labor and Employment except as otherwise provided under this
and the Department of Education, Code.
Culture and Sports.
CHAPTER II Definitions
TITLE I Policy and Definitions
ARTICLE 219. [212] Definitions. —
CHAPTER I Policy (a) "Commission" means the National
Labor Relations Commission or any of its
ARTICLE 218. [211] Declaration of divisions, as the case may be, as
Policy. — A. It is the policy of the State: provided under this Code.
(b) "Bureau" means the Bureau of Labor any act defined as unfair labor practice
Relations and/or the Labor Relations by this Code.
Divisions in the regional offices
established under Presidential Decree (j) "Bargaining representative" means a
No. 1, in the Department of Labor. legitimate labor organization or any
officer or agent of such organization
(c) "Board" means the National whether or not employed by the
Conciliation and Mediation Board employer.
established under Executive Order No.
126. (k) "Unfair labor practice" means any
unfair labor practice as expressly
(d) "Council" means the Tripartite defined by this Code.
Voluntary Arbitration Advisory Council
established under Executive Order No. (l) "Labor dispute" includes any
126, as amended. controversy or matter concerning terms
and conditions of employment or the
(e) "Employer" includes any person association or representation of persons
acting in the interest of an employer, in negotiating, fixing, maintaining,
directly or indirectly. The term shall not changing or arranging the terms and
include any labor organization or any of conditions of employment, regardless of
its officers or agents except when acting whether the disputants stand in the
as employer. proximate relation of employer and
employee.
(f) "Employee" includes any person in
the employ of an employer. The term (m) "Managerial employee" is one who is
shall not be limited to the employees of a vested with the powers or prerogatives
particular employer, unless the Code so to lay down and execute management
explicitly states. It shall include any policies and/or to hire, transfer, suspend,
individual whose work has ceased as a lay-off, recall, discharge, assign or
result of or in connection with any discipline employees. Supervisory
current labor dispute or because of any employees are those who, in the interest
unfair labor practice if he has not of the employer, effectively recommend
obtained any other substantially such managerial actions if the exercise
equivalent and regular employment. of such authority is not merely routinary
or clerical in nature but requires the use
(g) "Labor organization" means any of independent judgment. All employees
union or association of employees which not falling within any of the above
exists in whole or in part for the purpose definitions are considered rank-and-file
of collective bargaining or of dealing employees for purposes of this Book.
with employers concerning terms and
conditions of employment. (n) "Voluntary Arbitrator" means any
person accredited by the Board as such,
(h) "Legitimate labor or any person named or designated in
organization" means any labor the Collective Bargaining Agreement by
organization duly registered with the the parties to act as their Voluntary
Department of Labor and Employment, Arbitrator, or one chosen with or without
and includes any branch or local thereof. the assistance of the National
Conciliation and Mediation Board,
(i) "Company union" means any labor pursuant to a selection procedure
organization whose formation, function agreed upon in the Collective Bargaining
or administration has been assisted by Agreement, or any official that may be
authorized by the Secretary of Labor and
Employment to act as Voluntary coordination, composed of a Chairman
Arbitrator upon the written request and and twenty-three (23) members.
agreement of the parties to a labor
dispute. Eight (8) members each shall be chosen
only from among the nominees of the
(o) "Strike" means any temporary workers and employers organizations,
stoppage of work by the concerted respectively. The Chairman and the
action of employees as a result of an seven (7) remaining members shall come
industrial or labor dispute. from the public sector, with the latter to
be chosen preferably from among the
(p) "Lockout" means any temporary incumbent labor arbiters.
refusal of an employer to furnish work as
a result of an industrial or labor dispute. Upon assumption into office, the
members nominated by the workers and
(q) "Internal union dispute" includes all employers organizations shall divest
disputes or grievances arising from any themselves of any affiliation with or
violation of or disagreement over any interest in the federation or association
provision of the constitution and by laws to which they belong.
of a union, including any violation of the
rights and conditions of union The Commission may sit en banc or in
membership provided for in this Code. eight (8) divisions, each composed of
three (3) members. The Commission
(r) "Strike-breaker" means any person shall sit en banc only for purposes of
who obstructs, impedes, or interferes promulgating rules and regulations
with by force, violence, coercion, governing the hearing and disposition of
threats, or intimidation any peaceful cases before any of its divisions and
picketing affecting wages, hours or regional branches and formulating
conditions of work or in the exercise of policies affecting its administration and
the right of self-organization or operations. The Commission shall
collective bargaining. exercise its adjudicatory and all other
powers, functions and duties through its
(s) "Strike area" means the divisions. Of the eight (8) divisions, the
establishment, warehouses, depots, first, second, third, fourth, fifth and sixth
plants or offices, including the sites or divisions shall handle cases coming from
premises used as runaway shops, of the the National Capital Region and other
employer struck against, as well as the parts of Luzon, and the seventh and
immediate vicinity actually used by eighth divisions, cases from the Visayas
picketing strikers in moving to and fro and Mindanao, respectively: Provided,
before all points of entrance to and exit That the Commission sitting en banc
from said establishment. may, on temporary or emergency basis,
TITLE II National Labor Relations allow cases within the jurisdiction of any
Commission division to be heard and decided by any
other division whose docket allows the
CHAPTER I Creation and additional workload and such transfer
Composition will not expose litigants to unnecessary
additional expense. The divisions of the
ARTICLE 220. [213] National Labor Commission shall have exclusive
Relations Commission. — There shall be appellate jurisdiction over cases within
a National Labor Relations Commission their respective territorial jurisdiction.
which shall be attached to the
Department of Labor and Employment The concurrence of two (2)
solely for program and policy Commissioners of a division shall be
necessary for the pronouncement of discharged by the Clerk of Court and
judgment or resolution. Whenever the Deputy Clerks of Court of the Court of
required membership in a division is not Appeals.
complete and the concurrence of two (2)
Commissioners to arrive at a judgment The Commission and its eight (8)
or resolution cannot be obtained, the divisions shall be assisted by the
Chairman shall designate such number Commission Attorneys in its appellate
of additional Commissioners from the and adjudicatory functions whose term
other divisions as may be necessary. shall be coterminous with the
Commissioners with whom they are
The conclusions of a division on any case assigned. The Commission Attorneys
submitted to it for decision shall be shall be members of the Philippine Bar
reached in consultation before the case with at least one (1) year experience or
is assigned to a member for the writing exposure in the field of labor-
of the opinion. It shall be mandatory for management relations. They shall
the division to meet for purposes of the receive annual salaries and shall be
consultation ordained therein. A entitled to the same allowances and
certification to this effect signed by the benefits as those falling under Salary
Presiding Commissioner of the division Grade twenty-six (SG 26). There shall be
shall be issued, and a copy thereof as many Commission Attorneys as may
attached to the record of the case and be necessary for the effective and
served upon the parties. efficient operation of the Commission
but in no case more than five (5)
The Chairman shall be the Presiding assigned to the Office of the Chairman
Commissioner of the first division, and and each Commissioner. (as amended
the seven (7) other members from the by Republic Act No. 10741, [January
public sector shall be the Presiding 12, 2016])
Commissioners of the second, third,
fourth, fifth, sixth, seventh and eighth ARTICLE 221. [214] Headquarters,
divisions, respectively. In case of the Branches and Provincial Extension
effective absence or incapacity of the Units. — The Commission and its first,
Chairman, the Presiding Commissioner second, third, fourth, fifth and sixth
of the second division shall be the Acting divisions shall have their main offices in
Chairman. Metropolitan Manila, and the seventh
and eight divisions in the cities of Cebu
The Chairman, aided by the Executive and Cagayan de Oro, respectively. The
Clerk of the Commission, shall have Commission shall establish as many
exclusive administrative supervision regional branches as there are regional
over the Commission and its regional offices of the Department of Labor and
branches and all its personnel, including Employment, sub-regional branches or
the Labor Arbiters. provincial extension units. There shall be
as many Labor Arbiters as may be
The Commission, when sitting en banc, necessary for the effective and efficient
shall be assisted by the same Executive operation of the Commission.
Clerk, and, when acting thru its
Divisions, by said Executive Clerk for its ARTICLE 222. [215] Appointment and
first division and seven (7) other Deputy Qualifications. — The Chairman and
Executive Clerks for the second, third, other Commissioners shall be members
fourth, fifth, sixth, seventh and eighth of the Philippine Bar and must have been
Divisions, respectively, in the engaged in the practice of law in the
performance of such similar or Philippines for at least fifteen (15) years,
equivalent functions and duties as are
with at least five (5) years experience or ARTICLE 223. [216] Salaries, Benefits
exposure in the field of labor- and Emoluments. — The Chairman and
management relations, and shall members of the Commission shall have
preferably be residents of the region the same rank, receive an annual salary
where they shall hold office. The Labor equivalent to, and be entitled to the
Arbiters shall likewise be members of same allowances, retirement and
the Philippine Bar and must have been benefits as those of the Presiding Justice
engaged in the practice of law in the and Associate Justices of the Court of
Philippines for at least ten (10) years, Appeals, respectively. Labor Arbiters
with at least five (5) years experience or shall have the same rank, receive an
exposure in the field of labor- annual salary equivalent to and be
management relations. entitled to the same allowances,
retirement and other benefits and
The Chairman, the other Commissioners privileges as those of the judges of the
and the Labor Arbiters shall hold office Regional Trial Courts. In no case,
during good behavior until they reach however, shall the provision of this
the age of sixty-five (65) years, unless Article result in the diminution of the
sooner removed for cause as provided by existing salaries, allowances and
law or become incapacitated to benefits of the aforementioned officials.
discharge the duties of their office:
Provided, however, That the President of CHAPTER II Powers and Duties
the Republic of the Philippines may
extend the services of the ARTICLE 224. [217] Jurisdiction of the
Commissioners and Labor Arbiters up to Labor Arbiters and the Commission. —
the maximum age of seventy (70) years (a) Except as otherwise provided under
upon the recommendation of the this Code, the Labor Arbiters shall have
Commission en banc. original and exclusive jurisdiction to
hear and decide, within thirty (30)
The Chairman, the Division Presiding calendar days after the submission of the
Commissioners and other case by the parties for decision without
Commissioners shall all be appointed by extension, even in the absence of
the President. Appointment to any stenographic notes, the following cases
vacancy in a specific division shall come involving all workers, whether
only from the nominees of the sector agricultural or non-agricultural:
which nominated the predecessor. The
Labor Arbiters shall also be appointed by (1) Unfair labor practice cases;
the President, upon the recommendation
of the Commission en banc, and shall be (2) Termination disputes;
subject to the Civil Service Law, rules
(3) If accompanied with a claim for
and regulations.
reinstatement, those cases that workers
The Chairman of the Commission shall may file involving wages, rates of pay,
appoint the staff and employees of the hours of work and other terms and
Commission and its regional branches as conditions of employment;
the needs of the service may require,
(4) Claims for actual, moral, exemplary
subject to the Civil Service Law, rules
and other forms of damages arising from
and regulations, and upgrade their
the employer-employee relations;
current salaries, benefits and other
emoluments in accordance with law. (as (5) Cases arising from any violation of
amended by Republic Act No. 10741, Article 264 of this Code, including
[January 12, 2016])
questions involving the legality of strikes (c) To conduct investigation for the
and lockouts; and determination of a question, matter or
controversy within its jurisdiction,
(6) Except claims for Employees proceed to hear and determine the
Compensation, Social Security, Medicare disputes in the absence of any party
and maternity benefits, all other claims thereto who has been summoned or
arising from employer-employee served with notice to appear, conduct its
relations, including those of persons in proceedings or any part thereof in public
domestic or household service, involving or in private, adjourn its hearings to any
an amount exceeding five thousand time and place, refer technical matters
pesos (P5,000.00) regardless of whether or accounts to an expert and to accept
accompanied with a claim for his report as evidence after hearing of
reinstatement. the parties upon due notice, direct
parties to be joined in or excluded from
(b) The Commission shall have exclusive the proceedings, correct, amend, or
appellate jurisdiction over all cases waive any error, defect or irregularity
decided by Labor Arbiters. whether in substance or in form, give all
(c) Cases arising from the interpretation such directions as it may deem
or implementation of collective necessary or expedient in the
bargaining agreements and those arising determination of the dispute before it,
from the interpretation or enforcement and dismiss any matter or refrain from
of company personnel policies shall be further hearing or from determining the
disposed of by the Labor Arbiter by dispute or part thereof, where it is trivial
referring the same to the grievance or where further proceedings by the
machinery and voluntary arbitration as Commission are not necessary or
may be provided in said agreements. desirable; and

ARTICLE 225. [218] Powers of the (d) To hold any person in contempt
Commission. — The Commission shall directly or indirectly and impose
have the power and authority: appropriate penalties therefor in
accordance with law.
(a) To promulgate rules and regulations
governing the hearing and disposition of A person guilty of misbehavior in the
cases before it and its regional branches, presence of or so near the Chairman or
as well as those pertaining to its internal any member of the Commission or any
functions and such rules and regulations Labor Arbiter as to obstruct or interrupt
as may be necessary to carry out the the proceedings before the same,
purposes of this Code; including disrespect toward said
officials, offensive personalities toward
(b) To administer oaths, summon the others, or refusal to be sworn, or to
parties to a controversy, issue subpoenas answer as a witness or to subscribe an
requiring the attendance and testimony affidavit or deposition when lawfully
of witnesses or the production of such required to do so, may be summarily
books, papers, contracts, records, adjudged in direct contempt by said
statement of accounts, agreements, and officials and punished by fine not
others as may be material to a just exceeding five hundred pesos (P500) or
determination of the matter under imprisonment not exceeding five (5)
investigation, and to testify in any days, or both, if it be the Commission or
investigation or hearing conducted in a member thereof, or by a fine not
pursuance of this Code; exceeding one hundred pesos (P100) or
imprisonment not exceeding one (1) day, threat or committing the prohibited or
or both, if it be a Labor Arbiter. unlawful act or actually authorizing or
ratifying the same after actual
The person adjudged in direct contempt knowledge thereof;
by a Labor Arbiter may appeal to the
Commission and the execution of the (2) That substantial and irreparable
judgment shall be suspended pending injury to complainant's property will
the resolution of the appeal upon the follow;
filing by such person of a bond on
condition that he will abide by and (3) That as to each item of relief to be
perform the judgment of the Commission granted, greater injury will be inflicted
should the appeal be decided against upon complainant by the denial of relief
him. Judgment of the Commission on than will be inflicted upon defendants by
direct contempt is immediately the granting of relief;
executory and unappealable. Indirect
contempt shall be dealt with by the (4) That complainant has no adequate
Commission or Labor Arbiter in the remedy at law; and
manner prescribed under Rule 71 of the (5) That the public officers charged with
Revised Rules of Court; and the duty to protect complainant's
(e) To enjoin or restrain any actual or property are unable or unwilling to
threatened commission of any or all furnish adequate protection.
prohibited or unlawful acts or to require Such hearing shall be held after due and
the performance of a particular act in personal notice thereof has been served,
any labor dispute which, if not in such manner as the Commission shall
restrained or performed forthwith, may direct, to all known persons against
cause grave or irreparable damage to whom relief is sought, and also to the
any party or render ineffectual any Chief Executive and other public officials
decision in favor of such of the province or city within which the
party: Provided, That no temporary or unlawful acts have been threatened or
permanent injunction in any case committed, charged with the duty to
involving or growing out of a labor protect complainant's
dispute as defined in this Code shall be property: Provided, however, That if a
issued except after hearing the complainant shall also allege that, unless
testimony of witnesses, with opportunity a temporary restraining order shall be
for cross-examination, in support of the issued without notice, a substantial and
allegations of a complaint made under irreparable injury to complainant's
oath, and testimony in opposition property will be unavoidable, such a
thereto, if offered, and only after a temporary restraining order may be
finding of fact by the Commission, to the issued upon testimony under oath,
effect: sufficient, if sustained, to justify the
(1) That prohibited or unlawful acts have Commission in issuing a temporary
been threatened and will be committed injunction upon hearing after notice.
unless restrained, or have been Such a temporary restraining order shall
committed and will be continued unless be effective for no longer than twenty
restrained, but no injunction or (20) days and shall become void at the
temporary restraining order shall be expiration of said twenty (20) days. No
issued on account of any threat, such temporary restraining order or
prohibited or unlawful act, except temporary injunction shall be issued
against the person or persons, except on condition that complainant
association or organization making the shall first file an undertaking with
adequate security in an amount to be laborer, or any person, as the case may
fixed by the Commission sufficient to be, for any information or data
recompense those enjoined for any loss, concerning any matter or question
expense or damage caused by the relative to the object of the investigation.
improvident or erroneous issuance of
such order or injunction, including all ARTICLE 227. [221] Technical Rules Not
reasonable costs, together with a Binding and Prior Resort to Amicable
reasonable attorney's fee, and expense Settlement. — In any proceeding before
of defense against the order or against the Commission or any of the Labor
the granting of any injunctive relief Arbiters, the rules of evidence prevailing
sought in the same proceeding and in courts of law or equity shall not be
subsequently denied by the Commission. controlling and it is the spirit and
intention of this Code that the
The undertaking herein mentioned shall Commission and its members and the
be understood to constitute an Labor Arbiters shall use every and all
agreement entered into by the reasonable means to ascertain the facts
complainant and the surety upon which in each case speedily and objectively,
an order may be rendered in the same without regard to technicalities of law or
suit or proceeding against said procedure, all in the interest of due
complainant and surety, upon a hearing process. In any proceeding before the
to assess damages, of which hearing, Commission or any Labor Arbiter, the
complainant and surety shall have parties may be represented by legal
reasonable notice, the said complainant counsel but it shall be the duty of the
and surety submitting themselves to the Chairman, any Presiding Commissioner
jurisdiction of the Commission for that or Commissioner or any Labor Arbiter to
purpose. But nothing herein contained exercise complete control of the
shall deprive any party having a claim or proceedings at all stages.
cause of action under or upon such
undertaking from electing to pursue his Any provision of law to the contrary
ordinary remedy by suit at law or in notwithstanding, the Labor Arbiter shall
equity:Provided, further, That the exert all efforts towards the amicable
reception of evidence for the application settlement of a labor dispute within his
of a writ of injunction may be delegated jurisdiction on or before the first
by the Commission to any of its Labor hearing. The same rule shall apply to the
Arbiters who shall conduct such Commission in the exercise of its original
hearings in such places as he may jurisdiction.
determine to be accessible to the parties
and their witnesses and shall submit ARTICLE 228. [222] Appearances and
thereafter his recommendation to the Fees. — (a) Non-lawyers may appear
Commission. before the Commission or any Labor
Arbiter only:
ARTICLE 226. [219] Ocular Inspection.
— The Chairman, any Commissioner, 1. If they represent themselves; or
Labor Arbiter or their duly authorized 2. If they represent their organization or
representatives, may, at any time during members thereof.
working hours, conduct an ocular
inspection on any establishment, (b) No attorney's fees, negotiation fees
building, ship or vessel, place or or similar charges of any kind arising
premises, including any work, material, from any collective bargaining
implement, machinery, appliance or any agreement shall be imposed on any
object therein, and ask any employee, individual member of the contracting
union: Provided, However, that his dismissal or separation or, at the
attorney's fees may be charged against option of the employer, merely
union funds in an amount to be agreed reinstated in the payroll. The posting of
upon by the parties. Any contract, a bond by the employer shall not stay the
agreement or arrangement of any sort to execution for reinstatement provided
the contrary shall be null and void. herein.

CHAPTER III Appeal To discourage frivolous or dilatory

appeals, the Commission or the Labor
ARTICLE 229. [223] Appeal. — Arbiter shall impose reasonable penalty,
Decisions, awards, or orders of the including fines or censures, upon the
Labor Arbiter are final and executory erring parties.
unless appealed to the Commission by
any or both parties within ten (10) In all cases, the appellant shall furnish a
calendar days from receipt of such copy of the memorandum of appeal to
decisions, awards, or orders. Such the other party who shall file an answer
appeal may be entertained only on any of not later than ten (10) calendar days
the following grounds: from receipt thereof.

(a) If there is prima facie evidence of The Commission shall decide all cases
abuse of discretion on the part of the within twenty (20) calendar days from
Labor Arbiter; receipt of the answer of the appellee.

(b) If the decision, order or award was The decision of the Commission shall be
secured through fraud or coercion, final and executory after ten (10)
including graft and corruption; calendar days from receipt thereof by
the parties.
(c) If made purely on questions of law;
and Any law enforcement agency may be
deputized by the Secretary of Labor and
(d) If serious errors in the findings of Employment or the Commission in the
facts are raised which would cause grave enforcement of decisions, awards or
or irreparable damage or injury to the orders.
appellant.
ARTICLE 230. [224] Execution of
In case of a judgment involving a Decisions, Orders, or Awards. — (a) The
monetary award, an appeal by the Secretary of Labor and Employment or
employer may be perfected only upon any Regional Director, the Commission
the posting of a cash or surety bond or any Labor Arbiter, or Med-Arbiter or
issued by a reputable bonding company Voluntary Arbitrator may, motu
duly accredited by the Commission in proprio or on motion of any interested
the amount equivalent to the monetary party, issue a writ of execution on a
award in the judgment appealed from. judgment within five (5) years from the
date it becomes final and executory,
In any event, the decision of the Labor requiring a sheriff or a duly deputized
Arbiter reinstating a dismissed or officer to execute or enforce final
separated employee, insofar as the decisions, orders or awards of the
reinstatement aspect is concerned, shall Secretary of Labor and Employment or
immediately be executory, even pending Regional Director, the Commission, the
appeal. The employee shall either be Labor Arbiter or Med-Arbiter, or
admitted back to work under the same Voluntary Arbitrator or panel of
terms and conditions prevailing prior to Voluntary Arbitrators. In any case, it
shall be the duty of the responsible The Bureau shall have fifteen (15)
officer to separately furnish immediately working days to act on labor cases
the counsels of record and the parties before it, subject to extension by
with copies of said decisions, orders or agreement of the parties.
awards. Failure to comply with the duty
prescribed herein shall subject such ARTICLE 233. [227] Compromise
responsible officer to appropriate Agreements. — Any compromise
administrative sanctions. settlement, including those involving
labor standard laws, voluntarily agreed
(b) The Secretary of Labor and upon by the parties with the assistance
Employment, and the Chairman of the of the Bureau or the regional office of
Commission may designate special the Department of Labor, shall be final
sheriffs and take any measure under and binding upon the parties. The
existing laws to ensure compliance with National Labor Relations Commission or
their decisions, orders or awards and any court, shall not assume jurisdiction
those of Labor Arbiters and Voluntary over issues involved therein except in
Arbitrators or panel of Voluntary case of non-compliance thereof or if
Arbitrators, including the imposition of there is prima facie evidence that the
administrative fines which shall not be settlement was obtained through fraud,
less than Five Hundred Pesos (P500.00) misrepresentation, or coercion.
nor more than Ten Thousand Pesos
(P10,000.00). ARTICLE 234. [228] Mandatory
Conciliation and Endorsement of Cases.
ARTICLE 231. [225] Contempt Powers of — (a) Except as provided in Title VII-A,
the Secretary. — In the exercise of his Book V of this Code, as amended, or as
powers under this Code, the Secretary of may be excepted by the Secretary of
Labor may hold any person in direct or Labor and Employment, all issues arising
indirect contempt and impose the from labor and employment shall be
appropriate penalties therefor. subject to mandatory conciliation-
mediation. The labor arbiter or the
TITLE III Bureau of Labor Relations
appropriate DOLE agency or office that
ARTICLE 232. [226] Bureau of Labor has jurisdiction over the dispute shall
Relations. — The Bureau of Labor entertain only endorsed or referred
Relations and the Labor Relations cases by the duly authorized officer.
Divisions in the regional offices of the
(b) Any or both parties involved in the
Department of Labor shall have original
dispute may pre-terminate the
and exclusive authority to act, at their
conciliation-mediation proceedings and
own initiative or upon request of either
request referral or endorsement to the
or both parties, on all inter-union and
appropriate DOLE agency or office
intra-union conflicts, and all disputes,
which has jurisdiction over the dispute,
grievances or problems arising from or
or if both parties so agree, refer the
affecting labor-management relations in
unresolved issues to voluntary
all workplaces, whether agricultural or
arbitration.
non-agricultural, except those arising
from the implementation or ARTICLE 235. [229] Issuance of
interpretation of collective bargaining Subpoenas. — The Bureau shall have the
agreements which shall be the subject of power to require the appearance of any
grievance procedure and/or voluntary person or the production of any paper,
arbitration. document or matter relevant to a labor
dispute under its jurisdiction, either at
the request of any interested party or at the Collective Bargaining Agreement
its own initiative. within five (5) days from its submission.

ARTICLE 236. [230] Appointment of The Bureau or Regional Office shall

Bureau Personnel. —The Secretary of assess the employer for every Collective
Labor and Employment may appoint, in Bargaining Agreement a registration fee
addition to the present personnel of the of not less than one thousand pesos
Bureau and the Industrial Relations (P1,000.00) or in any other amount as
Divisions, such number of examiners and may be deemed appropriate and
other assistants as may be necessary to necessary by the Secretary of Labor and
carry out the purpose of the Code. Employment for the effective and
efficient administration of the Voluntary
ARTICLE 237. [231] Registry of Unions Arbitration Program. Any amount
and File of Collective Bargaining collected under this provision shall
Agreements. — The Bureau shall keep a accrue to the Special Voluntary
registry of legitimate labor Arbitration Fund.
organizations.
The Bureau shall also maintain a file,
The Bureau shall also maintain a file of and shall undertake or assist in the
all collective bargaining agreements and publication of all final decisions, orders
other related agreements and records of and awards of the Secretary of Labor
settlement of labor disputes and copies and Employment, Regional Directors and
of orders and decisions of voluntary the Commission.
arbitrators or panel of voluntary
arbitrators. The file shall be open and ARTICLE 238. [232] Prohibition on
accessible to interested parties under Certification Election. — The Bureau
conditions prescribed by the Secretary shall not entertain any petition for
of Labor and Employment, provided that certification election or any other action
no specific information submitted in which may disturb the administration of
confidence shall be disclosed unless duly registered existing collective
authorized by the Secretary, or when it bargaining agreements affecting the
is at issue in any judicial litigation, or parties except under Articles 253, 253-A
when public interest or national security and 256 of this Code.
so requires.
ARTICLE 239. [233] Privileged
Within thirty (30) days from the Communication. — Information and
execution of a Collective Bargaining statements made at conciliation
Agreement, the parties shall submit proceedings shall be treated as
copies of the same directly to the Bureau privileged communication and shall not
or the Regional Offices of the be used as evidence in the Commission.
Department of Labor and Employment Conciliators and similar officials shall
for registration accompanied with not testify in any court or body
verified proofs of its posting in two regarding any matters taken up at
conspicuous places in the place of work conciliation proceedings conducted by
and ratification by the majority of all the them.
workers in the bargaining unit. The
TITLE IV Labor Organizations
Bureau or Regional Offices shall act
upon the application for registration of CHAPTER I Registration and
such Collective Bargaining Agreement Cancellation
within five (5) calendar days from
receipt thereof. The Regional Offices ARTICLE 240. [234] Requirements of
shall furnish the Bureau with a copy of Registration. — A federation, national
union or industry or trade union center (a) The names of the chapter's officers,
or an independent union shall acquire their addresses, and the principal office
legal personality and shall be entitled to of the chapter; and
the rights and privileges granted by law
to legitimate labor organizations upon (b) The chapter's constitution and by-
issuance of the certificate of registration laws: Provided, That where the
based on the following requirements: chapter's constitution and by-laws are
the same as that of the federation or the
(a) Fifty pesos (P50.00) registration fee; national union, this fact shall be
indicated accordingly.
(b) The names of its officers, their
addresses, the principal address of the The additional supporting requirements
labor organization, the minutes of the shall be certified under oath by the
organizational meetings and the list of secretary or treasurer of the chapter and
the workers who participated in such attested by its president.
meetings;
ARTICLE 242. [235] Action on
(c) In case the applicant is an Application. — The Bureau shall act on
independent union, the names of all its all applications for registration within
members comprising at least twenty thirty (30) days from filing.
percent (20%) of all the employees in the
bargaining unit where it seeks to All requisite documents and papers shall
operate; be certified under oath by the secretary
or the treasurer of the organization, as
(d) If the applicant union has been in the case may be, and attested to by its
existence for one or more years, copies president.
of its annual financial reports; and
ARTICLE 243. [236] Denial of
(e) Four copies of the constitution and Registration; Appeal. — The decision of
by-laws of the applicant union, minutes the Labor Relations Division in the
of its adoption or ratification, and the list regional office denying registration may
of the members who participated in it. be appealed by the applicant union to
the Bureau within ten (10) days from
ARTICLE 241. [234-A] Chartering and receipt of notice thereof.
Creation of a Local Chapter. — A duly
registered federation or national union ARTICLE 244. [237] Additional
may directly create a local chapter by Requirements for Federations or
issuing a charter certificate indicating National Unions. — Subject to Article
the establishment of the local chapter. 238, if the applicant for registration is a
The chapter shall acquire legal federation or a national union, it shall, in
personality only for purposes of filing a addition to the requirements of the
petition for certification election from preceding Articles, submit the following:
the date it was issued a charter
certificate. Proof of the affiliation of at least ten (10)
locals or chapters, each of which must
The chapter shall be entitled to all other be a duly recognized collective
rights and privileges of a legitimate bargaining agent in the establishment or
labor organization only upon the industry in which it operates, supporting
submission of the following documents the registration of such applicant
in addition to its charter certificate: federation or national union; and

The names and addresses of the

companies where the locals or chapters
operate and the list of all the members organization: Provided, further, That an
in each company involved. application to cancel registration is
thereafter submitted by the board of the
ARTICLE 245. [238] Cancellation of organization, attested to by the
Registration. — The certificate of president thereof.
registration of any legitimate labor
organization, whether national or local, ARTICLE 249. [240] Equity of the
may be cancelled by the Bureau, after Incumbent. — All existing federations
due hearing, only on the grounds and national unions which meet the
specified in Article 239 hereof. qualifications of a legitimate labor
organization and none of the grounds for
ARTICLE 246. [238-A] Effect of a cancellation shall continue to maintain
Petition for Cancellation of Registration. their existing affiliates regardless of the
— A petition for cancellation of union nature of the industry and the location of
registration shall not suspend the the affiliates.
proceedings for certification election nor
shall it prevent the filing of a petition for CHAPTER II Rights and Conditions
certification election. of Membership

In case of cancellation, nothing herein ARTICLE 250. [241] Rights and

shall restrict the right of the union to Conditions of Membership in a Labor
seek just and equitable remedies in the Organization. — The following are the
appropriate courts. rights and conditions of membership in a
labor organization:
ARTICLE 247. [239] Grounds for
Cancellation of Union Registration. — (a) No arbitrary or excessive initiation
The following may constitute grounds for fees shall be required of the members of
cancellation of union registration: a legitimate labor organization nor shall
arbitrary, excessive or oppressive fine
(a) Misrepresentation, false statement or and forfeiture be imposed;
fraud in connection with the adoption or
ratification of the constitution and by- (b) The members shall be entitled to full
laws or amendments thereto, the and detailed reports from their officers
minutes of ratification, and the list of and representatives of all financial
members who took part in the transactions as provided for in the
ratification; constitution and by-laws of the
organization;
(b) Misrepresentation, false statements
or fraud in connection with the election (c) The members shall directly elect
of officers, minutes of the election of their officers in the local union, as well
officers, and the list of voters; as their national officers in the national
union or federation to which they or
(c) Voluntary dissolution by the their local union is affiliated, by secret
members. ballot at intervals of five (5) years. No
qualification requirement for candidacy
ARTICLE 248. [239-A] Voluntary
to any position shall be imposed other
Cancellation of Registration. — The
than membership in good standing in
registration of a legitimate labor
subject labor organization. The secretary
organization may be cancelled by the
or any other responsible union officer
organization itself: Provided, That at
shall furnish the Secretary of Labor and
least two-thirds of its general
Employment with a list of the newly-
membership votes, in a meeting duly
elected officers, together with the
called for that purpose to dissolve the
appointive officers or agents who are members at a general meeting duly
entrusted with the handling of funds called for the purpose;
within thirty (30) calendar days after the
election of officers or from the (j) Every income or revenue of the
occurrence of any change in the list of organization shall be evidenced by a
officers of the labor organization; record showing its source, and every
expenditure of its funds shall be
(d) The members shall determine by evidenced by a receipt from the person
secret ballot, after due deliberation, any to whom the payment is made, which
question of major policy affecting the shall state the date, place and purpose of
entire membership of the organization, such payment. Such record or receipt
unless the nature of the organization shall form part of the financial records of
or force majeure renders such secret the organization.
ballot impractical, in which case, the
board of directors of the organization Any action involving the funds of the
may make the decision in behalf of the organization shall prescribe after three
general membership; (3) years from the date of submission of
the annual financial report to the
(e) No labor organization shall Department of Labor and Employment or
knowingly admit as members or continue from the date the same should have been
in membership any individual who submitted as required by law, whichever
belongs to a subversive organization or comes earlier:Provided, That this
who is engaged directly or indirectly in provision shall apply only to a legitimate
any subversive activity; labor organization which has submitted
the financial report requirements under
(f) No person who has been convicted of this Code: Provided, further, That failure
a crime involving moral turpitude shall of any labor organization to comply with
be eligible for election as a union officer the periodic financial reports required by
or for appointment to any position in the law and such rules and regulations
union; promulgated thereunder six (6) months
after the effectivity of this Act shall
(g) No officer, agent or member of a automatically result in the cancellation
labor organization shall collect any fees, of union registration of such labor
dues, or other contributions in its behalf organization;
or make any disbursement of its money
or funds unless he is duly authorized (k) The officers of any labor organization
pursuant to its constitution and by-laws; shall not be paid any compensation other
than the salaries and expenses due to
(h) Every payment of fees, dues or other their positions as specifically provided
contributions by a member shall be for in its constitution and by-laws, or in a
evidenced by a receipt signed by the written resolution duly authorized by a
officer or agent making the collection majority of all the members at a general
and entered into the record of the membership meeting duly called for the
organization to be kept and maintained purpose. The minutes of the meeting and
for the purpose; the list of participants and ballots cast
(i) The funds of the organization shall shall be subject to inspection by the
not be applied for any purpose or object Secretary of Labor or his duly authorized
other than those expressly provided by representatives. Any irregularities in the
its constitution and by-laws or those approval of the resolutions shall be a
expressly authorized by written ground for impeachment or expulsion
resolution adopted by the majority of the from the organization;
(l) The treasurer of any labor (o) Other than for mandatory activities
organization and every officer thereof under the Code, no special assessments,
who is responsible for the account of attorney's fees, negotiation fees or any
such organization or for the collection, other extraordinary fees may be checked
management, disbursement, custody or off from any amount due to an employee
control of the funds, moneys and other without an individual written
properties of the organization, shall authorization duly signed by the
render to the organization and to its employee. The authorization should
members a true and correct account of specifically state the amount, purpose
all moneys received and paid by him and beneficiary of the deduction; and
since he assumed office or since the last
day on which he rendered such account, (p) It shall be the duty of any labor
and of all bonds, securities and other organization and its officers to inform its
properties of the organization entrusted members on the provisions of
to his custody or under his control. The its constitution and by-laws, collective
rendering of such account shall be made: bargaining agreement, the prevailing
labor relations system and all their
(1) At least once a year within thirty (30) rights and obligations under existing
days after the close of its fiscal year; labor laws.

(2) At such other times as may be For this purpose, registered labor
required by a resolution of the majority organizations may assess reasonable
of the members of the organization; and dues to finance labor relations seminars
and other labor education activities.
(3) Upon vacating his office.
Any violation of the above rights and
The account shall be duly audited and conditions of membership shall be a
verified by affidavit and a copy thereof ground for cancellation of union
shall be furnished the Secretary of registration or expulsion of officers from
Labor. office, whichever is appropriate. At least
thirty percent (30%) of the members of a
(m) The books of accounts and other union or any member or members
records of the financial activities of any specially concerned may report such
labor organization shall be open to violation to the Bureau. The Bureau shall
inspection by any officer or member have the power to hear and decide any
thereof during office hours; reported violation to mete the
(n) No special assessment or other appropriate penalty.
extraordinary fees may be levied upon Criminal and civil liabilities arising from
the members of a labor organization violations of above rights and conditions
unless authorized by a written resolution of membership shall continue to be
of a majority of all the members in a under the jurisdiction of ordinary courts.
general membership meeting duly called
for the purpose. The secretary of the CHAPTER III Rights of Legitimate
organization shall record the minutes of Labor Organizations
the meeting including the list of all
members present, the votes cast, the ARTICLE 251. [242] Rights of Legitimate
purpose of the special assessment or Labor Organizations. — A legitimate
fees and the recipient of such labor organization shall have the right:
assessment or fees. The record shall be
attested to by the president.
(a) To act as the representative of its ARTICLE 252. [242-A] Reportorial
members for the purpose of collective Requirements. — The following are
bargaining; documents required to be submitted to
the Bureau by the legitimate labor
(b) To be certified as the exclusive organization concerned:
representative of all the employees in an
appropriate bargaining unit for purposes (a) Its constitution and by-laws, or
of collective bargaining; amendments thereto, the minutes of
ratification, and the list of members who
(c) To be furnished by the employer, took part in the ratification of the
upon written request, with its annual constitution and by-laws within thirty
audited financial statements, including (30) days from adoption or ratification
the balance sheet and the profit and loss of the constitution and by-laws or
statement, within thirty (30) calendar amendments thereto;
days from the date of receipt of the
request, after the union has been duly (b) Its list of officers, minutes of the
recognized by the employer or certified election of officers, and list of voters
as the sole and exclusive bargaining within thirty (30) days from election;
representative of the employees in the
bargaining unit, or within sixty (60) (c) Its annual financial report within
calendar days before the expiration of thirty (30) days after the close of every
the existing collective bargaining fiscal year; and
agreement, or during the collective
bargaining negotiation; (d) Its list of members at least once a
year or whenever required by the
(d) To own property, real or personal, for Bureau.
the use and benefit of the labor
organization and its members; Failure to comply with the above
requirements shall not be a ground for
(e) To sue and be sued in its registered cancellation of union registration but
name; and shall subject the erring officers or
members to suspension, expulsion from
(f) To undertake all other activities membership, or any appropriate penalty.
designed to benefit the organization and
its members, including cooperative,
housing, welfare and other projects not
contrary to law.
TITLE V Coverage
Notwithstanding any provision of a
general or special law to the contrary, ARTICLE 253. [243] Coverage and
the income and the properties of Employees' Right to Self-Organization.
legitimate labor organizations, including — All persons employed in commercial,
grants, endowments, gifts, donations and industrial and agricultural enterprises
contributions they may receive from and in religious, charitable, medical, or
fraternal and similar organizations, local educational institutions, whether
or foreign, which are actually, directly operating for profit or not, shall have the
and exclusively used for their lawful right to self-organization and to form,
purposes, shall be free from taxes, duties join, or assist labor organizations of their
and other assessments. The exemptions own choosing for purposes of collective
provided herein may be withdrawn only bargaining. Ambulant, intermittent and
by a special law expressly repealing this itinerant workers, self-employed people,
provision. rural workers and those without any
definite employers may form labor representatives of their own choosing
organizations for their mutual aid and and to engage in lawful concerted
protection. activities for the same purpose for their
mutual aid and protection, subject to the
ARTICLE 254. [244] Right of Employees provisions of Article 264 of this Code.
in the Public Service. — Employees of
government corporations established TITLE VI Unfair Labor Practices
under the Corporation Code shall have
the right to organize and to bargain CHAPTER I Concept
collectively with their respective ARTICLE 258. [247] Concept of Unfair
employers. All other employees in the Labor Practice and Procedure for
civil service shall have the right to form Prosecution Thereof. — Unfair labor
associations for purposes not contrary to practices violate the constitutional right
law. of workers and employees to self-
ARTICLE 255. [245] Ineligibility of organization, are inimical to the
Managerial Employees to Join Any Labor legitimate interests of both labor and
Organization; Right of Supervisory management, including their right to
Employees. — Managerial employees are bargain collectively and otherwise deal
not eligible to join, assist or form any with each other in an atmosphere of
labor organization. Supervisory freedom and mutual respect, disrupt
employees shall not be eligible for industrial peace and hinder the
membership in the collective bargaining promotion of healthy and stable labor-
unit of the rank-and-file employees but management relations.
may join, assist or form separate Consequently, unfair labor practices are
collective bargaining units and/or not only violations of the civil rights of
legitimate labor organizations of their both labor and management but are also
own. The rank and file union and the criminal offenses against the State which
supervisors' union operating within the shall be subject to prosecution and
same establishment may join the same punishment as herein provided.
federation or national union.
Subject to the exercise by the President
ARTICLE 256. [245-A] Effect of Inclusion or by the Secretary of Labor and
as Members of Employees Outside the Employment of the powers vested in
Bargaining Unit. — The inclusion as them by Articles 263 and 264 of this
union members of employees outside the Code, the civil aspects of all cases
bargaining unit shall not be a ground for involving unfair labor practices, which
the cancellation of the registration of the may include claims for actual, moral,
union. Said employees are automatically exemplary and other forms of damages,
deemed removed from the list of attorney's fees and other affirmative
membership of said union. relief, shall be under the jurisdiction of
ARTICLE 257. [246] Non-Abridgment of the Labor Arbiters. The Labor Arbiters
Right to Self-Organization. — It shall be shall give utmost priority to the hearing
unlawful for any person to restrain, and resolution of all cases involving
coerce, discriminate against or unduly unfair labor practices. They shall resolve
interfere with employees and workers in such cases within thirty (30) calendar
their exercise of the right to self- days from the time they are submitted
organization. Such right shall include for decision.
the right to form, join, or assist labor
organizations for the purpose of
collective bargaining through
Recovery of civil liability in the including the giving of financial or other
administrative proceedings shall bar support to it or its organizers or
recovery under the Civil Code. supporters;

No criminal prosecution under this Title (e) To discriminate in regard to wages,

may be instituted without a final hours of work and other terms and
judgment finding that an unfair labor conditions of employment in order to
practice was committed, having been encourage or discourage membership in
first obtained in the preceding any labor organization. Nothing in this
paragraph. During the pendency of such Code or in any other law shall stop the
administrative proceeding, the running parties from requiring membership in a
of the period of prescription of the recognized collective bargaining agent
criminal offense herein penalized shall as a condition for employment, except
be considered interrupted: Provided, those employees who are already
however, That the final judgment in the members of another union at the time of
administrative proceedings shall not be the signing of the collective bargaining
binding in the criminal case nor be agreement. Employees of an appropriate
considered as evidence of guilt but bargaining unit who are not members of
merely as proof of compliance of the the recognized collective bargaining
requirements therein set forth. agent may be assessed a reasonable fee
equivalent to the dues and other fees
paid by members of the recognized
collective bargaining agent, if such non-
union members accept the benefits
under the collective bargaining
CHAPTER II Unfair Labor Practices agreement: Provided, That the individual
of Employers authorization required under Article
242, paragraph (o) of this Code shall not
ARTICLE 259. [248] Unfair Labor
apply to the non-members of the
Practices of Employers. — It shall be
recognized collective bargaining agent;
unlawful for an employer to commit any
of the following unfair labor practices: (f) To dismiss, discharge or otherwise
prejudice or discriminate against an
(a) To interfere with, restrain or coerce
employee for having given or being
employees in the exercise of their right
about to give testimony under this Code;
to self-organization;
(g) To violate the duty to bargain
(b) To require as a condition of
collectively as prescribed by this Code;
employment that a person or an
employee shall not join a labor (h) To pay negotiation or attorney's fees
organization or shall withdraw from one to the union or its officers or agents as
to which he belongs; part of the settlement of any issue in
collective bargaining or any other
(c) To contract out services or functions
dispute; or
being performed by union members
when such will interfere with, restrain or (i) To violate a collective bargaining
coerce employees in the exercise of their agreement.
right to self-organization;
The provisions of the preceding
(d) To initiate, dominate, assist or paragraph notwithstanding, only the
otherwise interfere with the formation or officers and agents of corporations,
administration of any labor organization, associations or partnerships who have
actually participated in, authorized or (f) To violate a collective bargaining
ratified unfair labor practices shall be agreement.
held criminally liable.
The provisions of the preceding
CHAPTER III Unfair Labor Practices paragraph notwithstanding, only the
of Labor Organizations officers, members of governing boards,
representatives or agents or members of
ARTICLE 260. [249] Unfair Labor labor associations or organizations who
Practices of Labor Organizations. — It have actually participated in, authorized
shall be unfair labor practice for a labor or ratified unfair labor practices shall be
organization, its officers, agents or held criminally liable.
representatives:

(a) To restrain or coerce employees in

the exercise of their right to self-
organization. However, a labor TITLE VII Collective Bargaining and
organization shall have the right to Administration of Agreements
prescribe its own rules with respect to
the acquisition or retention of ARTICLE 261. [250] Procedure in
membership; Collective Bargaining. — The following
procedures shall be observed in
(b) To cause or attempt to cause an collective bargaining:
employer to discriminate against an
employee, including discrimination (a) When a party desires to negotiate an
against an employee with respect to agreement, it shall serve a written notice
whom membership in such organization upon the other party with a statement of
has been denied or to terminate an its proposals. The other party shall make
employee on any ground other than the a reply thereto not later than ten (10)
usual terms and conditions under which calendar days from receipt of such
membership or continuation of notice;
membership is made available to other
members; (b) Should differences arise on the basis
of such notice and reply, either party
(c) To violate the duty, or refuse to may request for a conference which shall
bargain collectively with the employer, begin not later than ten (10) calendar
provided it is the representative of the days from the date of request.
employees;
(c) If the dispute is not settled, the Board
(d) To cause or attempt to cause an shall intervene upon request of either or
employer to pay or deliver or agree to both parties or at its own initiative and
pay or deliver any money or other things immediately call the parties to
of value, in the nature of an exaction, for conciliation meetings. The Board shall
services which are not performed or not have the power to issue subpoenas
to be performed, including the demand requiring the attendance of the parties
for fee for union negotiations; to such meetings. It shall be the duty of
the parties to participate fully and
(e) To ask for or accept negotiation or promptly in the conciliation meetings the
attorney's fees from employers as part of Board may call;
the settlement of any issue in collective
bargaining or any other dispute; or (d) During the conciliation proceedings
in the Board, the parties are prohibited
from doing any act which may disrupt or
impede the early settlement of the terms and conditions of the existing
disputes; and agreement during the 60-day period
and/or until a new agreement is reached
(e) The Board shall exert all efforts to by the parties.
settle disputes amicably and encourage
the parties to submit their case to a ARTICLE 265. [253-A] Terms of a
voluntary arbitrator. Collective Bargaining Agreement. — Any
Collective Bargaining Agreement that
ARTICLE 262. [251] Duty to Bargain the parties may enter into shall, insofar
Collectively in the Absence of Collective as the representation aspect is
Bargaining Agreements. — In the concerned, be for a term of five (5)
absence of an agreement or other years. No petition questioning the
voluntary arrangement providing for a majority status of the incumbent
more expeditious manner of collective bargaining agent shall be entertained
bargaining, it shall be the duty of and no certification election shall be
employer and the representatives of the conducted by the Department of Labor
employees to bargain collectively in and Employment outside of the sixty-day
accordance with the provisions of this period immediately before the date of
Code. expiry of such five-year term of the
Collective Bargaining Agreement. All
ARTICLE 263. [252] Meaning of Duty to other provisions of the Collective
Bargain Collectively. — The duty to Bargaining Agreement shall be
bargain collectively means the renegotiated not later than three (3)
performance of a mutual obligation to years after its execution. Any agreement
meet and convene promptly and on such other provisions of the
expeditiously in good faith for the Collective Bargaining Agreement
purpose of negotiating an agreement entered into within six (6) months from
with respect to wages, hours of work and the date of expiry of the term of such
all other terms and conditions of other provisions as fixed in such
employment including proposals for Collective Bargaining Agreement, shall
adjusting any grievances or questions retroact to the day immediately
arising under such agreement and following such date. If any such
executing a contract incorporating such agreement is entered into beyond six
agreements if requested by either party months, the parties shall agree on the
but such duty does not compel any party duration of retroactivity thereof. In case
to agree to a proposal or to make any of a deadlock in the renegotiation of the
concession. Collective Bargaining Agreement, the
ARTICLE 264. [253] Duty to Bargain parties may exercise their rights under
Collectively When There Exists a this Code.
Collective Bargaining Agreement. — ARTICLE 266. [254] Injunction
When there is a collective bargaining Prohibited. — No temporary or
agreement, the duty to bargain permanent injunction or restraining
collectively shall also mean that neither order in any case involving or growing
party shall terminate nor modify such out of labor disputes shall be issued by
agreement during its lifetime. However, any court or other entity, except as
either party can serve a written notice to otherwise provided in Articles 218 and
terminate or modify the agreement at 264 of this Code.
least sixty (60) days prior to its
expiration date. It shall be the duty of ARTICLE 267. [255] Exclusive
both parties to keep the status quo and Bargaining Representation and Workers'
to continue in full force and effect the Participation in Policy and Decision-
Making. — The labor organization ascertain the will of the employees in the
designated or selected by the majority of appropriate bargaining unit. To have a
the employees in an appropriate valid election, at least a majority of all
collective bargaining unit shall be the eligible voters in the unit must have cast
exclusive representative of the their votes. The labor union receiving
employees in such unit for the purpose the majority of the valid votes cast shall
of collective bargaining. However, an be certified as the exclusive bargaining
individual employee or group of agent of all the workers in the unit.
employees shall have the right at any When an election which provides for
time to present grievances to their three or more choices results in no
employer. choice receiving a majority of the valid
votes cast, a run-off election shall be
Any provision of law to the contrary conducted between the labor unions
notwithstanding, workers shall have the receiving the two highest number of
right, subject to such rules and votes: Provided, That the total number of
regulations as the Secretary of Labor votes for all contending unions is at least
and Employment may promulgate, to fifty percent (50%) of the number of
participate in policy and decision-making votes cast. In cases where the petition
processes of the establishment where was filed by a national union or
they are employed insofar as said federation, it shall not be required to
processes will directly affect their rights, disclose the names of the local chapter's
benefits and welfare. For this purpose, officers and members.
workers and employers may form labor-
management councils: Provided, That At the expiration of the freedom period,
the representatives of the workers in the employer shall continue to recognize
such labor-management councils shall be the majority status of the incumbent
elected by at least the majority of all bargaining agent where no petition for
employees in said establishment. certification election is filed.

ARTICLE 268. [256] Representation ARTICLE 269. [257] Petitions in

Issue in Organized Establishments. — In Unorganized Establishments. — In any
organized establishments, when a establishment where there is no certified
verified petition questioning the majority bargaining agent, a certification election
status of the incumbent bargaining shall automatically be conducted by the
agent is filed by any legitimate labor Med-Arbiter upon the filing of a petition
organization including a national union by any legitimate labor organization,
or federation which has already issued a including a national union or federation
charter certificate to its local chapter which has already issued a charter
participating in the certification election certificate to its local/chapter
or a local chapter which has been issued participating in the certification election
a charter certificate by the national or a local/chapter which has been issued
union or federation before the a charter certificate by the national
Department of Labor and Employment union or federation. In cases where the
within the sixty (60)-day period before petition was filed by a national union or
the expiration of the collective federation, it shall not be required to
bargaining agreement, the Med-Arbiter disclose the names of the local chapter's
shall automatically order an election by officers and members.
secret ballot when the verified petition is
supported by the written consent of at ARTICLE 270. [258] When an Employer
least twenty-five percent (25%) of all the May File Petition. — When requested to
employees in the bargaining unit to bargain collectively, an employer may
petition the Bureau for an election. If
there is no existing certified collective observance of its terms and conditions.
bargaining agreement in the unit, the They shall establish a machinery for the
Bureau shall, after hearing, order a adjustment and resolution of grievances
certification election. arising from the interpretation or
implementation of their Collective
All certification cases shall be decided Bargaining Agreement and those arising
within twenty (20) working days. from the interpretation or enforcement
of company personnel policies.
The Bureau shall conduct a certification
election within twenty (20) days in All grievances submitted to the
accordance with the rules and grievance machinery which are not
regulations prescribed by the Secretary settled within seven (7) calendar days
of Labor. from the date of its submission shall
automatically be referred to voluntary
ARTICLE 271. [258-A] Employer as arbitration prescribed in the Collective
Bystander. — In all cases, whether the Bargaining Agreement.
petition for certification election is filed
by an employer or a legitimate labor For this purpose, parties to a Collective
organization, the employer shall not be Bargaining Agreement shall name and
considered a party thereto with a designate in advance a Voluntary
concomitant right to oppose a petition Arbitrator or panel of Voluntary
for certification election. The employer's Arbitrators, or include in the agreement
participation in such proceedings shall a procedure for the selection of such
be limited to: (1) being notified or Voluntary Arbitrator or panel of
informed of petitions of such nature; and Voluntary Arbitrators, preferably from
(2) submitting the list of employees the listing of qualified Voluntary
during the pre-election conference Arbitrators duly accredited by the Board.
should the Med-Arbiter act favorably on In case the parties fail to select a
the petition. Voluntary Arbitrator or panel of
Voluntary Arbitrators, the Board shall
ARTICLE 272. [259] Appeal from designate the Voluntary Arbitrator or
Certification Election Orders. — Any panel of Voluntary Arbitrators, as may
party to an election may appeal the be necessary, pursuant to the selection
order or results of the election as procedure agreed upon in the Collective
determined by the Med-Arbiter directly Bargaining Agreement, which shall act
to the Secretary of Labor and with the same force and effect as if the
Employment on the ground that the Arbitrator or panel of Arbitrators have
rules and regulations or parts thereof been selected by the parties as
established by the Secretary of Labor described above.
and Employment for the conduct of the
election have been violated. Such appeal ARTICLE 274. [261] Jurisdiction of
shall be decided within fifteen (15) Voluntary Arbitrators and Panel of
calendar days. Voluntary Arbitrators. — The Voluntary
TITLE VII-A Grievance Machinery and Arbitrator or panel of Voluntary
Voluntary Arbitration Arbitrators shall have original and
exclusive jurisdiction to hear and decide
ARTICLE 273. [260] Grievance all unresolved grievances arising from
Machinery and Voluntary Arbitration. — the interpretation or implementation of
The parties to a Collective Bargaining the Collective Bargaining Agreement
Agreement shall include therein and those arising from the interpretation
provisions that will ensure the mutual or enforcement of company personnel
policies referred to in the immediately
preceding article. Accordingly, violations Hearing may be adjourned for cause or
of a Collective Bargaining Agreement, upon agreement by the parties.
except those which are gross in
character, shall no longer be treated as Unless the parties agree otherwise, it
unfair labor practice and shall be shall be mandatory for the Voluntary
resolved as grievances under the Arbitrator or panel of Voluntary
Collective Bargaining Agreement. For Arbitrators to render an award or
purposes of this article, gross violations decision within twenty (20) calendar
of Collective Bargaining Agreement shall days from the date of submission of the
mean flagrant and/or malicious refusal dispute to voluntary arbitration.
to comply with the economic provisions
of such agreement. The award or decision of the Voluntary
Arbitrator or panel of Voluntary
The Commission, its Regional Offices Arbitrators shall contain the facts and
and the Regional Directors of the the law on which it is based. It shall be
Department of Labor and Employment final and executor after ten (10) calendar
shall not entertain disputes, grievances days from receipt of the copy of the
or matters under the exclusive and award or decision by the parties.
original jurisdiction of the Voluntary
Arbitrator or panel of Voluntary Upon motion of any interested party, the
Arbitrators and shall immediately Voluntary Arbitrator or panel of
dispose and refer the same to the Voluntary Arbitrators or the Labor
Grievance Machinery or Voluntary Arbiter in the region where the movant
Arbitration provided in the Collective resides, in case of the absence or
Bargaining Agreement. incapacity of the Voluntary Arbitrator or
panel of Voluntary Arbitrators, for any
ARTICLE 275. [262] Jurisdiction over reason, may issue a writ of execution
Other Labor Disputes. — The Voluntary requiring either the sheriff of the
Arbitrator or panel of Voluntary Commission or regular courts or any
Arbitrators, upon agreement of the public official whom the parties may
parties, shall also hear and decide all designate in the submission agreement
other labor disputes including unfair to execute the final decision, order or
labor practices and bargaining award.
deadlocks.
ARTICLE 277. [262-B] Cost of Voluntary
ARTICLE 276. [262-A] Procedures. — Arbitration and Voluntary Arbitrator's
The Voluntary Arbitrator or panel of Fee. — The parties to a Collective
Voluntary Arbitrators shall have the Bargaining Agreement shall provide
power to hold hearings, receive therein a proportionate sharing scheme
evidences and take whatever action is on the cost of voluntary arbitration
necessary to resolve the issue or issues including the Voluntary Arbitrator's fee.
subject of the dispute, including efforts The fixing of fee of Voluntary
to effect a voluntary settlement between Arbitrators, or panel of Voluntary
parties. Arbitrators, whether shouldered wholly
by the parties or subsidized by the
All parties to the dispute shall be Special Voluntary Arbitration Fund, shall
entitled to attend the arbitration take into account the following factors:
proceedings. The attendance of any third
party or the exclusion of any witness (a) Nature of the case;
from the proceedings shall be
determined by the Voluntary Arbitrator (b) Time consumed in hearing the case;
or panel of Voluntary Arbitrators.
(c) Professional standing of the (d) The notice must be in accordance
Voluntary Arbitrator; with such implementing rules and
regulations as the Minister of Labor and
(d) Capacity to pay of the parties; and Employment may promulgate.
(e) Fees provided for in the Revised (e) During the cooling-off period, it shall
Rules of Court. be the duty of the Ministry to exert all
TITLE VIII Strikes and Lockouts and efforts at mediation and conciliation to
Foreign Involvement in Trade Union effect a voluntary settlement. Should the
Activities dispute remain unsettled until the lapse
of the requisite number of days from the
CHAPTER I Strikes and Lockouts mandatory filing of the notice, the labor
union may strike or the employer may
ARTICLE 278. [263] Strikes, Picketing, declare a lockout.
and Lockouts. — (a) It is the policy of the
State to encourage free trade unionism (f) A decision to declare a strike must be
and free collective bargaining. approved by a majority of the total union
membership in the bargaining unit
(b) Workers shall have the right to concerned, obtained by secret ballot in
engage in concerted activities for meetings or referenda called for that
purposes of collective bargaining or for purpose. A decision to declare a lockout
their mutual benefit and protection. The must be approved by a majority of the
right of legitimate labor organizations to board of directors of the corporation or
strike and picket and of employers to association or of the partners in a
lockout, consistent with the national partnership, obtained by secret ballot in
interest, shall continue to be recognized a meeting called for that purpose. The
and respected. However, no labor union decision shall be valid for the duration of
may strike and no employer may declare the dispute based on substantially the
a lockout on grounds involving inter- same grounds considered when the
union and intra-union disputes. strike or lockout vote was taken. The
Ministry may, at its own initiative or
(c) In cases of bargaining deadlocks, the upon the request of any affected party,
duly certified or recognized bargaining supervise the conduct of the secret
agent may file a notice of strike or the balloting. In every case, the union or the
employer may file a notice of lockout employer shall furnish the Ministry the
with the Ministry at least 30 days before results of the voting at least seven days
the intended date thereof. In cases of before the intended strike or lockout,
unfair labor practice, the period of subject to the cooling-off period herein
notice shall be 15 days and in the provided.
absence of a duly certified or recognized
bargaining agent, the notice of strike (g) When, in his opinion, there exists a
may be filed by any legitimate labor labor dispute causing or likely to cause a
organization in behalf of its members. strike or lockout in an industry
However, in case of dismissal from indispensable to the national interest,
employment of union officers duly the Secretary of Labor and Employment
elected in accordance with the may assume jurisdiction over the dispute
union constitution and by-laws, which and decide it or certify the same to the
may constitute union busting where the Commission for compulsory arbitration.
existence of the union is threatened, the Such assumption or certification shall
15-day cooling-off period shall not apply have the effect of automatically
and the union may take action enjoining the intended or impending
immediately. strike or lockout as specified in the
assumption or certification order. If one enjoined to comply with such orders,
has already taken place at the time of prohibitions and/or injunctions as are
assumption or certification, all striking issued by the Secretary of Labor and
or locked out employees shall Employment or the Commission, under
immediately return to work and the pain of immediate disciplinary action,
employer shall immediately resume including dismissal or loss of
operations and readmit all workers employment status or payment by the
under the same terms and conditions locking-out employer of backwages,
prevailing before the strike or lockout. damages and other affirmative relief,
The Secretary of Labor and Employment even criminal prosecution against either
or the Commission may seek the or both of them.
assistance of law enforcement agencies
to ensure compliance with this provision The foregoing notwithstanding, the
as well as with such orders as he may President of the Philippines shall not be
issue to enforce the same. precluded from determining the
industries that, in his opinion, are
In line with the national concern for and indispensable to the national interest,
the highest respect accorded to the right and from intervening at any time and
of patients to life and health, strikes and assuming jurisdiction over any such
lockouts in hospitals, clinics and similar labor dispute in order to settle or
medical institutions shall, to every extent terminate the same.
possible, be avoided, and all serious
efforts, not only by labor and (h) Before or at any stage of the
management but government as well, be compulsory arbitration process, the
exhausted to substantially minimize, if parties may opt to submit their dispute
not prevent, their adverse effects on to voluntary arbitration.
such life and health, through the
exercise, however legitimate, by labor of (i) The Secretary of Labor and
its right to strike and by management to Employment, the Commission or the
lockout. In labor disputes adversely voluntary arbitrator or panel of
affecting the continued operation of such voluntary arbitrators shall decide or
hospitals, clinics or medical institutions, resolve the dispute within thirty (30)
it shall be the duty of the striking union calendar days from the date of the
or locking-out employer to provide and assumption of jurisdiction or the
maintain an effective skeletal workforce certification or submission of the
of medical and other health personnel, dispute, as the case may be. The
whose movement and services shall be decision of the President, the Secretary
unhampered and unrestricted, as are of Labor and Employment, the
necessary to insure the proper and Commission or the voluntary arbitrator
adequate protection of the life and shall be final and executory ten (10)
health of its patients, most especially calendar days after receipt thereof by
emergency cases, for the duration of the the parties.
strike or lockout. In such cases, ARTICLE 279. [264] Prohibited
therefore, the Secretary of Labor and Activities. — (a) No labor organization or
Employment may immediately assume, employer shall declare a strike or
within twenty four (24) hours from lockout without first having bargained
knowledge of the occurrence of such a collectively in accordance with Title VII
strike or lockout, jurisdiction over the of this Book or without first having filed
same or certify it to the Commission for the notice required in the preceding
compulsory arbitration. For this purpose, Article or without the necessary strike or
the contending parties are strictly
lockout vote first having been obtained unless actual violence or other criminal
and reported to the Ministry. acts occur therein: Provided, That
nothing herein shall be interpreted to
No strike or lockout shall be declared prevent any public officer from taking
after assumption of jurisdiction by the any measure necessary to maintain
President or the Minister or after peace and order, protect life and
certification or submission of the dispute property, and/or enforce the law and
to compulsory or voluntary arbitration or legal orders.
during the pendency of cases involving
the same grounds for the strike or (e) No person engaged in picketing shall
lockout. commit any act of violence, coercion or
intimidation or obstruct the free ingress
Any worker whose employment has been to or egress from the employer's
terminated as a consequence of any premises for lawful purposes, or obstruct
unlawful lockout shall be entitled to public thoroughfares.
reinstatement with full backwages. Any
union officer who knowingly participates ARTICLE 280. [265] Improved Offer
in an illegal strike and any worker or Balloting. — In an effort to settle a
union officer who knowingly participates strike, the Department of Labor and
in the commission of illegal acts during a Employment shall conduct a referendum
strike may be declared to have lost his by secret balloting on the improved offer
employment status: Provided, That mere of the employer on or before the 30th
participation of a worker in a lawful day of the strike. When at least a
strike shall not constitute sufficient majority of the union members vote to
ground for termination of his accept the improved offer the striking
employment, even if a replacement had workers shall immediately return to
been hired by the employer during such work and the employer shall thereupon
lawful strike. readmit them upon the signing of the
agreement.
(b) No person shall obstruct, impede, or
interfere with by force, violence, In case of a lockout, the Department of
coercion, threats or intimidation, any Labor and Employment shall also
peaceful picketing by employees during conduct a referendum by secret
any labor controversy or in the exercise balloting on the reduced offer of the
of the right to self-organization or union on or before the 30th day of the
collective bargaining, or shall aid or abet lockout. When at least a majority of the
such obstruction or interference. board of directors or trustees or the
partners holding the controlling interest
(c) No employer shall use or employ any in the case of a partnership vote to
strike-breaker, nor shall any person be accept the reduced offer, the workers
employed as a strike-breaker. shall immediately return to work and the
employer shall thereupon readmit them
(d) No public official or employee, upon the signing of the agreement.
including officers and personnel of the
New Armed Forces of the Philippines or ARTICLE 281. [266] Requirement for
the Integrated National Police, or armed Arrest and Detention. — Except on
person, shall bring in, introduce or grounds of national security and public
escort in any manner, any individual who peace or in case of commission of a
seeks to replace strikers in entering or crime, no union members or union
leaving the premises of a strike area, or organizers may be arrested or detained
work in place of the strikers. The police for union activities without previous
force shall keep out of the picket lines
consultations with the Secretary of ARTICLE 285. [270] Regulations of
Labor. Foreign Assistance. — (a) No foreign
individual, organization or entity may
CHAPTER II Assistance to Labor give any donations, grants or other
Organizations forms of assistance, in cash or in kind,
directly or indirectly, to any labor
ARTICLE 282. [267] Assistance by the organization, group of workers or any
Department of Labor. — The Department auxiliary thereof, such as cooperatives,
of Labor, at the initiative of the credit unions and institutions engaged in
Secretary of Labor, shall extend special research, education or communication,
assistance to the organization, for in relation to trade union activities,
purposes of collective bargaining, of the without prior permission by the
most underprivileged workers who, for Secretary of Labor.
reasons of occupation, organizational
structure or insufficient incomes, are not "Trade union activities" shall mean:
normally covered by major labor
organizations or federations. (1) organization, formation and
administration of labor organization;
ARTICLE 283. [268] Assistance by the
Institute of Labor and Manpower (2) negotiation and administration of
Studies. — The Institute of Labor and collective bargaining agreements;
Manpower Studies shall render technical
and other forms of assistance to labor (3) all forms of concerted union action;
organizations and employer
(4) organizing, managing, or assisting
organizations in the field of labor
union conventions, meetings, rallies,
education, especially pertaining to
referenda, teach-ins, seminars,
collective bargaining, arbitration, labor
conferences and institutes;
standards and the Labor Code of the
Philippines in general. (5) any form of participation or
involvement in representation
CHAPTER III Foreign Activities
proceedings, representation elections,
ARTICLE 284. [269] Prohibition against consent elections, union elections; and
Aliens; Exceptions. — All aliens, natural
(6) other activities or actions analogous
or juridical, as well as foreign
to the foregoing.
organizations are strictly prohibited
from engaging directly or indirectly in all (b) This prohibition shall equally apply to
forms of trade union activities without foreign donations, grants or other forms
prejudice to normal contacts between of assistance, in cash or in kind, given
Philippine labor unions and recognized directly or indirectly to any employer or
international labor centers: Provided, employer's organization to support any
however, That aliens working in the activity or activities affecting trade
country with valid permits issued by the unions.
Department of Labor and Employment,
may exercise the right to self- (c) The Secretary of Labor shall
organization and join or assist labor promulgate rules and regulations to
organizations of their own choosing for regulate and control the giving and
purposes of collective receiving of such donations, grants, or
bargaining: Provided, further, That said other forms of assistance, including the
aliens are nationals of a country which mandatory reporting of the amounts of
grants the same or similar rights to the donations or grants, the specific
Filipino workers. recipients thereof, the projects or
activities proposed to be supported, and (a) the existing relations between
their duration. employers and employees in the
Philippines;
ARTICLE 286. [271] Applicability to
Farm Tenants and Rural Workers. — The (b) the growth of associations of
provisions of this Title pertaining to employees and the effect of such
foreign organizations and activities shall associations upon employer-employee
be deemed applicable likewise to all relations;
organizations of farm tenants, rural
workers and the like: Provided, That in (c) the extent and results of the methods
appropriate cases, the Secretary of of collective bargaining in the
Agrarian Reform shall exercise the determination of terms and conditions of
powers and responsibilities vested by employment;
this Title in the Secretary of Labor.
(d) the methods which have been tried
CHAPTER IV Penalties for Violation by employers and associations of
employees for maintaining mutually
ARTICLE 287. [272] Penalties. — (a) Any satisfactory relations;
person violating any of the provisions of
Article 264 of this Code shall be (e) desirable industrial practices which
punished by a fine of not less than one have been developed through collective
thousand pesos (P1,000.00) nor more bargaining and other voluntary
than ten thousand pesos (P10,000.00) arrangements;
and/or imprisonment for not less than
(f) the possible ways of increasing the
three months nor more than three (3)
usefulness and efficiency of collective
years, or both such fine and
bargaining for settling differences;
imprisonment, at the discretion of the
court. Prosecution under this provision (g) the possibilities for the adoption of
shall preclude prosecution for the same practical and effective methods of labor-
act under the Revised Penal Code, and management cooperation;
vice versa.
(h) any other aspects of employer-
(b) Upon the recommendation of the employee relations concerning the
Minister of Labor and Employment and promotion of harmony and
the Minister of National Defense, understanding between the parties; and
foreigners who violate the provisions of
this Title shall be subject to immediate (i) the relevance of labor laws and labor
and summary deportation by the relations to national development.
Commission on Immigration and
Deportation and shall be permanently The Secretary of Labor shall also inquire
barred from re-entering the country into the causes of industrial unrest and
without the special permission of the take all the necessary steps within his
President of the Philippines. power as may be prescribed by law to
alleviate the same, and shall from time
TITLE IX Special Provisions to time recommend the enactment of
ARTICLE 288. [273] Study of Labor- such remedial legislation as in his
Management Relations. — The Secretary judgment may be desirable for the
of Labor shall have the power and it maintenance and promotion of industrial
shall be his duty to inquire into: peace.

ARTICLE 289. [274] Visitorial Power. —

The Secretary of Labor and Employment
or his duly authorized representative is Employment, with twenty (20)
hereby empowered to inquire into representatives each from the labor and
financial activities of legitimate labor employers' sectors to be designated by
organizations upon the filing of a the President at regular intervals. For
complaint under oath and duly this purpose, a sectoral nomination,
supported by the written consent of at selection, and recall process shall be
least twenty percent (20%) of the total established by the DOLE in consultation
membership of the labor organization with the sectors observing the 'most
concerned and to examine their books of representative' organization criteria of
accounts and other records to determine ILO Convention No. 144.
compliance or non-compliance with the
law and to prosecute any violations of Tripartite Industrial Peace Councils
the law and the union constitution and (TIPCs) at the regional or industry level
by-laws: Provided, That such inquiry or shall also be established with
examination shall not be conducted representatives from government,
during the sixty (60) days freedom workers and employers to serve as a
period nor within the thirty (30) days continuing forum for tripartite
immediately preceding the date of advisement and consultation in aid of
election of union officials. streamlining the role of government,
empowering workers' and employers'
ARTICLE 290. [275] Tripartism, organizations, enhancing their
Tripartite Conferences, and Tripartite respective rights, attaining industrial
Industrial Peace Councils. — (a) peace, and improving productivity.
Tripartism in labor relations is hereby
declared a State policy. Towards this The TIPCs shall have the following
end, workers and employers shall, as far functions:
as practicable, be represented in
decision and policy-making bodies of the (1) Monitor the full implementation and
government. compliance of concerned sectors with
the provisions of all tripartite
(b) The Secretary of Labor and instruments, including international
Employment or his duly authorized conventions and declarations, codes of
representatives may from time to time conduct, and social accords;
call a national, regional, or industrial
tripartite conference of representatives (2) Participate in national, regional or
of government, workers and employers, industry-specific tripartite conferences
and other interest groups as the case which the President or the Secretary of
may be, for the consideration and Labor and Employment may call from
adoption of voluntary codes of principles time to time;
designed to promote industrial peace (3) Review existing labor, economic and
based on social justice or to align labor social policies and evaluate local and
movement relations with established international developments affecting
priorities in economic and social them;
development. In calling such conference,
the Secretary of Labor and Employment (4) Formulate, for submission to the
may consult with accredited President or to Congress, tripartite
representatives of workers and views, recommendations and proposals
employers. on labor, economic, and social concerns,
including the presentation of tripartite
(c) A National Tripartite Industrial Peace positions on relevant bills pending in
Council (NTIPC) shall be established, Congress;
headed by the Secretary of Labor and
(5) Advise the Secretary of Labor and right to be protected against dismissal
Employment in the formulation or except for a just and authorized cause
implementation of policies and and without prejudice to the
legislation affecting labor and requirement of notice under Article 283
employment; of this Code, the employer shall furnish
the worker whose employment is sought
(6) Serve as a communication channel to be terminated a written notice
and a mechanism for undertaking joint containing a statement of the causes for
programs among government, workers, termination and shall afford the latter
employers and their organizations ample opportunity to be heard and to
toward enhancing labor-management defend himself with the assistance of his
relations; and representative if he so desires in
accordance with company rules and
(7) Adopt its own program of activities regulations promulgated pursuant to
and rules, consistent with development guidelines set by the Department of
objectives. Labor and Employment. Any decision
All TIPCs shall be an integral part of the taken by the employer shall be without
organizational structure of the NTIPC. prejudice to the right of the worker to
contest the validity or legality of his
The operations of all TIPCs shall be dismissal by filing a complaint with the
funded from the regular budget of the regional branch of the National Labor
DOLE. Relations Commission. The burden of
proving that the termination was for a
ARTICLE 291. [276] Government valid or authorized cause shall rest on
Employees. — The terms and conditions the employer. The Secretary of the
of employment of all government Department of Labor and Employment
employees, including employees of may suspend the effects of the
government-owned and controlled termination pending resolution of the
corporations, shall be governed by the dispute in the event of a prima
Civil Service Law, rules and regulations. facie finding by the appropriate official
Their salaries shall be standardized by of the Department of Labor and
the National Assembly as provided for in Employment before whom such dispute
the New Constitution. However, there is pending that the termination may
shall be no reduction of existing wages, cause a serious labor dispute or is in
benefits and other terms and conditions implementation of a mass lay-off.
of employment being enjoyed by them at
the time of the adoption of this Code. (c) Any employee, whether employed for
a definite period or not, shall, beginning
ARTICLE 292. [277] Miscellaneous on his first day of service, be considered
Provisions. — (a) All unions are as an employee for purposes of
authorized to collect reasonable membership in any labor union.
membership fees, union dues,
assessments and fines and other (d) No docket fee shall be assessed in
contributions for labor education and labor standards disputes. In all other
research, mutual death and disputes, docket fees may be assessed
hospitalization benefits, welfare fund, against the filing party, provided that in
strike fund and credit and cooperative bargaining deadlock, such fees shall be
undertakings. shared equally by the negotiating
parties.
(b) Subject to the constitutional right of
workers to security of tenure and their (e) The Minister of Labor and
Employment and the Minister of the
Budget shall cause to be created or programs at appropriate levels of the
reclassified in accordance with law such enterprise based on shared
positions as may be necessary to carry responsibility and mutual respect in
out the objectives of this Code and cause order to ensure industrial peace and
the upgrading of the salaries of the improvement in productivity, working
personnel involved in the Labor conditions and the quality of working
Relations System of the Ministry. Funds life.
needed for this purpose shall be
provided out of the Special Activities (h) In establishments where no
Fund appropriated by Batas Pambansa legitimate labor organization exists,
Blg. 80 and from annual appropriations labor-management committees may be
thereafter. formed voluntarily by workers and
employers for the purpose of promoting
(f) A special Voluntary Arbitration Fund industrial peace. The Department of
is hereby established in the Board to Labor and Employment shall endeavor to
subsidize the cost of voluntary enlighten and educate the workers and
arbitration in cases involving the employers on their rights and
interpretation and implementation of the responsibilities through labor education
Collective Bargaining Agreement, with emphasis on the policy thrusts of
including the Arbitrator's fees, and for this Code.
such other related purposes to promote
and develop voluntary arbitration. The (i) To ensure speedy labor justice, the
Board shall administer the Special periods provided in this Code within
Voluntary Arbitration Fund in which decisions or resolutions of labor
accordance with the guidelines it may relations cases or matters should be
adopt upon the recommendation of the rendered shall be mandatory. For this
Council, which guidelines shall be purpose, a case or matter shall be
subject to the approval of the Secretary deemed submitted for decision or
of Labor and Employment. Continuing resolution upon the filing of the last
funds needed for this purpose in the pleading or memorandum required by
initial yearly amount of fifteen million the rules of the Commission or by the
pesos (P15,000,000.00) shall be provided Commission itself, or the Labor Arbiter,
in the 1989 annual general or the Director of the Bureau of Labor
appropriations acts. Relations or Med-Arbiter, or the
Regional Director.
The amount of subsidy in appropriate
cases shall be determined by the Board Upon expiration of the corresponding
in accordance with established period, a certification stating why a
guidelines issued by it upon the decision or resolution has not been
recommendation of the Council. rendered within the said period shall be
issued forthwith by the Chairman of the
The Fund shall also be utilized for the Commission, the Executive Labor
operation of the Council, the training Arbiter, or the Director of the Bureau of
and education of Voluntary Arbitrators, Labor Relations or Med-Arbiter, or the
and the promotion and development of a Regional Director, as the case may be,
comprehensive Voluntary Arbitration and a copy thereof served upon the
Program. parties.

(g) The Ministry shall help promote and Despite the expiration of the applicable
gradually develop, with the agreement of mandatory period, the aforesaid officials
labor organizations and employers, shall, without prejudice to any liability
labor-management cooperation which may have been incurred as a
consequence thereof, see to it that the considered a regular employee with
case or matter shall be decided or respect to the activity in which he is
resolved without any further delay. employed and his employment shall
continue while such activity exists.
TITLE I Termination of Employment
ARTICLE 296. [281] Probationary
ARTICLE 293. [278] Coverage. — The Employment. — Probationary
provisions of this Title shall apply to all employment shall not exceed six (6)
establishments or undertakings, whether months from the date the employee
for profit or not. started working, unless it is covered by
an apprenticeship agreement stipulating
ARTICLE 294. [279] Security of Tenure. a longer period. The services of an
— In cases of regular employment, the employee who has been engaged on a
employer shall not terminate the probationary basis may be terminated
services of an employee except for a just for a just cause or when he fails to
cause or when authorized by this Title. qualify as a regular employee in
An employee who is unjustly dismissed accordance with reasonable standards
from work shall be entitled to made known by the employer to the
reinstatement without loss of seniority employee at the time of his engagement.
rights and other privileges and to his full An employee who is allowed to work
backwages, inclusive of allowances, and after a probationary period shall be
to his other benefits or their monetary considered a regular employee.
equivalent computed from the time his
compensation was withheld from him up ARTICLE 297. [282] Termination by
to the time of his actual reinstatement. Employer. — An employer may terminate
an employment for any of the following
ARTICLE 295. [280] Regular and Casual causes:
Employment. — The provisions of
written agreement to the contrary (a) Serious misconduct or willful
notwithstanding and regardless of the disobedience by the employee of the
oral agreement of the parties, an lawful orders of his employer or
employment shall be deemed to be representative in connection with his
regular where the employee has been work;
engaged to perform activities which are
usually necessary or desirable in the (b) Gross and habitual neglect by the
usual business or trade of the employer, employee of his duties;
except where the employment has been
fixed for a specific project or (c) Fraud or willful breach by the
undertaking the completion or employee of the trust reposed in him by
termination of which has been his employer or duly authorized
determined at the time of the representative;
engagement of the employee or where (d) Commission of a crime or offense by
the work or service to be performed is the employee against the person of his
seasonal in nature and the employment employer or any immediate member of
is for the duration of the season. his family or his duly authorized
An employment shall be deemed to be representatives; and
casual if it is not covered by the (e) Other causes analogous to the
preceding paragraph: Provided, That any foregoing.
employee who has rendered at least one
year of service, whether such service is ARTICLE 298. [283] Closure of
continuous or broken, shall be Establishment and Reduction of
Personnel. — The employer may also serving a written notice on the employer
terminate the employment of any at least one (1) month in advance. The
employee due to the installation of labor- employer upon whom no such notice was
saving devices, redundancy, served may hold the employee liable for
retrenchment to prevent losses or the damages.
closing or cessation of operation of the
establishment or undertaking unless the (b) An employee may put an end to the
closing is for the purpose of relationship without serving any notice
circumventing the provisions of this on the employer for any of the following
Title, by serving a written notice on the just causes:
workers and the Ministry of Labor and
Employment at least one (1) month 1. Serious insult by the employer or his
before the intended date thereof. In case representative on the honor and person
of termination due to the installation of of the employee;
labor-saving devices or redundancy, the 2. Inhuman and unbearable treatment
worker affected thereby shall be entitled accorded the employee by the employer
to a separation pay equivalent to at least or his representative;
his one (1) month pay or to at least one
(1) month pay for every year of service, 3. Commission of a crime or offense by
whichever is higher. In case of the employer or his representative
retrenchment to prevent losses and in against the person of the employee or
cases of closures or cessation of any of the immediate members of his
operations of establishment or family; and
undertaking not due to serious business
losses or financial reverses, the 4. Other causes analogous to any of the
separation pay shall be equivalent to one foregoing.
(1) month pay or at least one-half (1/2)
month pay for every year of service, ARTICLE 301. [286] When Employment
whichever is higher. A fraction of at not Deemed Terminated. —
least six (6) months shall be considered The bonafide suspension of the operation
one (1) whole year. of a business or undertaking for a period
not exceeding six (6) months, or the
ARTICLE 299. [284] Disease as Ground fulfillment by the employee of a military
for Termination. — An employer may or civic duty shall not terminate
terminate the services of an employee employment. In all such cases, the
who has been found to be suffering from employer shall reinstate the employee to
any disease and whose continued his former position without loss of
employment is prohibited by law or is seniority rights if he indicates his desire
prejudicial to his health as well as to the to resume his work not later than one (1)
health of his co-employees: Provided, month from the resumption of operations
That he is paid separation pay equivalent of his employer or from his relief from
to at least one (1) month salary or to the military or civic duty.
one-half (1/2) month salary for every
TITLE II Retirement from the Service
year of service, whichever is greater, a
fraction of at least six (6) months being ARTICLE 302. [287] Retirement. — Any
considered as one (1) whole year. employee may be retired upon reaching
the retirement age established in the
ARTICLE 300. [285] Termination by
collective bargaining agreement or other
Employee. — (a) An employee may
applicable employment contract.
terminate without just cause the
employee-employer relationship by
In case of retirement, the employee shall Retail, service and agricultural
be entitled to receive such retirement establishments or operations employing
benefits as he may have earned under not more than ten (10) employees or
existing laws and any collective workers are exempted from the coverage
bargaining agreement and other of this provision.
agreements: Provided, however, That an
employee's retirement benefits under Violation of this provision is hereby
any collective bargaining and other declared unlawful and subject to the
agreements shall not be less than those penal provisions provided under Article
provided herein. 302 of this Code.

In the absence of a retirement plan or Nothing in this Article shall deprive any
agreement providing for retirement employee of benefits to which he may be
benefits of employees in the entitled under Section 12-B of Republic
establishment, an employee upon Act No. 1161, as amended, otherwise
reaching the age of sixty (60) years or known as the Social Security Act of 1997
more, but not beyond sixty-five (65) and other existing laws or company
years which is hereby declared the policies or practices.
compulsory retirement age, who has
served at least five (5) years in the said ARTICLE 302-A. Retirement Age of
establishment, may retire and shall be Racehorse Jockeys. — A professional
entitled to retirement pay equivalent to racehorse jockey who is duly licensed by
at least one-half (1/2) month salary for the Philippine Racing Commission
every year of service, a fraction of at (PHILRACOM) shall be compulsorily
least six (6) months being considered as retired upon reaching the age of fifty-five
one (1) whole year. (55) years and shall be entitled to all
retirement benefits provided for under
Unless the parties provide for broader Article 302 of this Code: Provided, That
inclusions, the term 'one-half (1/2) he shall pay additional premiums to the
month salary' shall mean fifteen (15) Social Security System (SSS) as may be
days plus one-twelfth (1/12) of the 13th prescribed in the implementing rules
month pay and the cash equivalent of and regulations of this Act.
not more than five (5) days of service
incentive leaves. Nothing in this Article shall deprive any
racehorse jockey of the benefits he is
An underground or surface mining entitled to under existing laws, company
employee upon reaching the age of fifty policies or practices. (as created by
(50) years or more, but not beyond sixty Republic Act No. 10789, [May 3,
(60) years which is hereby declared the 2016])
compulsory retirement age for both
underground and surface mine workers, TITLE I Penal Provisions and Liabilities
who has served at least five (5) years as
underground or surface mine worker ARTICLE 303. [288] Penalties. — Except
may retire and shall be entitled to all the as otherwise provided in this Code, or
retirement benefits provided for in this unless the acts complained of hinge on a
Article. question of interpretation or
implementation of ambiguous provisions
For purposes of this Act, surface mine of an existing collective bargaining
workers shall only include mill plant agreement, any violation of the
workers, electrical, mechanical and provisions of this Code declared to be
tailings pond personnel. unlawful or penal in nature shall be
punished with a fine of not less than One
Thousand Pesos (P1,000.00) nor more All money claims accruing prior to the
than Ten Thousand Pesos (P10,000.00), effectivity of this Code shall be filed with
or imprisonment of not less than three the appropriate entities established
months nor more than three years, or under this Code within one (1) year from
both such fine and imprisonment at the the date of effectivity, and shall be
discretion of the court. processed or determined in accordance
with the implementing rules and
In addition to such penalty, any alien regulations of the Code; otherwise, they
found guilty shall be summarily deported shall be forever barred.
upon completion of service of sentence.
Workmen's compensation claims
Any provision of law to the contrary accruing prior to the effectivity of this
notwithstanding, any criminal offense Code and during the period from
punished in this Code shall be under the November 1, 1974 up to December 31,
concurrent jurisdiction of the Municipal 1974, shall be filed with the appropriate
or City Courts and the Courts of First regional offices of the Department of
Instance. Labor not later than March 31, 1975;
otherwise, they shall forever be barred.
ARTICLE 304. [289] Who are Liable The claims shall be processed and
When Committed by Other Than Natural adjudicated in accordance with the law
Person. — If the offense is committed by and rules at the time their causes of
a corporation, trust, firm, partnership, action accrued.
association or any other entity, the
penalty shall be imposed upon the guilty ARTICLE 307. [292] Institution of Money
officer or officers of such corporation, Claims. — Money claims specified in the
trust, firm, partnership, association or immediately preceding Article shall be
entity. filed before the appropriate entity
TITLE II Prescription of Offenses and independently of the criminal action that
Claims may be instituted in the proper courts.

ARTICLE 305. [290] Offenses. — Pending the final determination of the

Offenses penalized under this Code and merits of money claims filed with the
the rules and regulations issued appropriate entity, no civil action arising
pursuant thereto shall prescribe in three from the same cause of action shall be
(3) years. filed with any court. This provision shall
not apply to employees' compensation
All unfair labor practice arising from cases which shall be processed and
Book V shall be filed with the determined strictly in accordance with
appropriate agency within one (1) year the pertinent provisions of this Code.
from accrual of such unfair labor TITLE III Transitory and Final Provisions
practice; otherwise, they shall be forever
barred. ARTICLE 308. [293] Application of Law
Enacted Prior to this Code. — All actions
ARTICLE 306. [291] Money Claims. — or claims accruing prior to the effectivity
All money claims arising from employer- of this Code shall be determined in
employee relations accruing during the accordance with the laws in force at the
effectivity of this Code shall be filed time of their accrual.
within three (3) years from the time the
cause of action accrued; otherwise they ARTICLE 309. [294] Secretary of Labor
shall be forever barred. to Initiate Integration of Maternity
Leave Benefits. — Within six (6) months
after this Code takes effect, the Such amount as may be necessary to
Secretary of Labor shall initiate such cover the operational expenses of the
measures as may be necessary for the Bureau of Workmen's Compensation and
integration of maternity leave benefits the Workmen's Compensation Units,
into the Social Security System, in the including the salaries of incumbent
case of private employment, and the personnel for the period up to March 31,
Government Service Insurance System, 1976 shall be appropriated from the
in the case of public employment. unprogrammed funds of the Department
of Labor.
ARTICLE 310. [295] Funding of the
Overseas Employment Development ARTICLE 312. [297] Continuation of
Board and National Seamen's Board. — Insurance Policies and Indemnity Bonds.
Referred to in Articles 17 and 20, — All workmen's compensation
respectively, of this Code shall initially insurance policies and indemnity bonds
be funded out of the unprogrammed for self-insured employers existing upon
fund of the Department of Labor and the the effectivity of this Code shall remain
National Manpower and Youth Council. in force and effect until the expiration
dates of such policies or the lapse of the
ARTICLE 311. [296] Termination of the period of such bonds, as the case may
Workmen's Compensation Program. — be, but in no case beyond December 31,
The Bureau of Workmen's 1974. Claims may be filed against the
Compensation, Workmen's insurance carriers and/or self-insured
Compensation Commission, and employers for causes of action which
Workmen's Compensation Units in the accrued during the existence of said
regional offices of the Department of policies or authority to self-insure.
Labor shall continue to exercise the
functions and the respective jurisdictions ARTICLE 313. [298] Abolition of the
over workmen's compensation cases Court of Industrial Relations and the
vested upon them by Act No. 3428, as National Labor Relations Commission. —
amended, otherwise known as The Court of Industrial Relations and the
the Workmen's Compensation Act until National Labor Relations Commission
March 31, 1976. Likewise, the term of established under Presidential Decree
office of incumbent members of the No. 21 are hereby abolished. All
Workmen's Compensation Commission, unexpended funds, properties,
including its Chairman and any equipment and records of the Court of
commissioner deemed retired as of Industrial Relations, and such of its
December 31, 1975, as well as the personnel as may be necessary, are
present employees and officials of the hereby transferred to the Commission
Bureau of Workmen's Compensation, and to its regional branches. All
Workmen's Compensation Commission unexpended funds, properties and
and the Workmen's Compensation Units equipment of the National Labor
shall continue up to that date. Relations Commission established
Thereafter, said offices shall be under Presidential Decree No. 21 are
considered abolished and all officials and transferred to the Bureau of Labor
personnel thereof shall be transferred to Relations. Personnel not absorbed by or
and mandatorily absorbed by the transferred to the Commission shall
Department of Labor, subject to enjoy benefits granted under existing
Presidential Decree No. 6, Letters of laws.
Instructions Nos. 14 and 14-A and the
Civil Service Law and rules. ARTICLE 314. [299] Disposition of
Pending Cases. — All cases pending
before the Court of Industrial Relations
and the National Labor Relations any person or circumstance, is held
Commission established invalid, the remainder of this code, or
under Presidential Decree No. 21 on the the application of such provision or part
date of effectivity of this Code shall be to other persons or circumstances, shall
transferred to and processed by the not be affected thereby.
corresponding labor relations divisions
or the National Labor Relations ARTICLE 317. [302] Repealing Clause.
Commission created under this Code — All labor laws not adopted as part of
having cognizance of the same in this Code either directly or by reference
accordance with the procedure laid are hereby repealed. All provisions of
down herein and its implementing rules existing laws, orders, decrees, rules and
and regulations. Cases on labor relations regulations inconsistent herewith are
on appeal with the Secretary of Labor or likewise repealed.
the Office of the President of the
Philippines as of the date of effectivity of Done in the City of Manila, this 1st day
this Code shall remain under their of May in the year of our Lord, nineteen
respective jurisdictions and shall be hundred and seventy-four.
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.

ARTICLE 315. [300] Personnel Whose

Services are Terminated. — Personnel of
agencies or any of their subordinate
units whose services are terminated as a
result of the implementation of this Code
shall enjoy the rights and protection
provided in Sections 5 and 6 of Republic
Act numbered fifty-four hundred and
thirty five and such other pertinent laws,
rules and regulations. In any case, no
lay-off shall be effected until funds to
cover the gratuity and/or retirement
benefits of those laid off are duly
certified as available.

ARTICLE 316. [301] Separability

Provisions. — If any provision or part of
this Code, or the application thereof to