I.

Preliminary Title

●​ Article 1: Name of Decree

●​ Known as the "Labor Code of the Philippines."
●​ Article 2: Date of Effectivity
●​ Took effect six (6) months after its promulgation (November 1, 1974).
●​ Article 3: Declaration of Basic Policy
●​ State's Role: Afford protection to labor, promote full employment, ensure equal
work opportunities (regardless of sex, race, or creed), and regulate relations
between workers and employers.
●​ Worker's Rights: Assure rights to self-organization, collective bargaining, security
of tenure, and just and humane conditions of work.
●​ Article 4: Construction in Favor of Labor
●​ All doubts in implementation and interpretation of the Code and its rules shall be
resolved in favor of labor.
●​ Article 5: Rules and Regulations
●​ DOLE and other agencies shall promulgate implementing rules and regulations.
●​ Effective fifteen (15) days after announcement in newspapers of general
circulation.
●​ Article 6: Applicability
●​ All rights and benefits apply to all workers, agricultural or non-agricultural, unless
otherwise provided.

II. Book One: Pre-Employment

●​ Title I: Recruitment and Placement of Workers

●​ Article 12: Statement of Objectives
●​ Promote full employment, protect workers (local/overseas), facilitate free
choice of employment, regulate worker movement, regulate alien
employment, strengthen public employment offices, and ensure careful
selection of Filipino workers for overseas employment.
●​ Article 13: Definitions
●​ Worker: Any member of the labor force, employed or unemployed.
●​ Recruitment and Placement: Canvassing, enlisting, contracting,
transporting, utilizing, hiring, or procuring workers; includes referrals,
contract services, promising/advertising for employment (for profit or not).
●​ Private Fee-Charging Employment Agency: Engaged in
recruitment/placement for a fee charged from workers/employers or both.
 ●​ License: Document from DOLE authorizing private employment agency
operation.
●​ Private Recruitment Entity: Engaged in recruitment/placement without
charging fees from workers/employers.
●​ Authority: Document from DOLE authorizing private recruitment entity
activities.
●​ Seaman: Person employed in a vessel engaged in maritime navigation.
●​ Overseas Employment: Employment outside the Philippines.
●​ Emigrant: Person emigrating to a foreign country with an immigrant
visa/resident permit.
●​ Article 14: Employment Promotion
●​ Secretary of Labor's powers: Organize new employment offices, establish
nationwide job clearance/information system, develop programs for labor
mobility, and require employment information submission.
●​ Article 15: Bureau of Employment Services (Functions now largely absorbed by
other agencies like POEA and BLE)
●​ Primarily responsible for developing and monitoring comprehensive
employment programs.
●​ Functions include: formulating plans, regulating private sector
participation, developing employment programs for disadvantaged
groups, regulating alien employment, developing labor market information
system, developing vocational guidance/testing, and maintaining a central
registry of skills (except seamen).
●​ Article 16: Private Recruitment
●​ Only public employment offices or entities authorized by the Secretary of
Labor can engage in recruitment and placement (with exceptions).
●​ Article 17: Overseas Employment Development Board (Functions now absorbed
by POEA)
●​ Created to undertake systematic overseas employment programs and
protect workers' rights.
●​ Powers/Duties: Promote overseas employment, secure best terms for
contract workers, recruit on government-to-government basis, and act as
secretariat for the Welfare and Training Fund for Overseas Workers (now
OWWA).
●​ Article 18: Ban on Direct-Hiring
●​ No employer may directly hire Filipino workers for overseas employment
except through authorized Boards and entities.
●​ Exemptions: Diplomatic corps, international organizations, and other
employers allowed by the Secretary of Labor.
●​ Article 19: Office of Emigrant Affairs (Now Commission on Filipinos Overseas)
●​ Created in DOLE to maintain ties with Filipino migrant communities and
promote their welfare.
 ●​ Functions: Liaison with migrant communities, welfare/cultural services,
reintegration promotion, economic/political/cultural ties, and other
appropriate activities.
●​ Article 20: National Seamen Board (Functions now absorbed by POEA)
●​ Created to develop/maintain programs for Filipino seamen.
●​ Powers/Duties: Free placement services, regulate/supervise agents, and
maintain a registry of seamen.
●​ Had original/exclusive jurisdiction over employer-employee relations
cases for seamen (now transferred to NLRC).
●​ Article 21: Foreign Service Role and Participation
●​ Labor attachés, labor reporting officers, and diplomatic/consular officials
provide assistance to Filipino workers abroad.
●​ Duties: Provide assistance, ensure non-exploitation/non-discrimination,
verify employment contracts, conduct studies on employment market,
gather/analyze employment data, and perform other duties.
●​ Article 22: Mandatory Remittance of Foreign Exchange Earnings
●​ Mandatory for Filipino workers abroad to remit a portion of earnings to
families/dependents/beneficiaries.
●​ Article 23: Composition of the Boards (Refers to defunct OEDB and NSB, now
POEA)
●​ Specified composition of OEDB and NSB, including representatives from
various government agencies, workers', and employers' organizations.
●​ Article 24: Boards to Issue Rules and Collect Fees
●​ Boards issue rules and collect fees from employers to promote their
objectives.
●​ Chapter II: Regulation of Recruitment and Placement Activities
●​ Article 25: Private Sector Participation
●​ Private sector can participate in recruitment/placement under DOLE
guidelines.
●​ Article 26: Travel Agencies Prohibited to Recruit
●​ Travel agencies and airline sales agencies are prohibited from
recruitment/placement for overseas employment.
●​ Article 27: Citizenship Requirement
●​ Only Filipino citizens or corporations (at least 75% Filipino-owned) can
participate in recruitment/placement.
●​ Article 28: Capitalization
●​ Applicants for license/authority must have substantial capitalization.
●​ Article 29: Non-transferability of License or Authority
●​ License/authority cannot be used by others or transferred without prior
DOLE approval.
●​ Article 30: Registration Fees
●​ Secretary of Labor promulgates a schedule of fees for license/authority
registration.
●​ Article 31: Bonds
 ●​ Applicants must post cash and surety bonds to guarantee compliance.
●​ Article 32: Fees to be Paid by Workers
●​ No fee charged until employment is obtained or commenced.
●​ Fees must be covered by receipt. Secretary of Labor promulgates
allowable fees.
●​ Article 33: Reports on Employment Status
●​ Secretary of Labor may require reports on employment status, vacancies,
requisitions, separations, wages, etc.
●​ Article 34: Prohibited Practices (Also constitute illegal recruitment)
●​ Charging excessive fees.
●​ Furnishing false information/documents.
●​ Giving false testimony/information to secure license/authority.
●​ Inducing employed workers to quit for another offer (unless to liberate
from oppressive terms).
●​ Influencing non-employment of workers not through their agency.
●​ Recruiting for jobs harmful to public health/morality/dignity of the
Philippines.
●​ Obstructing inspection.
●​ Failing to file reports.
●​ Substituting/altering employment contracts without approval.
●​ Being an officer/member of a travel agency engaged in recruitment.
●​ Withholding travel documents for monetary/financial considerations (other
than authorized).
●​ Article 35: Suspension and/or Cancellation of License or Authority
●​ Secretary of Labor (or POEA) can suspend/cancel license/authority for
violations.
●​ Chapter III: Miscellaneous Provisions
●​ Article 36: Regulatory Power
●​ Secretary of Labor has power to restrict/regulate recruitment/placement
activities and issue rules.
●​ Article 37: Visitorial Power
●​ Secretary of Labor or representatives can inspect premises, records,
question employees, and investigate violations.
●​ Article 38: Illegal Recruitment
●​ Recruitment activities by non-licensees/non-holders of authority are
illegal.
●​ Illegal recruitment by syndicate (3+ persons conspiring) or in large scale
(3+ persons individually/group) is economic sabotage.
●​ Note: Paragraph (c) regarding arrest and detention by Secretary of Labor
was declared unconstitutional.
●​ Article 39: Penalties
●​ Economic Sabotage: Life imprisonment and P100,000 fine.
●​ Licensee/Authority Holder Violation: Imprisonment (2-5 years) or fine
(P10,000-P50,000) or both.
 ●​ Non-Licensee/Non-Authority Holder Violation: Imprisonment (4-8 years)
or fine (P20,000-P100,000) or both.
●​ Corporation/Partnership/Entity: Penalty imposed on responsible officer(s).
Alien officers deported.
●​ Automatic Revocation: Conviction leads to automatic revocation of
license/authority and forfeiture of bonds.

III. Book Two: Human Resources Development Program

●​ Title I: National Manpower Development Program (Substantively modified/superseded

by RA 7796 - TESDA Act of 1994)
●​ Article 43: Statement of Objective
●​ Develop human resources, establish training institutions, ensure efficient
allocation/development/utilization of manpower, promote employment,
accelerate economic/social growth.
●​ Article 44: Definitions
●​ Manpower: Portion of population with actual/potential capability to
contribute to goods/services.
●​ Entrepreneurship: Training for self-employment or assisting small
industries.
●​ Article 45: National Manpower and Youth Council; Composition (Repealed by
TESDA Act)
●​ Original composition included Secretary of Labor (Chairman), Secretary
of Education/Culture (Vice-Chairman), other ex-officio members, and
private sector representatives.
●​ Article 46: National Manpower Plan (Superseded by TESDA Act)
●​ Council to formulate long-term national manpower plan, updated annually,
submitted to President.
●​ Article 47: National Manpower Skills Center (Absorbed by TESDA Act)
●​ Council to establish national and regional skills centers.
●​ Article 48: Establishment and Formulation of Skills Standards (Transferred to
TESDA)
●​ Council to establish national skills standards for industry trades.
●​ Article 49: Administration of Training Programs (Superseded by TESDA Act)
●​ Council to provide instructor training, entrepreneurship development,
vocational training, and assist employers in training schemes.
●​ Article 50: Industry Boards (Read in relation to TESDA Act)
●​ Council to establish industry boards for manpower development schemes
and skills standards.
●​ Article 51: Employment Service Training Functions (Bureau of Employment
Services replaced by Bureau of Local Employment)
 ●​ Council to utilize DOLE employment service for graduate placement and
manpower surveys.
●​ Article 52: Incentive Scheme (Superseded by TESDA Act)
●​ Additional deduction from taxable income for labor training expenses (1/2
value, not exceeding 10% of direct labor wage).
●​ Article 53: Council Secretariat (Superseded by TESDA Act)
●​ Council to have a Secretariat headed by a Director-General.
●​ Article 54: Regional Manpower Development Offices (Superseded by TESDA
Act)
●​ Council to create regional manpower development offices.
●​ Article 55: Consultants and Technical Assistance, Publication, and Research
(Reproduced with modifications in TESDA Act)
●​ Council authorized to hire consultants and private organizations for
research/publication.
●​ Article 56: Rules and Regulations (Superseded by TESDA Act)
●​ Council to define functions and issue rules.
●​ Title II: Training and Employment of Special Workers
●​ Chapter I: Apprentices
●​ Article 57: Statement of Objectives
●​ Meet demand for trained manpower, establish national
apprenticeship program, establish apprenticeship standards.
●​ Article 58: Definition of Terms (Superseded by TESDA Act definitions)
●​ Apprenticeship: Practical training on the job supplemented by
theoretical instruction.
●​ Apprentice: Worker covered by written apprenticeship agreement.
●​ Apprenticeable Occupation: Trade requiring >3 months practical
training + theoretical instruction.
●​ Apprenticeship Agreement: Employment contract for training.
●​ Article 59: Qualifications of Apprentice
●​ At least 14 years old (subject to child labor laws), vocational
aptitude, ability to comprehend instructions.
●​ Article 60: Employment of Apprentices
●​ Only highly technical industries may employ apprentices in
approved apprenticeable occupations.
●​ Article 61: Contents of Apprenticeship Agreements
●​ Conform to DOLE rules, period not exceeding 6 months.
●​ Wage rates not less than 75% of minimum wage.
●​ Article 62: Signing of Apprenticeship Agreement
●​ Signed by employer/agent and apprentice (or parent/guardian for
minors).
●​ Ratified by apprenticeship committees.
●​ Article 63: Venue of Apprenticeship Programs
●​ Sponsoring firm, DOLE training center, or initial training in center
with subsequent work participation.
 ●​ Article 64: Sponsoring of Apprenticeship Program
●​ Can be undertaken by single employer, group, or civic
organization.
●​ Article 65: Investigation of Violation of Apprenticeship Agreement
●​ DOLE investigates violations.
●​ Article 66: Appeal to the Secretary of Labor and Employment
●​ Decisions can be appealed to Secretary of Labor within 5 days.
●​ Article 67: Exhaustion of Administrative Remedies
●​ Administrative remedies must be exhausted before court action.
●​ Article 68: Aptitude Testing of Applicants
●​ Employers primarily responsible for aptitude tests; DOLE provides
service if facilities are inadequate.
●​ Article 69: Responsibility for Theoretical Instruction
●​ Employer can provide or delegate to government agency.
●​ Article 70: Voluntary Organization of Apprenticeship Programs;
Exemptions
●​ Primarily voluntary.
●​ Compulsory training may be required by President for national
security/economic development.
●​ Companies utilizing foreign technicians in apprenticeable trades
must set up programs.
●​ Article 71: Deductibility of Training Costs
●​ Additional 1/2 deduction from taxable income for training
expenses (if approved by Council, not exceeding 10% of direct
labor wage, and apprentices paid minimum wage).
●​ Article 72: Apprentices Without Compensation
●​ Secretary of Labor may authorize hiring of uncompensated
apprentices if training is required by curriculum/graduation/board
exam.
●​ Chapter II: Learners
●​ Article 73: Learners Defined (Superseded by TESDA Act definition)
●​ Trainees in semi-skilled/non-apprenticeable industrial occupations,
learned through practical training (not exceeding 3 months).
●​ Article 74: When Learners May Be Hired
●​ When no experienced workers available, necessary to prevent
curtailment of employment, and does not create unfair
competition/lower working standards.
●​ Article 75: Learnership Agreement
●​ Agreement includes names, duration (max 3 months), wages (not
less than 75% minimum wage), and commitment to employ as
regular employees upon completion.
●​ Learners working for first 2 months deemed regular if training
terminated without their fault.
●​ Article 76: Learners in Piecework
 ●​ Paid in full for work done during training.
●​ Article 77: Penalty Clause
●​ Violations subject to general penalty clause.
●​ Chapter III: Handicapped Workers (Affected by RA 7277 - Magna Carta for
Disabled Persons)
●​ Article 78: Definition (RA 7277 defines "disabled persons")
●​ Those whose earning capacity is impaired by age, physical/mental
deficiency, or injury.
●​ Article 79: When Employable (RA 7277 provides for equal opportunity)
●​ When employment is necessary to prevent curtailment of
opportunities and does not create unfair competition/lower working
standards.
●​ Article 80: Employment Agreement
●​ Agreement includes names, rate (not less than 75% minimum
wage), duration, and work to be performed.
●​ Article 81: Eligibility for Apprenticeship (Superseded by RA 7277)
●​ Handicapped workers may be hired as apprentices/learners if
handicap does not impede job performance.

IV. Book Three: Conditions of Employment

●​ Title I: Working Conditions and Rest Periods

●​ Chapter I: Hours of Work
●​ Article 82: Coverage
●​ Applies to employees in all establishments (profit or not).
●​ Exclusions: Government employees, managerial employees, field
personnel, employer's family dependents, domestic helpers,
persons in personal service, and workers paid by results.
●​ Managerial Employees: Primary duty is management or
officers/members of managerial staff.
●​ Field Personnel: Non-agricultural employees whose duties are
away from principal place of business and actual hours cannot be
determined with certainty.
●​ Article 83: Normal Hours of Work
●​ Not exceeding eight (8) hours a day.
●​ Health Personnel: 8 hours/day, 5 days/week (exclusive of meals),
with 30% additional pay for 6th day if required to work 6 days/48
hours.
●​ Article 84: Hours Worked
 ●​ Includes time on duty/at prescribed workplace, and time
suffered/permitted to work.
●​ Short rest periods count as hours worked.
●​ Article 85: Meal Periods
●​ Not less than sixty (60) minutes time-off for regular meals (shorter
periods may be compensable under regulations).
●​ Article 86: Night-Shift Differential
●​ Not less than 10% of regular wage for work between 10 PM and 6
AM.
●​ Article 87: Overtime Work
●​ Additional 25% of regular wage for work beyond 8 hours.
●​ Additional 30% of regular wage (on top of holiday/rest day rate) for
work beyond 8 hours on holiday/rest day.
●​ Article 88: Undertime Not Offset by Overtime
●​ Undertime cannot be offset by overtime.
●​ Article 89: Emergency Overtime Work (When required by employer)
●​ War/national/local emergency.
●​ Prevent loss of life/property or imminent danger due to calamity.
●​ Urgent work on machines/installations to avoid serious
loss/damage.
●​ Prevent loss/damage to perishable goods.
●​ Completion/continuation of work necessary to prevent serious
obstruction/prejudice to business.
●​ Article 90: Computation of Additional Compensation
●​ "Regular wage" includes cash wage only, without deduction for
facilities.
●​ Chapter II: Weekly Rest Periods
●​ Article 91: Right to Weekly Rest Day
●​ Not less than twenty-four (24) consecutive hours after every six (6)
consecutive normal work days.
●​ Employer determines schedule, respecting religious preferences
(unless serious prejudice to operations).
●​ Article 92: When Employer May Require Work on a Rest Day
●​ Emergencies (calamities, accidents).
●​ Urgent work on machinery to avoid serious loss.
●​ Abnormal pressure of work where other measures are not
feasible.
●​ Prevent loss/damage to perishable goods.
●​ Continuous operations where stoppage causes irreparable
injury/loss.
●​ Other analogous circumstances determined by Secretary of Labor.
●​ Article 93: Compensation for Rest Day, Sunday or Holiday Work
●​ Work on scheduled rest day: additional 30% of regular wage.
 ●​ Work on Sunday (if established rest day): additional 30% of
regular wage.
●​ No regular workdays/rest days: additional 30% for
Sundays/holidays.
●​ Special holiday work: additional 30% of regular wage.
●​ Special holiday work on scheduled rest day: additional 50% of
regular wage.
●​ Higher rates in CBA/contract prevail.
●​ Chapter III: Holidays, Service Incentive Leaves, and Service Charges
●​ Article 94: Right to Holiday Pay
●​ Regular daily wage for regular holidays (except retail/service
establishments with <10 workers).
●​ Work on holiday: twice regular rate.
●​ Holidays include: New Year’s Day, Maundy Thursday, Good
Friday, April 9, May 1, June 12, July 4, November 30, December
25, December 30, and general election day. (Note: Specific
holidays and their observance dates are subject to further
laws/proclamations, e.g., RA 9849 for Eidul Adha, RA 9492 for
movable holidays).
●​ Article 95: Right to Service Incentive Leave
●​ Five (5) days with pay after at least one year of service.
●​ Exclusions: Those already enjoying, those with vacation leave of
at least 5 days, establishments with <10 employees, or exempted
establishments.
●​ Benefits in excess are not subject to arbitration.
●​ Article 96: Service Charges (Amended by RA 11360)
●​ All service charges collected by hotels, restaurants, etc.,
distributed completely and equally among covered workers
(except managerial employees).
●​ Service charges not considered in determining compliance with
increased minimum wage.
●​ Grievance mechanism for disputes; if unresolved, referred to
DOLE regional office for conciliation.
●​ Managerial Employees: Vested with powers to lay down/execute
management policies or
hire/transfer/suspend/lay-off/recall/discharge/assign/discipline
employees or effectively recommend such actions.
●​ Title II: Wages
●​ Chapter I: Preliminary Matters
●​ Article 97: Definitions
●​ Person: Individual, partnership, association, corporation, business
trust, legal representatives, organized group.
●​ Employer: Any person acting in interest of employer; includes
government, GOCCs, non-profit private institutions.
 ●​ Employee: Any person employed by an employer.
●​ Agriculture: Farming in all branches, cultivation, tillage, dairying,
production/harvesting of commodities, livestock/poultry raising;
practices performed by farmer on farm. Excludes
manufacturing/processing of certain farm products.
●​ Employ: To suffer or permit to work.
●​ Wage: Remuneration/earnings (money, fixed, task, piece,
commission), payable by employer for work done/to be done;
includes fair/reasonable value of board, lodging, facilities (no profit
to employer).
●​ Article 98: Application of Title
●​ Does not apply to farm tenancy/leasehold, domestic service,
homeworkers in needlework/cottage industry (unless duly
registered).
●​ Chapter II: Minimum Wage Rates
●​ Article 99: Regional Minimum Wages (Amended by RA 6727 - Wage
Rationalization Act)
●​ Prescribed by Regional Tripartite Wages and Productivity Boards.
●​ Article 100: Prohibition Against Elimination or Diminution of Benefits
●​ No elimination/diminution of supplements or employee benefits
enjoyed at promulgation of Code (if based on express policy or
ripened into practice).
●​ Article 101: Payment by Results
●​ Secretary of Labor regulates payment by results (pakyao,
piecework, non-time work) to ensure fair/reasonable rates.
●​ Chapter III: Payment of Wages
●​ Article 102: Forms of Payment
●​ No payment by promissory notes, vouchers, coupons, tokens,
tickets, chits, or objects other than legal tender.
●​ Payment by check/money order allowed if customary or necessary
due to special circumstances/CBA.
●​ Article 103: Time of Payment
●​ At least once every two (2) weeks or twice a month (intervals not
exceeding 16 days).
●​ If force majeure, payment immediately after cessation.
●​ No less frequently than once a month.
●​ For tasks not completed in 2 weeks: payments at 16-day intervals
(proportionate to work completed), final settlement upon
completion.
●​ Article 104: Place of Payment
●​ At or near place of undertaking (unless regulations prescribe
otherwise for greater wage protection).
●​ Article 105: Direct Payment of Wages
●​ Paid directly to workers.
 ●​ Exceptions: Force majeure (payment through another person with
written authority), or worker's death (payment to heirs via affidavit).
●​ Article 106: Contractor or Subcontractor
●​ Employees of contractor/subcontractor paid according to Code.
●​ Employer jointly and severally liable with contractor/subcontractor
for unpaid wages (to extent of work performed).
●​ Secretary of Labor may restrict/prohibit contracting-out
(distinguishing labor-only vs. job contracting).
●​ Labor-only contracting: Supplier lacks substantial
capital/investment, workers perform activities directly related to
principal business. Supplier is agent of employer.
●​ Article 107: Indirect Employer
●​ Provisions of Art. 106 apply to persons contracting with
independent contractors.
●​ Article 108: Posting of Bond
●​ Employer/indirect employer may require bond from
contractor/subcontractor to cover labor cost.
●​ Article 109: Solidary Liability
●​ Employer/indirect employer responsible with
contractor/subcontractor for Code violations. Considered direct
employers for civil liability.
●​ Article 110: Worker Preference in Case of Bankruptcy (Amended by RA
6715)
●​ Workers enjoy first preference for wages/monetary claims in
bankruptcy/liquidation.
●​ Paid in full before government/other creditors.
●​ Article 111: Attorney's Fees
●​ 10% of wages recovered for unlawful withholding.
●​ Unlawful to demand/accept >10% attorney's fees in recovery
proceedings.
●​ Chapter IV: Prohibitions Regarding Wages
●​ Article 112: Non-Interference in Disposal of Wages
●​ No employer shall limit/interfere with employee's freedom to
dispose of wages.
●​ No forcing/compelling purchase from employer/others.
●​ Article 113: Wage Deduction
●​ No deductions from wages except:
●​ Worker insured with consent (reimbursement for premium).
●​ Union dues (check-off recognized/authorized).
●​ Authorized by law/DOLE regulations.
●​ Article 114: Deposits for Loss or Damage
●​ No requiring deposits for loss/damage to
tools/materials/equipment, unless practice is
 recognized/necessary/desirable in trade (as determined by
DOLE).
●​ Article 115: Limitations (on deductions for loss/damage)
●​ No deduction unless employee heard and responsibility clearly
shown.
●​ Article 116: Withholding of Wages and Kickbacks Prohibited
●​ Unlawful to withhold wages or induce giving up wages by force,
stealth, intimidation, threat, or other means without consent.
●​ Article 117: Deduction to Ensure Employment
●​ Unlawful to deduct from wages for employer's benefit as
consideration for employment/retention.
●​ Article 118: Retaliatory Measures
●​ Unlawful to refuse/reduce wages/benefits, discharge, or
discriminate against employee for filing complaint/testifying.
●​ Article 119: False Reporting
●​ Unlawful to make false statements/reports/records filed/kept under
Code.
●​ Chapter V: Wage Studies, Wage Agreements, and Wage Determination
(Incorporated by RA 6727)
●​ Article 120: Creation of National Wages and Productivity Commission
●​ Attached to DOLE for policy/program coordination.
●​ Article 121: Powers and Functions of the Commission
●​ National consultative/advisory body on
wages/incomes/productivity.
●​ Formulate policies/guidelines.
●​ Prescribe rules for minimum wage/productivity measures.
●​ Review regional wage levels.
●​ Undertake studies/researches/surveys, collect/disseminate data.
●​ Review Regional Board plans/programs.
●​ Technical/administrative supervision over Regional Boards.
●​ Call tripartite conferences.
●​ Exercise necessary powers.
●​ Composition: Secretary of Labor (Chairman), NEDA
Director-General (Vice-Chairman), 2 workers' reps, 2 employers'
reps (appointed by President), Executive Director (member).
●​ Article 122: Creation of Regional Tripartite Wages and Productivity
Boards
●​ Created in all regions.
●​ Powers/Functions: Develop plans/programs, determine/fix
minimum wage rates (issue wage orders), undertake studies,
coordinate with other Boards, process exemption applications,
other necessary functions.
 ●​ Composition: DOLE Regional Director (Chairman), NEDA/DTI
Regional Directors (Vice-Chairmen), 2 workers' reps, 2 employers'
reps (appointed by President).
●​ Article 123: Wage Order
●​ Regional Board investigates/studies facts, determines if Wage
Order needed.
●​ Effective 15 days after complete publication in newspaper.
●​ Public hearings/consultations required.
●​ Aggrieved party can appeal to Commission within 10 calendar
days.
●​ Appeal does not stay order unless bond posted.
●​ Article 124: Standards/Criteria for Minimum Wage Fixing
●​ Adequate to maintain minimum living standards (health, efficiency,
well-being).
●​ Considerations: Demand for living wages, wage adjustment vs.
CPI, cost of living, worker/family needs, inducing countryside
investment, living standard improvements, prevailing wage levels,
fair return on capital/capacity to pay, employment
generation/family income effects, equitable income/wealth
distribution.
●​ Wages may vary by industry/province/locality if conditions warrant.
●​ Businesses must annually file/register itemized labor component
with NSO, Regional Board, Commission.
●​ Wage Distortion: Employer/union negotiate to correct. If
unresolved, grievance procedure/voluntary arbitration. If no
CBA/union, NCMB conciliation, then NLRC compulsory arbitration.
●​ Pendency of distortion dispute does not delay wage increase
applicability.
●​ Wage Distortion Definition: Increase in prescribed wage rates
results in elimination/severe contraction of intentional quantitative
differences in wage/salary rates between employee groups.
●​ Workers paid by result (piecework, takay, pakyaw) receive not less
than prescribed rates for 8 hours/day.
●​ Learnership/apprenticeship agreements automatically modified for
wage clauses.
●​ Article 125: Freedom to Bargain
●​ Wage order does not prevent bargaining for higher wages.
●​ Chapter VI: Administration and Enforcement
●​ Article 128: Visitorial and Enforcement Power
●​ Secretary of Labor/Authorized Representatives: Access to
employer records/premises, right to copy, question employees,
investigate violations.
●​ Compliance Orders: Power to issue compliance orders for labor
standards violations (if employer-employee relationship exists).
 ●​ Writs of Execution: Issue writs for enforcement (unless employer
contests findings with documentary proof).
●​ Appeal: Order can be appealed to Secretary of Labor. Monetary
award appeal requires cash/surety bond.
●​ Stoppage of Work/Suspension of Operations: May order if
non-compliance poses grave/imminent danger to worker
health/safety. Hearing within 24 hours. Employer pays wages
during stoppage if at fault.
●​ Obstruction: Unlawful to obstruct/impede/delay orders. No
injunctions from inferior courts.
●​ Government Employee Violation: Summary dismissal for
violation/abuse of authority.
●​ Employment Records: May require employers to keep records.
●​ Article 129: Recovery of Wages, Simple Money Claims and Other
Benefits (Amended by RA 6715)
●​ Regional Director/Hearing Officers: Hear/decide (summary
proceedings) recovery of wages/monetary claims/benefits
(including legal interest) for employees/househelpers.
●​ Conditions: No claim for reinstatement; aggregate money claims
per employee/househelper not exceeding P5,000.
●​ Decision within 30 calendar days.
●​ Recovered sums held in special deposit account, paid directly to
employee/househelper. Unclaimed sums (after 3 years) become
special fund for workers.
●​ Appeal: Decision can be appealed to NLRC within 5 calendar days
(on grounds in Art. 229). NLRC resolves within 10 calendar days.
●​ Secretary of Labor/representative may supervise payment.
●​ Title III: Working Conditions for Special Groups of Employees
●​ Chapter I: Employment of Women
●​ Article 130 [132]: Facilities for Women
●​ Secretary of Labor establishes standards for safety/health of
women employees.
●​ Requirements: Provide seats (permit use when free/during work if
duties can be performed), separate toilet rooms/lavatories
(dressing room for women), nursery in workplace, determine
minimum age/standards for retirement in special occupations
(e.g., flight attendants).
●​ Article 131 [133]: Maternity Leave Benefits (Superseded by RA 11210 -
105-Day Expanded Maternity Leave Law)
●​ Original provision: 6 months aggregate service, 2 weeks
pre-delivery, 4 weeks post-delivery/abortion with full pay.
●​ Extended without pay for pregnancy-related illness.
●​ Paid for first 4 deliveries only.
 ●​ Article 132 [134]: Family Planning Services; Incentives for Family
Planning
●​ Establishments with clinics/infirmaries provide free family planning
services.
●​ DOLE to develop incentive bonus schemes for family planning
among female workers.
●​ Article 133 [135]: Discrimination Prohibited (Amended by RA 6725)
●​ Unlawful to discriminate against women employees based on sex.
●​ Acts of Discrimination: Lesser compensation for equal value work,
favoring male employee for promotion/training/scholarship solely
due to sex.
●​ Criminal liability for willful unlawful acts/violations of rules.
●​ Criminal action does not bar separate action for money
claims/damages.
●​ Article 134 [136]: Stipulation Against Marriage
●​ Unlawful to require non-marriage as employment condition,
stipulate resignation upon marriage, or dismiss/prejudice woman
employee merely due to marriage.
●​ Article 135 [137]: Prohibited Acts
●​ Denying benefits, discharging to prevent enjoyment of benefits.
●​ Discharging on account of pregnancy, or while on leave/in
confinement due to pregnancy.
●​ Discharging/refusing admission upon return to work due to fear of
future pregnancy.
●​ Article 136 [138]: Classification of Certain Women Workers
●​ Women working in nightclubs, cocktail lounges, massage clinics,
bars, etc., under employer control/supervision are considered
employees for labor/social legislation.
●​ Chapter II: Employment of Minors
●​ Article 137 [139]: Minimum Employable Age (Subject to RA 7610, as
amended)
●​ No child below 15 years old employed, except when working
directly under parent/guardian (sole responsibility, no interference
with schooling).
●​ 15-18 years old may be employed for hours/periods determined by
Secretary of Labor.
●​ No employment below 18 in hazardous/deleterious undertakings.
●​ Article 138 [140]: Prohibition Against Child Discrimination
●​ No employer shall discriminate against any person based on age
regarding terms/conditions of employment.
●​ Chapter III: Employment of Househelpers (Repealed by RA 10361 - Domestic
Workers Act / Batas Kasambahay)
●​ Article 139 [141]: Coverage
 ●​ Applied to persons rendering services in households for
compensation.
●​ Domestic/Household Service: Service in employer's home
necessary/desirable for maintenance/enjoyment, ministering to
personal comfort/convenience, including family drivers.
●​ Article 140 [142]: Contract of Domestic Service
●​ Original contract not more than 2 years, renewable.
●​ Article 141 [143]: Minimum Wage (Superseded by RA 10361)
●​ Original rates specified for different areas (e.g., P800 for Metro
Manila).
●​ Employers to review contracts every 3 years.
●​ Househelpers receiving P1,000+ covered by SSS.
●​ Article 142 [144]: Minimum Cash Wage
●​ Minimum wage rates are basic cash wages, in addition to lodging,
food, medical attendance.
●​ Article 143 [145]: Assignment to Non-Household Work (RA 10361
prohibits this at lower wage)
●​ No assignment to commercial/industrial/agricultural enterprise at
lower wage than agricultural/non-agricultural workers.
●​ Article 144 [146]: Opportunity for Education (RA 10361 provides for this
right)
●​ Employer to provide opportunity for at least elementary education
for househelpers under 18. Cost part of compensation unless
stipulated otherwise.
●​ Article 145 [147]: Treatment of Househelpers (RA 10361 prohibits abuse)
●​ Employer to treat justly and humanely; no physical violence.
●​ Article 146 [148]: Board, Lodging, and Medical Attendance (RA 10361
requires this)
●​ Employer to furnish free suitable/sanitary living quarters, adequate
food, and medical attendance.
●​ Article 147 [149]: Indemnity for Unjust Termination of Services (RA 10361
provides similar provisions)
●​ If fixed term, neither party terminates without just cause.
●​ Unjustly dismissed: earned compensation + 15 days indemnity.
●​ Leaves without justifiable reason: forfeits unpaid salary (not
exceeding 15 days).
●​ Article 148 [150]: Service of Termination Notice (RA 10361 provides
similar provisions)
●​ If duration not determined, 5 days notice before termination.
●​ Article 149 [151]: Employment Certification (RA 10361 requires this)
●​ Employer to give written statement of nature/duration of service,
efficiency, and conduct upon severance.
●​ Article 150 [152]: Employment Record
 ●​ Employer may keep records, authenticated by househelper's
signature/thumbmark.
●​ Chapter IV: Employment of Homeworkers
●​ Article 151 [153]: Regulation of Industrial Homeworkers
●​ Employment regulated by government through DOLE regulations
to ensure welfare/protection.
●​ Article 152 [154]: Regulations of Secretary of Labor
●​ Regulations designed to assure minimum terms/conditions.
●​ Article 153 [155]: Distribution of Homework
●​ "Employer" of homeworkers: Any person (natural/artificial) who
delivers/causes delivery of goods/materials to be
processed/fabricated at home and returned/disposed of, or sells
goods to be processed/fabricated at home and then rebuys them.
●​ Chapter V: Employment of Night Workers (Inserted by RA 10151)
●​ Article 154: Coverage
●​ Applies to all persons employed/permitted/suffered to work at
night (not less than 7 consecutive hours, including midnight to 5
AM).
●​ Exclusions: Agriculture, stock raising, fishing, maritime transport,
inland navigation.
●​ Night Worker: Employed person whose work requires substantial
night work hours exceeding a specified limit (fixed by DOLE).
●​ Article 155: Health Assessment
●​ Workers have right to free health assessment (before, during, if
health problems arise).
●​ Findings not transmitted without consent, not used to detriment.
●​ Article 156: Mandatory Facilities
●​ Suitable first-aid facilities.
●​ Safe/healthful working conditions, adequate/reasonable facilities
(sleeping/resting quarters, transportation from work to residence)
subject to exceptions/guidelines.
●​ Article 157: Transfer
●​ Night workers unfit for night work (health reasons) transferred to
similar fit job if practicable.
●​ If not practicable, same benefits as other workers unable to work.
●​ Temporarily unfit: protected against dismissal/notice of dismissal.
●​ Article 158: Women Night Workers
●​ Alternative to night work available for women:
●​ Before/after childbirth (at least 16 weeks, divided).
●​ Additional periods with medical certificate (pregnancy,
beyond childbirth period).
●​ During these periods: no dismissal/notice of dismissal (unless for
just/authorized causes not connected to pregnancy/childcare), no
loss of benefits (status, seniority, promotion).
 ●​ Pregnant/nursing mothers allowed night work only if certified fit by
competent physician (not company physician), specifying safe
period for pregnant employees.
●​ Measures may include transfer to day work, social security
benefits, extended maternity leave.
●​ Provisions do not reduce existing maternity leave
protection/benefits.
●​ Article 159: Compensation
●​ Compensation (working time, pay, benefits) recognizes
exceptional nature of night work.
●​ Article 160: Social Services
●​ Appropriate social services for night workers.
●​ Article 161: Night Work Schedules
●​ Employer consults workers' representatives/labor organizations on
schedules, organization of night work, occupational health
measures, and social services.

V. Book Four: Health, Safety and Social Welfare Benefits

●​ Title I: Medical, Dental and Occupational Safety

●​ Chapter I: Medical and Dental Services
●​ Article 162 [156]: First-Aid Treatment
●​ Employer keeps first-aid medicines/equipment.
●​ Trains sufficient employees in first-aid.
●​ Article 163 [157]: Emergency Medical and Dental Services
●​ Employer furnishes free medical/dental attendance/facilities:
●​ 50-200 employees: Full-time registered nurse (unless
non-hazardous, then graduate first-aider).
●​ 200-300 employees: Full-time registered nurse, part-time
physician/dentist, emergency clinic.
●​ 300+ employees: Full-time physician/dentist/registered
nurse, dental clinic, infirmary/emergency hospital (1
bed/100 employees).
●​ Hazardous workplaces: Physician/dentist must stay in premises (2
hours part-time, 8 hours full-time).
●​ Non-hazardous: Physician/dentist may be on retainer (ensuring
immediate availability).
●​ Article 164 [158]: When Emergency Hospital Not Required
 ●​ Not required if accessible hospital/dental clinic exists and
employer arranges for reservation of beds/facilities.
●​ Article 165 [159]: Health Program
●​ Engaged physician develops/implements comprehensive
occupational health program.
●​ Article 166 [160]: Qualifications of Health Personnel
●​ Physicians, dentists, nurses must have training in industrial
medicine/occupational safety/health.
●​ Secretary of Labor establishes qualifications/criteria/conditions of
employment.
●​ Article 167 [161]: Assistance of Employer
●​ Employer provides necessary assistance for adequate/immediate
medical/dental attendance/treatment for injured/sick employees in
emergency.
●​ Chapter II: Occupational Health and Safety
●​ Article 168 [162]: Safety and Health Standards (Refer to OSHS, RA
11058)
●​ Secretary of Labor sets/enforces mandatory occupational
safety/health standards to eliminate/reduce hazards.
●​ Article 169 [163]: Research
●​ DOLE conducts studies/research for innovative methods,
identifying latent diseases, developing medical criteria.
●​ Article 170 [164]: Training Programs
●​ DOLE develops/implements training programs to increase
competence of personnel.
●​ Article 171 [165]: Administration of Safety and Health Laws
●​ DOLE solely responsible for administration/enforcement
(chartered cities may conduct inspections if adequate
facilities/personnel).
●​ Secretary of Labor may collect fees for inspections/tests/approvals
(deposited in occupational safety/health fund).
●​ Title II: Employees Compensation and State Insurance Fund
●​ Chapter I: Policy and Definitions
●​ Article 172 [166]: Policy
●​ State promotes tax-exempt employees' compensation program for
work-connected disability/death (income/medical benefits).
●​ Article 173 [167]: Definition of Terms
●​ Code: Labor Code of the Philippines.
●​ Commission: Employees’ Compensation Commission (ECC).
●​ SSS: Social Security System.
●​ GSIS: Government Service Insurance System.
●​ System: SSS or GSIS.
●​ Employer: Any person employing services of employee.
●​ Employee: Compulsorily covered by GSIS/SSS (including AFP,
casual, emergency, temporary, contractual).
●​ Person: Individual, partnership, firm, association, trust,
corporation, legal representative.
●​ Dependents: Legitimate/legitimated/adopted/acknowledged
natural child (unmarried, not gainfully employed, <21 or >21 if
incapable of self-support due to congenital/acquired defect);
legitimate spouse; parents wholly dependent.
●​ Beneficiaries: Primary (dependent spouse until remarriage,
dependent children); Secondary (dependent parents, illegitimate
children, legitimate descendants). Acknowledged natural child can
be primary if no other dependent children.
●​ Injury: Harmful change from accident arising out of/in course of
employment.
●​ Sickness: Occupational disease listed by Commission, or illness
caused by employment where risk is increased by working
conditions.
●​ Death: Loss of life from injury/sickness.
●​ Disability: Loss/impairment of physical/mental function from
injury/sickness.
●​ Compensation: All payments under Title for
income/medical/related benefits.
●​ Income Benefit: Payments to employee/dependents.
●​ Medical Benefit: Payments to providers of medical
care/rehabilitation/hospital care.
●​ Related Benefit: Payments for appliances/supplies.
●​ Appliances: Crutches, artificial aids, similar devices.
●​ Supplies: Medicine, medical/dental/surgical items.
●​ Hospital: Medical facility, accredited by Commission.
●​ Physician: Licensed doctor, accredited by Commission.
●​ Wages/Salary: Monthly remuneration for benefit computation (up
to P3,000).
●​ Monthly Salary Credit: Wage/salary base for contributions.
●​ Average Monthly Salary Credit (SSS): Sum of monthly salary
credits in 60-month period / 60 (or sum of all prior to contingency /
total months of coverage if within 18 months).
●​ Average Daily Salary Credit (SSS): Sum of 6 highest monthly
salary credits in 12-month period / 180 (or sum of all prior to
contingency / 30x months of coverage if within 12 months).
●​ Average Daily Salary Credit (GSIS): Actual daily/monthly salary /
actual working days of month of contingency.
●​ Quarter: 3 consecutive months (ending March, June, Sept, Dec).
●​ Semester: 2 consecutive quarters ending in quarter of
contingency.
 ●​ Replacement Ratio: 20% + (300 / (340 + average monthly salary
credit)).
●​ Credited Years of Service: Defined for members covered
before/after Jan 1975.
●​ Monthly Income Benefit: 115% of (average monthly salary credit *
replacement ratio) + 1.5% of average monthly salary credit for
each year >10 years. Minimum P250.
●​ Chapter II: Coverage and Liability
●​ Article 174 [168]: Compulsory Coverage
●​ Compulsory for employers/employees not over 60 years old.
●​ Employees >60 paying contributions for retirement/life insurance
are also covered.
●​ Article 175 [169]: Foreign Employment
●​ Commission ensures adequate coverage for Filipinos employed
abroad.
●​ Article 176 [170]: Effective Date of Coverage
●​ Employer: first day of operation. Employee: date of employment.
●​ Article 177 [171]: Registration
●​ Employer and employees register with System.
●​ Article 178 [172]: Limitation of Liability
●​ State Insurance Fund liable unless disability/death due to
employee's intoxication, willful self-injury/injury to another,
notorious negligence, or otherwise provided.
●​ Article 179 [173]: Extent of Liability
●​ Liability of State Insurance Fund is exclusive and in place of other
employer liabilities.
●​ Payment does not bar recovery of benefits from other laws (e.g.,
SSS, Revised Administrative Code).
●​ Article 180 [174]: Liability of Third Parties
●​ If disability/death caused by third party, System pays and is
subrogated to employee's/dependents' rights.
●​ Excess recovery from third party (after deducting costs) delivered
to employee/dependents.
●​ Article 181 [175]: Deprivation of the Benefits
●​ No contract/regulation/device can deprive employee/dependents
of income benefits/medical services.
●​ Existing employer medical services maintained.
●​ Chapter III: Administration
●​ Article 182 [176]: Employees’ Compensation Commission
●​ Initiates, rationalizes, coordinates employees' compensation
program.
●​ Composition: 5 ex-officio members (Secretary of Labor -
Chairman, GSIS GM, SSS Administrator, Phil. Medical Care
Commission Chairman - now PHIC, ECC Secretariat Executive
 Director), 2 appointive members (employee/employer reps, 6-year
term, 5 years experience).
●​ Vice Chairman alternates between GSIS GM and SSS
Administrator.
●​ Quorum: 4 members. Per diem for meetings.
●​ GSIS/SSS chief executives responsible for carrying out ECC
policies.
●​ Status of government corporation, attached to DOLE for policy
coordination.
●​ Article 183 [177]: Powers and Duties
●​ Assess/fix contribution rates.
●​ Determine higher contribution rates for employers with high
accident/disease frequency due to safety failures.
●​ Approve rules for claims processing/dispute settlement.
●​ Initiate policies/programs for occupational health/safety/accident
prevention, rehabilitation, other related programs (appropriate
funds).
●​ Actuarial studies for benefits, rationalization of benefits (may
upgrade benefits/add new ones with President's approval,
ensuring actuarial stability without contribution increases).
●​ Appoint staff (exempt from WAPCO).
●​ Adopt annual budget (SSS/GSIS advance loading fund).
●​ Administer oath, issue subpoena.
●​ Sue/be sued.
●​ Acquire property.
●​ Enter agreements/contracts for administration.
●​ Perform other appropriate acts.
●​ Article 184 [178]: Management of Funds
●​ Revenues collected by System deposited, invested, administered,
disbursed like other SSS/GSIS funds.
●​ Not more than 12% of contribution/investment earnings for
operational expenses (including OSH programs).
●​ Article 185 [179]: Investment of Funds
●​ Revenues not needed for current expenses accumulated in State
Insurance Fund (established in SSS/GSIS).
●​ Used exclusively for benefits.
●​ Deposited with authorized banks or invested with prudent regard
for liquidity.
●​ Article 186 [180]: Settlement of Claims
●​ System has original/exclusive jurisdiction over disputes (coverage,
benefits, contributions, penalties).
●​ Subject to appeal to Commission (decides within 20 working
days).
●​ Article 187 [181]: Review
 ●​ ECC decisions/orders/resolutions reviewed on certiorari by
Supreme Court (question of law, within 10 days).
●​ Article 188 [182]: Enforcement of Decisions
●​ ECC decisions final/executory if no appeal within 10 days.
●​ Awards granted by ECC enforced within 15 days.
●​ Final/executory decisions enforced like Court of First Instance
decisions (ECC issues writs of execution).
●​ Chapter IV: Contributions
●​ Article 189 [183]: Employers' Contributions
●​ Employer remits 1% of employee's monthly salary credit.
●​ Rate reviewed periodically, may be revised based on
experience/costs/losses.
●​ Contributions paid entirely by employer; no deduction from wages.
●​ Obligation ceases upon employee's death/disability/separation
(end of month of contingency).
●​ Article 190 [184]: Government Guarantee
●​ Republic of the Philippines guarantees benefits and solvency of
State Insurance Fund.
●​ Deficiency covered by supplemental appropriations.
●​ Chapter V: Medical Benefits
●​ Article 191 [185]: Medical Services
●​ System provides medical services/appliances during disability
(subject to expense limitation).
●​ Article 192 [186]: Liability
●​ System chooses/orders change of physician/hospital/rehabilitation
facility.
●​ Not liable for aggravation from unauthorized changes by
employee.
●​ Article 193 [187]: Attending Physician
●​ Physician complies with System regulations, submits reports.
●​ Medical information available to employee/System.
●​ Information not privileged communication.
●​ Article 194 [188]: Refusal of Examination or Treatment
●​ System stops payment if employee unreasonably refuses medical
examination/treatment.
●​ System determines unreasonableness and necessity/sufficiency of
services.
●​ Article 195 [189]: Fees and Other Charges
●​ Fees/charges for hospital services/medical care/appliances
(including professional fees) not higher than prevailing ward rates.
●​ Subject to Commission regulations.
●​ Chapter VI: Disability Benefits
●​ Article 196 [190]: Rehabilitation Services
 ●​ System establishes continuing program for injured/handicapped
employees (medical, surgical, hospital treatment, appliances).
●​ Establishes centers for remedial treatment, vocational
assessment/preparation, suitable employment.
●​ Article 197 [191]: Temporary Total Disability
●​ Income benefit: 90% of average daily salary credit.
●​ Daily income benefit: not less than P10, not more than P90
(increased to P200 by ECC resolutions).
●​ Not paid for continuous period longer than 120 days (unless rules
provide otherwise).
●​ System notified of injury/sickness.
●​ Article 198 [192]: Permanent Total Disability
●​ Monthly income benefit until death, plus 10% for each dependent
child (max 5).
●​ Guaranteed for 5 years.
●​ Suspended if gainfully employed, recovers, or fails to present for
examination.
●​ Deemed total and permanent: Temporary total disability >120
days, complete loss of sight of both eyes, loss of two limbs
(at/above ankle/wrist), permanent complete paralysis of two limbs,
brain injury (incurable imbecility/insanity), cases determined by
Medical Director/approved by Commission.
●​ Article 199 [193]: Permanent Partial Disability
●​ Income benefit for period designated in schedule (e.g., one thumb
- 10 months, one arm - 50 months).
●​ Loss of wrist = loss of hand; loss of elbow = loss of arm; loss of
ankle = loss of foot; loss of knee = loss of leg.
●​ Loss of >1 joint = 1/2 of whole finger/toe.
●​ Partial loss: proportionate period.
●​ Simultaneous loss: sum of periods.
●​ Not listed: income benefit equivalent to percentage of permanent
loss of work capacity.
●​ May be paid monthly pension or lump sum (if period <= 1 year).
●​ Chapter VII: Death Benefits
●​ Article 200 [194]: Death
●​ Primary Beneficiaries: Monthly income benefit + 10% for each
dependent child (max 5). Guaranteed for 5 years. Minimum
P15,000.
●​ No Primary Beneficiary: Secondary beneficiaries receive monthly
income benefit (max 60 months). Minimum P15,000.
●​ Death of Permanently Totally Disabled Pensioner: Primary
beneficiaries receive 80% of monthly income benefit +
dependents' pension (if marriage subsisting at disability). If no
 primary, secondary beneficiaries receive remaining balance of
5-year guaranteed period. Minimum P15,000.
●​ Funeral Benefit: P3,000 (increased to P10,000 by ECC
resolutions) for death of covered employee or permanently totally
disabled pensioner.
●​ Chapter VIII: Provisions Common to Income Benefits
●​ Article 201 [195]: Relationship and Dependency
●​ Determined at time of death.
●​ Article 202 [196]: Delinquent Contributions
●​ Delinquent employer liable to System for benefits paid to
employees/dependents.
●​ Liability constitutes lien on property.
●​ Lump sum payment absolves from delinquent contribution/penalty.
●​ Failure/refusal to pay contributions does not prejudice
employee's/dependent's right to benefits.
●​ If contingency occurs before System receives report, employer
liable for lump sum equivalent.
●​ Article 203 [197]: Second Injuries
●​ If employee with permanent partial disability suffers another injury
resulting in greater compensable disability, State Insurance Fund
liable for new disability's income benefit.
●​ If new disability related to previous, System liable only for
difference.
●​ Article 204 [198]: Assignment of Benefits
●​ No claim transferable or liable to tax, attachment, garnishment,
levy, seizure, except to pay employee's debt to System.
●​ Article 205 [199]: Earned Benefits
●​ Income benefits payable for disability period, even if employee
receives wages/salaries/allowances for holidays/vacation/sick
leaves or other CBA benefits.
●​ Article 206 [200]: Safety Devices
●​ If injury/death due to employer's failure to comply with law/install
safety devices/take precautions, employer pays 25% of lump sum
equivalent of income benefit to State Insurance Fund.
●​ Employers enjoined to strengthen OSH measures.
●​ Article 207 [201]: Prescriptive Period
●​ Claim filed with System within 3 years from cause of action
accrual.
●​ Article 208 [202]: Erroneous Payment
●​ System pays in good faith to inferior dependent: discharged from
liability unless other dependent notifies before payment.
●​ Doubt as to rights: System determines payment.
●​ Payment to minor/incompetent: System pays to best qualified
person.
 ●​ Article 209 [203]: Prohibition
●​ No agent/attorney/person demands/charges fee for preparing/filing
claim.
●​ No retention/deduction from benefit for fees.
●​ Violation: fine (P500-P5,000) or imprisonment (6 months-1 year)
or both.
●​ If committed by ECC/System employee or recidivist: imprisonment
>1 year.
●​ If by lawyer/physician/professional: disqualified from practice.
●​ If by government official/employee/personnel: dismissed with
prejudice.
●​ Article 210 [204]: Exemption from Levy, Tax, etc.
●​ State Insurance Fund and assets exempt from tax, fee, charge,
levy, customs/import duty.
●​ Future laws apply only if expressly stated.
●​ Chapter IX: Records, Reports and Penal Provisions
●​ Article 211 [205]: Record of Death or Disability
●​ Employers keep logbook (chronological record of
sickness/injury/death, names, dates, nature, absences).
●​ Entries within 5 days of notice/knowledge.
●​ Report work-connected contingencies to System within 5 days of
entry.
●​ Logbook available for inspection.
●​ Failure to record/false info/withholding material info: liable for 50%
of lump sum equivalent (accrues to State Insurance Fund).
●​ Fraudulent claim (employer party to fraud): employer reimburses
full compensation.
●​ Article 212 [206]: Notice of Sickness, Injury or Death
●​ Notice to employer by employee/dependents/anyone on their
behalf within 5 days of contingency.
●​ No notice required if contingency known to
employer/agents/representatives.
●​ Article 213 [207]: Penal Provisions
●​ Penal provisions of SSS/GSIS laws apply to
collection/administration/disbursement of Funds.
●​ Fraud for securing benefit/document: fine (P500-P5,000) and
imprisonment (6 months-1 year) or both.
●​ If by ECC/System employee or recidivist: imprisonment >1 year.
●​ If by lawyer/physician/professional: disqualified from practice.
●​ If by government official/employee/personnel: dismissed with
prejudice.
●​ Article 214 [208]: Applicability
●​ Applies only to injury/sickness/disability/death occurring on or after
January 1, 1975.
 ●​ Article 215 [208-A]: Repeal
●​ Inconsistent laws/PDs/LOIs repealed.
●​ GSIS: benefits governed by Labor Code, computation/contribution
base by CA 186/PD 1146 + 20%.
●​ Title III: Medicare (Superseded by RA 7875 - National Health Insurance Act of 1995)
●​ Article 216 [209]: Medical Care
●​ Philippine Medical Care Plan implemented as provided under RA 6111
(now RA 7875).
●​ Title IV: Adult Education
●​ Article 217 [210]: Adult Education
●​ Employer assists in establishing/operating adult education programs for
workers/employees (as prescribed by DOLE/DepEd regulations).

VI. Book Five: Labor Relations

●​ Title I: Policy and Definitions

●​ Chapter I: Policy
●​ Article 218 [211]: Declaration of Policy (Amended by RA 6715)
●​ State Policy:
●​ Promote free collective bargaining/negotiations, voluntary
arbitration, mediation, conciliation.
●​ Promote free trade unionism.
●​ Foster strong/united labor movement.
●​ Promote worker enlightenment on rights/obligations.
●​ Provide adequate administrative machinery for dispute
settlement.
●​ Ensure stable/dynamic/just industrial peace.
●​ Ensure worker participation in decision/policy-making.
●​ No court/administrative agency/official can set/fix wages, rates of
pay, hours of work, or other terms/conditions of employment
(except as provided in Code).
●​ Chapter II: Definitions
●​ Article 219 [212]: Definitions (Amended by RA 6715)
●​ Commission: National Labor Relations Commission (NLRC) or its
divisions.
●​ Bureau: Bureau of Labor Relations (BLR) and/or Labor Relations
Divisions in regional offices.
●​ Board: National Conciliation and Mediation Board (NCMB).
●​ Council: Tripartite Voluntary Arbitration Advisory Council.
 ●​ Employer: Any person acting in interest of employer
(directly/indirectly); excludes labor organization unless acting as
employer.
●​ Employee: Any person in employ of employer; includes individuals
whose work ceased due to labor dispute/unfair labor practice if no
substantially equivalent employment obtained.
●​ Labor Organization: Union/association of employees for collective
bargaining or dealing with employers on terms/conditions of
employment.
●​ Legitimate Labor Organization: Duly registered with DOLE;
includes branches/locals.
●​ Company Union: Labor organization whose
formation/function/administration assisted by unfair labor practice.
●​ Bargaining Representative: Legitimate labor organization or its
officer/agent.
●​ Unfair Labor Practice: As expressly defined by Code.
●​ Labor Dispute: Controversy/matter concerning terms/conditions of
employment or association/representation, regardless of
employer-employee relation.
●​ Managerial Employee: Vested with powers to lay down/execute
management policies and/or
hire/transfer/suspend/lay-off/recall/discharge/assign/discipline
employees.
●​ Supervisory Employees: Effectively recommend managerial
actions (not routinary/clerical, requires independent judgment).
●​ Rank-and-File Employees: All employees not managerial or
supervisory.
●​ Voluntary Arbitrator: Person accredited by Board, named in CBA,
chosen with/without NCMB assistance, or authorized by Secretary
of Labor.
●​ Strike: Temporary stoppage of work by concerted action due to
industrial/labor dispute.
●​ Lockout: Temporary refusal of employer to furnish work due to
industrial/labor dispute.
●​ Internal Union Dispute: Disputes/grievances from violation of
union constitution/bylaws or rights/conditions of membership.
●​ Strike-breaker: Person obstructing/impeding/interfering with
peaceful picketing by force/violence/coercion/threats/intimidation.
●​ Strike Area: Establishment, warehouses, depots, plants, offices
(including runaway shops) of struck employer, and immediate
vicinity used by picketing strikers.
●​ Title II: National Labor Relations Commission
●​ Chapter I: Creation and Composition
●​ Article 220 [213]: National Labor Relations Commission (Amended by RA
10741)
●​ Attached to DOLE for program/policy coordination.
●​ Composition: Chairman + 23 members.
●​ 8 members from workers' organizations, 8 from employers'
organizations.
●​ Chairman + 7 remaining members from public sector (preferably
incumbent labor arbiters).
●​ Nominated members divest affiliations.
●​ May sit en banc (for rules/regulations, policies) or in 8 divisions
(adjudicatory powers).
●​ En banc for rules/policies; divisions for adjudicatory functions.
●​ Divisions: 6 for NCR/Luzon, 2 for Visayas/Mindanao.
●​ Concurrence of 2 Commissioners for judgment/resolution.
●​ Chairman is Presiding Commissioner of 1st division; other public
sector members are Presiding Commissioners of other divisions.
●​ Chairman has exclusive administrative supervision over NLRC
and regional branches/personnel (including Labor Arbiters).
●​ Assisted by Executive Clerk (en banc), Deputy Executive Clerks
(divisions).
●​ Assisted by Commission Attorneys (coterminous with
Commissioners, members of Phil. Bar, 1 year experience in
labor-management relations, SG 26 salary/benefits).
●​ Article 221 [214]: Headquarters, Branches and Provincial Extension Units
●​ Main offices in Metropolitan Manila (1st-6th divisions), Cebu (7th),
Cagayan de Oro (8th).
●​ Establishes regional branches/sub-regional branches/provincial
extension units.
●​ As many Labor Arbiters as necessary.
●​ Article 222 [215]: Appointment and Qualifications (Amended by RA
10741)
●​ Chairman/Commissioners: Members of Phil. Bar, 15 years law
practice, 5 years experience in labor-management relations,
preferably residents of region.
●​ Labor Arbiters: Members of Phil. Bar, 10 years law practice, 5
years experience in labor-management relations.
●​ Hold office during good behavior until 65 (unless removed for
cause/incapacitated). President may extend services up to 70
upon NLRC en banc recommendation.
●​ Chairman, Division Presiding Commissioners, other
Commissioners appointed by President. Vacancy in specific
division from sector that nominated predecessor.
●​ Labor Arbiters appointed by President upon NLRC en banc
recommendation (subject to Civil Service Law).
 ●​ Chairman appoints staff/employees (subject to Civil Service Law,
upgrade salaries/benefits).
●​ Article 223 [216]: Salaries, Benefits and Emoluments (Amended by RA
9347)
●​ Chairman/Commissioners: Same
rank/salary/allowances/retirement/benefits as Presiding
Justice/Associate Justices of Court of Appeals.
●​ Labor Arbiters: Same
rank/salary/allowances/retirement/benefits/privileges as judges of
Regional Trial Courts.
●​ No diminution of existing salaries/allowances/benefits.
●​ Chapter II: Powers and Duties
●​ Article 224 [217]: Jurisdiction of the Labor Arbiters and the Commission
(Amended by RA 6715)
●​ Labor Arbiters (Original and Exclusive Jurisdiction): Hear/decide
within 30 calendar days.
●​ Unfair labor practice cases.
●​ Termination disputes.
●​ Cases with reinstatement claim: wages, rates of pay, hours
of work, other terms/conditions of employment.
●​ Claims for actual, moral, exemplary damages from
employer-employee relations.
●​ Violations of Article 279 (legality of strikes/lockouts).
●​ All other claims from employer-employee relations
(including domestic service) exceeding P5,000 (regardless
of reinstatement claim), except Employees Compensation,
Social Security, Medicare, maternity benefits.
●​ Commission (Exclusive Appellate Jurisdiction): Over all cases
decided by Labor Arbiters.
●​ CBA/Company Policy Interpretation/Implementation: Labor Arbiter
refers to grievance machinery/voluntary arbitration.
●​ Article 225 [218]: Powers of the Commission (Amended by RA 6715)
●​ Promulgate rules for hearing/disposition of cases and internal
functions.
●​ Administer oaths, summon parties, issue subpoenas
(attendance/testimony/production of documents).
●​ Conduct investigations, determine disputes in absence of party,
conduct public/private proceedings, adjourn hearings, refer
technical matters to experts, direct joinder/exclusion of parties,
correct/amend/waive errors, give directions, dismiss trivial matters.
●​ Contempt Powers:
●​ Direct Contempt: Misbehavior in presence of
Chairman/member/Labor Arbiter (obstructing proceedings,
 disrespect, offensive personalities, refusal to be
sworn/testify/subscribe).
●​ Commission/member: fine <= P500 or
imprisonment <= 5 days or both.
●​ Labor Arbiter: fine <= P100 or imprisonment <= 1
day or both.
●​ Appeal from Labor Arbiter to Commission
(execution suspended with bond).
●​ Commission judgment on direct contempt is
immediately executory and unappealable.
●​ Indirect Contempt: Dealt with as per Rule 71 of Revised
Rules of Court.
●​ Injunctions: Enjoin/restrain prohibited/unlawful acts or require
performance of acts causing grave/irreparable damage or
rendering decision ineffectual.
●​ Issued only after hearing testimony (with
cross-examination) and finding of fact:
●​ Prohibited/unlawful acts threatened/committed and
will continue (injunction only against person(s)
making threat/committing act/authorizing/ratifying).
●​ Substantial/irreparable injury to complainant's
property.
●​ Greater injury to complainant if relief denied.
●​ No adequate remedy at law.
●​ Public officers unable/unwilling to furnish adequate
protection.
●​ Hearing after due/personal notice to all known persons,
Chief Executive, public officials.
●​ Temporary restraining order (TRO) without notice if
substantial/irreparable injury unavoidable (effective max 20
days).
●​ Complainant must file undertaking with security to
recompense enjoined parties for loss/expense/damage
(including costs, attorney's fees).
●​ Reception of evidence for injunction may be delegated to
Labor Arbiter.
●​ Article 226 [219]: Ocular Inspection
●​ Chairman, Commissioner, Labor Arbiter, or representatives may
conduct ocular inspection of establishments/premises, question
employees, gather information.
●​ Chapter III: Appeal
●​ Article 227 [221]: Technical Rules not Binding and Prior Resort to
Amicable Settlement (Amended by RA 6715)
●​ Rules of evidence not controlling.
 ●​ Commission/Labor Arbiters use reasonable means to ascertain
facts speedily/objectively, without technicalities, in interest of due
process.
●​ Parties may be represented by legal counsel.
●​ Chairman/Presiding Commissioner/Labor Arbiter maintains
complete control of proceedings.
●​ Labor Arbiter exerts efforts for amicable settlement before first
hearing. Same for Commission in original jurisdiction.
●​ Article 228 [222]: Appearances and Fees (Amended by PD 1691)
●​ Non-lawyers may appear:
●​ Represent themselves.
●​ Represent their organization or members.
●​ No attorney's fees/negotiation fees/similar charges from individual
union members (may be charged against union funds if agreed
upon).
●​ Article 229 [223]: Appeal (Amended by RA 6715)
●​ Labor Arbiter decisions/awards/orders final/executory unless
appealed to Commission within 10 calendar days.
●​ Grounds for Appeal:
●​ Prima facie evidence of abuse of discretion by Labor
Arbiter.
●​ Decision/order/award secured through fraud/coercion
(including graft/corruption).
●​ Purely questions of law.
●​ Serious errors in findings of facts causing grave/irreparable
damage/injury.
●​ Monetary Award Appeal: Employer must post cash/surety bond
(accredited bonding company) equivalent to monetary award.
●​ Reinstatement: Labor Arbiter decision for reinstatement
immediately executory (even pending appeal). Employee admitted
back to work or reinstated in payroll (employer's option). Posting
bond does not stay reinstatement execution.
●​ Frivolous/Dilatory Appeals: Commission/Labor Arbiter may impose
reasonable penalty (fines/censures).
●​ Appellant furnishes copy of appeal to other party (answer within
10 calendar days).
●​ Commission decides within 20 calendar days from answer.
●​ Commission decision final/executory after 10 calendar days from
receipt by parties.
●​ Law enforcement agency may be deputized for enforcement.
●​ Article 230 [224]: Execution of Decisions, Orders, or Awards (Amended
by RA 6715)
 ●​ Secretary of Labor/Regional Director/Commission/Labor
Arbiter/Med-Arbiter/Voluntary Arbitrator may issue writ of
execution (motu proprio or on motion) within 5 years from finality.
●​ Sheriff/deputized officer executes.
●​ Responsible officer furnishes copies to counsels/parties (failure
leads to administrative sanctions).
●​ Secretary of Labor/Chairman of Commission may designate
special sheriffs, take measures to ensure compliance (including
administrative fines: P500-P10,000).
●​ Article 231 [225]: Contempt Powers of the Secretary
●​ Secretary of Labor may hold persons in direct/indirect contempt
and impose penalties.
●​ Title III: Bureau of Labor Relations
●​ Article 232 [226]: Bureau of Labor Relations (Amended by RA 6715)
●​ BLR and Labor Relations Divisions in regional offices have
original/exclusive authority to act on inter-union/intra-union conflicts, and
disputes/grievances/problems in labor-management relations (except
CBA interpretation/implementation, which go to grievance
procedure/voluntary arbitration).
●​ 15 working days to act on cases (subject to extension by agreement).
●​ Article 233 [227]: Compromise Agreements
●​ Voluntarily agreed compromise settlements (including labor standards)
with BLR/regional office assistance are final/binding.
●​ NLRC/court does not assume jurisdiction unless non-compliance or prima
facie evidence of fraud/misrepresentation/coercion.
●​ Article 234 [228]: Mandatory Conciliation and Endorsement of Cases (New
Article, inserted by RA 10396)
●​ All labor/employment issues subject to mandatory conciliation-mediation
(except as provided in Title VII-A, Book V or excepted by Secretary of
Labor).
●​ Labor Arbiter/DOLE agency entertains only endorsed/referred cases.
●​ Parties may pre-terminate conciliation-mediation and request referral to
appropriate DOLE agency or voluntary arbitration.
●​ Article 235 [229]: Issuance of Subpoenas
●​ BLR has power to require appearance/production of documents relevant
to labor dispute.
●​ Article 236 [230]: Appointment of Bureau Personnel (Amended by RA 6715)
●​ Secretary of Labor may appoint examiners/assistants.
●​ Article 237 [231]: Registry of Unions and File of Collective Bargaining
Agreements (Amended by RA 6715)
●​ BLR keeps registry of legitimate labor organizations.
●​ Maintains file of CBAs, other agreements, settlement records, voluntary
arbitrator orders/decisions.
 ●​ File open to interested parties (confidential info protected unless
authorized/at issue/public interest/national security).
●​ Parties submit CBA copies to BLR/Regional Offices within 30 days of
execution (with proof of posting/ratification).
●​ BLR/Regional Offices act on registration within 5 calendar days.
●​ Assess registration fee (not less than P1,000) for effective/efficient
Voluntary Arbitration Program (accrues to Special Voluntary Arbitration
Fund).
●​ BLR maintains file/publishes final decisions/orders/awards of Secretary of
Labor, Regional Directors, Commission.
●​ Article 238 [232]: Prohibition on Certification Election (Amended by RA 6715)
●​ BLR does not entertain petition for certification election or other actions
disturbing administration of duly registered existing CBAs, except under
Articles 264, 265, and 268.
●​ Article 239 [233]: Privileged Communication
●​ Information/statements in conciliation proceedings are privileged
communication, not used as evidence in Commission.
●​ Conciliators/officials do not testify on matters from conciliation.
●​ Title IV: Labor Organizations
●​ Chapter I: Registration and Cancellation
●​ Article 240 [234]: Requirements of Registration (Amended by RA 9481)
●​ Federation, national union, industry/trade union center, or
independent union acquires legal personality upon certificate of
registration.
●​ Requirements: P50 registration fee, names/addresses of officers,
principal address, minutes of organizational meetings, list of
participating workers.
●​ Independent Union: Names of all members (at least 20% of
bargaining unit).
●​ Union in existence 1+ year: Copies of annual financial reports.
●​ 4 copies of constitution/bylaws, minutes of adoption/ratification, list
of participating members.
●​ Article 241 [234-A]: Chartering and Creation of a Local Chapter (Inserted
by RA 9481)
●​ Registered federation/national union can directly create local
chapter by charter certificate (acquires legal personality for
certification election purposes).
●​ Other rights/privileges upon submission of: Names/addresses of
chapter officers, principal office, chapter's constitution/bylaws (or
statement if same as federation/national union).
●​ Article 242 [235]: Action on Application
●​ BLR acts on applications within 30 days.
●​ Documents certified under oath by secretary/treasurer, attested by
president.
 ●​ Article 243 [236]: Denial of Registration; Appeal
●​ Decision of Labor Relations Division denying registration can be
appealed to BLR within 10 days.
●​ Article 244 [237]: Additional Requirements for Federations or National
Unions
●​ In addition to Art. 240 requirements:
●​ Proof of affiliation of at least 10 locals/chapters (each a
duly recognized CBA agent).
●​ Names/addresses of companies where locals/chapters
operate, list of members in each company.
●​ Article 245 [238]: Cancellation of Registration (Amended by RA 9481)
●​ Certificate of registration cancelled by BLR after due hearing only
on grounds in Art. 247.
●​ Article 246 [238-A]: Effect of a Petition for Cancellation of Registration
(Inserted by RA 9481)
●​ Does not suspend certification election proceedings or prevent
filing of petition.
●​ Cancelled union can seek just/equitable remedies in courts.
●​ Article 247 [239]: Grounds for Cancellation of Union Registration
(Amended by RA 9481)
●​ Misrepresentation, false statement, or fraud in connection with:
●​ Adoption/ratification of constitution/bylaws or amendments,
minutes of ratification, list of members.
●​ Election of officers, minutes of election, list of voters.
●​ Voluntary dissolution by members.
●​ Article 248 [239-A]: Voluntary Cancellation of Registration (Inserted by RA
9481)
●​ Organization can cancel its own registration if 2/3 of general
membership votes to dissolve.
●​ Application submitted by board, attested by president.
●​ Article 249 [240]: Equity of the Incumbent
●​ Existing federations/national unions meeting qualifications and
without cancellation grounds maintain existing affiliates regardless
of industry/location.
●​ Chapter II: Rights and Conditions of Membership
●​ Article 250 [241]: Rights and Conditions of Membership in a Labor
Organization
●​ (The provided text cuts off here, but this article details the specific
rights of union members.)

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Continuing from where we left off in the review of the Labor Code of the Philippines:

VI. Book Five: Labor Relations (Continued)

●​ Chapter II: Rights and Conditions of Membership

●​ Article 250 [241]: Rights and Conditions of Membership in a Labor Organization
●​ Members have the right to:
●​ Participate in the management of the organization.
●​ Receive benefits and services provided by the organization.
●​ Attend meetings and vote on matters affecting the organization.
●​ Be informed of the organization's activities and financial status.
●​ Enjoy protection against discrimination for union activities.
●​ Conditions for membership may include:
●​ Payment of dues.
●​ Adherence to the organization's constitution and bylaws.
●​ Compliance with rules and regulations set by the organization.
●​ Article 251 [242]: Rights of Legitimate Labor Organizations
●​ Legitimate labor organizations have the right to:
●​ Represent their members in collective bargaining.
●​ Engage in concerted activities for mutual aid and protection.
●​ Establish their own rules and regulations.
●​ Receive financial support from members.
●​ Engage in political activities as long as they do not violate laws.
●​ Article 252 [243]: Rights of Members
●​ Members have the right to:
●​ Receive fair treatment and protection from unfair labor practices.
●​ Participate in the election of officers.
●​ Access to the organization's records and financial statements.
●​ Seek redress for grievances within the organization.
●​ Article 253 [244]: Prohibition Against Discrimination
●​ No member shall be discriminated against for exercising their rights under
the labor organization.
●​ Discrimination includes:
●​ Denial of membership.
●​ Retaliation for union activities.
●​ Any form of harassment or intimidation.
●​ Chapter III: Rights of Legitimate Labor Organizations
 ●​ Article 254 [245]: Rights of Legitimate Labor Organizations
●​ Legitimate labor organizations have the right to:
●​ Engage in collective bargaining.
●​ Represent their members in disputes with employers.
●​ Conduct meetings and activities to promote the welfare of
members.
●​ Receive financial support from members.
●​ Engage in lawful activities to promote the interests of workers.
●​ Article 255 [246]: Prohibition Against Interference
●​ Employers are prohibited from interfering with the formation or
administration of labor organizations.
●​ Employers cannot discriminate against employees for union membership
or activities.
●​ Chapter IV: Unfair Labor Practices
●​ Article 256 [247]: Definition of Unfair Labor Practices
●​ Unfair labor practices include:
●​ Interference with the formation or administration of labor
organizations.
●​ Discrimination against employees for union activities.
●​ Refusal to bargain collectively in good faith.
●​ Coercing employees in the exercise of their rights.
●​ Article 257 [248]: Remedies for Unfair Labor Practices
●​ Employees may file complaints with the NLRC for unfair labor practices.
●​ Remedies may include reinstatement, back wages, and other appropriate
relief.
●​ Chapter V: Collective Bargaining
●​ Article 258 [249]: Definition of Collective Bargaining
●​ Collective bargaining is the process of negotiation between employers
and representatives of employees to establish terms and conditions of
employment.
●​ Article 259 [250]: Duty to Bargain in Good Faith
●​ Both parties must engage in collective bargaining in good faith.
●​ Good faith includes:
●​ Meeting at reasonable times.
●​ Providing necessary information.
●​ Making proposals and counter-proposals.
●​ Article 260 [251]: Collective Bargaining Agreement
●​ A collective bargaining agreement is a written contract between the
employer and the labor organization representing employees.
●​ Must be ratified by the members of the labor organization.
●​ Article 261 [252]: Duration of Collective Bargaining Agreement
●​ The duration of a collective bargaining agreement shall be specified in the
agreement.
 ●​ Agreements may be renewed or modified by mutual consent.
●​ Chapter VI: Strikes and Lockouts
●​ Article 262 [253]: Definition of Strike
●​ A strike is a temporary stoppage of work by employees to enforce their
demands.
●​ Article 263 [254]: Definition of Lockout
●​ A lockout is the temporary refusal of an employer to furnish work to
employees during a labor dispute.
●​ Article 264 [255]: Legal Strikes and Lockouts
●​ Strikes and lockouts are legal if conducted in accordance with the
provisions of the Labor Code.
●​ Article 265 [256]: Prohibition Against Strikes and Lockouts
●​ Strikes and lockouts are prohibited during the pendency of a collective
bargaining agreement.
●​ Article 266 [257]: Notice of Strike or Lockout
●​ Parties must provide notice of strike or lockout to the other party and the
NLRC at least 15 days prior to the intended action.
●​ Chapter VII: Grievance Machinery and Voluntary Arbitration
●​ Article 267 [258]: Grievance Machinery
●​ Establishment of grievance machinery for resolving disputes between
employees and employers.
●​ Article 268 [259]: Voluntary Arbitration
●​ Parties may agree to submit disputes to voluntary arbitration.
●​ Voluntary arbitrators must be accredited by the NLRC.

VII. Book Six: Post-Employment

●​ Title I: Termination of Employment

●​ Article 269 [260]: Termination of Employment
●​ Employment may be terminated by:
●​ Mutual agreement.
●​ Expiration of contract.
●​ Just causes (e.g., serious misconduct, willful disobedience).
●​ Authorized causes (e.g., redundancy, retrenchment).
●​ Article 270 [261]: Notice of Termination
●​ Employers must provide written notice of termination to employees.
●​ Article 271 [262]: Separation Pay
●​ Employees terminated due to authorized causes are entitled to separation
pay.
●​ Title II: Retirement from the Service
 ●​ Article 272 [263]: Retirement Age
●​ The normal retirement age is 60 years.
●​ Article 273 [264]: Retirement Benefits
●​ Employees are entitled to retirement benefits as specified in the Labor
Code or company policy.

Article 301 [286] – When Employment not Deemed

Terminated
●​ Suspension of business operations for not more than 6 months does not terminate
employment.​

●​ Same applies if employee fulfills military or civic duty.​

●​ Employee must be reinstated to former position without loss of seniority rights if he

reports back within 1 month from resumption of work/duty release.​

Article 302 [287] – Retirement

●​ Retirement governed by CBA or contract if available.​

●​ In absence of a retirement plan:​

○​ Retirement age: 60–65 years (65 = compulsory).​

○​ Must have served at least 5 years.​

○​ Retirement pay = ½ month salary per year of service (≥ 6 months = 1 year).​

○​ "½ month salary" includes:​

■​ 15 days​
 ■​ 1/12 of 13th month pay​

■​ Cash equivalent of up to 5 days service incentive leave​

●​ Special cases:​

○​ Underground mine workers: 50–60 years.​

○​ Surface mine workers: 50–65 years.​

○​ Racehorse jockeys: 55 years.​

●​ Exemption: Retail, service, and agricultural establishments with ≤ 10 employees.​

●​ Violation = unlawful, subject to penalties under Art. 288.​

Article 303 [288] – Penalties

●​ General penalty: ₱1,000–₱10,000 fine, or 3 months–3 years imprisonment, or both.​

●​ Aliens guilty of offenses → deported after sentence.​

●​ Jurisdiction: Municipal/City Courts and Courts of First Instance.​

Article 304 [289] – Liability of Corporations

●​ If violation committed by corporation/partnership/association → liable officers are
punished.​
Article 305 [290] – Prescription of Offenses
●​ Labor Code offenses prescribe in 3 years.​

●​ Unfair labor practice (ULP) → must be filed within 1 year.​

Article 306 [291] – Money Claims

●​ Must be filed within 3 years from accrual.​

●​ Claims before effectivity of Labor Code → within 1 year of effectivity.​

●​ Workmen’s compensation claims (before effectivity) → deadline March 31, 1975.​

Article 307 [292] – Institution of Money Claims

●​ Filed independently of criminal action.​

●​ While pending → no separate civil action may be filed (except employee compensation
cases).​
Article 308 [293] – Application of Pre-Code Laws
●​ Claims accrued before the Code’s effectivity governed by laws in force at that time.​

Article 309 [294] – Integration of Maternity Leave Benefits

●​ Secretary of Labor tasked to integrate maternity leave into SSS (private) and GSIS
(public).​

●​ Now obsolete since maternity leave is institutionalized in SSS/GSIS.​

Article 310 [295] – Funding of OEDB and NSB

●​ Initially funded from unprogrammed funds of DOLE and NMYC.​

●​ Note: OEDB & NSB later abolished under EO 797 (1982).​

Article 311 [296] – Termination of Workmen’s
Compensation Program
●​ BWC, WCC, and regional units function until March 31, 1976, then abolished.​

●​ Personnel absorbed by DOLE.​

Article 312 [297] – Continuation of Insurance Policies

●​ Existing workmen’s comp insurance policies remain valid until expiry, but not beyond
Dec. 31, 1974.​

Article 313 [298] – Abolition of CIR and old NLRC

●​ CIR and old NLRC abolished.​

●​ Resources transferred to new NLRC and Bureau of Labor Relations.​

●​ Non-absorbed personnel receive benefits under law.​

Article 314 [299] – Disposition of Pending Cases
●​ CIR and old NLRC cases transferred to proper new bodies under Labor Code.​

●​ Pending labor appeals with Secretary of Labor/President remain under their

jurisdiction.​

●​ Pending workmen’s comp cases handled under old law (before Employees
Compensation Law).​

Article 315 [300] – Personnel Termination

●​ Laid-off personnel due to Code’s implementation entitled to gratuity/retirement
benefits.​

●​ No layoff until funds for benefits are available.​

Article 316 [301] – Separability Clause

●​ If a provision is declared invalid, rest of the Code remains valid.​
Article 317 [302] – Repealing Clause
●​ All inconsistent labor laws, decrees, rules are repealed.