Module II
Constitutional Rights and the Labor Code Overview
I. INTRODUCTION
Labor laws in the Philippines are grounded in the Constitution and codified mainly in the Labor
Code of the Philippines (Presidential Decree No. 442, as amended). For HR practitioners,
understanding these laws is essential to ensure compliance, uphold workers’ rights, and maintain
industrial peace. This module provides an overview of the constitutional rights of workers and the
basic structure of the Labor Code.
II. LEARNING OBJECTIVES
By the end of this module, students should be able to:
1. Identify and explain the constitutional provisions relating to labor and employment.
2. Discuss the basic structure and scope of the Labor Code of the Philippines.
3. Recognize the interplay between constitutional rights and statutory labor provisions.
4. Apply basic concepts to practical HR scenarios.
III. KEY CONCEPTS
• Bill of Rights – Guarantees of individual freedoms in the 1987 Philippine Constitution.
• Social Justice – Principle of promoting equitable distribution of wealth and protecting
marginalized sectors, including labor.
• Security of Tenure – The right of an employee not to be dismissed without just or
authorized cause and due process.
• Labor Standards – Minimum requirements regarding wages, working hours, benefits, and
conditions of work.
• Labor Relations – Rules governing employer–employee interactions, including collective
bargaining and dispute settlement.
IV. DISCUSSION
A. Constitutional Provisions on Labor (1987 Constitution, Article XIII, Sections 3–4)
The 1987 Philippine Constitution serves as the highest legal foundation for all labor laws.
1. Full Protection to Labor – The State shall afford full protection to labor, whether local or
overseas, organized or unorganized.
2. Rights of Workers – Includes:
o Self-organization
o Collective bargaining and negotiations
o Security of tenure
o Humane conditions of work
o Living wage
3. Promotion of Shared Responsibility – Between workers and employers, recognizing
voluntary modes of dispute settlement.
4. Participation in Policy and Decision-Making – Workers have the right to participate in
policy and decision-making processes affecting their rights.
5. Social Justice – Labor laws must favor the welfare of the working class when in doubt.
Why it matters for HR:
HR practitioners are not just “company rule enforcers” — they are guardians of constitutional
labor rights in the workplace. When you hire, discipline, or terminate employees, you’re
applying constitutional guarantees through actual HR actions.
The Key Rights (Article XIII, Sec. 3–4):
Right Meaning Example in Workplace
A group of employees forms a
Right to Self- Workers can form, join, or assist
union to negotiate for better
Organization labor unions.
benefits.
Collective Workers have the right to negotiate HR sits in a CBA (Collective
Bargaining & with employers for wages, benefits, Bargaining Agreement) meeting
Negotiation and work conditions. with union reps.
No one can be dismissed without An HR manager must issue notice,
Security of Tenure just cause or authorized cause and conduct a hearing, and decide
due process. fairly before termination.
Humane Conditions Safe, healthy, and non-exploitative Providing safety gear in a
of Work workplace. construction site.
Ensuring compliance with
Pay that meets the basic needs of minimum wage set by the
Living Wage
workers and their families. Regional Tripartite Wages and
Productivity Board.
B. Overview of the Labor Code of the Philippines (PD 442)
The Labor Code of the Philippines also known as Presidential Decree 442 was enacted on May 1,
1974; it was amended multiple times to align with modern labor needs.
The Labor Code (PD 442) is like the “manual” for labor relations and employment standards. It
translates the broad constitutional rights into specific, enforceable rules.
Structure:
1. Book I – Pre-Employment
o Recruitment and placement
o Regulation of private employment agencies
o Overseas employment provisions
2. Book II – Human Resources Development Program
o Skills development
o Apprenticeship and learnership programs
3. Book III – Conditions of Employment
o Hours of work
o Weekly rest periods
o Holidays, service incentive leaves
o Wages and wage-related benefits
4. Book IV – Health, Safety, and Social Welfare Benefits
o Occupational safety and health standards
o Benefits under SSS, PhilHealth, ECC, and Pag-IBIG
5. Book V – Labor Relations
o Right to self-organization
o Collective bargaining
o Labor disputes and settlement mechanisms
6. Book VI – Post-Employment
o Termination of employment
o Retirement provisions
7. Book VII – Transitory and Final Provisions
o Procedural matters and implementing rules.
The Structure and Key Contents:
Book Coverage HR Relevance
Rules on recruitment, hiring, Checking POEA rules before
Book I – Pre-Employment
overseas work. sending workers abroad.
Book II – Human Resources Skills training, Implementing training programs
Development apprenticeships. for new hires.
Book III – Conditions of Hours of work, overtime, Calculating OT pay and ensuring
Employment leave, holidays, wages. legal holiday rates.
OSH standards, SSS,
Book IV – Health, Safety, Submitting SSS contribution
PhilHealth, ECC, Pag-IBIG
and Social Welfare reports on time.
benefits.
Mediating disputes between
Book V – Labor Relations Union rights, strikes, CBA.
management and union.
Termination, retirement, Determining separation pay for
Book VI – Post-Employment
separation pay. redundancy cases.
Procedural and enforcement
Book VII – Final Provisions Filing documents with DOLE.
rules.
Why it matters for HR:
As HR practitioner, you will use the Labor Code almost daily in HR work — from hiring to
termination, wage computation, benefits administration, and dispute resolution. It serves as your
“Bible” – a guide for your daily living. This statute provides guidance on the following:
Provide legal guidelines for hiring practices, employee rights, wages, benefits, termination, and
labor relations—all central to HR functions.
Provide the legal foundation for company policies, contracts, and compliance in the workplace.
Help HR professionals handle disciplinary actions, union matters, and employee benefits legally.
The Labor Code of the Philippines (Summary)
General Principles
Article 3 – Declaration of Basic Policy
→ The State shall afford full protection to labor, promote full employment, equality of
employment opportunities, and regulate relations between workers and employers.
Book I – Pre-Employment
Recruitment and Placement:
Art. 13–18 – Definitions; coverage of recruitment and placement.
Art. 19–25 – Prohibitions against illegal recruitment.
Art. 34 – Unlawful recruitment practices.
Art. 39–40 – Licensing of private recruitment agencies.
Art. 43–45 – Employment of non-resident aliens (requirements for work permits).
Book II – Human Resources Development Program
Manpower Development:
Art. 43–44 (renumbered in RA 10151/RA 10917) – Establishment of the National
Manpower Development Program under TESDA.
Art. 45–47 – Development of manpower training policies.
Art. 48–55 – Role of the National Manpower and Youth Council (now TESDA).
Apprenticeship & Learnership:
Art. 57 – Definition of apprenticeship (practical training on the job).
Art. 58 – Qualifications of apprentices (at least 15 years old).
Art. 59–60 – Apprenticeship agreements (must be approved and registered).
Art. 61 – Period of apprenticeship (generally not more than 6 months, unless longer
is approved).
Art. 72–75 – Learnership (special training program for semi-skilled jobs, up to 3
months).
Art. 78–81 – Handicapped workers (employment encouragement and training).
Book III - Conditions of Employment
Article 82 – Coverage of working conditions.
Article 83 – Normal hours of work (8 hours/day).
Article 84 – Hours worked (including waiting time, on-call duty).
Article 85 – Meal periods (at least 60 minutes).
Article 86–87 – Night shift differential and overtime pay.
Article 91–93 – Weekly rest periods and holiday pay.
Article 94 – Regular holiday pay.
Article 95 – Service incentive leave (5 days per year).
Article 96 – Service charges (distribution of collected service charges).
Book IV – Health, Safety, and Social Welfare Benefits
Article 99 – Regional minimum wages.
Article 100 – Prohibition against elimination/reduction of benefits.
Article 101 – Payment by results (piece-rate, task basis).
Article 102–105 – Payment of wages (in legal tender, directly to workers, time of
payment).
Article 113–116 – Prohibitions (e.g., no wage deduction without consent, no
withholding).
Employee Benefits and Special Provisions:
Article 153–157 – Occupational Safety and Health Standards.
Article 169–172 – Employment of women.
Article 176–178 – Employment of minors.
Maternity and Paternity Benefits (covered by special laws but integrated into
labor standards enforcement).
Book V - Labor Relations
Article 211–213 – State policy and right to self-organization.
Article 218–219 – Powers of the National Labor Relations Commission (NLRC).
Article 255–258 – Collective bargaining rights.
Article 260–261 – Duty to bargain collectively.
Article 263–264 – Strikes, lockouts, and labor disputes.
Article 272 – Injunctions prohibited in labor disputes (with exceptions).
Book VI – Post Employment
Termination of Employment:
Article 282 (now renumbered 297) – Just causes for termination (serious
misconduct, neglect of duty, fraud, commission of a crime).
Article 283 (now 298) – Authorized causes for termination (redundancy,
retrenchment, closure of establishment, installation of labor-saving devices).
Article 284 (now 299) – Disease as ground for termination.
Security of Tenure Principle – No employee may be dismissed without just or
authorized cause and due process.
Post-Employment and Social Legislation:
Article 287 (now 302) – Retirement benefits.
Article 290 (now 305) – Prescription of actions (3 years for money claims, 1 year
for illegal dismissal cases).
Integration with SSS, PhilHealth, Pag-IBIG, and ECC laws – Employers must
comply with mandatory contributions.
C. Relationship between Constitutional Rights and the Labor Code
The Constitution sets broad guarantees; the Labor Code provides specific rules and
enforcement mechanisms.
Example:
Constitutional Right: Security of tenure.
Labor Code Implementation: Requires just or authorized cause plus procedural due
process for termination.
Think of it like this:
The Constitution says: “You must respect workers’ right to security of tenure.”
The Labor Code says: “Here’s exactly how you can dismiss someone legally (just cause,
authorized cause, due process).”
In HR practice, you always start from the Constitution’s guiding principles and then apply the Labor
Code’s step-by-step rules.
Think of the Constitution as the “Why” and the Labor Code as the “How.”
The Constitution gives the philosophy behind protecting labor, and the Labor Code gives the
operational steps you must follow as HR professionals.
Example Scenario:
Scenario: Maria, a regular employee in a manufacturing company, was dismissed without a written
notice or hearing.
Constitutional Basis: Right to security of tenure.
Labor Code Basis: Art. 294 (formerly Art. 279) – Dismissal only for just/authorized cause
and with due process.
Possible HR Action: Reinstate Maria with backwages or provide separation pay if
reinstatement is no longer possible.
*The 1987 Philippine Constitution guarantees fundamental labor rights, such as self-organization,
collective bargaining, security of tenure, humane work conditions, and a living wage.
*The Labor Code operationalizes these rights through detailed rules covering pre-employment,
employment conditions, benefits, labor relations, and post-employment.
*HR professionals must know both the constitutional framework and specific statutory provisions
to ensure lawful and ethical management of employees.
REFERENCES:
• 1987 Philippine Constitution, Article XIII, Sections 3–4.
• Presidential Decree No. 442, as amended (Labor Code of the Philippines).
• Department of Labor and Employment (DOLE) website – [Link]
• Azucena, C.A. (2020). The Labor Code with Comments and Cases.