House Bill No.  5151
EXPLANATORY NOTE
The State affirms labor as a primary social economic force. It shall protect the rights of
workers and promote the.ir weltare. (Art.  11,  Sec.  18,  1987 Philippine Constitution)
Labor is the primary social economic force of the State, thus,  jt is essential that laws
and rules affording protection to labor be kept up to date with the times.
Presidential Decree (P.D.) No. 442, as amended, otherwise known as the Labor Code
of  the   Philippines,   is  the  governing   law  on   labor  standards   and   labor  relations   in  the
Philippines. Since its enactment in  1974, it has been subject to several amendments, starting
from P.D. No. 570-A to Republic Act No.10151. These amendments ranged from the general
revisions  of the  law to  renumbering  of provisions  and  the  recognition  of the  rights  of night
workers.  These  changes,   however,  were  all  piecemeal  amendments  that  are  scattered
throughout different laws and policies, making it difficult for both employees and employers to
be apprised of their rights and obligations.
This  proposed  revised  Labor Code aims to:  (1)  Update and  revise the current  Labor
Code to incorporate existing laws and to reflect international conventions related to labor;  (2)
Ensure that the provisions are gender fair and non-discriminatory; (3) Ensure that the interests
of laborers and employers are equally protected; and (4) Provide a comprehensive and easily-
accessible labor regulation to all stakeholders.
The   proposed   measure   incorporates,   among   others,   the   International   Labour
Organization  Conventions,  the  Convention  on the  Elimination  of All  Forms  of Discrimination
Against Women, the Safe Spaces Act,  and the Migrant Workers and Overseas Filipinos Act.
In addition,  it seeks to introduce new provisions on gender equality and justice,  recognition of
rights of women workers, and the creation of the Court of Labor Relations.
The enactment of the proposed revised Labor Code will aid in strengthening our policy
of affording full protection to labor and promoting full employment and equality of employment
opportunities for all.
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NINETEENTH CONGRESS                 )
REPUBLIC OF THE PHILIPPINES   )
First Regular session                           )
HOUSE OF REPRESENTATIVES
_                                 Introduced by Representative Rufus B. Rodriguez                                __
HOuse Bill NO. un
AN ACT
PROVIDING FOR THE REVISED LABOR CODE OF THE PHILIPPINES
Be  it erl?ct.ed  by the  Senate and  House of Representatives of the  Philippines  in  Congress
assembled:
PRELIMINARY TITLE
Chapter I
GENERAL PROVISIONS
Art.1.  Name of the Code. This Code shall  be known as the "REVISED Labor Code of the
Philippines".  (1)
Art.  2.  Date of Effectivify. This Code shall take effect six (6)  months after its ?rem¥!gaticrT
PUBLICATION  IN TVVO (2)  NEVVSPAPERS OF GENERAL CIRCULATION.  (2)
Art. 3. Declaration of Basic Policy.  The State shall afford FULL protection to labor,  LOCAL
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The  State -.IT  shall  ass:ire.  GUARANTEE  the  rights  of  ALL  workers  to  selfrorganieation,
collective  bargaining  AND  NEGOTIATIONS,  AND  PEACEFUL  CONCERTED  ACTIVITIES,
INCLUDING  lllE  RIGHT  TO  STRIKE  IN  ACCORDANCE  VVITH  LAW.  THEY  SHALL  BE
ENTITLED TO seourity of tenure,  and just and  humane conditions  of work,  AND A  LIVING
WAGE.    THEY    SHALL    ALSO    PARTICIPATE    IN    POLICY    AND    DECISION-MAKING
PROCESSES  AFFECTING  THEIR  RIGHTS AND  BENEFITS  AS  MAY  BE  PROVIDED  BY
LAW.
THE    STATE    SHALL    PROMOTE    THE    PRINCIPLE    0F    SHARED    RESPONSIBILllY
BETVVEEN    VVORKERS    AND    EMPLOYERS    AND    THE    PREFERENTIAL    USE    OF
VOLUNTARY MODES IN SETTLING DISPUTES, INCLUDING CONCILIATION, AND SHALL
ENFORCE   THEIR   MUTUAL   COMPLIANCE   THEREVVITH   TO    FOSTER    INDUSTRIAL
PEACE.
THE    STATE    SHALL    REGULATE    THE    RELATIONS    BET\/VEEN    WORKERS    AND
EMPLOYERS,  RECOGNIZING  THE  RIGHT  OF  LABOR  TO  SHARE  IN  THE  FRUITS  OF
PRODUCTION AND ENTERPRISES, TO PROFITS,  EXPANSION AND GROVVTH.  (3a)
Art. 4. Construction  in Favor of Labor. All doubts in the implementation and interpretation
of the provisions of this Code,  including its implementing rules and regulations AS \/\/ELL AS
IN LABOR CONTRACTS, shall be resolved in favor of labor. (4a)
Art. 5, Rules and Regulations. The Department of Labor AND EMPLOYMENT (DOLE) and
other government agencies charged with the administration and enforcement of this Cede or


any of its parts shall promulgate the necessary implementing rules and regulations. Such rules
and regulations shall become effective fifteen (15) days after announcement of their adoption
in TVVO (2) newspapers of general circulation AND AFTER COMPLYING VVITH THE  FILING
REQUIREMENT  VVITH  THE  OFFICE  OF  THE  NATIONAL  ADMINISTRATIVE  REGISTER;
OTHERVVISE, THE RULES CANNOT BECOME THE BASIS OF ANY SANCTION AGAINST
ANY PARTY OR PERSONS.  (5a)
Art. 6, Applicability. All rights and benefits granted to workers under this Code shall, except
as may otherwise be provided  herein,  apply alike to all workers, whether agricultural or non-
agricultural.  (6) (As amended by Presidential Deoree No. 570-A,  November 1,1974)
Chapter 11
EM^NCIP^TION OF TENANTS EQUALITY AND NON-DISCRIMINATION
ART. 7. DISCRIMINATION.
(1)      THE STATE SHALL PURSUE A NATIONAL POLICY DESIGNED T0 PROMOTE,  BY
METHODS    APPROPRIATE     TO     NATIONAL     CONDITIONS    AND     PRACTICE,
EQUALITY OF OPPORTUNITY AND TREA"ENT IN  RESPECT OF EMPLOYMENT
AND  OCCUPATION,   VVITH  A  VIEW  TO   ELIMINATING  ANY  DISCRIMINATION   IN
RESPECT THEREOF.
(2)      FOR THE PURPOSE OF THIS CODE THE TERM  DISCRIMINATION  INCLUDES-
(a)      ANY DISTINCTION,  EXCLUSION OR PREFERENCE MADE ON THE BASIS OF
RACE,   COLOR,   SEX,   SEXUAL   ORIENTATION,   GENDER   IDENTITY   AND
EXPRESsloN,      SEX     CHARACTERISTICS,      MARITAL      STATUS,      AGE,
DISABILITY,        LANGUAGE,        RELIGION,        POLITICAL        OPINION        AND
PERSUASION,   NATIONAL  EXTRACTION  OR  SOCIAL  ORIGIN,   PROPERTY,
BIRTH,  OR OTHER STATUS,  VVHICH  HAS THE  EFFECT OF  NULLIFYING  OR
IMPAIRING       EQUALITY       OF       OPPORTUNITY      OR      TREATMENT       IN
EMPLOYMENT OR OCCUPATION;
ro)     sucH  OTHER  DisTINCTioN,  ExcLusioN  OR  PREFERENCE  vvHicH  HAs
THE  EFFECT OF  NULLIFYING OR  IMPAIRING  EQUALITY OF OPPORTUNllY
OR    TREATMENT    IN    EMPLOYMENT    OR    OCCUPATION    AS    MAY    BE
DETERMINED   BY   THE   MEMBER   CONCERNED   AFTER   CONSULTATION
VVITH  REPRESENTATIVE  EMPLOYERS'  AND  WORKERS'  ORGANIZATIONS,
VVHERE SUCH EXIST, AND VVITH OTHER APPROPRIATE BODIES.
(3)      ANY     DISTINCTION,     EXCLUSION     OR     PREFERENCE     IN     RESPECT    OF    A
PARTICULAR  JOB  BASED  ON  THE  INHERENT  REQUIREMENTS  SHALL  NOT  BE
DEEMED T0 BE DISCRIMINATION.
FOR  THE  PURPOSE  OF  THIS  CODE,  "E  TERMS  EMPLOYMENT AND  OCCUPATION
INCLUDE  ACCESS  TO  VOCATIONAL  TRAINING,  ACCESS  TO  EMPLOYMENT AND  TO
PARTICULAR OCCUPATIONS, AND TERMS AND CONDITIONS OF EMPLOYMENT. (new)
Art.  8.  Discrimination  Prohibiited.  It  shall  be  unlawiul  for any  employers  to  discriminate
against an`,' `,JL,'crnar, employees with respect to terms and conditions of employment solely on
account of her THEIR  RACE,  COLOR,  sex,  GENDER  IDENTITY AND  EXPRESSION,  SEX
CHARACTERISTICS,   SEXUAL   ORIENTATION,   MARITAL   STATUS,   AGE,   DISABILITY,
LANGUAGE,      RELIGION,      POLITICAL     OPINION     AND      PERSUASION,      NATIONAL
EXTRACTloN OR SOCIAL ORIGIN,  PROPERTY,  BIRTH, OR OTHER STATUS.
The following are acts of discrimination IF DONE ON THE RASIS OF THE CRITERIA IN THE
FIRST PARAGRAPH:


(a)      ADVERTISEMENTS  OR  QUALIFICATION  STANDARDS  SHOVVING  DISTINCTION,
EXCLUSION  OR  PREFERENCE,  VVITH   REGARD  TO  A  PARTICULAR  JOB  NOT
BASED ON THE INHERENT REQUIREMENTS OF THE SAID JOB;
to)      UTILIZING STANDARDS, CRITERIA, OR METHODS OFADMINISTRATION THAT:  1)
HAVE     THE     EFFECT     OF     DISCRIMINATION;     OR     2)     PERPETUATE     THE
DISCRIMINATION      OF      OTHERS      VVHO      ARE      SUBJECT      TO      COMMON
ADMINISTRATIVE CONTROL;
(c)     ®  Payment  of  a   lesser  compensation,   including  wage,   salary  or  other  form   of
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(d)     {b)  Fa`,'oring  DISTINGUISHING,  EXCLUDING  OR  PREFERRING  a± employees
:::?=i] _fe_male .em.Pleye? vyTH PESPECT TO PROMOTION, with respect to pr6m6tion,
training opportunities, study and scholarship grants Solely on account..of thei; sexes.
Criminal liabilfty for the willful commission of any unlawful act as provided in this article or any
violation of the rules and regulations issued pursuant to -Sect`icn 2 r,efeef ARTICLE 5 shall be
penalized  as  provided  in  Articles  288-312  and  289-313  of this  Code:  Provt.ded,  That  the
institution of any criminal  action  under this provision shall  not bar the aggrieved  employees
from filing an entirely separate and distinct action for money claims, which may include claims
for  damages  and  other  affirmative  reliefs.  The  actions  hereby  authorieed  shall  proceed
independently of each other.  (135a)
Art. 9. Stipulation Against Marriage.  It shall be unlawiul for an employers to require as a
condition  of employment or continuation  of employment that a `,I,`oiEaii employees  shall  not
get married, or to stipulate expressly or tacitly that upon getting married, auefrm employees
shall  be  deemed  resigned  or  separated,  or to  actually  dismiss,  discharge,  discriminate  or
otherwise prejudice a+Afeman employees merely by reason of bef THEIR marriage. (134a)
Art.10. classification of Certain Women Workers.  ,A`n`,' `,A,'crTla,r`, EMPLOYEES who is ARE
permitted or suffered to work, with or without compensation,  in  any night club,  BAR,  cocktail
lounge,   massage   clinic,   barT   or   similar   establishments   under  the   effective   control   or
supervision of the employers for a substantial period of time as determined by the Secretary
of   Labor   and   Employment   (SOLE),   shall   be   considered   as   an   employees   of   such
establishment for purposes of labor and social legislation.  (136a)
BOOK ONE
PRE-EIVIPLOYMENT
Title I
RECRUITMENT AND PLACEMENT OF WORKERS
CHAPTER I
GENERAL PROVIsloNS
Art.11.  Statement Of Objectives.  CONSISTENT VVITH  THE  NATIONAL  INTEREST AND
BINDING INTERNATIONAL COMMITMENTS,  it is the policy of the State TO:
(A)      PURSUE ASA MAJOR GOAL, AN ACTIVE POLICY DESIGNED TO PROMOTE FULL,
PRODUCTIVE    AND    FREELY    CHOSEN    EMPLOYMENT    VVITH    A    VIEW    TO
STIMULATING ECONOMIC GROVVTtl AND DEVELOPMENT, RAISING STANDARDS
OF  LIVING,  MEETING  HUMAN  RESOURCE  REQUIREMENTS AND  OVERCOMING
UNEMPLOYMENT AND UNDEREMPLOYMENT;


aTIe  (8)  Promote  and  maintain  a  state  of  full  employment  through  improved  manpc`,A,'er
HUMAN  RESOURCE training,  allocation  and  utilization,  CONSISTENT VVITH  HUMAN
RIGHTS COMMITMENTS,  INCLUDING THE PROMOTION OF GENDER EQUALITY;
b+e(C)  Protect e`,`er,'  citizer,  THE  RIGHTS AND  DIGNITY OF  CITIZENS  desiring  to work
locally or overseas,  ORGANIZED OR UNORGANIZED,  by seouring for him THEM the
best possible terms and conditions of employment;
Gie-(D)  Facilitate  a  free  choice  of  available  employment  by  persons  seeking  work  in
conformity with the national interest;
work permit 6yctem;
i+e(E) Strengthen the network of public employment offices and raticna!ize the participation
of the private sector in the recruitment and placement of workers, locally and overseasT
to Serve national development objoctiveo;
gTle(F)  Insure  careful  selection  of  Filipino  workers  for  overseas  employment  irt  Order  tc
protect the good name of the Philippinec abroad;
(G)     CONTINUOUSLY     CREATE      LOCAL      EMPLOYMENT     OPPORTUNITIES     AND
PROMOTE THE  EQUITABLE  DISTRIBUTION 0F \/VEALTH AND THE  BENEFITS OF
DEVELOPMENT AS A MEANS TO SUSTAIN  ECONOMIC GROVVTH AND ACHIEVE
NATIONAL       DEVELOPMENT       VVHILE       RECOGNIZING       THE       SIGNIFICANT
CONTRIBUTION OF FILIPINO MIGRANT VVORKERS TO THE NATIONAL ECONOMY
THROUGH    "EIR    FOREIGN    EXCHANGE    REMITTANCES.    THE    OVERSEAS
EMPLOYMENT   PROGRAM   SHOULD   REST   ON   THE   ASSURANCE   THAT   THE
DIGNITY  AND   FUNDAMENTAL  HUMAN   RIGHTS  AND  FREEDOMS  OF  FILIPINO
CITIZENS SHALL NOT, AT ANY TIME, BE COMPROMISED 0R VIOLATED; AND
(H)      APPLY      GENDER€ENSITIVE      CRITERIA      IN      THE      FORMULATION      AND
IMPLEMENTATION OF POLICIES AND PROGRAMS AFFECTING \/VORKERS.  (12a)
Art.12.  Definitions.  AS  USED  IN  THIS  BOOK,  THESE  TERMS  SHALL  BE  DEFINED  AS
FOLLOVVS:
(a)      "lA/offer" means any member of the labor force, whether employed or unemployed.
a))      `Authorty" means a document issued by the Department of Labor.DOLE  authorizing a
person  or association  to  engage  in  recruitment and  placement activities  as  a  private
recruitment entity.
(c)      "i/.censo" megns a document issued  by the Department of Labor DOLE authorizing  a
person or entity to operate a private employment agency.
(d)      "Pivate  fee-chang/.ng  emp/oymer}f  agency"  means  any  person  or  entfty  engaged  in
recruiitment and  placement of workers for a fee which  is charged,  directly or indirectly,
from the workers or employers or both.
(e)      "Pivafe recmffmenf enfty"means any person or association engaged in the recruitment
and  placement of workers,  locally  or overseas,  without charging,  directly  or indirectly,
any fee from the workers or employers.
(D       "Recmffmenf and p/acemenr refers  to  any  act  of canvassing,  enlisting,  contracting,
transporting,   utilizing,   hiring   or  procuring  workers,   and   includes   referrals,   contract
services,  promising or advertising for employment,  locally or abroad, whether for profit
Or not
-.-- i  -11.I-.-jr ..---- `  .-.---  `-I   . I .`-I `-r`t. `7`.I -`i  `+. -`1..  Lf`.  `I`t`tT Ti`,`-`.. ,9ugvv  .,.. vv ..... I ,v. ,`  w. j\]i
p!acement.   WHEN  ANY  PERSON   OR   ENTITY,   lN  ANY  MANNER,   OFFERS  OR
PROMISES   FOR   A   FEE,   EMPLOYMENT   TO   T\/\/0   OR   MORE   PERSONS,   A
PRESUMPTION IS CREATED THAT THE PERSON IS ENGAGED IN RECRUITMENT
AND PLACEMENT.


(G)      "M/GRAIV7-WORKERS" REFERS TO FILIPINOS WHO ARE TO BE  ENGAGED, ARE
ENGAGED OR HAVE BEEN ENGAGED IN A REMUNERATED ACTIVITY IN A STATE
OF VVHICH THEY ARE NOT CITIZENS OR ON BOARD A VESSEL NAVIGATING THE
FOREIGN  SEAS  OTHER THAN  A GOVERNMENT  SHIP  USED  FOR  MILITARY  OR
NON-COMMERCIAL PURPOSES OR ON AN INSTALLATION LOCATED OFFSHORE
OF`  ON THE  HIGH  SEAIS.  A "PERSON  TO  BE  ENGAGED  IN  A  REMUNERATED
AC77V/7Y' REFERS TO AN APPLICANT WORKER VVHO HAS BEEN PROMISED OR
ASSURED EMPLOYMENT OVERSEAS.
(H)      "GEIVDER EQUAL/7-Y" REFERS  TO  THE  PRINCIPLE  ASSERTING  THE  EQUALITY
OF EVERYONE REGARDLESS OF GENDER AND THEIR RIGHT TO ENJOY EQUAL
CONDITIONS REALIZING THEIR FULL HUMAN POTENTIALS TO CONTRIBUTE TO
AND  BENEFIT  FROM  THE  RESULTS  OF  DEVELOPMENT AND VVITH  THE  STATE
RECOGNIZING  THAT ALL  HUMAN  BEINGS  ARE  FREE  AND  EQUAL  IN  DIGNITY
AND RIGHTS.
(I) "GEIVDER-SEIVS/77VE" IS THE STATE OF KNOVVING HOW SOCIAL CONSTRUCTIONS
NORMALIZE  BIASES  AND  MARGINALIZATION  ON  THE  BASIS  OF  GENDER AND
BEING ABLE T0 ACT VVITHOUT BIASES AND EXHIBIT RESPECT FOR EACH AND
EVERY    PERSON    REGARDLESS    OF    GENDER.     IT    IS    RECOGNIZING    THE
INEQUALITIES  AND   INEQUITIES   PREVALENT  IN   SOCIETY  BETVVEEN  VVOMEN
AND MEN AND COMMITTING TO ADDRESS GENDER ISSUES.  (13a)
A+  1?..  Employment Promotion. The Secretary of Labor SOLE shall  have the power and
authorty:
(a)      To   organize   and   establish   new   employment   offices   in   addition   to   the   existing
Employment offices under the Department of Labor  DOLE as the need arises;
to)      To organize and establish a nationwide job clearance and information system to inform
applicants  registering with  a  particular employment office of job opportunities  in  other
parts of the country as well as job opportunities abroad;
(c)      To  develop  and  organiee  a  program  that  will  facilitate  occupational,   industrial  and
geographical mobility of labor and provide assistance in the relocation of workers from
one area to another; and
(d)     To   require   any   person,   establishment,   organization   or   institution   to   submit   such
employment information as may be prescribed by the Secretary of Labor SOLE.  (14a)
Art.14. Private Recruitment. Except as provided in Chapter 11 of this Title,  no person or
entity other than the public employment offices, shall engage in the recruitment and
placement of workers. (16)
CHAPTER 11
REGULATION OF ON RECRUITMENT AND PLACEMENT ACTIVITIES
Art.  15.  Private  Sector  Participation  in  the  Recruitment  and  Placement  of Workers.
Pursuant to national development objectives and in order to harness and maximiee the use of
private   sector   resources   and   initiative   in   the   development   and   implementation   of   a
comprehensive employment program, the  private employment sector shall  participate  in the
recruitment and placement of workers, locally and overseas, under such guidelines, rules and
regulations as may be issued  by the Secretary of Labor SOLE AND THE SECRETARY OF
THE  DEPARTMENT OF  MIGRANT WORKERS  (DMW)  FOR OVERSEAS  EMPLOYMENT,
RESPECTIVELY.  (25a)
Art.  16.  Travel  Agencies  Prohibited  to  Recruit.  Travel  agencies  and  sales  agencies  of
airline companies are prohibited from engaging in the business of recruitment and placement
of workers for overseas employment whether for profit or not. (26)


ART.17. PROHIBITION ON OFFICIALS AND EMPLOYEES. OFFICIALS 0R EMPLOYEES
0F  THE  GOVERNMENT,  ITS  BRANCHES,  SUBDIVISIONS,  lNSTRUMENTALITIES,  AND
AGENCIES,  INCLUDING  GOVERNMENTOWNED  OR  CONTROLLED  CORPORATIONS
VVITH   ORIGINAL   CHARTERS   OR   THEIR   RELATIVES,   VVITHIN   THE   FOURTH   CIVIL
DEGREE  OF   CONSANGUINITY  OR  AFFINITY  ARE   PROHIBITED   FROM   ENGAGING,
DIRECTLY OR  INDIRECTLY,  lN  RECRul"ENT AND  PLACEMENT OF VVORKERS  FOR
OVERSEAS  EMPLOYMENT VVHETHER  FOR  PROFIT OR  NOT. THE  PENALTIES  SHALL
BE  IMPOSED UPON THEM.  (new)
Art.  18.    Citizenship  Requirement.  Only  Filipino  citizens  or  corporations,  partnerships  or
entities at least seventy-five percent (75%) of the authorized and voting capital stock of which
is owned and controlled by Filipino citizens shall be permit(ed to participate in the recruitment
and placement of workers, locally or overseas. (27)
Art.19. Capitalization. AII applicants for authority to hire or renewal of license to recruit are
re.quired t_o_h.a.ve .ET_ch substantial AUTHORIZED capitalization as determined by the Secretary
cf Labor FOLLOVVS:
(1)      FOR OVERSEAS  RECRulTMENTAND  PLACEMENT, A MINIMUM  NET WORTH OF
TWELVE     MILLION     PESOS     (P12,000,000.00)     lN     THE     CASE     OF     SINGLE
PROPRIETORSHIPS,   AND   A   FULLY   PAID-UP   CAPITAL   OR   NET   WORTH   OF
TVVELVE  MILLION  PESOS  (P12,000,000.00)  lN THE CASE OF PARTNERSHIPS OR
CORPORATIONS; AND
(2)      FOR   LOCAL   RECRUITMENT  AND   PLACEMENT,   A  MINIMUM   NET  WORTH   0F
THREE      MILLION      PESOS      (P3,000,000.00)      lN     THE      CASE     0F      SINGLE
PROPRIETORSHIPS, AND A FULLY PAID-UP CAPITAL OR NET \/\/ORTH OF THREE
MILLION    PESOS    (P3,000,000.00)    lN    THE    CASE    OF    PARTNERSHIPS    OR
CORPORATIONS.  (28a)
Art. 20. Non-Transferability of License or Authority. No license or authority shall be used
directly or indirectly by any persons other than the cr`e THOSE in whose favor it was issued
or at any place other than that stated in the license or authority be transferred,  conveyed or
assigned  to  any  other  person  or entity.  Any  transfer of business  address,  appointment  or
designation  of any  agent  or representative  including  the  establishment  of additional  offices
gr|yywhere shall be subject to the prior approval of the Department of LaborDOLE, OR DMW,
RESPECTIVELY.  (29a)
Art.  21.  Rog[Stratlon  Foco.  The  Secretary  of  Labor  SOLE  OR  DMW SECRETARY  shall
promulgate a schedule of fees for the registration of all applicants for license or authority. (30a)
£srLde2t:.mB,:n#jyRE#S:o°::::::tn£:h:'bffiv+iesu&hh=r:h=I=¥i'=fi=
procedures,  rules  and  regulations,  and  terms  and  conditions  of  employment  es  ma`,'  be
appropriate, ALL APPLICANTS FOR LICENSE OR AUTHORllY SHALL POST SUCH CASH
AND SURETY BONDS AS DETERMINED BY "E SECRETARY OF LABOR FOLLOWS:
(1)      FOR  OVERSEAS  RECRUITMENT AND  PLACEMENT,  THE  AMOUNT OF  ll/\/ELVE
MILLION       PESOS       (P12,000,000.00)       FOR       SINGLE       PROPRIETORSHIPS,
PARTNERSHIPS OR CORPORATIONS; AND
(2)      FOR LOCAL RECRUITMENTAND PLACEMENT, THE AMOUNTOF THREE MILLION
PESOS  (P3,000,000.00)  FOR  SINGLE  PROPRIETORSHIPS,  PARTNERSHIPS  0R
CORPORATIONS. (31 a)
Art.  23.  N0  Fees to be Paid  by Workers.  NO FEE  0R CHARGE  SHALL  BE  REQUIRED
FROM aF]y persons applying with aprivate fee charging employment ager:c`,' AGENCIES for
employment  assistance  Shall  not  be  charged  any  fee  until  he  has  obtained  employment


promulgate a schedule of allowable fees. (32a)
Art.  24.  Mandatory  Remittance  of Earnings.  It shall  be  mandatory for all  Filipino workers
ab,road    RECRUITED   AND    PLACED    BY    PRIVATE    FEE-CHARGING    EMPLOYMENT
AGENCIES   OR   PRIVATE   RECRUITMENT   ENTITIES   FOR   LOCAL   OR   OVERSEAS
EMPLOYMENT,  to  remit a  portion  of their foreign  exchange earnings to their LEGITIMATE
families,   dependents,   and/or  beneficiaries   in  the  country   in   accordance  with   rules  and
regulations   prescribed   by   the    Secretary   of   Labor   SOLE,    OR   DMW   SECRETARY,
RESPECTIVELY.  (22a)
Art.  25.  R®ports  on  Employment  Status.  Vvhenever  the  public  intere6t  requires,  The
Secretary of Labor SOLE OR DMW SECRETARY fray SHALL direct all persons or entities
within the coverage of this Title to submit a report on the status of employment,  including job
vacancies, details of job requisitions, separation from jobs, wages, other terms and conditions
and other employment data.  (33a)
CHAPTER Ill
LOCAL RECRUITMENT AND EMPLOYIVIENT
Art. 26. Bureau of LOCAL Employment Ser,'ices. (a) The Bureau of LOCAL Employment
Set,'ices  shall   be  primarily  responsible  for  developing  and   monitoring  a  comprehensive
LOCAL employment program.  It shall have the pewer and duty TO:
(1)     IerFormulate and develop plans and programs to implement the employment promotion
objectives of this lltle;
(2)      To  establish  and  maintain  a  registration  and/or  licensing  system  to  regulate  private
sector participation in the recruitment and placement of workers,  locally and overseas,
by the Minister of Labor
(2)      ESTABLISH AND ADMINISTER A MACHINERY FOR THE EFFECTIVE ALLOCATloN
OF HUMAN RESOURCES FOR MAXIMUM EMPLOYMENT AND PLACEMENT;
(3) {6}+e Develop AND  MAINTAIN  a  responsive vocational  guidance  and testing system  in
aid of proper human resources allocation; afld
(4)      REGULATE    AND    SUPERVISE    PRIVATE    SECTOR    PARTICIPATION    IN    THE
RECRUITMENT AND PLACEMENT OF VVORKERS LOCALLY UNDER SUCH  RULES
AND REGULATIONS AS MAY BE ISSUED BY THE SOLE;
(5)i4}ie Establish and maintain a registration and/or work permit system to REASONABLY
regulate the employment of aliens NON-RESIDENT FOREIGN NATIONALS SUBJECT
TO THE PRINCIPLE OF RECIPROCITY;
(6)  (5)  Tc  Develop  AND  MAINTAIN  a  labor  market  information  system  in  aid  of  proper
nianpc`,A,Jer HUMAN  RESOURCE and development planning;
(7) To maintain a central regictry of ekillc, except seamen.
(7) (3) Tc Fomulate and develop employment programs designed to benefit disadvantaged
groups and communities; AND
(8)      PERFORM OTHER FUNCTIONSAS MAY BE PROVIDED BY LAW.


g#;;;::=:==:=:::::!±=±::=;:=::geniflrfesjenthallfaffl
® (b) The REinister cf Laser SOLE shall have the power to impose and collect fees based on
rates  recommended  by  the  Bureau  of  LOCAL  Employment  Sep,`iees.  Such  fees  shall  be
depositedintheNationalTreasuryasaspecialaccountoftheGeneralFund,forthepromotion
of the objectives of the Bureau of LOCAL Employment Sef`riees,  subject to the provisions of
Section 40 of Presidential Decree No.1177.  (15a)
ART.  27.  PUBLIC  EWIPLOYMENT  SERVICE  OFFICE.  TO  CARRY  OUT THE  DECLARED
pOLlcy   TO    pROvlDE    FULL    EMPLoyMENT   AND    EQUALirv   OF    EMPLoyMENT
OPPORTUNITIES FOR ALL, AND FOR THIS PURPOSE, TO STRENGTHEN AND EXPAND
THE     EXISTING     EMPLOYMENT    FACILITATION     SERVICE     MACHINERY    OF    THE
GOVERNMENT,     PARTICULARLY    AT    THE    LOCAL    LEVELS,    THERE    SHALL    BE
ESTABLISHED   IN   ALL   CAPITAL   TO\/VNS   AND/OR   SEATS   OF   GOVERNMENT   OF
PROVINCES,  KEY  CITIES,  AND  OTHER  STRATEGIC AREAS A  PUBLIC  EMPLOYMENT
SERVICE   OFFICE,   HEREINAFTER   REFERRED   TO   AS   "PESO",   VVHICH   SHALL   BE
COMMUNITY-BASED  AND  MAINTAINED  LARGELY  BY  LOCAL  GOVERNMENT  UNITS
(LGUS)  AND  A   NUMBER   OF   NON-GOVERNMENTAL   ORGANIZATIONS   (NGOS)   OR
COMMUNITY-BASED    ORGANIZATIONS    (CBOS)    AND    STATE    UNIVERSITIES    AND
COLLEGES  (SUCS),  lN  ACCORDANCE  VVITH  REPUBLIC  ACT  NO.  8759.  THE  PESOS
SHALL  BE  LINKED  TO THE  REGIONAL  OFFICES  OF  THE  DOLE  FOR  COORDINATION
AND    TECHNICAL    SUPERVISION,    AND    TO    THE    DOLE    CENTRAL    OFFICE,    TO
CONSTITUTE THE NATIONAL EMPLOYMENT SERVICE NETWORK.  (new)
CHAPTER IV
±±LEGALRECRulTMENTAr\IDPRblJiBITTEDPRACTlcEs
Art. 28. Illegal Recruitment.
±TNSDHEARLTLABKEEURNE¥RvyF#tE3PAN°DN-pL#g±iEEENST°cRON?E#p°LiEEBSu%£RTAHR°TR|TET]?
OF THIS CODE:  Pf?OV/DED, THAT SUCH NON-LICENSEES OR NON-HOLDERS WHO IN
ANY  MANNER,  OFFER  OR  PROMISE  FOR A  FEE  EMPLOYMENT  TO  TWO  OR  MORE
PERSONS  SHALL  BE  DEEMED  SO  ENGAGED.     IT  SHALL  ALSO  BE  UNLAWFUL  TO


99_M_M_lT_ lil_KEYV]SE INCLUDE THE FOLLOVVING ACTS, VVHETHER COMMITTED By ANy
PERSON, A NON-LICENSEE,  NON-HOLDER,  LICENSEE OR HOLDER OF AUTHORITY:
(a)      |9_CquRGE OR ACCEPT,  DIRECTLY OR INDIRECTLY, ANY AMOUNT GREATH
rna. ffi-EERIE
DOCUMENT IN  RELATION TO RECRUITMENT OR EMPLOYMENT;
(c)      TO  GIVE  ANY  FALSE  NOTICE,  TESTIMONY,  INFORMATION  OR  DOCUMENT  OR
COMMIT ANY ACT OF MISREPRESENTATION FOR THE PURPOSE OF SECURING
A  LICENSE  OR  AUTHORITY  UNDER  THIS  CODE;  OR  FOR  "E  PURPOSE  OF
DOCUMENTING  HIRED  VVORKERS  VVITH  THE  POEAL|O_LE  OR  DMW,  AS  Tj±
CASE   MAY   BE,   VVHICH   INCLUDE   THE   ACT   OF   REPROCESSING   VVORKERS
THROUGH  A  JOB  ORDER  THAT  PERTAINS  TO  NON-EXISTENT  WORK,  WORK
DIFFERENT    FROM    THE   ACTUAL   O\,'EP`SE,A`S   WORK,    OR   WORK   VVITH    A
DiFFERENT EMPLoyER VVHETHER REGisTERED OR NOT VVITH THE f2en DOLE
OR DMW;
(d)      TO  INDUCE  OR  ATTEMPT  TO  INDUCE  A  WORKERS+ALREADY  EMPLOYED  TO
QUIT  I:Its  |!±E!B  EMPLOYMENT  IN  ORDER  TO  OFFER  I±+M  |!±EM  ANOTHER
UNLESS  THE  TRANSFER  IS  DESIGNED TO  LIBERATE A uE WORKERS FROM
OPPRESSIVE TERMS AND CONDITIONS OF EMPLOYMENT;
(e)      TO  INFLUENCE  OR  TO  ATTEMPT  TO  INFLUENCE  AN¥  PERSONS  OR  ENT!T¥
ENTITIES NOT T0 EMPLOY AN¥ WORKERS VVH0 FIAS ±±4±±E NOT APPLIED FOR
:#P±U:P:P:o::T:E±HR%G%:#5R¥cSSBNoCRYA°RRE¥u8p#RVTEE5°BRyMERyJ8#i5R
(f)       TO  ENGAGE  IN  THE  RECRUITMENT  OR  PLACEMENT  OF  \/VORKERS  IN  JOBS
HARMFUL TO PUBLIC HEALTH OR MORALITY OR TO THE DIGNITY OF VVORKERS
QB_THE  REPUBLIC OF THE PHILIPPINES;
(g)      TO OBSTRUCT OR AITEMPT TO OBSTRUCT INSPECTION  BY THE SECP`ET,AJ¥
9F, t4P,9E .AN_P_E¥PLOYMENI SQ±E_QR DMW SECRETARy oR By us ±
DULY AUTHORIZED REPRESENTATIVES;
qu)      TO  FAIL  TO  FILE  REPORTS  ON  THE  STATUS  OF  EMPLOYMENT,  PLACEMENT
VACANCIES,   SEPARATION   FROM   JOBS,   AND   SUCH   OTHER   MATTERS   OR
L+FORMATION  AS  MAY  BE  REQuiRED  By  THE  SECRETARy  oF  IABOR...Aue
(i)     =8PI£#=:=uP2LEo3R#¥R?STTOHETCHAESEPMRAEYju85i;cE   oF   THE   WORKER,
EMPLOYMENT CONTRACTS APPROVED AND VERIFIED BY THE  DOLE AND THE
BM!ALFROM  THE TIME OF ACTUAL SIGNING  THEP`EOF  BY THE  PARTIES  UP TO
AND  INCLUDING  THE  PERIODS  OF  EXPIRATloN  VVITHOUT THE APPROVAL  OF
±#L=g±==ji„ DMW, AS THE . C4SLM_A¥EEHPAP`T+,1E.kJT oF_+±go|~
0)       FOR AN OFFICERS_OR AGENTS OF A RECRUITMENT OR PLACEMENTAGENCY
TO    BECOME    AN    OFFICERS    0R    MEMBERLOF    THE    BOARD    OF    ANY
CORPORATION_ENGAGED IN TRAVEL AGENCY OR TO BE ENGAGED DIRECTLY
OR INDIRECTLY IN THE MANAGEMENT OF A TRAVEL AGENCY;
qc)      TO WTHHOLD OR DENY TRAVEL NECESSARY DOCUMENTS FROM APPLICANT
WORKERS BEFORE DEPARTURE EMPLOYMENT FOR MONETARY OR FINANCIAL
CONSIDERATIONS,   OR   FOR   ANY   OTHER   REASONS,   OTHER   THAN   THOSE
AUTHORIZED  UNDER THE  LABOR±!±JS_CODE AND  ITS  IMPLEMENTING  RULES
AND REGULATIONS;
0]=a::i:a±:T&TficoTuuTAtz[,D¥ON±s=is±!=RR[NDEEDPLBgyTHTffggiEi:==S:±==


QMLW;
(in)     FAILURE    TO    REIMBURSE    EXPENSES     INCURRED    BY    THE    WORKER    IN
CONNECTION     VVITH     |!±E±B     DOCUMENTATION     AND     PROCESSING     FOR
PURPOSES OF DEPLOYMENT, IN CASES VVHERE THE DEPLOYMENT DOES NOT
ACTUALLY     TAKE     PLACE     VVITHOUT     THE     WORKER'S     FAULT.      ILLEGAL
RECRUITMENT  VVHEN   COMMITTED   BY  A   SYNDICATE   OR   IN   LARGE   SCALE
SHALL BE CONSIDERED AN OFFENSE INVOLVING ECONOMIC SABOTAGE; AND
(n)      TO  ALLOW  A   NON-FILIPINO   CITIZENS  TO   HEAD   OR   MANAGE   A   LICENSED
RECRUITMENT,A`C-ENCYAGENCIES.
ILLEGAL RECRUI"ENT IS  DEEMED COMMITTED  BY A SYNDICATE IF CARRIED OUT
BY A GROUP 0F THREE  (3) OR MORE PERSONS CONSPIRING OR CONFEDERATING
VVITH  ONE  ANO"ER.  IT  IS  DEEMED  COMMITTED  IN  LARGE  SCALE  IF  COMMITTED
AGAINST THREE (3) OR MORE PERSONS INDIVIDUALLY 0R AS A GROUP.
IN ADDITION TO THE ACTS ENUMERATED ABOVE,  lT SHALL ALSO BE UNLAWFUL FOR
P_ERSONS OR ENTITIES TO COMMIT THE FOLLOVVING PROHIBITED ACTS:
(1)      9_quNT  A  LOAN  TO  AIL OVERSEAS  WORKERS  WITH   INTEREST  EXCEEDING
EIGHT  PERCENT  (8%)  PER ANNUM,  \/VHICH  VVILL  BE  USED  FOR  PAYMENT  OF
LEGAL  AND  ALLOWABLE  PLACEMENT  FEES  AND  QB  MAKE  Il]E  WORKERS
ISSUE,      EITHER      PERSONALLY      OR      THROUGH      A      GUARANTORS      OR
ACCOMMODATIONFIA`P`-TY_PARTIES,POSTDATEDCHECKSINRELATIONFOTHE
SAID  LOAN;
(2)      IMPOSE   A    COMPULSORY   AND    EXCLUSIVE   ARRANGEMENT   VVHEREBY   A
WORKERS ts ABE REQUIRED TO AVAIL OF A LOAN ONLY FROM SPECIFICALLY
DESIGNATED INSTITUTIONS,  ENTITIES OR PERSONS;
(3)      REFUSE TO CONDONE OR  RENEGOTIATE A LOAN  INCURRED  BY A WORKERS
AFTER  THE  LAITER'S  EMPLOYMENT  CONTRACT  HAS  BEEN   PREMATURELY
TERMINATED THROUGH NO FAULT OF E!S OP` ,L+ER |!±EJB OWN;
(4)      IMPOSE   A   COMPULSORY   AND   EXCLUSIVE   ARRANGEMENT   VVHEREBY   AN
OVERSEAS   FILiplNo  woRKER§  rs  ALBE  REQuiRED  To   UNDERGo   HEALTH
EXAMINATIONS  ONLY  FROM   SPECIFICALLY  DESIGNATED  MEDICAL  CLINICS,
INSTITUTIONS, ENTITIES OR PERSONS, EXCEPT IN THE CASE OF A SEAFARERS
vvHOsE   MEDicAL   EXAMiNATioN    cOsTs   rs   ARE   sHouLDERED    By   THE
PRINCIPAL/SHIPOWNER;
(5)      IMPOSE   A   COMPULSORY   AND   EXCLUSIVE   ARRANGEMENT   VVHEREBY   AN
9¥.E.PS.Efs .F.'±LPJ+I9_vy_9PKEBS S  ABE  REQUIRED  TO  UNDERGo  TRAINING,
SEMINAR,     INSTRUCTION     OR    SCHOOLING     OF    ANY     KIND     ONLY     FROM
SPECIFICALLY  DESIGNATED  INSTITUTloNS,  ENTITIES  OR  PERSONS,  EXCEPT
FOR                RECOMMENDATORY                TRAI N INGS                MANDATED                BY
PRINCIPALS/SHIPOWNERS   \/VHERE   THE   LATTER   SHOULDER  THE   COST  OF
SUCH TRAININGS;
(6)      FOR  A  SUSPENDED  RECRul"ENT  ,A`GENCY  AGENCIES  TO  ENGAGE  IN  ANY
KIND  OF  RECRUITMENT ACTIVITY  INCLUDING  THE  PROCESSING  OF  PENDING
WORKERS' APPLICATIONS; AND
(7)      FOR        A        RECRUITMENT        ,A`GENCY        AGENCIES        OR        A        FOREIGN
PRINCIPAL/EMPLOYER PRINCIPALS/EMPLOYERS TO PASS 0N THE O\,EP`SEAS
E!:-_!P!_}±9__YV9RKERS  OR   DEDUCT   FROM   HIS   OR   HER  |!±E±B   SALARy   THE
PAYMENT    OF    THE    COST    OF    INSURANCE    FEES,    PREMIUM    OR    OTHER
INSURANCE  RELATED  CHARGES,  AS  PROVIDED  UNDER  THE  COMPULSORY
VVORKER'S INSURANCE COVERAGE.
THE    PERSONS    CRIMINALLY    LIABLE    FOR    THE    ABOVE    OFFENSES    ARE    THE
PRINCIPALS, ACCOMPLICES AND ACCESSORIES.  IN CASE OF JURIDICAL PERSONS,


THE  OFFICERS  HAVING  OWNERSHIP,  CONTROL,  MANAGEMENT OR  DIRECTION  OF
THEIR BUSINESS VVHO ARE RESPONSIBLE FOR THE COMMISSION OF THE OFFENSE
AND THE RESPONSIBLE EMPLOYEES/AGENTS SHALL BE LIABLE.
IN THE  FILING 0F CASES FOR ILLEGAL RECRUITMENT OR ANY OF THE PROHIBITED
49|S_U_N.D_ERT_H_IS_A_P_Tl_CLE,THESECRETARYOFLABORANDEMPLoyMENTSQ±,
SECRETARY   OF    DMW,    THE    POEA   ADMINISTRATOR   OR   |±±E±B   AUTHORizEb
REPRESENTATIVES,      OR     ANY     AGGRIEVED      PERSON      M7FTINITIATE      THE
CORRESPONDING  CRIMINAL  ACTION  VVITH  THE  APPROPRIATE  OFFICE.  FOR  THIS
PURPOSE,  THE  AFFIDAVITS  AND  TESTIMONIES  OF  OPERATIVES  0R  PERSONNEL
EE9M_THE  DEPARTMENT  OF  LJ\BOR  AND  EMPLOYMENT,  POEA  DOLE`  DMW,  AND
OTHER LAW ENFORCEMENT AGENCIES VVHO VVITNESSED THE ACTS CONSTITUTING
THE OFFENSE SHALL BE SUFFICIENT TO PROSECUTE THE ACCUSED.
iN THE pRosEcuTioN oF OFFENSES puNisHABLE UNDER THis ARTicLE SECT!orJ,
THE     PUBLIC     PROSECUTORS     OF     THE     DEPARTMENT     OF     JUSTICE     SHALL
COLLABORATE VVITH THE ANTl-ILLEGAL RECRUITMENT BRANCH OF THE POE^ DOLE
THE   FiLING   OF  AN   OFFENSE   puNisHABLE   UNDER   THis   Ael  CODE   SHALL   BE
VVITHOUT   PREJUDICE   TO   THE   FILING   OF   CASES   PUNISHABLEThDER   OTHER
EXISTING LAWS, RULES OR REGULATIONS. (38a)
Art. 29. Penalties.
(a)      PERSONS   FOUND   GUILTY  OF   ILLEGAL   RECRUITMENT   SHALL   SUFFER  THE
PENALTY OF IMPRISONMENT OF NOT LESS THAN TV\/ELVE (12) YEARS AND ONE
(1)  DAY  BUT NOT MORE THAN ll/VENTY (20) YEARS AND A FINE  OF  NOT LESS
THAN ONE |!4£Q MILLioN  PESos  (P2,ooo,oco.co)  NOR MORE THAN nAro FouR
MILLION PESOS (P4,OcO,000.00).
to]¥i##fipHEERO:Roi#¥L#%¥LEit¥g#:TLNE:?i:s:[§::D5ffNOErdsHH5ERE
(c)      THE  pENALTy OF  LiFE  iMPRisoNMENT AND A  FINE  OF  NOT  LEss THAN  nAro
E|¥E  MILLION   PESOS   (P5,000,000.00)   NOR   MORE   THAN   F+VE  |E±|   MILLION
PESOS    (P10,000,000.cO)    SHALL    BE    IMPOSED    IF    ILLEGAL    RECRul"ENT
CONSTITUTES ECONOMIC SABOTAGE AS DEFINED IN ARTICLE 28.
(d)      PERSONS  FOUND GUILTY OF ANY OF THE  PROHIBITED ACTS  SHALL SUFFER
THE PENALTY 0F IMPRISONMENT OF NOT LESS THAN SIX (6) YEARS AND ONE
(1)  DAY  BUT  NOT MORE THAN  TVVELVE  (12) YEARS AND A  FINE  OF  NOT  LESS
T_TA_N_ _F_lYE_ HUNDRED THOUSAND  PESOS  ONE  MILLION  PESoS  (p| ,ooo,ooo.oo)
NOR MORE THAN ONE |±A!Q.MILLION PESOS (P2,000,000.00).
(e)      lF  THE  OFFENDERS_rsLALBLAL!ENS  FOREIGN   NATIot\lALS,  THEY  SHALL,   lN
ADDITION  TO  THE  PENALTIES  PRESCRIBED  HERE,  BE  DEPORTED  VVITHOUT
FURTHER PROCEEDINGS.
(f)       lf the offenders is ARE a corporations, partnerships, associations or erty ENTITIES,
the   penalty   shall   be   imposed   upon   the   officer   or   officers   of  the   corporations,
partnerships, associations or entfty ENTITIES responsible for THE violation; and if Such
without further proceeding8±
ln  every  case,  conviction  shall  cause  and  carry the  automatic  revocation  of the  license  or
authority and all the permits and privileges granted to such  person or entity under this Title,
and  the  forfeiture  of  the  cash  and  surety  bonds  in  favor  of  the  Overseas  Employment


:ffiE8Vi:EL:i:::£=:;=:;i;:;;::=::=:=:::;::=;==fg=8j=.;=;==fi;;i;=;Egg,EEfFUu35LT°oC£E
l]S_ED exclusively tapromote their objectives FOR THE AMELIORATION AND BENEFIT OF
WORKERS.  (39a)
CHAPTER V
OVERSEAS EMPLOYMENT
Eiiei-EEEEi,ET+iEE±ii-!!ji-iffiiTiriMEiEEE-i!i.iiiITE!,iERE
ECONOMIC   GROWTH   AND   ACHIEVE    NATIONAL    DEVELOPMENT,    RECOGNIZING
OngiT¥s¥EESE:E¥sLg:M:y:F:fN£T¥:sf£EEi:s:#±:£::a:E::a!:=::::::i:g¥£:::::i:gg
INSURE THAT THE DIGNITY AND FUNDAMENTAL HUMAN RIGHTS AND FREEDOMS 5F
THE FILIPINO CITIZENS SHALL NOT, AT ANY TIME,  BE COMPROMISED OR VIOLATED.
THE  STATE,  THEREFORE,  SHALL  CONTINUOUSLY  CREATE  LOCAL  EMPLOYMENT
OPPORTUNITIES  AND  PROMOTE  THE  EQUITABLE  DISTRIBUTION  OF  WEALTH  AND
THE BENEFITS OF DEVELOPMENT.  (new)
AFT:  _?1._   TERMINATION    0R    BAN    0N    DEPLOYMENT.   Noll^/lTHSTANDING  .THE
FF_a_YISIONS  OF  SECTIONS  1  AND  5 0F THIS  RULE,.  lN  PURSUIT OF THE  RATIONAL
LN_TF_R_EST  OR  VVHEN   PUBLIC  VVELFARE  SO  REQUIRES,   THE     POEA  GOVERNING
BOARDJ2M!LW,  AFTER  CONSULTATION  VVITH  THE  BEA  DEPARTMENT  OF  FOREIGN
AFFAIRS,  MAY, AT ANY TIME,  TERMINATE  OR  IMPOSE A BAN  ON THE  DEPLOYMENT
OF MIGRANT WORKERS.  (new)
Art.  32.  Ban  on  DirectHiring.   No  employer  may  hire  a  Filipino  workers  for  overseas
-=:-==-_::-:=:-:::===:::=:-:.:==
(1)      MEMBERS OF THE DIPLOMATIC CORPS;
(2)      MEMBERS OF INTERNATIONAL ORGANIZATIONS; and
(3)      HEADS OF STATE AND GOVERNMENT OFFICIALS WTH THE RANK OFAT LEAST
UNDERSECRETARY.
THE   TERM   "INTERNATIONAL   ORGANIZATION"   ls   AN   ORGANIZATION   SET   UP   BY
AGREEMENT   BETVVEEN   T\/VO   OR   MORE    STATES,    INCLUDING   A   SPECIALIZED
AGENCY  HAVING  FUNCTIONS  IN  PARTICULAR  FIELDS.  IT  MAY  ALSO  INCLUDE  AN
ORGANIZATION HAVING AN  INTERNATIONAL CHARACTER AND PURPOSE, WHICH  IS
GRANTED   THE   STATUS,   PREROGATIVES,   PRIVILEGES   AND   IMMUNITIES   OF   AN
INTERNATIONAL ORGANIZATION.  (18a)
ART. 33. APPLICABILITY 0F MIGRANT WORKERS ACT. ALL OTHER PROVISIONS OF
REPUBLIC   ACT   NO.   8042,   AS   AMENDED,   AND   RULES   AND   REGULATIONS   NOT
INCONSISTENT HEREVVITH ARE DEEMED ADOPTED.  (new)


Chapter VI
EMPLoyMENT OF NON-REsiDENT AI]ENs FOREIGN NATioN4rs
Art.  34.  Employment Permit of Non-Resident aliens FOREIGN  NATIONALS. Any aJiep
NON-RESIDENT   FOREIGN   NATIONALS   seeking   edmissicn   te   EMPLOYMENT   IN   the
Philippines and any domestic or foreign employers who desjfes DESIRE to engage and+en
A  FOREIGN  NATIONALS  for  employment  in  the  Philippines  shall  obtain  an  employment
permit from the QRE.
Ibe AN employment permit may be issued to a non-resident aljefi FOREIGN  NATIONAL or
to  the  applicant  employer  after  a  determination  of  the  non-availability  of  a  person  in  the
PP±i_P_P_i_n.?S  who. is  e8mp?t.Opt,.. abl+  Q_U4L!F_lEP  and  willing  at  the  ti-me  of  .application  t6
perform the services for which the alien NON-RESIDENT FOREIGN NATIONAL is desired.
THE SOLE IS AUTHORIZED TO GRANT EXEMPTIONS FROM THE LABOR MARKET TEST
TO    FOREIGN    NATIONALS    AS    PROVIDED    FOR    UNDER    EXISTING    LAWS    AND
AGREEMENTS,  AS  VVELL  AS  IN  INDUSTRIES  OR  OCCUPATIONS  0R  PRACTICE  OF
PROFESSIONS    VVHERE    THERE    IS    SHORT   SUPPLY    SUBJECT   T0    TRIPARTITE
CONSULTATIONS.
For en enterprises registered in prefened areas of investments, said employment permit may
be issued upon recommendation of the government agency charged with the supervision of
said registered enterprise. (40a)
ART. 35. VALIDITY OF FOREIGN NATIONAL EMPLOYMENT PERMIT (FNEP). THE E±!EE
SHALL BE VALID FOR THE POSITION AND COMPANY FOR VVHICH IT WAS ISSUED FOR
A  PERIOD  OF  ONE  (1)  YEAR,  UNLESS  THE  EMPLOYMENT  CONTRACT,  OR  OTHER
MODES   OF   ENGAGEMENT   PROVIDES   OTHERVVISE,   VVHICH   IN   NO   CASE   SHALL
EXCEED THREE (3) YEARS.
A  FOREIGN  NATIONAL EMPLOYMENT PERMIT  IS  ONE  ISSUED  TO A  NON-RESIDENT
EOREIGN NATloNAL OR TO AN APPLICANT EMPLOYER AFTER A DETERMINATION OF
THE  NON-AVAILABILITY  OF  A  PERSON  QLUALIFIEP  AND  VVILLING  AT  THE  TIME  OF
APPLICATloN   TO   PERFORM   THE   SERVICES    FOR   VVHICH   THE    NON-RESIDENT
FOREIGN NATIONAL IS DESIRED.  (new)
ART.  36.  RENEWAL OF  FNEp.  AN AppLicATioN  FOR RENEWAL OF jing SHALL BE
FILED  NOT EARLIER THAN  SIXTY (60)  DAYS  BEFORE  ITS  EXPIRATION.  IN  CASE THE
FOREIGN   NATIONAL   NEEDS   TO   LEAVE   THE   COUNTRY   OR   IN   OTHER   SIMILAR
CIRCUMSTANCES   THAT   VVILL   HINDER   THE    FILING   OF   RENEWAL   VVITHIN   THIS
PRESCRIBED PERIOD, THE APPLICATION MAY BE FILED EARLIER.  (new)
ART.  37.   DENIAL  OF APPLICATION. AN APPLICATION  FOR  FNEP  SHALL  BE  DENIED
BY THE DOLE BASED ON ANY 0F THE FOLLOVVING GROUNDS:
(a)      MISREPRESENTATION      OF      FACTS      IN      THE      APPLICATION      INCLUDING
FRAUDULENT   MISREPRESENTATION   I.E.   FALSE   STATEMENT   THAT   HAS   A
NEGATIVE    EFFECT    IN    THE    EVALUATION    OF    THE    APPLICATION    MADE
KNOVVINGLY,  OR VVITHOUT BELIEF  IN  ITS TRUTH,  OR  RECKLESSLY WHETHER
IT IS TRUE OR FALSE;
tb)      SUBMISSION OF FALSIFIED DOCUMENTS;
(c)      CONVICTION  OF  THE  FOREIGN  NATIONAL  OF  A  CRIMINAL  OFFENSE  OR  THE
FOREIGN   NATIONAL  IS  A  FUGITIVE  FROM  JUSTICE   IN  THE  PHILIPPINES  OR
ABROAD;
(d)      lLLTREATMENTOFWORKERS;


(e)      AVAILABILITY  OF  A  PERSON   IN   THE   PHILIPPINES   WHO   IS   QUALIFIED   AND
WILLING  TO   DO  THE  JOB   INTENDED   FOR  OR   BEING   PERFORMED   BY  THE
FOREIGN     NATIONAL     BASED    ON     DATA     IN     THE     PUBLIC     EMPLOYMENT
INFORMATION   SYSTEM   (PEIS),   PROFESSIONAL   REGULATloN   COMMISSION
(PRC)  REGISTRY  OF  PROFESSIONALS,  AND  TESDA  REGISTRY  OF  CERTIFIED
WORKERS;
(0       THE  FOREIGN  NATIONAL  HAS  WORKED  WITHOUT  FNEP  FOR  MORE  THAN  A
YEAR; OR
(g)      APPLICATION   FOR   RENEWAL   WITH   EXPIRED   VISA   OR   WITH   TEMPORARY
VISITOR'S VISA.
NO    FNEP    SHALL    BE    ISSUED    TO    A    FOREIGN    NATIONAL    CONSIDERED    AN
UNDESIRABLE   ALIEN   UNDER   COMMONWEALTH   ACT   NO.   613   (THE   PHILIPPINE
IMMIGRATION ACT OF  1940).
THE REGIONAL DIRECTOR SHALL ISSUE AN ORDER DENYING THE APPLICATION FOR
NEW OR RENEWAL OF FNEP WHICH  SHALL HAVE THE  EFFECT OF FORFEITURE OF
THE FEES PAID BY THE APPLICANT.  (new)
ART. 38. CANCELLATION/REVOCATION OF FNEP. AN FNEP MAY BE CANCELLED OR
REVOKED UPON ANY OF THE FOLLOWING GROUNDS:
(a)      NON-COMPLIANCE  WITH  ANY  0F  THE  REQUIREMENTS  OR  CONDITIONS  FOR
WHICH THE FNEP WAS ISSUED;
(b)      MISREPRESENTATION      OF      FACTS      IN      THE      APPLICATION      INCLUDING
FRAUDULENT   MISREPRESENTATloN   I.E.   FALSE   STATEMENT   THAT   HAS   A
NEGATIVE    EFFECT    IN    THE    EVALUATION    OF    THE    APPLICATION    MADE
KNOWINGLY,  OR WITHOUT  BELIEF  IN  ITS  TRUTH,  OR RECKLESSLY WHETHER
IT IS TRUE OR FALSE;
(c)       SUBMISSION OF FALSIFIED DOCUMENTS;
(d)      MERITORIOUS  OBJECTION  OR  INFORMATION AGAINST THE  EMPLOYMENT OF
THE FOREIGN  NATIONAL;
(e)      CONVICTION  OF  THE  FOREIGN  NATIONAL  OF  A  CRIMINAL  OFFENSE  OR  THE
FOREIGN   NATIONAL  IS  A  FUGITIVE  FROM  JUSTICE  IN  THE   PHILIPPINES  OR
ABROAD;
(f)       EMPLOYER TERMINATED THE EMPLOYMENT OF THE FOREIGN NATIONAL; AND
(g)      ILL TREATMENTOF WORKERS.
AN  FNEP  ISSUED  TO  A  FOREIGN  NATIONAL  WHO  SUBSEQUENTLY  BECOMES  AN
UNDESIRABLE ALIEN  UNDER COMMONWEALTH ACT NO.  613 SHALL BE CANCELLED
OR REVOKED.
IN  ANY  CASE  UNDER  THIS  ARTICLE,  THE  REGIONAL  DIRECTOR  SHALL  ISSUE  AN
ORDER CANCELLING OR REVOKING THE FNEP.  (new)
ART.  39.   EXEMPTION  FROM  EMPLOYWIENT PERMIT. THE  FOLLOWING CATEGORIES
OF FOREIGN NATIONALS ARE EXEMPT FROM SECURING AN  FNEP:
(a)      ALL  MEMBERS  OF  THE  DIPLOMATIC  SERVICE  AND  FOREIGN  GOVERNMENT
OFFICIALS  ACCREDITED   BY  AND  WITH   RECIPROCITY  ARRANGEMENT  WITH
THE PHILIPPINE GOVERNMENT;
(b)      OFFICERS  AND  STAFF  0F  INTERNATIONAL  ORGANIZATIONS  OF  WHICH  THE
PHILIPPINE GOVERNMENT IS A MEMBER;
(c)      ALL FOREIGNERS GRANTED EXEMPTION BY LAW;
(d)      OWNERS     AND     REPRESENTATIVES     OF     FOREIGN     PRINCIPALS     WHOSE


COMPANIES ARE ACCREDITED BY THE DMW, VVHO COME TO THE PHILIPPINES
FOR  A  LIMITED  PERIOD AND  SOLELY  FOR  THE  PURPOSE  OF  INltRVIEVVING
FILIPINO APPLICANTS FOR EMPLOYMENT ABROAD.
FOREIGN  NATIONALS  \/VH0  COME  TO  THE  PHILIPPINES  TO  TEACH,  PRESENT  OR
CONDUCT   RESEARCH   STUDIES   IN   UNIVERSITIES   AND   COLLEGES   AS   VISITING,
EXCHANGE  OR ADJUNCT  PROFESSORS  UNDER  FORMAL AGREEMENTS  BETWEEN
THE UNIVERSITIES OR COLLEGES IN THE PHILIPPINES AND FOREIGN  UNIVERSITIES
OR   COLLEGES;    OR   BETVVEEN   THE    PHILIPPINE    GOVERNMENT   AND    FOREIGN
GOVERNMENT; PROV/DED, THAT THE EXEMPTION IS ON A RECIPROCAL BASIS. (new)
ART.  40.  EXCLUSION  FROM  EMPLOYMENT  PERMIT.  THE  FOLLOVVING  CATEGORIES
OF   FOREIGN   NATIONALS   ARE   EXCLUDED   FROM   SECURING   AN   EMPLOYMENT
PERMIT:
(a)      MEMBERS  OF THE  GOVERNING  BOARD VVITH  VOTING  RIGHTS  ONLY VVHO  DO
NOT INTERVENE IN THE MANAGEMENT OF THE CORPORATION OR IN THE DAY-
TO-DAY OPERATION OF THE ENTERPRISE.
ro)     pREsiDENT AND TREAsuRER, WHO ARE PART OwNERs OF THE cOMPANy.
(c)      THOSE PROVIDING CONSULTANCY SERVICES WHO DO NOT HAVE EMPLOYERS
IN THE  PHILIPPINES.
INTRA-CORPORATE    TRANSFEREES    VVHO    ARE    MANAGERS,    EXECUTIVES,    OR
SPECIALISTS    AS    DEFINED    IN    ACCORDANCE    TO    TRADE    AGREEMENTS    AND
EMPLOYEES  OF  FOREIGN  SERVICE  SUPPLIERS  FOR  AT  LEAST  ONE  (1)  YEAR  OF
CONTINUOUS  EMPLOYMENT PRIOR TO  DEPLOYMENT TO A  BRANCH,  SUBSIDIARY,
AFFILIATE OR REPRESENTATIVE OFFICE IN "E PHILIPPINES.  (new)
Art. 41. Prohibition against Transfer of Employment.
(a)      After  the  issuance  of  an  employment  permit,  the  a!ieTnT  NON-RESIDENT  FOREIGN
NATIONALS  shall  not transfer to  another job  or change his THEIR  employer without
prior approval of the Secretary of Labor SOLE.
th)     ftyf  Non-resident  aliet]  FOREIGN   NATIONALS  who  shalLtake  up  employment  in
;`u°|::]h°end°ELn#|jt:h:itj:c:,rsfc|is]gftl:rtTc?enstj2%;ru::Sda2ngdor:fgtuh'gL°anbso:_Eg
VVITH  A  FINE  of  NOT  LESS  THAN  FIFTY  THOUSAND  PESOS  (P50,000.00)  NOR
MORE     THAN     ONE     HUNDRED     THOUSAND     PESOS     (P100,000.00),          OR
IMPRISONMENT OF  NOT LESS THAN  SIX (6)  MONTHS  NOR  MORE THAN  SIX (6)
YEARS OR BOTH SUCH FINE AND IMPRISONMENT AT THE DISCRETION OF THE
COURT.
In addition, the aliefi NON-RESIDENT FOREIGN NATIONALS shall be subject to deportation
after service of  his THEIR sentence.
THE   SOLE   IS   AUTHORIZED   TO   IMPOSE   A   FINE   OF   FIFTY   THOUSAND   PESOS
(P50,000.00)   FOR   EVERY   YEAR   OR   FRACTION   TO   BOTH   THE   NON-RESIDENT
FOREIGN  NATIONAL  FOUND \/VORKING VVITHOUT VALID EMPLOYMENT PERMIT AND
THE EMPLOYER.  (41a)
Art. 42, Submission of ListrAny Employers employing non-resident foreign nationals eutbe
?qectivg_datg of thie Code shall submit a list of such nationals to the Secretary of Labor within
thirty   (30)   dayc   after  such   date   REGIONAL   DIRECTOR   OF   THE   DOLE   VVHICH   HAS
JURISDICTION OVER THE  EMPLOYER NOT LATER THAN THE  15TH  DAY OF JANUARY
EVERY  YEAR  indicating  their  names,  citizenship,  foreign  and  local  addresses,  nature  of


::;I:%=:a:£=±::::::::;::;::#=:::;:t(T2a;Pe`5eGretafi+OfiidbefthatHbel+detefrfurfuf
Chapter VII
MISCELLANEOUS PROVISIONS
Art. 43. Suspension and/or Cancellation of License or Authority. The A#jf:ister cf Labs+r
DOLE OR DMW shall have the power to suspend or cancel any license or authority to recruit
ir::h;:!ffi:a::#;::::;nTsp#iu:i:
A+.41: .P?,g±Lato.ry .PPW®r...The SeeFetary of LabofsoLE OR DMW SECRETARy, AS THE
CASE MAY BE,  shall have the power to restrict and regulate the recruitment and placement
activities  of all  agencies within  the  coverage  of this  Title  and  is  hereby  authorized  to  issue
orders  and  promulgate  rules  and  regulations to cany out the objectives and  implement the
provisions of this Title.  (36a)
Art.  45.  Visitorial  Power. The Secretary  cf La!=e+SOLE  or  DMW SECRETARY,  AS  THE
CASE MAY BE,  ORhis THEIR duly authorized representatives may,  at any time,  inspect the
premises, books of accounts and records of any person or entity covered by this Title, require
it to submit reports regularly on prescribed forms, and act on violation of any provisions of this
Title.  (37a)
BOOK TWO
HUMAN RESOURCES DEVELOPMENT PROGRAM
Title I
TRAINING AND EHPLOYMENI DEVELOPMENT OF SPECIAL WORKERS
Chapter I
APPRENTICES
Art. 46. Statement of Objectives. This lltle aims:
(1)      To help meet the demand of the economy for trained faenpc`,A,'er--WORKFORCE;
(2)      To establish a national apprenticeship program through the participation of employers,
workers and government and nonngovemment agencies; and
(3)      To establish apprenticeship standards for the protection of apprentices.  (57)
Art. 47. Defjnjtion of Terms. As used in this Title:
(a)      "Apprenfi.cesht.p" means practical training on the job supplemented by related theoretical
instruction.
tti)     An  "apprenf/.ce" is a worker who is covered by a written apprenticeship agreement with
an individual employer or any of the entities recognized under this Chapter.
(c)      An  "apprenf/.ceab/e  occupafr.on" means  any trade,  form  of employment  or occupation
which requires more than three (3) months of practical training on the job supplemented
by related theoretical instruction.
(d)      "Apprer}fi.cesht.p  agreemer}f" is  an  employment  contract  wherein  the  employers  bind
themselves  to  train  the  apprentice  and  the  apprentice  in  turn  accepts  the  terms  of
training,  (58)
Art. 48. Qualifications of Apprentice. To qualify as an apprentice, a person shall:
(a)      Be at least fourteen (14) FIFTEEN (15) years of age;
q])      Possess vocational aptitude and capacity for appropriate tests; and


(c)      Possess the abilfty to comprehend and follow oral and written instructions.
Tr.ade .gnd i.ndustry associations _may recommend to the Secretary of Labor SOLE appropriate
educational requirements for different occupations.  (59a)
Art. 49. Employment of Apprentices. Only employers in the highly technical industries may
employ  apprentices  and  only  in  apprentjceable  occupations  approved  by  the  -Secretar,'  cf
Labor and Employment TRIPARTITE INDUSTRIAL PEACE COUNCIL ITIPC).  (60a)
Art.  50.  Contents  of Apprenticeship Agreements. Apprenticeship  agreements,  including
t_he vyage rates_o_f apprentices, shall conform to the rules issued by the Seoretary of Labor and
Emp!c`,'mer:t   SOLE.    The   period   of   apprenticeship   shall   not   exceed   six   (6)   months.
Apprenticeship agreements providing for wage rates below the legal minimum wage, which in
no  case  shall  start  below  SEVENTY-FIVE  percent  (75%)  of the  applicable  minimum  wage,
may be entered  into only in accordance with  apprenticeship programs duly approved  by the
Secretary  of Labor and  Employment SOLE.  The  Department shall  develop  standard  rriode[
programs of apprenticeship.  (61 a)
Art.  51.  Signing of Apprenticeship Agreement. Every apprenticeship agreement shall  be
signed by the employers or THEIR agents,  or by aft THE authorized representatives of any
of the recognized organizations, associations or groups and by the apprentices.
Ap Apprenticeship  agreements  with  a  minors  shall  be  signed  in  his THEIR  behalf  by  his
THEIR  parents  or  guardians,   OR  if  the  latter  is  ARE  not  available,   by  an   authorieed
I.?p.resentative  of the  Department  Of  LaborDOLE,  and  the  same  shall  be  binding  during  its
lifetime.
Every   apprenticeship   agreement   entered   into   under  this   Title   shall   be   ratifled   by  the
appropriate  apprenticeship  committees,   if  any,   and  a  copy  shall   be  furnished   both  the
employers and the apprentices. (62a)
Art.   52.   Venue   of   Apprenticeship   Programs.   Any   Firms,   employers,   groups   or
associations,  industry  organizations  or civic groups wishing  to  organiee  an  apprenticeship
program may choose from any of the following apprenticeship schemes as the training venue
for apprentice:
(a)      Apprenticeship conducted entirely by and within the sponsoring firm,  establishment or
entity;
ttt)      APp.renticeship  er!t!rely  vyi[hin_ a  Department  of  Labor  and  EmploymentDOLE  training
center or other public training institution;  or
(c)       Initial   training   in   trade   fundamentals   in   a   training   center   or  other   institution   with
subsequent actual work participation within the sponsoring firm or entfty during the final
stage of training.  (63)
Art.  53.  Sponsoring  of  Apprenticeship  Program.  Any  of  the  apprenticeship  schemes
recognized herein may be undertaken or sponsored  by a single employers or firms or by a
groups or associations tbefeef or by a civic organizations. Actual training of apprentices may
be undertaken:
(a)      ln  the  premises  of the  sponsoring  employer  in  the  case  of  individual  apprenticeship
programs;
0])      ln the premises of one or several designated firms in the case of programs sponsorecl
by a group or association of employers or by a civic organization; or
(c)      ln a Department of Laborand Employment DOLE training center or other public training
institution.  (64a)


Art.  54.  Investigation of Violation of Apprenticeship Agreement. Upon complaint of any
inte.reisteq person gr_u_pen its own initiative, the appropriate ageney of the-Deparwient Of Labo'F
and  En].ploy.Tent COLE or its  authorized  representative shall  investigate a-ny violation  of an
apprenticeship agreement pursuant to such  rules and  regulations as may  be  prescribed  by
the Seoretary of Labor and Employment SOLE. (65a)
Art. 55. Appeal to the Secretary of Labor and Employment. The decision of the authorieed
agency .of Ire 9epa|ment .of Labor an.d_EmploymentDOLE may be appealed by any aggrieved
pers8n ,tc! the_Sco[etgry of L_a.bar_and Employmont SOLE within five (5) days-froin  r6aeipt of
the decjsior._ The decision of the Secretary of Labor and Employment SdLE-shall be final.and
executory. (66a)
Art.  56.  Exhaustion of Administrative  Remedies.  No  person shall  institute any action for
the  enforcement  of  any  apprenticeship  agreement  or  damages  for  breach  of  any  such
agreement, unless they have exhausted all available administrative remedies.  (67)
Art.  57.  Aptitude  Testing  of  Applicants,  Consonant  with  the  minimum  qualifications  of
apprentice-applicants required under this Chapter, employers or entities with duly recognieed
apprenticeship  programs shall  have  primary responsibilfty for providing  appropriate aptitude
tests in the selection of apprentices.  If they do not have adequate facilities for the purpose,
the Department of Labor and Employment-DOLE shall perform -the service free of cha.rge'. (68)
Art. 58. Responsibility for Theoretical Instruction. Supplementary theoretical instruction to
apprentices  in  cases  where  the  program  is  undertaken  in  the  plant  may  be  done  by  the
employers.  If the latter is ARE not prepared to assume the responsibilrty, the same may be
delegated to an appropriate government agency. (69a)
Art. 59. Voluntary Organization Of Apprenticeship Programs; Exemptions.
(a)      The organization  of apprenticeship program  shall  be  primarily a voluntary undertaking
by employers;
ro)      Vvhen national seourity or partioular requirements of economic development so demand,
the President of the Philippines may require compulsory training of apprentices in certain
trades, occupations, jobs or employment levels where shortage of trained manpower is
qeemed. quicel  a.s  _q8termined  by  the  Secretary  of  Labor  and  Employment  SOLE.
4ppr.opriate .ru_lea Ln this_ connection shall be promulgated by the Seoretaly of Labored
Employment-SOLE as the need arises; and
(c)      Vvhere    services    of   foreign    technicians    are    utilizecl    by    private    companies    in
apprenticeable trades, said companies are required to set up appropriate apprenticeship
programs.  (70a)
Art. 60. Deductibilfty of Training Costs. An additional deduction from taxable income of one-
half (1/2) of the value of labor training expenses incurred for developing the productivfty and
efficiency   of  apprentices   shall   be   granted   to  the   person   or  enterprise   organizing   an
apprenticeship program: Prov/.ded, That such program is duly recognized by the Depart,rtien±
of Labor and Employment DOLE: Provi.bed, further, That such deduction shall not ex-coed ten
(10%)  percent of direct labor wage:  and  Provt.ded,  ffna//y,  That the  persons  or enterprises
who wishes {o avgil_  himself or itself THEMSELVES  of this  incentive  should  pay his THEIR
apprentices the minimum wage.  (71 a)
4± £1.  APprpnt!C®SL  w]qu_out  fompensatlon.  The  Seoretary  of  Labor  and  Employmed
SOLE may authoriee the hiring of apprentices without compensation whose training on the job
is required by the school or training program curriculum or as requisite for graduation or board
examination.  (72)


BOOK THREE
CONDITIONS 0F EIVIPLOYMENT
Title I
WORKING CONDITIONS AND REST PEP`!ODS CONDITIONS
Chapter I
HOURS OF WORK
Art.  62.  Coverage.  The  provisions  of this  Title  shall  apply  to  employees,  FULL-TIME  OR
PART-TIME,   in  all  establishments  and  undertakings  whether  for  profit  or  not,   but  not  to
govemmen{ employees, parage.ri.al employees, field personnel, Fmatbers of the family of the
g#==#:===  , domes\ic heHRE WOF\K:EF`S. A\ND 6ersons
As  used  herein,  "managen.a/ emp/oyees" refer to those whose primary duty consists of the
in?ngg.e.meT.t   of  t.he   es!abli.shme_n_t   in   which  they   are  employed  or-  of  a   department. .er
"Fi.e/d persome/" shall  refer to non-agricultural employees who regularly perform their duties
away from the principal place of business or branch office of the employer and whose actual
hours of work in the field cannot be determined with reasonable certainty.
A_"yo_N_-_G.9y_E_R_N_ME.N_|4_L_9R_9_AN13ATION,"CO"ONl:YF\EFEF\F¥EDTOAISAINNGo,
ls A REGISTERED  NONPROFIT AND  NON-STOCK ORGANIZATION,  ORGANIZED ON A
LOCAL,  NATIONAL  0R  INTERNATIONAL  LEVEL,  THAT  FUNCTIONS  INDEPENDENTLY
OF GOVERNMENT TO PROMOTE PARTICULAR CAUSES OR ADVOCACIES, INCLUDING
A  RELIGIOUS,  CHARITABLE,   MEDICAL  OR  EDUCATIONAL  ORGANIZATION  THAT  IS
NOT OPERATING FOR PROFIT.  (82a)
ART. 63.  PART-TIIVIE WORKERS.
(a)      PART-TIME WORKERS ARE THOSE WHOARE ENGAGED IN A SINGLE, REGULAR
OR     VOLUNTARY     FORM     OF     EMPLOYMENT     WITH     HOURS     OF     WORK
SUBSTANTIALLY  SHORTER  THAN  THOSE  CONSIDERED  AS   NORMAL  IN  THE
ESTABLISHMENT.
(b)      THE NORMAL HOURS OF WORK REFERRED TO IN SUBPARAGRAPH (A) MAY BE
CALCULATED    WEEKLY    OR    ON    AVERAGE    OVER    A    GIVEN    PERIOD    OF
EMPLOYMENT;
(c)      THE    TERM    COMPARABLE    FULL-TIME    WORKERS    REFERS    TO    FULL-TIME
WORKERS WHO:
(i)       HAVE THE SAMETYPE OF EMPLOYMENT RELATIONSHIP;
(ii)      ARE   ENGAGED   IN   THE   SAME   OR   A   SIMILAR   TYPE   OF   WORK   OR
OCCUPATION; AND
(iii)    ARE  EMPLOYED  IN  THE  SAME  ESTABLISHMENT OR,  WHEN  THERE  IS  NO
COMPARABLE   FULL-TIME   WORKER   IN   THAT   ESTABLISHMENT,   lN   THE
SAME  ENTERPRISE  OR,  WHEN  THERE  IS  NO  COMPARABLE  FULL-TIME
WORKER IN THAT ENTERPRISE, lN THE SAME BRANCH OF ACTIVITY.
(d)      THIS    DEFINITION    EXCLUDES    CERTAIN    FORMS    OF    EMPLOYMENT   WHICH
ALTHOUGH    REFERRED   TO   AS   PART-TIME   WORK,   ARE    IN    PARTICULAR,
INTERMITTENT EMPLOYMENT, OR CASES WHERE HOURS OF WORK HAVE BEEN
TEMPORARILY   REDUCED   FOR   ECONOMIC,   TECHNICAL   OR   STRUCTURAL
REASONS.


PART-TIME  VVORK  MAY  TAKE   DIFFERENT  FORMS   DEPENDING   ON  THE  AGREED
HOURS OF WORK IN A DAY, THE DAYS OF \/VORK IN A VVEEK OR OTHER REFERENCE
PERIODS.    IN    THE    PHILIPPINES,    HO\/VEVER,    THE    TVVO    MOST    COMMON    AND
ACCEPTABLE  FORMS ARE  FOUR (4)  HOURS WORK PER DAY AND VVEEKEND WORK
OR T\/\/O (2) FULL DAYS PER \/VEEK.  (new)
Art. 64. Normal Hours of Work. The normal hours of work of any employees shall not exceed
eight (8) hours a day.
Health   personnel   in   cities   and   municipalities   with   a   population   of  at   least   one   million
(1,000,000) or in hospitals and clinics with a bed capacity of at least one hundred (100) shall
hold regular office hours for eight (8) hours a day, for five (5) days a week, exclusive of time
for meals, except where the exigencies of the service require that such personnel work for six
(6)  days  or  fortyreight  (48)  hours,   in  which  case,  they  shall  be  entitled  to  an  additional
compensation of at least thirty percent (30%) of their regular wage for work on the sixth day.
For  purposes  of  this  Article,  "health  personnel"  shall  include  resident  physicians,  nurses,
nutritionists,   dietitians,   pharmacists,   social   workers,   laboratory  technicians,   paramedical
technicians,  psychologists,  BIRTH  attendants,  HEALTH  CARE  PROVIDERS  and  all  other
hospital, ef clinic OR HEALTH CENTER personnel.  (83a)
Art. 65.  Hours Worked.  Hours worked shall include (a) all time during which aft employees
is ARE required to be on duty or to be at a prescribed workplace; and (b) all time during which
an employees is ARE suffered or permitted to work.
Rest periods of short duration during working hours.OR COFFEE BREAKS OF FROM  FIVE
(5) TO TVVENTY (20) MINUTES shall be counted as hours worked.  (84a)
iHisiL-EE±eiFEijH!him:±|E
regular meals.  (85a)
Art.  67.  Nighti5hift Differential.   Every Employees shall  be paid a  night shift differential of
not less than ten percent (10%) of his THEIR regular wage for each hour of work performed
between ten o'clock in the evening and six o'clock in the moming. (86a)
Art. 68. Overtime Work.  Work may be performed beyond eight (8) hours a day provided that
the employees is ARE paid for the overtime work,  an additional compensation equivalent to
his  THEIR  regular wage  plus  at  least  twenty-five  percent  (25%)  thefeef.  Work  performed
beyond  eight  (8)  hours  on  a  holiday  or  rest  day  shall  be  paid  an  additional  compensation
equivalent to the  rate of the first eight (8)  hours on  a  holiday or rest day  plus at  least thirty
percent (30%) thereof.  (87a)
Art. 69. Undertime Not Offset by Overtime. Undertime work on any partioular day shall not
be offset by overtime work on  any other day.  Permission  given to tl]e employees to go on
leave  on  some  other  day  of  the  week  shall  not  exempt  the  employers  from  paying  the
additional compensation required in this Chapter. (88a)
Art. 70. Emergency Overtime Work. Any Employees may be requirecl by the employers to
perform overtime work in any of the following cases:
(a)      When the country  is at war or when  any other national  or local  emergency  has  been
declared  by  the  National  ^08embly  or  the  Chief  Executive  CONGRESS  OR  THE
PRESIDENT OR THE LOCAL CHIEF EXECUTIVE;


tt])      When it is necessary to prevent loss of life or property or in case of imminent danger to
public safety due to an actual or impending emergency in the locality caused by serious
accidents, fire, flood, typhoon, earthquake, epidemic, or other disaster or calamrty;
(c)      When there is urgent work to be performed on machines,  installations, or equipment,  in
order to avoid serious loss or damage to the employer or some other cause of similar
nature;
(d)     When the work is necessary to prevent loss or damage to perishable gcods; and
{e}     Vvhere  the  completion  or  continuation  of the  work  started  before  the  eighth  hour  is
necessary to prevent serious obstruction or prejudice to the business or operations of
the employerT; AND
(f)       \/VHEN  OVERTIME  WORK  IS  NECESSARY TO AVAIL  OF  FAVORABLE WEATHER
OR  ENVIRONMENTAL  CONDITIONS  VVHERE  PERFORMANCE  OR  QUALITY  0F
WORK IS DEPENDENT THEREON.
PREGNANT OR NURSING \/VOMEN SHOULD NOT BE OBLIGED TO RENDER OVERTIME
WORK  IF  A  MEDICAL  CERTIFICATE  DECLARES  SUCH  VVORK  TO  BE  INCOMPATIBLE
VVI" THEIR PREGNANCY OR NURSING.
AflyueEmployees  required  to  render  overtime  work  under  this  Article  shall  be  paid  the
additional compensation required in this Chapter.  (89a)
Art.  71.  Computation  of Additional  Compensation.  For purposes  of computing  overtime
and  other  additional  remuneration  as  required  by  this  Chapter,  the  "regular  wage"  of  an
employee shall include the cash wage only, without deduction on account of facilities provided
by the employer.  (90)
Chapter 11
WEEKLY REST PERIODS
Art. 72. Right to Weekly Rest Day.
(a)      lt Stall.pe t±P.£.rty of evef]f employersT.whether operating for profit or notTto  provide
pach o£Pie_T_H.El.R _employees_a rest period of flot less than twenty four (21) cons.eouthe
hens ONE DAY after every six (6) consecutive normal work days.
Cb)      The  employers   shall  determine  and   schedule  the  weekly  rest  day  of  his  THEIR
employees subject to collective bargaining agreement OR,  lN  ITS ABSENCE,  to such
rules and regulations as the Secretary of Labor and Employment SOLE may p+ovide.
Eel,A,Je`,Jer,  th,e  Employers shall  respect the  preference of employees as to their weekly  rest
day when such preference is based on religious grounds. (91a)
Art. 73. When Employers May Require Work on a Rest Day. Ibe Employers may require
his THEIR employees to work on any day:
(a)      ln  case  of actual  or  impending  emergencies  caused  by  serious  accident,  fire,  flood,
typhoon,  earthquake,  epidemic or other disaster or calamfty to prevent loss of life and
property, or imminent danger to public safety;
tb)      In cases of urgentworkto be performed on the machinery, equipment, or installation, to
avoid serious loss which the employer would otherwise suffer;
GTh+¥.:?tc°±::nb=rri?`,TT='e¥L=g=?j`'rTec::`rt:i:e:?h:er=:::::::::==Ste.rces,`,A,'heretheeEple3Fef
(c)      To prevent loss or damage to perishable goods; OR
d. Whp_rg {P?_n.e{Tre_ of,tpo.York req,uiree cqntinuou,e operati8ne and the ctoppago of work may


(d)      VVHEN  THE  WORK  IS  NECESSARY  TO  AVAIL  OF  FAVORABLE  \/VEATHER  OR
ENVIRONMENTAL CONDITIONS VVHERE PERFORMANCE OR QUALllY OF V\/ORK
IS DEPENDENT THEREON.
PREGNANT OR  NURSING VVOMEN  SHOULD  NOT  BE  OBLIGED TO WORK ON A REST
DAY IF A MEDICAL CERTIFICATE DECLARES SUCH WORK TO BE INCOMPATIBLE VVITH
THEIR PREGNANCY OR NURSING.  (92a)
Art. 74. Compensation for rest day or Holiday Work OR SUNDAY.
(a)      \/Vhere an employees is ARE made or permitted to work on his THEIR scheduled rest
day, be THEY shall be paid an additional compensation of at least thirty percent (30%)
of   his   THEIR   regular   wage.   An   employee   shall   be   entitled   to   such   additional
compensation for work performed on Sunday only when it is his THEIR established rest
day.
Cb)      \/Vhen  the  nature  of the work  of the  employees  is  such  that  h.e  has  THEY  HAVE  no
regular workdays and no regular rest days can be scheduled, be THEY shall be paid an
additional compensation of at least thirty percent (30%) of his THEIR regular wage for
work performed on Sundays.
c. Work performed on any special holiday Shall be paid an additional compensation of at lea6t
thirty percent (30%) of the regular wage of the employee. Vvhere Ouch holiday work falls
on the employee'e Scheduled rest day, he Bhall be entitled to an additional compensation
of at least fifty per cent (50%) of his regular wage.
(c)      WORKERS   VVHO   PERFORM   VVORK   ON   ANY   SPECIAL   HOLIDAY,   \/VHETHER
DECLARED  NATIONALLY OR  LOCALLY,  SHALL  BE  PAID THEIR  REGULAR  DAILY
WAGE  AND AN  ADDITIONAL  COMPENSATION  OF AT  LEAST THIRTY  PERCENT
(30%) OF THEIR REGULAR WAGE.
Vvhere the collective bargaining agreement or other applicable employment contract stipulates
the payment of a higher premium pay than that prescribed under this Article, the employers
shall pay such higher rate. (93a)
Chapter Ill
HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES
Art. 75. Right to Holiday Pay.
(a)      E¥eryworkers shall be paid hisTHEIR regular daily wage during regular holiday, except
in  retail  and  service  e8tabli6hmentc  regularly  employing  le68  than  ten  (10)  worker6
UNLESS   THEY  ARE   WORKERS   OF   NON€OVERNMENTAL   ORGANIZATIONS
EMPLOYING LESS THAN TEN (10) VVORKERS.
q])      The  employer  may  require  an  employee  to  work  on  any  holiday  but  such  employee
EMPLOYEES    \/VHO    WORK    ON    ANY    REGULAR    HOLIDAY    shall    be    paid    a
compensation equivalent to twice bjs Tl-1EIR regular rate; and
(c)      WORK PERFORMED ON ANY SPECIAL HOLIDAY SHALL BE PAID AN ADDITIONAL
COMPENSATloN OF AT LEAST THIRTY PERCENT (30%) OF THE REGULAR WAGE
OF THE EMPLOYEE. \/VHERE SUCH HOLIDAY WORK FALLS ON THE EMPLOYEES'
SCHEDULED   REST   DAY,   THEY   SHALL   BE    ENTITLED   TO   AN   ADDITIONAL
COMPENSATION   0F  AT  LEAST  FIFTY  PERCENT  (50%)   OF  THEIR   REGULAR
WAGE.
(d)      As  used  in  this Article,  "holiday"  includes  New Year's  Day,  Maundy  Thursday,  Good
Friday,  the  ninth  of April,  the  first  of May,  the  twelfth  of June,  the  fourth  of July,  the
`\ `-` `--`1 ---` `-` ---`-_. ,  `. `-``'-` .`,   ``.`` .  _. ._  `. ``. `._`. `  -.----.. `_-`   _. `_  \. '+.  +,~\,1-,  +*+,\,,=a, ,\*\+,\^
by law for holding a general election "HOE/DAYS" ARE THE REGULAR AND SPECIAL
HOLIDAYS AS PROVIDED UNDER EXISTING LA\/VS.  (94a)


CHAPTER IV
SERVICE INCENTIVE LEAVE
Art. 76. Service Incentive Leave,
(a)     Every  Employees  who has  HAVE  rendered  at  least  one  (1)  year of service  shall  be
entitled to a yearly service incentive leave of five (5) days with pay.
(b)      This  provision  shall  not  apply  to  those  who  are  already  enjoying  the  benefit  herein
provided, AND those enjoying vacation leave with pay of at least fie TEN (10) days and
lL  _  _  _       _  ___    _  I                     1     .,,,,,
(c)¥;:#g;=`:::::::::::;::i:::::::::;::i
CHAPTER V
SERVICE CHARGES
Art.  77.  Service  Charges. All  service  charges  collected  by  hotels,  restaurants  and  similar
establishments  shall  be  distributed  at the  rate  of eighty-five  percent  (85%)  for all  covered
employees and fifteen percent (15%) for management. The share of the employees shall be
equally  distributed  among  them.  In  case  the  service  charge  is  abolished,  the  share  of the
covered employees shall be considered integrated in their wages.
THE SHARES REFERRED TO  IN THIS ARTICLE SHALL BE  DISTRIBUTED AND PAID TO
THE EMPLOYEES NOT LESS THAN ONCE EVERY TVVO (2) WEEKS OR T.WICE A MONTH
AT INTERVALS NOT EXCEEDING SIXTEEN (16)  DAYS.  (96a)
CHAPTER VI
FACILITIES
ftFhz:;dFsa:i'iTe:i|,°reTs:reeTheThsea#¥..::#::f::==:I:::=:::i:a;:;gLEj#gkeESEasp"S£
REQUIRED TO:
EMPLOYERS SHALL BE
(a)      Provide seats pfepef for women woRKERs and permit them to use such seats when
they are free from work and during working hours, provided they can perform their duties
in this position without detriment to efficiency;
(b)     Pe  establish  PROVIDE  separate  toilet  rooms  and  lavatories  for  men  and  women
WORKERS  AND  WHERE  APPROPRIATE,   GENDER-NEUTRAL  TOILET   ROOMS
(:)p=RAE:::viE§|E±sii|§iE§D`§E§iD§Ei|E|jEI=L:iIEiEEE§EEEjEE:EEEEEi=|E=|:EDE§[§:jL:::I;EIEE;I:EEI:;::I:I:DE:RD::ER:,:I:E:
(130a)


Title  11
WAGES
Chapter I
PRELIMINARY MATTERS
Art. 79. Definitions. As used in this Title:
(a)      "Person"  means  an  individual,   partnership,  association,  corporation,  business  trust,
legal representatives, or any organized group of persons.
(b )    :'nETei:°tYoen' ' {.: C:und eesmap| :ypeeers::da cstinai , djj:::+'dye° ri:=±:;::::::::::::=:::::i:;:==::::;gg:
=u|¥_j`':i:i:|n?,eTjp,ip9:_r=T:Tie.i.it.i:STg!I_g9v_e_mmentro\^inedorcontrolledcorporatjon;a-n-d
institutions WITHOUT ORIGINAL CHARTER,  as well  as  non-profit  private  institutions,
or organizations.
(c)      "Emp/oyee"  includes  any  individual  employed  by  an  employer.  TO ASCERTAIN THE
EXISTENCE  OF  AN   EMPLOYER-EMPLOYEE   RELATIONSHIP,   THE   FOUR-FOLD
TEST  SHALL APPLY,  TO  WIT:  (1)  THE  SELECTION  AND  ENGAGEMENT  OF  THE
EMPLOYEE;  (2) THE  PAYMENT OF WAGES;  (3)  THE  POWER 0F  DISMISSAL;  (4)
THE  POWER TO CONTROL THE  EMPLOYEE'S CONDUCT WHERE THE  PERSON
FOR  WHOM   THE   SERVICES  ARE   PERFORMED   RESERVES   THE   RIGHT  TO
CONTROL NOT ONLY THE END ACHIEVED, BUT ALSO THE MANNER AND MEANS
USED TO ACHIEVE THAT END.   (DOLE D.O. No.147-2015)
(d)      "Agr/.cu/fure"  includes  farming  in  all  its  branches  and,  among  other  things,  includes
cultivation and tillage of soil, dairying, the production, cultivation, growing and harvesting
of any agricultural and horticultural commodities, the raising of livestock or poultry,  and
any practices performed  by a farmer on a farm as an  incident to or in conjunction with
such farming operations, but does not include the manufacturing or processing of sugar,
coconuts, abaca, tobacco, pineapples or other farm products
(e)      "Emp/dy' iEei'jdes MEANs to suffer or permit to work.
(f)       "Wage"  paid  tc  an`,'  emp!c`,'ee  s±al+  means  the  remuneration  or  earnings,  however
designated, capable of being expressed in terms of money, whether fixed or ascertained
on  a time, task,  piece,  or commission  basis,  or other method of calculating the same,
which is payable by an emp!c`,'er to an employee BY AN EMPLOYER under a written or
unwritten contract of employment for work done or to be done, or for services rendered
or to  be  rendered  and  includes  the fair and  reasonable  value,  as  determined  by the
Seerotary„ o!  Lqppr  .a.nd   .Eap!o`,'meE±  SOLE,   of  board,   lodging,   or  other- -fa-ciliti:;
customarily furnished  by the  employer to the  employee.  "Fa/.r and reasonab/e  va/ue"
shall not include any profit to the employer, or to any person affiliated with the employer.
(97a)
Chapter 11
MINIMUM WAGE RATES
Art.  80.  P`egicr,aLNATIONAL Minimum Wages. The  NATIONAL minimum wage  rates for
#:s::L:#A:Gtn:o:ns:a:p:::::rug:due:;Ti|o:yrvfi53:#i|::i#E:=:;:=::::
Art.  81.  Prohibition  against Elimination  or Diminution  of Benefits.  Nothing  in this  Book
shall be construed to eliminate or in any way diminish supplements, eF AND other employee
benefits being enjoyed at the time of promulgation of this Code.  (100a)
Art- 82. Pay.in?nt by RpSults. .The S?cl:gtary of Labor and Employment-SOLE shall regulate
the payment of wages  by results,  including  pakyaw,  piecework,  and other non-time work,  in
order to ensure the payment of fair and reasonable wage rates,  preferably through time and


motion    studies    or   in    consultation   with    representatives   of   workers'   and    employers'
organizations.  (101a)
Chapter Ill
PAYMENT OF WAGES
Art. 83. Forms of Payment.  No employer shall pay the wages of an employee by means of
promissory  notes,  vouchers,  coupons,  tokens,  tickets,  chits,  or any  object  other than  legal
tender, even when expressly requested by the employee.
Payment of wages  by  check or money order OR  DIGITAL  MONEY  REMITTANCE  shall  be
allowed when such manner of payment is customary on the date of effectivfty of this Code, or
issnu=Sbsya?hebe#P8L¥:nraapsprs:Ppni:i:erdi:I:tjt|3et&i%
bargaining agreement.  (102a)
Art 84. Time of Payment. Wages shall be paid at least once every two (2) weeks or twice a
month  at  intervals  not  exceeding  sixteen   (16)  days.   If  on  account  of  force  majeure  or
circumstances beyond the employer's control,  payment of wages on or within the time herein
provided  cannot  be  made,  the  employer shall  pay the wages  immediately  after such force
majeure or circumstances have ceased. No employer shall make payment with less frequency
than once a month.
The payment of wages of employees engaged to perform a task which cannot be completed
in  two  (2) weeks shall  be  subject to the following  conditions,  in the  absence  of a  collective
bargaining agreement or arbitration award:
(1)      That payments are made at intervals not exceeding sixteen  (16) days,  in  proportion to
the amount of work completed;
(2)      That final settlement is made upon completion of the work.  (103)
Art.  85.  Place  of  Payment.  Payment  of  wages  shall  be  made  at  or  near  the  place  of
undertaking, except as otherwise provided by such regulations as the Sefcretar,' cf Labs:€iacl
Emp!c`,'rr=en± SOLE  may  prescribe  under conditions  to ensure  greater  protection  of wages.
(104a)
Art 86. Direct Payment of Wages. Wages shall be paid directly to the workers to whom they
are due, except:
(a)  iii#o::sni:t:ef##:a;d::ut,#:n:#efnysg::Se±ch#ee;ig:C::i
under written authority given by the workers for the purpose;
Cb)      IN  CASE  OF  ECONOMIC VIOLENCE AS  DEFINED  BY SEC.  3,  PARAGRAPH  D  OF
REPUBLIC   ACT   NO.   9262,   EMPLOYERS   SHALL   PAY   THE   WAGES   OF   THE
WORKERS TO THEIR IMMEDIATE FAMILY VVITHOUT THE NECESSITY OF COURT
PROCEEDINGS.  THE  CLAIMANTS,  IF  THEY ARE ALL  OF AGE,  SHALL  EXECUTE
AN AFFIDAVIT ATTESTING TO THEIR RELATIONSHIP TO THE \/\/ORKER AND THE
FACT   THAT   THEY   ARE   MEMBERS   OF   THE   IMMEDIATE   FAMILY,   TO   THE
EXCLUSION  OF ALL OTHER  PERSONS.  IF ANY OF THE  HEIRS  IS A MINOR,  THE
AFFIDAVIT  SHALL  BE  EXECUTED  ON  THE  MINOR'S  BEHALF  BY  THE  NATURAL
GUARDIAN  OR  NEXT-OF-KIN.  THE  AFFIDAVIT  SHALL  BE  PRESENTED  TO  THE
EMPLOYER   VVHO   SHALL   MAKE   PAYMENT  THROUGH   THE   SOLE   OR   THEIR
REPRESENTATIVE.   THE   REPRESENTATIVE   OF   THE   SOLE   SHALL   ACT   AS
REFEREE   IN   DIVIDING  THE  AMOUNT  PAID  AMONG  THE   MEMBERS   OF  THE
FAMILY.  THE   PAYMENT  OF  WAGES   UNDER  THIS  ARTICLE  SHALL  ABSOLVE


EMPLOYERS  OF  ANY  FURTHER  LIABILITY  WITH  RESPECT  TO  THE  AMOUNT
PAID;  Or
® (c) Where the worker has died,  in which case, the employers may pay the wages of the
deceased worker to the heirs of the latter without the necessity of intestate proceedings.
The  claimants,   if  they  are  all   of  age,   shall   execute   an   affidavit  attesting  to  their
relationship to the deceased and the fact that they are bjs heirs, to the exclusion of all
other persons.  If any of the heirs is-a minor, the affidavit shall be executed on his THE
MINOR'S behalf by his THE MINOR'S natural guardian or next-of-kin. The affidavit shall
be presented to the employer who shall make payment through the Secretar,J cf Labs+r
and   Fmplo¥T?Pt   SOLE  or  his  THEIR   representative.   Th-e   representatiJe   of  the
a?:re_t?ry of I,abo.r qnd Erployment SO_LE shall act as referee in .dividing the amoLn-t
paid  among  the  heirs.  The  payment  of  wages  under  this  Article  shall  absolve  the
employers of any further liability with respect to the amount paid.  (105a)
Art. 87. Worker Preference in Case of Bankruptcy. In the event of bankruptcy or liquidation
of an employer's business, his workers shall enjoy first preference as regards their wages and
other  monetary  claims,   any  provision  of  law  THE  CIVIL  CODE  ON   PREFERENCE  OF
CREDIT  AND  OTHER  LAWS  to  the  contrary  notwithstanding.   Such   unpaid  wages  and
monetary claims shall be paid in full before claims of the government and other creditors may
be paid.  (110a)
Chapter lv
PROHIBITIONS REGARDING WAGES
Art. 88. Attorney's Fees.
(a)      ln   cases  of  unlawful  withholding   of  wages,   the  culpable   party  may  be  assessed
attorney's fees equivalent to ten percent (10%) of the amount of wages recovered.
(b)      Itshall be unlawfulforany person todemand oraccept, in anyjudicial, QUAsl-JUDICIAL
or administrative proceedings for the recovery of wages, attorney's fees which exceed
ten percent (100/o) of the amount of wages recovered.  (111 a)
Art.  89.  Non-Interference  in  Disposal  of  Wages.  No  employer  shall  limit  or  otherwise
interferewiththefreedomofanyemployeestodisposeofhisTHEIRwages.ILeEMPLOYERS
shall   not   in   any   manner  force,   compel,   or  oblige  his  THEIR   employees   to   purchase
merchandise, commodities or other property from any other person, or otherwise make use of
any store or services of such THE employers or any other person. (112a)
Art. 90. Wage Deduction. Ak+Employers, in big THEIR own behalf or in behalf of any person,
shall NOT make any deduction from the wages of his THEIR employees, except:
(a)      ln  cases where the workers ARE  insured with his THEIR consent by the employers,
and the deduction is to recompense the employers for the amount paid by him THEM
as premium on the insurance;
(b)      For union dues, in cases where the right of the workers orbisTHEIR union to check-off
has been recognized by the employers or authorized in writing by the individual worker
concerned;
(c)      IN  CASES  WHERE  WORKERS  HAVE  FAILED TO  PROVIDE  REGULAR  SUPPORT
TO THEIR IMMEDIATE LEGITIMATE SPOUSE AND LEGITIMATE OR ILLEGITIMATE
CHILDREN, EMPLOYERS MAY PAY THE WAGES TO THE SPOUSE AND CHILDREN
WITHOUT THE NECESsllY 0F COURT PROCEEDINGS; AND
(d)      ln  cases where the employers is ARE authorized  by law or regulations issued  by the
Seoretary of Labor and Employment SOLE.  (113a)
Art. 91. Deposits for Loss or Damage. Ne Employers shall NOT require his THEIR workers
to make deposits from which deductions shall  be made for the reimbursement of loss of or
damage  to  tools,  materials,  or  equipment  supplied  by  the  employers,  except  when  the


employers is ARE engaged in such trades, occupations or business where the CUSTOMARY
practice of making deductions or requiring deposits is a recognized one, OR AS PROVIDED
FOR  IN  THE  COLLECTIVE  BARGAINING  AGREEMENT,  or  is  necessary  or  desirable  as
determ_ined  by  the  Secretary  of  Labor  and  Employment  SOLE  in  appropriate  rules  and
regulations.
IN ANY CASE, DEDUCTIONS SHALL BE SUBJECT TO THE FOLLOVVING CONDITIONS:
(a)      THAT    THE     EMPLOYEES     CONCERNED    ARE     CLEARLY    SHOVVN     TO     BE
RESPONSIBLE FOR THE LOSS OR DAMAGE;
Cb)      THAT  THE  EMPLOYEES  ARE  GIVEN  REASONABLE  OPPORTUNITY  T0  SHOW
CAUSE VVHY DEDUCTION SHOULD NOT BE MADE;
(c)       THATTHEAMOUNTOFSUCH DEDUCTION IS FAIRANDREASONABLEANDSHALL
NOT EXCEED THE ACTUAL LOSS OR DAMAGE; AND
(d)      THAT  THE   DEDUCTION   FROM  THE  WAGES  OF  THE  EMPLOYEE   DOES   NOT
EXCEED  ll/VENTY  PERCENT  (20%)  OF  THE  EMPLOYEE'S  WAGES  IN  A  WEEK.
(114a)
Art.  92.  Withholding  of Wages  and  Kickbacks  Prohibited.  It  shall  be  unlawful  for  any
person,  directly or indirectly,  to withhold any amount from the wages of a workers or induce
him THEM to give up any part of his THEIR wages by force, stealth,  intimidation, threat or by
any other means whatsoever without the worker'8 consent. (116a)
Art. 93. Deduction to Ensure Employment. It shall be unlawful to make any deduction from
the wages Of any employees for the benefit of the employers or his THEIR representatives
or irtterrr.ec!iar,' INTERMEDIARIES as consideration of a promise of employment or retention
in employment.  (117a)
Art. 94. Retaliatory Measures. It shall be unlawful for an employers to refuse to pay or reduce
the wages and benefits, discharge or in any manner discriminate against any employee who
has filed any complaint or instituted any proceeding under this Tile OR UNDER THIS CODE
OR ANY LA\/VS or has testified OR HAS REFUSED TO TESTIFY, or is about to testify in such
proceedings.   RETALIATORY   ACTS   SHALL   INCLUDE   REFUSAL   TO   TESTIFY   VVHEN
REQUIRED,  REQUESTED,  OR DEMANDED BY AN  EMPLOYER.  (118a)
Ark 95. False Reporting. It shall be unlawiul for any person to make any statement,  report,
or record filed or kept pursuant to the provisions of this Code knowing such statement,  report
or record to be false in any material respect. (119)
CHAPTER V
CONTRACTING 0F SERVICES
Art. 96. Contractor or Subcontractor. Vvhenever an employers enters into a contract with
af}other persons for the performance of the former's work,  the employees of the contractor
and  of the  latter's  contractor,  if any,  shall  be  paid  in  accordance with  the  provisions  of this
Cede.
In  the  event  that  the  contractors  or  subcontractors  fails  to  pay  the  wages  of his  THEIR
employees in  accordance with this Code, the employers shall  be jointly and severally liable
with his THEIR contractors or subcontractors to such employees to the extent of the work
performed under the contract,  in the same manner and extent that heis TllEY ARE liable to
employees directly employed by bin THEM.
The  Secretary of Labor and  Employment SOLE may,  by appropriate  regulations,  restrict or
prohibit the  contractingrout  of labor to  protect the  rights  of workers  established  under this
Code.  In  so prohibjtjng  or restricting,  be THEY may make  appropriate  distinctions between


labor-only  contracting  and  job  contracting  as  well  as  differentiations  within  these  types  of
contracting and determine who among the parties involved shall be considered the employers
for purposes of this  Code,  to  prevent any violation  or circumvention  of any  provision  of this
Code.
There is "labor-only" contracting where the persons supplying workers to en employers does
not have substantial capital or investment in the form of tools, equipment,  machineries, work
premises,   among  others,   and  the  workers   recruited  and   placed   by  such   persons  are
performing activities which are directly related to the principal business of such employers.  In
such cases, the persons or intermediarylES shall be considered merely as" agents of the
employers who shall be responsible to the workers in the same manner and extent as if the
latter were directly employed by him THEM. (106a)
Art. 97. Indirect Employer.  The provisions of the immediately preceding article shall likewise
apply to  any  person,  partnership,  association  or corporation which,  not  being  an  employer,
contracts with an independent contractor for the performance of any work, task, job or project.
(107)
Art. 98. Posting of Bond.  Ap Employers or indirect employers may require the contractors
or subcontractors to furnish a bond equal to the cost of labor under contract, on condition that
the   bond   will   answer   for  the   wages   due   the   employees   should   the   contractors   or
subcontractors, as the case may be, fail to pay the same. (100a)
Art.  99.  Soljdary  Liability.   The provisions of existing  laws to the contrary notwithstanding,
every employers or indirect employers shall be held responsible with his THEIR contractors
or subcontractors for any violation of any provision of this Code.  For purposes of determining
the extent of their civil liability under this Chapter, they shall be considered as direct employers.
(109a)
Chapter VI
WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION
Art  100.  Creation  of National  Wages  and  Productivity  Commission.  There  is  hereby
created  a  National  Wages  and   Productivity  Commission,   hereinafter  referred  to  as  the
f?o:TOTi:Sys]::d#::asmh:|o%j::::J|n¥tt2°o;heDe?a#E:entcfL3bcr3ndEmp!cysef*iDOLE}
Art.  101.  Powers  and  Functions  of the  Commission.  The  Commission  shall  have  the
following powers and functions:
(a)      To act as the national consultative and advisory body to the president of the philippines
and Congress on matters relating to wages,  incomes and procluctivity;
Cb)      To formulate policies and guidelines on wages,  incomes and productivity improvement
at the enterprise, industry and national levels;
(c)      TO DETERMINEAND FIXTHE INDUSTRY MINIMUM WAGE RATESAND ISSUE THE
CORRESPONDING WAGE ORDERS THROUGH INDUSTRY BOARDS;
(d)      TO  RECEIVE,  PROCESS  AND  ACT  ON  APPLICATloNS  FOR  EXEMPTION  FROM
PRESCRIBED WAGE RATES AS PROVIDED BY THIS CODE;
(e)      To  prescribe  rules and  guidelines for the determination  of appropriate  minimum wage
and productivfty measures at the regional, provincial, or industry levels;
(f)       TO ESTABLISH INDUSTRY TRIPARTITE WAGES AND PRODUCTIVITY BOARDS IN
INDUSTRIES VVHERE IT DEEMS APPROPRIATE;
(g)     To  undertake  studies,  researches  and  surveys  necessary  for  the  attainment  of  its
functions and objectives, and to collect and compile GENDER-DISAGGREGATED data


and  periodically  disseminate  information  on  wages,  INCLUDING  GENDER  GAPS  IN
WAGES,  and  productivity  and  other  related  information,  including,  but  not  limited  to,
employment, cost-of-living,  labor costs,  investments and returns;
th)     I.O, I:¥iLev, Feg.i9P9LW_qge_I?Vels.  ce_t_ty  PLANS  AND  PROGRAMS  oF  the  Resie+n*
NATloNAL   INDUSTRY  Tripartite  Wages   and   Productivity   Boards  to  determine  #
vyHE.THER the.se are in accordance consistent with prescribed guideline6 and national
development plans;
(i)       To  exercise  technical  and  administrative  supervision  over  the  P`egieeal  NATIONAL
INDUSTRY Tripartite Wages and Productivfty Boards;
ti)       To   call,   from   time  to  time,   a   national   tripartite   conference   of  representatives   of
government, workers and employers for the consideration of measures to promote wage
rationalization and productivfty;  and
0{)     To exercise such powers and functions as may be necessary to implement tbis" ITS
MANDATE UNDER THIS CODE.
Tie .Co_T.Ti.¥ion sr.all pe compesed of the Secretary of Labor and Employnut SoLE as ex-
officio CHAIRman, the Director€eneral of the National Economic and Development Authority
(NEDA)   as   ex-officio   vice€HAIRmaf+,   and   two   (2)   members   each   from   workers'   and
employers'  sectors:  PROV/OEO,  THAT  ONE  OF  THE  MEMBERS  OF  EACH  WORKERS'
AND  EMPLOYERS'  REPRESENTATIVES  SHALL  BE  A \/\/OMAN.    THE  WORKERS  AND
EMPLOYERS'  REPRESENTATIVES  shall  be  appointed  by the  President of the  Philippines
Hpo.n  re_apmTend_ation  of the Secretary of Labor and  Employment SOLE to be made -o.n the
basis of the list of nominees submitted by the workers' and employers' sectors,  respectively,
and who shall serve for a term  of five  (5) years. The  Executive  Director of the Commission
shall also be a member of the Commission.
The Commission shall be assisted by a Secretariat to be headed by an Executive Director and
two (2) Deputy Directors, who shall be appointed by the President of the Philippines, upon the
recommendation of the Secretary of Labor and Employment SOLE.
The Executive Director shall have the same rank,  salary,  benefits and other emoluments as
that  of a  Department Assistant  Secretary,  while the  Deputy  Directors  shall  have the  same
rank, salary, benefits and other emoluments as that of a Bureau Director. The members of the
Commission  representing  labor and  management  shall  have  the  same  rank,  emoluments,
allowances  and  other  benefits  as  those  prescribed   by  law  for  labor  and   management
representatives in the Employees' Compensation Commission.  (121 a)
REREeEEei=iiFieiHilE-ieiii.iiT[i-i.FF!EEEEEiEieie.iiFEeEiFE
WAGES     AND     PRODUCTIVITY     BOARDS     IN     INDUSTRIES     \/VHERE     IT     DEEMS
APPROPRIATE, HEREINAFTER REFERRED TO AS THE NATIONAL INDUSTRY BOARDS.
The   Commission   shall   determine   the   offices/headquarters   of  the   respective   P`egicna!
INDUSTRY Boards.
The  F2egicr:a!  INDUSTRY  Boards  shall  have  the  following  powers  and  functions  in  their
respective territon.al juri6dictionc LI NDUSTRIES:
(a)      To develop  plans,  programs and  projects relative to wages,  incomes and  productivfty
improvement for their respective regions INDUSTRIES;
a.)      To  determine  and  fix  minimum  wage  rates  applicable  in  their  regions,  provinco6  oF
industries therein  and to  issue  the  corresponding  wage  orders,  subject to  guidelines
issued by the Commission;


(c)      To  undertake  studies,  researches,  and  surveys  necessary for the  attainment  of their
functions, objectives and programs, and to collect and compile data on wages, incomes,
productivfty and other related information and periodically disseminate the same;
(d)     To coordinate with the other p`egicr,a! INDUSTRY Boards as may be necessary to attain
the policy and intention of this Cede;
To receive, procec8 and act on applications for exemption from prescribed wage ratce as may
be provided by law or any Wage Order and
(e)      To  exercise  such  other powers  and functions  as  may  be  necessary to carry out their
mandate under this Code.
howovb]+,-Tha-tthe-Re-6i6Lai-Bo-era;-:i-a`ii'h-;v-e't';;h-riiri'i';'uriivi-c'i-6;-oJv-;'r-t-i;'-:;io.n'@i'6-fflT£
of the Department of Labor and Employment with respect to the implementation of Said plane,
programs and projects.
Each   P`esicrta!   INDUSTRY   Board   shall   be   composed   of  the   Regional   Director  of  the
Department of Labor and  Employment a8  chairman,  the  Regional  Directors  of the  National
Economic  and  Development Authorty  and  the  Department  of Trade  and  Industry  ac  vice
chairmen  and  A  CHAIR  VVHO  MUST  SERVE  FULL-TIME  FOR  A  TERM  OF  THREE  (3)
YEARS.    THE   CHAIR   MUST   HAVE   AT   LEAST   FIVE   (5)   YEARS'   EXPERIENCE   IN
INDUSTRIAL   RELATloNS.   IN   ADDITION,   two   (2)   members   each   from   workers'   and
employers'  sectors  OF  THE   INDUSTRY  CONCERNED  who  shall   be  appointed  by  the
President  of  the   Philippines,   upon  the   recommendation  of  the  Seoretary  of  Labor  and
Employment SOLE, to be made on the basis of the list of nominees submitted by the workers'
and employers' sectors, respectively, and who shall serve for a term of five THREE (3) years.
Each  P`egicr.a!  INDUSTRY  Board  to  be  headed  by  its  chairmaf`  shall  be  assisted  by  a
Secretariat.  (122a)
Art.103. Wage Order. Vvhenever conditions so warrant, the Regional  Board COMMISSION
AND  INDUSTRY  BOARDS  shall  investigate and study all  pertinent facts;  and  based  on the
standards and criteria herein prescribed, shall  proceed to determine whether a Wage Order
should  be  issued.  Any  such  Wage  Order  shall  take  effect  after fifteen  (15)  days  from  its
complete publication in at least one l-\^ro (2) newspapers Of general circulation in the region
AND     A     COPY     SHALL     BE     DEPOSITED     VVITH     THE     OFFICE     OF     NATloNAL
ADMINISTRATIVE REGISTER (ONAR).
In the performance of its wagerdetermining functions, the Regional Board COMMISSION AND
INDUSTRY    BOARDS    shall    conduct    public    hearings/consultations,    giving    notices    to
employees' and employers' groups, provincial, city and municipal officials and other interested
parties.
Any party aggrieved by the Wage Order issued by the Regional Board INDUSTRY BOARDS
may appeal such order to the Commission within ten (10) calendar days from the publication
of such  order.  It shall  be  mandatory for the  Commission to decide  such  appeal within  sixty
(60)   calendar  days  from   the  filing   thereof.   WAGE   ORDERS   ISSUED,   AFFIRMED   OR
MODIFIED BY THE COMMISSION SHALL NOT BE APPEALABLE.
The filing of the appeal does not stay the order unless the person appealing such order shall
file  with  the   Commission,   an   undertaking  with   a  surety   or  sureties  satisfactory  to  the
Commission for the  payment to the  employees  affected  by the  order of the  corresponding
increase, in the event such order is affirmed. (As amended by Republic Act No. 6727, June 9,
1989)  (123a)


Art.104. Standards/Criteria for Minimum Wage Fixing. The regicrTa+ NATIONAL minimum
wages to  be established  by the  Regional  Boards  COMMISSION  OR  INDUSTRY  BOARDS
shall be as nearly adequate as is economically feasible to maintain the minimum etandard8 Of
#¥€8ffsffiuff,rghrfu[e8`LhAfuffl#:EEy8EdAgeLi:i`::a:':::;rG`Egw°itfhtjTet:Fpfr:%oRrfu=fL't=:
national  economic  and  social  development  program.  In  the  determination  of such  national
ni!nimuT wage, the Region_a_I  Beard_8 COMMISSION OR INDUSTRY BOARDS shall,  among
other relevant factors, consider the following:
(a)      The demand forliving wages;
q])     Wage adjustment vis-a-vis the consumer price index;
(c)      The cost of living and changes or increases therein;
(d)      The needs of workers and their families;
The need to induce industries to invest in the countryside;
(e)      Improvements in standards of living;
(f)       The prevailing wage levels;
(g)      Fair return of the capital invested and capacity to pay of employers;
th)      Effects on employment generation and family income; an€l
(i)       The equitable distribution of income and wealth along the imperatives of economic and
social development; AND
0)       REGIONAL CIRCUMSTANCES,  lFWARRANTED.
THE  MINIMUM  WAGE  ISSUED  BY AN  INDUSTRY  BOARD  MAY  NOT BE  UNIFORM  FOR
THE  INDUSTRY IF WARRANTED BY REGIONAL CIRCUMSTANCES.
The wages  prescribed  in  accordance with the  provisions  of this lltle  shall  be the  standard
RE.iHiiEiHri-i-!Ei!iiiEiERE-i-u-TeEiE.i-Eg-Ee.E-E-.¥iEii-!L,EiEeEiiEii
Arpy   Persons,   ccmpan`,'   COMPANIES,   corporations,   partnerships   or  any   other  ectfty
ENTITIES engaged in business shall file and  register annually with the Commission and the
Ngtional  Statictice Offle9_PHILIPPINE  STATISTICS AUTHORITY,  an  itemized  listing  of their
labor component, specifying the names of their workers and employees below the managerial
level,  including  !earTters,  apprentices  and  disabled/handicapped workers VVITH  DISABrLITY
who   were   hired   under  the   terms   prescribed   in   the   employment   contracts,   and   their
corresponding salaries and wages.
Vvhere the application of any prescribed wage increase by virtue of a law or wage order issued
by the  Regional  Board COMMISSION  OR  INDUSTRY  BOARD  results  in  distortions  of the
wage  structure  within  an  establishment,  the  employers  and  the  unions  shall  negotiate  to
correct the distortions. Any dispute arising from wage distortions shall be resolved through the
grievance procedure under their collective bargaining agreement and, if it remains unresolved,
through voluntary arbitration.  Unless otherwise agreed by the parties in writing, such dispute
shall be decided by the voluntary arbitrators within ten (10) calendar days from the time said
dispute was referred to voluntary arbitration.
In cases where there are no collective agreements or recognieed labor unions, the employers
and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be
settled through the  National  Conciliation  and  Mediation  Board  and,  if it remains  unresolved
after ten (10) calendar days of conciliation,  shall be referred to the appropriate branch of the
National  Labor Relations  Commie8ion  (NLRC)  COURT OF  LABOR  RELATIONS.  It shall  be
mandatory for the NtRe COURT 0F  LABOR  RELATIONS to conduct continuous  hearings


and decide the dispute within twenty (20) calendar days from the time said dispute is submitted
for compulsory arbitration.
The  pendency  of  a  dispute  arising  from  a  wage  distortion  shall  not  in  any  way  delay  the
applicabilfty of any inorease in prescribed wage rates pursuant to the provisions of law or wage
order.
As used herein, a wage distortion shall mean a situation where an inorease in prescribed wage
rates results in the elimination or severe contraction of intentional quantitative differences in
wage  or  salary  rates  between  and  among  employee  groupe  in  an  establishment  as  to
effectively obliterate the distinctions embodied in such wage structure based on skills,  length
of service, or other logical bases of differentiation.
All workers paid by result,  including those who are paid on piecework, takay,  pakyaw or task
basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a day,
or a proportion for working less than eight (8) hours.
All recognized [earnerehip and apprenticeship agreements shall be considered automatically
medified  insofar as their wage clauses are concerned to reflect the  prescribed wage  rates.
(124a)
ART   105.   EXEMPTION.   OTHER   THAN   THOSE   EXEMPTED   BY   THIS   CODE,   ALL
WORKERS SHALL BE PAID THE APPLICABLE NATIONAL MINIMUM WAGE.
FINANCIALLY  DISTRESSED  EMPLOYERS  MAY  APPLY  FOR  EXEMPTION  FROM  THE
NATIONAL   MINIMUM   WAGE   VVITH    IHE   COMMISSION    BUT   ONLY   FOR   A   NON-
EXTENDIBLE   MAXIMUM   PERIOD   OF   THREE   (3)   YEARS   FOR   EVERY   INCREASE
PROVIDED BY WAGE ORDER.
IN THE EVENT THAT APPLICATIONS FOR EXEMPTIONS ARE DENIED, THE COVERED
EMPLOYEES SHALL RECEIVE THE APPROPRIATE DIFFERENTIAL PLUS INTEREST OF
ONE   PERCENT   (1%)   PER   MONTH   RETROACTIVE   TO  THE   EFFECTIVITY   OF   THE
APPROPRIATE WAGE ORDER.  (new)
Art.  106.  Freedom  to  Bargain.  No  wage  order  shall  be  construed  to  prevent workers  in
particular  firms  or  enterprises  or  industries  from   bargaining  for  higher  wages  with  their
respective employers. (125)
Art.   107.   Prohibition   against   Injunction.   No   preliminary   or   permanent   injunction   or
temporary restraining  order may be  issued  by any court,  tribunal  or other entity against any
proceedings before the Commission or the P`egicr,a! INDUSTRY BOARDS.  (126a)
Art.   108.   Non-Dlmlnution  of  B®n®fits.   No  wage  order  issued   by  any  FRegional   Board
INDUSTRY BOARD shall provide for wage rates lower than the statutory minimum wage rates
prescribed by Congress. (127a)
Chapter VII
ADMINISTRATION AND ENFORCEMENT
Art.109. VIsltorial and  Enforc®mont Power.  (a) The Seoretary of Labor and  Employment
SOLE or lie TllEIR duly authorized representatives,  including labor regulation officers,  shall
have access to employer's records and  premises at any time of the day or night whenever
work is being undertaken therein, and the right to copy therefrom, to question any employee
and investigate any fact, condition or matter which may be necessary to determine violations


or which may aid in the enforcement of this Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
(b)  Notwithstanding the provisions of Articles 429 and 24Z  110 AND 210 of this Code to the
contrary,  and in cases where the relationship of employerremployee still exists, the SOLE or
he THEIR duly authorized representatives shall have the power to issue compliance orders
to give effect to the labor standards provisions of this Code and other labor legislation based
on the findings  of labor employment and enforcement officers or industrial  safety engineers
made   in  the  course  of  inspection.   The  Secre±ai=]f  SOLE  or  his  THEIR  duly  authorized
representatives shall issue writs of execution to the appropriate authority for the enforcement
of  their  orders,  except  in  cases  where  the  employer  contests  the  findings  of  the  labor
employment  and  enforcement  officer  and  raises  issues  supported  by  dooumentary  proofs
which  were   not  considered   in  the  course  of  inspection.   VVHERE  AN   ISSUE   ON   THE
EXISTENCE  OF  AN  EMPLOYER-EMPLOYEE  RELATIONSHIP  IS  RAISED,   HOWEVER,
THE   SOLE   HAS   THE   POVVER  TO   DETERMINE   IN   THE   INTERIM   THE   EMPLOYER-
EMPLOYEE  RELATIONSHIP  AND  FROM  THERE  TO  DECIDE  VVHETHER  OR  NOT  TO
ISSUE COMPLIANCE ORDERS,  SUBJECT TO JUDICIAL REVIEW.
An  order  issued  by  the  duly  authorieed  representative  of  the  Secretar,'  cf  ILebo,rLed
Ei¥p!c`,Jrr,efi± SOLE under this Article may be appealed to the latter. In case said order involves
a  monetary award,  an appeal by the employer may be perfected only upon the posting of a
cash or surety bond issued by a reputable bonding company duly accredited by the Seeetary
ef IL.abcr er:d Err,p!c`,',in+eE=± SOLE in the amount equivalent to the monetary award in the order
appealed from.
(c) The Secretar,' cf Lc:bcr and  Emp!c`,'mer:i SOLE  may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-compliance
with the law or implementing  rules and regulations poses grave and imminent danger to the
hearth and safety of workers +pi±e `,I,`crEr`ptaee OR TO OTHER PERSONS. Within twenty-four
(24) hours,  a hearing shall be conducted to determine whether an order for the stoppage of
work or suspension of operations shall  be lifted or not.  In case the violation  is attributable to
the  fault  of the  employer,  be  THE  EMPLOYER  shall  pay  the  employees  concerned  their
salaries, oFi^rages AND ALL OTHER BENEFITS during the period of such stoppage of work
or suspension of operation.
(d) lt shall be unlawiul for any person or entfty to obstruct,  impede, delay or otherwise render
:nuet#:#tvftr::r::deenfat?vfetsh:ss¥#:::i::=::==:g::;::;::a::dLeErt°hr,s¥rtTCTeF'aRngun':
infefief  LOWER  court or entity  shall  issue temporary or permanent  injunction  or restraining
order or otherwise assume jurisdiction over any case involving the enforcement orders issued
in accordance with this Article.
(e) Any  government employee  found  guifty  of violation  of,  or abuse  of authority,  under this
Article shall,  after appropriate administrative investigation,  be  subject to summary dismissal
from  the  service,  VVITHOUT  PREJUDICE  TO  THE  FILING  OF  APPROPRIATE  CRIMINAL
AND CIVIL CASES.
tEomp#==%r:t£[,i,cE6L€b&rpaEn3,oEgp6cE,,mFf;+ET5a;`fT7E:::a;F::F::::;==:::+::::::=:::::::
employment records afs ma`,' be necessary in aid of hisTHE visitorial and enforcement powers
under this Code OF THE SOLE. (128a)
Art.110. Recovery of Wages, Simple Money Claims and Other Benefits. Upon complaint
gf   eny    inte_re_sted    party,    the    Regional    Director   of   the   D®partmeut   of   Labor.ed
Emp!c`,'mentDOLE  or  any  of  the  duly  authorized  hearing  officers  of  the  Department  is


empowered, through summary proceeding and after due notice, to hear and decide any matter
¥,£E£;:a:iss::::..oil:rm:!g;er::!':i::.:.:ag,i.b.e!i-e:i;::,.,,.-i;eci:i:::e.:ca:
complaint dces  not include  a  claim  for reinstatement:  Provt.ded further,  That the  aggregate
rho.nf¥^C|ai`mi .O±.e|C,h_em_Plgyp_e. .er_ Pp_ueg±elpef  dces  not  exceed  Five thou6an'd' p6ds
P5,000.09}  ll/VI=NTY-FIVE  THOUSAND  PESOS  (P25,000.00).  The  Regional  Director  or
hearing officer shall decide or resolve the complaint within thirty (30) calendar days from the
date  of the  filing  of the  same.  Any  sum  thus  recovered  on  behalf  of any  employees  er
::=:#e?uoiutah:+i:=:::a;:::::±£::±=±::±i:aaz::;;'8eoTEitoar#eunEfyi;::fg[r:Tgr
9|r:qly_t_oLt_h.een|PloyeespThp.u.8_?PelpeFcorce.med.Any_suchsumnotpaidtot'heemployees
Pr hpup?helper__PPC?use he THEY cannot be located  after diligent an`d  reasonable .eff6rt to
g#e6L`E)t.y3irsu,£a:lxLgFus|:igyaf:rathsep:::I":ur:,i.:fat::
benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision
may be appealed on thesame-FOLLOVVING grounds:
(A)      lF THERE  IS PRIMA FACIE  EVIDENCE OFABUSE OF DISCRETION ON THE PART
OF THE REGIONAL DIRECTOR OR HEARING OFFICER;
(8)      lF  THE  DECISION,  ORDER  0R  AWARD  WAS  SECURED  THROUGH  FRAUD  OR
COERCION, INCLUDING GRAFT AND CORRUPTION;
(C)      lFMADE PURELYON QUESTloNSOF LAW;AND
(D)      lF SERIOUS  ERRORS  IN THE  FINDINGS OF  FACTS ARE  RAISED WHICH VVOULD
CAUSE GRAVE OR IRREPARABLE DAMAGE OR INJURY TO THE APPELLANT.
Tovid,ed in Arti8I? 233 of this Cod?,. T.HE_ APPEAL SHALL BE  FILED within five (5) calendar
qays f[oni  receipt of a  copy  of said  decision  or resolution,  to the National  Laber'Relatiens
Ccmrr,issiefi COURT OF LABOR RELATIONS which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its rules.
I_h_e :ecreta.ry  o.f. Labor and .En]ploym?.nt  SOLE  or bje THE  duly  authorized  representative
may  supervise  the  payment  of  unpaid  wages  and  other  monetary  claims  and  benefits,
including legal interest, found owing to any employees.  (129a)
Title  111
WORKING CONDITIONS FOR SPECIAL GROUPS 0F EMPLOYEES  WORKERS
Chapter I
EMPLOYMENT OF WON.EN CHILDREN
Art. 111. Minimum Employable Age.
{a} Nc chi!d. .(1)  CHILDREN  below fifteen  (15) years of age shall  NOT be employed,  except
when  he THEY worke directly  under the  sole  responsibility  of   his THEIR  parents  or
guardian   and   VVHERE   ONLY   MEMBERS   OF   THE   EMPLOYER`S   FAMILY   ARE
EMPLOYED;   PROV/DED,   THAT   THEIR   EMPLOYMENT   NEITHER   ENDANGERS
THEIR  LIFE,   SAFETY,   HEALTH  AND  MORALS,   NOR  IMPAIRS  THEIR  NORMAL
DEVELOPMENT:   PROV/BED,   FURTHER,   THAT   THE   PARENT   OR   GUARDIAN
SHALL  PROVIDE  THE  SAID  CHILDREN  VVITH  THE  PRESCRIBED  PRIMARY AND


SECONDARY  EDUCATION;    Pf30V/DED,  FWA[Ly,  THAT  his  THEIR  employment
does not in any way interfere with his THEIR schooling.
(2)      CHILDREN  BELOWFIFTEEN (15) YEARS OFAGE MAY BE EMPLOYED  IN  PUBLIC
ENTERTAINMENT   OR   INFORMATION   THROUGH   CINEMA,   THEATER,   RADIO,
TELEVISION   OR   OTHER   MEDIA  WHERE   IT   IS   ESSENTIAL:   Pf30V/DED,   THE
EMPLOYMENT CONTRACT  IS  CONCLUDED  BY THE  CHILDREN'S  PARENTS  OR
LEGAL   GUARDIAN,   WITH   THE   EXPRESS   AGREEMENT   OF   THE   CHILDREN
CONCERNED, lF POSSIBLE, AND THE APPROVAL OF THE DOLE: AND PROV/DED,
THAT  THE   FOLLOVVING   REQUIREMENTS   IN  ALL   INSTANCES  ARE   STRICTLY
COMPLIED WITH:
(a)      THE  EMPLOYER  SHALL  ENSURE  THE  PROTECTION,   HEALTH,   SAFETY,
MORALS AND NORMAL DEVELOPMENT 0F THE CHILD;
(b)      THE  EMPLOYER SHALL INSTITUTE MEASURES TO PREVENT THE CHILD'S
EXPLOITATION 0R DISCRIMINATION TAKING INTO ACCOUNT THE SYSTEM
AND LEVEL OF REMUNERATION, AND THE DURATION AND ARRANGEMENT
OF WORKING TIME; AND
(c)      THE  EMPLOYER SHALL  FORMULATE AND  IMPLEMENT,  SUBJECT TO  THE
APPROVAL    AND     SUPERVISION     OF     COMPETENT    AUTHORITIES,     A
CONTINUING PROGRAM FOR TRAINING AND SKILLS ACQUISITION OF THE
CHILD.
(3)      CHILDREN   BELOW  EIGHTEEN   (18)  YEARS   OF  AGE   MAY   BE   EMPLOYED  AS
MODELS IN COMMERCIALS OR ADVERTISEMENTS, PROV/DEB, THAT CHILDREN
SHALL   NOT  APPEAR  IN  COMMERCIALS  OR  ADVERTISEMENTS   PROMOTING
ALCOHOLIC     BEVERAGES,     INTOXICATING     DRINKS,     TOBACCO     AND     ITS
BYPRODUCTS AND VIOLENCE.
IN THE EXCEPTIONAL CASES IN PARAGRAPHS 2 AND 3, WHERE SUCH CHILDREN
MAY BE  EMPLOYED,  EMPLOYERS  SHALL  FIRST SECURE,  BEFORE  ENGAGING
SUCH  CHILDREN,  A  WORK  PERMIT  FROM  THE  DOLE  WHICH  SHALL  ENSURE
OBSERVANCE OF THE ABOVE REQUIREMENTS.
THE   DOLE SHALL PROMULGATE RULES AND REGULATIONS NECESSARY FOR
THE EFFECTIVE IMPLEMENTATION OF THIS SECTION.
{b} (4) Any person fifteen  (15) and  BELOW eighteen (18) years of age may be employed for
:::::::::::i::;::;:::::t:::;::::;:::::::;::::::dapyu:;a;;;;:r:I:;a:;;i;gj:g;;;;;ig
9231.
{e} The foregoing provisions shall in no case allow the employment of a person below eighteen
(18) years of age in an undertaking which is hazardous or deloterioue in nature as deteinined
by the Secretary of Labor and  Employment-CONSIDERED AS WORST FORMS OF CHILD
LABOR UNDER REPUBLIC ACT NO.  9231.  (137a)
Chapter 11
EMPLOYMENT OF DOMESTIC WORKERS
ART.   112.   NONAPPLICABILITY  TO   DOMESTIC  WORKERS.   DOMESTIC  VVORKERS
SHALL BE COVERED BY R.A.  NO.10361.  (new)
Chapter Ill
EMPLOYMENT 0F HOMEWORKERS
ART.   113.   Coverage.   This   CHAPTER   shall   apply   to   persons  who   perform   industrial
homework for employers, OR contractors. (new)


ART.114. DEFINITIONS. AS USED IN THIS CHAPTER, THE FOLLOWING TERMS SHALL
HAVE THE MEANINGS INDICATED HEREUNDER:
(a)      "WDUSTR/AL HOMEWORK' IS A SYSTEM OF PRODUCTION UNDER WHICH WORK
FOR EMPLOYERS OR CONTRACTORS IS CARRIED OuT BY HOMEWORKERS AT
THEIR    HOME.    MATERIALS    MAY    OR    MAY    NOT    BE    FURNISHED    BY    THE
EMPLOYERS   OR   CONTRACTORS.   IT   DIFFERS   FROM   REGULAR   FACTORY
PRODUCTloN   PRINCIPALLY   IN   THAT,    lT   IS   A   DECENTRALIZED   FORM   OF
PRODUCTION..
(b)      "/IVDUS7lf3/AL   HOMEVVORKEf3"   MEANS   WORKERS   ENGAGED   IN   INDUSTRIAL
HOMEWORK.
(c)      "HOME" MEANS ANY ROOM,  HOUSE, APARTMENT OR OTHER PREMISES  USED
REGULARLY,  lN  WHOLE  OR  IN  PART,  AS  DWELLING  PLACE,  EXCEPT  THOSE
SITUATED   WITHIN   THE    PREMISES   OR   COMPOUND   0F    EMPLOYERS    OR
CONTRACTORS AND THE WORK PERFORMED THEREIN  IS UNDER THE ACTIVE
OR PERSONAL SUPERVISION BY OR FOR THE LATTER.
(d)      "EMPLOYERS" ARE NATURAL OR ARTIFICIAL PERSONS WHO,  FOR THEIR OWN
ACCOUNT  OR  BENEFIT,  OR  ON  BEHALF  OF ANY  PERSON  RESIDING  OUTSIDE
THE  PHILIPPINES,  DIRECTLY  OR  INDIRECTLY,  OR  THROUGH  ANY  EMPLOYEE,
AGENT, OR ANY OTHER PERSON:
(1)      DELIVER   OR   CAUSE   TO   BE   DELIVERED   ANY   GOODS,   ARTICLES   OR
MATERIALS TO  BE  PROCESSED  OR  FABRICATED  IN  OR ABOUT A  HOME
AND   THEREAFTER   T0   BE   RETURNED   OR   TO   BE   DISPOSED   OF   OR
DISTRIBUTED IN ACCORDANCE WITH THEIR DIRECTION; OR
(2)      SELL  ANY  GOODS,  ARTICLES  OR  MATERIALS  FOR  THE  PURPOSE  0F
HAVING SUCH GOODS OR ARTICLES  PROCESSED IN OR ABOUT A HOME
AND THEN  REPURCHASES THEM  THEMSELVES OR THROUGH ANOTHER
AFTER SUCH PROCESSING.
(e)      "COIVTf3AC7loR"   REFERS   TO   AN   ARRANGEMENT   WHEREBY   A   PRINCIPAL
AGREES    TO    FARM    OUT   TO   A   CONTRACTOR    THE    PERFORMANCE    OR
COMPLETION    OF   A    SPECIFIC    JOB    OR    WORK   WITHIN    A    DEFINITE    OR
PREDETERMINED PERIOD, REGARDLESS 0F WHETHER SUCH JOB OR WORK IS
TO  BE  PERFORMED OR COMPLETED WITHIN  0R OUTSIDE THE  PREMISES  OF
THE PRINCIPAL.
(f)       "PROCESS/IVG"       MEANS       MANUFACTURING,        FABRICATING,        FINISHING,
REPAIRING,   ALTERING,   PACKING,   WRAPPING   OR   HANDLING   IN   ANY   WAY
CONNECTED  WITH  THE  PRODUCTloN  OR  PREPARATION  OF  AN  ARTICLE  OR
MATERIAL.
(g)      "DEPAR"ENr MEANS THE DEPARTMENT OF LABOR AND EMPLOYMENT. (new)
ART.115. SELF-ORGANIZATION. HOMEWORKERS SHALL HAVE THE RIGHT TO FORM,
JOIN OR ASSIST ORGANIZATIONS OF THEIR OWN CHOOSING, lN ACCORDANCE WITH
LAIIN .  (neIN)
ART.   116.   REGISTRATION  OF   HOMEWORKERS'  ORGANIZATION.  ANY  APPLICANT
HOMEWORKER     ORGANIZATION     0R     ASSOCIATION     SHALL     ACQUIRE     LEGAL
PERSONALITY, AND SHALL BE ENTITLED TO THE RIGHTS AND PRIVILEGES GRANTED
BY    LAW   TO    LEGITIMATE    LABOR   ORGANIZATIONS    UPON    ISSUANCE    OF   THE
CERTIFICATE OF REGISTRATION BASED ON THE FOLLOWING REQUIREMENTS:
(a)      PAYMENT OF REGISTRATION FEE AS DETERMINED BY THE DEPARTMENT;
(b)      THE  NAMES OF  ITS OFFICERS,  THEIR ADDRESSES,  THE  PRINCIPAL ADDRESS
OF      THE      HOMEWORKERS      ORGANIZATION,      THE      MINUTES      OF      THE
ORGANIZATIONAL MEETINGS AND THE LIST OF WORKERS WHO PARTICIPATED
IN SUCH  MEETINGS;


(c)      THE  NAMES OF ALL  ITS  MEMBERS  COMPRISING AT LEAST TVVENIY  PERCENT
(20%)  OF ALL  THE  WORKERS  IN  THE  BARGAINING  UNIT VVHERE  IT  SEEKS  TO
OPERATE,  IF APPLICABLE;
(d)      IF  THE  APPLICANT   HAS   BEEN   IN   EXISTENCE   FOR   ONE   OR  MORE  YEARS,
COPIES 0F ITS ANNUAL FINANCIAL REPORTS; AND
(e)      FOUR   COPIES   OF  THE   CONSTITUTloN   AND   BY-LA\/VS   OF   THE  APPLICANT
ORGANIZATION,  THE  MINUTES  OF  ITS ADOPTION  OR  RATIFICATION  AND  THE
LIST OF MEMBERS \/VHO PARTICIPATED IN  IT.  (new)
ART.117.  REGISTRATION OF EMPLOYERS AND CONTRACTORS. THE  DEPAR"ENT
SHALL,    AS    SOON   AS    POSSIBLE,    CONDUCT   CONSULTATION    MEETINGS   VVITH
GOVERNMENT    AGENCIES     REQUIRING     REGISTRATION    OF    EMPLOYERS    AND
DETERMINE IF THE DATA BEING SUPPLIED BY THE REGISTRATION FORMS OF SUCH
AGENCIES ARE THE SAME AS OR SIMILAR TO THOSE NEEDED BY THE DEPARTMENT
IN THE IMPLEMENTATION OF THIS REGULATIONS.  IF THE REGISTRATION FORMS OF
OTHER AGENCIES DO NOT PROVIDE THE DATA NEEDED BY DOLE,  lT SHALL INQUIRE
INTO   THE   POSSIBILITY   0F   ADOPTING   A   COMMON   REGISTRATION   FORM   VVITH
OTHER AGENCIES THAT VVILL  PROVIDE THE  DATA  NEEDED  BY ALL THE AGENCIES
CONCERNED.
IN   THE   CASE   0F   CONTRACTORS,    HOVVEVEER,   THE   REGISTRATION   SHALL   BE
PURSUANT TO DOLE D.O.  No.174-17.  (new)
ART.   118.   PAYIVIENT   FOR   HOMEWORK.   IMMEDIATELY   UPON   RECEIPT   OF   THE
FINISHED  GOODS  OR ARTICLES,  EMPLOYERS  SHALL  PAY  THE  HOME\/\/ORKER  OR
THE  CONTRACTOR,  AS  THE  CASE  MAY  BE,   FOR  THE  WORK  PERFORMED  LESS
CORRESPONDING   HOMEWORKERS'   SHARE   OF   SSS,   THE   PHILIPPINE   HEALTH
INSURANCE CORPORATION (PHILHEALTH), AND THE HOME DEVELOPMENT MUTUAL
FUND OR PAG-lBIG, AND ECC PREMIUM CONTRIBUTIONS VVHICH SHALL BE REMITTED
BY THE EMPLOYERS OR CONTRACTORS TO THE APPROPRIATE AGENCIES VVITH THE
EMPLOYERS'  SHARE.  HOWEVER,  VVHERE  PAYMENT  IS  MADE  TO A  CONTRACTOR,
THE HOMEWORKER SHALL LIKEVVISE BE PAID IMMEDIATELY AFTER THE GOODS 0R
ARTICLES HAVE BEEN COLLECTED FROM THE WORKERS.  (new)
ART.119.  STANDARD  RATES.  AT  THE  INITIATIVE  OF  THE  DEPARTMENT  OR  UPON
PETITION    0F   ANY    INTERESTED    PARTY,    THE    SOLE    OR   THEIR   AUTHORIZED
REPRESENTATIVE SHALL ESTABLISH THE STANDARD OUTPUT RATE OR STANDARD
MINIMUM    RATE   IN   APPROPRIATE   ORDERS   FOR   THE   PARTICULAR   VVORK   OR
PROCESSING TO BE PERFORMED BY THE HOMEWORKERS.
THE    STANDARD    OUTPUT    RATES    OR    PIECE    RATES    SHALL    BE    DETERMINED
THROUGH ANY OF THE FOLLOVVING PROCEDURES:
(A)      TIMEAND MOTION STUDIES;
(8)     AN     INDIVIDUAL/COLLECTIVE     AGREEMENT     BEll/VEEN     EMPLOYERS     AND
WORKERS     AS     APPROVED     BY     THE     SOLE     OR     THEIR     AUTHORIZED
REPRESENTATIVE;
(C)      CONSULTATION   VVITH   REPRESENTATIVES   OF   EMPLOYERS   AND   VVORKERS
ORGANIZATIONS IN A TRIPARTITE CONFERENCE CALLED BY THE SOLE.
THE TIME AND MOTloN STUDIES SHALL BE UNDERTAKEN BY THE REGIONAL OFFICE
HAVING JURISDICTION OVER THE  LOCATION OF THE  PREMISES  USED  REGULARLY
BY THE  HOMEVVORKERS.  HOWEVER,  \/VHERE THE  JOB OPERATION  OR ACTIVITY  IS
BEING LIKEVVISE PERFORMED BY REGULAR FACTORY WORKERS AT THE FACTORY
OR   PREMISES   OF   EMPLOYERS,   THE   TIME   AND   MOTION   STUDIES   SHALL   BE
CONDUCTED    BY    THE    REGIONAL    OFFICE    HAVING    JURISDICTION    OVER    THE


LOCATION   OF  THE   MAIN   UNDERTAKING   OR   BUSINESS   OF   EMPLOYERS.   PIECE
RATES  ESTABLISHED  THROUGH  TIME AND  MOTION  STUDIES  CONDUCTED AT THE
FACTORY  OR  MAIN  UNDERTAKING  OF  THE  EMPLOYER  SHALL  BE  APPLICABLE  TO
THE HOMEWORKERS PERFORMING THE SAME JOB ACTIVITY. THE STANDARD PIECE
RATE  SHALL  BE  ISSuED  BY  THE  REGIONAL  OFFICE  WITHIN  ONE  MONTH  AFTER  A
REQUEST HAS BEEN MADE AT SAID OFFICE.
UPON    REQUEST    OF    THE    REGIONAL    OFFICE,    THE    BUREAU    OF    WORKING
CONDITIONS  SHALL  PROVIDE  ASSISTANCE  IN  THE  CONDUCT  OF  SUCH  STUDIES.
NON-COMPLIANCE   WITH   THE    ESTABLISHED   STANDARD    RATES   CAN    BE   THE
SUBJECT OF COMPLAINT WHICH SHALL BE FILED AT THE  REGIONAL OFFICE.  (new)
ART.  120.  DEDUCTIONS.  EMPLOYERS  OR  CONTRACTORS  SHALL  NOT  MAKE  ANY
DEDUCTION  FROM  HOMEWORKERS'  EARNINGS  FOR  THE  VALUE  OF  MATERIALS
WHICH HAVE BEEN LOST,  DESTROYED, SOILED OR OTHERWISE DAMAGED UNLESS
THE FOLLOVVING CONDITIONS ARE MET:
(a)      THE      HOMEWORKERS      CONCERNED     ARE      CLEARLY      SHO\/VI\l      TO      BE
RESPONSIBLE FOR THE LOSS OR DAMAGE;
(b)     THE   HOMEWORKERS   ARE   GIVEN   REASONABLE   OPPORTUNITY   TO   SHOW
CAUSE WHY DEDUCTIONS SHOULD NOT BE MADE;
(c)      THEAMOUNTOF SUCH DEDUCTION IS FAIRAND REASONABLEAND SHALL NOT
EXCEED THE ACTUAL LOSS OR DAMAGE; AND
(d)     THE DEDUCTION IS MADEAT SUCH RATE THATTHE AMOUNT DEDUCTED DOES
NOT EXCEED TVVENTY PERCENT (20°/o) OF THE HOMEWORKER'S EARNINGS IN
A WEEK. (new)
ART.121. CONDITIONS FOR PAYMENT OF WORK.
(a)      EMPLOYERS MAY REQUIRE HOMEWORKERS TO REDO THE WORK WHICH HAS
BEEN  IMPROPERLY  EXECUTED  WITHOUT  HAVING  TO  PAY  THE  STIPULATED
RATE AGAIN.
(b)      EMPLOYERS  OR  CONTRACTORS  NEED  NOT  PAY  HOMEWORKERS  FOR  ANY
WORK WHICH  HAS BEEN DONE ON GOODS AND ARTICLES WHICH HAVE BEEN
RETURNED     FOR     REASONS     ATTRIBUTABLE     TO     THE     FAULT    OF     THE
HOMEWORKER.  (new)
ART.  122.  VISITORIAL  AND  ENFORCEMENT  POWER.  THE  REGIONAL  DIRECTOR  IN
ACCORDANCE WITH ART.109 SHALL HAVE THE POWER TO ORDER AND ADMINISTER
COMPLIANCE WITH THE  PROVISIONS OF THE  LAW AND  REGULATIONS AFFECTING
THE  TERMS  AND  CONDITIONS  OF  EMPLOYMENT  OF  HOMEWORKERS  AND  SHALL
HAVE  THE  JURISDICTION  IN  CASES  INVOLVING  VloLATIONS  OF  THIS  CODE,  ANY
LABOR  LAW,  WAGE  ORDER  OR  RULES AND  REGULATIONS  ISSUED  PURSUANT T0
THIS ARTICLE.
COMPLAINTS   FOR   VIOLATIONS   0F   LABOR   STANDARDS   AND   THE   TERMS   AND
CONDITIONS  OF  EMPLOYMENT  INVOLVING  MONEY  CLAIMS  OF  HOMEWORKERS  IN
AN   AMOUNT   OF   NOT   MORE   THAN   FIVE   THOUSAND   PESOS   (P5,000.00)   PER
HOMEWORKER  SHALL   BE   HEARD  AND   DECIDED   BY  THE   REGloNAL   DIRECTOR
PURSUANT TO ART.110.  (new)
ART.123.  DUTIES  OF  EMPLOYERS  AND  CONTRACTORS.  WHENEVER  EMPLOYERS
CONTRACT WITH ANOTHER FOR THE PERFORMANCE OF THE EMPLOYER'S WORK,
lT  SHALL  BE  THE  DUTY  OF  SUCH  EMPLOYERS  TO  PROVIDE  IN  SUCH  CONTRACT
THAT THE  EMPLOYEES OR HOMEWORKERS OF THE  CONTRACTOR SHALL BE PAID
IN ACCORDANCE WITH  THE  PROVISIONS  OF THIS  CODE.  IN  THE  EVENT THAT THE


CONTRACTORS  FAIL T0 PAY THE WAGES OR EARNINGS OF THEIR EMPLOYEES OR
HOMEWORKERS AS SPECIFIED IN THIS RULE, SUCH EMPLOYERS SHALL BE JOINTLY
AND  SEVERALLY  LIABLE  VVITH   THE   CONTRACTORS  TO  THE  VVORKERS   OF  THE
LATTER,   TO   THE   EXTENT   THAT   SuCH   WORK   IS   PERFORMED   UNDER   SUCH
CONTRACT,   lN  THE  SAME  MANNER  AS  IF  THE  EMPLOYEES  OR  HOMEVVORKERS
VVERE     DIRECTLY     ENGAGED     BY     THE     EMPLOYERS.     THE     EMPLOYERS,     OR
CONTRACTORS, AS THE CASE MAY BE,  SHALL ASSIST THE HOMEWORKERS IN THE
MAINTENANCE  OF  BASIC  SAFE  AND  HEALTHFUL  VVORKING  CONDITIONS  AT  THE
HOMEV\/ORKERS' PLACE OF WORK.  (new)
ART.   124.   EMPLOYMENT   OF   CHILDREN   AS   HOMEWORKERS.   THE   PROVISIONS
GOVERNING  THE  EMPLOYMENT  OF  MINORS  UNDER  THIS  CODE  AS  VVELL  AS  THE
PROVISIONS   ON   \/VORKING   CHILDREN   UNDER   REPUBLIC   ACT   NO.   9231    SHALL
GOVERN THE EMPLOYMENT OF CHILDREN AS HOMEWORKERS.  (new)
ART.125.  PROHIBITIONS FOR HOMEWORK. NO HOME\/VORK SHALL BE PERFORMED
ON THE FOLLOVVING:
(1)      EXPLOSIVES, FIREWORKSANDARTICLES OF LIKE CHARACTER;
(2)      DRUGSANDPOISONS;AND
(3)      OTHER  ARTICLES,  THE  PROCESSING  OF  \/VHICH   REQUIRES  EXPOSURE  TO
TOXIC SUBSTANCES.  (new)
ART.    126.    ASSISTANCE    TO    REGISTERED    HOMEWORKERS'    ORGANIZATIONS,
EMPLOYERS,    AND    CONTRACTORS.    THE    REGIONAL    OFFICE    SHALL    PROVIDE
TECHNICAL   ASSISTANCE    TO    REGISTERED    HOMEWORKERS'    ORGANIZATloNS,
EMPLOYERS, AND CONTRACTORS RELATIVE TO THE FOLLOVVING:
(a)      INFORMATION ONWAGESAND OTHER BENEFITS;
ro)      cONDucT OF TIME AND MOTioN STUDIES TO ENsuRE FAiRAND REAsONABLE
OUTPUT RATES;
(c)       SKILLSTRAINING;
(d)      MAINTENANCE OF SAFE AND HEALTHFUL CONDITIONS AT THE WORKPLACE.
(e)      INFORMATION   ON   ENTITLEMENT   TO   SOCIAL   SECURITY   AND   EMPLOYEES'
COMPENSATION BENEFITS;
(f)       FACILITATION    0F    LOANS    VVITH    GOVERNMENT    AND    NON-GOVERNMENT
FINANCIAL INSTITUTIONS; AND
ts)      INFORMATION   ON   HOW  TO  AVAIL  THEMSELVES   OF   HOUSING   PROGRAMS
UNDER PAG-lBIG.  (new)
Chapter lv
EMPLOYMENT OF NIGHT WORKERS
Art.  127.  Coverage.  This  chapter  shall  apply  to  all  persons,  who  shall  be  employed  or
permitted  or suffered to work at night,  except those  employed  in  agriculture,  stock raising,
fishing,  maritime transport and  inland  navigation,  during  a  period  of not less than seven  (7)
consecutive  hours,  including  the  interval from  midnight to five  o'clock in  the  moming,  to  be
determined  by the Secretary of Labor and  Employment SOLE,  after consulting the workers'
representativesnaber organizations and employers.
'IV;.ghf wowher' means any employed person whose work requires performance of a substantial
number of hours of night work which exceeds a specified limit. This limit shall be fixed by the
Secretary of Labor and Employment SOLE after consulting the workers' representatives/labor
organizations and employers.  (154a)


Art.128.  Health Assessment.  At their request,  workers  shall  have the  right to  undergo  a
health  assessment without charge  and to  receive advice  on  how to  reduce  or avoid  hearth
problems associated with their work:
(a)      Before taking up an assignment as night workers;
ro)      At regular intervals during such an assignment; and
(c)      lfthey experience health problems during such, an assignment which are not caused by
factors other than the performance of night work.
With the exception of a finding of unfitness for night work, the findings of such  assessments
shall not be transmitted to others without the workers' consent and shall not be used to their
detriment.  (155)
Art.129. Mandatory Facilities. Suitable first-aid facilities shall be made available for workers
performing night work, including arrangements where such workers, where necessary, can be
taken  immediately to a place for appropriate treatment.  The employers are likewise required
to   provide   safe   and   healthful   working   conditions,   sleeping   or   resting   quarters   in   the
establishment,   and  transportation  from  the  work  premises  to  the  nearest  point  of  their
residence  subject to  exceptions  and guideline6 to  be AND SUCH  OTHER ADEQUATE  OR
REASONABLE FACILITIES AS MAY BE provided by the DOLE.  (156a)
Art.  130. Transfer.  Night  workers  who  are  certified  as  unfit  for  night  work,  due  to  hearth
reasons,  shall  be transferred,  whenever practicable,  to a similar job for which they are fit to
work.
If such transfer to a similar job is  not practicable, these workers shall  be granted the same
benefits  as  other workers  who  are  unable  to  work,  or to  secure  employment  during  such
period.
A Night workers certified as temporarily unfit for night work shall be given the same protection
against dismissal or notice of dismissal as other workers who are prevented from working for
reasons of hearth.  (157a)
Art.131. Women  Night Workers.  Measures shall  be taken to ensure that an alternative to
night work is available to women workers who would otherwise be callecl upen to perform such
work:
(a)      Before  and  after childbirth,  for a  period  of at  least sixteen  (16) weeks,  which  shall  be
divided between the time before and after childbirth;
q])      For additional periods,  in respect of which a medical certificate is produced stating that
said additional periods are necessary for the hearth of the mother or child:
(1)      During pregnancy;
(2)      During  a  specifed  time  beyond  the  period,  after  childbirth  is  fixed  pursuant  to
subparagraph  (a)  above,  the  length  of which  shall  be  determined  by the  DOLE
after consulting the labor organizations and employers.
During the periods referred to in this article:
(1)     A  woman  worker  WOMEN  WORKERS  shall   not  be  dismissed  or  given   notice  of
dismissal,  except for just  or authorized  causes  provided  for in this  Code that are  not
connected with pregnaney, childbirth and childcare responsibilities.
(2)     A woman worker WOMEN WORKERS Shall not lose the benefits regarding ha THEIR
status, seniority, and access to promotion which may attach to bet THEIR regular night
work position.
Pregnant women and nursing  mothers may be allowed to work at night only if a competent
physician,  other than the company  physician,  shall  certify their fitness to  render night work,


and specify,  in the case of pregnant employees,  the period  of the pregnancy that they can
safely work.
The measures referred to in this article may include transfer to day work where this is possible,
the provision of social security benefits or an extension of matemity leave.
The provisions of this article shall not leave the effect of reducing the protection and benefits
connected with matemfty leave under existing laws.  (158a)
Art.132.  Compensation.  The compensation for night workers  in the form  of working time,
pay or similar benefits shall recognize the exceptional nature of night work.  (159)
Art  133.  Social  Services. Appropriate  social  services  shall  be  provided  for  night workers
and, where necessary, for workers performing night work. (160)
Art.134.  Night Work Schedules.  Before introducing work schedules requiring the services
of night workers, ±±e emp!c`,'er EMPLOYERS shall consult the workers' representativesflabor
organizatic>ns  concerned  on  the  details  of such  schedules  and  the forms  of organieation  of
night work that are best adapted to the  establishment and  its  personnel,  as well  as on the
occupational  health  measures  and  social  services  which  are  required.   In  establishments
employing night workers,  consultation shall take place regularly.  (161a)
Chapter V
Handicappod Work®ro EHPLOYMENT OF WORKERS WITH DISABILITIES
Art-135.  D®finltlon OF TERMS.  Hartdic==Ded `,I,'c,+`er= ere ±h£:a `.I.+ftp.a eerrt!r`-._-r`-^i+`/ i-
:rtipa:red  b`,' age cr prt`,'sjca!  cr menta! deficie=ic
THESE TERMS ARE DEFINED AS FOLLOWS:
injtlfyTFOR puRposEs oF THis ACT,
ta)      PISABLED  PERSONS .UWORKERS  WITH  DISABILITY  ARE THOSE  SUFFERING
FROM  RESTRICTION  OF  DIFFERENT  ABILITIES,  AS  A  RESULT  0F  A  MENTAL,
PHYSICAL  OR   SENSORY   IMPAIRMENT,   TO   PERFORM  AN  ACTIVITY   IN   THE
MANNER OR VVITHIN "E RANGE CONSIDERED NORMAL FOR A HUMAN  BEING;
tb)     "/MPA/RMEIvr      is      ANT      Loss,       DiMiNUTioN      oR      ABERRATioN      oF
PSYCHOLOGICAL,     PHYSIOLOGICAL,     OR     ANATOMICAL     STRUCTURE     OR
FUNCTION;
(c)      :.P/_S4_E/_i_/_TY_ls A CONDITION WHICH SHALL MEAN (1) AN FHYSICAL OR MENTAL
lMPAIRMENT  THAT  SUBSTANTIALLY  LIMITS  ONE  OR  MORE  PSYCHOLOGICAL,
PHYSIOLOGICAL OR ANATOMICAL FUNCTloN OF AN INDIVIDUAL OR ACTIVITIES
OF  SUCH  INDIVIDUAL;  (2) A RECORD OF  SUCH AN  IMPAIRMENT;  OR  (3)  BEING
REGARDED AS HAVING SUCH AN  IMPAIRMENT;
(d)      "HAIVD/CAP"    REFERS    TO    A    DISADVANTAGE    FOR    A    GIVEN    INDIVIDUAL
RESULTING    FROM    AN    IMPAIRMENT,    THAT    LIMITS    OR    PREVENTS    THE
FUNCTloNS OR ACTIVITY, THAT IS CONSIDERED NORMAL GIVEN THE AGE, SEX
AND GENDER OF THE INDIVIDUAL.  (78a)
ART.136.    EQUAL  OPPORTUNITY  FOR  EMPLOYMENT.  NO PEP`SON  WORKER VVITH
DISABILITY    SHALL    BE    DENIED    ACCESS    TO    OPPORTUNITIES    FOR    SUITABLE
EMPLOYMENT.  A-QUALIFIED  EMPLOYEES  VVI"  DISABILITY  SHALL  BE  SUBJECTED
fn#!¥!, TE#iffi, cg#E¥: j#!E!p!?¥#:!; ¥:;-I;;E=
g+§Ti3E':+:E5i;%Nrig:E£¥!vi;::PEA::R§:8ig¥L#


QUALIFIED \/VORKERS VVITll  DISABILITY SllALL MEAN  INDIVIDUALS WITll  DISABILITY
VVHO   VVITH   REASONABLE   ACCOMMODATIONS   CAN   PERFORM   THE   ESSENTIAL
FUNCTIONS  OF  THE  EMPLOYMENT  POSITION  THAT  SUCH  INDIVIDUALS  HOLD  OR
DESIRE.  EMPLOYERS SHALL BE REQUIRED TO PREPARE A WRITTEN  DESCRIPTION
OF  ESSENTIAL  FUNCTIONS  OF THE  JOB AND ADVERTISE  THE  SAME VVHICH  SHALL
BE THE  BASIS FOR SELECTION AND HIRING OF APPLICANTS.
AT LEAST ONE  PERCENT (1%) OF ALL  POSITIONS  IN ALL GOVERNMENT AGENCIES,
OFFICES OR CORPORATIONS StIALL BE RESERVED FOR PEP`SONS WORKERS WITH
DISABILITY:   PROV/DED,   THAT  PRIVATE   CORPORATloNS  VVITH   MORE  THAN   ONE
HUNDRED   (100)   EMPLOYEES  ARE   ENCOURAGED   TO   RESERVE   AT   LEAST   ONE
PERCENT (1 %) OF ALL POSITIONS FOR PERSONS VVITH  DISABILITY.
FOR  PURPOSES  OF  THIS  ARTICLE,  PERSONS  VVITH  DISABILITIES  INCLUDE  THOSE
VVHO    HAVE    LONG-TERM     PHYSICAL,    MENTAL.     INTELLECTUAL    OR    SENSORY
IMPAIRMENTS   VVHICH   IN   INTERACTION   VVITH   VARIOUS   BARRIERS   MAY   HINDER
THEIR FULL AND EFFECTIVE PARTICIPATION  IN SOCIETY ON AN  EQUAL BASIS WITH
OTHERS.
PERSONS VVITH DISABILITIES ARE ALSO ELIGIBLE AS APPRENTICES DEPENDING ON
THE  SKILLS  AND  CAPACITY  TO  PERFORM  THE  NEEDED  JOB  FUNCTIONS  OF  THE
EMPLOYER.  HO\/VEVER, ASSESSMENT OF THEIR CAPACITIES AND SKILLS SHALL BE
CONDUCTED BY DSVVD OR TESDA AS THE CASE MAY BE IN ORDER TO DETERMINE
TiiE    QijALiFicATioNs   AND    FiTNESs    oF    TriE    pERsoNS    wiTii    DisABILiTiEs,
PROV/DED FUR7lHEf? THAT AFTER THE LAPSE OF THE PERIOD OF APPRENTICESHIP,
lF  FOUND  SATISFACTORY  IN  TIIE  JOB  PERFORMANCE.  TllEY  SllALL  BE  ELIGIBLE
FOR REGULAR EMPLOYMENT.  (new)
ART.137.   APPLICABILITY OF  THE  MAGNA  CARTA  FOR  DISABLED  PERSONS.  ALL
OTHER  PROVISIONS  OF  REPUBLIC  ACT  NO.  7277,  AS  AMENDED,  VVHICH  ARE  NOT
INCONSISTENT HEREVVITH ARE DEEMED ADOPTED.  (new)
Title VI
Workers with Family Responsibilities
Chapter I
Facilities for Workers with Family Responsibilities
Art.138. Facil[t]es for Wcmer: WORKERS. The Secretary of Labor and Employment SOLE
shall  establish  standards  that  will  ensure  the  safety  and  health  of  `,A.'crTien  employees.  ha
from work and  during worfung  nouns,  provided they  can  perform their dutie6  in thi6  position
without detriment to efficiency;
(b) To establish ceparate toilet roomc and lavatorio6 for men and women and provide at least
a dreB8ing room for women;
{e}Ie THE EMPLOYERS SHALL BE REQUIRED TO establish a nursery in a workplace for
the benefit of `,I,'crT:ert employees therein; and
(d) To determine appropriate minimum age and other 6tandard6 for retirement or termination
in Special occupations such a8 those of flight attendants and the like.  (130a)
Art.139. Family Planning Services; Incentives for Family Planning.
(a)      Establishments which are required by law to maintain a clinic or infirmary shall provide
free family  planning services to their employees which  shall  include  but not be limited
-_'    -. ._    _rl...__`._' -    _.
PLANNING DEVICES.
FAMILY


tt,]  i:mffyorpq:nna;,i::, #t: g*edLEnsthha:, Ereov:Pot;onanodf
prescribe incentive bonus schemes to encourage family planning among workers in any
establishment or enterprise. (132a)
ART.  140.  ESTABLISHMENT  OF  LACTATION  STATIONS.  IT  IS  HEREBY  MANDATED
THAT     ALL     HEALTH     AND     NON-HEALTH      FACILITIES,      ESTABLISHMENTS     OR
INSTITUTIONS SHALL ESTABLISH  LACTATION STATIONS. THE LACTATION STATIONS
SHALL   BE   ADEQUATELY   PROVIDED   VVITH   THE    NECESSARY   EQUIPMENT   AND
FACILITIES,   SUCH   AS:   LAVATORY   FOR   HAND-WASHING,   UNLESS   THERE   IS   AN
EASILY-ACCESSIBLE    LAVATORY    NEARBY;    REFRIGERATION    OR    APPROPRIATE
COOLING    FACILITIES    FOR    STORING    EXPRESSED    BREAS"lLK;     ELECTRICAL
OUTLETS FOR BREAST PUMPS; A SMALL TABLE; COMFORTABLE SEATS; AND OTHER
ITEMS,  THE  STANDARDS  OF  \/VHICH  SHALL  BE  DEFINED  BY  THE  DEPARTMENT  OF
HEALTH. THE LACTATION STATION SHALL NOT BE LOCATED IN THE TOILET.
IN   ADDITION,   ALL   HEALTH   AND   NON-HEALTH   FACILITIES,   ESTABLISHMENTS   OR
INSTITUTIONS   SHALL   TAKE   STRICT   MEASURES   TO   PREVENT  ANY   DIRECT   OR
INDIRECT FORM OF PROMOTION, MARKETING, AND/OR SALES OF INFANT FORMULA
AND/OR BREAS"lLK SUBSTITUTES VVITHIN THE  LACTATION STATIONS,  OR IN ANY
EVENT 0R CIRCUMSTANCES VVHICH MAY BE CONDUCIVE TO THE SAME.
APART  FROM  THE  SAID  MINIMUM  REQUIREMENTS,  ALL  HEALTH AND  NON-HEALTH
FACILITIES,  ESTABLISHMENTS  OR  INSTITUTloNS  MAY  PROVIDE  OTHER  SUITABLE
FACILITIES  OR  SERVICES  VVITHIN  THE  LACTATION  STATION,  ALL  OF WHICH,  UPON
DUE   SUBSTANTIATION,   SHALL   BE   CONSIDERED   ELIGIBLE   FOR   PURPOSES   OF
SECTION  14 0F =!±!-S ACT REPUBLIC ACT NO. 7600, AS AMENPE.a.  (new)
Chapter 11
Workers' Leaves
ART.     141.     PATERNITY    LEAVE.     NOTVVI"STANDING    ANY    LAW,     RULES    AND
REGULATIONS    TO    THE    CONTRARY,    EVER¥    MARRIED    MALE    EMPLOYEES    IN
THE PRIVATE AND PUBLIC SECTORS SHALL BE ENTITLED TO A PATERNITY LEAVE OF
AT  LEAST  SEVEN  (7)  DAYS  VVITH  FULL  PAY  FOR  THE  FIRST  FOUR  (4)  DELIVERIES
OF THE LEGITIMATE SPOUSE VVITH VVHOM I±EIS THEY ARE COHABITING; PROV/DED.
iHEHfiEE.EEEHuniiiEEiE]JEEHfiEiEiEEENiEiiENTEEETEEHjEE|ELTjEEiEEnE±u|EEENIHHEEE=nEE
EMPLOYERS OF THE PREGNANCY OF HR|!±E±B LEGITIMATE SPOUSE OR PARTNER
AND THE EXPECTED DATE OF SUCH DELIVERY.
FOR PURPOSES OF THIS A€IPROVISION, DELIVERY SHALL INCLUDE CHILDBIRTH OR
ANY MISCARRIAGE.  (new)
ART.  142.  PARENTAL LEAVE.  IN ADDITION TO Q|!±EB LEAVE PP`!`,'!LEGES-BENEFITS
HN_D_E,p.E¥is.T.ipr.9L4.yp=.pA`p_EN_TA±_LEA_vE_QFNOTMORETHAN.ATLEASTSEVENt7,
wORKiNG   DAys   EVERy   TEAR   SHALL   BE   GRANTED   TO   ANy   solo   p^REie
EMPLOYEES VVHO l]ASHAVE RENDERED SERVICE OF AT LEAST ONE (1) YEAR. RE
SEVEN-DAY PARENTAL LEAVE SHALL BE NON€UMULATIVE.
EE§#T,yEFSSAHNAD||:EE±Es#FLPTTE°sE#E:EEEFHpyL3:EE:pTfiEE


ART.   143.   PARENTAL   LEAVE   FOR  ADOPTERS.   PERSONS   \/VHO   HAVE   LEGALLY
ADOPTED   A   MINOR,    SHALL,    AFTER   THE    ISSUANCE    OF   THE    PRE-ADOPTION
PLACEMENT AUTHORllY  ISSUED  BY THE  DEPARTMENT OF SOCIAL VVELFARE AND
DEVELopMENT (DswD),  BE  ENTITLED TO THiRrv (30)  DAys  OF  PARENTAL  LEAVE:
PROV/DED,   THAT,   lF  ADOPTIVE  PARENTS  ALSO  QUALIFY  FOR  LEAVE   BENEFITS
UNDER  REPUBLIC  ACT  NO.  8552,  "THE  DOMESTIC  ADOPTION  ACT  OF  1998,"  THE
LEAVE BENEFIT VVITH THE HIGHER NUMBER OF DAYS SHALL APPLY.  (new)
ART.    144.    FLEXIBLE   WORK   SCHEDULE.   EMPLOYERS   SHALL   PROVIDE   FOR   A
FLEXIBLE \/VORKING SCHEDULE FOR EMPLOYEES; PROV/BED, THAT THE SCHEDULE
SHALL NOT AFFECT INDIVIDUAL AND COMPANY PRODUCTIvllY.
"FLexiBLE   WORK  scHEDULE' is  THE   RiGHT   GRANTED  TO  vARy   EMPLoyEEs'
ARRIVAL AND DEPARTURE TIME VVITHOUT AFFECTING THE CORE WORK HOURS AS
DEFINED BY EMPLOYERS.  (new)
ART.145.  LEAVES FOR VICTIMS 0F VIOLENCE. VICTIMS OF VIOLENCE  UNDER IENS
REPUBLIC ACT NO. 9262 SHALL BE ENTITLED TO TAKE A PAID LEAVE OF ABSENCE UP
TO TEN  (10)  DAYS  IN ADDITION  TO OTHER  PAID  LEAVES  UNDER THE  LABOR     THIS
CODE  AND  CIVIL  SERVICE   RULES  AND  REGULJ\TIONS,   EXTENDIBLE  VVHEN iFE
NECESSITY ARISES AS SPECIFIED IN THE PROTECTION ORDER.
AN¥EMPLOYERS WHO SHALL PREJUDICE THE RIGHT OF THE PERSONS UNDER THIS
SECT!ON PROVISION SHALL BE PENALIZED IN ACCORDANCE VVITH THE-PROVISIONS
9_F THE_LA_BOR "ls CODEAND CIVIL SERVICE RULES AND REGULATloNS. LIKEW|SE,
AN  EMPLOYERS_WHO  SHALL  PREJUDICE  AN¥PERSONS  FOR  ASSISTING  A-CO-
EMPLOYEES_WHOISIAALBEVICTIMSUNDERTH!S,A`CTREPUBLICACTNO.9262SHALL
L!KE`,A,'!SE BE LIABLE FOR DISCRIMINATION.  (new)
ART.   146.   REPRODUCTIVE   LEAVE.   A   WOMAN   EMPLOYEES  RAVING   RENDERED
CONTINUOUS  AGGREGATE  EMPLOYMENT SERVICE  OF AT  L-EAST  SIX  (6)  MONTHS
FOR  THE  LAST  TVVELVE  (12)  MONTHS  SHALL  BE  ENTITLED  TO  A  SPECIAL  LEAVE
BENEFIT OF TWO (2) MONTHS VVITH FULL PAY BASED ON HEf+THE GROSS MONTHLY
cOMPENSATioN      FOLLOwlNG      suRGERy      cAusED      B:rGyNEcOLOGicAI
REPRODUCTIVE  DISORDERS,  AS  CERTIFIED  BY A COMPETENT  PUBLIC  PHYSICIAN.
(new)
CHAPTER Ill
PREGNANT AND NURSING WORKERS
ART.  147.  FACILITIES  FOR  NURSING WORKERS.  EMPLOYERS  SHALL  BE  REQUIRED
To  ESTABLISH  A  NURSERy  IN  A  WoRKPLACE  FOR  THE  BENEFIT  oF  THE  \^roMErj
EMPLOYEES THEP`E!N.  (130)
ART.       148.       LACTATloN       PERIODS.       NUP`S!NG       EMPLOYEES      VVITH       CHILD
RESPONSIBILITY.    VVHETHER    MALE    OR    FEMALE.    SHALL    BE    GRANTED    BREAK
INTERVALS   IN  ADDITION  TO  THE  REGULAR  TIMEOFF  FOR  MEALS  TO  FEED  OR
BREASTFEED  A  cHiLD  OR  re  ExpREss  MiLK.  THESE  iNTERVALs,  vvHlcH  SHALL
INCLUDE THE TIME IT TAKES AN EMPLOYEE TO GET TO AND FROM THE WORKPLACE
LACTATION STATloN, SHALL BE COUNTED AS COMPENSABLE HOURS VVORKED. THE
DEP,A.P`Tt,1ENT     OF      I_A`BOP`     ,^`ND      E?,1PLOYt,1ENT     DO_LE      MAY     ADJUST     THE
SAME: PROV/DED, THAT SUCH  INTERVALS SHALL  Nol=EETLESS THAN A TOTAL 0F
FORTY (40) MINUTES FOR EVERY EIGHT (8)-HOUR WORKING PERIOD. (new)


ART.  149.  PROTECTION  OF  PREGNANT  OR  NURSING  WORKERS.  PREGNANT  OR
NURSING WORKERS SHOULD NOT BE OBLIGED TO WORK ON A REST DAY,  RENDER
NIGHT  WORK  OR  OVERTIME  WORK  IF  A  MEDICAL  CERTIFICATE  DECLARES  SUCH
WORK TO BE  INCOMPATIBLE WITH THEIR PREGNANCY OR NURSING.  (new)
ART.150. ALTERNATIVE WORK FOR NURSING WORKERS. WHERE WORK HAS BEEN
DETERMINED BY COMPETENT AUTHORITY TO BE PREJUDICIAL TO THE HEALTH OF
THE  WORKER  OR  THE  CHILD,  OR  WHERE  AN  ASSESSMENT  HAS  ESTABLISHED  A
SIGNIFICANT    RISK   TO   THE   WORKER'S    HEALTH    OR   THAT   OF   THEIR    CHILD,
EMPLOYERS    SHOULD    PROVIDE    MEASURES    ON    THE    BASIS    0F   A    MEDICAL
CERTIFICATE AS APPROPRIATE, AN ALTERNATIVE T0 SUCH WORK IN THE FORM OF:
(a)       ELIMINATIONOFRISK;
(b)      ANADAPTATION OF THEIRCONDITIONS OFWORK;
(c)      A  TRANSFER  TO  ANOTHER  POST,  WITHOUT  LOSS  OF  PAY,  WHEN  SUCH  AN
ADAPTATION IS NOT FEASIBLE; OR
(d)      PAID LEAVE, lN ACCORDANCEWITH THE PROVISIONS OF THIS CODE.
MEASURES   REFERRED   TO   ABOVE   SHOULD   BE   TAKEN    IN   RESPECT   OF   THE
FOLLOWING:
(a)      ARDUOUS  WORK  INVOLVING  THE  MANUAL  LIFTING,  CARRYING,  PUSHING  OR
PULLING 0F LOADS;
(b)      WORK   INVOLVING   EXPOSURE   TO   BIOLOGICAL,   CHEMICAL   OR   PHYSICAL
AGENTS WHICH REPRESENT A REPRODUCTIVE HEALTH HAZARD;
(c)      WORKREQUIRINGSPECIALEQUILIBRluM; OR
(d)      WORK   INVOLVING   PHYSICAL   STRAIN   DUE   TO   PROLONGED   PERIODS   OF
SITTING OR STANDING, TO EXTREME TEMPERATURES, OR TO VIBRATloN. (new)
Art.151. Maternity  Leave  Benefits.
employee who has rendered an aggre
(12)  months,  rr:at`erTiit`7'  !e=`,'e  cf at !e=
FEMALE   MEMBERS\/VORKERS   VVHO   HAVE   PAID  AT   LEAST  THREE   (3)   MONTHLY
CONTRIBUTIONS  IN  THE  TVVELVE-MONTH  PERIOD  IMMEDIATELY  PRECEDING  THE
SEMESTER   OF   THEIR   CHILDBIRTH   OR   MISCARRIAGE   SHALL   BE   PAID   A   DAILY
MATERNITY  BENEFIT  EQUIVALENT  TO  ONE  HUNDRED  PERCENT  (100%)  OF  THEIR
AVERAGE DAILY SALARY CREDIT FOR SIXTY (60) DAYS OR SEVENTY-EIGHT (78) DAYS
IN CASE OF CAESARIAN DELIVERY, SUBJECT TO THE FOLLOVVING CONDITIONS:
(a)      THAT THE  EMPLOYEES  SHALL  HAVE  NOTIFIED  THEIR  EMPLOYERS  OF  THEIR
PREGNANCY AND THE PROBABLE DATE 0F THEIR CHILDBIRTH, VVHICH NOTICE
SHALL BE TRANSMITTED TO THE SSS IN ACCORDANCE VVI" THE RULES AND
REGULATIONS IT MAY PROVIDE;


th)      THE FULL PAYMENT SHALL BE ADVANCED BY THE EMPLOYERS VVITHIN THIRTY
(30) DAYS FROM THE FILING OF THE MATERNITY LEAVE APPLICATION;
(c)      THATTHE MATERNITY BENEFITS PROVIDED UNDERTHIS PROVISION SHALL BE
PAID ONLY FOR THE FIRST FOUR (4) DELIVERIES OR MISCARRIAGES;
(d)      THAT  THE  SSS  SHALL  IMMEDIATELY  REIMBURSE  THE  EMPLOYERS  OF  ONE
HUNDRED   PERCENT   (100%)   OF   THE   AMOUNT   OF   MATERNITY   BENEFITS
ADVANCED  TO  THE   EMPLOYEES   BY  THE   EMPLOYERS   UPON   RECEIPT  OF
SATISFACTORY PROOF OF SUCH PAYMENT AND LEGALITY THEREOF; AND
(e)      THAT    IF    THE    EMPLOYEE    MEMBERS    SHOULD    GIVE    BIRTH    OR    SUFFER
MISCARRIAGE    VVITHOUT   THE    REQUIRED    CONTRIBUTIONS    HAVING    BEEN
REMITTED  FOR THEM  BY THEIR  EMPLOYERS TO THE  SSS,  OR VVITHOUT THE
LATTER  HAVING  BEEN  PREVIOUSLY  NOTIFIED  BY  Il±E  EMPLOYERS  0F  THE
TIME OF THE PREGNANCY, THE EMPLOYERS SHALL PAY TO THE SSS DAMAGES
EQUIVALENT  TO  THE  BENEFITS  VVHICH  SAID  EMPLOYEE  MEMBERS  WOULD
OTHERVVISE HAVE BEEN ENTITLED TO.
IN   CASE   THE   EMPLOYEES   QUALIFIES   QUALIFY   AS   A   SOLO   PARENTS   UNDER
REPUBLIC ACT  NO.  8972,  OR THE  SOLO  PARENTS'  \/\/ELFARE ACT,  THE  EMPLOYEE
THEY  SHALL  BE  PAID  THE  DAILY  MATERNITY  BENEFIT  FOR  ONE  HUNDRED  AND
FIFIY (150) DAYS.
AN  ADDITIONAL  MATERNITY  LEAVE  OF  THIRTY  (30)  DAYS,  VVITHOUT  PAY,  CAN  BE
AVAILED OF, AT THE OPTION OF THE FEMALE WORKERS AS LONG AS THE HEAD OF
THE AGENCY SHALL BE GIVEN DUE NOTICE,  lN WRITING, AT LEAST FORTY-FIVE (45)
DAYS BEFORE "E END OF THEIR ORDINARY MATERNITY LEAVE.
WORKERS  AVAILING   0F  THE   MATERNITY   LEAVE   PERIOD  AND   BENEFITS   MUST
RECEIVE NOT LESS THAN TVV0 THIRDS (2/3) OF THEIR REGULAR MON"LY WAGES.
EMPLOYERS FROM THE  PRIVATE SECTOR SHALL BE  RESPONSIBLE  FOR PAYMENT
OF THE SALARY  DIFFERENTIAL  BETVVEEN  THE ACTUAL CASH  BENEFITS  RECEIVED
FROM THE SOCIAL SECURITY SYSTEM  (SSS) BY THE COVERED FEMALE VVORKERS
AND THEIR AVERAGE \/VEEKLY OR  REGULAR WAGES,  FOR THE  ENTIRE  DURATION
OF   THE   ORDINARY   MATERNITY   LEAVE,    VVITH   THE    FOLLOVVING    EXCEPTIONS,
SUBJECT TO THE GUIDELINES TO BE ISSUED BY THE  DEP,A`P`T},iENT OF LA`BOP` ,A`ND
EMPLOYMENT (DOLE}:
(a)      THOSE OPERATING DISTRESSED ESTABLISHMENTS;
qu)      THOSE RETAIL/SERVICE ESTABLISHMENTS EMPLOYING NOT MORE THAN TEN
(10) WORKERS;
(c)      THOSE  CONSIDERED  AS  MICRO-BUSINESS  ENTERPRISES  AND  ENGAGED  IN
THE  PRODUCTION,   PROCESSING,   OR  MANUFACTURING  OF  PRODUCTS  OR
COMMODITIES   INCLUDING   AGRO-PROCESSING,   TRADING,   AND   SERVICES,
VVHOSE  TOTAL  ASSETS  ARE   NOT   11   MORE   THAN   THREE   MILLION   PESOS
(P3,OcO,OcO.cO); AND
(d)      THOSEVVHOAREALREADY PROVIDING SIMILAR OR MORETHAN THE BENEFITS
HEREIN  PROVIDED.  (131a)
ART.  152. NON-TRANSFERABILITY OF  BENEFITS.  THE  SSS  SHALL  PROMPTLY  PAY
THE   BENEFiTs pROviDED iN  THis  Ael  CODE  To  sucH   pERsoNs  As   MAy  BE
ENTITLED   THERETO   IN   AccORDANCE   VVITH   THE   pROvlsloNs   OF   THis   Ael
gQQE: PROV/DED,  THAT THE  SSS SHALL  PAY THE  RETIREMENT BENEFITS ON THE
DAY   OF   CONTINGENCY   TO   QUALIFIED   MEMBERS   VVHO   HAVE   SUBMITTED   THE
NECESSARY DOCUMENTS AT LEAST SIX (6) MONTHS BEFORE:  PROV/DEB, Fur?THER,
THAT THE BENEFICIAR¥lES VVHO ISAARE NATIONALS OF A FOREIGN COUNTR¥lES
\rvHicH DO NOT EXTENDEENEFITs TOTrfuLipiNO BEN-EFlciAR¥iEs REslDiNG iN I-=fiE
pHiLippiNEs, OR \+vHicH ARE NOT REcOGNizED By THE pHILippTirEs, SHALL NOT BE


ENTiTLEDToRECEivEANyBENEFiTuNDERTHisAe+CLQQE:pRov/DED,FUR"ER,
THAT  NOTVVITHSTANDING  THE  FOREGOING,  \/VHERE  THE  BEST  INTEREST  OF  THE
SSS VVILL BE SERVED, THE COMMISSION MAY DIRECT PAYMENTS VVITHOUT REGARD
TO NATioNALITy oR cOuNTRy OF REslDENCE: pROvtDED, FURTHER, THAT iF THE
REcipiENTs ARE MiNORs OR pERsONs INCAPABLE oF ADMINlsTERING THEIR Ovvr\I
AFFAIRS,   THE   COMMISsloN   SHALL  APPOINT   REPRESENTATIVES   UNDER   SUCH
TERMS  AND  CONDITIONS  AS  IT  MAY  DEEM  PROPER: PROV/DEO, FURTHER,  THAT
SUCH  APPOINTMENT  SHALL  NOT  BE  NECESSARY  IN  CASE  THE  RECIPIENTS  ARE
UNDER  THE  CUSTODY  OF  OR  LIVING  VVITH  THE  PARENTS  OR  SPOUSE  OF  THE
MEMBERS  IN  VVHICH  CASE  THE  BENEFITS  SHALL  BE  PAID  TO  SUCH  PARENTS  OR
SPOUSE, AS REPRESENTATIVE PAYEES OF THE RECIPIENTS.  SUCH BENEFITS ARE
NOT   TRANSFERABLE   AND   NO   POVVER   OF   ATTORNEY   OR   OTHER   DOCUMENT
EXECUTED BY THOSE ENTITLED THERETO IN FAVOR 0F ANY AGENT, ATTORNEY OR
ANY OTHER PERSON FOR THE COLLECTION THEREOF ON THEIR BEHALF SHALL BE
RECOGNIZED,    EXCEPT   VVHEN   THEY   ARE    PHYSICALLY    UNABLE   TO   COLLECT
PERSONALLY  SUCH   BENEFITS:  PROV/DED, FUR7T+Ef3,   THAT   IN   CASE   OF   DEATH
BENEFITS,  IF  NO  BENEFICIARY QUALIFIES  UNDER THIS ACT,  SAID BENEFITS SHALL
BE  PAID  TO  THE  LEGAL  HEIRS  IN  ACCORDANCE  VVITH  THE  LAW 0F  SUCCESSION.
PROV/OED,   FWALLY  THAT  THIS  BENEFIT  IS  OVER  AND  ABOVE  THAT  \/VHICH   IS
PROVIDED UNDER THIS CODE. (NEW)
Book Four
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
Title I
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Chapter I
MEDICAL AND DENTAL SERVICES
Art.153. First-Aid Treatment. Eyery Employers shall keep in bie THEIR establishment such
first-aid  medicines  and  equipment  as  the  nature  and  conditions  of  work  may  require,  in
accordance with such regulations as the Department of Labor and  Employment DOLE shall
prescribe.
Ibe Employers shall take steps for the training of a sufficient number of employees in first-aid
treatment. (162a)
Art.154. Emergency Medical and Dental Services. [t shall be the duty of every employers
to furnish hiaTHEIR employees in any locality with free medical  and dental attendance and
facilities consisting of:
(a)      The services of a full-time registered nurse when the number ofemployees exceeds fiifty
(50) but not more than two hundred (200) except when the employers does not maintain
hazardous workplaces,  in  which  case,  the  services  of a  graduate first-aider  shall  be
provided  for the  protection  of workers,  where  no  registered  nurses is ARE  available.
The Secretary of Labor and Employment SOLE shall provide by appropriate regulations
the services that shall be required where the number of employees does not exceed fiifty
(50)  and shall determine by appropriate order,  hazardous workplaces for purposes of
this Artic!epROVISION;
tt])      The services of a full-time  registered  nurse,  a  part-time  physician  and  dentist,  and  an
emergeney clinic, when the number of employees exceeds two hundred (200)  but not
more than three hundred (300); and
(c)      The services of a full-time physician, dentist and a full-time registered nurse as well as
a dental clinic and an infirmary or emergency hospital with one bed capacity for every


one hundred (100) employees when the number of employees exceeds three hundred
(300).
In cases of hazardous workplaces, no employer shall engage the services of a physician or a
dentist who cannot stay in the premises of the establishment for at least two (2) hours, in the
case of those engaged on  part-time basis,  and not less than eight (8) hours,  in the case of
those  employed  on  full-time  basis.  Vvhere  the  undertaking  is  non-hazardous  in  nature,  the
physician and dentist may be engaged on retained basis, subject to such regulations as the
SOT.®tpry of Lappr and .Emp!oym.ect SOLE may prescribe to i-nsure  immediate availabilfty of
medical and dental treatment and attendance in case of emergency. (163a)
Art.  155.  When  Emergency  Hospital  Not  Required.  The  requirement for an  emergency
hospital or dental clinic shall not be applicable in case there is a hospital or dental clinic which
js   accessible   from   the   emp!c`7'er's   EMPLOYERS'   establishment   and   be  THEY   makes
arrangements for the  reservation therein  of the necessary  beds and dental facilities for the
use of his THEIR employees.  (164a)
Art.156. Health Program. The Physicians engaged by af} employers shall, in addition to his
THEIR  duties  under  this  Chapter,  develop  and  implement  a  comprehensive  occupational
health program for the benefit of the employees of his THEIR employers.  (165a)
Art.157. Qualifications of Health Personnel. The physicians, dentists and nurses employed
by employers pursuant to this Chapter shall have the necessary training in industrial medicine
and  o.9c!+patior.al. sgfety. an_d  hearth.  Thesecretary  Of  Labor  and  Employmen+SOLE,  in
consultation  with  industrial  THE  NATIONAL  TRIPARTITE  INDUSTRIAL  PEACE  COUNCIL
(NTIPC),   medical,   and  ocoupational   safety  and   hearth   associations,   shall  establish  the
qualifications, criteria and conditions of employment of such hearth personnel. (166a)
Art.158. Assistance of Employer.  It shall  be the duty of any employers to provide all the
necessary   assistance   TO   INJURED   OR   SICK   EMPLOYEES   SUBJECT   TO   SUCH
REGULATIONS  AS  THE  SOLE  MAY  PROVIDE  to  ensure  the  adequate  and  immediate
medical  and  dental  attendance  and  treatment to  an  injured  or  sick employees  in  case  of
emergency.  (167a)
Chapter 11
OCCUPATIONAL HEALTH AND SAFETY
Art-..159.  Safety .apd  Health  Standards.  The  Secretary  of  Labor  and  Employment-SOLE
shall,  by  appropriate  orders,  set  and  enforce  mandatory  occupational  safety  and  hearth
standards to eliminate or reduce occupational safety and health hazards in all workplaces and
institute new,  and update existing,  programs to ensure safe and healthful working conditions
in all places of employment.  (168a)
±F.1_6.0. Research. It.sh?ll be tr[e responsibilfty of the Department of Labor and Employment
DOLE to conduct continuing studies and research to develop innovative methods, techniques
and approaches for dealing with occupational safety and health problems; to discover latent
diseases  by  establishing  causal  connections  between  diseases  and work  in  environmental
conditions;  and  to  develop  medical  criteria  which  will  assure  insofar  as  practicable  that ae
employees  will  NOT  suffer  impairment  or  diminution  in  hearth,  functional  capacfty,  or  life
expectancy as a result of his THEIR work and working conditions.  (169a)
Art: .161_. Tralnlng Programs. The Department of Labor and Employment DOLE shall develop
and implement training programs to inorease the number and competence of personnel in the
field of occupational safety and industrial health.  (170)


Art.162. Administration of Safety and Health Laws.
(a)      The  Department of LaborDOLE  shall  be  solely  responsible for the  administration  and
enforcement  of occupational  safety  and  hearth  laws,  regulations  and  standards  in  all
establishments  and  workplaces  wherever they  may  be  located.  However,  chartered
cities  may be allowed to conduct industrial safety inspections of establishments within
their   respective  jurisdictions   where   they   have   adequate   facilities   and   competent
personnel for the purpose as determined by the Department of Labor DOLE and subject
to national standards established by the latter.
th)     The secretary of Labor SOLE may, through appropriate regulations, collect reasonable
fees  for the  inspection  of steam  boilers,  pressure  vessels  and  pipings  and  electrical
installations, the test and approval for safe use of materials, equipment and other safety
devices and the approval of plans for such materials,  equipment and devices. The fee
so collected shall be deposited in the national treasury to the oredit of the occupational
safety  and  health  fund  and  shall  be  expended  exclusively  for the  administration  and
enforcement of safety  and other labor laws administered  by the  Department of Labor
DOLE.  (171a)
Title  11
EMPLOYEES COIVIPENSATION AND STATE INSURANCE FUND
Chapter I
POLICY AND DEFINITIONS
ART.  163.  Policy.  THE  STATE  AFFIRMS  LABOR  AS  A  PRIMARY  SOCIAL  ECONOMIC
FORCE.   IT  SEEKS  T0  IMPROVE  THE  QUALITY  OF  LIFE  OF  THE  EMPLOYEES  BY
ENSURING EQUITABLE ACCESS TO ADEQUATE AND QUALITY SOCIAL SERVICES AND
ASSETS.  IT SHALL PROTECT THE RIGHTS OF THE WORKERS AND PROMOTE THEIR
WELFARE, AND TOWARDS THIS END, SHALL:
(1)      BUILDAND SUSTAIN AMONG WORKERSAND EMPLOYERS THE OCCUPATIONAL
HEALTH AND SAFETY  PROGRAMS  IN  ORDER TO  PREVENT AND  MINIMIZE THE
INCIDENCE OF VVORK€ONNECTED INJURIES AND DISEASES;
(2)      ENSURE PROMPTANDADEQUATE COMPENSATloN FORWORKERSAND THEIR
DEPENDENTS  IN  THE  EVENT  OF  WORK-CONNECTED  DISABILITY  OR  DEATH;
AND
(3)      PROVIDE    OCCUPATIONALLY-DISABLED    VVORKERS    VVITH    REHABILITATION
SERVICES    TO    ENABLE    THEM    TO    BECOME    PRODUCTIVE    MEMBERS    OF
SOCIETY.  (new)
Art.164. Definition of Terms. As used in this Title, unless the context indicates otherwise:
(a)      "Code" means the REVISED Labor code of the philippines instituted under presidential
Decree Numbered Four Hundred Forty Two No. 442, as amended.
q])      "Commi.ssi.on"  means the  Employees'  Compensation  Commission  created  under this
Title.
(c)      "BOARD"     MEANS    THE     BOARD    OF    COMMISSIONERS     GOVERNING    THE
EMPLOYEES' COMPENSATION COMMISSION AND THE OCCUPATIONAL SAFETY
AND HEALTH CENTER.
(d)     "SSS" means the social seourity system.
(e)      "CEIVTEf7 MEANS THE OCCUPATIONAL SAFETY AND HEALTH CENTER.
(f)      "GS/S' means the Government service Insurance system.
te)      "BEG/OIVAL   Ex7EIVsroIV   uIvtTs"   MEANs   REGioNAL  AND   FiELD  OFFicEs   iN
PROVINCES OR CHARTERED CITIES ESTABLISHED BY THE COMMISSION.
th)     "System" meansthe sss orGSIS, asthe case may be.
(i)       "Emp/oyo/'  means  any  person,   natural  or  juridical,   employing  the  cervicee  of  the
emp!c`,'ee DOMESTIC OR FOREIGN, VVHO CARRIES 0N IN THE PHILIPPINES ANY
TRADE,  BUSINESS,  INDUSTRY,  UNDERTAKING OR ACTIVITY OF ANY KIND AND


USES THE  SERVICES  OF OTHER  PERSONS VVHO ARE  UNDER THEIR ORDERS
AS  REGARDS  THE  EMPLOYMENT,  INCLUDING  THE  NATIONAL  GOVERNMENT,
ITS    POLITICAL    SUBDIVIsloNS,    AGENCIES    OR    INSTRUMENTALITIES    AND
GOVERNMENTOVVNED OR CONTROLLED CORPORATIONS.
0)       "Emp/oyee"  means  any  person  compulsorily  covered  by the  GSIS  under REPUBLIC
ACT  NO.  8291,  OR  ANY  AMENDMENTS  THEREAFTER,  including  members  of the
Armed  Forces  of the  Philippines,  and  any  person  employed  a8  cocual,  emergency,
temporary,   6ub8titute   or  contractual,   or  any   person   THE   PHILIPPINE   NATIONAL
POLICE,  BUREAU  OF  FIRE  PROTECTloN,  AND  BUREAU  OF JAIL  MANAGEMENT
AND  PENOLOGY,  VVHO  IS  compulsorily covered  by the  SSS  under REPUBLIC ACT
NO.11199, OR ANY AMENDMENTS THEREAFTER.
u[)      "Person" means any individual,  partnership, firm, association, trust, corporation or legal
representative thereof.
q)       "Deper}dents" means the legitimate,  legitimated or legally adopted,  or  illegitimate child
who  is  unmarried,  not  gainfully  employed,  and  not  over t`,','ent`7'-c.n,e  EIGHTEEN  (18)
YEARS  of age  or over t`,I,Jertt`,J-One  EIGHTEEN  (18)  YEARS  of age  provided  he THE
DEPENDENT  is  incapacitated  and  incapable  of  self-support  due  to  a  physical  or
intellectual   disability   which   is   congenital   or   acquired   during   minority   PRIOR   TO
REACHING     THE     AGE     OF     EIGHTEEN     (18);     the     legitimate     spouse     AS
CONTEMPLATED   UNDER   THE   FAMILY  CODE   0F  THE   PHILIPPINES;   and   the
parents of said employees dependent upen bin THEM for support.
(in)    "Bene#ct.ar/.es" means the legitimate spouse until he,'she SAID SPOUSE remarries OR
COHABITS VVITH ANOTHER, and dependent LEGITIMATE, LEGITIMATED, LEGALLY
ADOPTED  AND  ILLEGITIMATE  children,  who  are  the  primary  beneficiaries.  In  their
absence, the dependent parents and subject to the restrictions imposed on dependent
children and legitimate descendants who are the secondary beneficiaries.
(n)      "MroRK-COIVIVEC7lED /n/.uly' means any harmful change in the human organism from
any accident arising out of and in the course of the employment.
(o)      "WORK-COIVIVEC7ED    S/.ckness"    means    any    CONDITION     LISTED    BY    THE
COMMISSION  as an occupational  disease OR A COMPENSABLE  VVORK-RELATED
ILLNESS,   or  any  illness  caused  by  employment,   subject  to  proof  that  the  risk  of
contracting the same is inoreased by working conditions.
(p)      "Death" means loss of life resulting from woRK€ONNECTED injury or sickness.
(q)      "D/.sabt./fty'  means  loss  or  SUBSTANTIAL  REDUCTION  0F  EARNING  POVVER  DUE
TO A \/VORK-CONNECTED SICKNESS OR INJURY.
(r)      "Compensaf7.on"  means  all  payments  made  under this  Title  for  income  benefits  and
medical or related benefits.
(s)      "LOSS-OF-/ncome beneff` means all payments made underthis Title to the employees
or his THEIR dependents FOR TEMPORARY OR PERMANENT DISABILITY DUE TO
WORK-CONNECTED SICKNESS OR INJURY.
(t)       "Wed/.ca/ ber}eff' means all payments made under this Title to the providers of medical
care, rehabilitation services and hospital care.
(u)      "Re/ated ber}effl' means all payments made underthis Title for appliances and supplies.
(v)      "App//.ances" means crutches, artificial aids and other similar devices.
(w)     "Supp//.es" means medicine and other medical, dental or surgical items.
(x)      "Hcspita!"  "WED/GAL  FAG/i/7-Y'  means  any  HOSPITAL  OR  CLINIC,  government  or
private,  an active member in good standing of the  Philippine  Hospital Association and
acoredited LICENSED by the Commission DEPARTMENT OF HEALTH.
ly)      "Ptryst.ci.an" means any doctor of medicine duly licensed to practice in the  Philippines,
an   active   member   in   goed   standing   of  the   Philippine   Medical   Association   and
LICENSED  BY  THE  PRC  AND  accredited  by  the  Commie6ion  DEPAR"ENT  OF
HEALTH AND PHILHEALTH.
(z)      "Wage5'  or "Sa/aly',  insofar as they  refer to the  computation  of benefits,  means the
monthly  remuneration  (or  compensation)  as  defined  under  Republic  Act  No.11J61
11199,  as amended, for SSS and  Preeider,tia!  Decree  Ne.  1.1.46 REPUBLIC ACT NO.


8291, as amended, for GSIS, respectively, except that part in excess of Three Thousand
Pesos (P3,000.00).
(aa)    "Month/y sa/any credff' means the wage or the salary base for contributions as provided
in Republic Act Numbered Eleven hundred si]cty one, a8 amended No.11199, or wages
or salary.
tl]b)   "Average month/y sa/any credi'  in the case of the  SSS  means the  result obtained  by
dividing  the  sum  of the  monthly  salary  credits  in  the  sixty-month  period  immediately
preceding the semester of death or permanent disability by sixty (60), except where the
month of death or permanent disabilfty falls within eighteen (18) calendar months from
the month of coverage,  in which case it is the result obtained by dividing the sum of all
monthly salary oredits paid prior to the month of the contingency by the total number of
calendar months of coverage in the same peried.
(cc)    "Average dai./y sa/any cred#' in the case of the SSS means the result obtained by dividing
the  sum   of  the  six  (6)   highest  monthly  salary  oredits  in  the  twelve-month   period
immediately preceding the semester of sickness or injury by one hundred eighty (180),
except where the month of injury falls within twelve (12) calendar months from the first
month  of coverage,  in  which  case  it  is  the  result  obtained  by  dividing  the  sum  of all
monthly salary credits by thirty (30) times the number of calendar months of coverage
in the peried.
In the case of the GSIS, the average daily salary oredit shall be the actual daily salary or wage,
or the monthly salary or wage divided by the actual number of working days of the month
of contingency.
(dd)   "Quarfe/'  means a  period  of three  (3)  consecutive  months ending  on the last days of
March, June, September and December.
(ee)    "Semeste/' means a period of two consecutive quarters ending in the quarter of death,
permanent disability, injury or sickness.
(ff)     "Rap/acemenf rafi.o" ls the sum of twenty percent (20%) and the quotient obtained by
dividing three hundred (300) by the sum of three hundred forty (340) and the average
monthly salary oredit.
(gg)    "Credifed years of servt.ce",  for a member covered  prior to January  1975,  ls nineteen
hundred seventy-five (1975)  minus the calendar year of coverage,  plus the number of
calendar years in which six (6) or more contributions have been paid from January, 1975
up to the calendar year containing the semester prior to the contingency. For a member
covered on or after January 1975, the number of calendar years in which six (6) or more
contributions  have  been  paid  from  the  year  of  coverage  up  to  the  calendar  year
containing the semester prior to the contingency.
thh)   "Month/y /.ncome beneff' means the amount equivalent to one hundred ffteen percent
(115%) of the sum of: The average monthly salary oredit multiplied by the replacement
ratio;  and One and a  half percent (1.5%) of the average monthly salary credit for each
credited year of service in excess of ten (10) years; Prov/.bed, That the monthly income
benefit shall in no case be less than Two Hundred Fifty Pesos (P250.00).
(ii)     "7iEMpofIARy To7AL D/SAB/i/ry' MEANS THE CoMPLETE iNABiLiTy To WORK
FOR A TEMPORARY PERIOD UNDER THIS TITLE.
Oj)      "PEf?MAIVEIV7- PART/AL  D/SAB/i/7Y  MEANS  THE  LIMITED  USE  OF  A  PART  OF
THE    BODY   AFTER   RECOVERY   FROM   VVORK-CONNECTED   SICKNESS   OR
INJURY.
qu)   "pERMArvEIvr 7-OTAL D/SAB/i/7y MEANS THE CoMPLETE iNABiLiTv To WORK
UNDER THIS TITLE, UNLESS COMPLETE RECOVERY OCCURS AS CERTIFIED BY
THE SYSTEM.
ql)      "COIVTR/BU7loM  MEANS  THE  AMOUNT  REMITTED  0R  TO  BE  REMITTED  BY
EMPLOYERS TO THE STATE  INSURANCE  FUND FOR EACH  EMPLOYEE  UNDER
THEIR EMPLOY.
(mm) "FurvD" MEANS THE STATE INSURANCE FUND.


(nn)   "OCCUPA770IVALLy D/SABLED  M/ORKERS" OR "ODW  REFERS TO EMPLOYEES
VVHO   SUSTAINED   A   DISABILITY   AS   A   RESULT   OF   A   WORK-CONNECTED
SICKNESS 0R INJURY.
(oo)   "SAFE7Y   AIVD    HEALTIT    REFERS    TO   THE    INTERNATIONALLY   ACCEPTED
DEFINITloN OF OCCUPATIONAL SAFETY AND HEALTH.  (173a)
Chapter 11
COVERAGE AND LIABILITY
ART.165. COVERAGE.
(a)      Coverage  in  the   State  Insurance   Fund   PROGRAM   shall   be  compulsory  upon  all
employers and their employees not over Sixty (60) year6 of age;
th)      Compulsory coverage oftho employers during the effectivfty ofthi6 Thle shall take effect
on the first day of his BUSINESS operation,  and that of the employees,  on the date of
his THEIR employment; AND
(c)      THE   PROGRAM   MAY  COVER   LAND-BASED  OVERSEAS   FILIPINO  WORKERS,
SELF-EMPLOYED, AND \/VORKERS IN THE INFORMAL SECTOR, SUBJECT TO THE
REGULATIONS  AS  MAY  BE  PRESCRIBED  BY  THE  COMMISSION.   (174a,   175a,
176a)
Art.  166.  Registration. Each  Employers  and his THEIR employees  shall  register with the
System   in   accordance  with   ts  THE   regulations  AS   MAY   BE   PRESCRIBED   BY  THE
COMMISSION.  (177a)
Art.167.  Limitation of Liabilfty. The State Insurance Fund shall be liable for compensation
to  the  employees  or  his-THEIR  dependents,  except  when  the  disabilfty  or  death  was
occasioned  by  the  employee'c  EMPLOYEES'  intoxication,  willful  intention  to  injure  or  kill
himself THEMSELVES  or  another,  notorious  negligence,  or  otherwise  provided  under this
Title.  (178a)
ART.   168.   NON-EXCLUSIVITY  OF   BENEFITS.   THE   PAYMENT  OF   COMPENSATION
UNDER  THIS  TITLE  SHALL  NOT  BAR  THE  RECOVERY  OF  BENEFITS,  VVHICH  THE
WORKERS,  lN  BOTH  GOVERNMENT AND  PRIVATE  SECTOR,  MAY  BE  ENTITLED  TO
UNDER OTHER SOCIAL SECURITY LAVVS VVHOSE  BENEFITS ARE ADMINISTERED  BY
THE SYSTEM OR BY OTHER GOVERNMENT AGENCIES.  (new)
Ai+ 169. Liability of Third Parties.
(a)      When the disabilfty or death is caused by circumstances creating a legal liability against
a third party,  the disabled employees or the dependents,  in case of his-THEIR death,
shall be paid by the System under this lltle.  In case benefit is paid under this Title, the
System shall be subrogated to the rights of the disabled employees or the dependents,
in case of his-THEIR death, in accordance with the general law.
(b)      \/Vhere the System recovers from such third party damages in excess of those paid or
allowed  under this Title, such excess shall  be delivered to the disabled employees or
other persons entitled thereto, after deducting the cost of proceedings and expenses of
the System. (180a)
Art.  170.  Depri\/ation  of the  Benefits.  Except  as  otherwise  provided  under this  Thle,  no
contract, regulation or device whatscever shall operate to deprive the employees or his THEIR
dependents of any part of the income benefits and medical or related services granted under
this Title. Existing medical services being provided by the employers shall be maintained and
continued to be enjoyed by their employees.  (181a)


Chapter Ill
ADMINISTRATION
Art.171. Employees' Compensation Commission. THE EMPLOYEES' COMPENSATION
COMMISSION,   CREATED  UNDER  PRESIDENTIAL  DECREE   NO.   626,  AS  AMENDED,
HEREBY  CONTINUES  TO  EXIST to  initiate,  rationalize,  and  coordinate the  policies  of the
employers'  compensation  program,  the  Employees'  Compencation  Commission  is  hereby
created tc be.
(a)      The  Commission  shall  have the status  and  category  of a  government  OVVNED AND
CONTROLLED  corporation,  and  ft  is  hereby  deemed  attached  to  the  Department  of
laberDOLE for policy coordination and guidance.
tt])      THE  CORPORATE  POWERS AND  FUNCTIONS  OF THE  COMMISSION  SHALL  BE
VESTED IN AND EXERCISED BY THE BOARD OF COMMISSIONERS, composed of
term crt!`,'THE SOLE AS EX OFF/C/O CHAIR, THE  EXECUTIVE  DIRECTOR OF THE
ECG SECRETARIAT AS THE VICE-CHAIR,  THE GSIS PRESIDENT AND GENERAL
MANAGER,   THE   SSS   PRESIDENT   AND   CHIEF   EXECUTIVE   OFFICER,   THE
PHILIPPINE  HEALTH   INSURANCE  CORPORATION  CHAIR,  THE  CIVIL  SERVICE
COMMISSION  CHAIR,  AND  TVVO  (2)  APPOINTIVE  MEMBERS,   ONE  OF  WHOM
SHALL   REPRESENT  THE  EMPLOYEES,  AND  THE  OTHER,   THE   EMPLOYERS,
BOTH SHALL BE APPOINTED BY THE PRESIDENT OF THE PHILIPPINES.
THE EXECUTIVE DIRECTOR OF THE ECC SECRETARIAT SHALL BE APPOINTED
BY THE PRESIDENT OF THE PHILIPPINES.
THE APPOINTIVE MEMBERS SHALL BE CHOSEN  FROM AMONG THE NOMINEES
OF   WORKERS'   AND   EMPLOYERS'   ORGANIZATIONS,   WHO   SHALL   HAVE   AT
LEAST   FIVE   (5)   YEARS   EXPERIENCE   IN   WORKMEN'S   COMPENSATION   OR
SOCIAL SECURITY PROGRAMS.
THE  THREE  (3)  APPOINTIVE  MEMBERS  SHALL  HOLD  OFFICE  FOR  ONE  (1)  YEAR,
UNLESS   SOONER   REMOVED   FOR   CAUSE;    PROV/DEB,    HOWEVER,    THAT   THE
APPOINTIVE  MEMBER  SHALL  CONTINUE  T0  HOLD  OFFICE  UNTIL THE  SUCCESSOR
IS   APPOINTED.   ANY   VACANCY   IN   THE    BOARD   OTHER   THAN   THROUGH   THE
EXPIRATION   OF   THE   TERM   SHALL   BE   FILLED   IN   THE   MANNER   IN   WHICH   THE
ORIGINAL APPOINTMENT WAS MADE AND THE APPOINTEE SHALL SERVE ONLY THE
UNEXPIRED TERM OF THEIR PREDECESSOR.
THE  PRESENCE  OF  MORE  THAN  HALF  OF  THE  MEMBERS  SHALL  CONSTITUTE  A
QUORUM.   IN   THEIR  ABSENCE,   ANY  APPOINTIVE   MEMBER   MAY   DESIGNATE   AN
OFFICIAL   OF   THE   INSTITUTION   THEY   SERVE   ON   FULL-TIME   BASIS   AS   THEIR
REPRESENTATIVE TO ACT IN THEIR BEHALF.
THE  EX  OFF/C/O  MEMBERS  OF  THE  BOARD  MAY  DESIGNATE  THEIR  RESPECTIVE
ALTERNATES WHO SHALL BE THE OFFICIALS NEXT-lN-RANK TO THEM AND WHOSE
ACTS  SHALL  BE  CONSIDERED THE ACTS  OF THEIR  PRINCIPALS.  (lN ACCORDANCE
WITH SEC.14 0F REPUBLIC ACT NO.10149)


THE    APPOINTIVE     MEMBERS     SHALL     RECEIVE     COMPENSATION,     PER     DIEM,
ALLOWANCES AND INCENTIVES AS MAY BE PROVIDED BY LAW.
(c)      THE COMMISSION SHALL GOVERN THE OCCUPATloNAL SAFETY AND HEALTH
CENTER.
(d)      THE   COMMISSION    SHALL    ESTABLISH    REGIONAL   AND    FIELD   OFFICES    IN
PROVINCES     OR     CHARTERED     CITIES,     OR    VVHEREVER     IT     IS     DEEMED
NECESSARY, TO BRING ITS SERVICES CLOSER TO THE STAKEHOLDERS. (182a)
ArL 172. Powers and Dtities FUNCTIONS. The Commission shall have the following powers
and d¥ties FUNCTIONS:
(a)     =8:%FESS 6nindTf#Ea+rat£ECE %%#!88£E {rfsm'oaE fffif!LEffioTy°E ±NST!AOTEPAENNDSASTi8E
PROGRAM, AS FOLLOVVS:
(1)      PREVENTloN.   THE  ADEQUATE   OCCUPATloNAL   HEALTH  AND   SAFETY,
AND  THE  ACCIDENT  PREVENTION  IN  THE  WORKPLACE  BASED  ON  THE
STUDIES AND RESEARCHES DONE BY THE CENTER;
(2)      COMPENSATION.   THE   FORMULATION   OF   COMPENSATION   PACKAGES
OTHER    THAN    AND/OR    IN    ADDITION    TO    THE    BENEFITS    ALREADY
PROVIDED FOR IN THIS TITLE; AND
(3)      REHABILITATION. THE CONTINUING REHABILITATION SERVICES FOR THE
ODW FOUND TO BE ENTITLED TO COMPENSATION BENEFITS; INCLUDING,
lF  PRACTICABLE,   THE  ESTABLISHMENT  OF  REHABILITATION  CENTERS
EQUIPPED   AND   STAFFED   TO   PROVIDE   A   BALANCED   PROGRAM   OF
REMEDIAL TREATMENT,  VOCATIONAL ASSESSMENT AND  PREPARATION
DESIGNED TO MEET THE INDIVIDUAL NEEDS OF EACH ODW TO RESTORE
THEM  TO  SUITABLE  EMPLOYMENT,  SUCH  AS ASSISTANCE  TO  DEVELOP
THEIR MENTAL, VOCATIONAL, OR SOCIAL POTENTIAL.
Cb)     To determine the rate of contribution  payable  by an employer whose  records show a
high frequeney  Of work accidents  or occupational  diseases  due to failure  by the said
employer to observe adequate safety measures;
(c)      To approve rules and regulations governing the processing of claims and the settlement
of disputes arising therefrom as prescribed by the System;
(d)     To initiate policies and programs toward adequate occupational health and safety and
accident prevention in the working environment, rehabilitation other than those provided
for  under Article  4ee  185  hereof,  and  other  related  programs  and  activities,  and  to
appropriate funds therefor;
(e)      To  make  the  necessary  actuarial  studies  and  calculations  concerning  the  grant  of
constant   help   and   income   benefits   for   permanent   disability   or   death,   and   the
rationalieation  of the  benefits  for  permanent  disability  and  death  under the  Title  with
benefits   payable   by   the   System   for   similar   contingencies;    Provi.ded,   That   the
Commission  may  upgrade  benefits  and  add  ne\^r  ones;  Prov;.bed,  Further,  That  the
actuarial stabilfty of the State Insurance Fund shall be guaranteed BY THE NATIONAL
GOVERNMENT;  Provi.bed,   MOREOVEf?,  That  such  inoreases  in  benefits  shall  flct
require an`,' RESULT TO CORRESPONDING increases in EC contribution; Pf?OV/DEB,
F/MLLY,    THAT    IF   THEY    FALL    UNDER    PARAGRAPH    (a)       HEREOF,    THE
RESULTING   INCREASE   IN   EC   CONTRIBUTION   SHOULD   BE   BORNE   BY  THE
EMPLOYER;
(f)       To appoint the personnel  of its staff,  sudyect to civil  service law and  rules,  but exempt
from regulations ON SALARY STANDARDIZATION;
(g)      To adopt annually a budget of expenditures of the commission and its staff chargeable
against the State Insurance Fund: Provt.ded, That the SSS and GSIS shall advance on
a quarterly basis the remittances of allotment of the loading fund for the Commission's


operational   expenses   based   on    its   annual   budget   as   duly   approved    by   the
DEPARTMENT of Budget and Management;
th)     To  have  the  power  to  administer  oath  and  affirmation,  and  to  issue  subpoena  ad
tesfff7candum  and  subpoena  duces  fecum  in  connection  with  any  question  or  issue
arising from appealed cases under this Title;
(i)       Tosueandbesuedincourt;
0)       To  acquire  property,  real  or  personal,  which  may  be  necessary  or expedient for the
attainment of the purposes of this Title;
0{)     To enter into agreements or contracts for such services and as may be needed for the
proper, efficient and stable administration of the program;
(I)       To  perform  such  other  acts  as  it  may  deem  appropriate  for  the  attainment  of  the
purposes  of the  Commission  and  proper enforcement  of the  provisions  of this  Title.
(183a)
Art.173. Management of Funds. All revenues collected by the System under this Title shall
be deposited, invested, administered and disbursed in the same manner and under the same
conditions,  requirements  and  safeguards  a8  provided  by  Republic  Act  Numbered  Eleven
Hundred  Sixty .One,  a6 amended,  with  regard to such  other funds as  are thereunder being
paid to or collected by the SSS and GSIS, respectively: Provt.ded, That the Commission, SSS
and GSIS may disburse each year not more than twelve percent (12%) of the contribution and
investment  earnings  collected  for  operational  expenses,  including  occupational  hearth  and
safety programs,  incidental to the canying out of this Title.  (184a)
Art.174.  Investment of Funds.  Provisions of existing  laws to the contrary notwithstanding,
all revenues as are not needed to meet ourrent operational expenses under this Title shall be
accumulated  in  a  fund  to  be  known  as  the  State  Insurance  Fund,  which  shall  be  used
exclusively for payment of the benefits under this Title,  and no amount thereof shall  be used
for any  other  purpose.  AIl  amounts  accruing  to the  State  Insurance  Fund,  which  is  hereby
established  in  the  SSS  and  GSIS,   respectively,  shall  be  deposited  with  any  authorieed
depository bank approved  by the Commission,  or invested with due and prudent regard for
the liquidfty needs of the System.  (185)
Art.175. Settlement of Claims. The System shall have original and exclusive jurisdiction to
settle  any  dispute  arising  from  this  Title  with  respect  to  coverage,  entitlement to  benefits,
collection  and  payment  of contributions  and  penalties  thereon,  or any  other  matter  related
thereto, subject to appeal to the Commission, which shall decide appealed cases within twenty
(20) working days from the submission of the evidence. (186)
Art.176.  Review.  Decisions,  orders or resolutions of the Commission  may be reviewed  on
certiorari by the Supreme Court on question of law upon petition of an aggrieved party within
ten (10) days from notice thereof. (187)
Art.177. Enforcement of Decisions.
(a)      Any decision, order or resolution of the commission shall become final and executory if
no appeal is taken therefrom within ten (10) days from notice thereof. All awards granted
by the Commission in cases appealed from decisions of the System  shall be effected
within fifteen days from receipt of notice.
(b)      ln  all  other  cases,  decisions,  orders  and  resolutions  of the  Commission  which  have
become final  and  executory shall  be  enforced  and  executed  in  the  same  manner as
decisions of the Court of First Instance REGIONAL TRIAL COURT, and the Commission
shall have the pewer to issue to the city or provincial sheriff or to the sheriff whom it may
appoint,  such  writs  of execution  as  may  be  necessary  for the  enforcement  of  such
decisions,  orders  or  resolutions,  and  any  person  who  shall  fail  or  refuse  to  comply
therewith  shall,  upon  application  by the Commission,  be punished  by the proper court
for contempt. (188a)


Chapter lv
CONTRIBUTIONS
Art.178. Employer's contributions.
(a)      Under such  regulations as the System COMMISSION  may prescribe,  beginning  as of
the  last  day  of the  month  when  an  enip!c`7'ee's  EMPLOYEES'  compulsory  coverage
takes  effect  and  every  month  thereafter  during  his  THEIR  employment,  his  THEIR
employer shall remit to the System a contribution equivalent to one percent of his THEIR
monthly salary oredit.
(b)      The  rate  of contribution  shall  be  reviewed  periodically  and,  subject to  the  limitations
herein  provided,  may be revised as the experience in  risk,  cost of administration,  and
actual or anticipated as well as unexpected losses, may require.
(c)      Contributions  under this Title  shall  be  paid  in their entirety by the employers  and  any
contract or device for the deduction of any portion thereof from the wages or salaries of
the employees shall be null and void.
(d)      When  a  covered  employees  dies,   becomes  disabled   or  is  ARE  separated  from
employment,   his  THEIR   emp!c`,'er's   EMPLOYERS'   obligation   to   pay   the   monthly
contribution  arising  from  that  employment  shall  cease  at  the  end  of  the  month  of
contingency  and  during  such  months  that  he+s  THEY  ARE  not  receiving  wages  or
salary.
(e)      FOR   VOLUNTARY    MEMBERS    UNDER   THE    PROGRAM,    THE    EMPLOYERS'
CONTRIBUTloN SHALL BE PAID IN  ITS ENTIRETY BY THE MEMBERS OR MAY BE
SUBSIDIZED SUBJECT TO THE REGULATIONS AS MAY BE PRESCRIBED BY THE
COMMISSION.  (189a)
Art.179. Government guarantee. The  Republic of the  Philippines guarantees the benefits
under this  Title,  and  accepts  general  responsibilrty  for the  solvency  of the  State  Insurance
Fund.  In case of any deficiency,  the same shall  be  covered  by supplemental  appropriations
from the national government. (190)
Chapter V
MEDICAL BENEFITS
Art.180. Ivledical services. Immediately after an employees contracts sickness or sustains
aft injuriES, be THEY shall  be provided  by the System during the subsequent period  of his
THEIR  disabilfty  with  such  medical  services  and  appliances  as  the  nature  of  his  THEIR
sickness or injury and  progress of his THEIR recovery may require,  subject to the expense
limitation prescribed by the Commission.
THE COMMISSION MAY DETERMINE THE SCHEME OF PAYMENT DEPENDING 0N THE
UTILIZATION  FOR SUCH SERVICES.  (191a)
Art.  181.  Liability.  The  System  shall  have  the  authority  to  choose  or  order  a  change  of
physician,   hospital  or  rehabilitation  facilfty  for  the  employee,   and  shall  not  be  liable  for
compensation  for  any  aggravation   of  the   employee's   injury   or  sickness   resulting   from
unauthorized changes by the employee of medical services,  appliances, supplies,  hospitals,
rehabilitation facilities or physicians,  SUBJECT T0 THE  REGULATIONS PRESCRIBED  BY
THE COMMISSION.  (192a)
Art.182. Attending Physician. Any Physicians attending an TO injured or sick employees
shall  comply  with  all  the  regulations  of the  S`,'stem  COMMISSION  and  submit  reports  in
prescribed  forms  at  such  time  as  may  be  required  BY  THE  SYSTEM  OR  COMMISsloN
concerning his THEIR condition or treatment. All medical information relevant to the particular
injury or sickness  shall  on  demand  be  made  available to the  employee or the  System.  No


information developed in connection with treatment or examination for which compensation is
sought shall be considered as privileged communication. (193a)
Art.183.  Refusal of examination or treatment.  If the employees unreasonably refuses to
submit  to  medical  examination  or treatment,  the  System  shall  stop  the  payment  of further
compensation during such time as such refusal continues. What constitutes an unreasonable
refusal  shall  be  determined  by  the  System  which  may  on  its  own  initiative  determine  the
necessity, character and sufficiency of any medical services furnished or to be furnished. (194)
Art.184. Fees and Other Charges. All fees and other charges for hospital services, medical
care and  appliances  including  professional fees shall  not be  higher than those  prevailing  in
wards of ho6pital6 for 8imilar 8ervice6 to injured or sick peroonc in general and shall be subject
to the regulations of the Commission. Profee8ional fees Shall only be appreciably higher than
I (195a)
Art.185. Rehabilitation Services.
(ci)   The   Sy8tem   shall,   a8   Soon   i
rehabilitation  of  injured  and  handi{
ssr,'ices, `,',Thich sha!! ccrtsi3t cf met
!o  meet  the  individual  nced8  of  each   handicapped  employee  to  re6tore  him  to  Suitable
9mployment,  including a66istance aG may be within  it6 recource6, to help each rehabiliteo to
]eve]op his mental, vocational or Social potential.
(a)     THE COMMISSION SHALL ESTABLISH A REHABILITATION PROGRAM DESIGNED
TO MEET THE INDIVIDUAL NEEDS OF VVORKERS VVITH DISABILITY  TO RESTORE
THEIR  EARNING  CAPACITY  0R  IMPROVE  "EIR  PHYSICAL  FUNCTIONING,  lN
CASES OF PERMANENT TOTAL DISABILITY. IN THIS REGARD, THE COMMISsloN
MAY  MAINTAIN  OR  AVAIL  OF  THE  SERVICES  OF  SPECIALIZED  PRIVATE  AND
PUBLIC  REHABILITATION  FACILITIES  0R  CENTERS  THAT  CAN  PROVIDE  THE
NECESSARY ASSISTANCE, SUCH AS, BUT NOT LIMITED TO MEDICAL, SURGICAL
0R HOSPITAL TREA"ENT, INCLUDING APPLIANCES, THAT ARE APPROPRIATE
TO THE NEEDS OF   V\/ORKERS VVITH DISABILITY.
Cb)     ARRANGEMENTS    FOR   PLACEMENT   OF   VOCATIONALLY   OR   TECHNICALLY
TRAINED  WORKERS  VVITH  DISABILITY  SHALL  BE  AN  INTEGRAL  PART  OF  THE
REHABILITATION      PROGRAM.      AS      INCENTIVE      T0     THE      PARTICIPATING
EMPLOYERS,     THE    COMMISSION     MAY     ENTER     INTO    AGREEMENTS    T0
PARTICIPATE IN THE PAYMENT OF WAGES OF THE PLACED ODW, UNDER SUCH
RULES  AND  REGULATIONS  PRESCRIBED  BY  THE  COMMISSION  SUBJECT  T0
THE VIABILllY OF THE STATE INSURANCE FUND.  (196a)
Chapter VI
DISABILITY BENEFITS
Art.186. Temporary Total Disability.
(a)      Under such  regulations  as the  Commission  may  approve,  af}y employees  under this
lltle who sustains an  injury or contracts sickness resulting  in temporary total disability
shall  for each  day  of such  a  disabilfty  or fraction  thereof,  be  paid  by the  System  an
income  benefit equivalent to  ninety  percent  (90%)  of his THEIR  average  daily  salary
credit,  Subject to the following  conditions:  Pf]OV/DED,  rHA7-the  daily  income  beneffl
shall  not be paid for a  continuous  period  longer than  one hundred twenty  (120)  days,
except as otherwise provided for in the Rules,  and the System shall  be notified of the
injury or sickness.


(b)      The   monthly   income   benefit   shall   be   in   accordance   with   the   regulations   of  the
Commission.  (197a)
Art.187. Permanent Total Disability.
(a)      Under such  regulations  as the Commission  may  approve,  apemployees  under this
Title who contracts sickness or sustain an injury resulting in his THEIR permanent total
disability shall, for each month until his THEIR death, be paid by the System during such
a disability, an amount equivalent to the monthly income benefit, plus ten percent (10%)
thereof for each  dependent child,  but not exceeding  five  (5),  beginning with  youngest
and without  substitution
_      _    _  _  _  _  _  _-r_  __,    __  _.  ._ .... _.    -`--__  -_-__  T._'  '_._.I_'-'   -' .--,. '--r,`,'l  ,+r,I,,\,,\+I   \,,   ,|||\J
Decree.
(b)      The  monthly  income benefit shall  be guaranteed for five  (5)  years  REGARDLESS OF
WHETHER THE  EMPLOYEES ARE GAINFULLY EMPLOYED OR RECOVER FROM
THEIR   DISABILITY   OR   FAIL   TO   PRESENT   THEMSELVES   TO   THE   SYSTEM.
HOWEVER,  THE  SAME  and  shall  be  suspended  if the  employees  ifrARE  gainfully
employed,  or  recovers from  his  THEIR  permanent  total  disability,  or fails  to  present
hifF}seJf  THEMSELVES for examination at least once a year upon notice by the System,
except as otherwise provided for in other laws, decrees, orders or Letters of Instructions.
(c)      The following disabilities shall be deemed tcta! ar:c! permanent TOTAL DISABILITY:
1.Te=xT=i{h#ca[:?nj,:,:sbe"jp¥c!,::t±gfccr::t{:::=:::siormore'thaPr-eneh¥ndredt,A,Jentydaya
(1)      Complete loss of sight of both eyes;
(2)      Loss of two limbs at orabovethe ankle orwrist;
(3)      Permanent complete paralysis of two limbs;
(4)      Brain injury resulting in incurable imbecility or insanity; an€l
(5)      PROFOUND, SEVERE HEARING LOSS ON BOTH EARS; AND
(6)     Such cases as determined by the Medical Director of the System and approved by the
Commission.
(d)      The number of months of paid coverage shall be defined and approximated by a formula
to be approved by the Commission.  (198a)
Art.188. Permanent Partial Disability.
(a)      Under such regulation as the commission may approve,  any employee underthis Title
who  contracts  sickness  or  sustains  an  injury  resulting  in  permanent  partial  disability
shall, for each month not exceeding the period designated herein, be paid by the System
9u_ring such  a disability an  income benefit for permanent total  dicabilfty  EQUIVALENT
TO THE MONTHLY INCOME BENEFIT.
(b)      The  benefit  shall  be  paid  for  not  more  than  the  period  designated  in  the  following
schedule:
Complete and permanent
No. of Months
loss of the use of
One thumb
10
One index finger
8
One middle finger
6
One ring finger
5
One little finger
3
One big toe
6


Any toe
3
One arm
50
One hand
39
One foot
31
One leg
46
One ear
10
Both ears
20
Hearing of one ear
10
Sight of one eye
25
(c)      A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow shall
be considered as a loss of the arm. A loss of an ankle shall be considered as a loss of
the foot,  and a loss of a knee shall be considered as a loss of the leg. A loss of more
than one joint shall be considered as a loss of the whole finger or toe, and a loss of only
the first joint shall be considered as a loss of one-half of the whole finger or toe: Prov;.bed,
That such  a  loss shall  be either the functional  loss  of the  use or physical  loss of the
member.  (As amended by See. 7,  P.D.1368)
(d)      ln case of permanent partial disabilfty less than the total loss of the member specified in
the preceding paragraph, the same monthly income benefit shall be paid for a portion of
the period established for the total loss of the member in accordance with the proportion
that the partial  loss  bears to the total  loss.  If the result is a decimal fraction,  the same
shall be rounded off to the next higher integer.
(e)      ln cases of simultaneous loss of more than one member or a part thereof as specified
in this Article, the same monthly income benefit shall be paid for a period equivalent to
the sum  of the periods established for the loss of the member or a part thereof.  If the
result is a decimal fraction, the same shall be rounded off to the next higher integer.
(f)        ln cases of injuries or illnesses resulting in a permanent partial disabilfty not listed in the
preceding schedule, the benefit shall be an income benefit equivalent to the percentage
of the permanent loss of the capacity for work. (As amended by See. 7, P.D.  1368)
(g)      Under such regulations as the commission may approve, the income benefit payable in
case of permanent partial  disability  may be  paid  in  monthly  pension  or in  lump sum  if
the period covered does not exceed one year. (As added by Sec. 7, P.D.1368) (199a)
Chapter VII
DEATH BENEFITS
Art.189. Death.
(a)      Under such regulations as the Commission may approve,  the System shall pay to the
primary  beneficiaries  upon  the  death  of the  covered  employees  under this  Title  an
amount equivalent to his THEIR monthly income benefit, plus ten percent (10%) thereof
for each dependent child,  but not exceeding five (5),  beginning with the youngest and
without subetitution, except as provided for in paragraph ti) Of Article 166 PARAGRAPH
(M) OF ARTICLE 164 hereof.   However,  if h.e r,as THEY HAVE no primary beneficiary,


the System shall pay to his THEIR secondary beneficiaries. The monthly income benefit
shall be guaranteed for five years and shall not be less than fifteen thousand pesos.
HOWEVER, SHOULD THE SURVIVING SPOUSE REMARRY, THEY SHALL NOT BE
ENTITLED TO RECEIVE THE BENEFITS.  (As amended by See. 4,  P.D.1921)
(b)      Under such regulations as the Commission may approve, the System shall pay to the
primary beneficiaries upon the death of a covered employees who are under permanent
total disability under this Title,  eighty percent (80%) of the monthly income benefit and
his THEIR dependents to the dependent's pension;  Provi'ded, That the marriage must
have  been  validly  subsisting  at the time of disability:  Provt.ded,  further,  That  if he  h.as
THEY  HAVE  no  primary  beneficiary,  the  System  shall  pay  to  his  THEIR  secondary
beneficiaries the monthly pension excluding the dependents pension,  of the remaining
balance of the five-year guaranteed period:  Provt.ted,  F;'na//y, That the minimum death
benefit shall not be less than fifteen thousand pesos (P15,000.00). (As amended by Sec.
4,  P.D.1921)
b.    The monthly income benefit provided herein shall be the new amount of the monthly
(c)      Funeral benefit..  A The funeral benefit of Three Thoucand pe6os (P3,000.00) shall be
paid upon the death of a covered employee or permanently totally disabled pensioner,
lN  THE  AMOUNT  PRESCRIBED  BY  THE  COMMISsloN  BUT  IN  N0  CASE  LESS
THAN THREE THOUSAND PESOS (P3,000.00). (200a)
Chapter VIll
PROVISIONS COIVIMON T0 INCOME BENEFITS
Art.190. Relationship and Dependency. All questions of relationship and dependency shall
be determined as of the time of death.  (201 )
Art.191. Delinquent contributions.
(a)      AF+Employers who is ARE delinquent in bie THEIR contributions shall be liable to the
System  for  the  benefits  which  may  have  been  paid  by  the  System  to  his  THEIR
employees or their dependents, and any benefit and expenses to which such employers
is ARE liable shall constitute a lien on all his THEIR property, real or personal, which is
hereby  declared  to  be  preferred  to  any  oredit,  except  taxes.  The  payment  by  the
employers of the lump sum equivalent of such liabilfty shall absolve bin THEM from the
payment  of  the  delinquent  contributions   and   penalty  thereon  with   respect  to  the
employees concerned.
(b)      Failure or refusal  of the employers to  pay or remit the contributions  herein  prescribed
shall not prejudice the right of the employees or his THEIR dependents to the benefits
under  this  Title.  If the  sickness,  injury,  disability  or  death  occurs  before  the  System
receives any report of the name Of his THEIR employees, the employers shall be liable
to the System for the lump sum equivalent to the benefits to which such employees or
his THEIR dependents may be entitled. (202a)
Art.  192.  Second  Injuries.  If  any  employees  under  permanent  partial  disability  suffers
another injury which results in a compensable disability greater than the previous injury, the
State  Insurance  Fund  shall  be  liable for the  income  benefit  of the  new disabilfty:  Provi.ted,
That if the new disabilfty is related to the previous disability, the System shall be liable only for
the difference in income benefits.  (203)
Art.  193.  Assignment  Of  benefits.  No  claim  for  compensation  under  this  lltle  shall  be
compensable is transferable, or liable to tax,  attachment, gamishment,  levy or seieure by or


under any legal process whatscever,  either before or after receipt by the person or persons
entitled thereto, except to pay any debt of the employee to the System. (204)
Art.194. Earned Benefits. Income benefits shall, with respect to any period of disability, be
payable   in   accordance   with   this   Title   to   aft   employees   who   is   entitled   to   receive
REGARDLESS OF ENTITLEMENT TO wages, salaries or allowance for holidays, vacation or
sick leaves and any award of benefit under a collective bargaining or other agreement. (205a)
Art.195.  EMPLOYER'S  LIABILITY FOR FAILURE TO  PROVIDE Safety  Devices.  In  case
the employee's injury or death was due to the failure of the employer to comply with any law,
or to install and maintain safety devices, or take other precautions for the prevention of injury,
said employer shall pay to the State Insurance Fund a penafty of twenty-five percent (25%) of
the  lump sum  equivalent of the  income  benefit payable  by the  System to the employee.  All
employers, especially those who should have been paying a rate of contribution higher than
that required of them under this Title, are enjoined to undertake and strengthen measures for
the occupational health and safety of their employees. (206a)
Art.196. Prescriptive Period. No claim for compensation shall be given due course unless
said  claim  is filed with the  System  within  three TEN  (10)  years from  the  time  the  cause  of
action  accrued;  PROV/DED,  Hol/I/EVER,  THAT VVHEN A CLAIMANT FILED CLAIMS  FOR
DISABILllY OR  DEATH  BENEFITS  BEFORE THE  SYSTEMS,  EITHER UNDER THE SSS
LAW   OR   THE   GSIS   LAW,   THE   CLAIM   FOR   THE   SAME   BENEFITS   SHOULD   BE
CONSIDERED AS FILED.  (207a;  B.R.  NO.10ro345,  MARCH  17,  2010)
Art.197. Erroneous Payment.
(a)      If the system in good faith pays income benefit to a dependents who isARE inferior in
right to another dependents or with whom another dependents is ARE entitled to share,
such  payment  shall  discharge  the  System  from  liability,  unless  and  until  such  other
dependents notifieey the System of his THEIR claim prior to the payments.
(b)      In  case  of doubt  as  to  the  respective  rights  of rival  claimants,  the  System  is  hereby
empo\^rered to  determine  as to whom  payments should  be  made  in  accordance with
such regulations as the Commission may approve.  If the money is payable to a minors
or incompetents,  payment shall be made by the System to such person cr persons as
it  may  consider  to  be   best  qualified  to  take  care  and  dispese  of  the  minor's  or
incompetent's property for his THEIR benefit.  (208a)
Art.  198.  Prohibition.  No  agent,  attorney  or  other  person  pursuing  or  in  charge  of  the
preparation  or filing  of any  claim  for  benefit  under this  Title  shall  demand  or charge for his
THEIR services any fee, and any stipulation to the contrary shall be null and void.
The  retention  or deduction  of any  amount from  any  benefit granted  under this Title for the
payment   of  fees   of   such   services   is   prohibited.   IN   CASE   OF   VIOLATloN   OF   THIS
PROVISION, THE CLAIMANT MAY REPORT "E SAME TO THE COMMISSION.
Violation  of any  provision  of this Article  shall  be  punishable  by  a  fine  of not  less than  Five
Hundred Peoo8 nor more than Five Thousand Peeoe TEN THOUSAND PESOS (P10,000.00)
NOR MORE THAN TVVENIY THOUSAND PESOS (P20,000.00), or imprisonment for not less
than six (6) months nor more than one (1) year, or both, at the discretion of the court.  (209a)
Art.199. Exemption from Levy, Tax, etc. AIl laws to the contrary notwithstanding, the State
Insurance Fund and all its assets shall be exempt from any tax, fee, charge. levy, or customs
or impert duty, and no law hereafter enacted shall apply to the State Insurance Fund unless it
is provided therein that the same is applicable by expressly stating its name.  (210)


Chapter IX
RECORDS, REPORTS AND PENAL PROVISIONS
Art. 200. Record of Death or Disability.
(a)      All employers shall keep a !cgbeck tc record chronologically OF the sickness,  injury or
death  of their  employees,  lN  CHRONOLOGICAL  ORDER,  setting  forth  therein  their
names, dates and places of the contingency, nature of the contingency and absences.
(b)      Entries  in  the  !cgbcck  RECORD  shall  be  made  within  five  (5)  days  from  notice  or
knowledge of the occurrence of the contingency.
(c)      Wthin five  (5) days after entry in the !cgbcck RECORD,  the employers shall  report to
the system only those contingencies be THEY deems to be work-connected.
(d)      All entries in the employer's logbook RECORD shall be made by the employers or any
of hi€ THEIR authorized officials after verification of the contingencies or the employee'8
employees' absences for a peried of a day or more.
(e)      Upon  request  by  the  System,  the  employers  shall  furnish  the  necessary  certificate
regarding information about any contingency appearing in the !cgbcck RECORD, citing
the  entry  number,  page  number  and  date.  Such  !cgbcck  RECORD  shall  be  made
available for inspection to the duly authorized representatives Of the system.
(f)       Should any employers fail  to  record  an  actual  sickness,  injury  or death  of any of his
THEIR employees within the period prescribed herein, give false information or withhold
material information already in his THEIR possession, be THEY shall be held liable for
fifty  percent  (50%)  of  the  lump  sum  equivalent  of  the  income  benefit  to  which  the
employees may be found to be entitled, the payment of which shall accrue to the State
Insurance Fund.
(g)      ln case of payment of benefits for any claim which is later determined to be fraudulent
and  the  employers  is ARE  found  to  be  a  party  to  the  fraud,  such  employers  shall
reimburse TO the System the full amount of the compensation paid. (211a)
Art.  201.  Notice of Sickness,  Injury or Death.  Notice of sickness,  injury or death shall  be
given to the employers  by the employees or by his THEIR dependents or anybody on his
THEIR  behalf within five  (5)  days from the  occurrence  of the  contingency.  No  notice to the
employers  shall  be  required  if the  contingeneylES  isARE  known  to  the  employers  or his
THEIR agents or representatives.  (212a)
ART.  202.  REPORT  OF  CONTINGENCIES  IN  THE  WORKPLACE.  EMPLOYERS  SHALL
SUBMIT A  REPORT OF THE  CONTINGENCIES  OCCURRING  IN  THE WORKPLACE TO
THE REGIONAL OFFICES OF THE DOLE.  (new)
Art. 203. Penal Provisions.
(a)      The penal provisions ofRepublic^ct Numbered Eleven Hundred sixty one NOS.1161
THE  LAWS
GOVERNING THE SSS AND THE GSIS, with  regard to the funds  as are thereunder
being paid to, collected or disbursed by the System, shall be applicable to the collection,
administration and disbursement of the Funds under this lltle. The penal provisions on
coverage shall also be applicable.
(b)      Any Persons,  who for the  purpose of seouring entitlement to  any  benefit or payment
under this Title or the issuance of any certificate or dooument for any purpose connected
with this Title, whether for him THEM or for some other person, commits fraud, collusion,
falsification,  misrepresentation of facts or any other kind of anomaly shall be punished
with a fine of not less than Five Hundred Peco6 ONE HUNDRED THOUSAND PESOS
(P| oo,oco.co) NOR MORE THAN Five Thousand Pesos FIVE Hl|NP_RED THOU.SA±P
PESOS  (P500,000.00)  and  an  imprisonment for not less than six (6) menthe YEARS
AND ONE DAY nor more than cr:e `,'ear T\/\/ELVE (12) YEARS,  at the disoretion of the
court.


(c)      lfthe act penalized by this Article is committed by any persons who has HAVE been or
is ARE employed by the Commission or System, or a recidivists, the imprisonment shall
not be less than one year;  if committed by lawyers,  physicians or other professionals,
he THEY  shall,  jn  addition  to  the  penalty  prescribed  herein,  be  disqualified  from  the
practice  of  his  THEIR  profession;  and  if  committed  by  aFiy  officials,  employees  or
personnel  of the Commission,  System  or any government agency,  he THEY shall,  in
addition to the penarty prescribed herein,  be dismissed with prejudice to reemployment
in the government service.  (213a)
Art.  204.  Applicability.  This  Title  shall  apply  only  to  V\/ORK-RELATED  injury,  sickness,
disability or death occurring on or after January 1,1975 T+lE EFFECTIvllY OF THIS CODE.
(214a)
Art. 205. Repeal OF LAWS. All existing laws,  Presidential Deorees and Letter of Instructions
which are inconsistent with or contrary to this Deoree, are hereby repealed: Provi.ded, That in
the case of the GSIS,  conditions for entitlement to  benefits shall  be governed  by the  Labor
THIS  Code,  as  amended:  Provt.ded,  However,  That the  formulas  for THE    computation  of
benefits,  as well as the contribution base,  shall be those provided for under Commonwealth
'   `--`  -_``` ----- _   _-.-`  `-`--_-__  _-a.`` ,--, `,  _-_` .--. `__--,   `   `--1+a+,11\1',^\  1.,\,\,
LAW GOVERNING THE GSIS, plus twenty percent (20%) thereof. (215a)
T!t!e  !!:
MED!CAP`E
Title  111
ADULT EDUCATION
Art. 206. Adult Education. Every ALL employers shall render assistance in the establishment
and operation of adult education programs for their workers and employees as prescribed by
regulations  jointly  approved  by  the  Department  of  Labor  and  EmploymentDOLE  and  the
Department of Education, Culture and Sports.  (217a)
Book Five
Labor Relations
Ai+ 207.  Declaration Of Policy.
A.        Itisthepolicyofthestate:
(a)      To promote and emphasize the primacy of free collective  bargaining  and  negotiations
and the use of alternative  modes of dispute resolution,  including  mediation,  as modes
of settling industrial or labor disputes;
(b)      To promote free trade unionism  as an  instrument for the enhancement of democracy
and the promotion of social justice and development;
(c)      To foster the free and voluntary organieation of a strong and united labor movement;
(d)      To  promote  the  enlightenment  of workers  concerning  their  rights  and  obligations  as
union members and as employees;
(e)      To  provide  an  adequate  administrative  machinery  for  the  expeditious  settlement  of
industrial and labor disputes;
(f)       To ensure a stable but dynamic andjust industrial peace; and
(g)      To ensure the participation of workers in decision and policy-making processes affecting
their rights, duties and welfare.
a.       To  encourage  a  truly  democratic  methed  of  regulating  the  relations  between  the
employers   and  employees   by   means   of  agreements  freely  entered   into  through
collective bargaining,  no court or administrative agency or official shall have the power
to  set  or  fix  wages,  rates  of  pay,  hours  of  work  or  other  terms  and  conditions  of
employment, except as otherwise provided under this Code. (218)


Chapter 11
DEFINITIONS
Art. 208. Definitions.
(a) "Commission" means the National Labor Relations Commi6eion or any of it6 divisions,  a6
the case may be, ae provided under this Code.
(a)      drorganization   or   collective   bargaining,   OR   A   PERSON   VVHO   \/VORKS   OR   IS
EMPLOYED IN  PLACE OF OTHERS VVHO ARE ON STRIKE.  (219a)
Title  11
RESOLUTION OF INDUSTRIAL AND LABOR DISPUTES
Chapter I
cREATioN AND cOMrosiTioN
ART.  209.  A.    COURT  OF  LABOR  RELATIONS.  THERE  IS  HEREBY  ESTABLISHED  A
JUDICIAL  BODY,  KNOVVN  AS  THE  COURT  OF  LABOR  RELATIONS  (CLR),  A  LABOR-
DISPUTE  RESOLUTION   BODY  TASKED  T0  PROMOTE  AND  MAINTAIN   INDUSTRIAL
PEACE   BY   RESOLVING   INDUSTRIAL   AND   LABOR   DISPUTES.   ALL   UNEXPENDED
FUNDS, PROPERTIES, EQUIPMENT AND RECORDS 0F THE COMMISSION, AND SUCH
OF  ITS  PERSONNEL AS  MAY BE  NECESSARY, ARE  HEREBY TRANSFERRED TO THE
CLR VVHICH  SHALL  BE  UNDER THE ADMINISTRATIVE AND  FISCAL SUPERVISION  OF
THE SUPREME COURT.
a. MEDIATORS.   EACH MEDIATOR SHALL BE APPOINTED BY THE SUPREME COURT,
PROVIDED THAT EACH MEDIATOR SHOULD:
(1)      HAVE AT LEAST FIVE (5) YEARS OF EXPERIENCE IN HANDLING  INDUSTRIAL OR
LABOR MATTERS;
(2)      HAVE AT LEAST ONE HUNDRED ll/VENIY (120) HOURS OF RELEVANTTRAINING
ON     ALTERNATIVE     DISPUTE     RESOLUTION     GIVEN     BY    AN     INSTITUTloN
ACCREDITED  BY  THE  CLR  OR  BY  "E  OFFICE  FOR  ALTERNATIVE  DISPUTE
RESOLUTION CREATED UNDER REPUBLIC ACT NO. 9285; AND
(3)      AFTER  BEING  APPOINTED,  UNDERGO  REGULAR  TRAINING  ON  ALTERNATIVE
DISPUTE RESOLUTION GIVEN BY AN ACCREDITED INSTITUTION OF THE CLR OR
BY  THE  OFFICE  FOR ALTERNATIVE  DISPUTE  RESOLUTION  CREATED  UNDER
REPUBLIC ACT NO. 9285.
MEDIATORS  SHALL  HOLD  OFFICE  DURING  GOOD  BEHAVIOR  UNTIL  THEY  REACH
SIXTY-FIVE (65) YEARS OF AGE OR UNLESS SOONER REMOVED FOR VIOLATION OF
THEIR   DUTIES   UNDER   THE   LAW   OR   RULES   OR   BECOME   INCAPACITATED   TO
DISCHARGE THE DUTIES 0F THEIR OFFICE.
THE  SUPREME  COURT SHALL  FORMULATE AND  ISSUE A CODE  OF  CONDUCT FOR
MEDIATORS IN INDUSTRIAL AND LABOR DISPUTES, VVHICH SHALL PROVIDE FOR "E
STANDARD   OF   CONDUCT   EXPECTED   FROM   ALL   MEDIATORS   OF   THE   CLR   IN
DISCHARGING THEIR DUTIES.   VIOLATION 0F SAID CODE OF CONDUCT SHALL BE A
GROUND TO DISMISS A MEDIATOR FROM OFFICE.
C. JUDGES.   JUDGES MAY BE CALLED UPON  BY THE CLR TO HEAR AND DECIDE AN
INDUSTRIAL OR LABOR DISPUTE PROVIDED THAT THEY ARE MEMBERS OF THE BAR
IN GOOD STANDING AND LISTED IN THE CLR'S OFFICIAL LIST 0F JUDGES.   FOR THIS
PURPOSE, THE CLR SHALL MAINTAIN A LIST OF ACCREDITED JUDGES, VVHICH SHALL
BE REVIEVVED ANNUALLY BY THE SUPREME COURT.


lN ADDITION TO PROCEDURES AND REQUIREMENTS DETERMINED BY THE SUPREME
COURT,    ACCREDITATION    SHALL    ENSURE    THAT   JUDGES   ARE    PERSONS    OF
DISTINCTION  IN VVHOM  EMPLOYERS,  EMPLOYEES,  EMPLOYEES' GROUPS AND THE
GOVERNMENT  CAN  HAVE  TRUST  AND  CONFIDENCE.    JUDGES  SHOULD  HAVE  AT
LEAST TEN (10) YEARS 0F PRACTICE AND AT LEAST FIVE (5) YEARS OF EXPERIENCE
IN HANDLING INDUSTRIAL OR LABOR MATTERS. THEY SHALL HAVE N0 PERSONAL OR
FINANCIAL INTEREST IN THE  RESULTS OF THE  PROCEEDINGS  IN VVHICH THEY ARE
APPOINTED AND SHALL  HAVE  NO  RELATION TO THE  UNDERLYING  DISPUTE  OR TO
THE PARTIES OR THEIR COUNSEL THAT MAY CREATE AN APPEARANCE OF BIAS.
D.   STAFF. THE SUPREME COURT SHALL APPOINT THE STAFF AND EMPLOYEES OF
THE CLR AND  ITS  REGloNAL BRANCHES,  INCLUDING SHERIFFS, AS THE NEEDS OF
THE  SERVICE  MAY  REQUIRE,  SUBJECT  TO  THE  CIVIL  SERVICE  LAW,  RULES,  AND
REGULATIONS.  (new)
CHAPTER 11
POWERS AND DUTIES
Art.  210.   Jurisdictlon  of the  Labcr Ar±Etere er:d  t.['.e Cc::tm!se!or:  COURT OF L.ABOR
RELATIONS. (a) Except a8 otherwise provided under this Code, the Labor Arbiters THE CLR
shall have the exclusive and original jurisdiction to hear and decide within thirty (30) calendar
days after the submiesion of the case by the partje8 for decision without extension,  even  in
the   absence   of  8tenographic   note6,   the  following   upon   cases   of  all  workers,   whether
agrioultural or non-agricultural, TO VVIT:
(1)      Unfair Labor practice cases;
(2)      Termination   disputes   EXCEPT   DISPUTES   IN   ORGANIZED   ESTABLISHMENTS,
VVHICH   INVOLVE   THE   IMPLEMENTATION   0R   ENFORCEMENT   OF   COMPANY
PERSONNEL POLICIES;
(3)      lf accompanied with  a claim for reinstatement, those Cases  involving wages,  rates of
pay, hours of work and other terms and conditions of employment;
(4)      claims for actual, moral, exemplary and other forms of damages arising from employer-
employee relationship;
6.  Caee6 aricing from  any violation  of Article 261  of this Code,  including  question6  involving
the legality of etrikee and lockouts
(5)      WAGE DISTORTION DISPUTES IN UNORGANIZED ESTABLISHMENTS;
(6)      ENFORCEMENTOF COMPROMISEAGREEMENTS;
(7)      MONEY CLAIMS ARISING OUT OF EMPLOYER-EMPLOYEE RELATIONSHIP OR BY
VIRTUE OF LAW OR CONTRACT;
(8)      Except claims for Employees Compensation,  Social  Securty,  Medicare and  matemity
bonefit6, all other Cases invoiving claims arising from an employeremployee re!aticns,
claim    for   rein6tatement    RELATIONSHIP   OF   OVERSEAS   FILIPINO   WORKERS
PURSUANT TO REPUBLIC ACT 8042, AS AMENDED, OTHERVVISE KNOVVN AS THE
MIGRANT \/VORKERS AND OVERSEAS FILIPINOS ACT OF 1995;
(9)      CASESARISING FROM VIOLATION OF PROVISIONS OF THE LABOR CODE.
(10)   CLAIMS   INVOLVING   INJUNCTION   AND   TEMPORARY   RESTRAINING   ORDERS
ARISING FROM THE DISPUTES ENUMERATED HEREIN; AND
(11)   OTHER CASES AS MAY BE PROVIDED BY LAW.


NO CLAIM, COMPLAINT OR PETITION, INCLUDING THOSE FOR RESTRAINING ORDERS
OR INJUNCTIVE  RELIEF, ARISING OUT OF,  RELATED TO,  OR INVOLVING THE ABOVE
DISPUTES  SHALL  BE  HEARD  OR  DECIDED  BY  ANY  OTHER  COURT  OR  TRIBUNAL,
EXCEPT BY THE SUPREME COURT,  WHICH  MAY GIVE  DUE COURSE TO A PETITION
FOR CERTIORARl INVOLVING AN AWARD OF THE CLR JUDGES.
HOWEVER,   REGISTRATION   OF   LABOR  ORGANIZATIONS  AND   PROCEEDINGS   TO
DETERMINE  MAJORITY  REPRESENTATION  AMONG  EMPLOYEES  SHALL  CONTINUE
TO BE FILED WITH THE APPROPRIATE REGIONAL OFFICE AND SHALL NOT BE WITHIN
THE JURISDICTION OF THE CLR AS HEREIN DEFINED.  (224a)
ART. 211.   A. IMMEDIATE REFERRAL TO IVIEDIATION. ALL DISPUTES FILED WITH THE
CLR  SHALL  IMMEDIATELY  BE  REFERRED  TO  A  MEDIATOR  WHO  SHALL  MEDIATE
BETVVEEN THE PARTIES FOR A PERIOD NOT EXCEEDING SIXTY (60) CALENDAR DAYS
FROM  THE  DATE  OF  THE  INITIAL  CONFERENCE  WITHOUT  EXTENsloN.    AFTER  A
CLAIM IS FILED, THE CLR SHALL SET THE CASE FOR PRELIMINARY CONFERENCE AND
SEND   THE   NOTICE   T0   THE   PARTIES   NOT   LATER   THAN   FIVE   (5)   DAYS   AFTER
REFERRAL TO A MEDIATOR.
THE  MEDIATOR SHALL  BE CHOSEN  BY THE  CLR  UPON  CONSIDERING THE  NATURE
AND COMPLEXITY OF THE CLAIMS AS WELL AS THE PREFERENCES OF THE PARTIES,
IF KNOWN.   ONE (1) MEDIATOR WILL BE APPOINTED UNLESS THE CLR DETERMINES
THAT ANOTHER NUMBER IS MORE APPROPRIATE TO THE CIRCUMSTANCES 0F THE
CASE.
IN  ALL  DISPUTES,  NO  PERSON  SHALL  SERVE  AS  A  MEDIATOR  IN  ANY  DISPUTE  IN
WHICH THAT PERSON HAS ANY FINANCIAL 0R PERSONAL INTEREST IN THE RESULT
OF THE MEDIATION, EXCEPT BY THE WRITTEN CONSENT 0F ALL PARTIES. PRIOR TO
ACCEPTING AN APPOINTMENT, THE PROSPECTIVE MEDIATOR SHALL DISCLOSE ANY
CIRCUMSTANCE  LIKELY  TO  CREATE  A  PRESUMPTION  OR  APPEARANCE  OF  BIAS.
UPON  RECEIPT  OF  SUCH   INFORMATION,  THE  CLR  SHALL  EITHER  REPLACE  THE
MEDIATOR  OR  IMMEDIATELY  COMMUNICATE  THE  INFORMATION  TO  THE  PARTIES
FOR THEIR COMMENTS. THE CLR IS AUTHORIZED TO APPOINT ANOTHER MEDIATOR
IF THE APPOINTED MEDIATOR IS UNABLE TO SERVE PROMPTLY.
a. PROCESS OF MEDIATION.
1.    REPRESENTATION. ANY  PARTY  MAY  BE  REPRESENTED  BY A  PERSON  OF  THE
PARTY'S  CHOICE.  THE  NAMES  AND  ADDRESSES  OF  SUCH   PERSONS  SHALL  BE
COMMUNICATED BY THE RESPECTIVE PARTIES IN WRITING TO ALL PARTIES AND TO
THE CLR.
2.  DATE, TIME, AND PLACE OF "lEDIATION. THE MEDIATOR SHALL FIX THE DATE AND
THE TIME  OF  EACH  MEDIATION  SESSION.  THE  MEDIATION  SHALL  BE  HELD AT THE
APPROPRIATE  REGloNAL  OFFICE  OF  THE  CLR,  OR  AT  ANY  OTHER  CONVENIENT
LOCATION  AGREEABLE  TO  THE  MEDIATOR AND  THE  PARTIES,  AS  THE  MEDIATOR
SHALL DETERMINE.
3.     IDENTIFICATION  OF  IVIATTERS  IN  DISPUTE.  THE  MEDIATOR  SHALL  EXERCISE
COMPLETE CONTROL OVER ALL MEDIATION PROCEEDINGS IN PURSUIT OF A JUST,
ADEQUATE, AND SPEEDY AGREEMENT BEll/VEEN THE PARTIES. DURING THE FIRST
HEARING,   THE   MEDIATOR   SHALL   IDENTIFY   THE   ISSUES   INVOLVED   AND   THE
RESPECTIVE   OPINIONS   0F   THE   PARTIES   THERETO.      THE   PARTIES   WILL   BE
EXPECTED  TO  PRODUCE  ALL  INFORMATION   REASONABLY  REQUIRED  FOR  THE


MEDIATOR TO  UNDERSTAND THE  ISSUES  PRESENTED.    FOR THIS  PURPOSE,  THE
MEDIATOR    MAY    ISSUE    SUBPOENAS    DUCES    7ECUM    AND    SUBPOENAS    AD
rESTiFtcAIVDUM  To  REQuiRE  THE  pRODucTioN  oF  NECEssARy  DOcuMENTs,
PROPERTY, OR PERSONS AND MAY CITE PERSONS IN VIOLATloN OF SUCH ORDERS
IN CONTEMPT.
4.  AUTHORITY OF MEDIATOR. THE MEDIATOR DOES NOT HAVE THE AUTHORITY TO
IMPOSE A SETTLEMENT ON THE PARTIES BUT WILL AITEMPT TO HELP THEM REACH
A SATISFACTORY RESOLUTION OF THEIR DISPUTE. THE MEDIATOR IS AUTHORIZED
TO CONDUCT JOINT AND SEPARATE MEETINGS VVITH THE PARTIES AND SHALL MAKE
WRITTEN  RECOMMENDATIONS  FOR  SETTLEMENT.  WHENEVER  NECESSARY,  THE
MEDIATOR MAY ALSO OBTAIN EXPERT ADVICE CONCERNING TECHNICAL ASPECTS
OF THE DISPUTE.
THE  MEDIATOR  MAY  SEEK  THE  AGREEMENT  0F  THE  PARTIES  TO  RESORT  TO
VARIOUS     METHODS     OF     ADR     INCLUDING     CONCILIATION,     MEDIATION,     AND
ARBITRATION.
THE MEDIATOR IS AUTHORIZED TO END THE MEDIATION UPON THE EXECUTION OF A
SETTLEMENT AGREEMENT BY THE PARTIES, WHICH SHALL BE DULY ATTESTED BY
THE MEDIATOR.  ANY SETTLEMENT REACHED BY THE PARTIES DULY ATTESTED BY
THE MEDIATOR SHALL BE BINDING BETVVEEN THE PARTIES AND MAY BE EXECUTED
AS PROVIDED IN ARTICLE 216.
THE    MEDIATOR    IS    AUTHORIZED    TO    END    THE    MEDIATION    BY    A    WRITTEN
DECLARATION  OF  A  PARTY  OR  PARTIES  TO  THE  EFFECT  THAT  THE  MEDIATION
PROCEEDINGS   ARE   TERMINATED   OR   WHENEVER,   lN   THE   JUDGMENT  OF   THE
MEDIATOR,   FURTHER  EFFORTS  AT  MEDIATION  WOULD  NOT  CONTRIBUTE  TO  A
RESOLUTION OF THE DISPUTE BETWEEN THE PARTIES.
5.   PRIVACY.  MEDIATION  SESSIONS ARE PRIVATE AND  INFORMATION  GENERATED
THEREFROM  IS  CONFIDENTIAL.  THE  PARTIES AND THEIR  REPRESENTATIVES  MAY
ATTEND MEDIATION SESSIONS, BUT OTHER PERSONS MAY ATTEND ONLY WITH THE
PERMISsloN OF THE PARTIES AND WITH THE CONSENT OF THE MEDIATOR.
6.         CONFIDENTIALITY.     MEDIATION     PROCEEDINGS     SHALL     BE     CONSIDERED
CONFIDENTIAL AND  INFORMATION  OBTAINED  THEREIN  SHALL  NOT  BE  PUBLISHED
OR DISCLOSED TO THIRD PARTIES EXCEPT (I) WITH THE CONSENT OF THE PARTIES,
OR  (11)  WHEN  NECESSARY,   lN  CASES  VVHERE  RESORT  TO  THE  COURT  IS  MADE
UNDER THE RULES OF COURT.
THE  CONFIDENTIALITY  OF THE  PROCEEDINGS  SHALL  INCLUDE  COMMUNICATIONS
TO OR FROM THE MEDIATOR AND ALL RECORDS, REPORTS, OR OTHER DOCUMENTS
RECEIVED   BY  A  MEDIATOR  WHILE  SERVING   IN  THAT  CAPAcllY.   CONFIDENTIAL
INFORMATION  DISCLOSED TO A MEDIATOR BY THE  PARTIES 0R BY WITNESSES  IN
THE COURSE OF THE MEDIATION SHALL NOT BE DIVULGED BY THE MEDIATOR. THE
MEDIATOR SHALL NOT BE COMPELLED T0 DIVULGE SUCH RECORDS OR TO TESTIFY
IN  REGARD  TO  THE  MEDIATloN   IN  ANY  ADVERSARY  PROCEEDING  0R  JUDICIAL
FORUM.
ANY   VIOLATION   OF   THE   CONFIDENTIALllY   OF   THE   PROCEEDINGS   SHALL   BE
SUBJECT TO THE FOLLOWING SANCTIONS:
1.        WITHOUT   PREJUDICE   TO   THE   FOLLOWING   PARAGRAPH,   ADMINISTRATIVE
ACTION  OR  PROCEEDING  TO  BE  CONDUCTED  BY  THE  CLR,  WITH  PROPER
NOTICE AND HEARING, FOR INHIBITION OR PROHIBITION FROM APPEARING AS


MEDIATOR,  JUDGE,  COUNSEL OR  REPRESENTATIVE  FOR ANY  PARTY  IN ANY
CASE;
2.        IF II±E ANY VIOLATORS ARE PROFESSIONALS, ADMINISTRATIVE/DISCIPLINARY
ACTION  BEFORE  THE  APPROPRIATE  AUTHORITY,  INCLUDING  THE  SUPREME
COURT AND PROFESSIONAL REGULATION COMMISSION, AT THE INSTANCE OF
ANY PARTY 0R OF THE CLR.  (new)
ART.  212.    REFERRAL TO ARBITRATION.   IN CASE OF  FAILURE OF MEDIATION,  THE
MEDIATOR SHALL ACCOMPLISH A REPORT TO THIS  EFFECT AND AUTOMATICALLY
REFER THE CASE TO THE JUDGES, EXCEPT IF BOTH PARTIES EXPRESS IN WRITING
THEIR REFUSAL TO DO SO.
FOR PURPOSES OF THIS TITLE,  THERE  IS A FAILURE OF MEDIATION  IN ANY OF THE
FOLLOWING CASES:
(1)      WHERE PARTIES FAILTO REACH AN AMICABLE SETTLEMENTAFTERTHE LAPSE
OF  SIXTY  (60)  CALENDAR  DAYS  FROM  THE  DATE  OF  THE  INITIAL  MEDIATION
CONFERENCE;
(2)      REGARDLESS OF PARAGRAPH (1), WHEREANY PARTIES WHOARE NECESSARY
TO  REACH A COMPLETE  SETTLEMENT OF THE  CLAIM  FAILS  OR REFUSES TO
PARTICIPATE IN THE MEDIATION; OR
(3)      REGARDLESS   0F   PARAGRAPH   (1),   WHERE  THE   MEDIATOR   REACHES  THE
CONCLUSION THAT THE PARTIES WILL NOT REACH AN AMICABLE SETTLEMENT
OR THAT FURTHER EFFORTS AT MEDIATION ARE NO LONGER WORTHWHILE.
IN ALL CASES, THERE MAY BE A FAILURE OF MEDIATION WITH REGARD TO SOME OR
NOT  ALL  OF  THE  CLAIMS  BROUGHT  TO  MEDIATION.     IN  THIS  CASE,  FAILURE  OF
MEDIATloN MAY BE DECLARED ONLY WITH REGARD TO THE UNRESOLVED CLAIMS.
(new)
ART.  213.    A.     START  OF  PROCEEDINGS  BEFORE  THE  JUDGES.   PROCEEDINGS
BEFORE THE  JUDGES ARE  DEEMED COMMENCED  FROM  THE TIME THAT THE CLR
ISSUES  A  REPORT  DECLARING  A  FAILURE  OF  MEDIATION  AND  AT  LEAST  ONE  (1)
PARTY    EXPRESSES    AN    INTENT,    lN    WRITING,    TO    REFER    THE    DISPUTE    TO
ARBITRATION.
a. JUDGES.
(1)      THE  JUDICIAL  FUNCTIONS  IN  THE  CLR  SHALL  BE  VESTED  IN  JUDGES  TO  BE
APPOINTED   AND   COMMISSIONED   IN   THE   SAME   MANNER   AS   JUDGES   OF
REGIONAL TRIAL COURTS.
(2)      THE JUDGES OFTHE CLRSHALLSERVE DURING GOOD BEHAVIOR UNTILTHEY
REACH  THE  AGE  OF  SEVENTY  (70)  YEARS,  OR  BECOME  INCAPACITATED  TO
DISCHARGE  THE  DUTIES  OF  THEIR  OFFICE,  UNLESS  SOONER  REMOVED  IN
ACCORDANCE WITH LAW.
(3)      NO PERSON SHALL BE APPOINTED AS JUDGES,  UNLESS THEY ARE A CITIZEN
OF  THE  PHILIPPINES,  A  MEMBER  OF  THE  BAR  IN  GOOD  STANDING  WHO  HAS
PRACTICED LABOR LAW IN THE PHILIPPINES FOR A PERIOD OF AT LEAST TEN
(10)   YEARS,   WITH  AT   LEAST   FIVE   (5)  YEARS'   EXPERIENCE   IN   INDUSTRIAL
RELATIONS OR LABOR LAW AS AN  INDISPENSABLE REQUISITE.
(4)      JUDGES  OF  THE  CLR  SHALL  HAVE  THE  SAME  RANK,  RECEIVE  AN  ANNUAL
SALARY  EQUIVALENT  TO  AND   BE   ENTITLED  TO  THE   SAME  ALLOWANCES,
RETIREMENT GRATUITY AND OTHER BENEFITS AND PRIVILEGES AS THOSE OF
THE JUDGES OF THE REGIONAL TRIAL COURTS PURSUANT T0 REPUBLIC ACT
NO.  9347  lN  RELATION TO  REPUBLIC ACT NO.  910, AS AMENDED BY REPUBLIC
ACT NO. 9227 AND BY OTHER APPLICABLE LAWS.


ALL COMPLAINTS AND PETITIONS FILED WITH THE DC)CKET UNIT OF THE CLR SHALL
BE IMMEDIATELY RAFFLED AND ASSIGNED TO A JUDGE FROM RECEIPT THEREOF.
THE  CLR SHALL  BE  RESPONSIBLE  FOR THE  IMMEDIATE  RAFFLE AND ASSIGNMENT
OF ALL COMPLAINTS AND PETITIONS FILED WITH ITS BRANCH, AND THE IMMEDIATE
FORWARDING OF ALL SUBSEQUENT PLEADINGS AND MOTIONS.
ALL  PLEADINGS  AND  MOTloNS  SUBSEQUENT  TO  THE  FILING  OF  THE  COMPLAINT
SHALL  BE  FORWARDED  TO  THE  JUDGE  BEFORE  WHOM  THE  CASE  IS  PENDING
WITHIN ll/VENTY-FOUR (24) HOURS FROM RECEIPT THEREOF.  (new)
ART 214.   PROCEDURE  OF ARBITRATION.   A.  NATURE  OF  PROCEEDINGS  BEFORE
THE    COURT    OF    LABOR    RELATloNS.    BEING    A    COURT    WITH    SPECIALIZED
JURISDICTION,  PROCEEDINGS  BEFORE  THE  CLR  SHALL  BE  SUMMARY  AND  NON-
LITIGIOUS     IN     NATURE;     PROV/BED,      HOVAEVER,     THAT     SUBJECT     TO     THE
REQUIREMENTS OF DUE PROCESS, THE TECHNICALITIES OF LAWAND PROCEDURE
OBTAINING   IN   THE   REGULAR   COURTS   OF   LAW   SHALL   NOT   STRICTLY   APPLY
THERETO.
IN  ALL  CASES,  THE AFFIDAVITS  SUBMITTED  BY  THE  PARTIES  SHALL  CONSTITUTE
THE  DIRECT  TESTIMONIES  0F  THE  PERSONS  WHO  EXECUTED  THE  SAME.    ALL
AFFIANTS MAY BE SUBJECTED TO CROSS-EXIAMINATION,  REDIRECT, OR RE-CROSS
EXAMiNATioN By THE juDGE(s) Moru pROpf?;o oR By ANy AppROpRiATE pARTy
UPON MOTION.  THE AFFIDAVIT OF ANY AFFIANT WHO FAILS TO TESTIFY SHALL NOT
BE  CONSIDERED  AS  COMPETENT  EVIDENCE  FOR  THE  PARTY  PRESENTING  THE
AFFIDAVIT.     HOWEVER,  THE  ADVERSE  PARTY  MAY  UTILIZE  THE  SAME  FOR  ANY
ADMISSIBLE PURPOSE.
THE PARTIES MAY OFFER SUCH EVIDENCE AS IS RELEVANT AND MATERIAL TO THE
DISPUTE   AND   SHALL   PRODUCE   SUCH    EVIDENCE   AS   THE   JUDGE(S)    DEEMS
NECESSARY TO AN  UNDERSTANDING AND  DETERMINATloN OF THE  DISPUTE.  THE
juDGE(s) SHALL HAVE THE AUTHORiTy To issuE suBpoENAS oUcEs rEcuM AND
SUBPOENAS AD  7lEST/F/CAIVOUM T0 REQUIRE THE PRODUCTION OF DOCUMENTS,
EVIDENCE,  OR  PERSONS  TO  GIVE  TESTIMONY  RELEVANT TO  THE  DISPUTE.    THE
JUDGE(S)    SHALL   ALSO    HAVE    THE    AUTHORITY    TO   ADMINISTER    OATHS    TO
WITNESSES.
ALL  PARTIES  TO  THE  DISPUTE  MUST  AITEND  THE  PROCEEDINGS  ON  PAIN  OF
CONTEMPT.  THE ATTENDANCE OF ANY THIRD  PARTY OR THE  EXCLUSION  OF ANY
WITNESS FROM THE PROCEEDINGS SHALL BE DETERMINED BY THE JUDGE(S).
8.    DETERwllNATIONS.   AT THE  FIRST  HEARING,  THE  JUDGE(S)  SHALL  EXERT ALL
EFFORTS   TO   EXPLORE   AND    RESOLVE   MATTERS   THAT   VVILL   EXPEDITE   THE
PROCEEDINGS. PROHIBITED PLEADINGS SHALL BE DETERMINED UNDER THE RULES
0F  PROCEDURE  PROMULGATED  BY  THE  SUPREME  COURT.  IN  PARTICULAR,  THE
JUDGE(S) MUST DETERMINE THE FOLLOWING:
(1)      THE ISSUEST0 BE DETERMINED;
(2)      THE RULESAND PROCEDURETO BEADOPTED INCLUDINGTHE SEQUENCE OF
PRESENTATION OF EVIDENCE BY THE PARTIES;
(3)      THE  DATE,  TIME,   PLACE  AND  ESTIMATED  DURATION  OF  THE  SUCCESSIVE
HEARINGS;
(4)      THE    STIPULATIONS   AND    DECLARATIONS    REGARDING    FACTS,    EXHIBITS,
WITNESSES AND OTHER ISSUES;


(5)      THE NAMES OF WTNESSES (INCLUDING EXPERT WTNESSES), THE SCOPE OF
VVITNESS TESTIMONY, AND VVITNESS EXCLUSION;
(6)      THE NEED FORASTENOGRAPHIC RECORD;
(7)      THE FORM OFTHEAWARD;
(8)      THE ALLOCATION OF AITORNEY'S FEES AND COSTS; AND
(9)      ANY   OTHER   ISSUES   RELATING   TO   THE   SUBJECT   0R   CONDUCT   OF   THE
PROCEEDINGS. (new)
ART.   215.   AWARD.   UNLESS   THE   PARTIES   EXPRESSLY  AGREE   OTHERVVISE   IN
WRITING, lT SHALL BE MANDATORY FOR THE JUDGE TO RENDER AN AWARD VVITHIN
NINEIY    (90)    CALENDAR    DAYS    FROM    THE    DATE    OF   ACCEPTANCE    OF   THE
ARBITRATloN.    FAILURE  ON  THE  PART  OF  THE  JUDGE  TO  ISSUE  AN  AWARD  OR
DECISION   VVITHIN    THE    STIPULATED    PERloD    SHALL   CONSTITUTE    SUFFICIENT
GROUND FOR THE IMPOSITION OF DISCIPLINARY PENALTIES.
PARTIES   SHALL   SUBMIT   THEIR   RESPECTIVE   DRAFT   AWARD,   RESOLUTION   OR
DECISION VVHICH SHALL EMBODY ALL THE PERTINENT PROVISIONS OF LAW, RULES
AND   REGULATIONS   AND   JURISPRUDENCE   FOR   THE   CONSIDERATION   OF   THE
COURT.
THE AWARD, RESOLUTION OR DECISION OF THE JUDGE SHALL CONTAIN "E FACTS
AND THE LAW ON VVHICH  IT IS BASED.   "E JUDGE SHALL ENTERTAIN ONLY ONE (1)
MOTION   FOR  RECONSIDERATION   FROM  THE  SAME   PARTY  VVITHIN  THE   PERIOD
VVHEN  THE  AWARD  OR  DECISION  HAS  NOT  BECOME  FINAL  AND  EXECUTORY.    IT
SHALL BE FINAL AND EXECUTORY AFTER TEN (10) CALENDAR DAYS FROM RECEIPT
OF THE  COPY  OF THE AWARD  OR  DECISION  BY THE  PARTIES AND  MAY  ONLY  BE
BROUGHT BEFORE THE SUPREME COURT/COURT OF APPEALS THROUGH A SPECIAL
CIVIL ACTION FOR CERTI0RARl. DECISIONS, AWARDS, AND ORDERS OF THE JUDGE
SHALL  BE  IMMEDIATELY EXECUTORY EVEN  IN THE ABSENCE OF ANY MOTION  FOR
EXECUTION.  (new)
Art. 216.  Ekceution of d®cl®lon8, ord®ro or award®.  {a} THROUGH A PROPER MOTION
DIRECTED TO THE CLR, ANY INTERESTED PARTY MAY ENFORCE THE SETTLEMENT
AGREEMENTS    OR   AWARDS    RESULTING    FROM    MEDIATION    OR   ARBITRATION
PROCEEDINGS   IN  THIS  TITLE.   UPON   SUCH   MOTION,   the   Seoretary   of   Labor   and
==±:a::==:;:,:i=fi`:T±e8;:Ra#efr±tphr%p:ri:cm±F=iemre:=royf::#rnt±=i_¥Cbr#ri;A:i:|¥
writ of execution  on a settlement agreement or arbitral award within five  (5) years from the
date it WAS REACHED OR becomes final and executory,  requiring a THE sheriff or arduly
depifedue±fieef±=::::::=:±i:=:==:A:::=%:'Z==e==:S%::|3i±::=a:±E±%:::::i==:i::=g:S=::£=':
THE SETTLEMENT
AGREEMENT OR ARBITRAL AWARD.  In  any  case,  it  shall  be the  duty  of the  responsible
officer  to  immediately  furnish  the  counsels  of  record  and  the  parties  with  copies  of  said
decisions,  orders or awards SETTLEMENT AGREEMENT OR ARBITRAL_AWARD.   Fail.ure
to comply with the duty prescribed herein shall subject such responsible officer to appropriate
iiiiiiiiE:!imji:jijijm+EjHi¢E+I:ei€Liii.i:ii.ej`i+i:e.e.5!.++i.!i.je.+ie+EiiiiLe.!i.\.e..S.i.i`+e-.i+.ieE€]ie!-i!.+L
.„             ,,,.,    _ ,.     _   1[__ _ _  ...L:_I_  _L._li  __L  I._  I...A  .I-A,-E3f=nn  nn  n^-r`^^ra
ART. 217. REPRESENTATION, PARTIES SHOULD PERSONALLY APPEAR BEFORE THE
CLR AND ANY OF ITS MEDIATORS OR JUDGE: PROV/BED THAT JURIDICAL PERSONS


MAY BE REPRESENTED BY ANY PERSON SPECIALLY AUTHORIZED IN VVRITING TO DO
SO.  AT ANY PROCEEDING BEFORE THE CLR OR ANY OF ITS MEDIATORS OR JUDGE,
NON-LAVVYERS SHALL BE ALLOVVED TO REPRESENT ANY PARTY IN THE FOLLOVVING
CASES:
(1)      THEYARE REPRESENTING THEMSELVES;
(2)      THEY ARE  REPRESENTING A CORPORATION  OR  BELONGS  TO A  LEGITIMATE
LABOR ORGANIZATION;
(3)      THEY ARE AUTHORIZED  UNDER THE  STUDENT PRACTICE  RULE  UNDER  RULE
138-A OF THE RULES OF COURT.  (new)
ART.   218.       INJUNCTloNS.       A   PETITION   FOR   INJUNCTION   OR   PETITION    FOR
MANDATORY  INJUNCTION  MAY  BE  FILED  VVITH  THE  CLR TO  ENJOIN  OR  RESTRAIN
ANY  ACTUAL   OR  THREATENED   COMMISSION   OF  ANY   OR  ALL   PROHIBITED   OR
UNLAVVFUL ACTS,  OR TO  REQUIRE THE  PERFORMANCE  OF A PARTICULAR ACT  IN
ANY INDUSTRIAL OR LABOR DISPUTE WHICH,  lF NOT RESTRAINED OR PERFORMED
FORTHVVITH,  MAY  CAUSE  GRAVE  OR  IRREPARABLE  DAMAGE  TO  ANY  PARTY  OR
RENDER INEFFECTUALANY DECISION IN FAVOR 0F SUCH PARTY. THE PETITION FOR
INJUNCTION OR PETITION FOR MANDATORY INJUNCTION SHALL AUTOMATICALLY BE
REFERRED  TO  ARBITRATION;  PROV/OED,  THAT  NO  TEMPORARY  OR  PERMANENT
INJUNCTION  IN  ANY  CASE  INVOLVING  OR  GROVVING  OUT  OF  AN  INDUSTRIAL  OR
LABOR  DISPUTE AS  DEFINED  IN THIS CODE  SHALL  BE  ISSUED  EXCEPT AFTER THE
POSTING OF THE NECESSARY BOND AND HEARING THE TESTIMONY OF VVITNESSES,
WITH OPPORTUNITY FOR CROSS-EXAMINATION, lN SUPPORT OF THE ALLEGATloNS
OF A COMPLAINT MADE UNDER OATH.  (new)
Chapter Ill
TRANSITORY PROVISIONS
Art.  219.  Disposition  Of pending  cases.  All  cases  pending  before the  Court of  Industrial
Relations  and  the  National  Labor  Relations  (NLRC)  established  under  Presidential  Deoree
No. 21, AS AMENDED BY P.D. 442, on the date of effectivity of this Code shall be transferrecd
to  and   processed   by  the  corresponding   labor  relations  divieion8  or  the   National   Labor
Relations Commission CLR Created under this Code LAW having cognLzance of the same in
accordance with the procedure laid down herein and its implementing rules and regulations.
_ `,\,I,   \,\,,,I,,,1\,\,,\,, ,1++ ,-,,,,- 1 -,I   -1 ,,-.  `
accordance with the law, rules and procedure exi6tj
Compensation and State lncurance Fund. (314a)
ART.      220.      RETIREMENT     OR     SEPARATION     0F     NLRC     COMMISSIONERS.
CONSEQUENT  TO  THE  ABOLITION  OF  THE  NLRC,  INCUMBENT  COMMISsloNERS
SHALL BE  DEEMED COMPULSORILY RETIRED WITH  FULL RETIREMENT GRATUITY
AND  PENSION  PURSUANT TO  REPUBLIC ACT NO.  910, AS AMENDED.  THEY SHALL
ALSO RECEIVE A SEPARATION PAY EQUIVALENT TO T\/VO (2) MONTHS' SALARY FOR
EVERY    YEAR    OF    SERVICE    IN    GOVERNMENT:    Provi.bed,    That    all    incumbent
Commissioners  shall  be  given  preference  for  appointment  as  Justices  of  the  Court  of
Appeals.  (new)


ART.  221.  PERSONNEL WHOSE SERVICES ARE TERMINATED.   NLRC PERSONNEL
VVHOSE  SERVICES ARE TERMINATED AS A RESULT OF THE  IMPLEMENTATION  OF
THIS  LAW SHALL  ENJOY THE  RIGHTS AND  PROTECTION  PROVIDED  UNDER  CIVIL
SERVICE LAW, RULES AND REGULATIONS: Provided, that they shall be given preference
for appeintment to the CLR.  (new)
ART. 222. OPTloNAL RETIREMENT OR SIVERANCE PAY FOR AN INCUMBENT LABOR
ARBITER. VVHEN  INCUMBENT LABOR ARBITERS HAVE ATTAINED THE AGE 0F SIXIY
(60) YEARS AND HAVE  RENDERED AT LEAST TVVENTY (20) YEARS  IN GOVERNMENT
SERVICE,  THE  LAST  FIVE  (5) YEARS  OF \/VHICH  SHALL  HAVE  BEEN  CONTINUOUSLY
RENDERED   AS   LABOR   ARBITERS,   THEY   SHALL   BE   QUALIFIED   FOR   OPTIONAL
RETIREMENT.  IF THEY LACK ANY ONE OF THE ABOVE QUALIFICATIONS, THEY SHALL
BE ENTITLED TO A SEVERANCE PAY EQUIVALENT TO T\/VO (2) MON"S' SALARY FOR
EVERY    YEAR    OF    GOVERNMENT    SERVICE.    THIS    OPTION    FOR   AVAILING    0F
SEVERANCE PAY SHALL BE EXERCISED VVITHIN A PERIOD OF SIXTY (60) CALENDAR
DAYS AFTER THE  EFFECTIvllY OF THIS ACT;  OTHERVVISE,  SAID OPTION  SHALL BE
DEEMED WAIVED.  (new)
ART. 223. .  Incumbent Labor Arbiters as Judges of the Court of Labor Relations and
SuBSEQUENT AproiNTMENTS To THE REGioNAL COuRT 0F LABOR RELATioNs. AII  inoumbent
Labor Arbiters  shall,  by operation  of law,  be  deemed  appointed  as Judges  of the  Court  of
Labor Relations.  Subsequently, THE PRESIDENT SHALL APPOINT JUDGES TO THE CLR
FROM A LIST OF AT LEAST THREE  (3)  NOMINEES  PREPARED  BY THE JUDICIAL AND
BAR COUNCIL; PROV/DED, THAT SAID NOMINEES SHALL MEET THE QUALIFICATIONS
AS THOSE OF THE JUDGES OF THE REGIONAL TRIAL COURTS. SUCH APPOIN"ENTS
NEED NO CONFIRMATION.  (new)
TITLE  111
BUREAU OF LABOR RELATIONS
ART.  224.  Bureau  of  Labor  R®]atlons.  The  Bureau  cf  Labor  P`e!aticns  and  the  Labor
Relations Divisions in the regional offices of the Department of Labor DOLE shall have original
and exclusive authority to act,  at their own initiative or upon request of either or both parties,
on  all  inter-union  and  intra-union  conflicts,  and  all  disputes,  grievances  or problems  arising
from  or affecting  labor-management relations  in  all workplaces,  whether agrioultural  or non-
agricultural,   except  those   arising  from  the   implementation   or  interpretation   of  collective
bargaining  agreements which  shall  be the subject of grievance procedure  and/or voluntary
arbitration.
The  Bureau  shall  have fifteen  (15) working  days to  act on  labor cases  before  it,  subject to
extension by agreement of the parties. (232a)
ART. 225. Compromise agreements. Any compromise settlement, including those involving
labor standard laws, voluntarily agreed upon by the parties with the assistance of the Bureau
or the regional office of the  Department of Labor DOLE,  shall  be final  and binding  upon the
parties.  The  National  Labor  Relations  Commi8Gion  CLR  or  any  court,  shall  not  assume
jurisdiction over issues involved therein except in case of non-compliance thereof or if there
is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or
coercion. (233a)
ART. 226. Mandatory Conciliation and Endorsement of Cases.
(a)      Except  as  provided  in  Title  VllA,  Book V  of this  Code,  as  amended,  or  as  may  be
excepted by the Seoretary of Labor and EmploymentsoLE, all issues arising from labor
and employment shall be subject to mandatory conciliation-mediation. The !abcr arbiter


JUDGE OF THE CLR or the appropriate DOLE agency or office that has jurisdiction over
the dispute shall entertain only endorsed or referred cases by the duly authorized officer.
(b)      Any or both parties involved in the dispute may pro-terminate the conciliation-mediation
proceedings and  request referral  or endorsement to the appropriate DOLE  agency or
office  which  has  jurisdiction  over the  dispute,  or  if  both  parties  so  agree,  refer  the
unresoived issues to voluntary arbitration.  (234a)
Art.   227.   Issuance  of  subpoenas.The   Bureau   shall   have  the   power  to   require  the
appearance of any person or the production of any paper, document or matter relevant to a
labor dispute under its jurisdiction,  either at the request of any interested party or at its own
initiative.  (235)
Art.  228.  Appointh®nt of  Bureau  personnel.   The  Seoretary  of  Labor  anq  .Emplo.yme.n!
SOLE  may  appoint,  in  addition  to  the  present  personnel  of the  Bureau  and  the  Industrial
Relations Divisions, such number of examiners and other assistants as may be necessary to
carry out the purpose of the Code. qu6 amended by Section 16, Republic Act No. 6716, March
21,1989) (236a)
Art,  229.  Registry of unions and file of collective bargaining agr'eements. The  Bureau
shall keep a registry of legitimate labor organizations. The Bureau shall also maintain a file Of
all collective bargaining agreements and other related agreements and records of settlement
of labor disputes and copies of orders and decisions of voluntary arbitrators. The file shall be
open  and  accessible  to  interested  parties  under conditions  prescribed  by  the  Secretar,J  cf
Labor and  EmploymentsoLE,  provided that no specifc information_ subTiFed. iT  confi.dence
shall  be  disclosed  unless  authorieed  by the .SecretarysoLE,  or when  it  is  at  issue  in  any
judicial litigation,  or when public interest or national security so requires.
Within thirty (30) days from the execution  of a Collective  Bargaining Agreement,  the  parties
shall  submit  copies  of  the  same  directly  to  the  Bureau  or  the  Regional  Offices  of  the
Department of Labor and Employment DOLE for registration, acapmp_anied w.ith ¥erifieq p[pof:
of its posting in two conspicuous places in the place of work and ratification by the majority of
all  the  workers  in  the  bargaining  unit.  The  Bureau  or  Regional  Offices  shall  act  upon  the
application for registration  of such  Collective  Bargaining Agreement within five  (5)  calendar
days from  receipt thereof.  The  Regional  Offices shall furnish the  Bureau with  a  copy of the
Collective Bargaining Agreement within five (5) days from its submission.
The  Bureau  or  Regional  Office  shall  assess  the  employer for  every  Collective  Bargaining
Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other
ainount  as  maJ  be  deemed  appropriate  and  necessary  by  the_ Seer?tgry  of  L.ap9r  end
Eiip!c`,'menlsoLE for the  effective and  efficient administration  of the Voluntary Arbitration
Program.  Any  amount  collected  under this  provision  shall  accrue  to  the  Special  Voluntary
Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in the publication of all final
decisions,  orders  and  awards  of the  Seoretary  of  Labor  and  ErTPIpymen.!SQLF,. .Reg_i9T9l
Directors  and  the  CommissicncLR.
March 21,  1989} (237a)
Art. 230.  Prohibition on certification election. The Bureau shall not entertain any petition
for  certification  election  or  any  other  action  which  may  disturb  the  administration  of  duly
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67,15,  March 21,1989 (238a)


Art.   231.   Privileged   communication. Information   and   statements  made   at  conciliation
proceedings shall be treated as privileged communication and shall not be used as evidence
in the Commission CLR.  Conciliators and similar officials shall not testify in any court or body
regarding any matters taken up at conciliation proceedings conducted by them. (239a)
Title IV
LABOR ORGANIZATIONS
Chapter I
REGISTRATION AND CANCELLATION
Art.  232.  Requirements of Registration. A federation,  national  union  or industry  or trade
union center or an independent union shall  acquire legal  personality and shall  be entitled to
the rights and privileges granted by law to legitimate labor organizations upon issuance of the
certificate of registration based on the following requirements:
(a)      Fifty pesos (P50.cO) registration fee;
(b)      The   names   of   its   officers,   their   addresses,   the   principal   address   of   the   labor
organization, the minutes of the organizational meetings and the list of the workers who
participated in such meetings;
(c)      ln case the applicant is an independent union, the names of all its members comprising
at least twenty percent FIFTEEN PERCENT (15%) of all the employees in the bargaining
unit where it seeks to operate;
(d)      lfthe applicant union has been in existence for one or more years, copies of its annual
financial reports; and
(e)      EetH:  ELECTRONIC  copies  of  the  constitution  and  by-laws  of  the  applicant  union,
minutes of its adoption or ratification, and the list of the members who participated in it,
(240a)
Art.  233.  Chartering  and  Creation  of a  Local  Chapter.  A  duly  registered  federation  or
national union may directly create a local chapter by issuing a charter certificate indicating the
establishment  of  the  local  chapter.   The  chapter  shall  acquire  legal   personality  only  for
purposes  of filing  a  petition  for  certification  election  from  the  date  it  was  issued  a  charter
certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization
only upon the submission of the following doouments in addition to its charter certificate:
(a)      The  names  of the  chapter's  officers,  their  addresses,  and  the  principal  office  of the
chapter; and
(b)      The chapter's constitution and by-laws: Prov/.ded, That where the chapter's constitution
and by-laws are the same as that of the federation or the national union, this fact shall
be indicated accordingly.
The  additional  supporting  requirements  shall  be  certified  under  oath  by  the  seoretary  or
treasurer of the chapter and attested by its president. (241 )
Art.  234.  Action  on  Application.  The  Bureau  shall  act  on  all  applications  for  registration
within thirty (30) days from filing.
All  requisite  documents  and  papers  shall  be  certified  under  oath  by  the  seoretary  or  the
treasurer of the organization, as the case may be, and attested to by its president. (242)
Art. 235. Denial of Registration; Appeal. The decision of the Labor Relations Division in the
regional  office  denying  registration  may  be  appealed  by  the  applicant  union  to the  Bureau
within ten (10) days from receipt of notice thereof. (243)


Art. 236. Addltlonal Requirements for Federations or National UniorLs. Subject t_o__Article
238T lf the applicant for registration  is a federation or a  national  union,  it shall,  in addition to
the requirements of the preceding Articles, submit the following:
(a)      Proof of the affiliation  of at least ten  (10)  locals  or chapters,  each  of which  must be a
duly recognized collective bargaining agent in the establishment or industry in which  it
operates, supporting the registration of such applicant federation or national union; and
(b)     The names and addresses of the companies where the locals or chapters operate and
the list of all the members in each company involved.  (244a)
Art. 237. Cancellation of Registi.ation. The certificate of registration of any legitimate labor
organization,  whether national  or local,  may  be cancelled  by the  Bureau,  after due  hearing,
only on the grounds specified in Article 239 hereof.  (245a)
Art. 238. Effect of a Petition for Cancellation of Registration. A petition for cancellation of
union  registration  shall  not  suspend  the  proceedings  for  certification  election  nor  shall  it
prevent the filing of a petition for certification election.  In case of cancellation,  nothing herein
shall restrict the right of the union to seekjust and equitable remedies in the appropriate courts.
(246)
Art.  239.  Grounds for Canc®Ilat]on  of Union  Roglstrat[on.  The following  may  constitute
a::=::;::S=ii3+,6fin'C6!Eatfnuif,ourin;C#A+eg:SEF#itcsEtE±:C!oTLELyDUFEORPRA%yESoSFTH|HE
FOLLOVVING GROUNDS:
(a)      Misrepresentation, false statement or fraud in connection with the adoption or ratification
of the constitution and by-laws or amendments thereto, the minutes of ratification,  and
the list of members who tcok part in the ratification;
(b)      Misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, and the list Of voters;
(c)      Voluntary dissolution by the members. (247a)
Art.  240.  Voluntary  Cancellation  of  Registration.  The  registration  of  a  legitimate  labor
organization may be cancelled by the organization itself: Provi-ded, That at least two-thirds of
its  general  membership  votes,  in  a  meeting  duly  called  for  that  purpose  to  dissolve  the
organization:   Provi.ded,   further,   That  an   application   to   cancel   registration   is  thereafter
submitted by the board of the organization, attested to by the president thereof. (248)
Art. 241.  Equity of the Incumbent. All existing federations and  national unions which meet
the qualifications of a legitimate labor organieation and  none of the grounds for cancellation
shall continue to maintain their existing affiliates regardless of the nature of the industry and
the location of the affiliates. (249)
ART.  242.  WHEN  MULTl-EMPLOYER  BARGAINING  AVAILABLE.  LEGITIMATE  LABOR
UNIONS AND  EMPLOYERS  MAY AGREE  IN VVRITING TO  COME TOGETHER  FOR THE
PURPOSE OF COLLECTIVE BARGAINING, PROVIDED:
(a)      ONLY    LEGITIMATE    LABOR    UNIONS    VVHO    ARE    INCUMBENT    EXCLUSIVE
BARGAINING AGENTS MAY PARTICIPATE AND NEGOTIATE IN MULTl-EMPLOYER
BARGAINING;
(b)      ONLY EMPLOYERS WTH COUNTERPART LEGITIMATE LABOR UNIONS WHOARE
INCUMBENT   BARGAINING   AGENTS   MAY   PARTICIPATE   AND   NEGOTIATE   IN
MULTl-EMPLOYER BARGAINING; AND
(c)      ONLY THOSE LEGITIMATE LABOR UNIONS WHO PERTAIN TO EMPLOYER UNITS
WHO CONSENT TO MULTl-EMPLOYER BARGAINING MAY PARTICIPATE IN MULTl-
EMPLOYER BARGAINING.  (new)


ART.    243.    PROCEDURE    IN    MULTl-EMPLOYER    BARGAINING.    MULTl-EMPLOYER
BARGAINING MAY BE INITIATED BY THE LABOR UNloNS OR BY THE EMPLOYERS.
(a)      LEGITIMATE    LABOR    UNIONS    WHO    DESIRE    TO    NEGOTIATE    WITH    THEIR
EMPLOYERS COLLECTIVELY SHALL EXECUTE A WRITTEN AGREEMENT AMONG
THEMSELVES, WHICH SHALL CONTAIN THE FOLLOWING:
(1)      THE  NAMES  OF  THE  LABOR  UNIONS  WHO  DESIRE  TO  AVAIL  OF  MULTl-
EMPLOYER BARGAINING;
(2)      EACH  LABORUNION  INTHE EMPLOYER UNIT;
(3)      THE  FACT  THAT  EACH  OF  THE  LABOR  UNIONS  ARE  THE  INCUMBENT
EXCLUSIVE  BARGAINING  AGENTS  FOR  THEIR  RESPECTIVE  EMPLOYER
UNITS;
(4)      THE DURATloN OF THE COLLECTIVE BARGAINING AGREEMENTS,  lF ANY,
ENTERED    INTO    BY   EACH    LABOR    UNION   WITH   THEIR    RESPECTIVE
EMPLOYERS.
LEGITIMATE    LABOR    UNIONS    WHO    ARE    MEMBERS    OF    THE    SAME
REGISTERED    FEDERATION,     NATIONAL,    OR    INDUSTRY    UNION    ARE
EXEMPT FROM EXECUTION OF THIS WRllTEN AGREEMENT.
(b)      THE   LEGITIMATE   LABOR   UNIONS   WHO   DESIRE   TO   BARGAIN   WITH   MULTl-
EMPLOYERS  SHALL  SEND  A  WRITTEN   NOTICE  TO  THIS   EFFECT  TO   EACH
EMPLOYER    CONCERNED.    THE    WRITTEN    AGREEMENT    STATED    IN    THE
PRECEDING  PARAGRAPH,  OR THE  CERTIFICATES  OF  REGISTRATION  0F THE
FEDERATION,   NATIONAL,   OR   INDUSTRY   UNloN,   SHALL   ACCOMPANY   SAID
NOTICE.
EMPLOYERS WHO AGREE TO GROUP THEMSELVES  OR  USE  THEIR  EXISTING
ASSOCIATIONS TO  ENGAGE  IN  MULTl-EMPLOYER BARGAINING  SHALL SEND A
WRITTEN   NOTICE  TO   EACH   OF  THEIR  COUNTERPART  LEGITIMATE   LABOR
UNIONS     INDICATING    THEIR     DESIRE    TO    ENGAGE     IN     MULTl-EMPLOYER
BARGAINING.  SAID NOTICE SHALL INDICATE THE FOLLOWING:
(1)      THE   NAMES  OF  THE   EMPLOYERS  WHO   DESIRE  TO  AVAIL  OF   MULTl-
EMPLOYER BARGAINING;
(2)      THEIR CORRESPONDING LEGITIMATE LABOR ORGANIZATIONS;
(3)      THE   FACT   THAT   EACH   CORRESPONDING   LEGITIMATE   UNION   IS   AN
INCUMBENT EXCLUSIVE BARGAINING AGENT;
(4)      THE      DURATION      OF      THE      CURRENT      COLLECTIVE      BARGAINING
AGREEMENT,   lF  ANY,   ENTERED  INTO  BY  EACH   EMPLOYER  WITH  THE
COUNTERPART LEGITIMATE LABOR UNION.
(c)       EACH    EMPLOYER   OR   CONCERNED    LABOR    UNION    SHALL    EXPRESS    ITS
WILLINGNESS      OR      REFUSAL      TO      PARTICIPATE      IN      MULTI-EMPLOYER
BARGAINING  IN  WRITING,  ADDRESSED  TO  ITS  CORRESPONDING  EXCLUSIVE
BARGAINING  AGENT  OR  EMPLOYER.  NEGOTIATIONS  MAY  COMMENCE  ONLY
WITH    REGARD   TO   RESPECTIVE   EMPLOYERS   AND   LABOR   UNIONS   WHO
CONSENT T0 PARTICIPATE IN MULTl-EMPLOYER BARGAINING;
(d)      DURING THE COURSE OF NEGOTIATIONS, CONSENTING EMPLOYERS AND THE
CORRESPONDING  LEGITIMATE  LABOR  UNIONS  SHALL  DISCUSS  AND  AGREE
ON THE FOLLOWING:
(1)      THE MANNER BY WHICH  NEGOTIATIONS SHALL PROCEED;
(2)      THE    SCOPE    AND    COVERAGE    OF    THE    NEGOTIATIONS    AND    THE
AGREEMENT; AND
(3)     WHERE    APPROPRIATE,    THE    EFFECT    OF    THE    NEGOTIATIONS    ON
CURRENT AGREEMENTS OR CONDITIONS OF EMPLOYMENT AMONG THE
PARTIES.  (new)
ART. 244. POSTING AND REGISTRATION OF COLLECTIVE BARGAINING AGREEIWIENT.
TWO   (2)   SIGNED  COPIES   OF   COLLECTIVE   BARGAINING  AGREEMENT   REACHED
THROUGH MULTl-EMPLOYER BARGAINING SHALL BE POSTED FOR AT LEAST FIVE (5)


DAYS  IN TWO  (2) CONSPICUOUS AREAS  IN  EACH WORKPLACE OF THE  EMPLOYER
UNITS  CONCERNED.  THIS  COLLECTIVE  BARGAINING  AGREEMENT  SHALL  AFFECT
ONLY THOSE EMPLOYEES IN THE BARGAINING UNITS WHO HAVE RATIFIED IT.
THE SAME COLLECTIVE BARGAINING AGREEMENT SHALL BE REGISTERED WITH THE
DEPARTMENT IN ACCORDANCE WITH APPLICABLE LAWS AND RULES.  (new)
Chapter 11
RIGHTS AND CONDITIONS OF MEMBERSHIP
Art.  245.  Rights and Conditions of Membership in a Labor Organization. The following
are the rights and conditions of membership in a labor organization:
(a)      No arbitrary or excessive initiation fees shall be required of the members of a legitimate
labor  organization  nor  shall  arbitrary,  excessive  or  oppressive  fine  and  forfeiture  be
imposed;
(b)      The  members  shall  be  entitled  to  full  and  detailed  reports  from  their  officers  and
representatives of all financial transactions  as  provided for in the constitution  and  by-
laws of the organization;
(c)      The members shall directly electtheir officers in the local union, as well as their national
officers in the national  union or federation to which they or their local union is affiliated,
by secret ballot at intervals of five (5) years.  No qualification requirement for candidacy
to  any  position  shall  be  imposed  other than  membership  in  good  standing  in  subject
labor organization. The secretary or any other responsible union officer shall furnish the
Seoretary  of  Labor  and  Employment  SOLE  with  a  list  of the  newlyelected  officers,
together with the appointive officers or agents who are entrusted with the handling  of
funds within thirty (30) calendar days after the election of officers or from the occurrence
of any change in the list of officers of the labor organization;
(d)      The  members  shall determine  by secret ballot,  after due deliberation,  any question  of
major policy affecting the entire  membership of the  organization,  unless the  nature  of
the organization or force majeure renders such secret ballot impractical,  in which case,
the board of directors of the organization may make the decision in behalf of the general
membership;
(e)      No labor organization shall knowingly admit as members or continue in membership any
individuals who  belongs to a subversive organization or who is ARE engaged  directly
or indirectly in any subversive activity;
(f)        No  person who  has  been  convicted  of a  crime  involving  moral turpitude,  INCLUDING
SEXUAL HARASSMENT OR OTHER SEX-RELATED OFFENSES, shall be eligible for
election as a union officer or for appointment to any position in the union;
(g)      No officer, agent or member ofa labororganization shall collect any fees, dues, orother
contributions in its behalf or make any disbursement of its money or funds unless he+s
THEY ARE duly authorized pursuant to its constitution and by-laws;
(h)      Every payment offees, dues or other contributions by a member shall be evidenced by
a receipt signed by the officer or agent making the collection and entered into the record
of the organization to be kept and maintained for the purpose;
(i)       The funds of the organization shall not be applied for any purpose or object other than
those expressly provided by its constitution and by-laws or those expressly authorized
by written resolution adopted by the majority of the members at a general meeting duly
called for the purpose;
0)       Every income or revenue of the organization shall be evidenced by a record showing its
source,  and  every  expenditure  of its funds  shall  be  evidenced  by  a  receipt from  the
person to whom the payment is made, which shall state the date, place and purpose of
such  payment.  Such  record  or  receipt  shall  form  part  of the  financial  records  of the
organization.


Any action  involving the funds of the  organieation shall  prescribe after three  (3) years
from the date of submission  of the annual financial  report to the Department Of Labor
and  Employment  DOLE  or from  the  date  the  same  should  have  been  submitted  as
required by law, whichever comes earlier:  Provt.dad, That this provision shall apply only
to a legitimate labor organization which has submitted the financial report requirements
under this Code: Provt.ded,  further, That failure of any labor organization to comply with
the   periodic   financial   reports   required   by   law   and   such   rules   and   regulations
promulgated  thereunder  six  (6)  months  after  the  effectivfty  of  this  Act  Code  shall
automatically result in the cancellation of union registration of such labor organization;
(k)      The officers of any labor organization shall not be paid any compensation other than the
salaries and expenses due to their positions as specifically provided for in its constitution
and by-laws,  or in a written resolution duly authorized by a majority Of all the members
at  a  general  membership  meeting  duly  called  for  the  purpose.  The  minutes  of  the
meeting and the list of participants and ballots cast shall be subject to inspection by the
Secretary    of    Labor    and    Employment    SOLE    or    hje    THEIR    duly    authorized
representatives.  Any irregularities  in the approval  of the  resolutions  shall  be a  ground
for impeachment or expulsion from the organieation;
(I)       The  treasurers  of any  labor  organizations  and  every  officers  thefeef who  is  ARE
responsible  for the  account  of such  organization  or for the  collection,  management,
disbursement,  oustody  or  control  of the  funds,  moneys  and  other  properties  of the
organieation,  shall  render to  the  organization  and  to  its  members  a true  and  correct
account of all moneys received and paid by b+in THEM since be THEY assumed office
or  since  the  last  day  on  which  be  THEY  rendered  such  account,  and  of  all  bonds,
securities  and other properties of the organieation  entrusted to his THEIR oustody or
under his THEIR control. The rendering Of such account shall be made:
(1)     At least once a yearwithin thirty (30) days afterthe close of its fiscal year,
(2)     At  such  other times  as  may  be  required  by  a  resolution  of the  majority  of the
members of the organization; and
(3)      Upon vacating his THEIR office.
The account shall  be duly audited and verified  by affidavit and a copy thereof shall  be
furnished the Secretary of Labor SOLE.
(in)     The   books  Of  accounts  and   other  records  of  the  financial   activities  of  any  labor
organization shall be open to inspection by any officer or member thereof during office
hours;
(n)      No special assessment or other extraordinary fees may be levied upon the members of
a  labor  organization  unless  authorized  by  a  written  resolution  of a  majority  of all  the
members in a general membership meeting duly called for the purpose. The seoretary
of  the  organieation  shall  record  the  minutes  of  the  meeting  including  the  list  of  all
members present, the votes cast, the purpose of the special assessment or fees and
the  recipient  of  such  assessment  or  fees.  The  record  shall  be  attested  to  by  the
president.
(o)      Other than for mandatory activities under the code,  no special assessments, from any
amount due to an employee without an  individual written  authorization duly signed  by
the  employee.  The  authorieation  should  specifically  state  the  amount,  purpose  and
beneficiary of the deduction; and
(p)      lt shall  be the duty of any  labor organization and  its  officers to  inform  its members  on
the  provisions  of  its  constitution  and  by-laws,  collective  bargaining  agreement,  the
prevailing labor relations system and all their rights and obligations under existing labor
laws AND LABOR-RELATED LAWS,  INCLUDING GENDER-RELATED LAVVS.
For this purpose, registered labor organizations may assess reasonable dues to finance labor
relations seminars and other labor education activities.
Any  violation  of  the  above  rights  and  conditions  of  membership  shall  be  a  ground  for
cancellation of union regjetration or expulsion of officers from office, whichever ie appropriate.


At least thirty percent (30%) of the members of a union or any member or members specially
concerned may report such violation to the Bureau. The Bureau shall have the power to hear
and decide any reported violation to mete the appropriate penalty.
Criminal   and   civil   liabilities   arising   from   violations   of   above   rights   and   conditions   of
membership shall continue to be under the jurisdiction of ordinary courts.  (250a)
Chapter Ill
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS
Art.  246.  Rights of Legitimate  Labor Organizations. A legitimate labor organization shall
have the right:
(a)      To act as the representative of its members for the purpose of collective bargaining;
(b)      To  be certified  as the exclusive  representative of all the employees in  an  appropriate
bargaining unit for purposes of collective bargaining;
(c)      To be furnished by the employer, upon written request, with its annual audited financial
statements,  including the balance sheet and the profit and  loss statement, within thirty
(30) calendar days from the date of receipt of the request, after the union has been duly
recognized   by   the   employer   or   certified   as   the   sole   and   exclusive   bargaining
representative of the employees in the bargaining unit, or within sixty (60) calendar days
before  the  expiration  of  the  existing  collective  bargaining  agreement,  or  during  the
collective bargaining negotiation;
(d)      To own property, real or personal, for the use and benefit of the labor organization and
its members;
(e)      To sue and be sued in its registered name; and
(f)       To undertake all other activities designed to benefit the organization and its members,
including cooperative, housing, welfare and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the contrary, the income and the
properties  of legitimate  labor organizations,  including  grants,  endowments,  gifts,  donations
and contributions they may receive from fraternal and similar organizations,  local or foreign,
which are actually,  directly and exclusively used for their lawiul purposes,  shall be free from
taxes, duties and other assessments. The exemptions provided herein may be withdrawn only
by a special law expressly repealing this provision.  (251 )
Art. 247. Reportorial Requirements. The following are documents required to be submitted
to the Bureau by the legitimate labor organization concerned:
(a)      Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the
list of members who took part  in the  ratification  of the  constitution  and  by-laws within
thirty   (30)   days   from   adoption   or   ratification   of  the   constitution   and   by-laws   or
amendments thereto;
(b)      Its list of officers,  minutes of the election of officers,  and  list of voters within thirty (30)
days from election;
(c)       Its annual financial report within thirty (30) days after the close of every fiscal year; and
(d)      Its list of members at least once a year orwhenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union
registration  but shall  subject the  erring  officers  or members to  suspension,  expulsion from
membership, or any appropriate penalty. (252)


Title V
COVERAGE
ART. 248. Coverage and Employees' Right to Self-Organization. All persons employed in
commercial,  industrial  and  agricultural  enterprises  and  in  religious,  charitable,  medical,  or
educational  institutions,  whether  operating  for  profit  or  not,   shall   have  the  right  to  self-
organization and to form, join, or assist labor organizations of their own choosing for purposes
of collective  bargaining. Ambulant,  intermittent and  itinerant workers,  self-employed  people,
rural workers and those without any definite employers may form labor organizations for their
mutual aid and protection.  (253)
Art. 249. Right of Employees in the Public Service. Employees of government corporations
established  under  the  Corporation  Code  shall  have  the  right  to  organize  and  to  bargain
collectively with their respective employers. All other employees in the civil service shall have
the right to form associations for purposes not contrary to law. (254)
Art. 250. Ineligibility of Managerial Employees to Join any Labor Organization; Right of
Supervisory  Employees.  Managerial employees are not eligible to join,  assist or form any
labor  organization.   Supervisory  employees  shall   not   be   eligible  for  membership   in  the
collective bargaining unit of the rank-and-file employees but may join, assist or form separate
collective bargaining units and/or legitimate labor organizations of their own. The rank and file
union and the supervisors' union operating within the same establishment may join the same
federation or national union.  (255)
Art. 251. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. The
inclusion  as  union  members of employees outside the bargaining  unit shall  not be a ground
for the cancellation of the registration of the union. Said employees are automatically deemed
removed from the list of membership of said union. (256)
Art. 252. Non-Abridgment of Right to Selforganization. It shall be unlawiul for any person
to  restrain,  coerce,  discriminate  against or  unduly  interfere with  employees  and  workers  in
their exercise of the right to self-organization. Such right shall include the right to form, join, or
assist labor organizations for the purpose of collective bargaining through representatives of
their own choosing and to engage in lawful concerted activities for the same purpose for their
mutual aid and protection, subject to the provisions of Article 264 283 of this Code.  (257a)
Title VI
UNFAIR LABOR PRACTICES
Chapter I
CONCEPT
Art.  253.  Concept of Unfair  Labor  Practice  and  Procedure  for  Prosecution  Thereof.
Unfair  labor  practices  violate  the  constitutional  right  of  workers  and  employees  to  self-
organization, are inimical to the legitimate interests of both labor and management,  including
their  right to  bargain  collectively  and  otherwise  deal  with  each  other  in  an  atmosphere  of
freedom and mutual respect, disrupt industrial peace and hinder the promotion of healthy and
stable labor management relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor and
management  but  are  also  criminal  offenses  against  the  State  which  shall  be  subject  to
prosecution and punishment as herein provided.
subject to the exercise by the President er_Py !h_e_ Seer!t_ap.g[.La,PPT afd Fm[q?y_T:i:_S_9±E
of the powers vested in them by Articles 263  282 and 264 283 of this Code, the civil aspects


of  all  cases  involving  unfair  labor  practices,  which  may  include  claims  for  actual,  moral,
exemplary and other forms of damages,  attomey's fees and other affirmative relief,  shall be
under  the  jurisdiction  of  the  Labor  Arbiters  JUDGES  T0  THE  CLR.  The  Labor  Arbiters
JUDGES  TO  THE  CLR shall  give  utmost  priority to the  hearing  and  resolution  of all  cases
involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days
from the time they are submitted for decision.
Recovery  of civil  liability in the administrative  proceedings  shall  bar recovery  under the  Civil
Code.
No criminal prosecution under this Title may be instituted without a final judgment finding that
an unfair labor practice was committed, having been first obtained in the preceding paragraph.
During   the   pendency   of  such   administrative   proceeding,   the   running   of  the   period   of
prescription of the criminal offense herein penalized shall be considered interrupted: Provr.ded,
however, That the final judgment in the administrative proceedings shall not be binding in the
criminal case nor be considered as evidence of guilt but merely as proof of compliance of the
requirements therein set forth. (258a)
Chapter 11
UNFAIR LABOR PRACTICES OF EMPLOYERS
Art.  254.  Unfair  Labor Practices  of Employers.  It  shall  be  unlawful  for an employers to
commit any of the following unfair labor practices:
(a)      To  interfere  with,  restrain  or  coerce  employees  in  the  exercise  of their  right  to  self-
organization;
(b)      To require as a condition of employment that a persons oran employees shall notjoin
a labor organization or shall withdraw from one to which he be!cngs THEY BELONG;
(c)      To contract out services or functions being performed by union members when such will
interfere  with,   restrain  or  coerce  employees  in  the  exercise  of  their  right  to  self-
organization;
(d)      To initiate, dominate, assist or otherwise interfere with the formation or administration of
any  labor  organization,  including  the  giving  of  financial  or  other  support  to  it  or  its
organieers or supporters;
(e)      To discriminate  in  regard to wages,  hours of work and  other terms and  conditions  of
employment in order to encourage or discourage membership in any labor organization.
Nothing in this Cede or in any other law shall stop the parties from requiring membership
in a recognieed collective bargaining agent as a condition for employment, except those
employees who are already members of another union at the time of the signing of the
collective bargaining agreement.   Employees of an appropriate bargaining unit who are
not  members  of  the   recognized   collective   bargaining   agent  may  be  assessed   a
reasonable fee equivalent to the dues and other fees paid by members of the recognized
collective bargaining agent,  if such  non-union  members accept the benefits under the
collective  bargaining  agreement:  Provided,  That  the  individual  authorization  required
under Article 242 240, paragraph (o) of this Code shall not apply to the non-members of
the recognieed collective bargaining agent;
(f)       To dismiss, discharge or otherwise prejudice or discriminate against ae employees for
having given or being about to give testimony under this Code;
(g)      To violate the duty,  OR  REFUSE,  to  bargain  collectively  as  prescribed  by this  Code
WITH THE EMPLOYEES;
(h)      To pay negotiation or attomey's fees to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any other dispute; or
(i)       To violate a collective bargaining agreement. The provisions of the preceding paragraph
notwithstanding,   only   the   officers   and   agents   of   corporations,    associations   or


partnerships  who   have   actually   participated   in,   authorized   or   ratified   unfair   labor
practices shall be held criminally liable.  (259a)
Chapter Ill
UNFAIR LABOR PRACTICES 0F LABOR ORGANIZATIONS
Art. 255. Unfair Labor Practices of Labor Organizations. It shall be unfair labor practice for
a labor organization, its officers, agents or representatives:
(a)      To  restrain  or  coerce  employees  in  the  exercise  of  their  right  to  self-organization.
However, a labor organization shall have the right to prescribe its own rules with respect
to the acquisition or retention of membership;
(b)      To  cause  or  attempt to  cause  af+  employers  to  discriminate  against an employees,
including  discrimination  against  an  employees  with  respect  to  whom  membership  in
such organization has been denied or to terminate an employees on any ground other
than  the   usual  terms  and   conditions   under  which   membership  or  continuation  of
membership is made available to other members;
(c)      To violate the duty,  or refuse to  bargain  collectively with the employers,  provided  it is
the representative of the employees;
(d)     To cause or attempt to cause an employers to pay or deliver or agree to pay or deliver
any money or other things of value, in the nature of an exaction, for services which are
not   performed   or   not  to   be   performed,   including   the   demand   for  fee   for   union
negotiations;
(e)      To  ask  for  or  accept  negotiation  or  attorney's  fees  from  employers  as  part  of  the
settlement of any issue in collective bargaining or any other dispute; or
(f)       To violate a collective bargaining agreement.
The  provisions  of the  preceding  paragraph  notwithstanding,  only  the  officers,  members  of
governing    boards,    representatives   or   agents   or   members   of   labor   associations   or
organizations who  have  actually  participated  in,  authorized  or ratified  unfair labor  practices
shall  be held criminally liable.  (260a)
Title Vll
COLLECTIVE BARGAINING AND ADIvllNISTRATION OF AGREEMENTS
Art. 256. Procedure in Collective Bargaining. The following procedures shall be observed
in collective bargaining lN ALL PUBLIC AND PRIVATE ENTITIES:
(a)      When a party desires to negotiate an agreement, it shall serve a written notice upon the
other party with a statement of its proposals. The other party shall make a reply thereto
not later than ten (10) calendar days from receipt of such notice;
(b)      Should differences arise on the basis of such notice and reply, either party may request
for a conference which shall begin not later than ten (10) calendar days from the date of
request.
(c)      lf the  dispute  is  not  settled,  the  Board  shall  intervene  upon  request  of either or  both
parties or at its own initiative and immediately call the parties to conciliation  meetings.
The  Board  shall  have the  power to  issue  subpoenas  requiring the  attendance  of the
parties  to  such  meetings.  It  shall  be  the  duty  of  the  parties  to  participate  fully  and
promptly in the conciliation meetings the Board may call;
(d)      During the conciliation proceedings in the  Board, the parties are prohibited from doing
any act which may disrupt or impede the early settlement of the disputes; and
(e)      The Board shall exert all efforts to settle disputes amicably and encourage the parties
to submit their case to a voluntary arbitrator. (261 a)
Art.   257.   Duty  to   Bargain   Collectively   in   the  Absence   of  Collective   Bargaining
Agreements. In the absence of an agreement or other voluntary arrangement providing for a


more expeditious manner of collective bargaining,  it shall  be the duty of employers and the
representatives of the employees to bargain collectively in accordance with the provisions of
this Code. (262a)
Art. 258. Meaning of Duty to Bargain Collectively. The duty to bargain collectively means
the  performance  of a  mutual  obligation to  meet and  convene  promptly  and  expeditiously  in
good faith for the purpose of negotiating an agreement with respect to wages, hours of work
and  all  other  terms  and  conditions  of  employment  including  propesals  for  adjusting  any
grievances or questions arising under such agreement and exeouting a contract incorporating
such agreements if requested by either party but such duty does not compel any party to agree
to a proposal or to make any concession. (263)
Art.  259.  Duty  to  Bargain  Collectively  When  There  Exists  a  Collective  Bargaining
Agreement. Vvhen there is a collective bargaining agreement, the duty to bargain collectively
shall also mean that neither party shall terminate nor modify such agreement during its lifetime.
However, either party can serve a written notice to terminate or modify the agreement at least
sixty (60) days prior to its expiration date. It shall be the duty of both parties to keep the status
quo and to continue in full force and effect the terms and conditions of the existing agreement
during the 60-day period andior until a new agreement is reached by the parties. (264a)
Art.   260.   Tei.Ims   of  a   Collective   Bargaining   Agreement.   Any   Collective   Bargaining
Agreement  that  the  parties  may  enter  into  shall,  insofar  as  the  representation  aspect  is
concerned,  be for a term of five (5) years.  No petition questioning the majority status of the
incumbent   bargaining   agent  shall   be   entertained   and   no   certification   election   shall   be
conducted by the Department of Labor and Employment DOLE outside of the sixtyrday period
immediately  before  the  date  of  expiry  of  such  five-year  term  of the  Collective  Bargaining
Agreement. All other provisions of the Collective Bargaining Agreement shall be renegotiated
not later than three (3) years after its execution. Any agreement on such other provisions of
the Collective Bargaining Agreement entered into within six (6) months from the date of expiry
of the term  of such other provisions as fixed  in such Collective  Bargaining Agreement,  shall
retroact to the day  immediately following  such  date.  If any such  agreement is  entered  into
beyond six (6) months, the parties shall agree on the duration of retroactivfty thereof.  In case
of a  deadlock in  the  renegotiation  Of the  Collective  Bargaining Agreement,  the  parties  may
exercise their rights under this Code.  (265)
Art. 261. Injunction Prohibited. No temporary or permanent injunction or restraining order in
any case involving or growing out of labor disputes shall be issued by any court or other entity,
except as otherwise provided in Articles 21€ 210 and 264 283 of this Code. (266a)
Art. 262. Exclusive Bargaining Representation and Workers' Participation in Policy and
Decision-Making.  The  labor  organization  designated  or  selected  by  the  majority  of  the
employees in an appropriate collective bargaining unit shall be the exclusive representative of
the  employees  in  such unit for the  purpose of collective  bargaining.  However,  an  individual
employee or group of employees shall have the right at any time to present grievances to their
employers.
Any provision of law to the contrary notwithstanding, workers shall  have the right,  subject to
such rules and regulations as the Seoretary of Labor and Employment SOLE may promulgate,
to participate in  policy and decision-making  processes of the establishment where they are
employed insofar as said processes will directly affect their rights,  benefits and welfare.  For
this purpose, workers and employers may form labor-management councils:  Provt.ded, That
the representatives of the workers in such labor-management councils shall be elected by at
least the majority of all employees in Said eet@bli6hment ThE APPROPR14TF_ExqLU_S[\f
BARGAINING   REPRESENTATIVE;   PROV/DED,    FUR7lHER,   THAT   AT   LEAST   FIFTY


PERCENT (50%) OF THE ELECTED REPRESENTATIVES OF EACH 0F "E VVORKERS
AND EMPLOYERS ARE WOMEN.
VVHERE  THERE  ARE   BARGAINING   UNITS  0F   RANK-AND-FILE  AND  SUPERVISORY
EMPLOYEES  IN THE  SAME  ESTABLISHMENT,  THE  EMPLOYEES  SHALL BE  ENTITLED
TO  BE  REPRESENTED  IN  ll/VO  (2)  SEPARATE  LABOR-MANAGEMENT  COUNCILS  IN
THE  ESTABLISHMENT.   VVHERE  NO  LEGITIMATE  LABOR ORGANIZATION  EXIST,  THE
WORKERS REPRRESENTATIVE SHALL BE ELECTED DIRECTLY BY "E EMPLOYEES
AT   LARGE;    PROV/DED,   THAT   THERE   SHALL   BE   TWO   (2)   SEPARATE   LABOR-
MANAGEMENT         COUNCI LS,          ONE         VVITH          RANK-AND-FI LE         EMPLOYEES
REPRESENTATIVES,       AND       ANOTHER       VVITH       SUPERVISORY       EMPLOYEES
REPRESENTATIVES; PROV/DED, F/MLLY, THAT AT LEAST FIFTY PERCENT (50%) OF
THE     REPRESENTATIVES     OF     EACH     OF    THE    WORKERS    AND     EMPLOYERS
REPRESENTATION ARE V\/OMEN.  (267a)
Art.     263.     Representation     Issue    in    Organized     Establishments.     In     organized
establishments,  when  a  verified  petition  questioning  the  majority  status  of  the  inoumbent
bargaining  agents  is filed  by  any legitimate  labor organization  including  a  national  union or
federation which has already issued a charter certificate to its local chapter participating in the
certification  election  or a  local  chapter which  has  been  issued  a  charter  certificate  by  the
national  union  or federation  before the  Department of Labor and  Employment  DOLE within
the  sixty  (60)rday  peried  before  the  expiration  of the  collective  bargaining  agreement,  the
MEDIATOR-ARBITER  (Med-Arbiter)  shall  automatically  order  an  election  by  secret  ballot
when the verified petition is supported by the written consent of at least twenty-five percent
(25%) of all the employees in the bargaining unit to ascertain the will of the employees in the
appropriate bargaining unit. To have a valid election, at least a majority of all eligible voters in
the unit must have cast their votes.  The labor union  receiving the majority of the valid votes
cast shall be certified as the exclusive bargaining agent of all the workers in the unit. Vvhen an
election which provides for three or more choices results in no choice receiving a majority Of
the valid votes cast, a run-off election shall be conducted between the labor unions receiving
the two highest number of votes:  Provi.ded, That the total number of votes for all contending
unions is at least fifty percent (50%) of the number of votes cast.  In cases where the petition
was filed  by a national  union or federation,  it shall  not be required to disclose the  names of
the local chapter's officers and members.
At the expiration of the freedom peried, the employers shall continue to recognize the majority
status of the incumbent bargaining agents where no petition for certification election is filed.
(268a)
Art. 264. Petitions in Unorganized Establishments. In any establishment where there is no
certifiecl bargaining agent, a certification election shall automatically be conducted by the Med-
Arbiter UPON THE TRANSMITTAL OF THE RECORDS FROM THE REGIONAL DIRECTOR.
(269a)
Art. 265. When an Employer May File Petition. Vvhen requested to bargain collectively, an
EMPLOYERS may petition the Bureau for an election. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall, after hearing, order a certification election.
All  certification  cases  shall  be  decided  within  twenty  (20)  working  days.  The  Bureau  shall
conduct  a  certification  election  within  twenty  (20)  days  in  accordance  with  the  rules  and
regulations prescribed by the Seoretary of Labor and Employment SOLE. (270a)
Art. 266. Employer as Bystander. In all cases, whether the petition for certification election
is  filed  by  an  employers  or  a  legitimate  labor  organizations,  the  employers  shall  not  be
considered  a  party  thereto  with  a  concomitant  right  to  oppose  a  petition  for  certification
election. Iba employers' participation in such proceedings shall be limited to: (1 ) being notified


or informed of petitions of such nature; and (2) submitting the list of employees during the pre-
election conference should the Med-Arbiter act favorably on the petition. (271 a)
ART.         267.         RECLASSIFICATION        OF         POSITIONS,        TRANSFERS,         ETC.
RECLASSIFICATION,  DEMOTION, PROMOTION AND TRANSFER OF POSITIONS SHALL
NOT    BE    UNDERTAKEN    DURING    THE    SIXTY    (60)-DAY    FREEDOM    PERIOD    OR
THROUGHOUT THE  CONDUCT OF  CERTIFICATION,  CONSENT,  RUN-OFF  ELECTION,
OR RERUN.  (new)
Art. 268. Appeal from Certification Election Orders. Any party to an election may appeal
the order or results of the election as determined by the Med-Arbiter directly to the Secretar,'
of Labor and Employment SOLE on the ground that the rules and regulations or parts thereof
established by the Seoretary of Labor and Employment SOLE for the conduct of the election
have  been  violated.  VVHERE  APPEAL  IS  AVAILABLE,  A  PARTY  AGGRIEVED  BY  THE
DECISION   OF   THE   MED-ARBITER   HAS   TEN   (10)   DAYS   FROM   RECEIPT   OF   THE
ADVERSE  ORDER  VVITHIN  VVHICH  TO  APPEAL  TO  "E  SOLE.  Such  appeal  shall  be
decided within fifteen (15) calendar days. (272a)
ART.  269.  WHERE  TO  FILE.  ANY  LEGITIMATE  LABOR  ORGANIZATION  MAY  FILE  A
REQUEST   FOR   SOLE   AND   ExcLusivE   BARGAINING   AGENTmEPRESENTATivE
(SEBA)  CERTIFICATION  IN THE  REGIONAL OFFICE VVHICH  ISSUED  ITS  CERTIFICATE
OF REGISTRATION 0R CERTIFICATE OF CREATION OF CHARTERED LOCAL.  (new)
ART. 270.  REQUIREMENTS FOR REQUEST 0F SEBA CERTIFICATION. THE REQUEST
FOR CERTIFICATION SHALL INDICATE:
(a)      THE    NAME    AND    ADDRESS    OF    THE    REQUESTING    LEGITIMATE    LABOR
ORGANIZATION;
(b)      THE NAMEANDADDRESS OF THE COMPANYWHERE ITOPERATES;
(c)      THE BARGAINING UNIT SOUGHTTO BE REPRESENTED;
(d)      THE APPROXIMATE NUMBER OF EMPLOYEES IN THE BARGAINING UNIT; AND
(f)       THE  STATEMENT OF THE  EXISTENCE  OR  NON-EXISTENCE  OF OTHER  LABOR
ORGANIZATIONS 0R COLLECTIVE BARGAINING AGREEMENT.
THE  CERTIFICATE  0F  REGISTRATloN  AS  DULY  CERTIFIED  BY THE  PRESIDENT OF
THE REQUESTING UNION OR CERTIFICATE OF CREATION 0F CHARTERED LOCAL AS
DULY CERTIFIED BY THE PRESIDENT OF THE FEDERATION OF THE LOCAL SHALL BE
ATTACHED TO THE REQUEST. (new)
ART.  271.  ACTION  0N THE  REQUEST. VVITHIN  ONE  (1)  DAY  FROM THE  SUBMISSION
OF THE REQUEST, THE REGIONAL DIRECTOR SHALL:
(a)       DETERMINE  VVHETHER  THE  REQUEST  IS  COMPLIANT  VVITH  THE  PRECEDING
ARTICLE AND VVHETHER THE BARGAINING UNIT SOUGHT TO BE REPRESENTED
IS ORGANIZED OR NOT; AND
(b)      REQUESTA COPY OF THE PAYROLL FOR PURPOSES OF SEBA CERTIFICATION
PURSUANT TO THE NEXT PRECEDING ARTICLE.
IF THE REGIONAL DIRECTOR FINDS THE SUBMISSION DEFICIENT, THE REQUESTING
UNION  OR  LOCAL  SHALL  BE  ADVISED  TO  COMPLY  VVITHIN  TEN  (10)  DAYS  FROM
NOTICE. FAILURE T0 COMPLY VVITHIN THE PRESCRIBED PERIOD SHALL BE DEEMED
AS A VVITHDRAWAL OF THE REQUEST FOR SEBA CERTIFICATION.  (new)
ART.  272.  REQUEST FOR CERTIFICATION IN UNORGANIZED ESTABLISHMENT WITH
ONLY ONE LEGITIMATE LABOR ORGANIZATION; VALIDATION PROCEEDINGS. IF THE
REGIONAL DIRECTOR FINDS THE ESTABLISHMENT UNORGANIZED VVITH ONLY ONE


LEGITIMATE LABOR ORGANIZATION, THEY SHALL CALL A CONFERENCE WITHIN FIVE
(5) WORK DAYS FOR THE SUBMISSION OF THE FOLLOVVING:
(a)      THE NAMES OF EMPLOYEES IN THE COVERED BARGAINING UNITWHO SIGNIFY
THEIR SUPPORT FOR THE CERTIFICATION,  PROVIDED THAT SAID EMPLOYEES
COMPRISE  AT  LEAST  MAJORITY  0F  THE  NUMBER  OF  EMPLOYEES   IN  THE
COVERED BARGAINING UNIT; AND
(b)      CERTIFICATION UNDER OATH BYTHE PRESIDENTOFTHE REQUESTING UNION
OR   LOCAL  THAT  ALL   DOCUMENTS   SUBMITTED  ARE  TRUE  AND   CORRECT
BASED ON THEIR PERSONAL KNOWLEDGE.
THE   SUBMISSION   SHALL   BE   PRESUMED   TO   BE   TRUE   AND   CORRECT   UNLESS
CONTESTED UNDER OATH BY ANY MEMBER OF THE BARGAINING UNIT DURING THE
VALIDATION    CONFERENCE.    FOR    THIS    PURPOSE,    THE    EMPLOYER    OR    ANY
REPRESENTATIVE   OF   THE   EMPLOYER   SHALL   NOT   BE   DEEMED   A   PARTY-lN-
INTEREST BUT ONLY AS A BY-STANDER TO THE PROCESS OF CERTIFICATION.
IF  THE  REQUESTING  UNION  OR  LOCAL  FAILS  TO  COMPLETE  THE  REQUIREMENTS
FOR  SEBA  CERTIFICATION  DURING  THE  CONFERENCE,  THE  REQUEST  FOR  SEBA
CERTIFICATION  SHALL  BE  REFERRED  TO  THE  APPROPRIATE  MED-ARBITER  FOR
THE CONDUCT OF CERTIFICATION  ELECTIONS.  (new)
ART.  273.  ACTION  ON  THE  SUBIVIISSION.  IF  THE  REGIONAL  DIRECTOR  FINDS  THE
REQUIREMENTS   COMPLETE,   |±±E¥  SHALL   ISSUE   DURING   THE   CONFERENCE  A
CERTIFICATION   AS   SOLE   AND   EXCLUSIVE   BARGAINING   AGENT   ENJOYING   THE
RIGHTS  AND   PRIVILEGES   OF  AN   EXCLUSIVE   BARGAINING   AGENT   0F  ALL   THE
EMPLOYEES IN THE COVERED BARGAINING UNIT.
THE REGIONAL DIRECTOR SHALL CAUSE THE POSTING OF THE SEBA CERTIFICATloN
FOR   FIFTEEN   (15)   DAYS   IN  AT  LEAST  TWO  (2)   CONSPICUOUS   PLACES   IN  THE
ESTABLISHMENT OR COVERED BARGAINING UNIT.  (new)
ART. 274. EFFECT 0F CERTIFICATloN. UPON THE ISSUANCE OF THE CERTIFICATION
AS  SOLE  AND  EXCLUSIVE  BARGAINING  AGENT,  THE  CERTIFIED  UNION  OR  LOCAL
SHALL  ENJOY  ALL  THE  RIGHTS  AND  PRIVILEGES  OF  AN  EXCLUSIVE  BARGAINING
AGENT OF ALL THE EMPLOYEES IN THE COVERED BARGAINING UNIT.
THE  CERTIFICATION  SHALL  BAR  THE  FILING  OF  A  PETITION  FOR  CERTIFICATION
ELECTION  BY ANY  LABOR  ORGANIZATION  FOR A  PERIOD  OF  ONE  (1)  YEAR  FROM
THE  DATE OF  ITS  ISSUANCE.   UPON  EXPIRATION OF THIS ONE-YEAR  PERIOD, ANY
LEGITIMATE   LABOR  ORGANIZATION   MAY   FILE   A   PETITION   FOR   CERTIFICATION
ELECTION   IN   THE   SAME   BARGAINING   UNIT   REPRESENTED   BY   THE   CERTIFIED
LABOR     ORGANIZATION,     UNLESS     A     COLLECTIVE     BARGAINING     AGREEMENT
BETWEEN   THE   EMPLOYER   AND   THE   CERTIFIED   LABOR   ORGANIZATION   WAS
EXECUTED AND VALIDLY REGISTERED WITH THE REGIONAL OFFICE.  (new)
ART.  275.  REQUEST  FOR  CERTIFICATION  IN  AN  UNORGANIZED  ESTABLISHMENT
WITH  MORE THAN  ONE  (1)  LEGITIMATE  LABOR ORGANIZATION.  IF  THE  REGIONAL
DIRECTOR   FINDS   THE   ESTABLISHMENT   UNORGANIZED   WITH   MORE   THAN   ONE
LEGITIMATE   LABOR   ORGANIZATloN,   THEY   SHALL   REFER   THE   SAME   T0   THE
APPROPRIATE MED-ARBITER FOR THE CONDUCT OF CERTIFICATION ELECTION.
THE   CERTIFICATION   ELECTloN   SHALL   BE   CONDUCTED   IN  ACCORDANCE   WITH
ARTICLE 264. (new)


ART.  276.  REQUEST  FOR  CERTIFICATloN  IN  ORGANIZED  ESTABLISHMENT.  IF THE
REGIONAL DIRECTOR FINDS THE ESTABLISHMENT ORGANIZED, THEY SHALL REFER
THE    SAME    TO   THE    MEDIATOR-ARBITER    FOR   THE    DETERMINATION    OF   THE
PROPRIETY  OF  CONDUCTING  A  CERTIFICATION  ELECTION  IN  ACCORDANCE  VVITH
ARTICLE 263.  (new)
Title VIll
A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
ART.  277.  Grievance  Machinery  and  Voluntary  Arbitration.  The  parties  to  a  Collective
Bargaining Agreement shall include therein provisions that will ensure the mutual observance
of its terms and conditions. They shall establish a machinery for the adjustment and resolution
of grievances arising from the interpretation or implementation of their Collective Bargaining
Agreement and those arising from the  interpretation  or enforcement of company  personnel
policies.
AIl  grievances  submitted to the  grievance  machinery which  are  not settled within  seven  (7)
calendar  days  from  the  date  of its  submission  shall  automatically  be  referred  to  voluntary
arbitration prescribed in the Collective Bargaining Agreement.
For this  purpose,  parties to a Collective Bargaining Agreement shall  name and designate in
advance a Voluntary Arbitrator or panel of Voluntary Arbitrators,  or include in the agreement
a  procedure for the  selection  of such Voluntary Arbitrator or panel  of Voluntary Arbitrators,
preferably from the  listing  of qualified Voluntary Arbitrators duly accredited  by the  Board.  In
case the perties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board
shall   designate   the  Voluntary  Arbitrator  or   panel   of  Voluntary  Arbitrators,   as   may   be
necessary,  pursuant to  the  selection  procedure  agreed  upon  in  the  Collective  Bargaining
Agreement,  which  shall  act with  the  same  force  and  effect  as  if the  Arbitrator or  panel  of
Arbitrators have been selected by the parties as described above. (273)
Art. 278. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. The
Voluntary  Arbitrator  or  panel   of  Voluntary  Arbitrators  shall   have   original   and   exclusive
jurisdiction  to  hear  and  decide  all  unresolved  grievances  arising  from  the  interpretation  or
implementation   of   the   Collective   Bargaining   Agreement   and   those   arising   from   the
interpretation  or enforcement  of company  personnel  pelicies  referred to  in  the  immediately
preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those
which are gross in character, shall no longer be treated as unfair labor practice and shall be
resolved  as  grievances  under the  Collective  Bargaining  Agreement.  For  purposes  of this
article,   gross  violations   of  Collective   Bargaining  Agreement  shall   mean   flagrant  and/or
malicious refusal to comply with the economic provisions of such agreement.
The Commission CLR,  its  Regional Offices and the Regional  Directors of the Department of
Labor and Employment DOLE shall not entertain disputes, grievances or matters under the
exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators
and  shall  immediately dispose  and  refer the same to the Grievance Machinery or Voluntary
Arbitration provided in the Collective Bargaining Agreement. (274a)
Art.  279.  Jurisdiction  over  Other  Labor  Disputes.  The  Voluntary  Arbitrator  or  panel  of
Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all other labor
disputes including unfair labor practices and bargaining deadlocks. (275)
Art.  280.  Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall  have
the power to hold hearings, receive evidence and take whatever action is necessary to resolve
the  issue or issues  subject of the dispute,  including  efforts to effect a voluntary settlement
between parties.


All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance
of any third party or the exclusion of any witness from the proceedings shall be determined by
the Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be adjourned for cause
or upon agreement by the parties.
FAILURE TO APPEAR IN THE VOLUNTARY ARBITRATION  DESPITE  NOTICE SHALL BE
DEEMED A WAIVER OF THE RIGHT TO BE HEARD. "E UNION MAY FILE AN EX PARTE
MOTION TO SUBMIT THE ISSUE FOR EARLY RESOLUTION.
Unless the parties agree otherwise, it shall be mandatory for the Voluntary Arbitrator or panel
of Voluntary Arbitrators to render an award or decision within twenty (20) calendar days from
the date of submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall contain
the facts and the law on which it is based. It shall be final and executory after ten (10) calendar
days from receipt of the copy of the award or decision by the parties. A PARTY AGGRIEVED
BY THE RULING MAY FILE A MOTION FOR RECONSIDERATION VVITHIN TEN (10) DAYS
FROM     NOTICE.     ONLY     AFTER     THE     RESOLUTION     OF     THE     MOTION     FOR
RECONSIDERATION   MAY   THE  AGGRIEVED   PARTY  APPEAL   TO   THE   COURT   OF
APPEALS  BY  FILING  A  PETITloN  FOR  REVIEW  UNDER  RULE  43  0F  THE  RULES  OF
COURT VVITHIN FIFTEEN  (15) DAYS FROM NOTICE.
Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators
or the Labor Arbiter JUDGE OF THE CLR in the region where the movant resides, in case of
the absence or incapacfty of the Voluntary Arbitrator or panel of Voluntary Arbitrators, for any
reason,  may issue a writ of execution  requiring either the sheriff of the Commi88ion CLR or
regular  courts  or  any  public  official  whom  the  parties  may  designate  in  the  submission
agreement to exeoute the final decision, order or award. (276a)
Art. 281. Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. The parties to a
Collective Bargaining Agreement shall provide therein a propertionate sharing scheme on the
cost  of  voluntary  arbitration  including  the  Voluntary  Arbitrator's  fee.  The  fixing  of  fee  of
Voluntary  Arbitrators,  or  panel  of Voluntary  Arbitrators,  whether  shouldered  wholly  by  the
parties  or subsidized  by the  Special  Voluntary Arbitration  Fund,  shall take  into  account the
following factors:
(a)     Nature of the case;
(b)     Time consumed in hearing the case;
(c)     Professional standing of the voluntary Arbitrator;
(d)     Capacfty to pay of the parties; and
(e)     Fees provided for in the Revised Rules of court.  (277)
Title IX
STRIKES AND LOCKOUTS
Chapter I
STRIKES AND LOCKOUTS
Art. 282. Strikes, Picketing, and Lockouts.
(a)      lt  is  the  poliey  of  the  State  to  encourage  free  trade  unionism  and  free  collective
bargaining.
(b)      Workers shall have the right to engage in concerted activities for purposes of collective
bargaining  or  for  their  mutual  benefit  and  protection.   The  right  of  legitimate  labor


organizations  to  strike  and  picket  and  of  employers  to  lockout,  consistent  with  the
national  interest,  shall  continue  to  be  recognized  and  respected.  However,  no  labor
union  may  strike  and  no  employer may  declare  a  lockout  on  grounds  involving  inter-
union and intra-union disputes.
(c)      ln cases of bargaining deadlocks, the duly certified or recognized bargaining agent may
file a notice Of strike or the employer may file a notice of lockout with the r,A,inistr,' DOLE
at  least THIRTY  (30)  days  before the  intended  date thereof.  In  cases  of unfair  labor
practice, the period of notice shall be FIFTEEN  (15) days and in the absence of a duly
certified or recognieed bargaining agent, the notice of strike may be led by any legitimate
labor  organization   in   behalf  of  its   members.   However,   in  case  of  dismissal  from
employment of union officers duly elected in accordance with the union constitution and
by-laws,  which  may  constitute  union  busting  where  the  existence  of  the  union   is
threatened,  the 45 FIFTEENrday cooling-off period  shall  not apply and the  union  may
take action immediately.
(d)      The notice must be in accordance with such implementing rules and regulations as the
Minister of Labor and Employment SOLE may promulgate.
(e)      During the coolingroff period, it shall be the duty of the M+nistry DOLE to exert all efforts
at mediation and conciliation to effect a voluntary settlement. Should the dispute remain
unsettled until the lapse of the requisite number of days from the mandatory filing of the
notice, the labor union may strike or the employer may declare a lockout.
(f)       A  decision  to  declare  a  strike  must  be  approved  by  a  majority  of  the  total  union
membership in the bargaining unit concerned,  obtained by secret ballot in meetings or
referenda called for that purpose. A decision to declare a lockout must be approved by
a majority of the board of directors of the corporation or association or Of the partners in
a partnership, obtained by seoret ballot in a meeting called for that purpose. The decision
shall  be valid for the duration of the dispute based on substantially the same grounds
considered when the strike or lockout vote was taken.  The r,A.inistr,J   DOLE  may,  at its
own  initiative or upon the  request of any  affected  party,  supervise the conduct of the
secret balloting. In every case, the union orthe employer shall furnish the ±±if:is±Fj±  DOLE
the  results  of the voting at leaet seven days ANY TIME  before the  intended  strike or
lockout, subject to the coolingroff period herein provided.
(g)      When,  in his THEIR opinion,  there exists  a  labor dispute causing  or likely to  cause  a
strike or lockout in an  industry indispensable to the national  interest,  the Secretar,' cf
Labor and Employment SOLE may assume jurisdiction over the dispute and decide ng or
certify the same to the ee,rTtrTtissicn  CLR for compulsory arbitration.  Such  assumption
or certiTication shall have the effect of automatically enjoining the intended or impending
strike or lockout as specified in the assumption or certification order.  If one has already
taken place at the time of assumption or certification, all striking or locked out employees
shall immediately return to work and the employer shall immediately resume operations
and readmit all workers under the same terms and conditions prevailing before the strike
or lockout. The Secretary of Labor and Employment SOLE or the Ccm.rr,.i_seicn CLP in.ey
seek  the  assistance  of  law  enforcement  agencies  to  ensure  compliance  with  this
provision as well as with such orders as THEY may issue to enforce the same.
FOR  THE  GUIDANCE  OF  THE  VVORKERS  AND  EMPLOYERS  IN  THE  FILING  OF
PETITION       FOR      ASSUMPTION      OF      JURISDICTION,       THE       FOLLOVVING
INDUSTRIES/SERVICES        ARE        HEREBY        RECOGNIZED       AS        DEEMED
INDISPENSABLE TO "E NATIONAL INTEREST:
(1)      HOSPITAL SECTOR;
(2)      ELECTRIC POWER INDUSTRY;


(3)      WATER     SuPPLY     SERVICES,     EXCLUDING     SMALL    WATER     SUPPLY
SERVICES SUCH AS BOTTLING AND REFILLING STATIONS;
(4)      AIRTRAFFIC CONTROL; AND
(5)      SUCH OTHER INDUSTRIES AS MAY BE RECOMMENDED BYTHE NATIONAL
TRIPARTITE  INDUSTRIAL PEACE COUNCIL (NTIPC).
In  line with the  national  concern for and  the  highest  respect  accorded to the  right of
patients to life and  hearth,  strikes and lockouts in hospitals,  clinics and similar medical
institutions shall, to every extent pessible,  be avoided,  and  all serious efforts,  not only
by  labor  and  management  but  government  as  well,   be  exhausted  to  substantially
minimiee,  if  not  prevent,  their  adverse  effects  on  such  life  and  health,  through  the
exercise, however legitimate, by labor of its right to strike and by management to lockout.
In  labor disputes adversely affecting the continued  operation of such  hospitals,  clinics
or medical institutions,  it shall be the duty of the striking  union or lockingrout employer
to  provide  and  maintain  an  effective  skeletal  workforce  of  medical  and  other  hearth
personnel,  whose  movement and  services  shall  be  unhampered  and  unrestricted,  as
are necessary to insure the proper and adequate protection of the life and hearth of its
patients,  most especially emergency cases, for the duration of the strike or lockout.  In
such cases, therefore, the Seoretary of Labor and Employment SOLE may immediately
assume, within twenty-four (24) hours from knowledge of the occurrence of such a strike
or lockout, jurisdiction over the same or certify it to the Commission CLR for compulsory
arbitration.  For this purpose, the contending parties are strictly enjoined to comply with
such orders, prohibitions and/or injunctions as are issued by the Sooretary of Labor and
Employment  SOLE.   or  the  Commission  CLR,   under  pain  of  immediate  disciplinary
action, including dismissal or loss of employment status or payment by the lockingout
employer of backwages, damages and other affirmative relief, even criminal prosecution
against either or both of them.
The foregoing notwithstanding, the President of the  Philippines shall  not be precluded
from  determining  the  industries  that,  in  his  THEIR  opinion,  are  indispensable  to  the
national  interest,  and from  intervening  at any time  and  assuming jurisdiction  over any
such labor dispute in order to settle or terminate the same.
(h)      Before  or at  any  stage of the  compulsory  arbitration  process,  the  parties  may  opt to
submit their dispute to voluntary arbitration.
(i)       The secretary of Labor and Employment SOLE, the commi8eion  CLR orthe voluntary
arbitrator or panel of voluntary arbitrators shall decide or resolve the dispute within thirty
(30) calendar days from the date of the assumption of jurisdiction or the certification or
submission  of the  dispute,  as  the  case  may  be.  The  decision  of the  President,  the
Seoretary  of  Labor  and  Employment  SOLE,  the  Commission    CLR  or  the  voluntary
arbitrator shall be final and executory ten (10) calendar days after receipt thereof by the
parties.  (278a)
Art. 283. Prohibited Activities.
(a)      No labor onganieation or employer shall  declare a strike or lockout without first having
bargained collectively in accordance with Thle ]£!± of this Book or without first having filed
the  notice  required  in the  preceding Article  or without the necessary strike or lockout
vote first having been obtained and reported to the P,A,inistr,iBOARD.
No strike or lockout shall be declared after assumption of jurisdiction by the President
or the ,A,1inister SOLE or after certification or submission Of the dispute to compulsory or
voluntary arbitration or during the pendency of cases involving the same grounds for the
strike or lockout.


Any WORKERS whose employment bas HAVE been terminated as a consequence of
any unlawful lockout shall be entitled to reinstatement with full backwages. Any UNION
OFFICERS who knowingly participates in an illegal strike and any WORKERS or UNION
OFFICERS who knowingly participates in the commission of illegal acts during a strike
may  be  declared  to  have  lost  his  THEIR  employment  status:  Provr.bed,  That  mere
participation of a WORKERS  in a Jawiul strike shall not constitute sufficient ground for
termination  of his THEIR  employment,  even  if a  replacement  had  been  hired  by the
employer during such strike.  IN ALL CASES, THE TERMINATloN OF EMPLOYMENT
SHALL CONFORM TO SUBSTANTIVE AND PROCEDURAL REQUIREMENTS.
(b)      No person shall obstruct,  impede,  or interfere with by force, violence,  coercion, threats
or  intimidation,  any  peacefLj!  picketing  OR  STRIKE  by  employees  during  any  labor
controversy or in the exercise of the right to self-organization or collective bargaining, or
shall aid or abet such obstruction or interference.
(c)      No employer shall use oremploy any strike-breaker,  nor shall any person be employed
as a strike-breaker.
(d)      NO  PUBLIC  OFFICIAL OR  EMPLOYEE,  INCLUDING  OFFICERS AND  PERSONNEL
OF  THE ARMED  FORCES  OF  THE  PHILIPPINES  OR THE  PHILIPPINE  NATIONAL
POLICE,    OR   ARMED    PERSON    SHALL    INTERFERE   WITH    THE   WORKERS'
EXERCISE OF THE RIGHT TO PEACEFUL CONCERTED ACTION,  INCLUDING THE
RIGHT TO STRIKE.  No public official or employee,  including  officers and personnel  of
the ALowArmed Forces of the Philippines or the !ntegreted PHILIPPINE National Police,
or armed  person,  shall  bring  in,  introduce or escort in any manner, af}y INDIVIDUALS
who seeke to replace strikers in entering or leaving the premises of a strike area, or work
in  place of the strikers. The police force shall keep out of the picket lines unless actual
violence  or  other  criminal  acts  occur therein:  Provi.ded,  That  nothing  herein  shall  be
interpreted to prevent any PUBLIC OFFICERS from taking any measure necessary to
maintain  peace  and  order,  protect  life and  property,  af}dfor enforce the law and  legal
order.
(e)
:roc¥sT:urct:Tg:gfe#n:E,[gcrkeest:ngcshcar,,ecogTe::t:rncym:tL:fv##:r=+c:omnjfr:n;L=jtaa*E
purposeB, or obstruct public thoroughfares.
(f)       NO PERSON SHALL TRANSPORT PERSONNEL,  RAWMATERIALS,  OR FINISHED
PRODUCTS INTO 0R OUT FROM THE STRIKE AREA DURING A STRIKE.  (279a)
Art.  284. Improved Offer Ba[loting.  In an effort to settle a strike,  the Department of Laxer
and Employment DOLE shall conduct a referendum by secret balloting on the impr_oyed offer
of the employer on or before the 30th day of the strike. Vvhen at least a majority of the union
members vote to accept the improved offer the striking workers shall immediately return to
work and the employer shall thereupen readmit them upon the signing of the agreement.
In  case of a lockout, the Department of Labor and  Employment DOLE shall  also conduct a
referendum by secret balloting on the reduced offer of the union on or before the 30th day of
the  lockout.  \/\/hen  at  least  a  majority  of the  board  of directors  or trustees  or the  partners
holding the controlling interest in the case of a partnership vote to accept the reduced offer,
the workers shall immediately return to work and the EMPLOYERS shall thereupen readmit
them upon the signing of the agreement. (280a)
Art. 285. Roquirom®nt for Arrest and D®t®nt]0n. E¥eept pn grounqc of nation?I eecurty and
public peace-or in  ca6e of commlcoion  of a crime7 No  union  members or union  organizers


SHALL  be  INVITED  FOR  QUESTIONING,  arrested  or detained  for union  activities without
CLEARANCE with the Seoretary of Labor SOLE.  (281 a)
Chapter 11
ASSISTANCE TO LABOR ORGANIZATIONS
Art. 286. Assistance by the
DOLE. The Department of Labor DOLE,
at  the  initiative  of  the  -Seoretary  of  Labor  SOLE,  shall  extend  special_  ass!stanpe  to  the
organization, for purposes of collective bargaining,  of the most underprivileged workers who,
for reasons  of occupation,  organizational  structure  or insufficient incomes,  are  not normally
covered by major labor organizations or federations.  (282a)
Art.  287. Assistance  by the Institute of Labor and  Manpower Studies.  The  Institute  of
Labor and  Manpower Studies shall  render technical  and  other forms  of assistance to labor
organizations and employer organieations in the field of labor education, especially pertaining
to-collective bargaining, arbitration, labor standards and the Labor this Code Of the Philippines
in general.  (283)
Chapter Ill
PENALTIES FOR VIOLATION
Art. 288. Penalties.
(a)      Any  person  violating  any  of the  provisions  of Article  264  283  of this  Code  shall  be
punished by a fine of not less than one thousand pesos (P1,000.00) nor more than ten
thousand  pesos  (P10,OcO.00)  and/or imprisonment for not less than three  (3)  months
nor more than three (3) years, or both such fine and imprisonment, at the discretion of
the court.  Prosecution under this provision shall preclude prosecution for the same act
under the Revised Penal Code, and vice versa.
(b)      Upon  the  recommendation  of the  Mi_ni6ter  pf  L:abor  an.d  ETP18yTent-  SOLE  and, ,{h.e
?,A,inister SECRETARY of National Defense, foreigners who violate the provisions of this
lltle  shall  be  subject to  immediate  and  summary  deportation  by thp  9omm.ie.eion  on
BUREAU  OF  [minigration  and  Deportation  and  shall  be  permgpently_ E!arT!q.FOP  re-
entering the country without the special  permission of the President of the Philippines.
(287a)
Title X
SPECIAL PROVISIONS
Art. 289. Study of Labor-Manag®mont Relations. The Secretary of Labor SOLE shall have
the power and it shall be his THEIR duty to inquire into:
(a)      the existing relations between employers and employees in the philippines;
(b)      the  growth  of  associations  of  employees  and  the  effect  of  such  associations  upen
employenemployee relations;
(c)      the  extent  and  results  of the  methods  of collective  bargaining  in  the  determination  of
terms and conditions of employment;
(d)      the  methods which  have  been tried  by employers  and  associations of employees for
maintaining mutually satisfactory relations;
(e)      desirable industrial practices which have been developed through collective bargaining
and other voluntary arrangements;
(f)       the possible ways of increasing the usefulness and efficiency of collective bargaining for
settling differences;
(g)      the possibilities for the adoption of practical and effective methods of labor-management
cooperation;
(h)      any other aspects of employeremployee relations concerning the promotion of harmony
and understanding between the parties; and


(i)       the relevance of labor laws and labor relations to national development. The secretary
cf  Labor SOLE  shall  also  inquire  into the  causes  of industrial  unrest and  take  all  the
necessary steps within his THEIR power as may be prescribed by law to alleviate the
same, and shall from time to time recommend the enactment of such remedial legislation
as  in  his THEIR judgment  may  be  desirable  for the  maintenance  and  promotion  of
industrial peace.  (288a)
Ai+ 290. VIsltorial Power. The  Secretary of Labor and Employment SOLE or his THEIR duly
authorieed representative is hereby empowered to inquire into financial activities of legitimate
labor organieations upon the filing of a complaint under oath and duly supperted by the written
consent of at least twenty  percent (20%)  of the total  membership of the  labor organization
concerned and to examine their books of accounts and other records to determine compliance
or  non-compliance  with  the  law  and  to  prosecute  any  violations  of the  law  and  the  union
constitution  and  bylaws:  Provi.ded,  That such  inquiry or examination  shall  not be conducted
during the si>cty (60) days freedom period nor within the thirty (30) days immediately preceding
the date of election of union officials.  (289a)
Art. 291. Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Councils.
(a)      Tripartism in labor relations is hereby declared a state pelicy. Towards this end, workers
and employers shall, as far as practicable, be represented in decision and policy-making
bodies of the government.
(b)      The   Seoretary   of   Labor   and   Employment   SOLE   or  his   THEIR   duly   authorized
representatives  may  from  time  to  time  call  a  national,  regional,  or  industrial  tripartite
conference of representatives of government, workers and employers, and other interest
groups as the case may be,  for the  consideration and  adoption  of voluntary codes of
principles designed to promote industrial peace based on social AND GENDER justice
or to align  labor movement relations with established  priorities in economic and social
development. In calling such conference, the Secretary of Labor and Employment SOLE
may consult with THE PHILIPPINE COMMISSION ON VVOMEN (PCVV) AND accredited
representatives of workers and employers.
(c)      A National Tripartite Industrial peace council (NTIPC) shall be established,  headed by
the  Seoretary of Labor and  Employment SOLE, with twenty (20)  representatives each
from  the  labor  and  employers'  sectors  to  be  designated  by  the  President  at  regular
intervals.  For this purpose, a sectoral nomination, selection, and recall process shall be
established   by   the   DOLE   in   consultation   with   the   sectors   observing   the   'most
representative' organization criteria of ILO Convention No.144.
Tripartite  Industrial  Peace Councils ITIPCs) at the regional  or industry  level  shall  also
be established with representatives from government, workers and employers to serve
as a continuing forum for tripartite advisement and consultation in aid of streamlining the
role of government, empewering workers' and employers' organizations, enhancing their
respective rights, attaining industrial peace, and improving productivfty.
The TIPCs shall have the following functions:
(1) .    Monitor the  full  implementation  and  compliance  of  concerned  sectors  with  the
provisions  of  all  tripartite  instruments,   including  intemational  conventions  and
declarations, codes of conduct, and social accords;
(2)      Participate in national, regional or industry-specific tripartite conferences which the
President or the Secretary of Labor and Employment SOLE may call from time to
time;
(3)      Review  existing  labor,   economic  and  social  policies  and  evaluate  local  and
intemational developments affecting them;
(4)      Formulate,  for  submission  to  the  President  or  to  Congress,  tripartite  views,
recommendations   and   proposals   on   labor,   economic,   and   social   concerns,


including   the   presentation   of  tripartite   positions   on   relevant   bills   pending   in
Congress;
Advise  the  Secretary  of  Labor  and  Employment  SOLE  in  the  formulation  or
implementation of policies and legislation affecting labor and employment;
Serve  as  a  communication   channel   and   a   mechanism  for  undertaking  joint
programs among government, workers, employers and their organizations toward
enhancing labor-management relations; and
(7)     Adopt  its   own   program   of  activities   and   rules,   consistent  with   development
objectives. All TIPCs shall be an integral part of the organizational structure of the
NTIPC` The operations of all TIPCs shall be funded from the regular budget of the
DOLE.  (290a)
Art.   292.   Government  Employees.   The   terms   and   conditions   of  employment   of  all
government    employees,    including    employees    of    govemmentrowned    and    controlled
corporations, shall be governed by the Civil Service Law, mules and regulations. Their salaries
shall  be  standardized  by  the  National  Assembly  CONGRESS  as  provided  for  in  the  New
Constitution. However, there shall be no reduction of existing wages, benefits and other terms
and conditions of employment being enjoyed by them at the time of the adoption of this Code.
(291 )
Art. 293. Miscellaneous Provisions.
(a)      All   unions   are   authorized   to   collect   reasonable   membership   fees,   union   dues,
assessments and fines and other contributions for labor education and research, mutual
death and hospitalization benefits, welfare fund, strike fund and credit and cooperative
undertakings.
(b)      Subject to the constitutional  right of workers to security of tenure and their right to  be
protected against dismissal except for a just and authorized cause and without prejudice
to  the  requirement  of notice  under Article  283 299  of this  Code,  the  employer  shall
furnish the workers whose employment is ARE sought to be terminated a written notices
containing  a  statement of the causes for termination  and  shall  afford the  latter ample
opportunfty to be heard and to defend himself THEMSELVES with the assistance of his
THEIR  representative  if be  THEY  so  desire  in  accordance  with  company  rules  and
regulations  promulgated  pursuant to  guidelines  set  by  the  Department  of  Labor and
Employment DOLE.  Any decision taken  by the employer shall  be without prejudice to
the right of the workers to contest the validfty or legalfty of his THEIR dismissal by filing
a complaint with the regional branch of the National Labor Relations Commi66ion CLR.
The burden of proving that the termination was for a valid or authorized cause shall rest
on the employer. The Seoretary of the Department of Labor and Employment SOLE may
suspend the effects of the termination pending resolution of the dispute in the event of
a  pn.rna  faci.e  finding   by  the  appropriate  official   of  the   Department  of  Labor  and
Employment    DOLE  before  whom  such  dispute  is  pending  that the  termination  may
cause a serious labor dispute or is in implementation of a mass layroff.
(c)      Any eEmployees, whether employed for a definite peried or not, shall, beginning on his
THEIR first day of service, be considered as an employees for purposes of membership
in any labor union.
(d)      No docket fee shall be assessed in labor standards disputes. In all otherdisputes, docket
fees may be assessed against the filing party, provided that in bargaining deadlock, such
fees shall be shared equally by the negotiating parties.
(e)      The  Minieter  of  Labor  and  Employment  SOLE  and  the  },A.ir.i3ter  SECRETARY  of the
Budget shall cause to be created or reclassified in accordance with law such positions
as may be necessary to carry out the objectives of this Code and cause the upgrading
of  the   salaries   of  the   personnel   involved   in   the   Labor  Relations   System   of  the
Department.   Funds  needed  for  this  purpose  shall  be  provided  out  of  the  Special
Activities Fund appropriated by Batas Pambansa 81g. 80 and from annual appropriations
thereafter.


(f)       A special voluntary Arbitration Fund is hereby established in the Board to subsidiee the
cost of voluntary arbitration in cases involving the interpretation and implementation of
the Collective Bargaining Agreement, including the Arbitrator's fees, and for such other
related   purposes  to   promote   and   develop   voluntary   arbitration.   The   Board   shall
administer the Special Voluntary Arbitration  Fund  in  accordance with the guidelines  it
may adopt upen the recommendation of the Council, which guidelines shall  be sutyect
to  the  approval  of the  Secretary  of  Labor  and  Employment  SOLE.  Continuing  funds
needed for this purpose SHALL BE in the initial yeariy amount of Fifteen million pe8o6
(P15,000,OcO.00)  AN  AMOUNT  VVHICH  SHALL  BE  INCREASED  DEPENDING  ON
THE  REQUIREMENTS  OF THE AGENCY AND shall  be  provided  in the 4ee9 annual
general appropriations acts.
The  amount  of  subsidy  in  appropriate  cases  shall  be  determined  by  the  Board  in
accordance with  established  guidelines  issued  by it  upon the  recommendation  of the
Council. The Fund shall also be utilized for the operation of the Council, the training and
education   of   Voluntary   Arbitrators,    and   the   promotion   and   development   of   a
comprehensive Voluntary Arbitration Program.
(g)      The  Mirtistr,'  DOLE  shall  help  promote  and  gradually  develop,  with  the  agreement  of
labor   organieations   and   employers,   labor-management   cooperation   programs   at
appropriate levels of the enterprise based on shared responsibilfty and mutual respect
in order to ensure industrial peace and improvement in productivity, working conditions
and the quality of working life.
(h)      ln  establishments  where  no  legitimate  labor  organieation  exists,  labor-management
committees  may  be formed  voluntarily  by workers  and  employers for the  purpose  of
promoting  industrial  peace.  The  Department  of  Labor  and  Employment  DOLE  shall
endeavor  to  enlighten  and  educate  the  workers  and  employers  on  their  rights  and
responsibilities through labor education with emphasis on the policy thrusts of this Cede.
To ensure speedy laborjustice, the periods provided in this Cede within which decisions
or resolutions of labor relations cases or matters should be rendered shall be mandatory.
For this purpose, a case or matter shall be deemed submitted for decision or resolution
upon  the  filing  of  the  last  pleading  or  memorandum   required  by  the  rules  of  the
Commi8eion CLR or by the Commi8oion CLR itself, or the Labor Arbiter JUDGE OF THE
CLR,  or the  Director of the  Bureau of Labor Relations or Med-Arbiter,  or the  Regional
Director.  Upon  expiration  of  the  corresponding  peried,  a  certification  stating  why  a
decision  or  resolution  has  not  been  rendered  within  the  said  peried  shall  be  issued
forthwith by the ChairTTten CHAIR of the Commission CLR, the Executive Labor Arbiter
JUDGE OF THE CLR,  or the Director of the Bureau of Labor Relations or Med-Arbiter,
or the  Regional  Director,  as the  case  may  be,  and  a  copy thereof served  upon  the
parties. Despite the expiration of the applicable mandatory period, the aforesaid officials
shall, without prejudice to any liabilfty which may have been inourred as a consequence
thereof, see to it that the case or matter shall be decided or resolved without any further
delay.  (292a)
Book Six
POSTIMPLOYMENT
Title I -Termination of Employment
Art.   294.   Coverage.   The   provisions   of  this   Tltle   shall   apply   to   all   establishments   or
undertakings, whether for profit or not. (293)
Art.  295.  Secui.ity  of  Tenure.  IheeEmployers  shall  not  terminate  the  services  of  an
employee,  VVHETHER  REGULAR  OR  NON-REGULAR,  except  for  a  just  cause  or  when
authorized by this Title. AfreEmployees who is ARE  unjustly dismissed from work shall  be
entitled to reinstatement without loss of seniority rights and other privileges and to his THEIR
full  backwages,  inclusive  of allowances,  and to his THEIR other benefits or their monetary


ei]uivalent computed from the time his THEIR compensation was withheld from bin THEM up
to the time of his THEIR actual reinstatement.   (294a)
Art.  296.  Regular and  Casual  Employment.  The  provisions  of written  agreement  to  the
contrary notwithstanding and regardless of the oral agreement of the parties, an employment
shall be deemed to be regular where the employees bas HAVE  been engaged to perform
activities  which  are  usually  necessary  or  desirable  in  the  usual  business  or  trade  of the
employer, except where the employment has been fixed for a specific project or undertaking
the completion or termination of which has been determined at the time of the engagement of
the employees or where the work or service to be performed  is seasonal in nature and the
employment is for the duration Of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph:
Prov/.ded, That afiy employees who has HAVE rendered at least one year of service, whether
such service is continuous or broken,  shall be considered a regular employees with respect
to the activfty in which  he i8 employed and his employment Shall continue while Ouch  activity
exists.   (295a)
Art.  297.  Probationary  Employment.  Probationary  employment  shall  not  exceed  six  (6)
months from the date the employee started working, unless it i6 covered by an apprenticeship
agreement Stipulating a longer period.  The services of aft employees who has HAVE  been
engaged on a probationary basis may be terminated for a just cause or when he fei!s THEY
FAIL to qualify as a regular employees in accordance with reasonable standards made known
by the employer to the employees  at the time of his THEIR engagement.  Af}eEmployees
who  is  ARE  allowed  to  work  after  the  probationary  period  shall  be  considered  a  regular
employees. (296a)
Art. 298. Termination by Employer. AneEmployers may terminate an employment for any
of the following causes:
(a)      Serious misconduct or willful disobedience by the employees of the lawful orders of his
THEIR employer or representative in connection with his THEIR work;
(b)      Gross and habitual neglect by the employees of his THEIR duties;
(c)      Fraud  or willful  breach  by  the  employees  of the  trust  reposed  in  bin THEM  by  the
employer or duly authorieed representative;
(d)      Commission of a crime or offense by the employees against the person of his THEIR
employer or any immediate member of big THEIR family or his THEIR duly authorized
representatives;
(e)      COMMISSION   OF   SEXUAL   VIOLENCE   AND/OR   OTHER   SEXUALLY-RELATED
OFFENSES,  REGARDLESS OF CONVICTloN; AND
(f)       Other causes analogous to the foregoing. (297a)
ART. 299. Closure of Establishment and Reduction of Personnel. IbeeEmployers may
also terminate the employment of any employee due to the installation of labor-saving devices,
redundancy,  retrenchment to  prevent losses or the  closing  or cessation  of operation of the
establishment  or  undertaking  unless  the  closing  is  for  the  purpose  of  circumventing  the
provisions of this Title,  by serving a witten  notice on the workers and the Ministry of Labor
and  Employment SOLE at least one (1)  month before the intended date thereof.  In case of
termination due to the installation Of labor-saving devices or redundancy, the workers affected
thereby shall be entitled to a separation pay equivalent to at least his THEIR one (1) month
pay or to at least one (1) month pay for every year of service, whichever is higher. In case of
retrenchment  to  prevent  losses  and  in  cases  of  closures  or  cessation  of  operations  of
establishment or undertaking  not due to  serious  business  losses  or financial  reverses,  the
separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay
for every year Of service,  whichever is  higher.  A fraction  of at  least six  (6)  months  shall  be
considered one (1) whole year.  (298a)


Art. 300. Disease as Ground for Termination. AneEmployers may terminate the services
of an employees who  has  been  HAVE  BEEN found to  be suffering from  any disease  and
whose  continued  employment is ARE  prohibited  by  law  or is ARE  prejudicial  to his THEIR
health as well as to the health of his THEIR co-employees: PROV/BED, THAT EMPLOYERS
SHALL   PRESENT  A   CERTIFICATION   ISSUED   BY  A  COMPETENT   PUBLIC   HEALTH
AUTHORITY ATTESTING THAT THE ILLNESS OR DISEASE CANNOT BE CURED WITHIN
SIX (6) MONTHS EVEN WITH PROPER MEDICAL TREATMENT: Provf.ded, FURTHER, That
beLe THEY ARE paid separation pay equivalent to at least one (1 ) month salary or to one-half
(1/2) month salary for every year of service, whichever is greater, a fraction of at least six (6)
months being considered as one (1) whole year.  (299a)
Art. 301. Termination by Employee.
(a)     beEmployees may terminate without just cause the employee-employer relationship
by serving  a written  notice on the employers  at least one  (1)  month  in  advance.  Ibe
Employers upon whom no such notice was served may hold the employees liable for
damages.
(b)      froEmployees may put an end to the relationship without serving  any notice on the
employers for any of the following just causes:
(1)      Serious  insult by the  employers  or his THEIR  representative  on the  honor and
(4)
(5)
person of the employees;
Inhuman and unbearable treatment accorded the employees by the employers or
his THEIR representative;
Commission of a crime or offense by the employers or his THEIR representative
against the  persons of the employees or any of the  immediate members of his
THEIR family;
COMMISSION OF SEXUAL VIOLENCE AND/OR OTHER SEXUALLY-RELATED
OFFENSES,  REGARDLESS OF CONVICTION; AND
Other causes analogous to any of the foregoing. (300a)
Art.  302. When  Employment Not Deemed Terminated. The bona #de suspension  of the
operation  of  a  business  or  undertaking  for  a  period  not  exceeding  six  (6)  months,  or the
fulfillment by the employees of a military or civic dutylES shall not terminate employment.  In
all such cases, the employers shall reinstate the employees to his THEIR former positions
without loss of seniority rights if he indicates his T+1EY INDICATE THEIR desire to_ resupe_Pis
THEIR work  not  later than  one  (1)  month  from  the  resumption  of operations  of his THEIR
employer or from his THEIR relief from the military or civic dufylES.  (301 a)
Title 11 - Retirement from the Service
Art.  303.  Retirement. AnyeEmployees  may  be  retired  upen  reaching the  retirement age
established in the collective bargaining agreement or other applicable employment contract.
In case of retirement, the employees shall be entitled to receive such retirement benefits as
he THEY may have earned under existing laws and any collective bargaining agreement and
other   agreements:   Provi.ded,   however,   That   retirement   benefits   under   any   collective
bargaining and other agreements shall not be less than those provided therein.
In  the  absence  of  a  retirement  plan  or  agreement  providing  for  retirement  benefits  of
employees in the establishment, anemployees upon reaching the age of sixty (60) years or
more, but not beyond sixty-five (65) years which is hereby declared the compulsory retirement
age, who has HAVE served at least five (5) years in the said establishment,  may retire and
shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every
year of service, a fraction of at least six (6) months being considered as one whole year.


Unless the parties provide for broader inclusions,  the term one-half (1/2) month salary shall
mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent
of not more than five (5) days of service incentive leaves.
Ap-t+Underground mining employees upon  reaching the age of fifty (50) years or more,  but
not  beyond  sixty  (60)  years  which  is  hereby  declared  the  compulsory  retirement  age  for
underground mine workers, who ba§ HAVE served at least five (5) years as underground mine
workers,  may  retire  and  shall  be  entitled  to  all  the  retirement  benefits  provided  for  in  this
Article.
=; ; :i;;rv`}'=3Ei or worTtore are exempted Tram the Coverage of thic Provision
Violationofthisprovisionisherebydeclaredunlawfulandsubjecttothepenalprovisionsunder
Article 288  312 of this Code.
Nothing  in  this Article  shall  deprive any employees  of benefits to which be THEY  may  be
entitled under existing laws or company policies or practices.  (302a)
BOOK SEVEN
GENDER EQUALITY PROVISIONS
ART. 304. ANNUAL EVALUATION OF PAYAND BENEFITS STRUCTURE.  THERE SHALL
BE  AN  ANNUAL  ASSESSMENT  OF  THE  COMPANY'S  EXISTING  PAY  AND  BENEFIT
STRUCTURES  AND  JOB  CIASSIFICATIONS  WITH  THE  GOAL  OF  ELIMINATING  ANY
DISCREPANCIES  IN  SALARIES AND  BENEFITS ATTRIBUTABLE  SOLELY T0 GENDER
BIAS   OR   DISCRIMINATION.      TOWARDS   THIS   END,   GENDER-FAIR   CRITERIA   OR
STANDARDS     SHALL     BE     ESTABLISHED     VVHICH     ALLOW     FOR     REASONABLE
DISCREPANCIES  IN  PAY  AND  BENEFITS,  SUCH  AS  DIFFERENCE  IN  POSITION  OR
TITLE, JOB DESCRIPTION, JOB RESPONSIBILITY, OR OTHER GENDER~FAIR CRITERIA
OR    STANDARDS.        THE    ANNUAL    ASSESSMENT    SHALL    BE    UNDERTAKEN    IN
CONSULTATION VVITH THE BARGAINING REPRESENTATIVE OR,  lN THE ABSENCE OF
A         CERTIFIED         BARGAINING         REPRESENTATIVE,          THEIR         DESIGNATED
REPRESENTATIVE.       IN   PURSUIT   OF   THIS   OBJECTIVE,   THE   EMPLOYER   SHALL
FURNISH THE UNION OR DULY AUTHORIZED EMPLOYEE REPRESENTATIVE A COPY
OF THE PAY AND BENEFIT STRUCTURES AND JOB CLASSIFICATIONS.  (new)
ART.  305.  TAX  INCENTIVES  OR  BONUS  SCHEMES.  THE  DOLE,  lN  CONSULTATION
WITH  THE  DEPARTMENT  OF  FINANCE,  THE  BUREAU  OF  INTERNAL  REVENUE  AND
THE PCW, SHALL DEVELOP AND PRESCRIBE TAX INCENTIVES OR BONUS SCHEMES
FOR uNioNs AND EMPLoyERs,  pROvlDED THAT AT LEAST FORrv PERCENT (40%)
OF  UNION  OR  COMPANY  OFFICERS  ARE  WOMEN.     FOR  THIS  PURPOSE,   UNION
OFFICERS  ARE  THOSE  WHO  ARE  EITHER  ELECTED  OR  APPOINTED,   INCLUDING
SHOP  STEWARDS.   FOR  COMPANY  OFFICERS,  OFFICERS  ARE  THOSE  VVHO  ARE
EITHER   ELECTED   OR  APPOINTED  AND  AT   LEAST   OCCUPYING   A   MANAGERIAL
POS,TloN.
A SiMiLAR Tex  INCENTivE  oR  BONus  ScHEME  SHALL ALSo  BE  DEVELoPED AND
PRESCRIBED  FOR  A  GENDER-FAIR  COMPOSITION  OF  COMPANY  OFFICERS  AND
EMPLOYEES AND TOTAL UNION MEMBERSHIP.  (new)
ART. 306. CREATION OF A GENDER FOCAL POINT COMMITTEE IN THE WORKPLACE;
DEDUCTIBILITY  OF  TRAINING  COSTS.  ALL  ESTABLISHMENTS,  BOTH  PUBLIC  AND


Title 11
Prescription of Offenses and Claims
Art. 314. Offenses. Offenses penalized under this Code and the rules and regulations issuecd
pursuant thereto shall prescribe in three (3) SIX (6) years.
AIl unfair labor practice arising from  Book V shall be filed with the appropriate agency within
cr:e  (1) `,'eaTr THREE  (3) YEARS from  accrual  Of such  unfair labor practice;  otherwise,  they
shall be forever barred. (305a)
Art. 315. ILLEGAL DISMISSAL AND Money Claims. AII CASES 0F ILLEGAI. DISMISSAL
AND  money claims arising from employer employee  relations accruing during the effectivity
of this Code shall be filed within three (3) FOUR (4) years from the time the cause of action
accrued; otherwise they shall be forever barred,
A    ,I         _   _       _       _                                 ,          ,
Code; otherwise, they Shall be forever barred.
Workmen'e compen6ation olaim8 accruing pri
period from November 1,  1974  up to Decom[
law anc] rules at the time their cau8e8 of action accrued. (306a)
Ark 316. Institution of Money Claims. Money claims specified jn the immediately preceding
Article shall be filed before the appropriate entfty independently of the criminal action that may
be instituted in the proper courts.
Pending the final determination of the merits of money claims filed with the appropriate entfty,
no civil action arising from the same cause of action shall be filed with any court. This provision
shall not apply to employees compensation cases which shall be processecl and determined
strictly in accordance with the pertinent provisions of this Code.  (307)
Title Ill
Transitory and Final Provisions
Art. 317. Application of Law Enacted Prior to this Code. AII actions or claims accruing prior
to the eifectivfty of this REVISED Code shall be determined in accordance with the laws  in
force at the time of their accrual. (308)
Art. 318,  Abollt[on Of the Court of lnduetrlal R®lat]one and the National Labor Rolatlons
CommlSslon. The Court of Industrial Rolation8 and the EXISTING National Labor Relations
Commission  e6tabli6hed  under  Precidentjal  D®croe  No.  21   are  IS  hereby  abolj8hed.    AIl
unexpended funds,  properties,  equipment and  records  of the Court of lnductrial   Relations
NLRC,  and such of its personnel as may be necessary, AS  DETERMINED BY THE NLRC,
are hereby transferred to the Ccmmie3icr: CLR and to its regional branches, AIl unexpended
funds,  properties  and  equipment  of the  National  Labor  Relationo  Commieeion  ectabliehod
¥nder Presider,tie! Decree Nc. 21  ere t,r'er:sferred tc the BL[rea¥ cf Leber P`e!aticr,s. Personnel
not absorbed  by or transferred to the  Commission  CLR shall  enjoy  benefits  granted  under
existing laws.  (313a)
Art. 319. Personnel Whose Services are Terminated. Personnel of agencies or any of their
subordinate units whose services are terminated as a result of the implementation of this Code
shall enjoy the rights and protection provided in Sections 6 and 6 Of Republic Act numbered


apt-four hundred.and t_hirty..qv.e anq_ ouch. otheFUNDER pertinent laws, rules and regulations.
In  any  case,  no  lay-off shall  be  effected  until  funds to  cover the  gratuity and/or retirement
benefits of those laid off are duly certified as available.  (315a)
Art.  320.  Separability  Provisions.  If any provision  or part of this  Code,  or the application
thereof to  any  person  or  circumstance,  is  held  invalid,  the  remainder of this  Code,  or the
application of such provision or part to other persons or circumstances, shall not be affected
thereby.  (316)
Art. 321. Repealing clause. All labor laws not adopted as part of this Code either directly or
by reference are hereby repealed. All provisions of existing laws,  orders, decrees, rules and
regulations inconsistent herewith are likewise repealed.
Approvd,