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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
 
13th Congress 
First Regular Session 
 
HOUSE BILL NO.  1505    
 
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Introduced by Rep. Roseller L. Barinaga 
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AN ACT 
ESTABLISHING 
THE 
NEW 
LABOR 
CODE 
OF 
THE 
PHILIPPINES AND FOR OTHER PURPOSES 
 
 
GENERAL PROVISIONS 
  
ARTICLE 1.  Short Title. – This Act shall be known as the “New Labor Code of 
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the Philippines.”                                              
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ART. 2. Declaration of Policy. - The State shall afford full protection to labor, 
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local and overseas, organized and unorganized.  It shall promote full employment and 
4 
equality of employment opportunities for all. It shall guarantee the rights of all workers to  
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self-organization,   collective    bargaining    and    negotiations,   and   peaceful concerted 
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activities,   including  the  right  to  strike in accordance with law.  They shall be entitled 
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to security of tenure, humane conditions of work, and a living wage. The State shall 
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regulate the  relations   between  workers  and  employers,  recognizing  the right of labor  
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NOTE:  This bill already contains the agreements made during the deliberation of 
various proposals on the Labor Code by the Committee on Labor and Employment 
during the 12th Congress. The said portions are indicated as follows: 
 
*     Approved in the deliberation of bills proposing a “New Labor Code.”  
**  Approved in the  deliberation of bills seeking  to only amend  certain  portions of 
the existing Labor Code (P.D. 442). 


 
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to its  just  share  in  the  fruits of production and right of enterprises to reasonable returns 
1 
on investments and to expansion and growth.  
2 
      
ART. 3. Construction in Favor of Labor. - All doubts in the implementation and 
3 
interpretation of the provisions of this Code, including its implementing rules and 
4 
regulations, shall be resolved in favor of labor.  
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ART. 4. Applicability. - All rights and benefits granted to workers under this 
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Code shall, except   as   may   otherwise   be   provided   herein,   apply   alike to all 
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workers, in the private sector. The terms and conditions of employment of all 
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government employees, including employees of government-owned and controlled 
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corporations with original charters shall be governed by the Civil Service Law, rules and 
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regulations.   
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BOOK ONE - PRE-EMPLOYMENT 
 
Title I - RECRUITMENT AND   PLACEMENT OF WORKERS 
 
Chapter I  
  GENERAL PROVISIONS 
 
 
ART.  5. Statement of Objectives. - It is the policy of the State to:  
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(a)   Promote and maintain a state of full employment through active industrial 
13 
policy, balanced agricultural development, unified human resources development and 
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enhanced employment facilitation assistance to job seekers; 
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(b)   Protect every citizen desiring to work locally or overseas by securing for him 
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the best possible terms and conditions of employment;  
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(c)   Facilitate a free choice of available employment by persons seeking work in 
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conformity with the national interest;  
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(d)  Facilitate and regulate the movement of workers in conformity with the 
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national interest;  
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(e)  Regulate the employment of aliens, including the establishment of a 
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registration and/or work permit system; 
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(f)    Strengthen the network of public employment offices and rationalize the 
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participation of the private sector in the recruitment and placement of workers, locally 
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and overseas, to serve national development objectives; 
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(g)    Insure careful selection of Filipino workers for overseas employment in 
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order to protect the good name of the Philippines abroad.   
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ART. 6. Definitions. - (a) "Workers" means any member of the labor force, 
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whether employed or unemployed.  
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(b) "Recruitment and placement" refers to any act of canvassing, enlisting, 
14 
contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, 
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contract services, promising or advertising for employment, locally or abroad, whether 
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for profit or not: Provided, That any person or entity which, in any manner, offers or 
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promises for a fee employment to two or more persons shall be deemed engaged in 
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recruitment and placement.  
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(c) "Private employment agency" means any person or entity engaged in the 
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recruitment and placement of workers for a fee which is charged, directly or indirectly, 
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from the workers or employers or both.  
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(d) “Plan” means National Employment Plan. 
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(e) “Human resources development” means the development of the capacity of 
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the workers through technical and skills development.   
2 
(f) “Active industrial policy” means the promotion of rapid industrial growth for 
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job creation purposes.   
4 
ART. 7. Employment Promotion. - The Secretary of Labor and Employment, in 
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coordination with the Local Government units, shall have the power and authority to:  
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(a)   Initiate, organize and maintain employment offices in addition to the existing 
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employment offices under the Department of Labor and Employment as the need arises;  
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(b) Organize and establish a nationwide job clearance and labor market 
9 
information system to inform applicants registering with a particular employment office 
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of job opportunities in other parts of the country as well as job opportunities abroad and 
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promote job and skills matching;  
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(c) Develop and organize a program that will facilitate occupational, industrial 
13 
and geographical mobility of labor and provide assistance in the relocation of workers 
14 
from one area to another;   
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(d) Require any person, establishment, organization or institution to submit such 
16 
employment information as may be prescribed by the Secretary of Labor and 
17 
Employment; and 
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(e) Formulate a National Employment Plan and recommend appropriate 
19 
employment policies, strategies and measures to maximize employment based on active 
20 
industrial policy, balanced agricultural development, unified human resource 
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development and enhanced employment facilitation assistance.   
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ART. 8.   Bureau of Local Employment. -The Bureau of Local Employment 
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shall be primarily responsible for assisting the Secretary of Labor and Employment in 
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developing and monitoring a comprehensive national employment plan and its 
1 
implementing programs.  
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ART. 9.  Private Recruitment. - Except as provided in Chapter II of this Title, no 
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person or entity, other than the public employment offices, shall engage in the 
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recruitment and placement of workers.  
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ART. 10. Philippine Overseas Employment Administration.  -  The Philippine 
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Overseas Employment Administration or POEA shall have the following powers and 
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functions: 
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1.  To regulate private sector participation in the recruitment and overseas 
9 
placement of workers by setting up a licensing and registration system; 
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2.  To formulate and implement, in coordination with appropriate entities 
11 
concerned, when necessary, a system for promoting and monitoring the overseas 
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employment of Filipino workers taking into consideration their welfare and the domestic 
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manpower requirements; 
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3.     To protect the rights of Filipino workers for overseas employment to fair and 
15 
equitable recruitment and employment practices and ensure their welfare; 
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4.    To exercise original and exclusive jurisdiction to hear and decide all claims 
17 
arising out of an employer-employee relationship or by virtue of any law or contract 
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involving Filipino workers for overseas employment including the disciplinary cases; 
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and all pre-employment cases which are administrative in character involving or arising 
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out of violation of requirement laws, rules and regulations, or violation of the conditions 
21 
for issuance of license or authority to recruit workers. All prohibited recruitment 
22 
activities and practices which are penal in character as enumerated and defined under and 
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by virtue of existing laws, shall be prosecuted in the regular courts in close coordination 
1 
with the appropriate departments and agencies concerned.  
2 
 
5.     To maintain a registry of skills for overseas placements;  
3 
 
6.   To recruit and place workers to service the requirement for trained and 
4 
competent Filipino workers by foreign governments and their instrumentalities and such 
5 
other employers as public interest may require consistent with Section 4 of Republic Act 
6 
No. 8042; Provided, That no Filipino worker shall be deployed to countries that have a 
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track record of violating the rights of migrant workers;  
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7.   To promote the development of skills and careful selection of Filipino 
9 
workers for overseas employment; 
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8.   To undertake overseas market development activities for placement of 
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Filipino workers;  
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9.    To secure the best terms and conditions of employment of Filipino contract 
13 
workers and ensure compliance therewith;  
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           10.     To promote and protect the well-being of Filipino workers overseas;  
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           11.     To   develop   and   implement   programs  for  the  effective  monitoring  of 
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returning contract workers, promoting their re-training and re-employment or their 
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smooth-re-integration into the mainstream of the national economy in coordination with 
18 
other government agencies;  
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            12.  To institute a system for ensuring fair and speedy disposition of cases 
20 
involving violation of recruitment rules and regulations as well as violation of terms and 
21 
conditions of overseas employment;  
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            13.   To establish a system for speedy and efficient enforcement of decisions laid 
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down through the exercise of its adjudicatory function;  
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            14.   To establish and maintain close relationship and enter into joint projects with 
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the Department of Foreign Affairs (DFA), Philippine Tourism Authority (PTA), Manila 
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International Airport Authority (MIAA), Department of Justice (DOJ), Department of 
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Budget and Management (DBM), and other relevant government entitles, in the pursuit 
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of its objectives. The administration shall also establish and maintain joint projects with 
5 
private organizations, domestic or foreign, in the furtherance of its objectives.  
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ART. 11. Ban on Direct-Hiring. - No employer may hire a Filipino worker for 
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overseas employment except through the boards and entities authorized by the Secretary 
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of Labor and Employment. Direct-hiring by members of the diplomatic corps, 
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international organizations and such other employers as may be allowed by the Secretary 
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of Labor is exempt from this provision.  
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ART. 12. National Seafarers Office. – A National Seafarers Office is hereby 
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created under the Philippine Overseas Employment Administration (POEA), which shall 
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have the following powers and functions: 
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1.  To develop an integrated maritime manpower development and placement 
15 
program for Filipino seafarer here and overseas;    
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2.  To develop, in coordination with other agencies involved in the maritime 
17 
industry, a one-stop shop for the licensing and deployment of Filipino seafarer.   
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ART. 13. Foreign Service Role and Participation. - To provide ample protection 
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to Filipino workers abroad, the labor attaches, the labor reporting officers duly designated 
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by the Secretary of Labor and Employment, and the Philippine diplomatic or consular 
21 
officials concerned shall, even without prior instruction or advice from the home office, 
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exercise the power and duty to:  
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(a) Provide all Filipino workers within their jurisdiction assistance on all matters 
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arising out of employment;  
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(b) Insure that Filipino workers are not exploited or discriminated against;  
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(c) Verify and certify as requisite to authentication that the terms and conditions 
4 
of employment in contracts involving Filipino workers are in accordance with the Labor 
5 
Code and rules and regulations of the POEA;  
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(d) Make continuing studies or researches and recommendations on the various 
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aspects of the employment market within their jurisdiction;  
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(e) Gather and analyze information on the employment situation and its probable 
9 
trends, and to make such information available; and  
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(f) Perform such other duties as may be required of them from time to time. 
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ART. 14.  Mandatory Remittance of Foreign Exchange Earnings.  - It shall be 
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mandatory for all Filipino workers abroad to remit a portion of their foreign exchange 
13 
earnings to their families, dependents and/or beneficiaries in the country in accordance 
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with rules and regulations prescribed by the Secretary of Labor and Employment.      
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ART. 15.  Agencies to Issue Rules and Collect Fees. - The agencies involved in 
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the recruitment and placement of workers shall issue appropriate rules and regulations to 
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carry out their functions. They shall have the power to impose and collect fees from 
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employers concerned, which shall be deposited to the respective accounts of said 
19 
agencies and be used by them exclusively to promote their objectives.   
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Title I - RECRUITMENT AND PLACEMENT OF WORKERS 
Chapter II 
REGULATION OF RECRUITMENT AND 
PLACEMENT ACTIVITIES 
 


 
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ART. 16. Private Sector Participation in the Recruitment and Placement of 
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Workers. - Pursuant to national development objectives and in order to harness and 
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maximize the use of private sector resources and initiative in the development and 
3 
implementation of a comprehensive employment program, the private employment sector 
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shall participate in the recruitment and placement of workers, locally and overseas, under 
5 
such guidelines, rules and regulations, as may be issued by the Secretary of Labor and 
6 
Employment. 
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ART. 17.  Travel Agencies Prohibited Recruiting. - Travel agencies and sales 
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agencies of airline companies are prohibited from engaging in the business of recruitment 
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and placement of workers for overseas employment whether for profit or not.  
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ART. 18. Citizenship Requirement. - Only Filipino citizens or corporations, 
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partnerships or entities at least seventy-five percent (75%) of the authorized and voting 
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capital stock of which is owned and controlled by Filipino citizens shall be permitted to 
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participate in the recruitment and placement of workers, locally or overseas.  
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ART. 19.  Capitalization and Licensing. - All applicants for authority to hire or 
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renewal of license to recruit are required to have such substantial capitalization and other 
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requirements as determined by the Secretary of Labor and Employment. No agency shall 
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be denied a license unless the said agency is unable to meet the required capitalization 
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and other conditions set by the Department of Labor and Employment (DOLE).   
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ART.  20.  Non-Transferability of License or Authority. - No license or authority 
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shall be used directly or indirectly by any person other than the one in whose favor it was 
21 
issued at any place other than that stated in the license or authority, nor may such license 
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or authority be transferred, conveyed or assigned to any other person or entity. Any 
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transfer of business address, appointment or designation of any agent or representative 
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including the establishment of additional offices anywhere shall be subject to the prior 
1 
approval of the DOLE.  
2 
ART. 21.  Registration Fees. - The Secretary of Labor and Employment shall 
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promulgate a schedule of fees for the registration of all applicants for license or authority.  
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ART. 22. Bonds. - All applicants for license or authority shall post such cash and 
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surety bonds as determined by the Secretary of Labor and Employment to guarantee 
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compliance with prescribed recruitment procedures, rules and regulations, and terms and 
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conditions of employment as may be appropriate.  
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ART. 23.  Fees to be Paid by Workers. - Any person applying with a private fee 
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charging employment agency for employment assistance shall not be charged any fee 
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until he has obtained employment through his efforts or has actually commenced 
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employment. Such fee shall be always covered with appropriate receipt clearly showing 
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the amount paid. The Secretary of Labor and Employment shall promulgate a schedule of 
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allowable fees.  
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ART. 24. Reports on Employment Status. - Whenever the public interest so 
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requires, the Secretary of Labor may direct all persons or entities within the coverage of 
16 
this Title to submit a report on the status of employment, including job vacancies; details 
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of job requisitions, separation from jobs, wages, other terms and conditions, and other 
18 
employment data.  
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ART. 25. Prohibited Practices. - It shall be unlawful for any individual, entity, 
20 
licensee or holder of authority:  
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(a) To charge or accept directly or indirectly any amount greater than that 
22 
specified in the schedule of allowable fees prescribed by the Secretary of Labor and 
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Employment, or to make a worker pay any amount greater than that actually received by 
1 
him as a loan or advance;  
2 
(b) To furnish or publish any false notice or information or document in relation 
3 
to recruitment or employment;  
4 
(c) To give any false notice, testimony, information or document or commit any 
5 
act or misrepresentation for the purpose of securing a license or authority under this 
6 
Code;  
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(d) To induce or attempt to induce a worker already employed to quit his 
8 
employment in order to offer him to another unless the transfer is designed to liberate the 
9 
worker from oppressive terms and conditions of employment;  
10 
(e) To influence or to attempt to influence any person or entity not to employ any 
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worker who has not applied for employment through his agency;  
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(f) To engage in the recruitment or placement of workers in jobs harmful to public 
13 
health or morality or to the dignity of the Republic of the Philippines;  
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(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and 
15 
Employment or by his duly authorized representatives;  
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(h) To fail to file reports on the status of employment, placement vacancies, 
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remittance of foreign exchange earnings, separation from jobs, departures and such other 
18 
matters or information as may be required by the Secretary of Labor and Employment;  
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(i) To substitute or alter employment contracts approved and verified by the 
20 
Department of Labor and Employment from the time of actual signing thereof by the 
21 
parties up to and including the periods of expiration of the same without the approval of 
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the Secretary of Labor and Employment;  
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(j) To become an officer or member of the Board of any corporation engaged in 
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travel agency or to be engaged directly or indirectly in the management of a travel 
2 
agency;  
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(k) To withhold or deny travel documents from applicant workers before 
4 
departure for monetary or financial considerations other than those authorized under this 
5 
Code and its implementing rules and regulations 
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ART. 26. Suspension and/or Cancellation of License or Authority. - The 
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Secretary of Labor and Employment shall have the power to suspend or cancel and in 
8 
both instances impose a fine, any license or authority to recruit employees for overseas 
9 
employment for violation of rules and regulations issued by the Secretary of Labor and 
10 
Employment and the POEA or for violations of the provisions of this and other applicable 
11 
laws.   
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Title I - RECRUITMENT AND PLACEMENT OF WORKERS 
 
Chapter III 
MISCELLANEOUS PROVISIONS 
ART.  27.   Regulatory Power. - The Secretary of Labor and Employment shall 
13 
have the power to restrict and regulate the recruitment and placement activities of all 
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agencies within the coverage of this Title and is hereby authorized to issue orders and 
15 
promulgate rules and regulations to carry out the objectives and implement the provisions 
16 
of this Title.     
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ART. 28. Visitorial Power. - The Secretary of Labor and Employment or his duly 
18 
authorized representatives may, at any time, inspect the premises, books of accounts and 
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records of any person or entity covered by this Title, require it to submit reports regularly 
20 
on prescribed forms, and act on violations of any provisions of this Title.  
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ART. 29. Illegal Recruitment. - (a)   Any recruitment  activities,  including the 
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prohibited practices enumerated under Article 25 of this Code, to be undertaken by non-
2 
licensees or non-holders of authority  shall  be  deemed  illegal  and punishable under 
3 
Article 30 of this Code. The Department of Labor and Employment or any law 
4 
enforcement officer may initiate complaints under this Article.   
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(b) Illegal  recruitment,  when  committed  by  a syndicate  or  in large scale shall  
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be  considered  an offense  involving  economic  sabotage  and  shall   be penalized in 
7 
accordance with Article 30 hereof. Illegal  recruitment  is  deemed  committed  by  a 
8 
syndicate  if  carried out by a group of three  (3)  or more  persons conspiring and/or 
9 
confederating with  one another  in  carrying  out  any  unlawful  or   illegal transaction,  
10 
enterprises or scheme defined  under  the first paragraph hereof.  Illegal recruitment is 
11 
deemed committed in large scale if committed against three (3) or more persons 
12 
individually or as a group.  
13 
(c)  Victims of illegal recruitment shall automatically be covered by the 
14 
government's witness protection program. 
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(d)   A criminal action arising from illegal recruitment as defined herein shall be 
16 
filed with the Regional Trial Court of the province or city where the offense was 
17 
committed or where the offended party actually resides at the time of the commission of 
18 
the offense: Provided, That the court where the criminal action is first filed shall acquire 
19 
jurisdiction to the exclusion of other courts: Provided, however, That the aforestated 
20 
provisions shall also apply to those criminal actions that have already been filed in court 
21 
at the time of the effectivity of this Act.   
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            ART. 30. Penalties - (a) The penalty  of  life imprisonment  and a fine of not less 
23 
than Two Hundred  Thousand Pesos (P200,000) nor more than Five Hundred Thousand 
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Pesos (P500,000)  shall  be  imposed  if illegal  recruitment constitutes economic  
1 
sabotage  as defined herein: 
2 
 
(b)  Any  license or holder  of  authority  found violating  or causing another to 
3 
violate any  provision of this Title or its implementing rules and regulations shall,  upon 
4 
conviction thereof, suffer the penalty  of imprisonment  of not less than two (2) years nor 
5 
more  than five (5) years and a fine of not less than  Twenty Thousand Pesos (P20,000) 
6 
nor  more   than  Two Hundred Thousand Pesos (P200,000);  
7 
 
(c)   Any person who is neither a licensee  nor  a holder  of authority under this 
8 
Title  found  violating any  provision  thereof or its implementing  rules  and  regulations 
9 
shall, upon conviction thereof, suffer  the penalty of imprisonment of not less than four 
10 
(4) years  nor more  than  eight  (8) years and a fine  of  not  less  than Fifty Thousand 
11 
Pesos (P50,000)  nor more than Four Hundred Thousand Pesos (P400,000); 
12 
 
(d)  If  the  offender   is  a corporation, partnership,  association or entity, the 
13 
penalty  shall be  imposed  upon  the  officer  or  officers  of   the corporation,   
14 
partnership,   association   or   entity responsible  for violation; and if such officer  is  an 
15 
alien,  he shall, in addition to the  penalties  herein prescribed, be deported without 
16 
further proceedings;    
17 
 
(e)   In  every case, conviction shall  cause  and carry  the  automatic  revocation  
18 
of  the  license  or authority and all the permits and privileges granted to such  person  or  
19 
entity  under this  Title, and the forfeiture of the cash and surety bonds in favor of the 
20 
DOLE which is authorized to use the same exclusively to promote its objectives.  
21 
 
Title II - EMPLOYMENT OF NON-RESIDENT ALIENS 
 


 
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ART. 31.   Employment   Permit of Non-Resident Aliens. -  Any alien seeking 
1 
admission to the Philippines for employment purposes and any domestic or foreign 
2 
employer who desires to engage an alien for employment in the Philippines shall obtain 
3 
an employment permit from the DOLE. The employment permit may be issued to a non-
4 
resident alien or to the applicant employer after a determination of the non-availability of 
5 
a person in the Philippines who is competent, able and willing at the time of application 
6 
to perform the services for which the alien is desired. For an enterprise registered in 
7 
preferred areas of investments, said employment permit may be issued upon 
8 
recommendation of the government agency charged with the supervision of said 
9 
registered enterprise. 
10 
ART. 32. Prohibition against Transfer of Employment. – (a) After the issuance 
11 
of employment permit, the alien shall not transfer to another job or change his employer 
12 
without prior approval of Secretary of Labor and Employment. 
13 
(b) Any non-resident alien who shall take up employment in violation of the 
14 
provision of this Title and its implementing rules and regulations shall be punished in 
15 
accordance with the provisions of Articles 306 and 307 of this Code. In addition, the 
16 
alien worker shall be subject to deportation after service of his sentence.  
17 
ART. 33. Submission of List. - Any employer employing non-resident foreign 
18 
nationals on the effective date of this Code shall submit a list of such nationals to the 
19 
Secretary of Labor and Employment within 30 days after such date indicating their 
20 
names, citizenship, foreign and local addresses, nature of employment and status of stay 
21 
in the country. The Secretary of Labor and Employment shall then determine if they are 
22 
entitled to an employment permit. 
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BOOK TWO   
HUMAN RESOURCES DEVELOPMENT PROGRAM 
 
Title I - TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 
 
Chapter I  
APPRENTICES 
 
ART. 34. Statement of Objectives. - This Title aims: 
1 
(1)        To help meet the demand of the economy for trained manpower; 
2 
(2)    To establish a national apprenticeship system that is competency- and 
3 
occupation-based, including an on- and off-the job training program through the 
4 
participation of employers, workers, and government;  
5 
(3)         To establish apprenticeship standards for the protection of apprentices.  
6 
ART. 35.  Definition of Terms – As used in this Title:   
7 
(a) “Apprenticeship” means enterprise-based practical training with compulsory 
8 
related theoretical instructions in or outside the enterprise involving a contract between 
9 
an apprentice and an enterprise on an approved apprenticeable occupation. 
10 
(b) An “apprentice” is a person undergoing training for an approved 
11 
apprenticeable occupation in an established period assured by an apprenticeship 
12 
agreement.  
13 
(d) “Apprenticeship agreement” is  a contract wherein an  enterprise binds itself to 
14 
train the apprentice who in turn accepts the terms of training for a recognized 
15 
apprenticeable occupation emphasizing the rights, duties and responsibilities of each 
16 
party.   
17 
(c)  An “apprenticeable occupation” is an occupation promulgated by the TESDA 
18 
Board, with equal representation from firm owners, workers and training institutions, and 
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approved for apprenticeship by TESDA.  The apprenticeable occupation requires a 
1 
minimum duration of four (4) months; provided, however, that the TESDA Board may 
2 
prescribe a longer training period depending on its approved occupational skills 
3 
standards.  
4 
(e)  “Occupational Skills Standards" are written specifications setting out the 
5 
requirements of knowledge and skills with respect to a particular trade. 
6 
(f)  “Occupational Skills Assessment” is a formal recognition of a worker's skills 
7 
qualification for a particular trade.  
8 
(g)  “Apprenticeship fee" is a tax imposed on enterprises with the view in mind of 
9 
financing apprenticeship-training activities.  
10 
ART. 36. Qualifications of an Apprentice - To qualify as an apprentice, a person 
11 
shall:  
12 
(a)  Be a high school graduate;  
13 
(b) Possess vocational aptitude and capacity for apprenticeship as established 
14 
through appropriate testing; and   
15 
(c) Possess the ability to comprehend and follow oral and written instructions. 
16 
Industry training boards, industry associations, and labor groups may recommend to the 
17 
TESDA appropriate educational requirements for different occupations.   
18 
ART. 37. Training of Apprentices - Registered enterprises may enter into 
19 
apprenticeship agreements or train apprentices in approved apprenticeable occupations.   
20 
ART.  38. Contents of Apprenticeship Agreements. - Apprenticeship agreements 
21 
shall conform to the rules issued by the TESDA and shall include the following:  
22 
(a)     Nature, and purpose of training;  
23 
(b)     Curriculum and period of training;  
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(c)     Prescribed training allowance which in no case shall start below 75% of the 
1 
applicable minimum wage; 
2 
(d)      Schedule of training allowance payments;  
3 
(e)   Training hours which shall not exceed the working hours of a regular 
4 
employee;  
5 
(f)      Process of termination of apprenticeship; and 
6 
(g)     General rights and obligations of both parties.   
7 
            ART. 39. Signing of Apprenticeship Agreement – Every apprenticeship 
8 
agreement shall be signed by the employer or his agent, or by an authorized 
9 
representative of any of the recognized organizations, associations or groups and by the 
10 
apprentice. An apprenticeship agreement with a minor shall be signed in his behalf by his 
11 
parent or guardian or, if the latter is not available, by an authorized representative of the 
12 
DOLE, and the same shall be binding during its lifetime. Every apprenticeship agreement 
13 
entered into under this title shall be ratified by the Tripartite Apprenticeship Committee 
14 
which shall have equal representation consisting of two (2) from enterprise, two (2) from 
15 
workers, and one (1) from the government.   
16 
            ART. 40. Apprenticeship Schemes – Registered enterprise, group or association, 
17 
industry organization or civic group wishing to organize the apprenticeship program, or a 
18 
would-be apprentice, may choose from any of the following apprenticeship schemes 
19 
which may use the dual training system approach:   
20 
            (a)     Apprenticeship involving a company and an identified training institution;   
21 
            (b)     Apprenticeship involving a group of companies and a training institution; 
22 
            (c)   Apprenticeship involving an industry training center and a company or a 
23 
group of companies;   
24 


 
19
            (d)    Other schemes to be established by the TESDA in consultation with industry 
1 
training boards, industry association and labor groups,  and subject to the approval of the 
2 
TESDA Board.   
3 
            ART. 41.  Apprenticeship Administration - The overall policy for apprenticeship 
4 
shall be the function of the TESDA Board.  The responsibility for apprenticeship 
5 
administration, monitoring and evaluation of on- and off-the-job training shall be the 
6 
concern of the TESDA secretariat, particularly the Office of Apprenticeship. The 
7 
identification and prioritization of apprenticeable occupations and the development of 
8 
standards and curricula shall be the responsibility of industry training boards, industry 
9 
associations and labor groups.  The Tripartite Plant Apprenticeship Committees shall be 
10 
established in participating enterprises to ensure that program implementation is in 
11 
accordance with policies. 
12 
            Any of the apprenticeship schemes recognized herein may be undertaken or 
13 
sponsored by an enterprise or by a group or association thereof, or by a civic 
14 
organization.  Actual training of apprentices may be undertaken: 
15 
            (a) In the premises of the sponsoring enterprise in the case of individual 
16 
apprenticeship programs; 
17 
            (b)  In the premises of one or several designated firms in the case of programs 
18 
sponsored by a group or association of enterprises or by civic organizations; or   
19 
            (c)   In a TESDA training center or other training institution.   
20 
ART. 42.  Investigation of Violation of Apprenticeship Agreement - The 
21 
Tripartite Plant Apprenticeship Committee, upon complaint of any interested party or 
22 
motu propio, shall have the initial responsibility for settling differences arising from 
23 
apprenticeship agreements.  In case it is not able to settle such differences, the TESDA 
24 


 
20
Secretariat or its authorized representative shall investigate and render a decision 
1 
pursuant to pertinent rules and regulations.   
2 
ART. 43.  Appeal to the TESDA Secretariat – The decision of the TESDA 
3 
Secretariat may be appealed by any aggrieved person to the TESDA Board within five (5) 
4 
days from receipt of the decision.  The decision of the TESDA Board shall be final and 
5 
executory.   
6 
ART. 44. Exhaustion of Administrative Remedies. - No person shall institute  
7 
any action for the enforcement of any apprenticeship agreement or damages for breach 
8 
of any such agreement, unless he has exhausted all available administrative remedies.  
9 
ART. 45. Aptitude Testing of Applicants – Consonant with the minimum 
10 
qualifications of the apprentice-applicants required under this Chapter, the employers or 
11 
entities with duly recognized apprenticeship programs shall have the primary 
12 
responsibility for providing appropriate aptitude tests in the selection of apprentices. If 
13 
they do not have adequate facilities for the purpose, the TESDA may perform the service 
14 
free of charge.   
15 
ART. 46. Responsibility for Theoretical Instruction. – Supplementary 
16 
theoretical instruction to apprentices in cases where the program is undertaken in the 
17 
plant may be done by the employer. If the latter is not prepared to assume the 
18 
responsibility, the same may be delegated to an appropriate government agency.  
19 
ART.   47. - Voluntary Organization of Apprenticeship Program: Exemptions –           
20 
            (a)  The organization of apprenticeship programs shall be primarily a voluntary 
21 
undertaking of enterprises.    
22 
            (b)  When national security or particular requirements of economic development 
23 
so demand, the President of the Philippines may require compulsory training of 
24 


 
21
apprentices in certain trades, occupations, jobs or employment levels where shortage of 
1 
trained manpower is deemed critical as determined by the  TESDA Board upon the 
2 
recommendation of its Secretariat.   
3 
            (c)  Where services of foreign technicians are utilized by private companies in 
4 
apprenticeable trades, such companies are required to set-up appropriate apprenticeship 
5 
programs.   
6 
ART. 48. Apprenticeship Training Fund and Exemption. -There shall be an 
7 
Apprenticeship-Training Fund which shall be derived from the apprenticeship fee paid by 
8 
every enterprise in industries employing apprenticeable trades.  Workers who are 
9 
graduates of apprenticeship programs shall likewise pay a one-time apprenticeship fee 
10 
upon employment as contribution to the Apprenticeship Training Fund.  The 
11 
apprenticeship fee rates and guidelines to be applied shall be approved by the TESDA 
12 
Board after a public hearing with the management and labor sectors.  The fee shall be 
13 
collected and paid through the SSS and transferred to the Apprenticeship Training Fund 
14 
to be administered by the TESDA.  The apprenticeship fee rate may be increased by the 
15 
TESDA Subject to the requirements of a public hearing.   
16 
             The Apprenticeship Training Fund shall be deemed distinct and separate from the 
17 
TESDA Development Fund under Section 31 of Republic Act No. 7796 or the “TESDA 
18 
Law,” and as such, shall not be subject to its implementing rules and regulations.  Such 
19 
Apprenticeship Fund may be used to defray expenses of the trainees in the institution or 
20 
training center as well as other expenses to be approved by the TESDA Board to improve 
21 
the implementation of the program. 
22 


 
22
An additional deduction from taxable income equivalent to fifty percent (50%) of 
1 
training expenses shall be granted to persons or enterprises organizing the program and 
2 
shall be exempted from:   
3 
(a)   Paying the apprenticeship fee;   
4 
(b)   Duty on all equipment dedicated to training; and   
5 
(c)   VAT on locally purchased training equipment and materials.   
6 
Provided.  That such program is duly recognized by the Department of Labor and 
7 
Employment:  Provided, further, That such deduction shall not exceed ten percent (10%) 
8 
of direct labor wage.  Micro-cottage and small enterprises or those with less than one 
9 
hundred (100) employees shall also be exempt from the payment of apprenticeship fee.  
10 
ART. 49. Exemption from Probationary Employment; System of Equivalency - 
11 
Certified apprenticeship graduates shall be exempted from probationary employment.  
12 
They shall be employed as regular workers if chosen to be retained by the Enterprise. 
13 
Apprenticeship graduates shall, likewise be awarded equivalent unit credits in the formal 
14 
system of education and that can be used in pursuing tertiary degree courses, subject to 
15 
the integrated policies and guidelines on equivalency and adult education acceleration 
16 
program of TESDA, Commission on Higher Education (CHED) and DepEd.   
17 
 
Title I - TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 
Chapter II 
 LEARNERS 
 
 
 
ART. 50. Learners Defined. – Learners are persons hired as trainees in semi-
18 
skilled and other industrial occupations which are non-apprenticeable. Learnership 
19 
programs must be approved by the TESDA.   
20 


 
23
 
 
ART. 51. When Learners Maybe Hired. - Learners may be employed when no 
1 
experienced workers are available, the employment of learners is necessary to prevent 
2 
curtailment of employment opportunities, provided, that the employment does not create 
3 
unfair competition in terms of labor costs or impair or lower working standards. 
4 
Provided, further, That the number of apprentices shall not exceed ten per cent (10%) of 
5 
the total workforce of the company.  
6 
ART.  52. Learnership Agreement. - Any employer/enterprise desiring to employ 
7 
learners shall enter into a learnership agreement with them, which agreement shall 
8 
include:  
9 
(a) The names and addresses of the learners;  
10 
(b) The duration of the learnership period, which shall not exceed three (3) 
11 
months;  
12 
(c) The training allowances of the learners which shall begin at not less than the 
13 
applicable minimum wage for a specific occupation and subject to tripartite consultation; 
14 
(d) A commitment to employ the learners, if they so desire, as regular employees 
15 
upon completion of the learnership. All learners who have been allowed or suffered to 
16 
work during the first two (2) months shall be deemed regular employees if training is 
17 
terminated by the employer before the end of the stipulated period through no fault of the 
18 
learner.   
19 
ART. 53.  Learners   in    Piece Work. - Learners employed in piece or incentive 
20 
rate jobs during the training period shall be paid in full for the work done. 
21 
ART. 54. Penalty Clause. - Any violation of this Chapter or its implementing 
22 
rules and regulations shall be subject to the general penalty clause provided for in this 
23 
Code.  
24 


 
24
 
Title I - TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 
 
Chapter III 
HANDICAPPED WORKERS 
 
ART. 55. Definition. - Handicapped workers are those whose earning capacity is 
1 
impaired by age or physical or mental deficiency or injury.  
2 
ART. 56. When Employable. – Handicapped workers may be employed when 
3 
their employment is necessary to prevent curtailment of employment opportunities and 
4 
when it does not create unfair competition in labor costs or impair or lower working 
5 
standards.  
6 
ART. 57. Employment Agreement. - Any employer who employs handicapped 
7 
workers shall enter into an employment agreement with them, which agreement shall 
8 
include:  
9 
(a)   The names and addresses of the handicapped workers to be employed;  
10 
(b)   The rate to be paid the handicapped workers which shall be not less than 
11 
seventy-five per cent (75%) of  the applicable legal minimum wage;  
12 
(c)   The duration of employment period; and  
13 
(d)   The work to be performed by the handicapped workers.  
14 
The employment agreement shall be subject to inspection by the Secretary of 
15 
Labor and Employment or his duly authorized representatives.  
16 
ART.  58. Eligibility for Apprenticeship. Subject to the appropriate provisions of 
17 
this Code, handicapped workers may be hired as learners or undergo training as 
18 
apprentices if their handicap is not such as to effectively impede the performance of job 
19 
operations in the particular occupations for which they are hired.   
20 
 


 
25
 
Title I - TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 
 
Chapter IV 
OTHER TRAINING PROGRAMS 
 
**ART. 59.  Special Program for Employment of Students. – Any provision of 
1 
law to the contrary notwithstanding, any person or entity employing more than ten (10) 
2 
persons may employ poor but deserving students fifteen (15) years of age but not more 
3 
than twenty-five (25) years old, paying them a salary or wage not lower than the 
4 
minimum wage for private employers and the applicable hiring rate for the national and 
5 
local government agencies: Provided, however, That their employment shall not exceed 
6 
three (3) months. Provided, further, That students employed in activities related to their 
7 
course shall earn equivalent academic credits as may be determined by appropriate 
8 
government agencies.  
9 
For this purpose, poor but deserving students refers to those whose parents’ 
10 
combined income, together with their own, if any, do not exceed the annual national 
11 
poverty threshold level for a family of six (6) for the preceding year as may be 
12 
determined by the National Statistics Coordination Board (NSCB). Employment 
13 
facilitation services for applicants to the program shall be done by the Public 
14 
Employment Service Office (PESO).  
15 
**ART. 60. Penalties. – Any person or entity who shall make any fraudulent or 
16 
fictitious claim under this Act, regardless of whether payment has been made, and any 
17 
person or entity who refuses to honor an education voucher, shall, upon conviction, be 
18 
punished with imprisonment of not less than six (6) months and not more than one (1) 
19 
year and a fine of not less than Ten Thousand Pesos (P10,000.00), without prejudice to 
20 


 
26
their prosecution and punishment for any other offense punishable under the Revised 
1 
Penal Code or any other penal statute.  
2 
 
 
 
BOOK THREE 
CONDITIONS OF EMPLOYMENT 
 
Title I - WORKING CONDITIONS AND REST PERIODS 
 
Chapter I 
HOURS OF WORK 
            
ART. 61. Coverage. - The provision of this Title shall apply to employees, 
3 
whether regular or temporary as defined in Article 297, in all establishments and 
4 
undertakings, whether for profit or not, but not to government employees, managerial 
5 
employees, field personnel, immediate members of the family of the employer who are 
6 
dependent on him for support, domestic helpers, and persons in the personal service of 
7 
another.   
8 
As used herein, "managerial employees" refer to managers and supervisors as 
9 
defined in Article 227(w). "Field personnel" refer to non-agricultural employees who 
10 
regularly perform their duties away from the principal place of business or branch office 
11 
of the employer and whose actual hours of work in the field cannot be determined with 
12 
reasonable certainty. All employers, contractors and subcontractors, shall observe the 
13 
provisions of this book and are directly liable for their violations in accordance with Art. 
14 
92 of this Code.    
15 
ART. 62.  Normal Hours of Work. - The normal hours of work of any employee 
16 
shall not exceed eight in a day. Health personnel in cities or municipalities with a 
17 


 
27
population of at least one million (1,000,000) or in hospitals or clinics with a bed 
1 
capacity of at least one hundred (100) shall hold regular office hours for eight (8) hours a 
2 
day, for five (5) days a week,  exclusive of time for meals, except where the exigencies of 
3 
the service require that such personnel work for six (6) days or forty-eight (48) hours, in 
4 
which case they shall be entitled to an additional compensation of at least thirty (30%) 
5 
percent of their regular wage for work on the sixth day. For purposes of this Article, 
6 
"health personnel" shall include: resident physicians, nurses, nutritionists, dieticians, 
7 
pharmacists, social workers, laboratory technicians, paramedical technicians, 
8 
psychologists, midwives, attendants and all other hospital or clinic personnel.  
9 
ART. 63. Hours Worked. - Hours worked shall include (a) all time during which 
10 
an employee is required to be on duty or to be at a prescribed workplace; and (b) all time 
11 
during which an employee is suffered or permitted to work. Rest periods of short duration 
12 
during working hours shall be counted as hours worked. 
13 
ART. 64. Meal Periods. - Subject to such regulations as the Secretary of Labor 
14 
and Employment may prescribe, it shall be the duty of every employer to give his 
15 
employees not less than sixty minutes time-off for their regular meals.  
16 
ART. 65. Night Shift Differential. - Every employee shall be paid a night shift 
17 
differential of not less than ten percent (10%) of his regular wage for each hour of work 
18 
performed between ten o'clock in the evening and six o'clock in the morning.  
19 
ART. 66. Overtime Work - Work may be performed beyond eight (8) hours a day 
20 
provided that the employee is paid for the overtime work, an additional compensation 
21 
equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work 
22 
performed beyond eight hours on a holiday or rest day shall be paid an additional 
23 


 
28
compensation equivalent to the rate of the first eight hours on a holiday or rest day plus at 
1 
least thirty percent (30%) thereof.  
2 
ART. 67.  Undertime not Offset by Overtime. - Undertime work on any particular 
3 
day shall not be offset by overtime work on the same or any other day, except as 
4 
otherwise provided in a Collective Bargaining Agreement. Permission given to the 
5 
employee to go on leave on some other day of the week shall not exempt the employer 
6 
from paying the additional compensation required in this Chapter.   
7 
ART. 68. Emergency Overtime Work. - Any employee may be required by the 
8 
employer to perform overtime work in any of the following cases:  
9 
(a) When the country is at war or when any other national or local emergency has 
10 
been declared by Congress or the Chief Executive;  
11 
(b) When it is necessary to prevent loss of life or property or in case of imminent 
12 
danger to public safety due to an actual or impending emergency in the locality caused by 
13 
serious accidents, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity;  
14 
(c) When there is urgent work to be performed on machines, installation or 
15 
equipment, in order to avoid serious loss or damage to the employer or some other cause 
16 
of similar nature;  
17 
(d) When the work is necessary to prevent loss or damage to perishable goods;  
18 
(e) Where the completion or continuation of the work started before the eight (8) 
19 
hour is necessary to prevent serious obstruction or prejudice to the business or operations 
20 
of the employer.  
21 
Any employee required to render overtime work under this Article shall be paid 
22 
the additional compensation required in this Chapter.  
23 


 
29
ART. 69. Computation of Additional Compensation. - For purposes of 
1 
computing overtime and other additional remuneration as required by this Chapter the 
2 
regular wage   of   an employee shall include the cash wage and the corresponding cash 
3 
equivalent of the facilities provided by the employer if the value of the same is deducted 
4 
from the salary of the employee or added to his salary as part of his regular wage.   
5 
 
Title I - WORKING CONDITIONS AND REST PERIODS 
 
Chapter II 
WEEKLY REST PERIODS 
 
ART. 70. Right to Weekly Rest Day. - (a) It shall be the duty of every employer, 
6 
whether operating for profit or not, to provide each of his employees a rest period of not 
7 
less than twenty-four consecutive hours after every six consecutive normal work days.  
8 
(b) The employer shall determine and schedule the weekly rest day of his 
9 
employees, subject to collective agreement and to such rules and regulations as the 
10 
Secretary of Labor and Employment may provide. However, the employer shall respect 
11 
the preference of employees as to their weekly rest day when such preference is based on 
12 
religious grounds.  
13 
ART. 71. When Employer May Require Work on a Rest Day. - The employer 
14 
may require his employees to work on any day:  
15 
(a) In case of actual or impending emergencies caused by serious accidents, fire, 
16 
flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life 
17 
and property or imminent danger to public safety;  
18 
(b) In cases of urgent work to be performed on the machinery, equipment or 
19 
installation to avoid serious loss which the employer would otherwise suffer;  
20 


 
30
(c) In the event of abnormal pressure of work due to special circumstances, where 
1 
the employer cannot ordinarily be expected to resort to other measures;  
2 
(d) To prevent loss or damage to perishable goods;  
3 
(e) Where the nature of the work requires continuous operations and the stoppage 
4 
of work may result in irreparable injury or loss to the employer; and  
5 
(f) Under other circumstances analogous or similar to the foregoing as determined 
6 
by the Secretary of Labor and Employment.    
 
 
 
7 
ART. 72. Compensation for Rest Day, Sunday or Holiday Work. - (a) Where an 
8 
employee is made or permitted to work on his scheduled rest day, he shall be paid an 
9 
additional compensation of at least thirty percent (30%) of his regular wage. An 
10 
employee shall be entitled to such additional compensation for work performed on 
11 
Sunday only when it is his established rest day. 
12 
(b) When the nature of the work of the employee is such that he has no regular 
13 
workdays and no regular rest days can be scheduled, he shall be paid an additional 
14 
compensation of at least thirty percent (30%) of his regular wage for work performed on 
15 
Sundays and holidays.  
16 
(c) Work performed on any special holiday shall be paid an additional 
17 
compensation of at least thirty percent (30%) of the regular wage of the employee. Where 
18 
such holiday work falls on the employee's scheduled rest day, he shall be entitled to an 
19 
additional compensation of at least fifty percent (50%) of his regular wage.  
20 
(d) Where the collective bargaining agreement or other applicable employment 
21 
contract stipulates the payment of a higher premium pay than that prescribed under this 
22 
Article, the employer shall pay such higher rate.  
23 
             
 
 


 
31
Title I - WORKING CONDITIONS AND REST PERIODS 
Chapter III 
HOLIDAYS, SERVICE INCENTIVE LEAVES 
AND SERVICE CHARGES 
 
ART. 73. Right to Holiday. - (a)  Every worker shall  be  paid   his  regular daily  
1 
wage during regular holidays,   except in retail and service establishments regularly 
2 
employing less  than (10) workers.    
3 
(b) The employer may require an employee to work on any holiday but such 
4 
employee shall be paid a compensation equivalent to twice his regular rate.  
5 
(c)  As used in this Article, "holiday" includes:   New Year's  Day,  Maundy 
6 
Thursday,  Good  Friday,  the ninth of April, the  first of  May, the twelfth of June, the 
7 
last Sunday of August, the thirtieth  of November, the twenty-fifth and the thirtieth of  
8 
December,  and the day designated by  law  for holding a  general election. 
9 
ART.  74. Right to 13th Month Pay. – (a)  All employers are required to pay all 
10 
their rank and file employees regardless of the nature of the employment, a 13th-month   
11 
pay not later than December of every year.  The provisions of Presidential Decree No. 
12 
851 shall apply.  
13 
(b)  The provisions of Presidential Decree No. 1083 regarding payment of holiday 
14 
pay for days therein enumerated as Muslim holidays shall continue.  
15 
ART. 75. Right to Service Incentive Leave.  – (a)   Every  employee  who has 
16 
rendered  at  least one  year  of service shall  be entitled  to  a  yearly service incentive 
17 
leave of  ten  (10) days each with pay. Unused service incentive leave may be converted 
18 
to cash at the option of the employee. 
19 
(b)  This provision shall not apply to  those  who are   already enjoying  the  
20 
benefit herein  provided, those enjoying  vacation leave with pay of  at  least ten (10) 
21 


 
32
days and those employed  in  establishments regularly employing  less than ten  (10) 
1 
employees  or   in establishments  exempted from granting this benefit  by the  Secretary 
2 
of Labor and Employment after considering the viability or financial condition of such 
3 
establishment.  
4 
(c)   The  grant  of benefit  in  excess  of  that provided   herein  shall  not  be  
5 
made  a  subject  of arbitration or any court or administrative action.   
6 
ART. 76. Right to Paternity Leave. – Notwithstanding any law, rules and 
7 
regulations to the contrary, every married male employee in the private and public sectors 
8 
shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) 
9 
deliveries of the legitimate spouse with whom he is cohabiting. The male employee 
10 
applying for paternity leave shall notify his employer of the pregnancy of his legitimate 
11 
spouse and the expected date of such delivery. For purposes of this Act, delivery shall 
12 
include childbirth or any miscarriage.  
13 
**ART. 77. Right to Family and Medical Leave – (a) Any employee, regardless 
14 
of status, may apply for an unpaid family and medical leave of up to four (4) weeks when 
15 
his spouse, parent, or unmarried child suffers from serious illness: Provided, however, 
16 
That spouses working for the same employer when availing of this benefit shall only be 
17 
granted a combined total of four (4) weeks of unpaid leave. The employee may also apply 
18 
for the same if he himself is physically unable to perform his job due to serious illness. 
19 
(b) 
The leave application shall be accompanied by a notarized medical 
20 
certificate stating clearly the nature and extent of illness, and duly accomplished by a 
21 
licensed physician.  
22 
(c) 
The four-week leave may be availed of by the employee in parts but no 
23 
remainder therof shall be carried over the succeeding year. 
24 


 
33
(d)        Availment of this leave shall not diminish or affect whatever vested rights 
1 
and benefits the employee is already receiving under the law, collective bargaining 
2 
agreement or from the employer; Provided, That the employee who is already receiving a 
3 
similar unpaid leave benefit under the law or collective bargaining agreement shall only 
4 
be entitled to a maximum of four (4) weeks of unpaid leave benefit.  
5 
ART. 78. Service charges. - All service charges collected by hotels, restaurants 
6 
and similar establishments shall be distributed at the rate of eighty-five percent (85%) for 
7 
all covered employees and fifteen percent (15%) for management. The share of the 
8 
employees shall be equally distributed among them. In case the service charge is 
9 
abolished, the share of the covered employees shall be considered integrated into their 
10 
wages.  
11 
Title II - WAGES 
 
Chapter I 
PRELIMINARY MATTERS 
 
 
ART 79.  Definition. - As used in this Title: (a) "Person" means an individual, 
12 
partnership, association, corporation, business trust, legal representative or any organized 
13 
group of persons.  
14 
(b) "Employer" includes any person acting directly or indirectly in the interest of 
15 
an employer in relation to an employee and shall include the Government and all its 
16 
branches, subdivisions and instrumentalities, all government-owned or controlled 
17 
corporations and institutions, as well as contractors and subcontractors and non-profit 
18 
private institutions or organizations. 
19 
(c) "Employee" includes any individual employed by an employer as defined in 
20 
the preceding paragraph. 
21 


 
34
(d) "Agriculture" includes farming in all its branches and among other things 
1 
includes the cultivation and tillage of soil, dairying, the production, cultivation, growing 
2 
and harvesting of any agricultural and horticultural commodities, the raising of livestock 
3 
or poultry, and any practices performed by a farmer on a farm as an incident to or in 
4 
conjunction with such farming operations, but does not include the manufacturing or 
5 
processing of sugar, coconuts, abaca, tobacco, pineapples or other farm products.  
6 
(e) "Employ" includes to suffer or permit to work.  
7 
(f) "Wage" paid to any employee shall mean the remuneration or earnings, 
8 
however designated, capable of being expressed in terms of money, whether fixed or 
9 
ascertained on a time, task, piece, or commission basis, or other method of calculating the 
10 
same, which is payable by an employer to an employee under a written or unwritten 
11 
contract of employment for work done or to be done or for services rendered or to be 
12 
rendered and includes the fair and reasonable value, as determined by the Secretary of 
13 
Labor, of board, lodging or other facilities customarily furnished by the employer to the 
14 
employee. "Fair and reasonable value" shall not include any profit to the employer or to 
15 
any person affiliated with the employer.   
16 
ART. 80. Application of Title. - This Title shall not apply to farm tenancy or 
17 
leasehold, domestic service and persons working in their respective homes in needlework 
18 
or in any cottage industry duly registered in accordance with law. 
19 
 
Title II - WAGES 
 
Chapter II 
MINIMUM WAGE RATES 
 


 
35
ART. 81.  Regional Minimum Wages. - The minimum wage rates for agricultural 
1 
and non-agricultural employees and workers in each and every region of the country shall 
2 
be those prescribed by the Regional Tripartite Wages and Productivity Boards.  
3 
ART. 82.  Prohibition against Elimination or Diminution of Benefits. - Nothing 
4 
in this Book shall be construed to eliminate or in any way diminish supplements, or other 
5 
employee benefits being enjoyed at the time of the promulgation of this Code.  
6 
ART. 83. Payment by Results. - The Secretary of Labor and Employment shall 
7 
regulate the payment of wages by results, including pakyao, piecework and other non-
8 
time work, in order to ensure the payment of fair and reasonable wage rates, preferably 
9 
through time and motion studies or in consultation with representatives of workers' and 
10 
employers' organizations.  
11 
 
Title II – WAGES 
 
Chapter III 
PAYMENT OF WAGES 
 
ART. 84. Forms of Payment. - No employer  shall  pay  the wages  of  an 
12 
employee by means of  promissory  notes,  vouchers, coupons, tokens, tickets, chits  or 
13 
any  object  other than   legal  tender,  even   when expressly requested by the employee. 
14 
Payment   of wages by check or money  order  or through a bank, shall  be  allowed when 
15 
such manner of payment is customary  or advisable, or is necessary because of  special  
16 
circumstances  as  specified  in appropriate regulations to be issued  by the  Secretary of  
17 
Labor  and Employment or as stipulated in  a   collective bargaining agreement.   
18 
ART. 85. Time of Payment. - Wages shall be paid at least once every two (2) 
19 
weeks or twice a month at intervals not exceeding sixteen (16) days. If on account of 
20 
force majeure or circumstances beyond the employer's control, payment of wages on or 
21 


 
36
within the time herein provided cannot be made, the employer shall pay the wages 
1 
immediately after such force majeure or circumstances have ceased. No employer shall 
2 
make payment with less frequency than once a month. 
3 
The payment of wages of employees engaged to perform a task which cannot be 
4 
completed in two weeks shall be subject to the following conditions in the absence of a 
5 
collective bargaining agreement or arbitration award:    
6 
(1)  That payments are made at intervals not exceeding sixteen days, in proportion 
7 
to the amount of work completed; and  
8 
(2)  That final settlement is made upon completion of the work.   
9 
ART. 86. Place of Payment. - Payment of wages shall be made at or near the 
10 
place of undertaking, except as otherwise provided by such regulations as the Secretary 
11 
of Labor and Employment may prescribe under conditions to ensure greater protection of 
12 
wages.  
13 
ART. 87. Direct Payment of Wages. - Wages shall be paid directly to the workers 
14 
to whom they are due, except:  
15 
(a) In cases of force majeure rendering such payments impossible or under other 
16 
special circumstances to be determined by the Secretary of Labor and Employment in 
17 
appropriate regulations, in which case the worker may be paid through another person 
18 
under written authority given by the worker for the purpose; or  
19 
(b) Where the worker has died, in which case the employer may pay the wages of 
20 
the deceased worker to the heirs of the latter without the necessity of intestate 
21 
proceedings. The claimant, if they are all of age, shall execute an affidavit attesting to 
22 
their relationship to the deceased and the fact that they are his heirs, to the exclusion of 
23 
all other persons. If any of the heirs is a minor, the affidavit shall be executed on his 
24 


 
37
behalf by his natural guardian or next of kin. The affidavit shall be presented to the 
1 
employer who shall make payment through the Secretary of Labor and Employment or 
2 
his representative. The representative of the Secretary of Labor and Employment shall act 
3 
as referee in dividing the amount paid among the heirs. The payment of wages under this 
4 
Article shall absolve the employer of any further liability with respect to the amount paid. 
5 
 
ART. 88. Contractor or Subcontractor. - Whenever an employer enters into a 
6 
contract with another  person for the performance of the former's work, the employees of  
7 
the contractor and of  the latter's  subcontractor, if any,  shall  be  paid  in  accordance   
8 
with   the provisions of this Code. In  the event that the contractor or subcontractor fails  
9 
to pay the wages of his employees in  accordance with  this  Code,  the employer shall  be  
10 
jointly  and severally liable with his  contractor or  subcontractor to such employees to 
11 
the extent of the  work  performed under the contract, in the same manner and extent  that 
12 
he is liable to employees directly employed by him.  
13 
 
"Labor-only" contracting is hereby declared unlawful. For this purpose, labor-
14 
only contracting shall refer to an arrangement where the contractor or subcontractor 
15 
merely recruits, supplies or places workers to perform a job, work or service for a 
16 
principal, and any of the following elements are present: 
17 
 
(1) The contractor or subcontractor does not have substantial capital or investment 
18 
which relates to the job, work or service to be performed and the employees recruited, 
19 
supplied or placed by such contractor or subcontractor are performing activities which are 
20 
directly related to the main business of the principal: or  
21 
 
(2) The contractor does not exercise the right to control the performance of the 
22 
work of the contractual employee.  
23 


 
38
 
The foregoing provisions shall be without prejudice to the application of Article 
1 
264(c) of this  Code.  
2 
 
“Substantial capital or investment” refers to capital stocks and subscribed 
3 
capitalization in the case of corporations, tools, equipment, implements, machineries and 
4 
work premises, actually and directly used by the contractor or subcontractor in the 
5 
performance or completion of the job, work or service contracted out.  The “right to 
6 
control” shall refer to the right reserved to the person for whom the services of the 
7 
contractual workers are performed, to determine not only the end to be achieved, but also 
8 
the manner and means to be used in reaching that end.  
9 
ART. 89. Licensing of Job Contractors. - The Secretary of Labor and 
10 
Employment through the Regional Office shall issue qualified applicants the job 
11 
contractor's license in accordance with guidelines prescribed for the purpose.  The 
12 
applicant must be a Filipino citizen or a corporation of which one hundred percent 
13 
(100%) of authorized and voting capital is owned and controlled by Filipino citizens, a 
14 
partnership, cooperative, craft union or any other entity.  Such a contractor shall, 
15 
likewise, comply with the requirements of other government authorities.  
16 
ART. 90. Indirect Employer. - The provisions of the immediately preceding 
17 
Article shall likewise apply to any person, partnership, association or corporation which, 
18 
not being an employer, contracts with an independent contractor for the performance of 
19 
any work, task, job or project.  
 
 
20 
ART. 91.  Posting of Bond. - An employer or indirect employer may require the 
21 
contractor or sub-contractor to furnish a bond equal to the cost of labor under contract, on 
22 
condition that the bond will answer for the wages due the employees should the 
23 
contractor or sub-contractor, as the case may be, fail to pay the same.  
 
 
  
24 


 
39
ART. 92.  Solidary Liability. -   The provisions of existing laws to the contrary 
1 
notwithstanding, every employer or indirect employer shall be held responsible with his 
2 
contractor or subcontractor for any violation of any provision of this Code.   
3 
For   purposes of determining the extent of their civil liability under this Chapter, 
4 
they shall be considered as direct employers if the contractor or subcontractor is not 
5 
authorized by the Secretary of Labor and Employment or his duly authorized 
6 
representative to undertake contracting activities.   
7 
ART.  93.  Worker   Preference   in   Case of Closure.   -  In  the  event of 
8 
bankruptcy,  liquidation, closure or cessation of operations of an employer's business, his 
9 
workers shall enjoy  first and absolute preference as  regards  their wages  and other 
10 
monetary claims, any provision of  law to the contrary notwithstanding.  Such unpaid 
11 
wages and monetary claims shall be paid in full before claims of the government and 
12 
other creditors may be paid.   
13 
ART. 94. Attorney's Fees. - (a) In cases of unlawful withholding of wages the 
14 
culpable party may be assessed attorney's fees equivalent to ten percent of the amount of 
15 
wages recovered.  
16 
(b) It shall be unlawful for any person to demand or accept, in any judicial or 
17 
administrative proceedings for the recovery of the wages, attorney's fees which exceed 
18 
ten percent of the amount of wages recovered.  
19 
 
Title II – WAGES 
 
Chapter IV 
PROHIBITIONS REGARDING WAGES 
 
ART. 95.  Non-Interference in Disposal of Wages. - No employer shall limit or 
20 
otherwise interfere with the freedom of any employee to dispose of his wages. He shall 
21 


 
40
not in any manner force, compel or oblige his employees to purchase merchandise, 
1 
commodities or other property from the employer or from any other person or otherwise 
2 
make use of any store or services of such employer or any other person.  
3 
ART. 96.  Wage Deduction. - No employer, in his own behalf or in behalf of any 
4 
person, shall make any deduction from the wages of his employees except:  
5 
(a) In cases where the worker is insured with his consent by the employer, and the 
6 
deduction is to recompense the employer for the amount paid by him as premium on the 
7 
insurance;  
8 
(b) For union dues, in cases where the right of the worker or his union to check 
9 
off has been recognized by the employer or authorized in writing by the individual 
10 
worker concerned; and  
11 
(c) In cases where the employer is authorized by law or regulations issued by the 
12 
Secretary of Labor and Employment. 
13 
ART. 97.  Deposits for Loss or Damage. - No employer shall require his worker 
14 
to make deposits from which deduction shall be made, for the reimbursement of loss of or 
15 
damage to tools, materials or equipment supplied by the employer, except when the 
16 
employer is engaged in such trades, occupations or business where the practice of making 
17 
deductions or requiring deposits is a recognized one, or is necessary or desirable as 
18 
determined by the Secretary of Labor and Employment in appropriate rules and 
19 
regulations.  
20 
ART. 98. Limitations. - No deduction from the deposits of an employee for the 
21 
actual amount of the loss or damage shall be made unless the employee has been heard 
22 
thereon, and his responsibility has been clearly shown.  
23 


 
41
ART. 99. Withholding of Wages and Kickbacks Prohibited. - It shall be 
1 
unlawful for any person, directly or indirectly, to withhold any amount from the wages of 
2 
a worker or induce him to give up any part of his wages by force, stealth, intimidation, 
3 
threat or by any other means whatsoever without the worker's consent.  
 
  
4 
ART. 100.  Deduction to Ensure Employment. - It shall be unlawful to make any 
5 
deduction from the wages of any employee for the benefit of the employer or his 
6 
representative or intermediary as consideration of a promise of employment or retention 
7 
in employment.  
8 
ART. 101.  Retaliatory Measures. - It shall be unlawful for an employer to refuse 
9 
to pay or reduce the wages and benefits, discharge or in any manner discriminate against 
10 
any employee who has filed any complaint or instituted any proceeding under this Title 
11 
or has testified or is about to testify in such proceedings.   
12 
ART. 102.  False Reporting. - It shall be unlawful for any person to make any 
13 
statement, report or record filed or kept pursuant to the provisions of this Code knowing 
14 
such statement, report or record to be false in any material respect. 
15 
 
Title II - WAGES 
 
Chapter V 
WAGE STUDIES, WAGE AGREEMENTS 
AND WAGE DETERMINATION 
 
 
ART. 103.  Creation of the National   Wages   and Productivity Commission.  – 
16 
There is hereby created a National Wages and Productivity Commission, hereinafter  
17 
referred  to  as   the   Commission,  which shall  be  attached  to the  Department  of  
18 
Labor  and Employment for policy and program coordination. The Commission shall be 
19 
composed of three (3) representatives each from the government, the workers' and the 
20 


 
42
employers' sectors. The Secretary of Labor and Employment   and the Director-General 
1 
of   the National Economic and Development Authority (NEDA) shall serve as the ex-
2 
officio Chairman and ex-officio Vice-Chairman respectively.  The  three (3) 
3 
representatives each from workers  and employers sectors  shall be appointed  by the 
4 
President of the Philippines upon recommendation of  the  Secretary  of  Labor  and 
5 
Employment  on the basis of the list of  nominees   submitted   by  the  workers and  
6 
employers  sectors,  respectively,  and   shall  serve for  a term  of  six (6 )  years. They 
7 
shall receive a per diem of not less than Five Hundred Pesos (P500.00) for each meeting 
8 
actually attended, exclusive of actual, ordinary and necessary travel and representation 
9 
expenses.  
10 
            The Commission shall be assisted by a secretariat to be headed by an Executive 
11 
Director and two (2) Deputy Directors, who shall be appointed by the President of the 
12 
Philippines, upon the recommendation of the Secretary of Labor and Employment. The 
13 
executive director shall have the same rank, salary, benefits and other emoluments as  
14 
that of a department  assistant secretary, while the deputy directors  shall have the same  
15 
rank, salary,  benefits and  other  emoluments as that of a bureau director. The members 
16 
of the Commission representing  labor and  management shall have the same  rank, 
17 
emoluments, allowances  and other  benefits as those prescribed  by law  for labor and  
18 
management representatives  in  the Employees'  Protection and Rehabilitation  
19 
Commission.   
20 
ART.  104. Powers and Functions of the Commission. - The Commission shall 
21 
have the following powers and functions:  
22 
(a) To act as the national consultative and advisory body to the President of the 
23 
Philippines and Congress on matters relating to wages, incomes and productivity;  
24 


 
43
(b) To formulate policies and guidelines on wages, incomes and productivity 
1 
improvement at the enterprise, industry and national levels;  
2 
(c) To prescribe rules and guidelines for the determination of appropriate 
3 
minimum wage and productivity measures at the regional, provincial or industry levels;  
4 
(d) To review regional wage levels set by the Regional Tripartite Wages and 
5 
Productivity Boards to determine if these are in accordance with prescribed guidelines 
6 
and national development plans;  
7 
(e) To undertake studies, researches and surveys necessary for the attainment of 
8 
its functions and objectives, and to collect and compile data and periodically disseminate 
9 
information on wages and productivity and other related information, including, but not 
10 
limited to, employment, cost-of-living, labor costs, investments and returns;  
11 
(f) To review plans and programs of the Regional Tripartite Wages and 
12 
Productivity Boards to determine whether these are consistent with national development 
13 
plans;  
14 
(g) To exercise technical and administrative supervision over the Regional 
15 
Tripartite Wages and Productivity Boards;  
16 
(h) To call, from time to time, a national tripartite conference of representatives of 
17 
government, workers, and employers for the consideration of measures to promote wage 
18 
rationalization and productivity; and  
19 
(i) To exercise such powers and functions as may be necessary to implement this 
20 
Act.  
21 
ART. 105. Creation of Regional Tripartite Wages and Productivity Boards. - 
22 
There is hereby created Regional Tripartite Wages and Productivity Boards, hereinafter 
23 
referred to as Regional Boards in all regions, including autonomous regions as may be 
24 


 
44
established by law. The Commission shall determine the offices/headquarters of the 
1 
respective Regional Boards.  
2 
The Regional Boards shall have the following powers and functions in their 
3 
respective territorial jurisdiction:  
4 
(a) To develop plans, programs and projects relative to wages, incomes and 
5 
productivity improvement for their respective regions;  
6 
(b) To determine and fix minimum wage rates applicable in their respective 
7 
regions, provinces or industries therein and to issue the corresponding wage orders, 
8 
subject to guidelines issued by the Commission;  
9 
(c) To undertake studies, researches, and surveys necessary for the attainment of 
10 
their functions, objectives and programs and to collect and compile data on wages, 
11 
incomes, productivity and other related information and periodically disseminate the 
12 
same;  
13 
(d) To coordinate with the other Regional Boards as may be necessary to attain 
14 
the policy and intention of this Code;  
15 
(e) To receive, process and act on applications for exemption from prescribed 
16 
wage rates as may be provided by law or any wage order; and  
17 
(f) To exercise such other powers and functions as may be necessary to carry out 
18 
their mandate under this Code.  
19 
Implementation of the plans, programs and projects of the Regional Boards 
20 
referred to in the second paragraph, letter (a) of this Article, shall be through the 
21 
respective regional offices of the Department of Labor and Employment within their 
22 
territorial jurisdiction; Provided, however, That the Regional Boards shall have technical 
23 


 
45
supervision over the regional office of the DOLE with respect to the implementation of 
1 
said plans, programs and projects.  
2 
Each Regional Board shall be composed of the Regional Director of the 
3 
Department of Labor and Employment as Chairman, the Regional Directors of the 
4 
National Economic and Development Authority and Department of Trade and Industry as 
5 
Vice-Chairmen and three (3) members each from workers and employers sectors who 
6 
shall be appointed by the President of the Philippines, upon recommendation of the 
7 
Secretary of Labor and Employment, to be made on the basis of the list of nominees 
8 
submitted by the workers and employers sectors, respectively, and who shall serve for a 
9 
term of three (3) years. Each Regional Board to be headed by its Chairman shall be 
10 
assisted by a secretariat. The members of the Board shall receive a per diem of not less 
11 
than Five Hundred Pesos (P500.00) for each meeting actually attended, exclusive of 
12 
actual, ordinary and necessary travel and representation expenses.   
13 
ART. 106. Wage Order. - Whenever conditions in the region  so  warrant,  the 
14 
Regional  Board at its own initiative or at the instance of the workers by a petition shall  
15 
investigate and study  all   pertinent facts;  and based on the standards and criteria  herein 
16 
prescribed,  shall proceed to determine whether a  wage order  should be issued. Any 
17 
such minimum wage order shall take effect after fifteen   (15)   days from its complete 
18 
publication in at least one (1) newspaper of general circulation in the region.  
19 
In the performance of its wage-determining functions,   the Regional Board shall 
20 
conduct public hearings/consultations, giving notices to employees’ and employers' 
21 
groups, provincial, city and municipal officials and other interested parties.  Any party 
22 
aggrieved by the Wage Order issued by the Regional   Board   may   appeal such order to 
23 
the Commission within ten (10) calendar days from the publication of such order.  It shall 
24 


 
46
be mandatory for the Commission to decide such appeal within sixty (60) calendar days 
1 
from the filing thereof.   
 
2 
The  filing of the appeal does not stay the  order unless the person  appealing  
3 
such order  shall  file with  the  Commission  an undertaking  with a surety  or sureties  
4 
satisfactory  to  the   Commission  for   the payment to the employees affected by the  
5 
order  of the corresponding  increase, in the event  such  order  is affirmed.  
6 
ART. 107. Standards /Criteria for Minimum Wage Fixing. - The  regional 
7 
minimum wages to be established by the  Regional  Board shall  be as  nearly adequate as 
8 
is economically feasible to  maintain   the  minimum standards of living necessary for  
9 
the   health, efficiency   and  general well-being of the employees within the framework 
10 
of the national  economic and social  development  program. In the determination of such 
11 
regional minimum wages, the Regional Board shall, among other relevant factors, 
12 
consider the following:   
13 
(a)  The demand for living wages;  
14 
(b)  Wage adjustment vis-a-vis the consumer price index;   
15 
(c)  The cost of living and changes or increases therein;  
16 
(d)  The needs of workers and their families;  
 
17 
(e)  The need to induce industries to invest in the countryside;   
 
18 
(f)   Improvements in standards of living;  
 
19 
(g)   The prevailing wage levels;  
20 
(h)   Fair return of the capital invested and capacity to pay of employers;  
21 
 (i)   Effects on employment generation and family income;  
 
22 
 (j) The equitable distribution of income and wealth along the imperatives of 
23 
economic and social development; and 
 
24 


 
47
(k) Productivity 
1 
The wages prescribed in accordance with the provisions of this Title shall serve as 
2 
reference rate for wage bargaining in establishments in every region.  These wages shall 
3 
include wages varying within industries, provinces or localities if in the judgment   of the 
4 
Regional Board conditions make such local differentiation proper and necessary to 
5 
effectuate the purpose of this Title.    
6 
Any  person, company, corporation, partnership  or any   other entity engaged in 
7 
business shall file and register annually with the appropriate Regional Board, 
8 
Commission and the National Statistics Office  an itemized listing of their labor   
9 
component, specifying the names of their workers  and  employees  below   the  
10 
managerial  level,  including  learners  and  disabled/ handicapped  workers  who were   
11 
hired  under  the  terms  prescribed in the employment contracts, and their corresponding  
12 
salaries  and wages.  
13 
Where the application of any  prescribed wage increase  by virtue  of a law or 
14 
Wage order issued  by any  Regional Board  results  in distortions  of  the wage structure 
15 
within an  establishment,  the  employer and   the  union  shall  negotiate to correct the 
16 
distortions.  Any dispute arising from wage distortions shall be resolved through the 
17 
grievance procedure under their collective bargaining agreement and, if it remains 
18 
unresolved, through voluntary arbitration.  Unless otherwise agreed by the parties in 
19 
writing, such dispute shall be decided by the voluntary arbitrator   or panel of voluntary 
20 
arbitrators within   ten (10) calendar days from the time said dispute was referred to 
21 
voluntary arbitration.   
22 
In cases where there are no collective agreements or recognized labor unions, the 
23 
employers and workers shall   endeavor to correct such distortions. Any dispute  arising 
24 


 
48
therefrom shall  be  settled   through  the  National Conciliation and  Mediation   Board  
1 
and,  if  it remains unresolved after ten (10) calendar  days  of  conciliation, shall be 
2 
referred to the  appropriate branch  of  the National  Labor   Relations  Commission 
3 
(NLRC). 
4 
It shall be mandatory for the NLRC to conduct continuous hearings and decide 
5 
the dispute within twenty (20) calendar days from the time said dispute is submitted for 
6 
compulsory arbitration.  The pendency of a dispute arising from a wage distortion shall 
7 
not in any   way delay the applicability of any increase   in prescribed   wage rates 
8 
pursuant to the provisions of law or Wage Order.   
9 
As used herein, a wage distortion shall mean a situation where an increase in 
10 
prescribed wage rates results in the elimination or severe contraction of intentional 
11 
quantitative differences in wage or salary rates   between and among employee groups in 
12 
an establishment as to effectively obliterate the distinctions embodied in such wage 
13 
structure based on skills, length of service, or other logical bases of differentiation.   All 
14 
workers paid by result, including those who are paid on piecework, takay, pakyaw or task 
15 
basis, shall receive the wage rates prescribed in an Order from the Department of Labor 
16 
and Employment approving the payment-by-result plan. In the absence of such approval, 
17 
the employee shall receive not less than the legal minimum wage per eight (8) hours of 
18 
work a day, or a proportion thereof for working less than eight (8) hours.  All recognized 
19 
learnership and apprenticeship agreements shall be considered automatically modified 
20 
insofar as their wage clauses are concerned to reflect the prescribed wage rates.  
21 
ART. 108. Freedom to Bargain. - No wage order shall be construed to prevent 
22 
workers in particular firms or enterprises of industries from bargaining for higher wages 
23 
with their respective employer.  
24 


 
49
ART. 109. Prohibition against Injunction. - No preliminary or permanent 
1 
injunction or temporary restraining order may be issued by any court, tribunal or other 
2 
entity against any proceedings before the Commission or the Regional Boards.  
3 
ART. 110. Non-diminution of Benefits. - No wage order issued by any Regional 
4 
Board shall provide for wage rates lower than the statutory minimum wage rates 
5 
prescribed by Congress.  
6 
 
Title II - WAGES 
 
Chapter VI 
ADMINISTRATION AND ENFORCEMENT 
 
ART. 111. Visitorial and Enforcement Power.  -  (a) The Secretary  of Labor and 
7 
Employment or  his duly  authorized   representatives, including labor  regulation  
8 
officers,  shall  have access to employers' records  and premises at any time of the  day or 
9 
night whenever  work  is being undertaken therein,  and  the right to  copy therefrom, to 
10 
question any employee  and investigate  any fact, condition  or matter which  may  be  
11 
necessary  to  determine violations  or  which  may aid in the enforcement of this Code  
12 
and of  any  labor law,  wage  order or rules and   regulations issued pursuant thereto.   
13 
(b) In cases where the relationship of employer-employee still  exists, the 
14 
Secretary of Labor and  Employment  or his duly authorized representatives shall have 
15 
the power to issue compliance orders, after the parties are given the opportunity to 
16 
present their sides, to give effect to the labor standards provisions of this Code and other 
17 
labor legislations regardless of the amount involved  based on the findings of labor 
18 
regulation  officers or   industrial  safety engineers made in the course of inspection. The 
19 
Secretary or his duly authorized representatives shall  issue writs of execution  to   the  
20 
appropriate authority  for the enforcement of their  orders, except   in  cases where the 
21 


 
50
employer contests the  findings of   the labor   regulation  officer   and  raises   issues 
1 
supported by documentary proofs which were not considered in the course of inspection.  
2 
(c)  The  Secretary of Labor  and  Employment  may likewise  order  stoppage  of  
3 
work  or  suspension  of operations   of   any   unit   or  department   of   an establishment  
4 
when  non-compliance with  the   law  or  implementing  rules  and regulations poses  
5 
grave   and  imminent  danger  to  the health and safety of  workers  in   the   workplace.   
6 
Within  twenty-four  hours,   a hearing  shall  be conducted to determine   whether  an 
7 
order  for  the  stoppage of  work  or  suspension   of operations   shall   be lifted or not.   
8 
In  case   the  violation   is  attributable   to  the   fault  of  the employer, he  shall  pay  the 
9 
employees concerned their salaries  or wages during the period  of such  stoppage of 
10 
work or suspension of operation.  
11 
(d) It  shall be unlawful for any person or entity  to    obstruct, impede, delay  or  
12 
otherwise   render ineffective  the  visitorial and enforcement powers  or     orders of the 
13 
Secretary of Labor or his duly authorized representatives   issued  pursuant  to  the   
14 
authority granted under this article,  and no  inferior court  or entity shall issue temporary  
15 
or  permanent  injunction or restraining order or otherwise assume   jurisdiction over  any 
16 
case involving the enforcement orders  issued in  accordance with this article.  
17 
(e)  Any  government  employee  found  guilty   of violation  of,  or   abuse  of 
18 
authority, under this Article shall after appropriate administrative investigation,  be 
19 
subject to  summary  dismissal  from the service.    
20 
(f) The Secretary of Labor and Employment may,  by  appropriate   regulations  
21 
require  employers  to  keep  and   maintain   such  employment  records  as  may  be 
22 
necessary  in  aid of his  visitorial  and  enforcement powers under this Code.   
23 


 
51
ART. 112. Recovery of Wages, Simple Money Claims and Other Benefits. - 
1 
Upon complaint of any interested party, the Regional Director of the DOLE or any of the 
2 
duly authorized hearing officers of the Department is empowered, through summary 
3 
proceeding and after due notice, to hear and decide any matter involving the recovery of 
4 
wages and other monetary claims and benefits, including legal interest, owing to an 
5 
employee or person employed in domestic or household service or househelper under this 
6 
Code, arising from employer-employee relations: Provided, That such complaint does not 
7 
include a claim for reinstatement: Provided, further, That the aggregate money claims of 
8 
each employee or househelper do not exceed Fifty Thousand Pesos (P50,000).  
9 
The Regional Director or hearing officer shall decide or resolve the complaint 
10 
within thirty (30) calendar days from the date of the filing of the same. Any sum thus 
11 
recovered on behalf of any employee or househelper pursuant to this Article shall be held 
12 
in a special deposit account by, and shall be paid, on order of the Secretary of Labor and 
13 
Employment or the Regional Director directly to the employee or househelper concerned. 
14 
Any such sum not paid to the employee or househelper, because he cannot be located 
15 
after diligent and reasonable effort to locate him within a period of three (3) years, shall 
16 
be held as a special fund of the DOLE to be used exclusively for the amelioration and 
17 
benefit of workers.  
18 
Any decision or resolution of the Regional Director or hearing officer pursuant to 
19 
this provision may be appealed on the same grounds provided in Article 237 of this Code, 
20 
within five (5) calendar days from receipt of a copy of said decision or resolution, to the 
21 
National Labor Relations Commission which shall resolve the appeal within ten (10) 
22 
calendar days from the submission of the last pleading required or allowed under its 
23 
rules.  
24 


 
52
The Secretary of Labor and Employment or his duly authorized representative 
1 
may supervise the payment of unpaid wages and other monetary claims and benefits, 
2 
including legal interest, found owing to any employee or househelper under this Code. 
3 
 
Title III 
CONTENTS OF PRODUCTIVITY AND PERFORMANCE INCENTIVES AND 
GAINSHARING PROGRAM 
 
Chapter I 
POLICY AND DEFINITION 
 
**ART. 113. Policy – It is the declared policy of the state to encourage higher 
4 
levels of productivity, recognizing the complex challenges of globalization, in order that 
5 
Philippine products and services can meet global competition, maintain industrial peace 
6 
and harmony and promote  the principles of partnership and shared responsibility in the 
7 
relations between workers and employers so as to strengthen the cooperation between 
8 
labor and capital, and further recognizing the right of labor to its share in the fruits of 
9 
production and the right of business enterprises to reasonable return on investment and to 
10 
expansion and growth, and accordingly to provide corresponding incentives to both labor 
11 
and capital for undertaking voluntary programs that ensure workers with a just share in 
12 
the fruits of their labor in relation to the profit yielded to the employer as a result of 
13 
increased productivity and, thus, enhance the quality of life of the workers and 
14 
employees.  
15 
**ART. 114. Definition of Terms – As used herein: (a) “Business Enterprise” – 
16 
refers to industrial, agricultural or agro-industrial establishments engaged in the 
17 
production, manufacturing, processing, repacking or assembly of goods, including 
18 
service-oriented enterprises that are established and operated for profit or gain. 
19 


 
53
(b)“Labor-Management Committee” – refers to a negotiating body in a business 
1 
enterprise composed of the representatives of labor and management created to establish 
2 
a productivity and performance incentives and gainsharing program, and to settle disputes 
3 
arising therefrom in accordance with section 9 hereof. 
4 
(c)  “Productivity and Performance Incentives Program” - refers to a formal 
5 
agreement voluntary established by a joint labor-management committee or any existing 
6 
labor-management mechanism containing a productivity and performance improvement 
7 
program that will promote gainful employment, improve working conditions, attain and 
8 
maintain industrial peace and result in increased productivity and efficiency.  Including 
9 
cost savings, as well as a gainsharing program whereby the employer and the workers 
10 
share in the positive results of business operation brought about by improvement in 
11 
productivity.  The agreement shall be ratified by at least a majority of the employees who 
12 
have rendered at least six (6) months of continuous service.  In case the joint labor-
13 
management committee makes fundamental changes in the program, the employees shall 
14 
likewise ratify such changes. 
15 
(d)  “Gainsharing” - refers to a reward system formulated to complement the 
16 
productivity and performance incentives program designed to improve the productivity 
17 
performance of the organization.  The gainsharing system to be adopted by business 
18 
enterprises may take the form of profit sharing or other forms of gainsharing mechanisms 
19 
such as productivity bonus, performance bonus, production bonus, employee stock option 
20 
plan, among others.  
21 
 
Chapter II 
COVERAGE 
 


 
54
**ART. 115. Coverage– This title shall apply to all business enterprises with or 
1 
without existing and duly recognized collective bargaining representatives, including 
2 
government-owned and controlled corporations performing proprietary functions.  It shall 
3 
cover all employees and workers regardless of their designation or status and irrespective 
4 
of the manner and mode by which their wages are paid.  
5 
 
Chapter III 
CONTENTS OF PRODUCTIVITY AND PERFORMANCE INCENTIVES AND 
GAINSHARING PROGRAM 
 
**ART. 116. Productivity   and  Performance Incentives and  Gainsharing  
6 
Program – (a) The productivity and performance incentives program shall contain 
7 
provisions for measuring productivity, performance and efficiency improvements, the 
8 
gainsharing or reward system adopted in sharing productivity bonuses, coverage, 
9 
percentage sharing, and forms of bonus payment in accordance with the terms and 
10 
conditions that may be agreed upon by labor and management: Provided, That the 
11 
productivity bonus shall be distributed at least once a year, or such frequency as may be 
12 
determine by the parties. 
13 
(b) Productivity agreements voluntarily reached by the parties as provided in this 
14 
title may supplement existing collective bargaining agreements.   
15 
**ART. 117. Benefits and Tax Incentives. – (a) Subject to the provisions of 
16 
section 6 hereof, a business enterprise which adopts a productivity and performance 
17 
incentives and gainsharing program, duly and mutually agreed upon by parties to the 
18 
labor-management committee, shall be granted a special deduction from the gross income 
19 
equivalent to fifty percent (50%) of the total productivity bonuses given to employees 
20 


 
55
under the program over and above the total allowable ordinary and necessary business 
1 
deductions for said bonuses under the national internal revenue code, as amended. 
2 
(b) Grants for manpower training and special studies given to rank-and-file 
3 
employees pursuant to a skills development, program prepared by the labor-management 
4 
committee under the productivity and performance incentives program shall also entitle 
5 
then business enterprises to a special deduction from gross income equivalent to fifty 
6 
percent (50%) of the total grants over and above the allowable ordinary and necessary 
7 
business deduction for said grants under the national internal revenue code, as amended. 
8 
(c) Bonuses provided for under the productivity and performance incentives and 
9 
gainsharing program shall be given to the employees in a manner determined by the 
10 
parties from the start of such program over and above existing bonuses granted by the 
11 
business enterprises and by law, provided, that the said bonuses shall not be deemed as 
12 
salary increases due the employees and workers. 
13 
(d) The special deductions from the gross income provided for herein shall be 
14 
allowed starting the next taxable year after the effectivity of this title.  
15 
**ART. 118. Notification. – A business enterprises which adopts a productivity 
16 
and performance incentives and gainsharing program shall submit copies of the same to 
17 
the appropriate regional tripartite wages and productivity board for evaluation and 
18 
certification.  The board shall then forward the certifiable productivity incentives 
19 
program of business enterprises to the bureau of internal revenue for record purposes.  
20 
**ART. 119. Non-diminution of Benefits. – Nothing in this title shall be 
21 
construed to diminish or reduce any benefits and other privileges enjoyed by the workers 
22 
under existing laws, decrees, executive orders, company policy or practice, or any 
23 
agreement or contract between the employer and employees.  
24 


 
56
 
Chapter IV 
FORMATION OF LABOR-MANAGEMENT COMMITTEE AND DISPUTES 
AND GRIEVANCES 
 
**ART. 120. Labor Management Committee. – (a) A business enterprise or its 
1 
employees, through their authorized representative, may initiate the formation of a labor-
2 
management committee or any labor-management mechanism that shall be composed of 
3 
representatives from the management and from the rank-and-file employees which shall 
4 
establish and implement a productivity and performance incentives program and settle 
5 
disputes arising therefrom in accordance with Article 312 hereof: Provided, That both 
6 
management and labor shall have equal representation in said committee or mechanism: 
7 
Provided, further, That at the request of any party to the negotiation, the national wages 
8 
and productivity boards of the department of labor and employment shall provide the 
9 
necessary studies, technical information and assistance, and expert advice to enable the 
10 
parties to conclude productivity agreements.  In case there is already an existing labor 
11 
mechanism in the enterprise, such mechanism may suffice; Provided, That it includes as 
12 
one of its objectives the development and implementation of a productivity and 
13 
performance incentives and gainsharing program. 
14 
(b) In business enterprises with duly recognized collective bargaining 
15 
representatives, the representatives of labor shall be those designated by the collective 
16 
bargaining agent of the bargaining unit. 
17 
(c) In business enterprises without duly recognized collective bargaining 
18 
representatives, the representatives of labor shall be elected by at least a majority of all 
19 
rank-and-file employees who have rendered at least six (6) months of continuous service.  
20 


 
57
**ART. 121. Disputes and Grievances. – Whenever disputes, grievances, or 
1 
other matters arise from the interpretation of implementation of the productivity and 
2 
performance incentives program, the Labor-Management committee shall meet to resolve 
3 
the dispute within fifteen (15) days and shall suspend the effectivity of the program 
4 
pending settlement of such dispute or grievance: Povided, however, That if within the 
5 
period the dispute remains unresolved, the committee may seek the assistance of a third 
6 
party such as the National Conciliation and Mediation Board of the Department of Labor 
7 
and Employment, the Regional Tripartite Wages and Productivity Boards or a facilitator 
8 
acceptable to both parties in resolving the conflict.  The third party shall act only in an 
9 
advisory capacity for purposes of rendering interpretation and Clarification to facilitate 
10 
the adoption of a final resolution of the parties: Provided, That the business enterprises 
11 
shall not be deemed to have forfeited any tax incentives accrued prior to the date of 
12 
occurrence of such dispute or grievance, and the workers shall not be required to 
13 
reimburse the productivity bonuses already granted to them under the incentive program.   
14 
Likewise, bonuses that have already accrued before the dispute or grievance shall 
15 
be paid the workers within six (6) month from their accrual. Any dispute which remains 
16 
unresolved within thirty (30) days from the time of its submission to the labor 
17 
management committee shall be submitted voluntary arbitration in line with the pertinent 
18 
provisions of the labor code, as amended. 
19 
The productivity and performance incentives and gainsharing program shall 
20 
include the name of the voluntary arbitrator or panel of voluntary arbitrators previously 
21 
chosen and agreed upon by the parties.  
22 
**ART. 122. Penalty. - Any person who shall make any fraudulent claim under 
23 
this title, regardless of whether or not a tax benefit has been granted, shall upon convicted 
24 


 
58
be punished with imprisonment of not less than six (6) months but not more than one (1) 
1 
year or a fine of not less than Two Thousand Pesos (P6, 000.00), or both, at the discretion  
2 
of the court, without prejudice to prosecution for any other acts punishable under existing 
3 
laws.  
4 
In case of partnerships or corporations, the penalty shall be imposed upon the 
5 
officer or employee who knowingly approved, authorized or ratified the filing of the 
6 
fraudulent claim, and other persons responsible therefore.  
7 
  
Title IV - WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
 
Chapter I 
EMPLOYMENT OF WOMEN 
 
 
ART. 123. Night Work Prohibition. - No woman, regardless of age, shall be 
8 
employed or permitted or suffered to work, with or without compensation:  
9 
(a) In any industrial undertaking or branch thereof between ten o'clock at night 
10 
and six o'clock in the morning of the following day; or 
11 
(b) In any commercial or non-industrial undertaking or branch thereof, other than 
12 
agricultural, between midnight and six o'clock in the morning of the following day; or  
13 
(c) In any agricultural undertaking at night time unless she is given a period of 
14 
rest of not less than nine (9) consecutive hours.  
15 
ART. 124. Exceptions. -  The prohibitions prescribed by the preceding Article 
16 
shall not apply in any of the following cases:  
17 
(a)  In cases of actual or impending emergencies caused by serious  accident, fire, 
18 
flood, typhoon, earthquake, epidemic or other disasters or calamity, to prevent loss of life 
19 
or property, or in cases of force majeure or imminent danger to public safety;   
20 


 
59
(b)   In cases of urgent work to be  performed  on  machineries,  equipment   or  
1 
installation, to avoid serious  loss  which   the  employer  would  otherwise suffer;  
2 
(c)  Where the work is necessary to prevent serious loss of perishable goods;  
3 
(d) Where the woman employee holds a responsible position of managerial or 
4 
technical nature, or where the woman employee has been engaged to provide health and 
5 
welfare service;  
6 
(e)  Where the women employees are immediate members of the family operating 
7 
the establishment or undertaking; and      
8 
(f)  Under other analogous cases exempted by the Secretary of Labor and 
9 
Employment in   appropriate regulations.   
10 
ART. 125. Facilities for Women. - The Secretary of Labor and Employment shall 
11 
establish standards that will insure the safety and health of women employees. In 
12 
appropriate cases, he shall by regulations require any employer to:  
13 
(a) Provide seats proper for women and permit them to use such seats when they 
14 
are free from work and during working hours, provided they can perform their duties in 
15 
this position without detriment to efficiency;  
16 
(b) To establish separate toilet rooms and lavatories for men and women and 
17 
provide at least a dressing room for women;  
18 
(c)To establish a nursery in a workplace for the benefit of the women employees 
19 
therein; and  
20 
(d) To determine appropriate minimum age and other standards for retirement or 
21 
termination in special occupations such as those of flight attendants and the like.  
22 
ART. 126.  Maternity Leave Benefits. - **(a) Every employer shall grant to any 
23 
pregnant woman employee, whether married or not and regardless of her employment 
24 


 
60
status, maternity leave of sixty (60) days for normal delivery and seventy-eight (78) days 
1 
in case of caesarean delivery. The employer may require from any woman employee 
2 
applying for maternity leave the production of a medical certificate stating that delivery 
3 
will probably take place within two weeks. 
4 
(b) The maternity leave shall be extended without pay on account of illness 
5 
medically certified to arise out of the pregnancy, delivery, abortion or miscarriage, which 
6 
renders the woman unfit for work, unless she has earned unused leave credits from which 
7 
such extended leave may be charged.  
8 
**(c) The maternity leave provided in this Article shall be paid by the employer 
9 
only for the first four deliveries or miscarriages by a woman employee.  
10 
ART.  127.  Family    Planning   Services; Incentives   for Family Planning. –   
11 
(a) Establishments which are required by law to maintain a clinic or infirmary shall 
12 
provide free family planning services to their employees who shall include, but not 
13 
limited to, the application or use of contraceptive pills and intra-uterine devices.  
14 
(b) In coordination with other agencies of the government engaged in the 
15 
promotion of family planning, the DOLE shall develop and prescribe incentive bonus 
16 
schemes to encourage family planning among female workers in any establishment or 
17 
enterprise.  
18 
ART. 128. Discrimination Prohibited. - It shall be unlawful for any employer to 
19 
discriminate against any woman employee with respect to terms and conditions of 
20 
employment solely on account of her sex.  
21 
 
The following are acts of discrimination: 
22 
**(a)  Giving preference to a male applicant over a female applicant in the hiring 
23 
process, whether through notices, announcements or advertisements for employment or 
24 


 
61
apprenticeship or in the actual recruitment, hiring or employment of workers where the 
1 
particular job can be equally handled by a woman;  
2 
(b) Payment of a lesser compensation, including wage, salary or other form of 
3 
remuneration and fringe benefits, to a female employee as against a male employee, for 
4 
work of equal value;  
5 
(c) Favoring a male employee over a female employee with respect to promotion, 
6 
assignment, training opportunities, study and scholarship grant  solely on account of their 
7 
sexes; and 
8 
**(d) Favoring a male employee over a female employee with respect to dismissal 
9 
of personnel or the application of any retrenchment policy of the employer solely on 
10 
account of their sexes. 
11 
Criminal liability for the willful commission of any unlawful act as provided in 
12 
this article or any violation of the rules and regulations issued pursuant to Section 2 of 
13 
R.A. No. 6727  shall be penalized as provided in Articles 306 and 307 of this Code: 
14 
Provided, That the institution of any criminal action under this provision shall not bar the 
15 
aggrieved employee from filing an entirely separate and distinct action for money claims, 
16 
which may include claims for damages and other affirmative reliefs. The actions hereby 
17 
authorized shall proceed independently of each other.  
18 
ART. 129.  Stipulation against Marriage. - It shall be unlawful for an employer 
19 
to require as a condition of employment or continuation of employment that a woman 
20 
employee shall not get married, or to stipulate expressly or tacitly that upon getting 
21 
married a woman employee shall be deemed resigned or separated or to actually dismiss, 
22 
discharge, discriminate or otherwise prejudice a woman employee merely by reason of 
23 
her marriage.  
24 


 
62
ART. 130.  Prohibited Acts. -  It shall be unlawful for any employer:  
1 
(a) To deny any woman employee the benefits provided for in this Chapter or to 
2 
discharge any woman employed by him for the purpose of preventing her from enjoying 
3 
any of the benefits provided under this Code;  
4 
(b) To discharge such woman on account of her pregnancy, or while on leave or 
5 
in confinement due to her pregnancy;  
6 
(c) To discharge or refuse the admission of such woman upon returning to her 
7 
work for fear that she may again be pregnant; or  
8 
**(d) To deny any woman the benefits of employment or other statutory benefits 
9 
under our laws by reason of her sex.   
10 
ART.  131. Classification of Certain Women Workers. - Any woman who is 
11 
permitted or suffered to work with or without compensation in any night club, cocktail 
12 
lounge, massage clinic, bar or similar establishment, under the effective control or 
13 
supervision of the employer for a substantial period of time as determined by the 
14 
Secretary of Labor and Employment, shall be considered as an employee of such 
15 
establishment for purposes of labor and social legislation. 
16 
 
Title III - WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
 
***Chapter II 
EMPLOYMENT OF MINORS 
 
 
ART.  132.  Minimum Employable Age. - (a) Children below fifteen (15) years  
17 
of age shall not be employed, except: 
18 


 
63
(1)  When a child works directly under the sole responsibility of his/her parents or 
1 
legal guardian and where only members of his/her family are employed, Provided, 
2 
however, That  his/her   employment  neither  endangers  his/her  life,  safety,  health  and  
3 
_______________________________________________________________________ 
*** The provisions of Chapter II (Articles 129-141), approved and reported out by the 
Committee on Labor and Employment during the 12th Congress, are already embodied in 
R.A. No. 923 (“Special Protection of Children against Child Abuse, Exploitation and 
Discrimination Act”), which was made into law last 28 July 2003.  
 
morals, nor impairs his/her normal development; Provided, further, That the parent or 
4 
legal guardian shall provide the said child with the prescribed primary and/or secondary 
5 
education; or   
6 
(2) Where a child’s employment or participation in public entertainment or 
7 
information through cinema, theater, radio television or other forms of media is essential; 
8 
Provided, That the employment contract is concluded by the child's parents or legal 
9 
guardian, with the express agreement of the child concerned, if possible, and the approval 
10 
of the Department of Labor and Employment; Provided, further, That the following 
11 
requirements in all instances are strictly complied with: 
12 
(a) The employer shall ensure the protection, health, safety, morals and 
13 
normal development of the child; 
14 
(b) The employer shall institute measures to prevent the child's 
15 
exploitation or discrimination, taking into account the system and level of 
16 
remuneration, and the duration and arrangement of working time; and   
17 
(c) The employer shall formulate and implement, subject to the approval 
18 
and supervision of competent authorities, a continuous program for training and 
19 
skills acquisition of the child. 
20 


 
64
In the above exceptional cases where any such child may be employed, the 
1 
employer shall first secure, before engaging such child, a work permit from the 
2 
Department of Labor and Employment which shall ensure observance of the above 
3 
requirements.    
4 
For purposes of this Article, the term “child” shall apply to all persons under 
5 
eighteen (18) years of age.  
6 
ART. 133. Hours of Work of a Working Child. -  Under the exceptions   
7 
provided   in Art. 132 of this Act -             
8 
            (1)   A child below fifteen (15) years of age may be allowed to work for not more 
9 
than twenty (20) hours a week: Provided, That the work shall not be more than four (4) 
10 
hours at any given day, with sufficient time to rest; 
11 
            (2)    A  child  at  least  fifteen  (15)  years  of  age  but  below eighteen (18) shall 
12 
not be allowed to work for more than eight (8)  hours  a  day, with sufficient time to rest 
13 
and in no case beyond  forty (40) hours a week; 
14 
(3)   No child   below   fifteen (15)   years   of   age   shall   be allowed to work 
15 
between eight o’clock in the evening and six o’clock in the morning of the following day 
16 
and no child fifteen (15) years of age and above shall be allowed to work between ten 
17 
o’clock in the evening and six o’clock in the morning of the following day.  
18 
ART. 134. Ownership, Usage and Administration of the Working Child’s 
19 
Income. – The wages, salaries, earnings and other income of the working child shall 
20 
belong to him/her in ownership and shall be set aside primarily for his/her support, 
21 
education or skills acquisition and secondarily to the collective needs of the family: 
22 
Provided, That not more than twenty percent (20%) of the child’s income may be used 
23 
for the collective needs of the family.  
24 


 
65
The income of the working child and/or the property acquired through the work of 
1 
the child shall be administered by both parents. In the absence or incapacity of either of 
2 
the parents, the other parent shall administer the same. In case both parents are absent or 
3 
incapacitated, the order of preference on parental authority as provided for under the 
4 
Family Code shall apply.  
5 
             
ART. 135. Trust Fund to Preserve Part of the Working Child’s Income. - The 
6 
parent or legal guardian of a working child below eighteen (18) years of age shall set up a 
7 
trust fund for at least thirty percent (30%) of the earnings of the child whose wages and 
8 
salaries from work and other income amount to at least Two Hundred Thousand Pesos 
9 
(P200, 000.00) annually, for which he/she shall render a semi-annual accounting of the 
10 
fund to the Department of Labor and Employment, in compliance with the provisions of 
11 
this Act.  The child shall have full control over the trust fund upon reaching the age of 
12 
majority. 
13 
ART. 136.  Prohibition Against Worst Forms of Child Labor - No child shall be 
14 
engaged in the worst forms of child labor. The phrase “worst forms of child labor” shall 
15 
refer to any of the following: 
16 
(1)   All forms of slavery, as defined under the “Anti-trafficking in Persons Act of 
17 
2003”,  or practices similar to slavery such as the sale and trafficking of children, debt 
18 
bondage and serfdom and forced or compulsory labor, including  recruitment of children 
19 
for use in armed conflict;   or      
20 
(2) 
 The use, procuring, offering or exposing  of a child for prostitution, for 
21 
the production of pornography or for pornographic performances; or 
22 


 
66
(3) 
 The   use, procuring   or    offering    of  a  child  for  illegal or illicit 
1 
activities, including the production and trafficking of dangerous drugs and volatile 
2 
substances prohibited under existing laws;  
3 
(4)  Work  which,  by  its  nature or the circumstances in which it is carried out, is  
4 
Hazardous or likely to be harmful to the health, safety or morals of children, such that it:             
5 
            (a)    Debases, degrades or demeans the intrinsic worth and dignity of a 
6 
child as a   human being; or 
7 
 
            (b)   Exposes the child to physical, emotional or sexual abuse, or is found 
8 
to be   highly stressful psychologically or may prejudice morals; or 
9 
                        (c)     Is performed underground, underwater or at dangerous heights; or 
10 
            (d)     Involves   the   use   of   dangerous machinery, equipment   and tools 
11 
such    as power-driven or explosive power-actuated tools; or 
12 
                        (e)     Exposes    the   child   to   physical   danger such as, but not limited 
13 
to the dangerous feats of balancing, physical strength or contortion, or which 
14 
requires the manual transport of heavy loads; or 
15 
 
            (f)   Is performed in an unhealthy environment exposing the child to 
16 
hazardous working conditions, elements, substances, co-agents or processes 
17 
involving  ionizing radiation, fire, flammable substances, noxious components 
18 
and the like, or to extreme temperatures, noise levels, or vibrations; or 
19 
                        (g)     Is performed under particularly difficult conditions; or  
20 
                        (h)     Exposes the child to biological agents such as bacteria, fungi, 
21 
viruses, protozoan, nematodes and other parasites; or 
22 
           (i)      Involves    the   manufacture    or   handling    of   explosives    and    
23 
other pyrotechnic products. 
24 


 
67
ART. 137.  Access to Education and Training for Working Children – ( a) No 
1 
child shall be deprived of formal or non-formal education. In all cases of employment 
2 
allowed in this Act, the employer shall provide a working child with access to at least 
3 
primary and secondary education. 
4 
(b) To ensure and guarantee the access of the working child to education and 
5 
training, the DepEd shall:  
6 
(1) Formulate, promulgate, and implement relevant and effective course 
7 
designs and educational programs;  
8 
(2) Conduct the necessary training for the implementation of the 
9 
appropriate curriculum for the purpose;  
10 
(3) Ensure the availability of the needed educational facilities and 
11 
materials; and  
12 
(4) Conduct continuing research and development program for the 
13 
necessary and relevant alternative education of the working child. 
14 
c)   The   DepEd   shall    promulgate  a  course  design   under    its    non-formal 
15 
education  program  aimed  at  promoting the intellectual, moral and vocational efficiency 
16 
of   working  children  who  have  not  undergone  or  finished  elementary  or  secondary 
17 
education.  Such course design shall integrate the learning process deemed most effective 
18 
under given circumstances. 
19 
ART. 138. Prohibition on the Employment of Children in Certain Advertisements.  
20 
No child shall be employed as a model in any advertisement directly or indirectly 
21 
promoting alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling 
22 
or any form of or violence. 
23 


 
68
ART. 139. Penalties – (a) Any employer who violates Articles 132, 133 and 138 
1 
of this Act shall be penalized by imprisonment of six (6) months and one (1) day to six 
2 
(6) years or a fine of not less than Fifty Thousand Pesos (P50,000.00) but not more than 
3 
Three Hundred Thousand Pesos (P300,000.00) or both at the discretion of the court.   
4 
(b)  Any person who violates the provision of Article 136 of this Act  or the 
5 
employer of the subcontractor who employs, or the one who facilitates the employment 
6 
of a child in hazardous work, shall suffer the penalty of  a fine of not less than One 
7 
Hundred   Thousand   Pesos   (P100,000.00)   but   not  more  than  One  Million  Pesos 
8 
(P1, 000,000.00), or imprisonment of not less than twelve (12) years  and one (1) day to 
9 
twenty (20) years, or both such fine and imprisonment at the discretion of the court. 
10 
(c)  Any person who violates  Article 136-(1) and 136-(2) shall  be prosecuted  
11 
and penalized in accordance with the penalty provided for by R.A. 9208, otherwise 
12 
known as the “Anti-trafficking in Persons Act of 2003”: Provided, That such penalty 
13 
shall be imposed in its maximum period. 
14 
 (d)  Any person who violates Article 136- (3) shall be prosecuted and penalized 
15 
in accordance with R.A. 9165, otherwise known as the “Comprehensive Dangerous Act 
16 
of 2002”: Provided, That such penalty shall be imposed in its maximum period. 
17 
 (e) If a corporation commits any of the violations aforecited, the board of 
18 
directors/trustees and officers, which include the president, treasurer and secretary of the 
19 
said corporation who participated in or knowingly allowed the violation, shall be 
20 
penalized accordingly as provided for under this section. 
21 
 (f)  Parents, biological or by legal fiction, and legal guardians found to be 
22 
violating Articles 132, 133, 134 and 135 of this Act shall pay a fine of not less than Ten 
23 
Thousand Pesos (P10, 000.00) but not more than One Hundred Thousand Pesos (P100, 
24 


 
69
000.00), or be required to render community service for not less than thirty (30) days but 
1 
not more than one (1) year, or both such fine and community service at the discretion of 
2 
the court: Provided, That the maximum length of community service shall be imposed on 
3 
parents or legal guardians who have repeatedly violated the provisions of this Act three 
4 
(3) times: Provided, further, That in addition to the community service, the penalty of 
5 
imprisonment of thirty (30) days but not more than one (1) year or both at the discretion 
6 
of the court, shall be imposed  on the parents or legal guardians who have repeatedly 
7 
violated the provisions of this Act more than three (3) times.  
8 
      (g)  The Secretary of Labor and Employment or his/her duly authorized 
9 
representative may, after due notice and hearing, order the closure of any business firm or 
10 
establishment found to have violated any of the provisions of this Act more than three (3) 
11 
times. He/she shall likewise order the immediate closure of such firm or establishment if: 
12 
               (1)  The violation of any provision of this act has resulted in the death, 
13 
insanity or serious physical injury of a child employed in such establishment; or  
14 
(2)  Such firm or establishment is engaged or employed in prostitution or 
15 
in obscene or lewd shows.  
16 
In case of such closure, the employer shall be required to pay his/her employee(s) 
17 
their separation pay and other monetary benefits provided for by law.  
18 
ART. 140. Trust Fund from Fines and Penalties - The fine imposed by the court 
19 
shall be treated as a trust fund, administered by the Department of Labor and 
20 
Employment and disbursed exclusively for the needs, including the costs on rehabilitation 
21 
and reintegration into mainstream society of the working children who are victims of the 
22 
violations of this Act, and for the programs and projects that will prevent acts of child 
23 
labor.  
24 


 
70
ART. 141. Who May File a Complaint – Complaints on cases of unlawful acts 
1 
committed against children as enumerated herein may be filed by the following: 
2 
a)  Offended party;  
3 
b)  Parents or guardians;  
4 
c)  Ascendant or collateral relative within the third degree of consanguinity; 
5 
            d)  Officer, social worker or representative of   a licensed child-caring institution; 
6 
e) Officer or social worker of the Department of Social Welfare and 
7 
Development; 
8 
f)   Barangay chairman of the place where the violation occurred, where the child 
9 
is residing or employed; or 
10 
g)  At least three (3) concerned, responsible citizens of the place where the 
11 
violation occurred. 
12 
ART. 142. Jurisdiction - The family courts shall have original jurisdiction over 
13 
all cases involving offenses punishable under this act: Provided, That in cities or 
14 
provinces where there are no family courts yet, the regional trial courts and the municipal 
15 
trial courts shall have concurrent jurisdiction depending on the penalties prescribed for 
16 
the offense charged. 
17 
The preliminary investigation of cases filed under this Act shall be terminated 
18 
within a period of thirty (30) days from the date of filing.        
19 
If the preliminary investigation establishes a prima facie case, then the   
20 
corresponding   information shall be filed in court within forty-eight (48) hours from the 
21 
termination of the investigation.  
22 


 
71
            Trial of cases under this Act shall be terminated by the court not later than ninety 
1 
(90) days from the date of filing of information. Decision on said cases shall be rendered 
2 
within a period of fifteen (15) days from the date of the submission of the case. 
3 
ART. 143. Exemptions from Filing Fees. – When the victim of child labor 
4 
institutes a separate civil action for the recovery of civil damages, he/she shall be exempt 
5 
from payment of filing fees.  
6 
ART. 144.  Access to Immediate Legal, Medical and Psycho-social Services – 
7 
The working child shall have the right to free legal, medical and psycho-social services to 
8 
be provided by the State. 
9 
   
ART. 145. Prohibition against Child Discrimination. - No employer shall 
10 
discriminate against any person in respect to terms and conditions of employment on 
11 
account of his age.  
12 
 
Title III - WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
 
Chapter III 
EMPLOYMENT OF HOUSEHELPERS 
 
 
**ART. 146. Coverage. - This Chapter shall apply to all persons rendering 
13 
services in households for compensation.  
14 
"Domestic or household service" shall mean services in the employer's home 
15 
which is usually necessary or desirable for the maintenance and enjoyment thereof and 
16 
includes ministering to the personal comfort and convenience of the members of the 
17 
employer's household, including services of family drivers.  
18 


 
72
**ART. 147.  Contract of Domestic Service. - The original contract of Domestic 
1 
service shall not last for more than two (2) years but it may be renewed for such periods 
2 
as may be agreed upon by the parties.  
3 
**ART. 148.  Minimum Wage. – (a) Househelpers shall be paid the following 
4 
minimum wage rates: 
5 
(1) One Thousand Two Hundred Pesos (P1, 200.00) a month for househelpers in 
6 
the National Capital Region; 
7 
(2) One Thousand Pesos (P1, 000.00) a month for those in other chartered cities 
8 
and  first-class municipalities; and  
9 
(3) Nine Hundred Pesos (P900.00) a month for those in other municipalities. 
10 
Provided, That the employers shall review the employment contracts of their 
11 
househelpers every three (3) years with the end in view of improving the terms and 
12 
conditions thereof. 
13 
**ART. 149. Minimum Cash Wage. - The minimum wage rates prescribed under 
14 
this Chapter shall be the basic cash wages which shall be paid to the househelper in 
15 
addition to lodging, food and medical attendance. 
16 
**ART. 150.  Payment of Wages. -  Payment of wages shall be made directly to 
17 
the househelper in cash, at least once every two (2) weeks or twice a month. No 
18 
deductions from said wages shall be made by the employer except those provided by law. 
19 
The express written consent of the househelper shall first be secured before any 
20 
deduction from his/her wages is made.  
21 
**ART.  151.  Thirteenth (13th) Month Pay. - Revising for the purpose Guideline 
22 
No. 2 of the Revised Guidelines on the implementation of the Thirteenth Month Pay Law 
23 
(16 November 1987), all househelpers shall be entitled to a thirteenth (13th) month pay 
24 


 
73
provided in Memorandum No. 28. The said thirteenth (13th) month pay shall be paid to a 
1 
househelper not later than the 16th of December of every year.  
2 
**ART. 152. Membership in the Social Security System (SSS). -All 
3 
househelpers, regardless of age and compensation level, shall be covered by the Social 
4 
Security System (SSS) and be entitled to all the benefits provided under Republic Act 
5 
No. 1161, as amended. The employers of said househelpers shall pay for the employer’s 
6 
share of the aforementioned SSS contribution without deducting the same from the 
7 
monthly compensation of the househelpers. 
8 
For this purpose, the Social Security System (SSS) is hereby required to 
9 
implement an outreach program that will facilitate the remittance of SSS contributions by 
10 
either the homeowners or the househelpers by whatever means deemed feasible. Said 
11 
outreach program should be conceptualized and initiated within a period of one (1) year 
12 
from the date of effectivity hereof.  
13 
**ART. 153. Membership in the Philippine Health Insurance Corporation 
14 
(PHILHEALTH). - All househelpers, regardless of age and compensation levels, shall be 
15 
covered under the Philippine Health Insurance Corporation (Philhealth), and be entitled 
16 
to all the benefits provided for under the law. The employer of said househelper shall pay 
17 
for the employer’s share of the aforementioned Philhealth, without deducting the same 
18 
from the monthly compensation of the househelper.  
19 
**ART. 154. Normal Hours of Work.  - Cognizant of the peculiarities of the 
20 
relationship between the employer and the househelper, the normal hours of work of 
21 
kasambahays  shall be set at ten (10) hours per day, exclusive of one (1) hour breaks each 
22 
for breakfast, lunch and dinner. Any work done by the house helper beyond the normal 
23 


 
74
hours of work per day shall be duly compensated by the employer. Furthermore, the 
1 
house helper shall be allowed at least eight (8) hours of continuous rest period per day.  
2 
**ART. 155. Regular Working Days. -  No househelper shall render work for 
3 
more than six (6) days per week. While the specific day of the week set aside as rest day 
4 
for the house helper may be stipulated in the employment contract, the same may be 
5 
changed for another day of the week upon the mutual agreement of the employer and the 
6 
househelper as the exigencies of the household may dictate.  
7 
**ART. 156. Vacation Leaves. -  All house helpers shall be entitled to a fourteen 
8 
(14) day vacation leave with pay, in addition to the one (1) day per week designated as 
9 
the rest day. Said leave may only commence at the end of the first year of employment, 
10 
and shall not cumulate from year to year.  
11 
**ART. 157.  Maternity Benefits for Female Househelpers. – All female house 
12 
helpers shall be entitled to maternity benefits pursuant to Article 126 of is Code.  
13 
**ART. 158. Assignment to Non-Household Work. - No househelper shall be 
14 
assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary 
15 
rate lower than that provided for agricultural or non-agricultural worker as prescribed 
16 
herein. 
17 
**ART. 159.  Opportunity for Education. - If the househelper is under the age of 
18 
eighteen (18) years, the employer shall give him or her opportunity for at least 
19 
elementary education. The cost of such education shall be part of the househelper's 
20 
compensation, unless there is a stipulation to the contrary 
21 
**ART. 160. Treatment of House Helpers. - The employer shall treat the house 
22 
helper in a just and humane manner. In no case shall physical violence be used upon the 
23 
househelper.  
24 


 
75
**ART. 161.  Board, Lodging and Medical Attendance. - The employer shall 
1 
furnish the househelper free of charge suitable and sanitary living quarters as well as 
2 
adequate food and medical attendance.  
3 
**ART. 162.  Indemnity for Unjust Termination of Services. - If the period of 
4 
household service is fixed, neither the employer nor the househelper may terminate the 
5 
contract before the expiration of the term, except for a just cause. If the househelper is 
6 
unjustly dismissed, he or she shall be paid the compensation already earned plus that for 
7 
fifteen (15) days by way of indemnity. If the househelper leaves without justifiable 
8 
reason, he or she shall forfeit any unpaid salary due him or her not exceeding fifteen (15) 
9 
days.  
10 
**ART. 163. Service of Termination Notice. - If the duration of the household 
11 
service is not determined either in stipulation or by the nature of the service, the employer 
12 
or the househelper may give notice to put an end to the relationship five (5) days before 
13 
the intended termination of the service.  
14 
**ART. 164.  Employment Certification. - Upon the severance of the household 
15 
service relation, the employer shall give the house helper a written statement of the nature 
16 
and duration of the service and his or her efficiency and conduct as house helper.  
17 
**ART. 165.  Employment Records. - The employer may keep such records as he 
18 
may deem necessary to reflect the actual terms and conditions of employment of his 
19 
househelper which the latter shall authenticate by signature or thumb mark upon request 
20 
of the employer.  
21 
 
Title III - WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
 
Chapter IV 
EMPLOYMENT OF HOMEWORKERS 


 
76
 
 
ART. 166. Regulation of Industrial Homeworkers. - The employment of 
1 
industrial homeworkers and field personnel shall be regulated by the Government 
2 
through appropriate regulations issued by the Secretary of Labor to ensure the general 
3 
welfare and protection of homeworkers and field personnel and the industries employing 
4 
them.  
5 
ART. 167. Regulations of Secretary of Labor and Employment.  - The   
6 
regulations or orders to be issued pursuant to this Chapter shall be designed to assure the 
7 
minimum terms and conditions of employment applicable to the industrial home workers 
8 
and field personnel involved.   
9 
ART. 168. Homeworker’s Contractor as the Employer. - For purposes of this 
10 
Chapter, the “employer" of homeworkers shall be the homeworker's contractor who for 
11 
his account or benefit, or on behalf of any person, directly:  
12 
(1)  Delivers  any goods,  articles  or  materials  to  be processed   or fabricated  in  
13 
or about a home and  thereafter  to  be returned  or  to  be disposed  of  or  distributed   in  
14 
accordance  with  his  directions; or   
15 
(2)   Sells any goods, articles or materials for the purpose of having the same 
16 
processed or fabricated in or about a home and then rebuys them   after such   processing   
17 
or fabrication. 
18 
For the purpose of this Chapter, the homeworker’s contractor shall be solidarily 
19 
liable with any person for whom he may have engaged the services of the homeworkers.   
20 
 
BOOK FOUR 
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS 
 


 
77
Title I - MEDICAL, DENTAL AND OCCUPATIONAL SAFETY 
 
Chapter I 
MEDICAL AND DENTAL SERVICES 
 
ART. 169. First-Aid Treatment. - Every employer shall keep in his establishment 
1 
such first-aid medicines and equipment as the nature and conditions of work may require, 
2 
in accordance with such regulations as the DOLE shall prescribe. The employer shall take 
3 
steps for the training of a sufficient number of employees in first-aid treatment.  
4 
ART. 170. Emergency Medical and Dental Services. - It shall be the duty of 
5 
every employer to furnish his employees in any locality with free medical and dental 
6 
attendance and facilities consisting of:  
7 
(a) The services of a full-time registered nurse when the number of employees 
8 
exceeds fifty (50) but not more than two hundred (200) except when the employer does 
9 
not maintain hazardous work places, in which case the services of a graduate first-aider 
10 
shall be provided for the protection of the workers, where no registered nurse is available. 
11 
The Secretary of Labor and Employment shall provide by appropriate regulations the 
12 
services that shall be required where the number of employees does not exceed fifty (50) 
13 
and shall determine by appropriate order hazardous workplaces for purposes of this 
14 
Article;  
15 
b) The services of a full-time registered nurse, a part-time physician and dentist, 
16 
and an emergency clinic, when the number of employees exceeds two hundred (200) but 
17 
not more than three hundred (300) and;  
18 
(c) The services of a full-time physician, dentist and a full-time registered nurse as 
19 
well as a dental clinic, and an infirmary or emergency hospital with one bed capacity for 
20 


 
78
every one hundred (100) employees, when the number of employees exceeds three 
1 
hundred (300).  
2 
In cases of hazardous workplaces, no employer shall engage the services of a 
3 
physician or dentist who cannot stay in the premises of the establishment for at least two 
4 
(2) hours, in the case of those engaged on part-time basis, and not less than eight (8) 
5 
hours in the case of those employed on full-time basis. Where the undertaking is non-
6 
hazardous in nature, the physician and dentist may be engaged on retained basis, subject 
7 
to such regulations as the Secretary of Labor and Employment may prescribe to insure 
8 
immediate availability of medical and dental treatment and attendance in case of 
9 
emergency. 
10 
ART. 171.  When Emergency Hospital Not Required. - The requirement for an 
11 
emergency hospital or dental clinic shall not be applicable in case there is a hospital or 
12 
dental clinic which is accessible from the employer's establishment and he makes 
13 
arrangements for the reservation therein of the necessary beds and dental facilities for the 
14 
use of his employees.    
15 
ART. 172.  Health Program. - The physician engaged by an employer shall, in 
16 
addition to his duties under this Chapter, develop and implement a comprehensive 
17 
occupational health program for the benefit of the employees of his employer.  
18 
ART. 173. Qualifications of Health Personnel. - The physicians, dentists and 
19 
nurses employed by employers pursuant to this Chapter shall have the necessary training 
20 
in industrial medicine and occupational safety and health. The Secretary of Labor and 
21 
Employment, in consultation with industrial, medical and occupational safety and health 
22 
associations, shall establish the qualifications, criteria and conditions of employment of 
23 
such health personnel.  
24 


 
79
ART. 174. Assistance of Employer. - It shall be the duty of any employer to 
1 
provide all the necessary assistance to ensure the adequate and immediate medical and 
2 
dental attendance and treatment to an injured or sick employee in case of emergency. 
3 
 
Title I - MEDICAL, DENTAL AND CCUPATIONAL SAFETY 
 
Chapter II 
OCCUPATIONAL HEALTH AND SAFETY 
 
ART. 175. Safety and Health Standards. - The Secretary of Labor and 
4 
Employment shall by appropriate orders set and enforce mandatory occupational safety 
5 
and health standards to eliminate or reduce occupational safety and health hazards in all 
6 
work places and institute new and update existing programs to ensure safe and healthful 
7 
working conditions in all places of employment.  
8 
ART. 176. Research. - It shall be the responsibility of the DOLE to conduct 
9 
continuing studies and researches to develop innovative methods, techniques and 
10 
approaches for dealing with occupational safety and health problems; to discover latent 
11 
diseases by establishing causal connections between diseases and work in environmental 
12 
conditions; and to develop medical criteria which will assure insofar as practicable that 
13 
no employee will suffer impairment or diminution in health, functional capacity or life 
14 
expectancy as a result of his work and working conditions.  
15 
ART. 177. Training Programs. - The DOLE shall develop and implement 
16 
training programs to increase the number and competence of personnel in the field of 
17 
occupational safety and industrial health.  
18 
ART. 178.  Administration of Safety and Health Laws. - (a) The DOLE shall be 
19 
solely responsible for the administration and enforcement of occupational safety and 
20 


 
80
health laws, regulations and standards in all establishments and workplaces wherever 
1 
they may be located; however, chartered cities may be allowed to conduct industrial 
2 
safety inspections of establishments within their respective jurisdiction where they have 
3 
adequate facilities and competent personnel for the purpose as determined by the 
4 
Department of Labor and Employment and subject to national standards established by 
5 
the latter.  
6 
(b) The Secretary of Labor and Employment may, through appropriate 
7 
regulations, collect reasonable fees for the inspection of steam boilers, pressure vessels 
8 
and piping and electrical installations, the test and approval for safe use of materials, 
9 
equipment and other safety devices, and the approval of plans for such materials, 
10 
equipment and devices. The fees so collected shall be deposited in the national treasury to 
11 
the credit of the occupational safety and health fund and shall be expended exclusively 
12 
for the administration and enforcement of safety and other labor laws administered by the 
13 
Department of Labor and Employment.  
14 
(c) The DOLE shall be the principal agency in coordinating and monitoring the 
15 
activities of all laws to promote occupational safety and health.  The Secretary of Labor 
16 
and Employment shall issue rules and regulations necessary to implement this provision 
17 
for purposes of this title.  The term "Occupational Safety and Health" shall include any 
18 
matter that affects the safety and health of workers in all places of employment.    
19 
(d) In addition to the penalties provided for by existing laws, the DOLE may, by 
20 
appropriate regulations, prescribe administrative fines for violations of occupational 
21 
safety and health standards or regulations promulgated thereunder which in no case shall 
22 
be less than One Hundred Pesos (P100.00) nor more than Ten Thousand Pesos 
23 
(P10,000.00) a day, depending upon the gravity of the violation uncovered until the same 
24 


 
81
has been corrected by the offender.  The fines shall accrue to the State Investment 
1 
Compensation Fund and shall be managed by the Employees Compensation Commission 
2 
which shall be used to implement programs and promote research and training in 
3 
occupational safety and health.  
4 
 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter I 
POLICY AND DEFINITIONS 
 
ART. 179. Policy. - The State shall promote and develop a tax-exempt 
5 
employees’ compensation program whereby employees and their dependents, in the event 
6 
of work-connected disability or death, may promptly secure medical or related benefits 
7 
and lump-sum income benefits. It shall initiate policies and undertake programs on 
8 
rehabilitation.  
9 
ART. 180. Definition of Terms - As used in this Title, unless the context 
10 
indicates otherwise:  
11 
(a) "Code" means the Labor Code of the Philippines instituted under Presidential 
12 
Decree numbered four hundred forty-two, as amended.  
 
13 
(b) "Commission" means the Employees' Compensation Commission created 
14 
under this Title.  
15 
(c) "SSS" means the Social Security System created under Republic Act 
16 
numbered Eleven Hundred Sixty-One, as amended.  
17 
(d) "GSIS" means the Government Service Insurance System created under 
18 
Commonwealth Act Numbered One Hundred Eighty-Six, as amended.  
19 


 
82
(e) "System" means the SSS or GSIS, as the case may be.  
1 
(f) "Employer" means any person, natural or juridical, employing the services of 
2 
the employee.  
3 
(g) "Employee" means any person compulsorily covered by the GSIS under 
4 
Commonwealth Act No. 186, as amended, including members of the Armed Forces of the 
5 
Philippines, and any person employed as casual, emergency, temporary, substitute or 
6 
contractual; or any person compulsorily covered by the SSS under Republic Act No. 
7 
1161,  as amended.  
8 
(h) "Person" means any individual, partnership, firm, association, trust, 
9 
corporation or legal representative thereof. 
10 
(I)  "Dependent” (For SSS) - The dependents shall be the following: 
11 
 
 
       (1)    The legal spouse entitled by law to receive support from the member; 
12 
                   (2) The legitimate, legitimated or legally adopted, and illegitimate child who 
13 
is unmarried, not gainfully employed and has not reached twenty-one 
14 
years (21) of age, or if over twenty-one (21) years of age, he is 
15 
congenitally or while still a minor has been permanently incapacitated 
16 
and incapable of self-support, physically or mentally; and 
17 
       (3)    The parent who is receiving regular support from the member.   
18 
                   (For GSIS) - The dependents shall be the following: 
19 
       (1)    Legitimate spouse dependent for support upon the member or pensioner;  
20 
       (2) The legitimate, legitimated, legally adopted child, including the  
21 
illegitimate child, who is unmarried, not gainfully employed, and has not 
22 
reached twenty-one years of age, or if over twenty-one years of age, he 
23 


 
83
is incapacitated  and incapable of self-support due to a mental or  
1 
physical defect acquired prior to the age of twenty-one years; and  
2 
      3.      The parents dependent upon the member for support.  
3 
(j)  “Beneficiaries” (For the SSS).  -  The dependent spouse until he or she 
4 
remarries, the dependent legitimate, legitimated or legally adopted, and illegitimate 
5 
children, who shall be the primary beneficiaries of the member: Provided, That the 
6 
dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the 
7 
legitimate, legitimated or legally adopted children;  Provided, further, That in the absence  
8 
of the dependent legitimate, legitimated or legally adopted children of the member, 
9 
his/her dependent  illegitimate children shall be entitled to one hundred percent (100%) 
10 
of the benefits.  In their absence, the dependent parents shall be the secondary 
11 
beneficiaries of the member.  
12 
 (For the GSIS). – Primary beneficiaries as the legal dependent spouse until he/she 
13 
remarries and the dependent children, and secondary beneficiaries as the dependent 
14 
parents and subject to restrictions on dependent children, the legitimate dependants.  
15 
(k)  "Injury" means any harmful change in the human organism from any accident 
16 
arising out of and in the course of employment. 
17 
(l)  “Sickness” means any illness definitely accepted as an occupational disease 
18 
listed by the Commission, or any illness arising out of or aggravated by his employment.  
19 
Any illness, the etiology or cause of which is still undetermined or unknown, shall be 
20 
made compensable if acquired by the employee during his employment.  For this 
21 
purpose, the Commission is empowered to determine and approve occupational diseases 
22 
and work-related illnesses that may be considered compensable based on peculiar hazards 
23 
of employment.   
24 


 
84
(m)  "Death" means loss of life resulting from injury or sickness.  
1 
(n)  "Disability" means loss or impairment of a physical or mental function 
2 
resulting from injury or sickness.  
3 
(o)  "Compensation" means all payments made under this Title for income 
4 
benefits and medical or related benefits.  
5 
(p)   "Income benefit" means all payments made under this Title to the employee 
6 
or his dependents.  
7 
(q)  "Medical benefit" means all payments made under this Title to the providers 
8 
of medical care, rehabilitation services and hospital care.  
9 
(r)   "Related benefit" means all payments made under this Title for appliances 
10 
and supplies. 
11 
(s)  "Appliances” means crutches, artificial aids and other similar devices and 
12 
their replacement or repair except when the need for such replacement or repair arises 
13 
from the fault of the employee. 
14 
(t)   "Supplies" means medicine and other medical, dental or surgical items.  
15 
(u)   "Hospital" means any medical facility, government or private, authorized by 
16 
law, an active member of good standing of the Philippine Hospital Association and 
17 
accredited by the Commission. 
18 
(v)   "Physician" means any doctor of medicine duly licensed to practice in the 
19 
Philippines, an active member in good standing of the Philippine Medical Association 
20 
and accredited by the Commission. 
21 
(w)   "Wages" or "Salary" insofar as they refer to the computation of benefits, as 
22 
defined in Republic Act No. 1161, as amended, for SSS and Presidential Decree No. 
23 


 
85
1146, as amended, for GSIS, respectively, except that part in excess of Twelve Thousand 
1 
Pesos (P12,000.00). 
2 
(x) "Monthly salary credit" means the wage or salary base for contributions as 
3 
provided in Republic Act No. 1161, as amended, or the wages or salary. 
4 
(For SSS)  Average Monthly Salary Credit. -  The result obtained by dividing the 
5 
sum of the last sixty  (60) monthly salary credit immediately preceding the semester of 
6 
contingency by sixty (60), or the result obtained by dividing the sum of all the monthly 
7 
salary credit paid prior to the semester of contingency by the number of monthly 
8 
contributions paid in the same period, whichever is greater, Provided, that if the injury or 
9 
sickness caused the disability, it shall be deemed as  permanent disability for the purpose 
10 
of computing the average monthly salary credit. In the case of the GSIS, current daily 
11 
compensation: 
12 
(aa)  "Quarter" means a period of three (3) consecutive months ending on 
13 
the last day of March, June, September and December.  
14 
(bb)  "Semester" means a period of two consecutive quarters ending in the 
15 
quarter of death, permanent disability, injury or sickness.  
16 
(cc)  "Credited years of service". –  For a member covered prior to January  
17 
nineteen hundred eighty five (1985) minus the calendar year of coverage plus the 
18 
number of calendar years in which six (6) or more contributions have been paid 
19 
from January nineteen hundred eighty five (1985) up to the calendar year 
20 
containing the semester prior to the contingency. For a member covered in or after 
21 
January nineteen hundred eighty five (1985), the number of calendar years in 
22 
which six (6) or more contributions have been paid from the year of coverage up 
23 
to the calendar year containing the semester prior to the contingency: Provided, 
24 


 
86
That the Commission may provide for a different number of contributions in a 
1 
calendar year for it to be considered as a credited year of service. 
2 
(dd)  “Monthly Income Benefit”  means the highest of the following 
3 
amounts:   
4 
 
 
(1)  The sum of the following:   
5 
       
 
 
        (i)   three hundred pesos (P300.00);    plus 
6 
                                            (ii)  twenty per cent (20%) of the    average monthly salary   
7 
credit; plus 
8 
                                            (iii) two per cent (2%) of the average monthly salary credit 
9 
for each    credited year of service in excess of ten (10) 
10 
years; or   
11 
(2)  Forty percent (40%) of the average monthly salary credit; or   
12 
(3) One thousand pesos (P1,000).   
13 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter II 
COVERAGE AND LIABILITY 
 
**ART.  181. Compulsory Coverage. - Coverage in the State Insurance Fund 
14 
shall be compulsory upon all employers and their employees not over seventy (70) years 
15 
of age: Provided, That an employee who is over sixty (60) years of age and paying 
16 
contributions to qualify for the retirement or life insurance benefit administered by the 
17 
System shall be subject to compulsory coverage.  
18 


 
87
ART. 182. Foreign Employment. - The Commission shall ensure adequate 
1 
coverage of Filipino employees employed abroad, subject to regulations as it may 
2 
prescribe.  
3 
ART. 183. Effective Date of Coverage. - Compulsory coverage of the employer 
4 
during the effectivity of this Title shall take effect on the first day of his operation, and 
5 
that of the employee on the date of his employment.  
6 
ART. 184.  Registration. - Each employer and his employees shall register with 
7 
the System in accordance with its regulations. 
8 
ART. 185.  Limitation of Liability. - The State Insurance Fund shall be liable for 
9 
compensation to the employee or his dependents, except when the disability or death was 
10 
occasioned by the employee's intoxication, willful intention to injure or kill himself or 
11 
another, notorious negligence, or otherwise provided under this Title.  
12 
ART. 186.  Extent of Liability. – The employee or his heirs shall have the right to 
13 
avail themselves of the benefits under this Code, and to sue the employer in the regular 
14 
courts under the Civil Code for damages by reason of the employer’s negligence. The 
15 
payment of compensation under this Title shall not bar the recovery of benefits as 
16 
provided for in the Administrative Code of 1987, Republic Act No. 8282, as amended by 
17 
Republic Act No. 8291, and other laws whose benefits are administered by the System or 
18 
by other agencies of the government. 
19 
  
ART. 187.  Liability of Third Parties. - (a) When the disability or death is caused 
20 
by circumstances creating a legal liability against a third party, the disabled employee or 
21 
the dependents in case of his death shall be paid by the System under this Title. In case 
22 
benefit is paid under this Title, the System shall be subrogated to the rights of the 
23 


 
88
disabled employee or the dependents in case of his death, in accordance with the general 
1 
law.  
2 
(b) Where the System recovers from such third party damages in excess of those 
3 
paid or allowed under this Title, such excess shall be delivered to the disabled employee 
4 
or other persons entitled thereto, after deducting the cost of proceedings and expenses of 
5 
the System.     
 
 
 
6 
ART. 188. Deprivation of Benefits. - Except as otherwise provided under this 
7 
Title, no contract, regulation or device whatsoever shall operate to deprive the employee 
8 
or his dependents of any part of the income benefits and medical or related services 
9 
granted under this Title. Existing medical services being provided by the employer shall 
10 
be maintained and continued to be enjoyed by their employees.  
11 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter III 
ADMINISTRATION 
 
ART. 189.  Employees’ Compensation Commission. – (a) To initiate, rationalize, 
12 
and coordinate the policies of the employees’ compensation program, the Employees’ 
13 
Compensation Commission is hereby created to be composed of five ex-officio members, 
14 
namely: the Secretary of Labor and Employment as Chairman, the GSIS President and  
15 
General Manager, the SSS President,  the Executive Director of the Occupational Safety 
16 
and Health Center, and the Executive Director of the ECC Secretariat, and  six (6) 
17 
appointive members,  two of whom shall represent the employees,  two from the 
18 
employers, and the other two from the general public,  to be appointed by the President of 
19 
the Philippines for a term of six years. The appointive member shall have at least five 
20 


 
89
years experience in workmen’s compensation, social security or public health programs. 
1 
All vacancies shall be filled for the unexpired term only. 
2 
(b)  The Vice Chairman of the Commission shall be alternated each year between 
3 
the GSIS President and General Manager and the SSS President. The presence of six (6) 
4 
members shall constitute a quorum.  Each member shall receive a per diem of Two 
5 
Thousand Five Hundred Pesos (P2, 500.00) for every meeting that is actually attended by 
6 
him, exclusive of actual, ordinary and necessary travel and representation expenses.  In 
7 
his absence, any member may designate an official of the institution he serves on full-
8 
time basis as his representative to act in his behalf. 
9 
(c) The general conduct of the operations and management functions of the GSIS 
10 
or SSS under this Title shall be vested in its respective chief executive officers, who shall 
11 
be immediately responsible for carrying out the policies of the Commission.   
12 
ART. 190. Powers and Duties. - The Commission shall have the following 
13 
powers and duties:  
14 
(a) To assess and fix a rate of contribution from all employers;  
15 
(b) To determine the rate of contribution payable by an employer whose records 
16 
show a high frequency of work accidents or occupational diseases due to failure by the 
17 
said employer to observe adequate safety measures;  
18 
(c) To approve rules and regulations governing the processing of claims and the 
19 
settlement of disputes arising therefrom as prescribed by the System;  
20 
(d) To initiate policies and programs toward adequate occupational health and 
21 
safety and accident prevention in the working environment, rehabilitation other than 
22 
those provided for under Article 199 hereof, and other related programs and activities, 
23 
and to appropriate funds therefor;  
24 


 
90
(e) To make the necessary actuarial studies and calculations concerning the grant 
1 
of constant help and income benefits for permanent disability or death, and the 
2 
rationalization of the benefits for permanent disability and death under the Title with 
3 
benefits payable by the System for similar contingencies: Provided, That the Commission 
4 
may upgrade benefits and add new ones, subject to approval of the President; and 
5 
Provided, further, That the actuarial stability of the State Insurance Fund shall be 
6 
guaranteed: Provided, finally, That such increases in benefits shall not require any 
7 
increases in contribution, except as provided for in paragraph (b) hereof; 
8 
(f) To appoint the personnel of its staff, subject to civil service law and rules, but 
9 
exempt from WAPCO law and regulations;  
10 
(g) To adopt annually a budget of expenditures of the Commission and its staff 
11 
chargeable against the State Insurance Funds: Provided, That the SSS and GSIS shall 
12 
advance on a quarterly basis the remittances of allotment of the loading fund for this 
13 
Commissions operational expenses based on its annual budget as duly approved by the 
14 
Department of the Budget and Management; 
15 
(h) To have the power to administer oath and affirmation, and to issue subpoena 
16 
and subpoena duces tecum in connection with any question or issue arising from appealed 
17 
cases under this Title;  
18 
(i) To sue and be sued in court;  
19 
(j) To acquire property, real or personal, which may be necessary or expedient for 
20 
the attainment of the purposes of this Title;  
21 
(k) To enter into agreements or contracts for such services and aid as may be 
22 
needed for the proper, efficient and stable administration of the program; and  
23 


 
91
(l)  To perform such other acts as it may deem appropriate for the attainment of 
1 
the purposes of the Commission and proper enforcement of the provisions of this Title.   
2 
ART. 191.  Management of Funds. - All revenues collected by the System under 
3 
this Title shall be deposited, invested, administered and disbursed in the same manner 
4 
and under the same conditions, requirements and safeguards as provided by Republic Act 
5 
No. 1161, as amended, and Commonwealth Act No. 186, as amended, with regard to 
6 
such other funds as are thereunder being paid to or collected by the SSS and GSIS, 
7 
respectively: Provided, That the Commission, SSS and GSIS may disburse each year not 
8 
more than twelve per cent (12%) of the contributions and investment earnings collected 
9 
for operational expenses, including occupational health and safety programs, incidental to 
10 
the carrying out of this Title.  
11 
ART. 192. Investment of Funds. - Provisions of existing laws to the contrary 
12 
notwithstanding, all revenues as are not needed to meet current operational expenses 
13 
under this Title shall be accumulated in a fund to be known as the State Insurance Fund, 
14 
which shall be used exclusively for payment of the benefits under this Title, and no 
15 
amount thereof shall be used for any other purpose. All amounts accruing to the State 
16 
Insurance Fund, which is hereby established in the SSS and the GSIS, respectively, shall 
17 
be deposited with any authorized depository bank approved by the Commission, or 
18 
invested with due and prudent regard for the liquidity needs of the System.  
19 
ART. 193. Settlement of Claims. - The System shall have original and exclusive 
20 
jurisdiction to settle any dispute arising from this Title with respect to coverage, 
21 
entitlement to benefits, collection and payment of contributions and penalties thereon, or 
22 
any other matter related thereto, subject to appeal to the Commission, which shall decide 
23 
appealed cases within twenty (20) working days from the submission of the evidence.   
24 


 
92
ART. 194.  Review. - Decisions, orders or resolutions of the Commission may be 
1 
reviewed on certiorari by the Supreme Court only on questions of law upon petition of an 
2 
aggrieved party within ten (10) days from notice thereof.  
3 
ART. 195.  Enforcement of Decisions. – (a) Any decision, order or resolution of 
4 
the Commission shall become final and executory if no appeal is taken therefrom within 
5 
ten (10) days from notice thereof. All awards granted by the Commission in cases 
6 
appealed from decisions of the System shall be effected within fifteen (15) days from 
7 
receipt of notice.  
8 
(b) In all other cases, decisions, orders and resolutions of the Commission which 
9 
have become final and executory shall be enforced and executed in the same manner as 
10 
decisions of the Regional Trial Court, and the Commission shall have the power to issue 
11 
to the city or provincial sheriff or to the sheriff whom it may appoint such writs of 
12 
execution as may be necessary for the enforcement of such decisions, orders or 
13 
resolutions, and any person who shall fail or refuse to comply therewith shall, upon 
14 
application by the Commission, be punished by the proper court for contempt.  
15 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter IV 
CONTRIBUTIONS 
 
 
ART. 196. Employer's Contributions. – (a) Under such regulations as the System 
16 
may prescribe, beginning as of the last day of the month when an employee's compulsory 
17 
coverage takes effect and every month thereafter during his employment, his employer 
18 
shall prepare to remit to the System a contribution equivalent to one percent of his 
19 
monthly salary credit.  
20 


 
93
(b) The rate of contribution shall be reviewed periodically and, subject to the 
1 
limitations herein provided, may be revised as the experience in risk, cost of 
2 
administration, and actual or anticipated as well as unexpected losses, may require.  
3 
(c) Contributions under this Title shall be paid in their entirety by the employer 
4 
and any contract or devise for the deduction of any portion thereof from the wages or 
5 
salaries of the employees shall be null and void.  
6 
(d) When a covered employee dies, becomes disabled or is separated from 
7 
employment, his obligation to pay the monthly contribution arising from the employment 
8 
shall cease at the end of the month of contingency and during such months that he is not 
9 
receiving wages or salary.  
10 
ART. 197.  Government Guarantee. - The Republic of the Philippines guarantees 
11 
the benefits prescribed under this Title, and accepts general responsibility for the 
12 
solvency of the State Insurance Fund. In case of any deficiency, the same shall be 
13 
covered by supplemental appropriations from the national government.  
14 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter V 
MEDICAL BENEFITS 
 
ART. 198.  Medical Services. -Immediately after an employee contracts sickness 
15 
or sustains an injury, he shall be provided by the System during the subsequent period of 
16 
his disability with such medical services and appliances as the nature of his sickness or 
17 
injury and progress of his recovery may require, subject to the expense limitation 
18 
prescribed by the Commission.  
19 


 
94
ART. 199.  Liability. - The System shall have the authority to choose or order a 
1 
change of physician, hospital or rehabilitation facility for the employee, and shall not be 
2 
liable for compensation for any aggravation of the employee's injury or sickness resulting 
3 
from unauthorized changes by the employee of medical services, appliances, supplies, 
4 
hospitals, rehabilitation facilities or physicians.  
5 
ART. 200.  Attending Physician. - Any physician attending an injured or sick 
6 
employee shall comply with all the regulations of the System and submit reports in 
7 
prescribed forms at such time as may be required concerning his condition or treatment. 
8 
All medical information relevant to the particular injury or sickness shall on demand be 
9 
made available to the employee or the System. No information developed in connection 
10 
with treatment or examination for which compensation sought shall be considered as 
11 
privileged communication.  
12 
ART. 201. Refusal of Examination or Treatment. - If the employee 
13 
unreasonably refuses to submit to medical examination or treatment the System shall stop 
14 
the payment of further compensation during such time as such refusal continues. What 
15 
constitutes an unreasonable refusal shall be determined by the System which may on its 
16 
own initiative determine the necessity, character, and sufficiency of any medical services 
17 
furnished or to be furnished.  
18 
ART. 202. Fees and Other Charges. - All fees and other charges for hospital 
19 
services, medical care and appliances, including professional fees, shall not be higher 
20 
than those prevailing in wards of hospitals for similar services to injured or sick persons 
21 
in general, and shall be subject to the regulations of the Commission. Professional fees 
22 
shall only be appreciably higher than those prescribed under Republic Act number sixty-
23 


 
95
one hundred eleven, as amended, otherwise known as the “Philippine Medical Care Act 
1 
of 1969”.  
2 
ART. 203.  Rehabilitation Services. - (a) The System shall establish a continuing 
3 
program for the rehabilitation of injured and handicapped employees, who shall be 
4 
entitled to rehabilitation services, which shall consist of medical, surgical or hospital 
5 
treatment, including appliances if he has been handicapped by the injury, to help him 
6 
become physically independent.  
7 
(b) The System shall establish centers equipped and staffed to provide a balanced 
8 
program of remedial treatment, vocational assessment and preparation designed to meet 
9 
the individual needs of each handicapped employee to restore him to suitable 
10 
employment, including assistance as may be within its resources to help each rehabilitee 
11 
to develop his mental, vocational or social potential.   
12 
 
 
 
 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter VI 
DISABILITY BENEFITS 
 
ART. 204. Temporary Total Disability. – (a) Under such regulations as the 
13 
Commission may approve, any employee under this Title who sustains an injury or 
14 
contracts sickness resulting in temporary total disability shall, for each day of such 
15 
disability or fraction thereof, be paid by the System an income benefit equivalent to 
16 
ninety (90) percent of his average daily salary credit, subject to the following conditions: 
17 
the daily income benefit shall not be less than One Hundred Pesos (P100.00)  nor more 
18 
than Three Hundred Pesos  (P300.00), nor paid for a continuous period longer than two 
19 


 
96
hundred forty (240) days, except as otherwise provided for in the Rules, and the System 
1 
shall be notified of the injury or sickness. 
 
2 
(b) The payment of such income benefit shall be in accordance with the 
3 
regulations of the Commission. 
4 
ART. 205. Permanent Total Disability. –  (a) Under such rules as the 
5 
Commission may approve, any employee under this Title who contracts sickness or 
6 
sustains an injury resulting in his permanent total disability shall be paid by the System a  
7 
lump sum amount equivalent to the monthly income benefit times sixty (60) but in no 
8 
case less than Sixty Thousand Pesos  (P60,000.00) nor more than Two Hundred Forty 
9 
Thousand Pesos (P240,000.00), over and above whatever lump sum or pension benefits 
10 
he may have received under other applicable social security programs; 
11 
(b) The following disabilities shall be deemed total and permanent: 
12 
(1) Temporary total disability lasting continuously for more than two 
13 
hundred forty (240) days, except as otherwise provided for in the Rules; 
14 
(2) Complete loss of sight of both eyes; 
15 
(3)  Loss of two (2) limbs at or above the ankle or wrist;   
16 
(4) Permanent complete paralysis of two (2) limbs;   
17 
(5) Brain injury resulting in incurable imbecility or insanity; and   
 
18 
(6) Such cases as determined by the Medical Director of the System and 
19 
approved by the Commission.   
20 
ART. 206. Permanent Partial Disability. - (a) Under such regulations as the 
21 
System may approve, any employee under this Title who contracts sickness or sustains an 
22 
injury resulting in permanent partial disability shall be paid by the System a lump-sum 
23 


 
97
amount equivalent to the percentage of the permanent loss times the lump-sum amount 
1 
for total permanent disability.  
2 
(b)  The benefit shall be paid  in accordance with the following schedule;  
3 
         Complete and permanent  
                                       Benefit                                         
4 
              Loss of the use of: 
                               (Percentage  (%))                                            
5 
              One thumb                                                                     17% 
 
  
6 
              One index finger                                                            13 
7 
              One middle finger 
 
                                         10 
8 
              One ring finger 
 
                                           8    
9 
              One little finger   
   
                                           5 
10 
              One big toe       
                                                     10 
11 
              Any toe 
 
 
   
                               5 
12 
              One arm                                                                          83 
13 
              One hand 
 
                                                     65 
14 
              One foot 
                                                                 52 
15 
              One leg 
    
 
 
                             77 
16 
              One ear 
 
 
                                         17 
17 
              Both ears        
 
                                         34 
18 
              Hearing of one ear 
   
                                         17 
19 
              Hearing of both ears  
                                         34 
20 
              Sight of one eye           
 
                             42 
21 
(c) A loss of a wrist shall be considered as loss of the hand, and a loss of an elbow 
22 
shall be considered as a loss of the arm.  A loss of an ankle shall be considered as a loss 
23 
of the foot, and a loss of a knee shall be considered as a loss of the leg. A loss of more 
24 
than one (1) joint shall be considered as a loss of the whole finger or toes, and a loss of 
25 
only the first joint shall be considered as loss of one-half (1/2) of the whole finger or toe: 
26 
Provided, That such a loss shall be either the functional loss of the use or physical loss of 
27 
the member.  
28 
(d) In cases of injuries or illnesses resulting in a permanent partial disability not 
29 
listed in the preceding schedule, the benefit shall be an income benefit equivalent to the 
30 
percentage of the permanent loss of the capacity to work times the lump sum amount for 
31 
permanent total disability.   
32 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 


 
98
 
Chapter VII -   
DEATH BENEFITS 
 
ART. 207. Death - (a) Under such regulation as the Commission may approve, 
1 
the System shall pay to the primary beneficiaries upon the death of the covered employee 
2 
under this Title the lump sum benefit for permanent total disability as specified in Art. 
3 
200: Provided, however, That if he has no primary beneficiary, the System shall pay to 
4 
his secondary beneficiaries fifty percent (50%) of the lump sum benefit for permanent 
5 
total disability as specified in Art. 200.  
6 
(b) The lump-sum benefit provided herein shall be the new amount of the income 
7 
benefit for the surviving beneficiaries upon the approval of this Act.   
8 
(c)  Funeral Benefit. - A funeral benefit in an amount as the System may approve, 
9 
but not less than Twenty Thousand Pesos (P20, 000), shall be paid upon the death of a 
10 
covered employee or a permanently totally disabled pensioner.  
11 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter VIII  
PROVISIONS COMMON TO INCOME BENEFITS 
 
ART. 208. Relationship and Dependency. - All questions of relationship and 
12 
dependency shall be determined as of the time of death. 
13 
ART. 209.  Delinquent Contributions. - (a) An employer who is delinquent in his 
14 
contributions shall be liable to the System for the benefits which may have been paid by 
15 
the System to his employees or their dependents and any benefit and expenses to which 
16 
such employer is liable shall constitute a lien on all his property, real or personal, which 
17 
is hereby declared to be preferred to any credit except taxes. The payment by the 
18 


 
99
employer of the lump sum equivalent of such liability shall absolve him from the 
1 
payment of the delinquent contribution and penalty thereon with respect to the employee 
2 
concerned.  
3 
(b) Failure or refusal of the employer to pay or remit the contributions herein 
4 
prescribed shall not prejudice the right of the employee or his dependents to the benefits 
5 
under this Title. If the sickness, injury, disability or death occurs before the System 
6 
receives any report of the name of his employee, the employer shall be liable to the 
7 
System for the lump sum equivalent of the benefits to which such employee or his 
8 
dependents may be entitled.  
9 
ART. 210. Second Injuries. - If any employee under permanent partial disability 
10 
suffers another injury which results in a compensable disability greater than the previous 
11 
injury, the State Insurance Fund shall be liable for the income benefit of the new 
12 
disability: Provided, That if the new disability is related to the previous disability, the 
13 
System shall be liable only for the difference in income benefits.  
14 
ART. 211.  Assignment of Benefits. - No claim for compensation under this Title 
15 
is transferable, or liable to tax, attachment, garnishment, levy or seizure by or under any 
16 
legal process whatsoever, either before or after receipt by the person or persons entitled 
17 
thereto, except to pay any debt of the employee to the System.  
18 
ART. 212. Earned Benefits. - Income benefits shall, with respect to any period of 
19 
disability, be payable in accordance with this Title to an employee who is entitled to 
20 
receive wages, salaries or allowances for holidays, vacation or sick leaves, and any award 
21 
or benefit under a collective bargaining or other agreement.  
22 
ART. 213. Safety Devices. - In case the employee's injury or death was due to the 
23 
failure of the employer to comply with any law, or to install and maintain safety devices, 
24 


 
100
or take other precautions for the prevention of injury, said employer shall pay to the State 
1 
Insurance Fund a penalty of twenty-five per cent (25%) of the lump sum equivalent of the 
2 
income benefit payable by the System to the employee. All employers, especially those 
3 
who should have been paying a rate of contribution higher than that required of them 
4 
under this Title, are enjoined to undertake and strengthen measures for the occupational 
5 
health and safety of their employees.  
6 
ART. 214.  Prescriptive Period. -  No claim shall be given due course unless said 
7 
claim is filed with the System within ten (10) years from the time the cause of action 
8 
accrued.  
9 
ART. 215. Erroneous Payment. - (a) If the System in good faith pays income 
10 
benefit to a dependent who is inferior in right to another dependent or with whom another 
11 
dependent is entitled to share, such payments shall discharge the System from liability, 
12 
unless and until such other dependent notifies the System of his claim prior to the 
13 
payments.  
14 
(b) In case of doubt as to the respective rights of rival claimants, the System is 
15 
hereby empowered to determine as to whom payment should be made in accordance with 
16 
such regulations as the Commission may approve. If the money is payable to a minor or 
17 
incompetent, payment shall be made by the System to such person or persons as it may 
18 
consider to be best qualified to take care and dispose of the minor's or incompetent's 
19 
property for his benefit.  
20 
ART. 216. Prohibition. - No agent, attorney or other person pursuing or in charge 
21 
of the preparation or filing of any claim for benefit under this Title shall demand or 
22 
charge for his services any fee, and any stipulation to the contrary shall be null and void. 
23 
The retention or deduction of any amount from any benefit granted under this Title for 
24 


 
101
the payment of fees of such services is prohibited. Violation of any provision of this 
1 
Article shall be punished by a fine of not less than Five Hundred Pesos nor more than 
2 
Five Thousand Pesos, or imprisonment for not less than six (6) months nor more than one 
3 
year, or both, at the discretion of the court.  
4 
ART. 217. Exemption from Levy, Tax, Etc. - All laws to the contrary 
5 
notwithstanding, the State Insurance Fund and all its assets shall be exempt from any tax, 
6 
fee, charge, levy or customs or import duty, and no law hereafter enacted shall apply to 
7 
the State Insurance Fund unless it is provided therein that the same is applicable by 
8 
expressly stating its name. 
9 
 
Title II - EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
 
Chapter IX 
RECORDS, REPORTS AND PENAL PROVISIONS 
 
ART. 218. Records of Death or Disability. - (a) All employers shall keep a 
10 
logbook to record chronologically the sickness, injury or death of their employees, setting 
11 
forth therein their names, dates and places of the contingency, nature of the contingency 
12 
and absences. Entries in the logbook shall be made within five days from notice or 
13 
knowledge of the occurrence of the contingency. Within five days after the entry in the 
14 
logbook, the employer shall report to the System only those contingencies it deems to be 
15 
work connected.  
16 
(b) All entries in the employer's logbook shall be made by the employer or any of 
17 
his authorized officials after verification of the contingencies or the employee's absences 
18 
for a period of a day or more. Upon request by the System, the employer shall furnish the 
19 
necessary certificate regarding information about any contingency appearing in the 
20 


 
102
logbook, citing the entry number, page number and date. Such logbook shall be made 
1 
available for inspection to the duly authorized representative of the System.  
2 
(c) Should any employer fail to record in the logbook an actual sickness, injury or 
3 
death of any of his employees within the period prescribed herein, give false information 
4 
or withhold material information already in his possession, he shall be held liable for fifty 
5 
percent (50%) of the lump sum equivalent of the income benefit to which the employee 
6 
may be found to be entitled, the payment of which shall accrue to the State Insurance 
7 
Fund.  
8 
(d) In case of payment of benefits for any claim which is later determined to be 
9 
fraudulent and the employer is found to be a party to the fraud, such employer shall 
10 
reimburse the System the full amount of the compensation paid.  
11 
ART. 219.  Notice of Sickness, Injury or Death. - Notice of sickness, injury or 
12 
death shall be given to the employer by the employee or by his dependents or anybody on 
13 
his behalf within five days from the occurrence of the contingency. No notice to the 
14 
employer shall be required if the contingency is known to the employer or his agents or 
15 
representatives.   
16 
ART. 220. Penal Provisions. - (a) The penal provisions of Republic Act No. 
17 
1161, as amended, and Commonwealth Act No.  186, as amended, with regard to the 
18 
funds as are thereunder being paid to, collected or disbursed by the System, shall be 
19 
applicable to the collection, administration and disbursement of the funds under this Title. 
20 
The penal provisions on coverage shall also be applicable.                          
21 
(b) Any person, who for the purpose of securing entitlement to any benefit or 
22 
payment under this Title or the issuance of any certificate or document for any purpose 
23 
connected with this Title, whether for him or for some other person, commits fraud, 
24 


 
103
collusion, falsification, misrepresentation of facts or any other kind of anomaly shall be 
1 
punished with a fine of not less than Five Hundred Pesos nor more than Five Hundred 
2 
Thousand Pesos and an imprisonment for not less than six (6) months nor more than one 
3 
year, at the discretion of the court.  
4 
(c) If the act penalized by this Article is committed by any person who has been 
5 
or is employed by the Commission or System, or a recidivist, the imprisonment shall not 
6 
be less than one year; if committed by a lawyer, physician or other professional, he shall 
7 
in addition to the penalty prescribed herein be disqualified from the practice of his 
8 
profession; and if committed by any official, employee or personnel of the Commission, 
9 
System or any government agency, he shall in addition to the penalty prescribed herein 
10 
be dismissed with prejudice to reemployment in the government service.  
11 
 
ART. 221. Applicability. - Settlement of employees’ compensation claims - All 
12 
employees’ claims for medical and related benefits and for income benefits shall be 
13 
processed, determined and settled in accordance with such laws, rules and regulations 
14 
existing at the time their cause of action accrued.  
15 
ART. 222. Implementing Rules and Regulations. - The rules and regulations to 
16 
implement the provisions of this Title shall be adopted and promulgated by the 
17 
Commission not later than three (3) months after the approval of this Act.  
18 
 
Title III - PHILHEALTH 
 
ART. 223. Medical Care. - The Philippine Medical Care Plan shall be 
19 
implemented as provided under Republic Act No. 6111, as amended. 
20 
 
Title IV - ADULT EDUCATION 


 
104
 
ART. 224. Adult Education. - Every employer shall render assistance in the 
1 
establishment and operation of adult education programs for their workers and employees 
2 
as prescribed by regulations approved by the Technical Education and Skills 
3 
Development Authority (TESDA).  
4 
 
 
 
BOOK FIVE 
LABOR RELATIONS 
 
Title I - POLICY AND DEFINITIONS 
 
Chapter I  
POLICY 
 
ART.  225.  Declaration of Policy:  (a) The State shall ensure the fullest possible 
5 
exercise of the rights of all workers to self-organization, collective bargaining and 
6 
negotiations, and peaceful concerted activities, including the right to strike in accordance 
7 
with law.   
 
8 
(b) All workers shall participate in policy and decision-making processes 
9 
affecting their rights and benefits as may be provided by law. 
 
10 
(c) The State shall promote the principle of shared responsibility between workers 
11 
and employers and the preferential use of voluntary modes in settling disputes, including 
12 
conciliation, and shall enforce their mutual compliance therewith to foster industrial 
13 
peace.  No labor dispute arising from employer-employee relationship shall be under the 
14 
jurisdiction of the National Labor Relations Commission until all the efforts to resolve 
15 
such labor dispute at the work place by the grievance machinery or by conciliation in 
16 


 
105
accordance with the rules and regulations promulgated by the Secretary of Labor and 
1 
Employment have failed. 
 
2 
(d) To encourage a truly democratic method of regulating the relations between 
3 
the employers and employees by means of agreements freely entered into through 
4 
collective bargaining, no court or administrative agency or official shall have the power 
5 
to set or fix wages, rates of pay, hours of work or other terms and conditions of 
6 
employment, except as otherwise provided under this Code.  
7 
ART. 226. Tripartism and Tripartite Conferences - (a) Tripartism in labor 
8 
relations is hereby declared a State policy. Towards this end, workers and employers 
9 
shall, as far as practicable, be represented in decision and policy-making bodies of the 
10 
government. 
11 
(b)  The Secretary of Labor and Employment or his duly authorized 
12 
representatives may from time to time call a national, regional, or industrial tripartite 
13 
conference of representatives of government, workers and employers for the 
14 
consideration and adoption of voluntary codes of principles designed to promote 
15 
industrial peace based on social justice or to align labor movement relations with 
16 
established priorities in economic and social development. In calling such conference, the 
17 
Secretary of Labor and Employment may consult with accredited representatives of 
18 
workers and employers.  
19 
 
Title I - POLICY AND DEFINITIONS 
 
Chapter II 
DEFINITIONS 
 


 
106
  
ART.  227.  Definitions. –. (a)  “Department” means the Department of Labor 
1 
and Employment.  “Secretary” refers to the head of the Department.                    
2 
(b) "Commission" means the National Labor Relations Commission or any of its 
3 
divisions. 
4 
(c)  "Bureau" means the Bureau of Labor Relations and/or the Labor Relations 
5 
Divisions in the regional offices of the Department.  
6 
 (d)  "Board" means the National Conciliation and Mediation Board established 
7 
under Executive Order No. 126.  
8 
(e) "Council" means the Tripartite Voluntary Arbitration Advisory Council 
9 
established under Executive Order No. 126, as amended.   
10 
(f)   “Code” means the New Labor Code of the Philippines. 
11 
(g)   “Employer"   includes   any   person   acting   in   the interest of an employer, 
12 
directly or indirectly. The  term  shall  not  include  any  labor  organization  or  any of its 
13 
officers or agents except when acting as employer.  
14 
(h)  "Employee" includes any person in the employ of an employer. The term 
15 
shall not be limited to the employees of a particular employer, unless this Code so 
16 
explicitly states. It shall include any individual whose work has ceased as a result of or in 
17 
connection with any current labor dispute or because of any unfair labor practice if he has 
18 
not obtained any other substantially equivalent and regular employment.  
19 
(i)  "Labor Organization" means any union or association of employees which 
20 
exists in whole or in part for the purpose of collective bargaining or for dealing with 
21 
employers concerning terms and conditions of employment.   
22 
(j) “Legitimate Labor Organization” means any labor organization defined under 
23 
letter (i) hereof which is duly registered with the Department.  The term includes a 
24 


 
107
local/chapter directly chartered by a federation or national union which has been duly 
1 
reported to the Department. 
2 
(k)  “Workers Association” means any association of workers organized for the 
3 
mutual aid and protection of its members or for any legitimate purpose other than 
4 
collective bargaining.  
 
5 
(l)  “Independent Union” means any labor organization operating at the enterprise 
6 
level whose legal personality is derived through an independent action for registration 
7 
prescribed under Article 239 of the Code. An independent union may be affiliated with a 
8 
federation, national or industry union, in which case it may also be referred to as an 
9 
affiliate. 
 
 
10 
(m)  “Local Union/Chapter” means any labor organization operating at the 
11 
enterprise level whose legal personality is derived through the issuance of a charter by a 
12 
duly registered federation or national union.  
 
 
13 
(n)  “National Union/Federation” means any labor organization with locals/ 
14 
chapters or affiliates each of which is a duly recognized or certified collective bargaining 
15 
agent.  
 
 
16 
(o)  “Legitimate Workers’ Association” means any workers association defined 
17 
under letter (K) hereof which is duly registered with the Department. 
 
 
18 
(p)  “Industry Union” means any group of legitimate labor organizations 
19 
operating within an identified industry organized for collective bargaining or for dealing 
20 
with employers concerning terms and conditions of employment within an industry, or 
21 
for participating in the formulation of social and employment policies, standards and 
22 
programs in such industry, which is duly registered with the Department.  
 
 
23 


 
108
(q)  “Trade Union Center” means any group of registered national unions or 
1 
federations organized for the mutual aid and protection of its members, for assisting such 
2 
members in collective bargaining, or for participating in the formulation of social and 
3 
employment policies, standards and programs, which is duly registered with the 
4 
Department. 
5 
(r) "Company union" means any labor organization whose formation, function or 
6 
administration has been assisted by any act defined as unfair labor practice by this Code.  
7 
(s)  “Bargaining Unit” refers to a group of employees sharing mutual interest 
8 
within a given employer unit, comprised of all or less than all of the entire body of 
9 
employees in the employer unit or any specific occupational or geographical grouping 
10 
within such employer unit. 
11 
(t) “Exclusive Bargaining Representative” means any legitimate labor 
12 
organization duly recognized or certified as the sole and exclusive bargaining agent of all 
13 
the employees in a bargaining unit.  
14 
(u)"Unfair labor practice" means any unfair labor practice as expressly defined by 
15 
this Code.  
16 
(v) "Labor or industrial dispute" includes any controversy or matter concerning 
17 
terms or conditions of employment or the association or representation of persons in 
18 
negotiating, fixing, maintaining, changing or arranging the terms and conditions of 
19 
employment, regardless of whether the disputants stand in the proximate relation of 
20 
employer and employee.  
21 
(w)  "Managerial employee" is one who is vested with powers or prerogatives to 
22 
lay down and execute management policies and/or to hire, transfer, suspend, lay-off, 
23 
recall, discharge, assign or discipline employees. Supervisory employees are those who, 
24 


 
109
in the interest of the employer, effectively recommend such managerial actions if the 
1 
exercise of such authority is not merely routinary or clerical in nature but requires the use 
2 
of independent judgment. All employees not falling within any of the definitions of 
3 
managerial or supervisory employee are considered rank-and-file employees for purposes 
4 
of this Book.  
5 
(x) "Voluntary Arbitrator" means any person accredited by the Board as such, or 
6 
any person named or designated in the Collective Bargaining Agreement by the parties to 
7 
act as their Voluntary Arbitrator, or one chosen, with or without the assistance of the  
8 
Board, pursuant to a selection procedure agreed upon in the collective bargaining 
9 
agreement. 
10 
(y) "Strike" means any temporary stoppage of work by the concerted action of 
11 
employees as a result of an industrial or labor dispute.  
12 
(z) "Lockout" means the temporary refusal of an employer to furnish work as a 
13 
result of an industrial or labor dispute.  
14 
(aa) "Intra union dispute" refers to any conflict between and among union 
15 
members and includes all disputes or grievances arising from any violation of or 
16 
disagreement over any provision of the constitution and by-laws of a union, 
17 
including cases arising from chartering or affiliation of labor organizations or 
18 
from any violation of the rights and conditions of union membership provided for 
19 
in this Code.  
20 
(bb)  “Inter-Union Dispute” refers to any conflict between and among 
21 
legitimate labor organizations involving questions of representation for purposes 
22 
of collective bargaining.  It also includes all other conflicts which legitimate labor 
23 


 
110
organizations may have against each other based on any violations of their rights 
1 
as labor organizations. 
 
2 
(cc) "Strike breaker" means any person who obstructs, impedes, or 
3 
interferes with by force, violence, coercion, threats or intimidation any peaceful 
4 
picketing by employees during any labor controversy affecting wages, hours or 
5 
conditions of work or in the exercise of the right of self-organization or collective 
6 
bargaining.  
 
7 
(dd) "Strike area" means the establishment, warehouses, depots, plants or 
8 
offices, including the sites or premises used as run-away shops, of the employer 
9 
struck against, as well as the immediate vicinity actually used by picketing 
10 
strikers in moving to and fro before all points of entrance to and exit from said 
11 
establishment. 
12 
 
Title II - NATIONAL LABOR RELATIONS COMMISSION 
 
Chapter I 
CREATION AND COMPOSITION 
 
**ART. 228.  National Labor Relations Commission. - There shall be a National 
13 
Labor Relations Commission which shall be attached to the Department of Labor and 
14 
Employment for program and policy coordination only, composed of a Chairman and 
15 
twenty three (23) members. 
16 
 Eight (8) members each shall be chosen from among the nominees of the workers 
17 
and employers organizations, respectively. The Chairman and the seven (7) remaining 
18 
members shall come from the public sector, with the latter to be chosen preferably from 
19 
among the  Labor Arbiters as recommended by the Secretary of Labor and Employment.  
20 


 
111
Upon assumption into office, the members nominated by the workers and 
1 
employers organizations shall divest themselves of any affiliation with or interest in the 
2 
federation or association to which they belong.  
3 
The Commission may sit en banc or in eight (8) divisions, each composed of 
4 
three (3) members. The Commission shall sit en banc only for purposes of promulgating 
5 
rules and regulations governing the hearing and disposition of cases before any of its 
6 
divisions and regional branches and formulating policies affecting its administration and 
7 
operations. The Commission shall exercise its adjudicatory and all other powers, 
8 
functions, and duties through its divisions. Of the eight (8) divisions, the first, second,  
9 
third, fourth, fifth and sixth divisions shall handle cases coming from the National Capital 
10 
Region and other parts of Luzon and the seventh and eighth  divisions, cases from the 
11 
Visayas and Mindanao, respectively: Provided, That the Commission sitting en banc 
12 
may, on temporary and emergency basis, allow cases within the jurisdiction of any 
13 
division to be heard and decided by any other division whose docket allows the additional 
14 
workload and such transfer will not expose litigants to unnecessary additional expense. 
15 
The divisions of the Commission shall have exclusive appellate jurisdiction over cases 
16 
within their respective territorial jurisdiction.   
17 
The concurrence of two (2) Commissioners of a division shall be necessary for 
18 
the pronouncement of a judgment or resolution. Whenever the required membership in a 
19 
division is not complete and the concurrence of two (2) Commissioners to arrive at a 
20 
judgment or resolution cannot be obtained, the Chairman shall designate such number of 
21 
additional Commissioners from the other divisions as may be necessary.  
22 
The conclusions of a division on any case submitted to it for decision shall be 
23 
reached in consultation before the case is assigned to a member for the writing of the 
24 


 
112
opinion. It shall be mandatory for the division to meet for purposes of the consultation 
1 
ordained therein. A certification to this effect signed by the Presiding Commissioner of 
2 
the division shall be issued, and a copy thereof attached to the record of the case and 
3 
served upon the parties.  
4 
The Chairman shall be the Presiding Commissioner of the first division, and the 
5 
seven (7)  other members from the public sector shall be the Presiding Commissioners of 
6 
the second, third, fourth, fifth, sixth, seventh and eighth divisions, respectively. In case of 
7 
the effective absence or incapacity of the Chairman, the Presiding Commissioner of the 
8 
second division shall be the Acting Chairman.  
9 
The Chairman, aided by the Executive Clerk of the Commission, shall have 
10 
administrative supervision over the Commission and its regional branches and all its 
11 
personnel, including the Labor Arbiters.  
12 
The Commission, when sitting en banc, shall be assisted by the same Executive 
13 
Clerk, and when acting thru its divisions, by said Executive Clerk for its first division and 
14 
seven (7) other Deputy Executive Clerks for the second, third, fourth, fifth, sixth, seventh 
15 
and eighth divisions, respectively, in the performance of such similar or equivalent 
16 
functions and duties as are discharged by the Clerk of Court and Deputy Clerks of Court 
17 
of the Court of Appeals.  
18 
The Commission and its eight (8) divisions shall be assisted by the Commission 
19 
Attorneys in its appellate and adjudicatory functions whose term shall be co-terminus 
20 
with the Commissioners with whom they are assigned.  The Commission Attorneys shall 
21 
be members of the Philippine Bar with at least one (1) year experience or exposure in the 
22 
field of labor-management relations. They shall receive annual salaries and shall be 
23 
entitled to the same allowances and benefits as those falling under salary grade of twenty 
24 


 
113
six (SG 26).  There shall be as many Labor Arbitration Officers as may be necessary for 
1 
the effective and efficient operation of the Commission but in no case less than two (2) 
2 
assigned to the Office of the Chairman and each Commissioner.  
3 
**ART. 229. Headquarters, Branches and Provincial Extension Units. - The 
4 
Commission and its first, second, third, fourth, fifth and sixth divisions shall have their 
5 
main offices in Metropolitan Manila and the seventh and eighth divisions in the cities of 
6 
Cebu and Cagayan de Oro, respectively. The Commission shall establish as many 
7 
regional branches as there are regional offices of the Department of Labor and 
8 
Employment, sub-regional branches or provincial extension units. There shall be as many 
9 
Labor Arbiters as may be necessary for the effective and efficient operation of the 
10 
Commission.        
11 
**ART. 230. Appointment and Qualifications. - The Chairman and other 
12 
Commissioners shall be members of the Philippine Bar and must have been engaged in 
13 
the practice of law in the Philippines for at least fifteen (15) years, with at least five (5) 
14 
years experience or exposure in the field of labor-management relations, and shall 
15 
preferably be residents of the region where they are to hold office. The Labor Arbiters  
16 
shall likewise be members of the Philippine Bar and must have been engaged in the 
17 
practice of law in the Philippines for at least ten (10) years, with at least three (3) years 
18 
experience or exposure in the field of labor-management relations: Provided, however, 
19 
That incumbent  Labor Arbiters who have been engaged in the practice of law for at least 
20 
five (5) years may be considered as already qualified for purposes of reappointment as 
21 
such under this Act.  
22 
The Chairman, the other Commissioners, and the Labor Arbiters shall hold office 
23 
during good behavior until they reach the age of sixty-five (65) years, unless sooner 
24 


 
114
removed for cause as provided by law or become incapacitated to discharge the duties of 
1 
their office.  
2 
The Chairman, the Division Presiding Commissioners and other Commissioners 
3 
shall all be appointed by the President. Appointment to any vacancy shall come from the 
4 
nominees of the sector which nominated the predecessor. The Labor Arbiters shall also 
5 
be appointed by the President, upon recommendation of the Secretary of Labor and 
6 
Employment, to specific arbitration branches, preferably in the regions where they are 
7 
residing and shall be subject to the Civil Service Law, rules and regulations: Provided, 
8 
however, That the incumbent Labor Arbiters who are presently holding office in the 
9 
regions where they are residing shall be deemed  appointed thereat.  
10 
The Secretary of Labor and Employment shall, in consultation with the Chairman 
11 
of the Commission, appoint the staff and employees of the Commission, and its regional 
12 
branches as the needs of the service may require, subject to the Civil Service Law, rules 
13 
and regulations, and upgrade their current salaries, benefits and other emoluments in 
14 
accordance with law.  
15 
**ART. 231. Ranks, Salaries, Benefits and Other Emoluments. – The Chairman 
16 
and members of the Commission shall have the same rank, receive an annual salary 
17 
equivalent to, and be entitled to the same allowances, retirement and other benefits and 
18 
privileges as those of the Presiding Justice and Associate Justices of the Court of 
19 
Appeals, respectively. The Labor Arbiters shall have the same rank, receive an annual 
20 
salary equivalent to and be entitled to the same allowances, retirement and other benefits 
21 
and privileges as that of the judges of the Regional Trial Courts.  In no case, however, 
22 
shall the provisions of this Article result in the diminution of existing salaries, allowances 
23 
and benefits of the aforementioned officials.  
24 


 
115
 
Title II - NATIONAL LABOR RELATIONS COMMISSION 
 
Chapter II 
POWERS AND DUTIES 
 
ART. 232.  Jurisdiction of Labor Arbiters and the Commission. –  (a) Except as 
1 
otherwise provided under this Code, the Labor Arbiters shall have original and exclusive 
2 
jurisdiction to hear and decide, within thirty (30) calendar days after the submission of 
3 
the case by the parties for decision without extension, even in the absence of stenographic 
4 
notes, the following cases involving all workers, whether agricultural or non-agricultural:  
5 
(1)   Unfair labor practice cases;  
6 
(2)  Termination disputes except those in organized establishments which 
7 
shall be subject to the grievance machinery and voluntary arbitration;  
8 
             
 (3)   If accompanied with a claim for reinstatement, those cases that 
9 
workers may file involving wages, rate of pay, hours of work and other terms and 
10 
conditions of employment;  
11 
             
 (4)   Claims for actual, moral, exemplary and other forms of damages 
12 
arising from the employer-employee relations;  
13 
       
 (5)  Cases arising from any violation of Article 269 of this Code, 
14 
including questions involving the legality of strikes and lockouts; 
15 
       
 (6)    Inter-union disputes; and  
16 
        
 (7)  Except claims for Employees Compensation, Social Security, 
17 
Medicare and maternity benefits, all other claims arising from employer-
18 
employee relations, including those of persons in domestic or household service, 
19 


 
116
involving an amount exceeding fifty  thousand pesos (P50,000.00), whether or not 
1 
accompanied with a claim for reinstatement.  
2 
(b) The Commission shall have exclusive appellate jurisdiction over all cases 
3 
decided by Labor Arbiters. 
4 
(c) Cases arising from the interpretation or implementation of collective 
5 
bargaining agreements and those arising from the interpretation or enforcement of 
6 
company personnel policies shall be disposed of by the Labor Arbiter by referring the 
7 
same to the grievance machinery and voluntary arbitration as may be provided in said 
8 
agreements.  
9 
ART.  233. Powers of the Commission. - The Commission shall have the power 
10 
and authority: (a) To promulgate rules and regulations governing the hearing and 
11 
disposition of cases before it and its regional branches, as well as those pertaining to its 
12 
internal functions and such rules and regulations as may be necessary to carry out the 
13 
purposes of this Code;  
14 
(b) To administer oaths, summon the parties to a controversy, issue subpoenas 
15 
requiring the attendance and testimony of witnesses or the production of such books, 
16 
papers, contracts, records, statements of accounts, agreements, and others as may be 
17 
material to a just determination of the matter under investigation, and to testify in any 
18 
investigation or hearing conducted in pursuance of this Code;  
19 
(c) To conduct investigation for the determination of a question, matter or 
20 
controversy within its jurisdiction, proceed to hear and determine the disputes in the 
21 
absence of any party thereto who has been summoned or served with notice to appear, 
22 
adjourn its hearings to any time and place, refer technical matters or accounts to an expert 
23 
and to accept his report as evidence after hearing of the parties upon due notice, direct 
24 


 
117
parties to be joined in or excluded from the proceedings, correct, amend, or waive any 
1 
error, defect or irregularity, whether in substance or in form, give all such directions as it 
2 
may deem necessary or expedient in the determination of the dispute before it, and 
3 
dismiss any matter or refrain from  further hearing or from determining the dispute or 
4 
part thereof, where it is trivial or where further proceedings by the Commission are not 
5 
necessary or desirable; and    
6 
(d) To hold any person in contempt direct or indirectly and impose appropriate 
7 
penalties therefor in accordance with law.  
8 
A person guilty of misbehavior in the presence of or so near the Chairman or any 
9 
member of the Commission or any Labor Arbiter as to obstruct or interrupt the 
10 
proceedings before the same, including disrespect toward said officials, offensive 
11 
personalities toward others, or refusal to be sworn or to answer as a witness, or to 
12 
subscribe an affidavit or deposition when lawfully required to do so, may summarily 
13 
adjudged in direct contempt by said officials and punished by fine not exceeding five 
14 
hundred pesos (P500) or imprisonment not exceeding five (5) days, or both if it be the 
15 
Commission or a member thereof, or by a fine not exceeding one hundred pesos (P100) 
16 
or imprisonment not exceeding one (1) day, or both if it be a Labor Arbiter.  
17 
The person adjudged in direct contempt by a Labor Arbiter may appeal to the 
18 
Commission and the execution of the judgment shall be suspended pending the resolution 
19 
of the appeal upon the filing of subject person of a bond on condition that he will abide 
20 
by and perform the judgment of the Commission should the appeal be decided against 
21 
him. Judgment of the Commission on direct contempt is immediately executory and 
22 
unappealable. Indirect contempt shall be dealt with by the Commission or Labor Arbiter 
23 
in the manner prescribed under Rule 71 of the Revised Rules of Court.  
24 


 
118
*ART. 234.  Ocular Inspection. - The Chairman, any Commissioner, Labor 
1 
Arbiter or their duly authorized representatives may at any time during working hours 
2 
conduct an ocular inspection on any establishment, building, ship or vessel, place or 
3 
premises, including any work, material, implement, machinery, appliance or any object 
4 
therein, and ask any employee, laborer or any person as the case may be for any 
5 
information or data concerning any matter or question relative to the object of the 
6 
investigation. 
7 
ART. 235. Technical Rules Not Binding and Prior Resort to Amicable 
8 
Settlement. - In any proceeding before the Commission or any of the Labor Arbiters, the 
9 
rules of evidence prevailing in courts of law or equity shall not be controlling, and it is 
10 
the spirit and intention of this Code that the Commission and its members and the Labor 
11 
Arbiters shall use every and all reasonable means to ascertain the facts in each case 
12 
speedily and objectively, without regard to technicalities of law or procedure, all in the 
13 
interest of due process. In any proceeding before the Commission or any Labor Arbiter, 
14 
the parties may be represented by legal counsel but it shall be the duty of the Chairman, 
15 
any Presiding Commissioner or Commissioner or any Labor Arbiter to exercise complete 
16 
control of the proceedings at all stages.  
17 
Any provision of law to the contrary notwithstanding, the Labor Arbiter shall 
18 
exert all efforts towards the amicable settlement of a labor dispute within his jurisdiction 
19 
on or before the first hearing. The same rule shall apply to the Commission in the 
20 
exercise of its original jurisdiction.  
21 
ART. 236. Appearances and Fees. - (a) Non-lawyers may appear before the 
22 
Commissioner or any Labor Arbiter only:  
23 
 
1. If they represent themselves; or  
24 


 
119
2. If they represent their organization     or members thereof.  
1 
(b) No attorney's fees, negotiation fees or similar charges of any kind arising from 
2 
any collective bargaining negotiations or conclusion of the collective agreement shall be 
3 
imposed on any individual member of the contracting union: Provided, however, That 
4 
attorney's fees may be charged against union funds in an amount to be agreed upon by the 
5 
parties. Any contract, agreement or arrangement of any sort to the contrary shall be null 
6 
and void.  
7 
(c) No docket fee shall be assessed in labor standards disputes. In all other 
8 
disputes, docket fees may be assessed against the filing party, provided that in bargaining 
9 
deadlocks, such fees shall be shared equally by the negotiating parties.  
10 
 
Title II - NATIONAL LABOR RELATIONS COMMISSION 
 
Chapter III 
APPEAL 
 
*ART.   237.  Appeal. - Decisions, awards, or orders of the Labor Arbiter are 
11 
final and executory unless appealed to the Commission by any or both parties within ten 
12 
(10) calendar days from receipt of such decisions, awards, or orders. Such appeal may be 
13 
entertained only on any of the following grounds:    
14 
(a) If there is prima facie evidence of abuse of discretion on the part of the Labor 
15 
Arbiter;  
16 
(b) If the decision, order or award was secured through fraud or coercion, 
17 
including graft and corruption;  
18 
(c) If made purely on questions of law; and  
19 


 
120
(d) If serious errors in the findings of facts are raised which would cause grave or 
1 
irreparable damage or injury to the appellant.  
2 
In case of a judgment involving a monetary award, an appeal by the employer 
3 
may be perfected only upon the posting of a cash or surety bond issued by a reputable 
4 
bonding company duly accredited by the Commission in the amount equivalent to the 
5 
monetary award in the judgment appealed from.  
6 
In any event, the decision of the Labor Arbiter reinstating a dismissed or 
7 
separated employee, insofar as the reinstatement aspect is concerned, shall immediately 
8 
be executory, even pending appeal. The employee shall either be admitted back to work 
9 
under the same terms and conditions prevailing prior to his dismissal or separation or, at 
10 
the option of the employer, merely reinstated in the payroll. **In case the employer shall 
11 
opt for payroll reinstatement, the dismissed employee shall be paid his/her salaries/wages 
12 
and other benefits during the pendency of the appeal in the Commission. The posting of a 
13 
bond by the employer shall not stay the execution for reinstatement provided herein. 
14 
 To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter 
15 
shall impose reasonable penalty, including fines or censures, upon the erring parties.  
16 
In all cases, the appellant shall furnish a copy of the memorandum of appeal to the 
17 
other party who shall file an answer not later than ten (10) calendar days from receipt 
18 
thereof.  
19 
The Commission shall decide all cases within thirty (30) calendar days from 
20 
receipt of the answer of the appellee. The decision of the Commission shall be final and 
21 
executory after ten (10) calendar days from receipt thereof by the parties. **In case a 
22 
motion for reconsideration is filed, the decision shall be executory after ten (10) calendar 
23 
days from receipt of the resolution of such motion. 
24 


 
121
Any law enforcement agency may be deputized by the Secretary of Labor and 
1 
Employment or the Commission in the enforcement of decisions, awards, or orders. To 
2 
ensure speedy labor justice, the periods provided in this Code within which decisions or 
3 
resolutions of labor relations cases or matters should be rendered shall be mandatory. For 
4 
this purpose, a case or matter shall be deemed submitted for decision or resolution upon 
5 
the filing of the last pleading or memorandum required by the rules of the Commission or 
6 
by the Commission itself, or the Labor Arbiter or the Director of the Bureau of Labor 
7 
Relations or Med-Arbiter, or the Regional Director.  
8 
Upon expiration of the corresponding period, a certification stating why a 
9 
decision or resolution has not been rendered within the said period shall be issued 
10 
forthwith by the Chairman of the Commission, the Executive Labor Arbiter, or the 
11 
Director of the Bureau of Labor Relations or Med-Arbiter, or the Regional Director, as 
12 
the case may be, and a copy thereof served upon the parties. Despite the expiration of the 
13 
applicable mandatory period, the aforesaid officials shall, without prejudice to any 
14 
liability which may have been incurred as a consequence thereof, see to it that the case or 
15 
matter shall be decided or resolved without any further delay.  
 
16 
ART. 238. Execution of Decisions, Orders, or Awards. – **(a) Decisions, 
17 
resolutions or awards of the Commission, except those on certified cases, shall be 
18 
appealable only to the Supreme Court on certiorari  under Rule 65 of the Rules of Court 
19 
solely on questions of law or jurisdiction. 
20 
(b) 
The Secretary of Labor and Employment, and the Chairman of the 
21 
Commission may designate special sheriffs and take any measure under existing laws to 
22 
ensure compliance with their decisions, orders or awards and those of Labor Arbiters and 
23 
voluntary arbitrators or panel of voluntary arbitrators, including the imposition of 
24 


 
122
administrative fines which shall not be less than Five Hundred Pesos (P500.00) nor more 
1 
than Ten Thousand Pesos (P10, 000.00).  
2 
(c) The Secretary of Labor and Employment or any Regional Director, the 
3 
Commission or any Labor Arbiter or  the voluntary arbitrator or panel of voluntary 
4 
arbitrators may, motu propio or on motion of any interested party, issue a writ of 
5 
execution on a judgment within five (5) years from the date it becomes final and 
6 
executory, requiring a sheriff or a duly deputized officer to execute or enforce final 
7 
decisions, orders or awards of the Secretary of Labor and Employment or Regional 
8 
Director, the Commission, or the Labor Arbiter or voluntary arbitrator or panel of 
9 
voluntary arbitrators. In any case, it shall be the duty of the responsible officer to 
10 
separately furnish immediately the counsel of record and the parties with copies of said 
11 
decisions, orders or awards. Failure to comply with the duty prescribed herein shall 
12 
subject such responsible officer to appropriate administrative sanctions.  
13 
ART. 239. Contempt Powers of the Secretary of Labor and Employment. - In 
14 
the exercise of his powers under this Code, the Secretary of Labor and Employment may 
15 
hold any person in direct or indirect contempt and impose the appropriate penalties 
16 
therefor.              
17 
 
Title III -   BUREAU OF LABOR RELATIONS 
          
 
18 
ART. 240.  Bureau of Labor Relations. - The Bureau of Labor Relations and the 
19 
Labor Relations Divisions in the regional offices of the Department of Labor and 
20 
Employment shall have original and exclusive authority to act, at their own initiative or 
21 
upon request of an interested party, on all intra-union conflicts. The Bureau shall have 
22 


 
123
fifteen (15) calendar days to act on labor cases before it, subject to extension by 
1 
agreement of the parties.                               
2 
ART. 241. Conciliation and Compromise Agreements. – The National 
3 
Conciliation and Mediation Board shall implement the preferential use of voluntary 
4 
modes of settling labor disputes through conciliation in accordance with such rules and 
5 
regulations as the Secretary of Labor and Employment may promulgate. Any 
6 
compromise settlement, including those involving labor standard laws, voluntarily agreed 
7 
upon by the parties with the assistance of the Board and its Regional Branches, shall be 
8 
final and binding upon the parties. The National Labor Relations Commission or any 
9 
court shall not assume jurisdiction over issues involved therein except in case of non-
10 
compliance thereof or if there is prima facie evidence that the settlement was obtained 
11 
through fraud, misrepresentation, or coercion.  
12 
ART. 242.  Issuance of Subpoenas. - The Bureau shall have the power to require 
13 
the appearance of any person or the production of any paper, document or matter relevant 
14 
to a labor dispute under its jurisdiction either at the request of any interested party or at 
15 
its own initiative.  
16 
ART. 243.  Registry of Unions. – The Bureau shall keep a registry of legitimate 
17 
labor organizations.  
18 
ART. 244. Registry of Collective Bargaining Agreements –The Board shall 
19 
maintain a registry of all collective bargaining agreements and other related agreements 
20 
and records of the compromise settlements of labor disputes, and copies of orders, and 
21 
decisions of voluntary arbitrators or panel or voluntary arbitrators.  
22 
The file shall be open and accessible to interested parties under conditions 
23 
prescribed by the Secretary of Labor and Employment: Provided, That no specific 
24 


 
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information submitted in confidence shall be disclosed unless authorized by the  
1 
Secretary, or when it is at issue in any judicial litigation or when public interest or 
2 
national security so requires.  
3 
Within thirty (30) days from the execution of a collective bargaining agreement, 
4 
the parties shall submit copies of the same directly to the Board for registration 
5 
accompanied with verified proofs of its posting in two conspicuous places in the place of 
6 
work and ratification by the majority of all the workers in the bargaining unit. The Board 
7 
shall act upon the application for registration of such collective bargaining agreement 
8 
within five (5) calendar days from receipt thereof.  
9 
The Board shall assess the employer for every collective bargaining agreement a 
10 
registration fee of not less than Two Thousand Pesos (P2, 000.00) or in any other amount 
11 
as may be deemed appropriate and necessary by the Secretary of Labor and Employment 
12 
for the effective and efficient administration of the voluntary arbitration program. Any 
13 
amount collected under this provision shall accrue to the Special Voluntary Arbitration 
14 
Program.  
15 
ART. 245. Privileged Communication. - Information and statements made at 
16 
conciliation proceedings shall be treated as privileged communication and shall not be 
17 
used as evidence in the Commission. Conciliators and similar officials shall not testify in 
18 
any court or body regarding any matters taken up at conciliation proceedings conducted 
19 
by them. 
20 
 
Title IV - LABOR ORGANIZATIONS 
 
Chapter I 
REGISTRATION AND CANCELLATION 
 


 
125
*/**ART. 246.  Types of Labor Organizations; Requirements of Registration. – 
1 
A labor organization may consist of workers employed by a particular employer or of 
2 
employees in an appropriate occupational grouping of workers organized for mutual aid 
3 
and protection. It includes an organization operating at the enterprise level or in an 
4 
appropriate bargaining unit within an enterprise, as well as a national or industry union, 
5 
federation, confederation or trade union center. 
6 
A federation, national union or industry or trade union center or an independent 
7 
union shall acquire legal personality and shall be entitled to the rights and privileges 
8 
granted by law to legitimate labor organizations upon issuance of the certificate of 
9 
registration based on the following requirements. 
10 
(a) The names of its officers, their addresses, the principal address of the labor 
11 
organization, the minutes of the organizational meeting and the list of the workers who 
12 
participated in such meetings; 
13 
(b) In case the applicant is an independent union, the names of all its members 
14 
comprising at least twenty percent (20%) of all the employees in the bargaining unit 
15 
where it seeks to operate,  
 
16 
(c) If the applicant union has been in existence for one or more years, copies of its 
17 
annual financial report; 
 
18 
(d) Four copies of the constitution and by-laws of the applicant union, minutes of 
19 
its adoption or ratification, and the list of the members who participated in it; and  
20 
(e) Payment of registration fee to be prescribed by the Secretary of Labor and 
21 
Employment from time to time, but which shall only be in an amount necessary to cover 
22 
the costs of processing and maintaining the documents submitted. 
23 


 
126
Upon submission of all the foregoing documents, the Bureau shall issue in favor 
1 
of the labor organization concerned a certificate of registration evidencing its inclusion in 
2 
the roster of legitimate labor organizations which shall be kept by the Bureau.  
3 
*/**ART. 247. Chartering and Creation of a Local Chapter. – A duly registered 
4 
federation or national union may directly create a local chapter by issuing a charter 
5 
certificate indicating the establishment of the local chapter. The chapter shall acquire 
6 
legal personality only for purposes of filing a request for certification election from the 
7 
date it was issued a charter certificate.  
8 
The chapter shall be entitled to all other rights and privileges of a legitimate labor 
9 
organization only upon the submission of the following documents in addition to its 
10 
charter certificate: 
11 
(a)  The names of the chapter’s officers, their addresses, and the principal office 
12 
of the chapter; and 
13 
(b)  The chapter’s constitution and by-laws: Provided, That where the chapter’s 
14 
constitution and by-laws  are the same as that of the federation or the national union, this 
15 
fact shall be indicated accordingly. 
16 
The additional supporting requirements shall be certified under oath by the 
17 
secretary or treasurer of the chapter and attested to by its President. 
18 
Any form of misrepresentation, false statement or fraud committed by individual 
19 
officers or members shall not be a ground for cancellation but shall subject the erring 
20 
officers or members to suspension, expulsion from membership, or any other appropriate 
21 
penalty.  
22 
ART. 248. Action on Application. - The Bureau shall act on all applications for 
23 
registration within ten (10) days from filing. If no action is taken by the Bureau within 
24 


 
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that period after complete submission of the requirements, the labor organization is 
1 
deemed registered. All requisite documents and papers shall be certified under oath by 
2 
the secretary or the treasurer of the organization, as the case may be, and attested to by its 
3 
president.  
4 
ART.  249. Denial of Registration; Appeal. - The decision of the Labor Relations 
5 
Division in the regional office denying registration may be appealed by the applicant 
6 
union to the Bureau within ten days from receipt of notice thereof.  
7 
ART.  250. Additional Requirements for Federations or National Unions. -  If 
8 
the applicant for registration is a federation or a national union, it shall, in addition to the 
9 
requirements of the preceding articles, submit the following:  
10 
(a) Proof of the affiliation of at least ten locals or chapters, each of which must be 
11 
a duly recognized collective bargaining agent supporting the registration of such 
12 
applicant federation or national union;  
13 
(b)  The names and addresses of the companies where the locals or chapters 
14 
operate and the list of all the members in each company involved.  
15 
*/**ART. 251.  Cancellation of Registration. -  The certificate of registration of 
16 
any legitimate labor organization, whether national or local, may be cancelled by the 
17 
Bureau, after due hearing, only on the grounds specified in Article 249 hereof.  
18 
*/**ART. 252. Effect of a Petition for Cancellation of Registration. – A petition 
19 
for cancellation of union registration shall not suspend the proceedings for certification 
20 
election nor shall it prevent the filing of a petition for certification election. 
21 
 In case of cancellation, nothing herein shall restrict the right of the union to seek 
22 
just and equitable remedies in the appropriate courts.  
23 


 
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*/**ART. 253.  Effect of Inclusion as Members of Employees outside the 
1 
Bargaining Unit. – The inclusion as union members of employees outside the bargaining 
2 
unit shall not be a ground for the cancellation of the registration of the union. Said 
3 
employees are automatically deemed removed from the list of membership of said union.  
4 
*/**ART. 254.  Grounds for Cancellation of Union Registration. – The following 
5 
may constitute grounds for cancellation of union registration: 
6 
a) Failure of the union to maintain the minimum membership requirement 
7 
prescribed in Article 246 (b) hereof;  
8 
b) Using the union as a guise to engage in any activity prohibited by the law; and  
9 
c) De facto or voluntary dissolution by the members. 
10 
In case of cancellation, nothing herein shall restrict the right of the organization to 
11 
seek redress in the appropriate courts.   
12 
**ART 255.  Reportorial Requirements. – The following are documents required 
13 
to be submitted to the Bureau by the legitimate labor organization concerned: 
14 
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, 
15 
and the list of members who took part in the ratification of the constitution and 
16 
by-laws within thirty (30) days from adoption or ratification of the constitution 
17 
and by-laws or amendments thereto; 
18 
(b)  Its list of officers, minutes of the election of officers, and list of voters within 
19 
thirty (30) days from election; 
20 
(c) Its annual financial report within thirty (30) days after the close of every fiscal 
21 
year; and  
22 
(d) Its list of members at least once a year or whenever required by the Bureau. 
23 


 
129
Failure to comply with the above requirements shall not be a ground for 
1 
cancellation of union registration but shall subject the erring officers or members to 
2 
suspension, expulsion from membership, or any appropriate penalty. 
3 
 
Title IV - LABOR ORGANIZATIONS 
 
Chapter II 
RIGHTS AND CONDITIONS OF MEMBERSHIP 
 
ART. 256.  Rights and Conditions of Membership in a Labor Organization. - The 
4 
following are the rights and conditions of membership in a labor organization:  
5 
*(a) No arbitrary or excessive initiation fees shall be required of the members of a 
6 
legitimate labor organization nor shall arbitrary, excessive or oppressive fine and 
7 
forfeiture be imposed;  
8 
*(b) The members shall be entitled to full and detailed reports from their officers 
9 
and representatives of all financial transactions as provided for in the constitution and by-
10 
laws of the organization;  
11 
(C)  The members shall elect their officers by secret ballot at intervals of not more 
12 
than three (3) years.  The election shall be done directly unless circumstances otherwise 
13 
require and as provided for in the constitution and by-laws of the organization. No 
14 
qualification requirement for candidacy to any position shall be imposed other than 
15 
membership in good standing in subject labor organization. The secretary or any other 
16 
responsible union officer shall furnish the Secretary of Labor and Employment with a list 
17 
of the newly-elected officers, together with the appointive officers or agents who are 
18 
entrusted with the handling of funds within thirty (30) calendar days after the election of 
19 


 
130
officers or from the occurrence of any change in the list of officers of the labor 
1 
organization.  
2 
(d) The members shall determine by secret ballot, after due deliberation, any 
3 
question of major policy affecting the entire membership of the organization, unless the 
4 
nature of the organization or force majeure renders such secret balloting impractical, in 
5 
which case the board of directors of the organization may make the decision in behalf of 
6 
the general membership.  
7 
*(e) No person who has been convicted of a crime involving moral turpitude shall 
8 
be eligible for election as a union officer or for appointment to any position in the union;  
9 
*(f) No officer, agent or member of a labor organization shall collect any fees, 
10 
dues, or other contributions in its behalf or make any disbursement of its moneys or funds 
11 
unless he is duly authorized pursuant to its constitution and by-laws;  
12 
*(g) Every payment of fees, dues or other contributions by a member shall be 
13 
evidenced by a receipt signed by the officer or agent making the collection and entered 
14 
into the record of the organization to be kept and maintained for the purpose;  
15 
*(h) The funds of the organization shall not be applied for any purpose or object 
16 
other than those expressly provided by its constitution and by-laws or those expressly 
17 
authorized by written resolution adopted by the majority of the members at a general 
18 
meeting duly called for the purpose;   
19 
*(i) Every income or revenue of the organization shall be evidenced by a record 
20 
showing its source, and every expenditure of its funds shall be evidenced by a receipt 
21 
from the person to whom the payment is made, which shall state the date, place and 
22 
purpose of such payment. Such record or receipt shall form part of the financial records 
23 
of the organization. Any action involving the funds of the organization shall prescribe 
24 


 
131
three (3) years from the date of submission of the annual financial report to the DOLE or 
1 
from the date the same should have been submitted, whichever comes earlier. 
2 
*(j) The officers of any labor organization shall not be paid any compensation 
3 
other than the salaries and expenses due to their positions as specifically provided for in 
4 
its constitution and by-laws or in a written resolution duly authorized by a majority of all 
5 
the members at a general membership meeting duly called for the purpose. The minutes 
6 
of the meeting and the list of participants and ballots cast shall be subject to inspection by 
7 
the Secretary of Labor and Employment or his duly authorized representatives. Any 
8 
irregularities in the approval of the resolutions shall be a ground for impeachment or 
9 
expulsion from the organization;  
10 
(k) The treasurer of any labor organization and every officer thereof who is 
11 
responsible for the accounts of such organization or for the collection, management, 
12 
disbursement, custody or control of the funds, moneys and other properties of the 
13 
organization, shall render to the organization and to its members a true and correct 
14 
account of all moneys received and paid by him since he assumed office or since the last 
15 
date on which he rendered such account and of the balance remaining in his hands at the 
16 
time of rendering such account, and of all bonds, securities and other properties of the 
17 
organization entrusted to his custody or under his control. The rendering of such account 
18 
shall be made:  
19 
(1)  At least once a year within thirty (30) days after the close of its fiscal 
20 
year;  
21 
(2)  At such other times as may be required by a resolution of the majority 
22 
of the members of the organization; and  
23 
(3)  Upon vacating his office.  
24 


 
132
The account shall be duly audited and verified by affidavit and a copy thereof 
1 
shall be furnished the Secretary of Labor and Employment;  
2 
  
*(l) The books of accounts and other records of the financial activities of any 
3 
labor organization shall be opened to inspection by any officer or member thereof during 
4 
office hours;    
5 
*(m) No special assessment or other extraordinary fees may be levied upon the 
6 
members of a labor organization unless authorized by a written resolution of a majority of 
7 
all the members at a general membership meeting duly called for the purpose. The 
8 
secretary of the organization shall record the minutes of the meeting including the list of 
9 
all members present, the votes cast, the purpose of the special assessment or fees and the 
10 
recipient of such assessment or fees. The record shall be attested to by the president;  
11 
*(n) Other than for mandatory activities under the Code, no special assessment, 
12 
attorney's fees, negotiation fees or any other extraordinary fees may be checked off from 
13 
any amount due an employee without an individual written authorization duly signed by 
14 
the employee. The authorization should specifically state the amount, purpose and 
15 
beneficiary of the deduction; and 
16 
(o) It shall be the duty of any labor organization and its officers to inform its 
17 
members on the provisions of its constitution and by-laws, collective bargaining 
18 
agreement, the prevailing labor relations system and all their rights and obligations under 
19 
existing labor laws. For this purpose, registered labor organizations may assess 
20 
reasonable dues to finance labor relations seminars and other labor education activities.   
21 
Any violation of the rights and conditions of membership shall be a ground for 
22 
subjecting the erring officer or member to suspension, expulsion or other, disciplinary 
23 
action in accordance with the organization's constitution and by-laws.  A member may 
24 


 
133
file with the Bureau a complaint based on violations of the rights and conditions of 
1 
membership only if there is no appropriate internal administrative mechanism in the 
2 
organization's constitution and by-laws, or if such mechanism exists but the remedies 
3 
therein have been exhausted or rendered in availing to the member through no fault of his 
4 
or her own. In such case, the Bureau shall have the power to hear and decide any reported 
5 
violation and to mete the appropriate penalty: Provided, That the penalty of suspension or 
6 
expulsion may not be imposed unless approved by a majority vote of the membership. 
7 
Criminal and civil liabilities arising from violations of above rights and conditions of 
8 
membership shall continue to be under the jurisdiction of ordinary courts.  
9 
The Secretary of Labor and Employment or his duly authorized representative is 
10 
hereby empowered to inquire into the financial activities of legitimate labor organizations 
11 
upon the filing of a complainant under oath and duly supported by the written consent of 
12 
at least twenty percent (20%) of the total membership of the labor organization concerned 
13 
and to examine their books of accounts and other records to determine compliance or 
14 
non-compliance with the law and to prosecute any violations of the law and the union 
15 
constitution and by-laws: Provided, That such inquiry or examination shall not be 
16 
conducted during the sixty (60) day freedom period nor within thirty (30) days 
17 
immediately preceding the date of election of union officials.  
18 
 
 
 
Title IV - LABOR ORGANIZATIONS 
Chapter III 
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS 
 
ART. 257. Rights of Legitimate Labor Organizations. - A legitimate labor 
19 
organization shall have the right:  
20 


 
134
*a) To act as the representative of its members for the purpose of collective 
1 
bargaining or for mutual aid and protection; 
2 
*b) To be certified as the exclusive representative of all the employees in an 
3 
appropriate collective bargaining unit for purposes of collective bargaining;  
4 
c) To be furnished by the employer, upon written request, with his annual audited 
5 
financial statements, including the balance sheet and the profit and loss statement, within 
6 
thirty (30) calendar days from the date of receipt of the request, after the union has been 
7 
duly recognized by the employer or certified as the sole and exclusive bargaining 
8 
representative of the employees in the bargaining unit, or within sixty (60) calendar days 
9 
before the expiration of the existing collective bargaining agreement, or during the 
10 
collective bargaining negotiation;  
11 
*(d) To own property, real or personal, for the use and benefit of the labor 
12 
organization and its members;  
13 
*(e) To sue and be sued in its registered name; and  
14 
*(f) To undertake all other activities designed to benefit the organization and its 
15 
members, including cooperative, housing welfare and other projects not contrary to law.  
16 
Notwithstanding any provision of a general or special law to the contrary, the income, 
17 
and the properties of legitimate labor organizations, including grants, endowments, gifts, 
18 
donations and contributions they may receive from fraternal and similar organizations, 
19 
local or foreign, which are actually, directly and exclusively used for their lawful 
20 
purposes, shall be free from taxes, duties, and other assessments. The exemptions 
21 
provided herein may be withdrawn only by a special law expressly repealing this 
22 
provision.   All unions are authorized to collect reasonable membership fees, union dues, 
23 
assessments and fines and other contributions for labor education and research, mutual 
24 


 
135
death and hospitalization benefits, welfare fund, strike fund and credit and cooperative 
1 
undertakings.  
2 
                                                  
Title V - COVERAGE 
RIGHT TO SELF-ORGANIZATION 
 
 
*ART. 258. Coverage and Employees' Right to Self-Organization. - All 
3 
Employees shall have the right to self-organization and to form, join or assist labor 
4 
organizations of their own choosing for purposes of collective bargaining.   
5 
*ART. 259. Workers Associations. -  Ambulant, intermittent and itinerant 
6 
workers, self-employed people, rural workers and those without any definite employers 
7 
may form workers associations for the purpose of enhancing and defending their interests 
8 
and for their mutual aid and protection. Any employee, whether employed for a definite 
9 
period or not, shall, beginning on his first day of service, be considered an employee for 
10 
purposes of membership in any labor union.  
11 
*ART. 260. Right of Employees of Government-owned and Controlled 
12 
Corporations - Employees of government-owned and controlled corporations established 
13 
under the Corporation Code shall have the right to organize and to bargain collectively 
14 
with their respective employers. Under this Code the employees of all branches, 
15 
subdivisions, instrumentalities and agencies of the government, including government 
16 
owned and controlled corporation with original charters shall have the right to organize 
17 
and to have collective negotiation in accordance with civil service law, rules and 
18 
regulations.  
19 
**ART. 261. Ineligibility of Managerial Employees to Join Any Labor 
20 
Organization; Right of Supervisory Employees. - Managerial employees are not eligible 
21 


 
136
to join, assist or form any labor organization. Supervisory employees shall not be eligible 
1 
for membership in collective bargaining units of the rank-and-file employees but may 
2 
join, assist or form separate collective bargaining units and/or legitimate labor 
3 
organizations of their own. The rank-and-file union and the supervisors’ union may join 
4 
the same federation or national union.        
5 
ART.  262.  Non-Abridgement of Right to Self-Organization. - It shall be 
6 
unlawful for any person to restrain, coerce, discriminate against or unduly interfere with 
7 
employees and workers in their exercise of the right to self-organization. Such right shall 
8 
include the right to form, join, or assist labor organizations for the purpose of collective 
9 
bargaining through representatives of their own choosing and to engage in lawful aid and 
10 
protection, subject to the provisions of this Code.  
11 
 
Title VI - UNFAIR LABOR PRACTICES 
Chapter I 
CONCEPT 
 
ART. 263. Concept of Unfair Labor Practice and Procedure for Prosecution 
12 
Thereof. - Unfair labor practices violate the constitutional right of workers and 
13 
employees to self-organization, are inimical to the legitimate interests of both labor and 
14 
management, including their right to bargain collectively and otherwise deal with each 
15 
other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder 
16 
the promotion of healthy and stable labor-management relations.  
17 
Consequently, unfair labor practices are not only violations of the civil rights of 
18 
both labor and management but are also criminal offenses against the state which shall be 
19 
subject to prosecution and punishment as herein provided.  
20 


 
137
Subject to the exercise by the President or by the Secretary of Labor and 
1 
Employment of the powers vested in them by Articles 284 and 285 of this Code, the civil 
2 
aspects of all cases involving unfair labor practices, which may include claims for actual, 
3 
moral, exemplary and other forms of damages, attorney's fees and other affirmative relief, 
4 
shall be under the jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost 
5 
priority to the hearing and resolution of all cases involving unfair labor practices. They 
6 
shall resolve such cases within thirty (30) calendar days from the time they are submitted 
7 
for decision.  
8 
Recovery of civil liability in the administrative proceedings shall bar recovery 
9 
under the Civil Code.  
10 
No criminal prosecution under this Title may be instituted without a final 
11 
judgment, finding that an unfair labor practice was committed, having been first obtained 
12 
in the administrative proceeding referred to in the preceding paragraph. During the 
13 
pendency of such administrative proceeding, the running of the period of prescription of 
14 
the criminal offense herein penalized shall be considered interrupted: Provided, however, 
15 
That the final judgment in the administrative proceedings shall not be binding in the 
16 
criminal case nor be considered as evidence of guilt but merely as proof of compliance 
17 
with the requirements herein set forth. 
18 
Notwithstanding the provision of the immediately preceding paragraph, any 
19 
employer, including any person acting in the interest of an employer who unjustly 
20 
dismisses union officers duly elected in accordance with the constitution and by-laws 
21 
which constitutes union busting where the existence of the union is threatened commits 
22 
not only an unfair labor practice but also a criminal offense which may be the subject of 
23 
an immediate criminal prosecution.   
24 


 
138
 
Title VI - UNFAIR LABOR PRACTICES 
 
Chapter II 
UNFAIR LABOR PRACTICES OF EMPLOYERS 
 
 
*ART.  264. Unfair Labor Practices of Employers. - It shall be unlawful for an 
1 
employer to commit any of the following unfair labor practices:  
2 
a) To interfere with, restrain or coerce employees in the exercise of their right to 
3 
self-organization;  
4 
b) To require as a condition of employment that a person or an employee shall not 
5 
join a labor organization or shall withdraw from one to which he belongs;  
6 
c) To contract out services or functions being performed by union members when 
7 
such will interfere with, restrain or coerce employees in the exercise of their right to self-
8 
organization;  
9 
d) To initiate, dominate, assist or otherwise interfere with the formation or 
10 
administration of any labor organization, including the giving of financial or other 
11 
support to it or its organizers or officers;  
12 
e) To discriminate in regard to wages, hours of work, and other terms and 
13 
conditions of employment in order to encourage or discourage membership in any labor 
14 
organization. Nothing in this Code or in any other law shall stop the parties from 
15 
requiring membership in a recognized collective bargaining agent as a condition for 
16 
employment, except of those employees who are already members of another union at the 
17 
time of the signing of the collective bargaining agreement. Employees of an appropriate 
18 
collective bargaining unit who are not members of the recognized collective bargaining 
19 
agent may be assessed a reasonable fee equivalent to the dues and other fees paid by 
20 


 
139
members of the recognized collective bargaining agent, if such non-union members 
1 
accept the benefits under the collective agreement.  
2 
f) To dismiss, discharge or otherwise prejudice or discriminate against an 
3 
employee for having given or being about to give testimony under this Code;  
4 
g) To violate the duty to bargain collectively as prescribed by this Code;  
5 
h) To pay negotiation or attorney's fees to the union or its officers or agents as 
6 
part of the settlement of any issue in collective bargaining or any other dispute; or  
7 
i) To violate a collective bargaining agreement.  
8 
The provision of the preceding paragraph notwithstanding, only the officers and 
9 
agents of corporations, associations, or partnerships who have actually participated in, 
10 
authorized or ratified unfair labor practices shall be held criminally liable.  
11 
 
Title VI - UNFAIR LABOR PRACTICES 
 
Chapter III 
UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS 
 
ART. 265. Unfair Labor Practices of Labor Organizations. - It shall be unfair 
12 
labor practice for a labor organization, its officers, agents, or representatives: 
13 
a) To restrain or coerce employees in the exercise of their right to self-
14 
organization. However, a labor organization shall have the right to prescribe its own rules 
15 
with respect to the acquisition or retention of membership;  
16 
b) To cause or attempt to cause an employer to discriminate against an employee, 
17 
including discrimination against an employee with respect to whom membership in such 
18 
organization has been denied or to terminate an employee on any ground other than the 
19 


 
140
usual terms and conditions under which membership or continuation of membership is 
1 
made available to other members;  
2 
c) To violate the duty or refuse to bargain collectively with the employer, 
3 
provided that it is the representative of the employees;  
4 
d) To cause or attempt to cause an employer to pay or deliver or agree to pay or 
5 
deliver any money or other things of value, in the nature of an exaction, for services 
6 
which are not performed or not to be performed, including the demand for a fee for union 
7 
negotiations;  
8 
e) To ask for or accept negotiation or attorney's fees from employers as part of the 
9 
settlement of any issue in collective bargaining or any other dispute; or  
10 
f) To violate a collective bargaining agreement.  
11 
g) To violate the duty of fair representation, including entering into collective 
12 
bargaining agreements which provide terms and conditions of employment below 
13 
minimum standards established by law. 
14 
The provision of the preceding paragraph notwithstanding, only the officers, 
15 
members of governing boards, representatives or agents or members of labor associations 
16 
or organizations who have actually participated in, authorized or ratified unfair labor 
17 
practices shall be held criminally liable.  
18 
 
Title VII - COLLECTIVE BARGAINING AND ADMINISTRATION OF 
AGREEMENTS 
 
ART.  266. Procedure in Collective Bargaining. - The following procedures 
19 
shall be observed in collective bargaining:  
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a) When a party desires to negotiate an agreement, it shall serve a written notice 
1 
upon the other party with a statement of its proposals. The other party shall make a reply 
2 
thereto not later than ten (10) calendar days from receipt of such notice;  
3 
b) Should differences arise on the basis of such notice and reply, either party may 
4 
request for a conference which shall begin not later than ten (10) calendar days from the 
5 
date of request;  
6 
c) If the dispute is not settled, the Board shall intervene upon request of either or 
7 
both parties or at its own initiative and immediately call the parties to conciliation 
8 
meetings. The Board shall have the power to issue subpoenas requiring the attendance of 
9 
the parties to such meetings. It shall be the duty of the parties to participate fully and 
10 
promptly in the conciliation meetings the Board may call;  
11 
d) During the conciliation proceedings in the Board, the parties are prohibited 
12 
from doing any act which may disrupt or impede the early settlement of the disputes; and  
13 
e) The Board shall exert all efforts to settle disputes amicably and encourage the 
14 
parties to submit their case to a voluntary arbitrator.              
15 
*ART. 267. Duty to Bargain Collectively in the Absence of Collective 
16 
Bargaining Agreements. - In the absence of an agreement or other voluntary 
17 
arrangement providing for a more expeditious manner of collective bargaining, it shall be 
18 
the duty of the employer and the representatives of the employees to bargain collectively 
19 
in accordance with the provisions of this Code.  
20 
ART. 268.  Meaning of Duty to Bargain Collectively. - The duty to bargain 
21 
collectively means the performance of a mutual obligation to meet and convene promptly 
22 
and expeditiously in good faith for the purpose of negotiating an agreement with respect 
23 
to  wages, hours of work and all other terms and conditions of employment including 
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proposals for adjusting any grievances or questions arising under such agreement and 
1 
executing a contract incorporating such agreements if requested by either party, but such 
2 
duty does not compel any party to agree to a proposal or to make any concession.  
3 
*ART. 269. Duty to Bargain Collectively When There Exists a Collective 
4 
Bargaining Agreement. - When there is a collective bargaining agreement, the duty to 
5 
bargain collectively shall also mean that neither party shall terminate or modify such 
6 
agreement during its lifetime. However, either party can serve a written notice to 
7 
terminate or modify the agreement at least sixty (60) days prior to its expiration date. It 
8 
shall be the duty of both parties to keep the status quo and to continue in full force and 
9 
effect the term and conditions of the existing agreement during the 60-day period and/or 
10 
until a new agreement is reached by the parties.  
11 
ART. 270. Terms of a Collective Bargaining Agreement. - Any collective 
12 
bargaining agreement that the parties may enter into shall be for a term of three (3) years. 
13 
The majority status of the incumbent bargaining agent shall not be questioned and no 
14 
certification election shall be conducted by the Bureau outside of the sixty-day period 
15 
immediately before the date of expiry of such three year term of the collective bargaining 
16 
agreement. Any subsequent collective bargaining agreement entered into by the parties 
17 
shall retroact to the date of expiration of the previous collective bargaining agreement.       
18 
*ART. 271. Injunction Prohibited. - No temporary or permanent injunction or 
19 
restraining order in any case involving or growing out of labor disputes shall be issued by 
20 
any court or other entity, except as otherwise provided in Articles 231 and 285 of this  
21 
Code.  
22 
ART. 272.  Exclusive Bargaining Representation and Workers' Participation in 
23 
Policy and Decision-Making. - The labor organization designated or selected by the 
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majority of the employees in an appropriate collective bargaining unit shall be the 
1 
exclusive representative of the employee in such unit for the purpose of collective 
2 
bargaining. However, an individual employee or group of employees shall have the right 
3 
at any time to present grievances to their employer. Any provision of law to the contrary 
4 
notwithstanding, workers shall have the right, subject to such rules and regulations as the 
5 
Secretary of Labor and Employment may promulgate, to participate in policy and 
6 
decision-making processes of the establishment where they are employed insofar as said 
7 
processes will directly affect their rights, benefits and welfare. For this purpose, workers 
8 
and employers may form labor-management councils: Provided, That the representatives 
9 
of the workers in such labor-management councils shall be elected by at least the 
10 
majority of all employees in said establishment. 
11 
**ART. 273. Representation Issue in Organized Establishments. - In organized 
12 
establishments, when a request questioning the majority status of the incumbent 
13 
bargaining agent is filed by any legitimate labor organization, including  a national union 
14 
or federation which has already issued a charter certificate to its local chapter 
15 
participating in the certification election or a local chapter which has been issued a 
16 
charter certificate by the national union or federation before the Department of Labor and 
17 
Employment within the sixty-day period before the expiration of the collective 
18 
bargaining agreement, the Med-Arbiter shall automatically order an election by secret 
19 
ballot when the request  is supported by the written consent of at least twenty-five percent 
20 
(25%) of all the employees in the bargaining unit to ascertain the will of the employees in 
21 
the appropriate bargaining unit. To have a valid election, at least a majority of all eligible 
22 
voters in the unit must have cast their votes. The labor union receiving the majority of the 
23 
valid votes cast shall be certified as the exclusive bargaining agent of all the workers in 
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the unit. When an election which provided for three or more choices results in no choice 
1 
receiving a majority of the valid votes cast, a run-off election shall be conducted between 
2 
the labor unions receiving the two highest number of votes: Provided, That the total 
3 
number of votes for all contending unions is at least fifty percent (50%) of the number of 
4 
votes cast. In cases where the request was filed by a national union or federation, it shall 
5 
not be required to disclose the names of the local chapter’s officers and members.   
6 
At the expiration of the freedom period, the employer shall continue to recognize 
7 
the majority status of the incumbent bargaining agent where no request by any legitimate 
8 
labor organization or a national union or federation for a certification election has been 
9 
duly made.  
10 
*ART. 274. When an Employer may File Petition. – When asked to bargain 
11 
collectively, an employer may request the Bureau for an election. If there is no existing 
12 
certified collective bargaining agreement in the unit, the Bureau shall, after hearing, order 
13 
a certification election.   
14 
All certification cases shall be decided within twenty (20) working days. 
15 
The Bureau shall conduct a certification election within twenty (20) days in 
16 
accordance with the rules and regulations prescribed by the Secretary of Labor and 
17 
Employment.  
18 
*ART. 275.  Representation Issue Where There is a Bargaining Agent but No 
19 
Collective Bargaining Agreement. – Any legitimate labor organization, national union or 
20 
federation may question the status of a bargaining agent if there is still no collective 
21 
bargaining agreement after one year from the date the bargaining unit was recognized or 
22 
certified, in which case, the former may request the Bureau to conduct a certification 
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election as long as it is supported by the written consent of at least twenty-five percent 
1 
(25%) of all employees in the appropriate bargaining unit.  
2 
ART. 276.  Action on Request for Certification Election. -  After receipt of a 
3 
proper request the Bureau shall conduct the certification election within 15 days in 
4 
accordance with the rules and regulations prescribed by the Secretary of Labor and 
5 
Employment.  
6 
*/**ART. 277.  Employer as By-stander.  In all cases, whether the request for 
7 
certification election is filed by an employer or a legitimate labor organization, national 
8 
union or federation, the employer shall not be considered a party thereto with a 
9 
concomitant right to oppose a petition for certification election. The employer’s 
10 
participation in such proceedings shall be limited to: (1) being notified or informed of 
11 
petitions of such nature, and (2) submitting the list of employees during the pre-election 
12 
conference should the med-arbiter act favorable on the request.  
13 
*ART. 278. Appeal of Certification Election Results - Any legitimate labor 
14 
organization which is a party to a certification election may appeal the results of the 
15 
election to the Bureau on the ground that the rules and regulations or parts thereof 
16 
established by the Secretary of Labor and Employment for the conduct of the election 
17 
have been violated. Such appeal shall be decided within fifteen (15) calendar days.  The 
18 
decision of the Bureau shall be final and executory.  
19 
 
Title VII-A 
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION 
 
ART. 279.  Grievance Machinery and Voluntary Arbitration. – The parties to a 
20 
collective bargaining agreement shall include therein provisions that will ensure the 
21 


 
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mutual observance of its terms and conditions. They shall establish machinery for the 
1 
adjustment and resolution of grievances arising from the interpretation or implementation 
2 
of their collective bargaining agreement and those arising from the interpretation or 
3 
enforcement of company personnel policies.  
4 
All grievances submitted to the grievance machinery which are not settled within 
5 
seven (7) calendar days from the date of its submission shall automatically be referred to 
6 
voluntary arbitration prescribed in the collective bargaining agreement.  
7 
**For this purpose, parties to a collective bargaining agreement shall name and 
8 
designate in advance a voluntary arbitrator or panel of voluntary arbitrators, or include in 
9 
the agreement a procedure for the selection of such voluntary arbitrator or panel of 
10 
voluntary arbitrators, preferably from the listing of qualified Voluntary Arbitrators duly 
11 
accredited by the Board. In case the parties fail to name and designate a Voluntary 
12 
Arbitrator or panel of Voluntary Arbitrators, the Board shall, upon request by any of the 
13 
parties, designate the Voluntary Arbitrator or panel of Voluntary Arbitrators which shall 
14 
act with the same force and effect as if the voluntary arbitrator or panel of voluntary 
15 
arbitrators has  been so named and designated.  
16 
**ART. 280. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary 
17 
Arbitrators. - The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have 
18 
original and exclusive jurisdiction to hear and decide all unresolved grievances arising 
19 
from the interpretation or implementation of the Collective Bargaining Agreement and 
20 
those arising from the interpretation or enforcement of company personnel policies 
21 
referred to in the immediately preceding Article, including cases of termination of 
22 
workers covered by collective bargaining agreements, productivity schemes or wage 
23 
increases.  Accordingly, violations of a Collective Bargaining Agreement, except those 
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which are gross in character, shall no longer be treated as unfair labor practice and shall 
1 
be resolved as grievances under the Collective Bargaining Agreement. For purposes of 
2 
this Article, gross violations of a Collective Bargaining Agreement shall mean flagrant 
3 
and/or malicious refusal to comply with the economic provisions of such agreement.  
4 
The Commission, its Regional Offices and the Regional Directors of the 
5 
Department of Labor and Employment shall not entertain disputes, grievances or matters 
6 
under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of 
7 
Voluntary Arbitrators and shall immediately dispose and refer the same to the grievance 
8 
machinery or voluntary arbitration provided in the collective bargaining agreement.  
9 
ART. 281. Jurisdiction Over Other Labor Disputes. - The voluntary arbitrator or 
10 
panel of voluntary arbitrators, upon agreement of the parties, shall also hear and decide 
11 
all other labor disputes including unfair labor practices and bargaining deadlocks.  
12 
ART. 282. Procedures. - The voluntary arbitrator or panel of voluntary arbitrators 
13 
shall have the power to hold hearings, receive evidences and take whatever action is 
14 
necessary to resolve the issue or issues subject of the dispute, including efforts to effect a 
15 
voluntary settlement between parties. 
16 
 All parties to the dispute shall be entitled to attend the arbitration proceedings. 
17 
The attendance of any third party or the exclusion of any witness from the proceedings 
18 
shall be determined by the voluntary arbitrator or panel of voluntary arbitrators. Hearings 
19 
may be adjourned for cause or upon agreement by the parties.  
20 
**Unless the parties agree otherwise, it shall be mandatory for the voluntary 
21 
arbitrator or panel of voluntary arbitrators to render an award or decision within twenty 
22 
(20) calendar days from the date of submission of the dispute to voluntary arbitration. 
23 
Failure on his/her  or their part to render an award or decision within such prescribed 
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period shall be sufficient cause for the board to remove their names from the list of 
1 
accredited  Voluntary Arbitrators and bar them from the practice of the profession; 
2 
moreover, in such cases, it shall be unlawful for the voluntary arbitrator or panel of 
3 
voluntary arbitrators to refuse or fail to turn over to the board the records of the case 
4 
within ten (10) calendar days after its demand for the same for further disposition in 
5 
accordance with the provisions of the preceding paragraph. 
6 
The award or decision of the Voluntary Arbitrator or panel of Voluntary 
7 
Arbitrators shall contain the facts and the law on which it is based. It shall be final and 
8 
executory after ten (10) calendar days from receipt of the copy of the award or decision 
9 
by the parties.  
10 
Upon motion of any interested party, the Voluntary Arbitrator or panel of 
11 
Voluntary Arbitrators or the Labor Arbiter in the region where the movant resides, in 
12 
case of the absence or incapacity of the Voluntary Arbitrator or panel of Voluntary 
13 
Arbitrators for any reason, may issue a writ of execution requiring either the sheriff of the 
14 
Commission or regular courts or any public official whom the parties may designate in 
15 
the submission agreement to execute the final decision, order or award.   
16 
**ART. 283. Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. - 
17 
The cost of Voluntary Arbitration including the Voluntary Arbitrator's fee shall be borne 
18 
by the Special Voluntary Arbitration Fund to be supplemented by the appropriations of 
19 
the budget of the Board, if necessary. The fixing of the fee of Voluntary Arbitrators or 
20 
panel of Voluntary Arbitrators shall be made in accordance with the guidelines issued by 
21 
the Board upon recommendation of the Council and approved by the Secretary of Labor 
22 
and Employment, and shall take into account the following factors:  
23 
(a) Nature of the case;  
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(b)Time consumed in hearing the case;  
1 
(c) Professional standing of the voluntary arbitrator; and 
2 
(d) Fees provided for in the Revised Rules of Court.   
3 
 
 
Title VIII 
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
 
Chapter I 
STRIKES AND LOCKOUTS 
 
ART. 284.  Strikes, Picketing and Lockouts. - *(a) It is the policy of the State to 
4 
encourage free trade unionism and free collective bargaining.  
5 
*(b) Workers shall have the right to engage in concerted activities for purposes of 
6 
collective bargaining or for their mutual benefit and protection. The right of legitimate 
7 
labor organizations to strike and picket and of employers to lockout, consistent with the 
8 
national interest, shall continue to be recognized and respected. However, no labor union 
9 
may strike and no employer may declare a lockout on grounds involving inter-union and 
10 
intra-union disputes.  
11 
(c) In cases of bargaining deadlocks, the duly certified or recognized bargaining 
12 
agent may file a notice of strike or the employer may file a notice of lockout with the 
13 
Department at least thirty (30) days before the intended date thereof. In cases of unfair 
14 
labor practice, the period of notice shall be fifteen (15) days and in the absence of a duly 
15 
certified or recognized bargaining agent, the notice of strike may be filed by any 
16 
legitimate labor organization in behalf of its members. However, in case of dismissal 
17 
from employment of union officers duly elected in accordance with the union constitution 
18 
and by-laws, which may constitute union busting where the existence of the union is 
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threatened, the 15-day cooling-off period shall not apply and the union may take action 
1 
immediately.  
2 
*(d) The notice must be in accordance with such implementing rules and 
3 
regulations as the Secretary of Labor and Employment may promulgate.  
4 
*(e) During the cooling-off period, it shall be the duty of the Department to exert 
5 
all efforts at mediation and conciliation to effect a voluntary settlement. Should the 
6 
dispute remain unsettled until the lapse of the requisite number of days from the 
7 
mandatory filing of the notice, the labor union may strike or the employer may declare a 
8 
lockout.  
9 
            (f) A decision to declare a strike must be approved by a majority of the total union 
10 
membership in the bargaining unit concerned, obtained by secret ballot in meetings or 
11 
referenda called for that purpose. A decision to declare a lockout must be approved by 
12 
majority of the board of directors of the corporation or association or of the partners in a 
13 
partnership, obtained by secret ballot in a meeting called for that purpose. The decision 
14 
shall be valid for the duration of the dispute based on substantially the same grounds 
15 
considered when the strike or lockout vote was taken. The Department may, at its own 
16 
initiative or upon the request of any affected party, supervise the conduct of the secret 
17 
balloting. In every case, the union or the employer shall furnish the Department the 
18 
results of the voting at least seven days before the intended strike or lockout, subject to 
19 
the cooling-off period herein provided.  
20 
            (g) When there exists a labor dispute causing or likely to cause a strike or lockout 
21 
in an enterprise engaged in providing essential services such as, hospital, electrical 
22 
services, water supply and communication and transportation, the Secretary of Labor and 
23 
Employment may assume jurisdiction over the dispute and decide it or certify the same 
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to the Commission for compulsory arbitration.  Such assumption or certification shall 
1 
have the effect of automatically enjoining the intended or impending strike or lockout as 
2 
specified in the assumption or certification order. If one has already taken place at the 
3 
time of assumption or certification, all striking or locked out employees shall 
4 
immediately return to work and the employer shall immediately resume operations and 
5 
readmit all workers under the same terms and conditions prevailing before the strike or 
6 
lockout. The Secretary of Labor and Employment or the Commission may seek the 
7 
assistance of law enforcement agencies to ensure compliance with this provision as well 
8 
as with such orders as he may issue to enforce the same.  
9 
            In line with the national concern for and the highest respect accorded to the right 
10 
of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical 
11 
institutions shall, to every extent possible, be avoided, and all serious efforts, not only by 
12 
labor and management but government as well, be exhausted to substantially minimize, if 
13 
not prevent, their adverse effects on such life and health, through the exercise, however 
14 
legitimate, by labor of its right to strike and by management to lockout. In labor disputes 
15 
adversely affecting the continued operation of such hospitals, clinics or medical 
16 
institutions, it shall be the duty of the striking union or locking-out employer to provide 
17 
and maintain an effective skeletal workforce of medical and other health personnel, 
18 
whose movement and services shall be unhampered and unrestricted, as are necessary to 
19 
insure the proper and adequate protection of the life and health of its patients, most 
20 
especially emergency cases, for the duration of the strike or lockout. In such cases, 
21 
therefore, the Secretary of Labor and Employment may immediately assume, within 
22 
twenty four (24) hours from knowledge of the occurrence of such a strike or lockout, 
23 
jurisdiction over the same or certify it to the Commission for compulsory arbitration. For 
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this purpose, the contending parties are strictly enjoined to comply with such orders, 
1 
prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment 
2 
or the Commission, under pain of immediate disciplinary action, including dismissal or 
3 
loss of employment status or payment by the locking-out employer of backwages, 
4 
damages and other affirmative relief, even criminal prosecution against either or both of 
5 
them.  
6 
            The foregoing notwithstanding, the President of the Philippines shall not be 
7 
precluded from determining the enterprises that, in his opinion, are engaged in providing 
8 
essential services and from intervening at any time and assuming jurisdiction over any 
9 
labor dispute in such enterprises in order to settle or terminate the same.  
10 
(h) Before or at any stage of the compulsory arbitration process, the parties may 
11 
opt to submit their dispute to voluntary arbitration. At the instance of a union or an 
12 
employer who has taken all the required steps for the declaration of a strike or a lockout 
13 
respectively, in lieu of said union actually going on strike or such employer actually 
14 
declaring a lockout, either party may request the Secretary of labor and Employment to 
15 
assume jurisdiction over the labor dispute. 
16 
(i) The Secretary of Labor and Employment, the Commission or the voluntary 
17 
arbitrator or panel of voluntary arbitrators shall decide or resolve the dispute within 
18 
thirty (30) calendar days from the date of the assumption of jurisdiction or the 
19 
certification or submission of the dispute, as the case may be. The decision of the 
20 
President, the Secretary of Labor and Employment, the Commission or the voluntary 
21 
arbitrator or panel of voluntary arbitrators shall be final and executory ten (10) calendar 
22 
days after receipt thereof by the parties.  
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ART. 285. Prohibited Activities. - *(a) No labor organization or employer shall 
1 
declare a strike or lockout without first having bargained collectively in accordance with 
2 
Title VII of this Book or without first having filed the notice required in the preceding 
3 
Article or without the necessary strike or lockout vote first having been obtained and 
4 
reported to the Department.  
5 
No strike or lockout shall be declared after assumption of jurisdiction by the 
6 
President or the Secretary or after certification or submission of the dispute to 
7 
compulsory or voluntary arbitration or during the pendency of cases involving the same 
8 
grounds for the strike or lockout.  
9 
  
Any worker whose employment has been terminated as a consequence of an 
10 
unlawful lockout shall be entitled to reinstatement with full back wages. Any union 
11 
officer who knowingly participates in an illegal strike and any worker or union officer 
12 
who knowingly participates in the commission of illegal acts during a strike may be 
13 
declared to have lost his employment right: Provided, That mere participation of a worker 
14 
in a lawful strike shall not constitute sufficient ground for termination of his employment, 
15 
even if a replacement had been hired by the employer during such lawful strike.  
16 
*(b) No person shall obstruct, impede or interfere with by force, violence, 
17 
coercion, threats or intimidation any peaceful picketing by employees during any labor 
18 
controversy or in the exercise of the right of self-organization or collective bargaining or 
19 
shall aid or abet such obstruction or interference.  
20 
(c) No employer shall use or employ any strike-breaker nor shall any person be 
21 
employed as a strike-breaker. 
22 
*(d) No public official or employee, including officers and personnel of the New 
23 
Armed Forces of the Philippines or the Integrated National Police, or armed persons, 
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154
shall bring in, introduce or escort in any manner, any individual who seeks to replace 
1 
strikers in entering or leaving the premises of a strike area, or work in place of the 
2 
strikers. The police force shall keep out of the picket lines unless actual violence or other 
3 
criminal acts occur therein: Provided, That nothing herein shall be interpreted to prevent 
4 
any public officers from taking any measure necessary to maintain peace and order, 
5 
protect life and property, and/or enforce the law and legal order.  
6 
*(e) No person engaged in picketing shall commit any act of violence, coercion or 
7 
intimidation or obstruct the free ingress to or egress from the employer's premises for 
8 
lawful purposes, or obstruct public thoroughfares: Provided, however, That the exercise 
9 
of free ingress to or egress from the employers’ premises shall not be used to take out 
10 
company’s products, machineries and equipments or to bring in new employees for the 
11 
operation of the company.  
12 
(f)  The National Labor Relations Commission shall have the power to enjoin or 
13 
restrain any actual or threatened commission of any or all prohibited or unlawful acts or 
14 
to require the performance of a particular act in any labor dispute which, if not restrained 
15 
or performed forthwith, may cause grave or irreparable damage to any party: Provided, 
16 
That no temporary or permanent injunction in any case involving or growing out of a 
17 
labor dispute as defined in this Code shall be issued except after hearing the testimony of 
18 
witnesses, with opportunity for cross-examination, in support of the allegations of a 
19 
complaint made under oath, and testimony in opposition thereto, if offered, and only after 
20 
a finding of fact by the Commission, to the effect:  
21 
(1) That prohibited or unlawful acts have been threatened and will be 
22 
committed and will be continued unless restrained, or have been committed and 
23 
will be continued unless restrained, but no injunction or temporary restraining 
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155
order shall be issued on account of any threat, prohibited or unlawful act, except 
1 
against the person or persons, association or organization making the threat or 
2 
committing the prohibited or unlawful act or actually authorizing or ratifying the 
3 
same after actual knowledge thereof;  
4 
(2) That substantial and irreparable injury to complainant's property will 
5 
follow;  
6 
 (3) That, as to each item of relief to be granted, greater injury will be 
7 
inflicted upon complainant by the denial of relief than will be inflicted upon 
8 
defendants by the granting of relief;  
9 
(4) That complainant has no adequate remedy at law; and  
10 
 (5) That the public officers charged with the duty to protect complainant's 
11 
property are unable or unwilling to furnish adequate protection.  
12 
Such hearing shall be held after due and personal notice thereof has been served, 
13 
in such manner as the Commission shall direct, to all known persons against whom relief 
14 
is sought, and also to the Chief Executive and other public officials of the province or 
15 
city within which the unlawful acts have been threatened or committed charged with the 
16 
duty to protect complainant's property: Provided, however, That if a complainant shall 
17 
also allege that, unless a temporary restraining order shall be issued without notice, a 
18 
substantial and irreparable injury to complainant's property will be unavoidable, such a 
19 
temporary restraining order may be issued upon testimony under oath, sufficient, if 
20 
sustained, to justify the Commission in issuing a temporary injunction upon hearing after 
21 
notice. Such a temporary restraining order shall be effective for no longer than twenty 
22 
(20) days and shall become void at the expiration of said twenty (20) days. No such 
23 
temporary restraining order or temporary injunction shall be issued except on condition 
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156
that complainant shall first file an undertaking with adequate security in an amount to be 
1 
fixed by the Commission sufficient to recompense those enjoined for any loss, expense or 
2 
damage caused by the improvident or erroneous issuance of such order or injunction, 
3 
including all reasonable costs, together with a reasonable attorney's fee, and expense of 
4 
defense against the order or against the granting of any injunctive relief sought in the 
5 
same proceeding and subsequently denied by the Commission.  
6 
The undertaking herein mentioned shall be understood to constitute an agreement 
7 
entered into by the complainant and the surety upon which an order may be rendered in 
8 
the same suit or proceeding against said complainant and surety, upon a hearing to assess 
9 
damages, of which hearing complainant and surety shall have reasonable notice, the said 
10 
complainant and surety submitting themselves to the jurisdiction of the Commission for 
11 
that purpose. But nothing herein contained shall deprive any party having a claim or 
12 
cause of action under or upon such undertaking from electing to pursue his ordinary 
13 
remedy by suit at law or in equity: Provided, further, That the reception of evidence for 
14 
the application of a writ of injunction may be delegated by the Commission to any of its 
15 
Labor Arbiters who shall conduct such hearings in such places as he may determine to be 
16 
accessible to the parties and their witnesses and shall submit thereafter his 
17 
recommendation to the Commission.  
18 
ART. 286. Improved Offer Balloting. - In an effort to settle a strike, the 
19 
Department of Labor and Employment shall conduct a referendum by secret balloting on 
20 
the improved offer of the employer on or before the 15th day of the strike. When at least 
21 
a majority of the union members vote to accept the improved offer, the striking workers 
22 
shall immediately return to work and the employer shall thereupon readmit them upon the 
23 
signing of the agreement.  
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In case of a lockout, the Department of Labor and Employment shall also conduct 
1 
a referendum by secret balloting on the reduced offer of the union on or before the 30th 
2 
day of the lockout. When at least a majority of the board of directors or trustees or the 
3 
partners holding the controlling interest in the case of a partnership vote to accept the 
4 
reduced offer, the workers shall immediately return to work and the employer shall 
5 
thereupon readmit them upon the signing of the agreement.   
6 
 
Title VIII - STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
 
Chapter II 
ASSISTANCE TO LABOR ORGANIZATIONS 
 
 
ART. 287. Assistance by the Department of Labor and Employment. - The 
7 
Department of Labor and Employment, at the initiative of the Secretary of Labor and 
8 
Employment, shall extend special assistance to the organization for purposes of collective 
9 
bargaining of the most underprivileged workers who, for reasons of occupation, 
10 
organizational structure or insufficient incomes are not normally covered by major labor 
11 
organizations or federations.  
12 
ART. 288.  Assistance by the Institute for Labor and Manpower Studies. - The 
13 
Institute for Labor and Manpower Studies shall render technical and other forms of 
14 
assistance to labor organizations and employer organizations in the field of labor 
15 
education, especially pertaining to collective bargaining, arbitration, labor standards and 
16 
the Labor Code of the Philippines in general.  
17 
 
Title VIII - STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
 


 
158
Chapter III 
FOREIGN ACTIVITIES 
 
ART. 289. Prohibition against Aliens; Exceptions. - All alien, natural or 
1 
juridical, as well as all foreign organizations are strictly prohibited from engaging 
2 
directly or indirectly in all forms of trade union activities without prejudice to normal 
3 
contacts between Philippine labor unions and recognized international labor centers: 
4 
Provided, however, That aliens working in the country with valid permits issued by the 
5 
Department of Labor and Employment may exercise the right to self-organization and 
6 
join or assist labor organizations of their own choosing for purposes of collective 
7 
bargaining: Provided, further, That said aliens are nationals of a country which grants the 
8 
same or similar rights to Filipino workers.              
9 
*ART. 290. Regulation of Foreign Assistance. - (a) No foreign individual, 
10 
organization or entity may give any donations, grants or other forms of assistance, in cash 
11 
or in kind, directly or indirectly, to any labor organization, group of workers or any 
12 
auxiliary thereof, such as cooperatives, credit unions and institutions engaged in research, 
13 
education or communication, in relation to trade union activities without prior permission 
14 
by the Secretary of Labor and Employment.  
15 
"Trade union activities" shall mean:  
16 
      
 
(1) Organization, formation and administration of labor organizations;  
17 
       
 
(2) Negotiation and administration of collective bargaining agreements;  
18 
      
 
 (3) All forms of concerted union action;  
19 
       
(4) Organizing, managing or assisting union conventions, meetings, 
20 
rallies, referenda, teach-ins, seminars, conferences and institutes;  
21 


 
159
(5) Any form of participation or involvement in representation 
1 
proceedings, representation elections, consent elections, union elections; and  
2 
     
  
 (6) Other activities or actions analogous to the foregoing. 
3 
(b) This prohibition shall equally apply to foreign donations, grants or other forms 
4 
of assistance, in cash or in kind, given directly or indirectly to any employer or 
5 
employer's organization to support any activity or activities affecting trade unions.  
6 
(c) The Secretary of Labor and Employment shall promulgate rules and 
7 
regulations to regulate and control the giving and receiving of such donations, grants, or 
8 
other forms of assistance, including the mandatory reporting of amounts of donations or 
9 
grants, the specific recipients thereof, the projects or activities proposed to be supported 
10 
and their duration.                           
11 
ART.  291.  Applicability to Farm Tenants and Rural Workers - The provisions 
12 
of this Title pertaining to foreign organizations and activities shall be deemed applicable 
13 
to all organizations of farm tenants, rural workers and the like, provided that in 
14 
appropriate cases the Secretary of Agrarian Reform shall exercise the powers and 
15 
responsibilities vested by this Title in the Secretary of Labor and Employment. 
16 
 
Title VIII - STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
 
Chapter IV 
PENALTIES FOR VIOLATION 
 
ART. 292.  Penalties. - (a) Any person violating any of the provisions of Article 
17 
280 of this Code shall be punished by a fine of not less than Ten Thousand Pesos (P10, 
18 
000.00) nor more than One Hundred Thousand Pesos (P100, 000.00) and/or 
19 
imprisonment for not less than three (3) years nor more than six (6) years, or both such 
20 


 
160
fine and imprisonment, at the discretion of the court. Prosecution under this provision 
1 
shall preclude prosecution for the same act under the Revised Penal Code, and vice versa.  
2 
(b) Upon the recommendation of the Secretary of Labor and Employment and the 
3 
Secretary of National Defense, foreigners who violate the provisions of this Title shall be 
4 
subject to immediate and summary deportation by the Commission on Immigration and 
5 
Deportation and shall be permanently barred from re-entering the country without the 
6 
special permission of the President of the Philippines.  
7 
 
Title IX - SPECIAL PROVISIONS 
 
ART.  293. Study of Labor-Management Relations. - The Secretary of Labor 
8 
and Employment shall have the power and it shall be his duty to inquire into:  
9 
(a) The existing relations between employers and employees in the Philippines;   
10 
(b) The growth of associations of employees and the effect of such associations 
11 
upon employer-employee relations;  
12 
(c) The extent and results of the methods of collective bargaining in the 
13 
determination of terms and conditions of employment;  
14 
(d) The methods which have been tried by employers and associations of 
15 
employees for maintaining mutually satisfactory relations;  
16 
(e) Desirable industrial practices which have been developed through collective 
17 
bargaining for settling differences;  
18 
(f) The possible ways of increasing the usefulness and efficiency of collective 
19 
bargaining for settling differences;    
20 
(g) The possibilities for the adoption of practical and effective methods of labor-
21 
management cooperation;  
22 


 
161
(h) Any other aspects of employer-employee relations concerning the promotion 
1 
of harmony and understanding between the parties; and  
2 
(i) The relevance of labor laws and labor relations to national development.  
3 
The Secretary of Labor and Employment shall also inquire into the causes of 
4 
industrial unrest and take all the necessary steps within his powers as may be prescribed 
5 
by law to alleviate the same, and shall from time to time recommend the enactment of 
6 
such remedial legislation as in his judgment may be desirable for the maintenance and 
7 
promotion of industrial peace.  
8 
ART. 294. Miscellaneous Provisions. - (a) The Secretary of Labor and 
9 
Employment and the Secretary of the Budget shall cause to be created or reclassified in 
10 
accordance with law such positions as may be necessary to carry out the objectives of this 
11 
Code and cause the upgrading of the salaries of the personnel involved in the Labor 
12 
Relations System of the Department. Funds needed for this purpose shall be provided out 
13 
of the Special Activities Fund appropriated by Batas Pambansa Blg. 80 and from annual 
14 
appropriation thereafter.  
15 
(b) A Special Voluntary Arbitration Fund is hereby established in the Board to 
16 
subsidize the cost of voluntary arbitration in cases involving the interpretation and 
17 
implementation of the Collective Bargaining Agreement, including the Arbitrator's fees, 
18 
and for such other related purposes to promote and develop voluntary arbitration. The 
19 
Board shall administer the Special Voluntary Arbitration Fund in accordance with the 
20 
guidelines it may adopt upon the recommendation of the Council, which guidelines shall 
21 
be subject to the approval of the Secretary of Labor and Employment. Continuing funds 
22 
needed for this purpose in the initial yearly amount of Fifteen Million Pesos (P15, 
23 
000,000.00) shall be provided in the annual General Appropriations Act. The amount of 
24 


 
162
subsidy in appropriate cases shall be determined by the Board in accordance with 
1 
established guidelines issued by it upon the recommendation of the Council. The Fund 
2 
shall also be utilized for the operation of the Council, the training and education of 
3 
Voluntary Arbitrators, and the Voluntary Arbitration Program. 
4 
(c) The Department of Labor and Employment shall help promote and gradually 
5 
develop, with the agreement of labor organizations and employers, labor-management 
6 
cooperation programs at appropriate levels of the enterprise based on shared 
7 
responsibility and mutual respect in order to ensure industrial peace and improvement in 
8 
productivity, working conditions and the quality of working life.  
9 
(d) In establishments where no legitimate labor organization exists, labor-
10 
management committees may be formed voluntarily by workers and employers for the 
11 
purpose of promoting industrial peace. The DOLE shall endeavor to enlighten and 
12 
educate the workers and employees on their rights and responsibilities through labor 
13 
education with emphasis on the policy thrusts of this Code.  
14 
 
BOOK SIX 
POST EMPLOYMENT 
 
Title I - TERMINATION OF EMPLOYMENT 
 
ART. 295. Coverage. - The provisions of this Title shall apply to all 
15 
establishments or undertakings, whether for profit or not.  
16 
ART. 296.  Security of Tenure. -  No employer shall terminate the services of an 
17 
employee except for a just cause or when authorized by this Title.  A regular  employee  
18 
who  is dismissed  from  work without just or authorized cause shall  be  entitled  to 
19 
reinstatement  without  loss of  seniority  rights  and other  privileges and to his full back 
20 


 
163
wages,  inclusive of  allowances,  and  to his other  benefits  or  their monetary   
1 
equivalent  computed  from  the   time   his      compensation  was withheld from him up 
2 
to the  time  of his actual reinstatement. If the employee illegally dismissed is temporary, 
3 
he shall be entitled to a full salary for the unexpired portion of the agreed period and 
4 
unpaid benefits. In every case of illegal dismissal or termination the employer is liable for 
5 
damages and litigation costs. The term "employer" includes a contractor or subcontractor.  
6 
ART.  297.  Regular and Temporary Employment. -  The provisions   of  written  
7 
agreement  to  the   contrary notwithstanding and regardless of the oral agreement of the  
8 
parties,  an  employment shall  be  deemed  to  be regular or for an indefinite period 
9 
where the employee has been engaged to  perform activities which are usually necessary 
10 
or desirable  in the  usual  business or trade of the  employer.   
11 
Employment is temporary or for a definite period and may be terminated at the 
12 
end of the period,   where  the  employment has been fixed  for  a  specific project or 
13 
undertaking the completion or termination of which has been determined at the time of 
14 
the engagement of  the  employee; where the work or services  to  be performed  is 
15 
seasonal in nature and the employment  is for the duration of the season; or where both 
16 
the employer and the employee freely and knowingly enter into a term employment 
17 
contract in view of the temporary nature of the task or job. 
18 
The requirements of law intended to protect security of tenure and the exercise of 
19 
the right to self-organization are applicable to regular as well as temporary employees for 
20 
the duration of their employment.  
 
 
 
 
21 
**ART. 298.  Probationary Employment. -  Regardless of the nature of the work 
22 
to be performed, probationary employment shall not exceed six (6) months from the first 
23 
day of service for all workers, including teachers in both the public and private schools.  
24 


 
164
Any stipulation to the contrary shall be void. The services of an employee  who  has been 
1 
engaged on a probationary basis may be terminated for a just  cause  or when he fails to 
2 
qualify as  a  regular employee  in accordance with reasonable standards  made known  
3 
by the employer to the employee at the  time  of his  engagement.  An employee who is 
4 
allowed to work after a probationary period whether broken or not shall be considered a 
5 
regular employee.  
6 
ART. 299. Termination by Employer. - An employer may terminate an 
7 
employment for any of the following causes:  
 
8 
(a)  Serious misconduct or willful disobedience by the employee of the lawful 
9 
orders of his employer or representative in connection with his work; 
 
10 
(b)  Gross and habitual neglect by the employee of his duties; 
 
11 
(c)  Fraud or willful breach by the employee of the trust reposed in him by his 
12 
employer or duly authorized representative;  
13 
(d)  Commission  of  a crime or  offense  by  the employee  against  the person of 
14 
his  employer  or  any immediate  member of his family or his duly  authorized 
15 
representative; and 
16 
(e)  Other causes analogous to the foregoing. 
17 
Subject to the constitutional right of workers  to security  of  tenure and their right  
18 
to  be  protected against  dismissal  except for a  just  and  authorized cause  and  without  
19 
prejudice to  the  requirement  of notice  under  Article 296 of this  Code  the  employer 
20 
shall furnish the worker whose employment is sought to be  terminated a written notice 
21 
containing a  statement of  the  causes for termination and  shall  afford  the latter  ample  
22 
opportunity to be heard  and  to  defend himself  with the assistance of his  representative  
23 
if he so  desires in accordance with  company  rules  and regulations  promulgated 
24 


 
165
pursuant to guidelines set  by the  DOLE.  Any decision taken by the employer shall be 
1 
without prejudice to the right of the worker to contest the validity or legality of his 
2 
dismissal by filing a complaint with the regional branch of the National Labor Relations 
3 
Commission.  The burden of proving that the termination was for a valid or authorized 
4 
cause shall rest on the employer.  The Secretary of  Labor and Employment may  suspend  
5 
the effects of  the  termination  pending  resolution of the dispute in the event of a prima 
6 
facie finding  by the appropriate official of the  DOLE before whom such  dispute  is 
7 
pending that the termination may cause a serious  labor dispute or is in implementation of 
8 
a mass lay-off.   
9 
ART. 300. Closure of Establishment and Reduction of Personnel. – The 
10 
employer may also terminate the employment of any employee due to the installation of 
11 
labor  saving  devices,  redundancy,  retrenchment   to prevent losses or the closing or 
12 
cessation of operation of the establishment or undertaking unless the  closing is  for the 
13 
purpose of circumventing the provisions  of this Title, by serving a written notice on the  
14 
workers and  the DOLE at  least two (2) months before the  intended date thereof.  In any 
15 
of these cases, the worker affected thereby shall be entitled to a separation pay equivalent 
16 
to at least one (1) month pay or to at least one (1) month pay for every year of service, 
17 
whichever is higher.  In case of retrenchment to prevent  losses and in cases of closures or 
18 
cessation of operations  of establishment   or  undertaking  not  due  to   serious business  
19 
losses or financial reverses, the  separation pay  shall be equivalent to a minimum of one 
20 
(1)  month pay for every year of service.  A fraction of at least six (6) months shall be 
21 
considered one (1) whole year. Retrenchment requires proof of actual losses or declining 
22 
revenues of substantial proportion.  
23 


 
166
ART. 301. Disease as Ground for Termination. – An employer may terminate 
1 
the services of an employee who has been found to be suffering from any disease and 
2 
whose continued employment is prohibited by law or is prejudicial to his health as well 
3 
as to the health of his co-employees, as certified to by the company physician or a 
4 
physician of the Employee's Compensation Commission or the Social Security System; 
5 
Provided, That he is paid separation pay equivalent to at least one (1) month salary or to 
6 
one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at 
7 
least six (6) months being considered as one (1) whole year.  
8 
ART. 302. Termination by Employee.- (a) An employee may terminate without 
9 
just cause the employee-employer relationship by serving a written notice on the 
10 
employer at least one month in advance. The employer upon whom no such notice was 
11 
served may hold the employee liable for damages. 
12 
(b) An employee may put an end to the relationship without serving any notice on 
13 
the employer for any of the following just causes:  
14 
(1) 
Serious insult by the employer or his representative on the honor 
15 
and person of the employee;  
16 
(2) 
Inhuman and unbearable treatment accorded the employee by the 
17 
employer or his representative;  
18 
(3) 
Commission of a crime or offense by the employer or his 
19 
representative against the person of the employee or any of the immediate 
20 
members of his family; and  
21 
       
(4) 
Other causes analogous to any of the foregoing.          
22 
ART. 303. When Employment Not Deemed Terminated. - The bona fide 
23 
suspension of the operation of a business or undertaking for a period not exceeding six 
24 


 
167
months, or the fulfillment by the employee of a military or civic duty shall not terminate 
1 
employment. In all such cases, the employer shall reinstate the employee to his former 
2 
position without loss of seniority rights if he indicates his desire to resume his work not 
3 
later than one month from the resumption of operations of his employer or from his relief 
4 
from the military or civic duty.  
5 
ART. 304.  Merger or Consolidation of Employer Corporations.  -   Where two 
6 
(2) or more corporations merge or consolidate into a single corporation, the surviving or 
7 
consolidated corporation shall be responsible for all the liabilities and obligations of each 
8 
of the constituent corporations in the same manner as if such surviving or consolidated 
9 
corporation had itself incurred such liabilities or obligations.  Any pending claim, action 
10 
or proceeding brought by the employees against any of such constituent corporations may 
11 
be prosecuted against the surviving or consolidated corporation. The rights of employees, 
12 
including those arising from collective bargaining agreements, their security of tenure 
13 
and seniority rights, or any of such constituent corporations shall continue to be respected 
14 
by the surviving or consolidated corporation, and not be impaired by such merger or 
15 
consolidation. 
16 
In the case of a merger of corporations, each of which has an exclusive bargaining 
17 
agent, the exclusive bargaining agent of the surviving corporation shall be the exclusive 
18 
bargaining agent of all the employees of the merged bargaining units. In the case of a 
19 
consolidation of corporations, each of which has an exclusive bargaining agent, the 
20 
exclusive bargaining agent at the consolidated bargaining units shall be determined by 
21 
certification elections.  
22 
 
Title II - RETIREMENT FROM THE SERVICE 
 


 
168
ART. 305. Retirement. - Any employee may be retired upon reaching the 
1 
retirement age established in the collective bargaining agreement or other applicable 
2 
employment contract. In case of retirement, the employee shall be entitled to receive such 
3 
retirement benefits as he may have earned under existing laws and any collective 
4 
bargaining or other agreements: Provided, however, That an employee's retirement 
5 
benefits under any collective bargaining and other agreements shall not be less than those 
6 
provided herein.  
7 
In the absence of a retirement plan or agreement providing for retirement benefits 
8 
of employees in the establishment, an employee upon reaching the age of sixty (60) years 
9 
or more, but not beyond sixty-five (65) years which is hereby declared the compulsory 
10 
retirement age, who has served at least five (5) years in the said establishment, may retire 
11 
and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary 
12 
for every year of service, a fraction of at least six (6) months being considered as one 
13 
whole year.  
14 
Unless the parties provide for broader inclusions, the term "one half (1/2) month" 
15 
salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the 
16 
cash equivalent of not more than five (5) days of service incentive leaves. Retail, service 
17 
and agricultural establishments or operations employing not more than ten (10) 
18 
employees or workers are exempted from the coverage of this provision. 
19 
Violation of this provision is hereby declared unlawful and subject to the penal 
20 
provisions under Article 301 of this Code.     
21 
  
BOOK SEVEN 
TRANSITORY AND FINAL PROVISIONS 
 


 
169
Title I - PENAL PROVISIONS AND LIABILITIES 
 
ART. 306. Penalties. - Except as otherwise provided in this Code, or unless the 
1 
act complained of hinges on a question of interpretation or implementation of ambiguous 
2 
provisions of an existing collective bargaining agreement any violation of the provisions 
3 
of this Code declared to be unlawful or penal in nature shall be punished with a fine of 
4 
not less than One Thousand Pesos (P1,000.00)  nor more than Ten Thousand Pesos 
5 
(P10,000.00), or imprisonment of not less than three (3) months nor more than three (3) 
6 
years, or both such fine and imprisonment at the discretion of the court. In addition to 
7 
such penalty, any alien found guilty shall be summarily deported upon completion of 
8 
service of sentence.  
9 
Any provision of law to the contrary notwithstanding, any criminal offense 
10 
punished in this Code shall be under the concurrent jurisdiction of the Municipal or 
11 
Regional Trial Court.  
12 
ART. 307. Who Are Liable When Committed by Other Than Natural Person. - 
13 
If the offense is committed by a corporation, trust, firm, partnership, association or any 
14 
other entity, the penalty shall be imposed upon the guilty officer or officers of such 
15 
corporation, trust, firm, partnership, association or entity.    
16 
 
Title II - PRESCRIPTION OF OFFENSES AND CLAIMS 
 
17 
ART. 308. Offenses. - Offenses penalized under this Code and the rules and 
18 
regulations issued pursuant thereto shall prescribe in three years. All unfair labor 
19 
practices arising from Book V shall be filed with the appropriate agency within one year 
20 
from accrual of such unfair labor practice; otherwise, they shall be forever barred.  
21 


 
170
ART. 309.  Money Claims. - All money claims  arising from  employer-employee 
1 
relations shall be filed within five (5) years from the time the cause of action  accrued, 
2 
otherwise they shall forever be barred.  Employee dismissal actions prescribe in four (4) 
3 
years.  
4 
ART. 310. Institution of Money Claims. - Money claims specified in the 
5 
immediately preceding Article shall be filed before the appropriate entity independently 
6 
of the criminal action that may be instituted in the proper courts. Pending the final 
7 
determination of the merits of money claims filed with the appropriate entity, no civil 
8 
action arising from the same cause of action shall be filed with any court. This provision 
9 
shall not apply to employees’ compensation cases which shall be processed and 
10 
determined strictly in accordance with the pertinent provisions of this Code.  
11 
 
Title III - TRANSITORY AND FINAL PROVISIONS 
 
ART. 311. Application of Law Enacted Prior to this Code. - All actions or 
12 
claims accruing prior to the effectivity of this Code shall be determined in accordance 
13 
with the laws in force at the time of their accrual.  
14 
ART. 312.  Rules and Regulations. - The Department of Labor and Employment 
15 
in consultation with other government agencies charged with the administration and 
16 
enforcement of this Code or any of its parts shall promulgate the necessary implementing 
17 
rules and regulations. Such rules and regulations shall become effective fifteen (15) days 
18 
after announcement of their adoption in newspapers of general circulation. 
19 
ART. 313. Separability Clause - If any provision or part thereof, or the 
20 
application thereof to any person or circumstances, is held invalid, the remainder, or the 
21 


 
171
application of such provision or part to other persons or circumstances, shall not be 
1 
affected thereby. 
2 
ART. 314.  Repealing Clause - Presidential Decree No. 442, otherwise known as 
3 
the Labor Code of the Philippines, is hereby repealed. All provisions of existing laws, 
4 
executive orders, decrees, rules and regulations or any part thereof which are contrary to 
5 
or inconsistent with the provisions of this Code are hereby repealed, amended or 
6 
modified accordingly. 
7 
ART. 315. Date of Effectivity. -  This Code shall take effect fifteen (15) days 
8 
after its publication in the Official Gazette.   
9 
 
Approved.