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INTRODUCED BY SEN. JlNGGOY EJERCITO ESTRADA 
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EXPLANATORY NOTE 
This bill seeks lo establish the New Labor Code of the Philippines And For Other 
Purposes. 
I .  Rationale 
'I. 
.- The Constitutional Mandate on Labor: (Article XIII, Sec. 3, Constitution 
of the Philippines) 
"The State shall afford full protection to labor, local and 
overseas, organized and unorganized, and promote full 
employment and equality of employment opportunities for all. 
"It shall guarantee the rights of all workers to self- 
organization, collective bargaining and negotiations, and 
peaceful concerted activities, including the right to strike in 
accordance with law. They shall be entitled to security of 
tenure, humane conditions of work, and a living wage. They 
shall also participate in policy and decision-making processes 
affecting their rights and benefits as may be provided by law. 
"The State shall promote the principle of shared 
responsibility between workers and employers and the 
preferential use of voluntary modes in settling disputes, 
including conciliation, and shall enforce their mutual 
compliance therewith to foster industrial peace. 
"The State shall regulate the relations between workers and 
employers, recognizing the rights of labor to its just share in 
the fruits of production and the right of enterprises to a 
reasonable returns on investments, and to expansion and 
growth." 
The above-stated Constitutional provision is entirely quoted in Article 3, 
Declaration of Policy, OF the proposed New Labor Code. And foremost, Article 3 will 
reinforce the narrow orientation and coverage of the Constitution to afford full protection 
lo labor based on employer-employee retati0nship.Thi.s change is a significant 
iniprovemeni of the 1974 Labor Code which quoted its Declaration of Policy from 
Section 9 of Arlicle 'I f of the 1973 Constitution of the Philippines, to wit: 
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"Section 9. Declaration of Principles and State Policies - 
The State shall promote a just and dynamic social order that 
will ensure the prosperity and independence of the Nation 
and free the people from poverty through policies that 
provide adequate social services, promote full employment, 
a rising standard of living and improved quality of life for all." 
2. The Challenge of the Ernerqing World Economic Order. 
The Congressional Commission on Labor (LABORCOM) was created by Joint 
Resolution No.31 and signed into law on February 9, 1998, to review and assess the 
state of Philippine Labor in the light of the implementation of the Manila Action Plan of 
the Asia Pacific Economic Cooperation (APEC), and recommend policy, institutional 
arid infrastructural measures to ensure the protection of the rights and promotion of the 
welfare of the workers. The whereas clauses of the Joint Resolution No.31 read: 
"WHEREAS, the workers are the lifeline of the economy; they 
represent the human element - the ,brains and the brawn in the 
transformation of resources, both natural and capital, into goods and 
services in accordance with the needs of the society; 
"WHEREAS, without the workers, capital cannot be translated into 
wealth; it is, by itself, worthless; 
"WHEREAS, what is technology without the worker to operate it; 
what is production process without the worker to execute it; what is 
commodity without the worker to buy and consume it; 
"WHEREAS, the largest component of income of most Filipino 
individuals and families is a return for their skills and knowledge; 
"WHEREAS, for decades, rthe Filipino worker has a comparative 
advanfage in relation to his Asian and African counterpart in terms of 
literacy and skills; he is 
educated and equipped with the know-how 
and communication skills that most big companies ordinarily require; he 
has been bringing in the much-needed dollars into our otherwise wobbly 
economy; 
"WHEREAS, the emerging world economic order has spawned 
structural changes in national economies; trade liberalization, deregulation, 
privatization, and market integration; these current developments have 
fundamentally altered the work environment particularly in Third World 
countries like the Philippines; 
"WHEREAS, because of the mobility of capital and sophisticated 
communications, workers across the globe are now in direct competition, 
competitively underbidding each other, and virtually keeping wages at low 
levels; 
"VVHEREAS, capitalists have adopted "flexible" management 
policies such as subcontracting, casualization of workers, job-sharing 
which have 
engendered an atmosphere of insecurity and 
helplessness in the labor market; 
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“WHEREAS, more and more are now constantly threatened by 
retrenchment, company closures and union busting while not a single 
company has been penalized for a labor law violation.” 
The work OF the Commission was undertaken principally through four Standing 
Committees: (i) Committee on Employment and Productivity; (ii) Committee on Labor 
Relations; (iii) Committee on Labor Standards and Working 
Conditions; and (iv) 
Commitlee on Institutions and Bureaucracy. 
‘I-echnical Working Group, Sectoral and Regional Consultations, and Standing 
Committee Meetings were conducted by each Committee, deliberating on issues and 
problems within their respective areas of concern. Participants to these meetings 
iricluded experts and resource persons from Government, employers and labor sectors 
and 
concerned 
non-government 
organizations. 
The 
results 
of 
these 
meetings/consultations form part of the bases for the Report of each Standing 
Committee, and become the major consideration of the Final Report of the Commission, 
entitled “Human Capital in the Emerging Economy”. The Final Report of the 
Commission was presented to MalacaAang on February 10, 2001, in the presence of 
Congressional leaders. 
The 
four 
Standing Committees (LABORCOM) came out with 
policy 
recommendations as prioritized by the Congressional Oversight Committee on Labor 
and Employment (COCLE) which was created by Concurrent Resolution No. 31 on 
February 2001 and became effective after the term of the LABORCOM expired in June 
2001, io oversee and monitor the implementation of LABORCOM recommendations, as 
well as all programs, projects and activities related to labor, employment and allied 
concern in both the public and private sector. The Committee on Employment and 
Human Resources Development listed 19 policy recommendations, among which are 
the following: 
i) 
ii) 
iii) 
iv) 
Consider apprenticeship as a training modality 
Apprenticeship should be a dual training mode: theoretical education 
and practical training in school. 
Apprenticeship period should be based on the nature of the 
occupation. The length of the period should be determined by a 
Tripartite body and provided for in the apprenticeship agreement. 
To redefine the term “apprentice” as a person undergoing training for 
an approved apprenticeable occupation in an established period 
assured by an apprenticeship agreement. 
Contents of the apprenticeship agreement should be specified in 
details. 
The Committee on Labor Relations made 33 recommendations, among which 
are the following: 
0 
Grievance machinery remains the recommended mechanism for 
dispute settlement. 
Strengthen provisions on social dialogue and promote the concept of 
shared responsibility and tripartism. Promote conciliation and 
mediation as the first level of government intervention and encourage 
best-offer arrangements. 
i i) 
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iii) 
’ 
The rules on the formation and recognition of unions must be 
simplified to avoid costly restraints. Other forms of worker’s 
organization should also be recognized as collective bargaining units. 
iv) 
The registration of trade unions should be made ministerial in the 
DOLE. The resolution of claims of recognition or certification cases 
should be purely administrative and without judicial intervention. 
The development of industry-wide organizations should be promoted. 
Encourage industry-wide bargaining. 
Take measures to ensure workers’ representation and bargaining 
status in the event of a change of management due to takeovers, 
consolidation or mergers. 
Limit the jurisdiction of the Secretary of Labor on disputes involving 
the national interest to disputes involving essential services only as 
defined by the ILO. 
v) 
vi) 
vii) 
The Committee on Labor Standards and Working Conditions listed 11 policy 
recornmendations, They include the following: 
i) 
Policies have to be modified to address the actual situation, the 
participation of children below 14 years of age in paid and unpaid 
labor activities 
Concrete policy guidelines should be instituted for the immediate 
protection and withdrawal of children employed in hazardous 
industries including children in the hotel and entertainment industries. 
Sirengthening the Regional Tripartite Wages and Productivity Boards 
ii) 
iii) 
iv) 
Productivity 
‘The 
Comtnittee 
on 
Institutions 
and 
Bureaucracy 
listed 
16 
policy 
recommendations, Among others, they are as follows: 
i) 
Encourage the Institute of Labor Studies of the DOLE to undertake 
studies that could assist or guide the parties in collective bargaining 
Part of the mandate of the proposed National Employment Plan is the 
maintenance and networking of the Public Employment Service 
Office (PESO); and strengthening OF the Special Program .For 
Employment of Students (SPES) 
DOLE should focus more on worker safety and occupational health 
(preventive) 
ii) 
iii) 
3. gonsiderabkdsubstantial chenqes of P.D. 442. otherwise known as the 
Labor Code of the Philippines, as amended, since its promulaation in 
-- 
1974. 
In Book I, “Pre-employment“, the changes are introduced largely by R.A. 
0042, or the “Migrant Workers Act of 1995” which was approved on June 7, 1995. 
The law affected provisions of Title I of this Book which reflects the policy shift on 
overseas employment from a stop-gap measure in the 80’s to managing the 
outflow of labor, as a matter of employment option. Other significant enactment 
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that modified, superseded or amendedlexisting provisions of this Book is : (i) E.O. 
797, "Reorganizing the Ministry of Labor and Employment, Creating the POEA, as 
amended, by E.O. No. 247 "Reorganizing the POEA 
In Book 11, "Human Resources Development Program", the National 
Manpower and Youth Council (NMYC), was established in 1975 to take charge of 
training and manpower/human resources development. This was changed after 
the Congressional Cornmjftee on Education Report of 1992 identified the 
weaknesses in the 
educational system and manpower training and 
recommended remedial measures. This paved the way to the enactment of R.A. 
7796 or the "TESDA Law" and R.A. 7686 or the "Dual Training System Act of 
1994." These laws reflect the policy shift in the country's human resource 
development program from a purely government undertaking to private sector- 
government partnership. The National Manpower Development Program in this 
Book is taken over by TESDA to achieve a truly world-class and globally 
cornpetitive Filipino workforce. The private sector involvement in the technical- 
vocational training is enhanced further through the "Dual Training System" 
provided for by R.A. 7686. 
In Book 111, "Conditions of Employment," the changes are introduced by 
R.A. 6727 or the "Wage Rationalization Act" which also created the National 
Wages and Productivity Commission (NWPC) and Regional Tripartite Wages 
and Productivity Boards (RMPB). Other changes are introduced by the 
following enactments: (i) R.A. 8188 "Double Indemnity Act", (ii) R.A. 6971 
"Productivity Incentives Act of 1990", (iii) P.D. 851, as amended by Memorandum 
Order No. 28 "13'h Month Pay Law", (iv) R.A. 8424 "Tax Reform Act", (v) R.A. 
8187 "Paternity Leave Act of 1996", (vi) R.A. 7877 "Anti-Sexual Harassment Act 
of 1995 and (vii) R.A. 7610, as amended, by R.A. 7658 "Special Protection of 
Children against Child Abuse, Exploitation and Discrimination Act." 
In Book IV, "Health, Safety and Social Welfare Benefits", recent 
enactments like, R.A. 8282 "Social Security Systems Act of 1997," R.A. 8291 
"GSIS Act of 1997", R.A. 7699 "Limited Portability Scheme," R.A.7742 "Pag-lbig 
Fund", and R.A. 8425, "Social Reform and Poverty Alleviation Act" have 
introduced significant changes on the health, safety and social welfare benefits of 
all workers. f-lence, relevant provisions of these laws are included under this 
Book. 
In Book V, "Labor Relations", most of the changes have been made by 
new laws and have been reflected in the present Labor Code, such as R.A. 6715 
(The New Labor Relations Law); R.A. 7700 "Concurrent Jurisdication Between 
and Among the Is', 2"d and 3rd Divisions of the NLRC" to further ensure the 
speedy disposition of cases; and Section 10 of R.A. 8042 "Migrant Workers AcZ" 
which transferred 'the jurisdiction to hear and decide money claims of OCWs to 
the NLRC from POEA. 
Other enactments are yet to be reflected in this Book, like the 
arnendments on the powers and functions of the Bureau of Labor Relations with 
the creation of the National Conciliation and Mediation Board (NCMB) by E O .  
126 as amended by E.O. 251. The Same E.O. also affected the Institute for Labor 
and Manpower Studies which was transformed into the Institute for Labor Studies 
and its educztion function was transferred to the BLR. 
in Book VI, "Post-Employment", the changes were introduced by R.A. 
6715 "New Labor Relations Law" and R.A. 7641 "New Retirement Law" approved 
on December 9, 1992. The amendments have been integrated but specific to 
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Article 287 on retirement R.A. 8558 introduced an additional paragraph in this 
Article, providing for lower retirement age for underground mine workers. 
In Book VI1 “Transitory and Final Provisions,” majority of the provisions 
cinder this Book have been rendered obsolete with the changes that took place 
since the enactment of this Code. 
The present Labor Code consists of 287 Articles excluding the Articles in 
Book VII, Transitory and Final Provisions, which majority of the provisions have 
been rendered obsolete with the changes that took place since the enactment of 
this Code, Out of these 287 Articles, q06 Articles are being amended, 10 Articles 
are deleted for being repealedhperseded by subsequent laws, orders or 
legislative proposals, 28 Articles are new provisions, and 161 Articles are being 
retained for its present applicability. 
11. Objectives 
The Congressional Oversight Committee on Labor and Employment (COCLE) 
presented the different policy recommendations of the LABORCOM in the Technical 
Consultation Meetings that it had conducted in order to finalize what policy 
recommendations could be inputted into the proposed “New Labor Code”. And taking 
into account the results of the TCM’s, reflecting the views, comments and reactions of 
Government, employer 
and 
labor sectors, 
and 
concerned 
Non-government 
organizations and academe, and the Center for Research and Special Studies (CRSS) 
draft of the Labor Code translating the various LABORCOM recommendations, this bill, 
seek to achieve the following objectives: 
I. In Book One - Pre-employment, among which: (2) Providing a 
more effective regulation of recruitment and placement activities 
with the restoration of the ‘regulatory functions’ of the POEA; and 
(ii) Greater protection and promotion of the rights and welfare of the 
overseas contract workers by securing the best terms and 
conditions of employment for OFWs, establishing a one-stop-shop 
processing centers and imposing a stiffer penalty for illegal 
recruitment as well as, those with a license or authority who violated 
any provision of this Title. 
2. In Book Two - Human Resources Development Programs, 
among which: (i) The Technical Education and Skills Development 
Authority (TESDA), R.A. 7796, which took over, provides a 
manpower development program more directly related to the 
requirements OF the economy; and (ii) Improvement of the training 
and employment of apprentices, learners and handicapped workers, 
which establishes apprenticeship as a training modality and a dual 
training mode: theoretical education and practical training in school, 
and the learners to receive a training allowance which shall begin at 
not less than the applicable minimum wage, while the handicapped 
workers can undergo training as apprentices, and adding, is the 
creation of the Special Program for Employment of Students 
(SPES). 
3. fn Book Three - Conditions of Employment, among which (i) 
Ensure humane conditions of work, increasing the service incentive 
leave from five (5) to ten (IO) days, granting male workers paternity 
leave of seven (7) days with full pay and granting the right to family 
and medical leave of four (4) weeks without pay every year when 
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the worker and his family is suffering Rom serious illness; (ii) Fuller 
enforcement of the law on wages, by declaring unlawful "Labor-Only 
Contracting" and giving the workers first and absolute preference 
regarding their wages and monetary claims in case of closures or 
cessations of operations of the employer's business; (iii) 
Improverrient of the working 'conditions for special groups of 
employees: 
women 
minors, 
house helpers 
and 
industrial 
homeworlters, increasing the maternity leave benefits for women 
workers from 45 to 60 days and 78 days for caesarean delivery, 
providing for the enabling law for Convention 182 recently ratified by 
the Senate on "Worst Forms of Child Labor" for minor workers and 
strengthening the provisions on househelpers by adopting some 
provisions of the "Batas Kasambahay"; and (iv) Incorporating the 
"Productivity 
and 
Performance Incentives and Gainsharing 
Program; 
4.. in Book Four - Health, Safety and Social Welfare Benefits, 
among which: (i) A strengthened and coordinated program on 
occupational health and safety, by making the DOLE the principal 
agency in coordinating and monitoring the activities of all laws to 
promote occupational safety and health. The DOLE Secretary shall 
issue rules and regulations necessary to implement the provisions 
of this Title; and (ii) A strengthened employees compensation 
program, by removing from the employee the burden of proving that 
hidher 'sickness' is compensable, and increasing the age limit from 
sixty (GO) to seventy (70) years old for compulsory coverage in the 
Skate Insurance Fund. 
5. In Book Five - Labor Relations, among which: ( i )  Affording the 
fullest possible exercise by workers of their constitutional rights to: 
self-organization: 
collective 
bargaining; 
peaceful 
concerted 
activities; and the right to strike in accordance with law; by making 
the registration of labor organizations clearly a ministerial functions; 
holding of a certification elections shall no longer require a petition, 
only a "request"; defining additional terms like, "industry union" and 
"workers association" and providing for the organization of 'workers 
association' by "ambulant, intermittent, etc."; providing for a six (6) 
years term of the collective bargaining agreement because other 
provisions of the CBA can be renegotiated after three (3) years; 
providing for the procedures for determining a representative even 
where there is a bargaining agent but there is no collective 
bargaining agreements; making violation of the duty of fair 
representation and entering into CBAs which provide terms and 
conditions of employment below minimum standards established by 
law; and replacing the phrase "in an industry indispensable to 
national interest" to "in an enterprise engaged in providing essential 
services", such as, but not limited to, hospital, electrical services, 
water supply and communication and transportation in. the 
assumption power of the Secretary of Labor over labor disputes; (ii) 
Providing that the exercise of free ingress to or egress from the 
employer's premises shall not be used to take out company's 
products, machineries and equipments or to bring in new 
employees for the operation of the company; and (iii) Speedy labor 
justice by strengthening the administrative machinery for the 
expeditious settlement of labor disputes: providing that "no labor 
dispute shall be under the jurisdiction of the National Labor 
Relations Commission (NLRC) until after all the efforts to resolve 
7 


,en labor dispute at the work place by the grievance machinery or 
by conciliafibn in accordance 5 with the rules and regulations 
promulgated by the Sec. of Labor have failed; expressly providing 
thaf the National Conciliation and Mediation Board (NCMB) “shall 
implement the preferential use of voluntary modes of settling labor 
disputes through conciliation”; providing that “the cost of Voluntary 
Arbitration including the Voluntary Arbitrator’s fee shall be borne by 
the special voluntary arbitration fund supplemented by the 
appropriations of the budget of the Board and strengthening the 
NLRC by increasing the number of divisions from five (5) to eight (8) 
and also increasing the number of years of experience for Executive 
Labor Arbiter and Labor Arbiter from seven (7) to ten ( I O )  years. 
6. In Book Six- Post Employment, among which: (i) Providing more 
clearly for the right of a regular employee to security of tenure ; (ii) 
Defining clearly what is a regular or an indefinite period of 
employment and temporary or a definite period of employment; (iii) 
Providing for a clearer idea of a probationary period; and 
implementation of the right to security of tenure of employees in 
case there is a merger or consolidation of employers corporations. 
7. In Book Seven - Transitory and Final Provision, among which: 
(i) qroviding for a longer period of prescription for the filing of 
money claims from three (3) to five (5) years; and (ii) Providing that 
“Employee dismissal actions shall prescribe in four (4) years”. 
Other provisions under this Book are deleted for becoming dead letter laws. 
In view of the foregoing premises, I earnestly urge this Chamber’s approval of 
this measure. 
u
e
n
a
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SENATE 
S. B. No. 
159 
Introduced by: SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
OTHER PURPOSES 
m x m , I S m N Q =  THE NEW LABOR CODE OF THE mrr,rrrINES AND FOR 
Re it enacted by the Senate and House of Representatives of the Philippines in 
Congmss assembled: 
PRELIMINARY TITLE 
GENERAL ~ROVISIOWS 
AKIICLE 1. Title - This Act shall be lcnown as the “ New Labor Code of the Philippines.” 
(4 
ARTXCLE 2. Date of Effectivity. This Code shall tale effect fifteen (15) days after its 
publication in the Official Gazette. (a) 
ARTICLE 3. 
Declaration of basic policy. - 
The State shall afford full protection to 
Mor, local aid overseas, organized and unorganized. It shall promote full employment and 
equality o f  employment opportunities for all. It shall guarantee the rights of all worlcers to self- 
organization, collective bargaining and negotiations and peaceful concerted activities including 
the right to strike in accordance with law. They shall be entitled to security of tenure, humane 
condiliom of work, and a living wage. The State shall regulate the relations between workers and 
cmployers, recognizing the right of labor to its just share in the fruits o f  production and right o f  
enterprises to reasonable returns on investments and to expansion and growth. (a) 
ARTICLE 4. Construction in favor of labor. - 
All doubts in the implementation and 
iiiterpretatjon of the provisions of this Code, including its implementing rules and regulations, 
shall be resolved in favor of labor. (a) 
33 
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3’7 
3s 
ARTICLE 5. Rules and regulations. - 
The Department of Labor and Employment in 
consultation with other goveriment agencies charged with the administration and enforcement of 
this Code or any of its parts shall promulgate the necessary implementing rules and regulations. 
Such rules and regulations shall become effective fifteen (15) days after announcement of their 
adoption in ncwspapers of general circulation. 
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ARTICLE 6. Applicability. - 
AI1 rights and benefits 'granted to workers under this 
Code shall, exccpt as may otherwise be provided herein, apply alike to all workers, in the private 
sector. 
The terms arid conditions of employment of all government employees, including 
employees of government-owned and controlled corporations with original charters shall be 
governed by lSle Civil Service Law, rules and regulations. (a) 
BOOK ONE 
PRJ&EhIPLOYMENT 
ARTICLE 7. 
(a) 
Statement of objectives. -It 
is the policy of the State to: 
Proiiiote and maintain a state of f~ill empfoyment through active industrial policy, 
balanced agricultural development, unified hunlan resources development and enhanced 
einployment facilitation assistance to job seekers; 
(b) 
Protect every citizen desiring to work locally or overseas by securing for him the 
best possible terms zid conditions of employment, 
(c) 
Facilitate a fiee choice of available empIoyment by persons seeking work in 
conformity with the national interest; 
(d) 
Facilitate and regulate the movement of workers in conformity with the national 
interest; 
(e) 
Reguiate the employment of aliens, including the establishment of a registration 
mdor work permit system; 
(f) 
Strengthen the network of public eniployment offices and rationalize the 
participation of the private sector in the recruitment and placement of workers, locally and 
ovcrscas, lo serve national development objectives; 
(g) 
Insure careful selection of Filipino workers for overseas employment in order to 
protect the good name ofthe Philippines abroad. (A, Art.12) 
Title I 
RECRUITMENT AND PLACEMENT OF WORI(ERS 
CHAPTER I 
GENERAL PROVISIONS 
ARTICLE 8.I)elinitions. - (a) "Workers" means any member of the labor force, 
wliether employed or unemployed. 
(b) 
"Recruitmellt and placement" refers to any act of canvassing, enlisting, 
contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract 


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services, promising or advertising for employment, locally or abroad, whether for profit or not: 
Provided, That any person or entity which, in any manner, offers or promises for a fee 
employment to two 01’ more persons shall be deemed engaged in recruitment and placement. 
(c) 
“Private employment agency” means any person or entity engaged in the 
recruitment and placement of workers for a fee which is charged, directly or indirectly, from the 
workers or employers or both. 
(d) “Plan” means National Employment Plan. 
(e) “Human resources development” means the development of the capacity of the 
workers through technical and slcills development. 
(0 “Active industrial policy” means the promotion of rapid industrial growth for job 
creation purposes. (Art.13-a) 
AX3TXCLE 9. Employment promotion. - 
The Secretary of Labor and Employment in 
coordinztioii with the Local Government Units shall have the power and authority to: 
(a) 
Initiate, organize and maintain employment offices in addition to the existing 
employment offices under the Department of Labor as the need arises; 
(b) 
Organize and establish a nationwide job clearance and labor malcet information 
system to inform applicants registering with a particular employment office of job opportunities 
in other parts of tlie country as well as job opportunities abroad and promote job and skills 
matching; 
(c) 
Develop and organize a program that will facilitate occupational, industrial and 
geographical mobility of labor and provide assistance in the relocation of worlcers from one area 
to another; 
(d) 
Require any person, establishment, organization or institution to submit such 
employment information as may be prescribed by the Secretary of Labor; and 
(e) 
Formulate a National Eniployment Plan and recommend appropriate employment 
policies, strategies and measures to maximize employment based on active industrial policy, 
balaiiced agricultural development, unified human resource development and enhanced 
employment facilitation assistance. (Art. 14-a) 
ARTICLE 10. Bureau of Local Employment. - 
The Bureau of Local Employment 
shall be primarily responsible for assisting the Secretary of Labor and Employment in 
developing and monitoring a comprehensive national employment plan and its implementing 
prc grams. (Art. 1 5 -a) 
AnTXCLE 11. Private recruitment. - 
Except as provided in Chapter I1 of this Title, 
no person or entity, other than the public employment offices, shd1 engage in the recruitment 
and placement of workers. 
AIUIC‘LE. 12. Philippine Overseas Employment Administration. - The Philippine 
Overseas Employinelit Administration or POEA shall have the following powers and functions: 
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(a) 
Regulate private sector participation in the recruitment and overseas placement of 
workers by setting up a licensing and registration system; 
(b) 
Formulate and implement, in coordination with appropriate entities concerned, 
when necessary, a system for promoting and monitoring the overseas employment of Filipino 
workers taking into consideration their welfare and the domestic manpower requirements; 
(c) 
Protect the rights of Filipino workers for overseas employment lo fair and 
equitable recruitment and employment practices and ensure their welfare; 
(d) 
Exercise original and exclusive jurisdiction to hear and decide all claims arising 
out of an eniployer-employee relationship or by virtue of any law or contract involving Filipino 
worlcers for overseas employment including the disciplinary cases; and all pre-employment cases 
which are administrative in character involving or arising out of violation of requirement laws, 
rules and regulations, or violation of the conditions for issuance of license or authority to recnlit 
worlcers. 
A11 prohibited reci-uitment activities and practices which are penal in character as 
enumerated and defined under and by virtue of existing laws, shall be prosecuted in the regular 
courts in close coordination with the appropriate Departments and agencies concerned. 
(e) 
(i) 
Maintain a registry of skills for overseas placements; 
Recruit and place workers to service the requirement for trained and competent 
Filipino workers by foreign governments and their instrumentalities and such other employers as 
pnlilic interest may reqnire consistent with Section 4 of Republic Act No.8042: Provided, that no 
Filipino worker shall be deployed to countries that have a track record of violating the rights of 
Migrant Workers; 
(g) 
Promote the development of skills and careful selection of Filipino workers for 
overseas employment. 
(h) 
(i) 
Undertake overseas market development activities for placement of Filipino 
Secure the best terms and conditions of eniployment of Filipino contract workers 
workers; 
and ensure compliance therewith; 
(j) 
(k) 
Promote and protect the well-being of Filipino workers overseas; 
Develop and implement programs for the effective monitoring of returning 
contract workers, promoting their re-training and re-employment or their smooth reintegration 
inlo the mainstream of the national economy in coordination with other government agencies; 
(I) 
Jnstitute a system for ensuring fair and speedy disposition of caes involving 
violation of recruitment rules and regulations as well as violation of terms and conditions of 
overseas employment; 
(in) 
Establish a system foor speedy and efficient enforcement of decisions laid down 
through thc exercise of its adjudicatory function; 
(n) 
Establish and maintain close relationship and enter into joint projects with the 
Department of Foreign Affairs, Philippine Tourism Authority, Manila International Airport 
Authority, Department of Justice, Department of Budget and Management and other relevant 
government entitles, in the pursuit of its objectives. The Administration shall dso establish and 
inaintajn joint projects with private organizations, domestic or foreign, in the furtherance of its 
objectives. (Art. 17-8) 
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r+dwIcrk 13. 
Ban on dircct-hiring. -No 
employer may hire a Filipino worlcer 
for overseas employment except through the Boards and entities authorized by .the Secretary of 
Lttbou and Employment. Direct-hiring by members of the diplomatic corps, internatiollal 
organizdtions and such other employers as may be allowed by the Secretary of Labor is exempt 
from this provision. 
ARTICLZ 14. 
National Seafarers Office. - A National Seafarers Office is 
hereby created nndcr h e  POEA, which shall have the following powers and functions: 
(1) To develop an integrated maritime manpower development and placement program 
for Filipino seafirer here and overseas; 
CL) To develop, in coordination with other agencies involved in the maritime industry, a 
one-stop shop for the licensing and deployment of Filipino seafarer. (Art.20-a) 
AJXTICLE 15. 
Foreign service role and participation. - 
To provide ample 
protection to Filipino workers abroad, the labor attaches, the labor reporting officers duly 
designated by the Secretary of Labor and the Philippine diplomatic or consular officials 
concerned shall, even without prior instruction or advice from the home office, exercise the 
~ ~ o w c r  
and duty to: 
(a) 
(b) 
(c) 
Provide all Filipino workers within their jurisdiction assistance on all matters 
Insure that Filipino workers are not exploited or discriminated against; 
Verify and certify as requisite to authentication that the terms and conditions of 
employnicnt in contracts involving Filipino workers are in accordance with the Labor Code and 
rules and rccgulalions of the Philippine Overseas Employment Administration (POEA); 
blalte coiitinuing studies or researches and recommendations on the various 
aspects of the employment market within their jurisdiction; 
Gather and analyze idorination on the employment situation and its probable 
t:i-ends, and to make such information available ; and 
Perform such other duties as may he required of them from time to time. 
arising out oE employmeal; 
(d) 
(e) 
(f) 
ARTICLE 16. 
Mandatoiy remittance of foreign exchange earnings. ---- It shall 
be mandatory for all Filipino workers abroad to remit a portion of their foreign exchange 
earnings to their families, dependents and/or beneficiaries in the country in accordance with rules 
and regulations prescribed by the Secretary of Labor. 
ARTICLE 17. 
Agencies to issue rules and collect fees. - 
The Agencies involved in 
the recruitment and placement of workers shall issue appropriate rules and regulations to carry 
out their functions. They shall have the power to impose and collect fees from employers 
concerned, which shall be deposited to the respective accounts of said Agencies and be used by 
thcin esclusively to prornote their objectives. (Art.24-a) 
Title I 
RECRUITMENT AND PLACEMENT OF WORKERS 
CHAPTER 11 
REGULATION OF RECRUITMENT AND 
PLACEMENT ACTIVITIES 
ARTICLE 18. 
Private sector participation in the recruitment and placement 
of workers. -- Pursuant to national development objectives and in order to harness and 
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imxiniize the use of private sector resources and initiative in the development sild 
implementation of a comprehensive employment program, the private employment sector shall 
participate in the recruitment and placement of workers, locally and overseas, under such 
guidelines, rules and regulations, as may be issued by the Secretary of Labor and Employment. 
AIITTCLE 19. 
Travel agencies prohibited to recruit. - 
Travel agencies and sales 
agencies of airline companies are prohibited from engaging in the business of recruitment and 
placeincni of workers for overseas employment whether for profit or not. 
AlirXCLE 20. 
Citizenship requirement. - 
Only Filipino citizens or corporations, 
pai-ririerships or entities at least 75 percent of the authorized and voting capital stock of which is 
owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and 
placement of workers, locally or overseas. 
ARTICLE 21. 
Capitalization and Licensing. - 
All applicants for authority to hire 
or renewal of license to recruit are required to have such substantial capitalization and other 
requiremeuls as determined by the Secretary of Labor and Employment. No agency shall be 
denied a license unless the said agency is unable to meet the required capitalization and other 
conditions set by the Department of Labor and Employment. (Art.28-a) 
ARTICLE 22. 
Non-transferability of license or authority. - 
No license or 
nuthorip shall be used directly or indirectly by any person other than the one in whose favor it 
was issued at any place other than that stated in the license or authority, nor may such license or 
authority be transferred, conveyed or assigned to any other person or entity. Any transfer of 
business address, appointment or designation of any agent or representative including the 
establishment of additional offices anywhere shall be subject to the prior approval of the 
Ikparfnieiit of Labor. 
ARTICLE 23. 
Registration fees. - 
The Secretary of Labor and Employment shall 
promulgate a schedule of fees for the registration of all applicants for license or authority. 
ARTICLE 24.. 
Bonds. - 
All applicants for license or authority shall post such 
cash and surety bonds as determined by the Secretary of Labor and Employment to guarantee 
compliance with prescribed recruitment procedures, rules and regulations, and terms and 
conditiolis of employment as may be appropriate. 
Fees to be paid by workers. - 
Any person applying with a private 
fee charging employment agency for employment assistance shall not be charged any fee until he 
has obtained employment through his efforts or has actually commenced employment. Such fee 
shall be always covered with appropriate receipt clearly showing the amount paid. The Secretary 
of Labor and Employment shall promulgate a schedule of allowable fees. 
ARTICLE 25. 
A1tTXCLE 26. 
Reports on employment status. - 
Whenever the public interest so 
requires, the Secretary of Labor may direct all persons or entities within the coverage of this 
Title to submit a report on the status of employment, including job vacancies; details of job 
reqiiisidons, separation from jobs, wages, other terms and conditions, and other employment 
data. 
AlITlCLE 27. 
licensee or holder of authority: 
Prohibited practices. -It shall be unlawful for any individual, entity, 
(a) 
To charge or accept directly or indirectly any amount greater than that specified in 
the schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any 
miount greater than that actually received by him as a loan or advance; 
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(b) 
To fumisli or publish any -False notice os information or document in relation to 
recruitment or employment; 
(cj 
To give any false notice, testimony, information or document or commit any act 
or misrepresentation for the purpose of securing a license or authority under this Code; 
(d) 
To induce or attempt to induce a worker already employed to quit his employment 
in order to offer him to another unless the transfer is designed to liberate the worker from 
oppressive terms and conditions of employment; 
(e) 
To influence or to attempt to influence any person or entity not to employ any 
worker ~vlio has not applied for employment through his agency; 
(f) 
To engage in the recruitment or placement of workers in jobs harm€ul to public 
health 01' morality 07 to the dignity ofthe Republic of the Philippines; 
(g) 
To obstruct or attempt to obstruct inspection by the Secretaxy of Labor or by his 
duly authorizcd representatives; 
(11) 
To €ail to file reports on the status of employment, placement vacancies, 
remittance of' foreign exchange earnings, separation from jobs, departures and such other matters 
or informdon as niay be required by the Secretary of Labor; 
(ij 
To substitute or alter employment contracts approved and verified by the 
I~cprment of Labor and Employment fiom the time of actual signing thereof by the parties up 
to and including the periods o f  expiration of the same without the approval of the Secretary of 
Labor. 
(j) 
To become an officer or member o f  the Board of any corporation engaged in 
travel agency or to be engaged directly or indirectly in the management of a travel agency; 
(I) 
To withhold or deny travel documents from applicant workers before departure 
for monetary or financial considerations other than those authorized under this Code and its 
implementing rules and regulations 
fiPmCLE 28. 
Suspension and/or cancellation of license or authority. - 
The 
Secretary of Labor and Employment shall have the power to suspend or cancel and in both 
instanccs impose a fine, any liceiise or authority to recruit employees for overseas employment 
for violaliou of mles and regulations issued by the Secretary of Labor and Employment and the 
Philippine Overseas Eniployment Administration or for violations of the provisions of this and 
other applicable laws. (kt.35-a) 
Title I 
RECRUITMENT AND PLACEMENT OF WORKERS 
CHAPTER III 
MISCELLANEOUS PROVISIONS 
Regulatory power. -The Secretiuy of Labor shall have the power 
to restrict and regulate the recruitment and placement activities of all agencies within tlie 
coverage of this TiUe and is hereby authorized to issue orders and promulgate rules and 
regulations to carry out lhe objectives and implement the provisions of this Title. 
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ARTICLE 30. 
Visitorial power. - 
The Secretary of Labor or his duly authorized 
represeiitatives may, at m y  time, inspect the premises, books of accounts and records of a ~ y  
person or entity covered by this Title, require it to submit reports regularly on prescribed forms, 
and act 011 violations of m y  provisions of this Title. 
ARTICLE 31. Illegal Recruitment. - (a) Any recruitment activities, including the 
prohibiled practices eiiuinerated under Article 27 of this Code, to be undertaken by non-licensees 
or non-holders of authority shall be deemed illegal and punishable under Article 32 o f  this 
Code. The Department of Labor and Employment or any law enforcement officer may initiate 
complaints under this Article. 
(b) Jilegal recruitment when committed by a syndicate or in large scale shall be 
considered an offense iiivolving economic sabotage and shall be penalized in accordance 
with Article 39 hereof. 
Illegal recruitment is deemed committed by a syndicate if carried out by a group of 
1.hrce (3) or more persons conspiring and/or confederating with one another in carrying out 
any unlawful or illegal transaction, enterprises or scheme defined under the first paragraph 
hereof. Illegal recruitment is deemed 
committed in large scale if committed against three (3) 
or morc persons individually or as a group. 
(c) Victims of illegal recruitment shall automatically be covered by the government's 
witness protection program. 
(d) 
A criniinal action arising from illegal recruitment as defined herein shall be filed 
with h e  Regional Trial Court of the province or city where the offense was committed or where 
the offended party actually resides at the time of the commission of the offense: Provided, that 
the court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other 
courts: Provided, however, that the aforestated provisions shall also apply to those criminal 
actions thal have aheady been filed in court at the time of the effectivity of this Act. (Art.38-a) 
ARTICLE 32. Penalties - (a) The penalty of life imprisonment and a fine of not less 
tlian Two Hundred Thousand Pesos (P200,OOO) nor more than Five Hundred Thousand Pesos 
(P500,OOO.) shall be imposed if illegal recruitment constitutes economic sabotage as defined 
herein: 
(b) Any license or holder of authority found violating or causing another to violate 
aiy provision of this Title or its implementing rules and regulations shall, upon conviction 
thereof, suffer the penalty of imprisonment of not less than two (2) years nor more than five ( 5 )  
yeas and a fine of not less than 4320,000 nor more than 
P200,OOO; 
(c) Any person who is neither a licensee nor a holder of authority under this Title 
h i i d  violating any provision thereof or its implementing rules and 
regulations shall, upon 
conviction thereof, suffer the penalty of imprisonment of not less than four (4) years nor more 
than eight (8) years and a fine of not less thai 
P50,OOO nor more than P400,OOO; 
(d) If the offender is a corporation, partnership, association or entity, the penalty 
shall be imposed upon the officer or officers of the corporation, partnership, association 
or eiitity rcsponsible for violation; and if such officer is an alien, he shall, in addition to the 
penalties herein prescribed, be deported without further proceedings; 
(e) In every case, conviction shall cause and carry the automatic revocation of the 
license or authority and all the permits and privileges granted to such person or entity under 
this Title, ar?d the. forfeiture ofthe cash and surety bonds in favor of the Department of Labor 
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and Einployment ivhich is authorized to use the same exclusively to promote its objectives. 
(Art.39-a) 
TITLE I1 
EMPLOYMENT OF NOM-RESIDENT ALIENS 
ARTICLE 33. 
Employment permit of non-resident aliens. - 
Any alien seekiiig 
admission to the Philippines for employment purposes and any domestic or foreign employer 
who desires to engage an alien for employment in the Philippines shall obtain an employment 
perinit from the Department of Labor and Employment. 
The employment permit may be issued to a non-resident alien or to the applicant 
employer after zi determination of the non-availability of a person in the Philippines who is 
comnpetenl, able and willing at the time of application to perform the services far which the alien 
is desired. 
For an enterprise registered in preferred areas of investments, said employment permit 
rnay be issued upon recommendation of the government agency charged with the supervision of 
said registered enterprise. 
ARTICLE 34. 
Prohibition against transfer of employment. - (a) After the 
issuance ofenqAoyJneiit permit, the alien shall not transfer to another job or change his employer 
without prior approval of Secretary of Labor. 
(b) 
Any non-resident alien who shall take up employment in violation of the 
provision of this Title and its implementing rules and regulations shall be punished in accordance 
wit11 the provisions of Articles 294 and 295 of the Labor Code. 
In addition, ilie alien worker shall be subject to deportation after service of his sentence. 
AlXnCLE 35. 
Submission of fist. - Any employer employing non-residcrit 
foreign nationals on the efkctive date of this Code shall submit a list of such nationals io the 
Secretary of Labor and Employment within 30 days after such date indicating their names, 
citizen:jhip, foreign and local addresses, nature of employment and status of stay in the country. 
The Secretary of Labor <and Employment shall then determine if they are entitled to an 
employment perinit. 
BOOK TWO 
Human Resources Development Program 
TITLE 1 
TltAXNI'NG AND EMPLOYMENT OF SPECIAL WORKERS 
CBAPTER I 
APPRENTICES 
ARTICLE 36. Statement of Objectives. - This Title aims: 
(1) To help meet [he demand of the economy for trained manpower; 
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(2) To establish a national apprenticeship system that is competency- and occupation- 
based, iiicluding an on- arid off-the job training program through the participation of employers, 
workers, and goveminent. 
(3) To establish apprenticeship st‘mdards for the protection of apprentices. (Art.57-a) 
ARTICLE 37. DcEinitioii of Terms -As used in this Title: 
(a) “Appreiiticeship” means enterprise-based practical training with compulsory related 
theoretical instructions in or outside the enterprise involving a contract between an apprentice 
aid an ciiterprise on an approved apprenticeable occupation. 
(b) An “apprentice” is a person undergoing training for ai approved apprenticeable 
occupition in an established period assured by an apprenticeship agreement. 
(c) An “apprenticeable occupation” is ai occupation promulgated by the TESDA Board, 
with equal representation from firm owners, workers and training institutions, and approved for 
apprenticeship by TESDA. The apprenticeable occupation requires a minimum duration of four 
(4) months; pmvided however, that the TESDA Board may prescribe a longer training period 
depending on its approved occupational skills standards. 
(cl) “Apprenticeship agreement” is a contract wherein an enterprise binds itself to train 
the apprentice who in turn accepts the terms of training for a recognized apprenticeable 
occupation einphasizing the rights, duties and responsibilities of each party. 
(e) 
“Occupational Skills Standards” are written specifications setting out the 
requirements of knowledge and skills with respect to a particular trade. 
(f) “Occupational Skills Assessment” is a formal recognition of a worker’s skills 
qualification for a particular trade. 
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financing alipreiiticeship-training activities. (Ai-t.58-a) 
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“Apprenticeship fee” is a tax imposed on enterprises with the view in mind of 
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ARTICLE 38. Qualifications of an apprentice - To qualify as an apprentice, a person 
shall: 
(a) be a high school graduate; 
(b) possess vocational aptitude and capacity for apprenticeship as established through 
appropriate testing; and 
(e) possess the ability to comprehend and follow oral and written instructions. 
Industry training boards, industry associations, and labor groups may recommend to the 
TESDA appropriate educational requirements for different occupations. (Art.59-a) 
ARTICLE 
39. Training of apprentices - Registered enterprises may enter into 
apprenticeship agreements or train apprentices in approved apprenticeable occupations. 
(Ar1.60-a) 
ARTICLE 40. 
Contents o f  apprenticeship agreements. - Apprenticeship 
agreeinents, shall conform to the rules issued by the TESDA and shall include: 
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(a) The nature, and purpose of training; 
(b) 'The curriculum and period of training; 
(c) 'l'he prescribed training allowance which in no case shall start below 75% of the 
applicable minimum wage; 
(d) Schedule of training allowance payments; 
(e) Training hows which shall not exceed the working hours of a regular employee; 
(9 The process of terminalion of apprenticeship; and 
(g) The general rights and obligations of bothparties. (Art.61-a) 
ARTICLE 41. Signing of apprenticeship agreement - Every apprenticeship 
agreement shIi be signed by the employer or his agent, or by an authorized representative of any 
of the recognized organizations, associations or groups and by the apprentice. 
Ail appreiiticeship agreement with a minor shall be signed in his behalf by his parent or 
guardian or, if the latter is not available, by an authorized representative of the Department of 
Labor and Empfoyment, and the same shall be binding during its lifetime. 
Every apprenticeship agreement entered into under this title shall be ratified by the 
'Tripart; te Appreiiticeship Committee which shall have equal representation consisting of two (2) 
from eritcrprise, two (2) from workers, and one (1) from the government. (Art.62-a) 
ARTICLE 42. Apprenticeship schemes - Registered enterprise, group or association, 
industry organization or civic group wishing to organize the apprenticeship program, or a would- 
be apprentice, may choose from any of the following apprenticeship schemes which may use the 
dual training system approach 
(a) Apprenticeship involving a company and an identified training institution; 
(b) Apprinticcsliip involving a group o f  companies and a training institution; 
(c) Apprenticeship involving an industry training center and a company or a grouy of 
companies; 
(d) Other schemes to be established by the TESDA in consultation with industry traiuing 
boards, industry association and labor groups, and subject to the approval of the TESDA Board. 
(Art.63-a) 
ARTICLE 43. Apprenticeship Administration The overall policy for apprenticeship 
shall be the function of the TESDA Board. The responsibility for apprenticeship administration, 
monitoring and evaluation of on- and off-the-job training shall be the concern of the TESDA 
Secretariat. particularly the Office o f  Apprenticeship. 
The identification and prioritization of apprenticeable occupations and the development 
of stanclads and curricula shall be the responsibility of industry training boards, industry 
associalions and labor groups. 
The Tripartite Plant Apprenticeship Committees shall. be 
establishcd in participating enterprises to ensure that program implementation is in accordance 
with policies. 
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Any of the apprenticeship schemes recognized herein may be undertaken or sponsored by 
an eiiierprise or by a group or association thereof, or by a civic organization. Actual training of 
apprentices may be undertalcen: 
(a) In the premises of the sponsoring enterprise in the case of individual apprenticeship 
programs; 
(b) J n  the premises of one or severd designated firins in the case of programs sponsored 
by a group or association of enterprises or by civic organizations; or 
(c) In TESDA training center or other training institution. (Art.64-a) 
ARTICLE 44. - Investigation of Violation of Apprenticeship Agreement - The 
Tripartite Plant Apprenticeship Cornmiltee, upon complaint of any interested party or motu 
/7ropio, shall have the initial responsibility for settling differences arising from apprenticeship 
agreements. In case it i s  not able to settle such differences, the TESDA Secretariat or its 
authorized rcpreseiitllative shall investigate and render a decision pursuant to pertinent rules aid 
regulations. (Art.65-a) 
ARTICLE 115. - Appeal to the TESDA Secretariat - The decision of the TESDA 
Secretariat may be appealed by any aggrieved person to the TESDA Board within five (5) days 
.from receipt of the decision. The decision of the TESDA Board shall be find and executory. 
(Ari.66-a) 
ARTICLE 46. 
Exhawtion of administrative remedies. - No person shall 
iustitute any action for the enforcement of any apprenticeship agreement OK damages for breach 
of any such a.greenient, unless he has exhausted all available administrative remedies. 
A.RTICLE 47. Aptitude Testing of Applicants - Consonant with the minimum 
qualifications of the apprentice-applicants required under this Chapter, the employers or entities 
with duly recognized apprenticeship programs shall have the primary responsibility for providing 
appropriate aptitude tests in the selection of apprentices. If they do not have adequate facilities for 
the purpose, the TESDA may perform the service free of charge. (Art.68-a) 
AXtTICLE 48. 
Responsibility for Theoretical Instruction. - Supplementary 
tlieorctical instruction to apprentices in cases where the program is undertaken in the plant may 
he done by the employer. If the latter is not prepared to assume the responsibility, the same may 
be delcgatcd to an appropriate government agency. 
ARTICLE 49. - Voluntary Organizalion of Apprenticeship Program: Exemptions - 
(a) 
The organization of apprenticeship programs shall be primarily a voluntary 
uucleitakiiig of enterprises. 
(b) When national secbrity or particular requirements of economic development so 
demand, [lie President of the Philippines may require compulsory training of apprentices in 
certain trades, occupations, jobs or employment levels where shortage of trained manpower is 
deemed criti.ca1 as determined by the TESDA Board upon the recommendation of its Secretariat. 
Where services of foreign technicians are utilized by private companies in 
apprenticeable trades, such conlpanies are required to set-up appropriate apprenticeship 
programs. (Art.70-a) 
(c) 
ARTICLE 50. 
Apprenticeship Training Fund and Exemption. -There 
shall 
be an ~i~prentice~liip-TrL?ining 
Fund which shall be derived from the apprenticeship fee paid by 
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every enterprise in industries employing apprenticeable trades. Worlcers who are graduates of 
Apprenticeship Program shall likewise pay a one-time apprenticeship fee upon employment as 
contribution to the Apprenticeship Training Fund. The apprenticeship fee rates and guidelines to 
bc applied shall be approved by the TESDA Board after a public hearing with the management 
and Iabor sectow. ?'he fee shall be collected and paid through the SSS and transferred to the 
Apprenticeship Training Fund to be administered by the TESDA. The apprenticeship fee rate 
may be increased by the TESDA Subject to the requirements of a public hearing. 
 lie Apprenticeship Training F-cmd shall be deemed distinct and separate from the 
TESDA Developiiienl Fund under Section 3 1 of republic Act No. 7796 or the TESDA Law, and 
as such, shall not be subject to its implementing rules and regulations. Such Apprenticeship 
Fund may be used to defray expenses of the trainees in the institution or training center as well as 
other expenses to be approved by the TESDA Board to improve the implementation of the 
program. 
An additional deduction from taxable income equivalent to fifty (50) percent of training 
expenses shall be granted to persons or enterprises organizing the program and shall be exempted 
from: 
(a) 
Paying the apprenticeship fee; 
(b) 
(e) 
Provided that such program is duly recognized by the Department of Labor and 
Employnienl. Puovided, further, that such deduction shall not exceed ten (10) percent of direct 
labor wage. 
Duty on all equipment dedicated to training; and 
VAT on locally purchased training equipment and materials. 
iMicro-cotiqe and small enterprises or those with less than 100 employees shall also be 
exempt from the payment o f  apprenticeship fee. (Art.71-a) 
ARTICLE 51. - 
Exemption from Probationary Employment; System o f  
Equivalerrcy - Certified apprenticeship graduates shall be exempted from probationary 
employnrent. They shall be employed as regular workers if chosen to be retained by the 
E11 terprise . 
Apprenticeship graduates shall, likewise be awarded equivalent unit credits in the fornial 
system of education and that can be used in pursuing tertiary degree courses, subject to the 
integrated policies and guidelines on equivalency and adult education acceleration program of 
TESDA, Conmission on Higher Education (CIIED) and DECS. (Art.72-a) 
TITLE I 
TRAXIWVG ANI) EMPLOYMENT OF SPECIAL WORKERS 
CHAPTER II 
LEARNERS 
ARTICLE 5Z.Learners Defined. - 
Learners are persons hired as trainees in semi- 
skilled and o'dier indusirial occupations which are non-apprenticeable. Learnership programs 
musl be approved by the 'TESDA. (Art.73-a) 


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ARTICLE 53. 
When Learners may be hired. - 
Learners may be employed 
when no experienced workers are available, the employment of learners is necessary to prevent 
curtailment of eniployment opportunities, provided, that the employment does not create unfair 
competition in terms of labor costs or impair or lower working standards. Provided, further, that 
the number of apprentices shall not exceed 10% of the total workforce of the company. 
ARTICLE 54. Lcarnership Agreement. - 
Any employer/enterprise desiring to employ 
learners shall enter into a learnership agreement with them, which agreement shall include: 
(a) 
(I;) 
The names and addresses of the learners; 
'7'li': diiration of the learnership period, which shall not exceed three (3) months; 
I. :I: 
jraini1ig allowances of the learners which shall begin at not less than the 
(c:! 
app1icabJ.c iui::imt,s~. 
s:,:p,t,e 
foor a specific occupation and subject to tripartite consultation; 
(ci) 
,,L 
! : ' , i m i t  to employ the learners, if they so desire, as regular employees 
upon comp1':tion ., 
',., iearnership. All learners who have been allowed or suffered to work 
during [he first two i .:.) months shall be deemed regular employees if training is terminated by the 
employer before the eiid ofthe stipulated period through no fault of the learner. (Art.75-a) 
AFLTTCI,1?< !'A 
Learners in piece work. - Learners employed in piece or 
incentive rare j o h  di : ii!?; tlic training period shall be paid in full for the work done. 
AR.TPCf,K 
55. 
Penalty clause. - Any violation of this Chapter or its 
irnpleniei~~iii~~ 
ru!es a .ii' ;: i;,;i!ations shall be subject to the general penalty clause provided for in 
this Code. 
''r1TLE f 
*..'. 8 YMEN'T OF SPXCLAL WORKERS 
, *( i ,y 
( .; j(: :., 
, ,: , ; ' "' 
f:xIxATP.ETI. III 
7 
.,.' 
. .., 
~, !, 


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The employment agreement shall be subject to inspection by the Secretary of Labor and 
Employment or his duly auhorized representatives. 
ARTlCLE 60. 
Eligibility €or apprenticeship. - Subject to the appropriate 
provisions of this Code, handicapped workers may be hired as learners or undergo waining as 
apprentices if their handicap is not such as to effectively impede the perforniance of job 
operations in the particular occupations for which they are hired. (Art.81-a) 
TITLE I 
Training and Employment of Special Workers 
CHAPTER rv 
Other Training Programs 
AR'I'ICLE 61. Special Program for Employment of Students. -Any provision of law 
to the contrary notwitlistanding, any person or entity employing more than ten (10) persons may 
employ poor but deserving students fifteen (15) years of age but not more than twenty-five (25) 
y:ars old, paying them a salary or wage not lower than the minimum wage for private employers 
and the applicable hiring rate for the national and local government agencies: Provided, however, 
that their employment shall not exceed three (3) months. Provided, further, that students 
employed in activities related to their course shall earn equivalent academic credits as may be 
determined by appropriate government agencies. 
For this p%pose, poor but deserving students refers to those whose parents' combined 
income, together. with their own, if any, do not exceed the annual national poverty threshold 
level for a family of six (6) for the preceding year as may be determined by the National 
Siatistics Coordination Board (NSCB). Employment facilitation services for applicants to the 
progvani shall be done by the Public Employmeiit Service Office (PESO). (N) 
SEICTION 4. 
BOOK THREE 
Conditions of Employment 
TITLE I 
WORKING CONDITIONS AND REST PERIODS 
CHAPTER 1 
HOURS OF WORK 
ARTfCLE 62. 
Coverage. - 
'The provision of this Title shall apply to employees, 
whether regnla or temporary as defined in Article 284, in all establishments and undertakings, 
whether for profit or not, but not to government employees, managerial employees, field 
personnel, immediate members of the family of the employer who are dependent on him for 
support, domestic helpers, and persons in the personal service of another. 
As used herein, "managerial employees" refer to managers and supervisors as defined in 
Article 215(w). 
15 


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"Field personriel" refer to non-agricultural employees who regularly perform their duties 
away from die principal place o f  business or branch office of the employer and whose actual 
hours of work in the field cannot be determined with reasonable certainty. 
All employers, contractors and subcontractors, shall observe the provisions of this book 
and are directly liable for their violations in accordance with Article 71 of this Code. (Art.82-a) 
AIETZCLE 63. 
Normal hours of work. - 
The normal hours of work of any 
employee shall not exceed eight in a day. 
Irlealth personnel in cities or municipalities with a population of at least one million 
(1;000,000) 
or in hospitals or clinics with a bed capacity of at least one hundred (100) shall hold 
regular office hours for eight (8) hours a day, for five (5) days a week, exclusive of time for 
meals, except where the exigencies of the service require that such personnel work for six (6) 
Jays or forly-eight (48) hours, in which case they shall be entitled to an additional compensation 
of at least thiity (30%) percent of their regular wage for work on the sixth day. For purposes of 
this Article, "heallb personnel" shall include: resident physicians, nurses, nutritionists, dieticians, 
pliarmacists, social workers, laboratory technicians, paramedical technicians, psychologists, 
midwives, attendants and all other hospital or clinic personnel. 
AKrICLE 64. 
Hours worked. - 
Hours worked shall include (a) all time during 
n~liicli an einployee is required to be on duty or to be ai a prescribed workplace, and (b) all time 
iluving which an employee is suffered or permitted to work. 
Rest periods of short duration during working hours shall be counted as hours worked. 
ARTICLE 65. 
Meal periods. - 
Subject to such regulations as the Secretary of 
Labor may prescribe, it shall be the duty of every employer to give his employees not less than 
sixty minutes time-off for their regular meals. 
AX:TXCX,E 66. 
Night shift differential. - 
Every employee shall be paid a night 
shift differential of not less than ten (10%) percent o f  his regular wage for each hour of work 
performed between ten o'clock in the evening and six o'clock in the morning. 
ARTICLE 67. 
Overtime work ----- Work may be performed beyond eight (8) hours 
a day provided that the employee is paid for the overtime work, an.additiona1 compensation 
equivalent to his regular wage plus at least twenty-five percent (25%) thereof. Work performed 
beyond cight hours on a holiday or rest day shall be paid an additional compensation equivalent to 
 lie rate ofthe first eight hours on a holiday or rest day plus at least thirty percent (30%) thereof. 
ARTICLE 68. 
Undertime not offset by overtime. - 
Undertime work on any 
particular day shall not be offset by overtime work on the same or any other day, except as 
otheiwise provided in a Collective Bargaining Agreement. Permission given to the employee to 
go on lcave on some other day of the week shall not exempt the employer from paying the 
additional compensation required in this Chapter. (Art.88-a) 
AIXTICLE 69. 
Emergency overtime work. -Any 
employee may be required by 
the eniployer to peyform overtime work in any of the following cases: 
(a) 
When the country is at war or when any other national or local emergency 11as 
been declared by Congress or the Chief Executive; 
(b) 
When it is necessary to prevent loss of life or property or in case of imminent 
danger to public safety due to an actual or impending emergency in the locality caused by serious 
accidents, fire, Rood, typhoon, earthquake, epidemic or other disaster or calamity; 
16 


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(c) 
When there is urgent work to be performed on machines, installation or 
equipment, in order Lo avoid serious loss or damage to the employer or some other cause of 
similar nalure; 
(d) 
When h e  work is necessary to prevent loss or damage to perishable goods; 
(e) 
Where the completion or continuation of the work started before the eight (8th) 
hour is rrecessary to prevent serious obstruction or prejudice to the business or operations of the 
employer. 
Any employee required to render overtime work under this Article shall be paid the 
additional compensation required in this Chapter. 
ARTICLE '70. Computation of additional compensation. - For purposes of 
coinpi.lting overtime and oeier additional remuneration as required by this Chapter the regular 
wage of an employee shall include the cash wage and tlie corresponding cash equivalent of 
The facilities provided by the employer ifthe value of the same is deducted from the salary ofthe 
eniployee or added to his salary as part ofhis regular wage. (Art.90-a) 
TITLE I 
WORKING CONDXTIQNS AND REST PERIODS 
CHAPTER I1 
WEEKLY REST PERIODS 
ARTICLE 71. 
Right to weekly rest day. - 
(a) It shall be the duty of every 
employer, whether operating for profit or not, to provide each of his employees a rest period of 
not less than twenty-four consecutive hours after every six consecutive normal work days. 
(b) 
The employer shall determine and schedule the weekly rest day of his employees, 
subject to collective agreement and to such rules and regulations as the Secretary of Labor and 
Ih~~loy~nent 
may provide. However, the employer shall respect the preference of employees as 
to their weedy rest day when such preference is based on religious grounds. 
ARTICLE 72. 
When employer may require work on a rest day. -The 
employe1 
may require his employees lo work on any day: 
(a) 
In case of actual or impending emergencies caused by serious accidents, fire, 
flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and 
property or immiiieiit danger to public safety; 
(b) 
In cases of urgent work to be performed on the machinery, equipment or 
installatiori to avoid serious loss which the employer would otherwise suffer; 
(c) 
In the event of abnormal pressure of work due to special circumstances, where the 
cmployer cannot ordinarily be expected to resort to other measures; 
(d) 
(e) 
To prevent loss or damage to perishable goods; 
Where the nature of the work requires continuous operations and the stoppage of 
work inay result in irreparable injury or loss to the employer; and 
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,> ,l 
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(9 
Under other circumstances analogous or similar to the foregoing as determined by 
the Secretary of Labor and Employment. 
ARTICLE 73. 
Compensation for rest day, Sunday or holiday work. -(a) 
Where 
an employee is made or permitted to work on his scheduled rest day, he shall be paid an 
ailclitional coinperisation of at least thirty percent (30%) of his regular wage. An employee shall 
he entitlecl to such additional compensation for work performed on Sunday only when it is his 
established rest day. 
(b) 
When the nature of the work of the employee is such that he has no regular 
workdays and no regular rest days can be scheduled, he shall be paid an additional compensation 
of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays. 
Work performed on any special holiday shall be paid an additional compensation 
of at least thirty (30%) percent of the regular wage of the employee. Where such holiday work 
falls or1 the employee's scheduled rest day, he shall be entitled to an additional compensation of 
ai least fiRy percent (50%) of his regular wage. 
(e) 
(d) 
Where the collective bargaining agreement or other applicable employment 
contract stipulates the payment of a higher premium pay than that prescribed under this Article, 
the employer shall pay such higher rate. 
TITLE I 
WORKING CONDITIONS AND REST PERIODS 
CHAPTER 111 
HOLIDAYS, SERVICE INCENTIVE LEAYrES 
AND SERVICE CHARGES 
ARTICLE. 74. 
(a) Every worker shall be paid 
his regular daily wage during regular holidays, 
Right to Holiday and 13th Month Pay. - 
except in rctail and service establishments regularly employing less than (10) workers; 
(b) 
The employer may require an employee to work on any holiday but such 
employee shall he paid a compensation equivalent to twice his regular rate; and 
(c) 
As used in this Article, "holiday" includes: 
New Year's 
Day, 
Mauiidy 
Thursday-, Good Friday, the ninth of April, the first of May, the twelflh of June, the last 
Sunday o f  August, the thirtieth of November, the twenty-fifth and the thirtieth of December, 
aid the day designated by law for holding a general election. 
(d) All employers are required to pay all their rank and file employees regardless of the 
nature of the employment, a 13th-month pay not later than December of every year. The 
provisions of Presidential Decree No. 851 shall apply. 
(e) 'The provisions of PD 1083 regarding payment of holiday pay for days therein 
enumerated as IbKuslini holidays shall continue. (Art.94-a) 
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ARTICLE '75. 
(a) Every employee who has rendered at least one year of service shall be entitled 
to a yearly service incentive leave of ten (10) days each with pay. Unused service incentive 
leave may be converted to cash at the option of the employee. 
Right to Service Incentive Leave. - 
(b) This provision shall not apply to those who are 
already enjoying the benefit 
herein provided, those enjoying vacation leave with pay of at least ten (10) days and those 
employed 
in 
establishments regularly employing 
less than ten 
employees 
or 
in 
establislmenls exempted from granting this benefit by the Secretary of Labor after considering 
the viability or financial condition of such establislment. 
(c) The grant o€benefit in excess of that provided, herein shall not be made a 
subject of arbitration or any court or administrative action. (A, Art.95) 
ARTICLK 76. Paternity Leave and Right to Family and Medical Lenve -. 
Notwiths[andiizg any law, rules and regulations to the contrary, every married male employee in 
the private and public sectors shall be entitled to a paternity leave of seven (7) days with full pay 
for the first Four (4) deliveries of the legitimate spouse with whom lie is cohabiting. The male 
employee applying for paternity leave shall notify his employer of the pregnancy of his 
legitimate spouse and the expected date of such delivery. 
For purposes of this Act, delivery shall include childbirth or any miscarriage. 
The employers shall grant up to four (4) weeks of unpaid leave a year to employees 
whose spouse, parent, unmarried child, or when they themselves are suffering from serious 
illness. (11) 
ARTTCLE 77. 
Service charges. - 
All service charges collected by hotels, restaurants 
and similar establishments shall be distributed at the rate of eighty-five percent (85%) for all 
covered employees and fifteen percent (15%) for management. The share of the employees shall 
be equally distributed among them. In case the service charge is abolished, the share of the 
covered employees shall be considered integrated into their wages. 
TITLE TI 
WAGES 
CHAPTER 1 
PRELIMINARY MATTERS 
ARTICLE 78. 
Definition. - 
As used in this Title: (a) "Person" means an individual, 
partnership, association, corporation, business trust, legal representative or any organized group 
of persons. 
(h) 
"Employer" includes any person acting directly or indirectly in the interest of an 
employer in relation to an employee and shall include the Government and all its branches, 
subdivisions and iiistrunlentalities, all government-owned or controlled corporations and 
jnstitutions, as well as contractors and subcontractors and noli-profit private institutions or 
organizations. 
(c) 
"Employee" includes any individual employed by an employer as defined in the 
preceding pangraph. 
19 


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-1 3 
(d) 
"Agricultwe" includes farming in all its branches and among other things includes 
the cultivation ahd tillage of soil, dairying, the production, cultivation, growing and harvestilig of 
any agricultural and horticultural commodities, the raising of livestock or poultry, and ally 
practices performed by a farmer on a farm as an iiicident to or in conjunction with such famillg 
operations, but does not include the manufacturing or processing of sugar, coconuts, abaca, 
tobacco, pineapples 01' otlm farm products. 
(e) 
(f) 
"Employ" includes to suffer or permit to work. 
"Wage" paid to any employee shall mean the remuneration or earnings, however 
designated, capablc of being expressed in terms of money, whether fixed or ascertained on a 
time, task, piece, or conmission basis, or other method of calculating the same, which is payable 
by an eniployer to an employee under a written or unwritten contract of employment for work 
done ox to be done or for services rendered or to be rendered and includes the fair and reasonable 
value, as deteriniiied by the Secretary of Labor and Employment, of board, lodging or other 
hcilitics customarily furnished by the employer to the employee. "Fair and reasonable value" 
shall not include any profit to the employer or to any person affiliated with the employer. 
(Art.97-a) 
ARTICLE 79. 
Application of Title. - 
This Title shall not apply to farm tenancy or 
leasehoid, domestic service and persons working in their respective homes in needlework or in 
any cottage indusby duly registered in accordance with law. 
TITLE I1 
WAGES 
CHAPTER II 
MINIMUM WAGE MTES 
hRTICL93 
80. 
Regional ininimum wages. - The minimum wage rates for 
agricuitural and lion-agricultural employees and workers in each and every region of the country 
shall be those prescribed by the Regional Tripaitite Wages and Productivity Boards. 
ARTICLE 81. 
Prohibition against elimination or diminution of benefits. - 
Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or 
other employee benefits being enjoyed at the time of the promulgation ofthis Code. 
ARTICLE 82. 
Payment by results. -The 
Secretary of Labor and Employment shall 
regulate the payment 01 wages by results, including pakyao, piecework and other non-time work, 
in order to ensure the payment of fair and reasonable wage rates, preferably through time and 
motion studies or in consultation with representatives of workers' and employers' organizations, 
TITLE 11 
WAGES 
CHAPTER XI1 
PAYMENT OF WAGES 
ARTICLE 83. 
Forms of payment. - No employer shall pay the wages o f  an 
employee by means of promissory notes, vouchers, coupons, tokens, tickets, chits or any 
object other tian legal tender, even when expressly requested by the employee. 
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3 .) 
l’ayment 
o f  wages by check or money order or through a bank, shall be allowed when 
such manner of payment is customary or advisable, or is necessary because 
of special 
circurnstances as specified in appropriate regulations to be issued by the Secretary of Labor 
and Employment or as stipulated in a collective bargaining agreement. (A, Art.102) 
AliTlClLE 84. 
Time of payment. - 
Wages shall be paid at least once every two (2) 
weeks or twice a month at iiitemals not exceeding sixteen (16) days. If on account of foi-ce 
n?rqeuru or circumstances beyond the employer’s control, payment of wages on or within the 
time hcrein provided cannot be made, the employer shall pay the wages immediately after such 
/?me majeure or circumstances have ceased. No employer shall make payment with less 
frequency than once a month. 
:[‘he paymerit of wages of employees engaged to perform a task which cannot be 
completed in two weeks shall be subject to the following conditions in the absence of a collective 
bargaining agreement or arbitration award: 
(1) 
‘That payments are made at intervals not exceeding sixteen days, in proportion to 
the ‘amount of work completed; and 
(2) 
AKIYCLE 85. 
Thzt final settlement is made upon completion of the work. 
Place of payment. - 
Payment of wages shall be made at or near 
the place of undertaking, except as otherwise provided by such regulations as the Secretary of 
Labor may prescribe under coiiditions to ensure greater protection of wages. 
ARTICLE 86. 
Direct payment of wages. - 
Wages shall be paid directly to the 
workers to whom they are due, except: 
(a) 
In cases of force majeure rendering such payments impossible or under other 
special circumstances to be determined by the Secretary of Labor in appropriate regulations, in 
which case the worker may be paid through another person under written authority given by the 
worker for the purpose; or 
(b) 
Where the worker has died, in which case the employer may pay the wages of the 
deceased worker to the heirs of the latter Without the necessity of intestate proceedings. The 
claimait, iC they are all of age, shall execute an affidavit attesting to their relationship to the 
deceased aiid the fact that they are his heirs, to the exclusion of all other persons. If any of the 
heirs is a minor, the affidavit shall be executed on his behalf by his natural guardian or nexl of 
liiii. The affidavit shall be presented to the employer who shall make payment through the 
Secretary of Labor or his representative. The representative ofthe Secretary of Labor shall act as 
referee in dividing the aniount paid among the heirs. The payment of wages under this Article 
shall absolve the employer of any further liability with respect to the amount paid. 
ARTICLE 87. Contractor or subcontractor. - Whenever an employer enters into a 
contract with another person for the performance of the former’s work, the employees of the 
contractor and of ihe latter‘s subcontractor, if any, shall be paid in accordance with the 
provisions of this Code. 
In the event that the contractor or subcontmctor fails to pay the wages of his employees 
in accordance wiih this Code, the employer shall be jointly and 
severally liable with his 
contractor or subcontractor to such employees to the extent of the work performed under the 
contract, in the same manner and extent that he is liable to employees directly employed by him. 
21 


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“Labor-only” coiitmcting is hereby declared uulawful. For this ,puqose, labor-only 
contractiug shall rekr to an arrangement where the contractor or subcontractor merely recruits, 
supplies or places workers to perform a job, work or service for a principal, and any of the 
foollowi~~g 
elenleiits are present: 
(1) 
The ContYdCtOr or subcontractor does not have substantial capital or investment 
wlU;ch relates to the job, work or service to be performed and the employees recruited, supplied 
or placed by such contractor or subcontractor are performing activities which are directly related 
to the main business of the principal: or 
(2) 
The contractor does not exercise the right to control the performance o f  the work 
of the conlractual employee. 
The foregoing provisions shall be without prejudice to the application of Article 251(c ) 
of the Labor Code, as ‘amended. 
“Substantia1 capital or investment” refers to capital stoclts and subscribed capitalization 
in the case o l  corporations, tools, equipment, implements, machineries and work premises, 
actually and directly used by the contractor or subcontractor in the performance or completion of 
the job, work or service contracted out. 
The ‘‘riglit to control” shall refer to the right reserved to the person for whom the services 
of the conlractual workers are performed, to determine not only the end to be achieved, but also 
the inanner and means to be used in reaching that end. (Art.106-a) 
AIX‘ITCLE 88. 
Licensing 
of job contractors. - The Secretary of 
Labor 
and 
Employment through the Regional Office shall issue qualified applicants the job contractor’s 
license in accordance with guidelines prescribed for the purpose. The applicant must be a 
Filipiiio citizen or a corporation of which one hundred percent (100%) of authorized and voting 
capiral is owned and controlled by Filipino citizens, a partnership, cooperative, craft union or any 
other entity. 
Such a contractor shall, likewise, comply with the requirements of other 
government mthorities. (n) 
AR’YICLE 89. 
Indirect employer. - 
The provisions of the immediately preceding 
Arlicle shall likewise apply to any person, partnership, association or corporation which, not 
being an employer, contracts with an independent contractor for the performance of any work, 
task, joh or project. 
AItTlCLE 90. 
Posting of bond. - 
An employer or indirect employer may require 
the conlractor or sub-contractor to furnish a bond equal to the cost of labor under contract, on 
condition that the bond will answer for the wages due the employees should the contractor or 
sub-contractor, as the case may be, fail to pay the same. 
AIZTICLE. 91. 
Solidary liability. - ‘The provisions of existing laws to the contrary 
notwit~istandillg, cvery employer or indirect employer shall be held responsible with his 
contractor or subcontractor for any violation of any provision o f  this Code. 
For pxrposes of determining the extent of their civil liability under this Chapter, they 
shall be considered as direct employers ifthe contractor or subcontractor is not authorized by the 
Secretary of Labor and Employment or his duly authorized representative to undertake 
contracting activities. (Ark. 109-a) 
ARTICLE 92. Worker 
preference in case of closure. - In the event of 
liquidation, closure or cessation o f  operations of an employer’s business, his 
bankruptcy, 
22 


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2 
3 
4. 
5 
6 
7 
8 
9 
lo 
11 
12 
13 
14 
15 
16 
17 
1 %  
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
3 4. 
3s 
36 
37 
38 
39 
4 0 
41 
42 
43 
44 
45 
46 
47 
4 8 
4 9 
5 0 
51 
52 
5; 
54 
5s 
workcers shall enjoy first and absolute preference as regards their wages and other monetary 
claiiiis, aiiy provisioii of 
law to the contrary notwithstanding. Such unpaid wages aiid 
monetary ciaitns shall be paid in full before clainis ofthe govermneiit and other creditors may be 
paid. (Art.110-a) 
ARTICLE 93. 
Attorney's fees. - 
(a) In cases of unlawfd withholding of wages 
the culpalde party may be assessed attorney's fees equivalent to ten percent of the amount of 
wages rccovered. 
(b) 
Xt'shail be uilawfd for any person to demand or accept, in any judicial or 
administrative proceedings for the recovery of the wages, attorney's fees which exceed ten 
pcrcent of the aniouit of wages recovered. 
TITLE I1 
WAGES 
CHAPTER IV 
PROHIBITIONS REGARDING WAGES 
ARTXCLE 94. 
Non-interference in disposal of wages. - 
No employer shall 
limit or otherwise interfere with the freedom of any employee to dispose of his wages. He shall 
not iii aiiy manner force, compel or oblige his employees to purchase merchandise, commodities 
or othcr property fiom the employer or from any other person or otherwise make use of any store 
or services of such employer or any other person. 
ARTICLE 95. 
Wage deduction. -No 
employer, in his own behalf or in behalf 
of any person, shall inalce any deduction fiom the wages of his employees except: 
(a) 
In cases where the worker is insured with his consent by the employer, and the 
deduction is to recompense the employer for the amount paid by him as premium on the 
insurance: 
(b) 
For union dues, in cases where the right of the worker or his union to check off' 
has been recognized by the employer or authorized in writing by the individual worker 
concerned; and 
(c) 
In cases where the employer is authorized by law or regulations issued by the 
Secretary of Labor. 
ARTICLE 96. 
Deposits for loss or damage. - 
No employer shall require his 
worker to make deposits from which deduction shall be made, for the reimbursement of loss of 
or damage to tools, materials or equipment supplied by the employer, except when the employer 
is engaged in such trades, occupations or business where the practice of making deductions or 
i.equiriiig deposits is a recognized one, or is necessary or desirable as determined by the 
Secretary of Labor and Employment in appropriate rules and regulations. 
ARTICLE 97. 
Limitations. - 
No deduction from the deposits of an employee for 
the actual amount of the loss or damage shall be made unless the employee has been heard 
the~eoii, and his respoixibility has been clearly shown. 
ARTICLE 98. 
Withholding of wages and kickbacks prohibited. - 
It shall be 
uulav\~fuI for any person, directly or indirectly, to witlrhold any amount from the wages of a 
23 


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4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
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16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
3 6 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
worker or induce him to give up any part of his wages by force, stealth,~intimidation, threat or by 
any other means whatsoever without the worker's consent. 
ArrICLk 99. 
Deduction to ensure employment. - It shall he unlawfd to 
make my deduction from the wages of any employee for the benefit of the employer or his 
representative or intermediary as consideration of a promise of employment or retention in 
employment. 
ARTICLE 100. 
Retaliatory measures. - 
It shall be unlawful for an employer to 
refuse to pay or reduce the wages and benefits, discharge or in any manner discriminate against 
airy employee who has filed any complaint or instituted any proceeding under this Title or has 
testified or is about to testify in such proceedings. 
ARTICLE 101.. 
False reporting. - 
It shall be unlawful for any person to make any 
slatement, report or record filed or kept pursuant to tlie provisions of this Code knowing such 
stateinerit, report or record to be false in any material respect. 
TITLE I1 
WAGES 
CHAPTER W 
WAGE STUDIES, WAGE AGREEMENTS 
AND WAGE DETERMINATION 
ARTICLE 102. Creation of the National Wages and Productivity Commission. 
- There is hereby created a National Wages and Productivity Commission, hereinafter referred 
io as 
tlie 
Commission which shall be attached to the Department of Labor and 
J3nploymeiit for policy and prograni coordination. 
?'he Commission shall be composed of three (3) representatives each from the 
govenmnicnt, the worlcers' and the employers' sectors. The Secretary of Labor and Employment 
aud the Director-General 
of the National Economic and Development Authority (IiEDA) 
shall serve as the ex-officio Chairman and ex-officio vice-Chairman respectively. The 
three 
(3) representatives each from worlcers and employers sectors shall he appointed by the 
President of the Philippines upon recommendation 
of the Secretary of 
Labor 
and 
Emnpioymeiit on the basis or the list of nominees submitted by the worlters and employers 
sectors, respectively, and shall serve for a term of six (6 ) years. They shall receive a per 
diem of not less than five hundred pesos (9500.00) for each meeting actually attended, 
exclusive of actual, ordinary and necessary travel and representation expenses. 
The Commission shall be assisted by a Secretariat to he headed by an Executive 
President of the 
Director and two (2) Deputy Directors, who shall be appointed by the 
Philippines, upon the recommendation of the Secretary of Labor and Employment. 
The Executive Director shall have the same rank, salary, benefits and other emoluments 
as that of a Department Assistant Secretary, while the Deputy Directors shall have the same 
rank, salary, benefits and other emoluments as that of a Bureau Director, The members of the 
Commission representing labor and management shall have the same rank, emoluments, 
allotvauces and other benefits as .those prescribed by law for labor and manageznent 
representatives in the Employees' Protection and Rehabilitation Commission. (Art. 120-a) 
ARTliCLE 103. 
Powers and Functions of the Commission. - 
The Commission 
shall hive the following powers and functions: 
24 


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3 
4 
5 
G 
'1 
8 
9 
10 
11 
1% 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
2G 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
4.4 
45 
46 
47 
48 
49 
50 
51 
52 
53 
54 
9 
i 
(a) 
To act as the national consultative and advisory body to the President of the 
Philippines and Congress on matters relating to wages, incomes and productivity; 
To formulate policies and guidelines on wages, incomes and productivity 
(b) 
improvement at the enterprise, industry and national levels; 
(c,) 
To prescribe rules and guidelines for the determination of appropriate minimum 
wage and productivity measures at the regional, provincial or industry levels; 
(d) 
To review regional wage levels set by the Regional Tripartite Wages and 
Productivity Boards to determine if these are in accordance with prescribed guidelines and 
national development plans; 
(e) 
To undertake studies, researches and surveys necessary for the attainment of its 
fkctions aiicl objectives, and to collect and compile data and periodically disseminate 
infornmtior on wages and productivity and other related information, including, but not limited 
io, employiimit, cost-of-living, labor costs, investments and returns; 
(i) 
To review plans and programs of the regional Tripartite Wages and Productivity 
Boards to determine whether these are consistent with national development plans; 
(g) 
To exercise technical and administrative supervision over the Regional Tripatite 
Wages and Productivity Boards; 
(h) 
To call, from time to time, a national tripartite conference of representatives of 
government, workers, and employers for the consideration of measures to promote wage 
rationalization and productivity; and 
(i) 
Act. (Art.l2l-a} 
'To exercise such powers and functions as may be necessary to implement this 
ARTICLE 104. 
Creation of Regional Tripartite Wages and Productivity Boards. 
-- 
There is hereby created Regional Tripartite Wages and Productivity Boards, hereinafter 
referred to as Regional Boards in all regions, including autonomous regions as may be 
established by law. The Commission shall determine the officesheadquarters of the respective 
Regional Boards. 
The Regional Boards shall have the following powers and functions in their respective 
territorial jnrisdiction: 
(a) 
7'0 develop plans, programs and projects relative to wages, incomes and 
poductivity improvemeiit for their respective regions; 
(b) 
To determine and fix minimum wage rates applicable in their respective regions, 
provinces or industries therein and lo issue the corresponding wage orders, subject to guideliiies 
issued by the Commission; 
(c) 
To undertake studies, researches, and surveys necessary for the attainment of their 
fwciioiis, objectives and programs and to collect and compile data on wages, incomes, 
productivity aid orher rel.ated information and periodically disseminate the same; 
(d) 
To coordinate with the other Regional Boards as may be necessary to attain llie 
policy and intention of this Code; 
25 


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3 
4. 
5 
G 
7 
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9 
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I2 
13 
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18 
19 
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21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
3 4 
35 
36 
37 
3 s  
33 
40 
41 
4 2 
4.3 
44 
45 
4 G 
4 7 
48 
49 
50 
51 
5 2 
53 
5 4 
55 
,, 
J J  
(e) 
To receive, process and act on applications for exemption from prescribed wage 
rates as may be provided by law or any Wage Order; and 
(Q 
TG exercise such other powers and functions as may be necessary to carry out 
their mandate under this Code. 
lmpleiiientation of the plans, programs and projects of the Regional Boards referred to in 
[he second paragraph, letter (a) of this Article, shall be through the respective regional offices of 
the Department of Labor and Employinent within their territorial jurisdiction; Provided, 
however, That the Regional Boards shall have technical supervision over the regional office of 
the Department of Labor and Employment with respect to the implementation of said plans, 
programs and projects. 
Each Regional Board shall be composed of the Regional Director of the Department o f  
Labor and Employment as chairman, the Regional Directors of the National Economic and 
Development Authority and Department of Trade and Industry as vice-chairmen and three (3) 
nieinbers each ii-om workers and employers sectors who shall be appointed by the President of 
the Philippines, upon recommendation of the Secretary of Labor and Employment, to be made on 
the basis of the list of nominees submitted by the workers and employers sectors, respectively, 
and who shall serve for a term ofthree (3) years. 
Each Regional Board to be headed by its chairman shall be assisted by a Secretariat. 
?%e members of the Board shall receive a per diem of not less than Five Hundred Pesos 
(@500.00) for each meeting actually attended, exclusive of actual, ordinary and necessary travel 
and representation expenses. (Art. 122-a) 
ARTXCLE. 105. Wage Order. - Whenever conditions in the region so wasrant, the 
Regional Board ai its own initiative or at the instance of the workers by a petition 
shall 
investigate and study all 
pertinent facts; and based on the standards and criteria herein 
prcscribed, shall proceed to determine whether a Wage Order should he issued. Any such 
hdinirnum Wage Order shall take effect after fifteen 
(15) 
days from 
its complete 
publication in at least one (I) newspaper of general circulation in the region. 
In the performance o f  its wage-determining functions, the Regional Board shall conduct 
public Iie~~~igsico~isi~lt~tions, 
giving notices to employees' 
and employers' groups, 
provincial, city and niunicipal officials and other interested parties. 
Any parly aggrieved by the Wage Order issued by the Regional Board may appeal 
such order to the Coinmission within ten (10) calendar days fiom the publication of such order. 
It shali. be mandatory for the Commission to decide such appeal wit?%n sixty (60) calendar days 
from the filing thereof. 
The filing of the appeal does not stay the order unless the person appealing such order 
shall -file with the Commission an undertaking with a surety or sureties satisfactory to the 
Commission for the payment to the eniployees affected by the order of the corresponding 
increase, in the event srwh order is affirnied. (Art.123-a) 
MITICLE. 106. StandarddCriteria for Minimum Wage Fixing. - The regional 
minimum wages to be established by the Regional Board shall be as nearly adequate as is 
economically feasible to maintain the minimum standards of living necessary for the health, 
efficiency 
and general well-being of the 
employees within the framework of the national 
economic and social development program. In the determination o f  such regional minimum 
wages, the Regional Board shall, among other relevant factors, consider the following: 
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5 
6 
I 
8 
9 
10 
11 
(a) The demand for living wages; 
(b) Wage acljustnient vis-a-vis the consumer price index; 
(c) The cost of living and changes or increases therein; 
(d) The needs of'worlms and their families; 
(e) The need to induce industries to invest in the countryside; 
(0 
Jinpownents in standards of living; 
13 
14 
15 
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19 
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23 
24. 
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2 s  
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37 
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39 
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41 
42 
43 
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45 
46 
47 
48 
49 
50 
51 
52 
53 
I, 
~ 
(g) The prevailing wage levels; 
(h) Fair return of the capital invested and capacity to pay 
(i) Hfects on employment generation and family income; 
(i) 'The eqnitable distribution of income and wealth along the imperatives of economic 
of employers; 
mid social development; and 
(k) Productivity 
The wages prescribed in accordance with the provisions of this Title shall serve as 
refcrence rate lor wage bargaining in establislments in every region. These wages shall include 
wages varying within industries, provinces or localities if in the judgment 
of the Regional 
Board conditions make such local differentiation proper and necessary to effectuate the purpose 
of this Title. 
Any person, company, corporation, partnership or any other entity engaged in business 
shall file and register annually with the appropriate Regional Board, Commission and the 
National Statistics Office an itemized listing of their labor component, specifying the names o f  
their workers aid employees below the managerial level, including learners and disabled 
handicapped workers who were hired under the terms prescribed 
in the employment 
contracts, and their corresponding salaries and wages. 
Where the application of any prescribed wage increase by virtue of a law or Wage 
order issued by any Regional Board results in distortions of the wage structure within an 
establishment, the employer and the union shall negotiate to correct the distortions. A.iiy 
dispute arising from wage distortions shall be resolved through the grievance procedure under 
their collective bargaining agreement and, if it remains unresolved, through voluntary 
arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be decided by 
the volantay arbitrator or panel of voluntary arbitrators within 
ten (10) calendar days 
from the time said dispnte was referred to voluntary arbitration. 
111 cases where there are no collective agreements or recognized labor unions, the 
employe~s and worlcers shall endeavor to correct such distortions. Any dispute arising 
theref~mi shall be settled through the National Conciliation and Mediation Board and, if 
it rcrmins unresolved after ten (10) calendar days of conciliation, shall be referred to the 
appropriate branch o f  the National Labor Relations Commission (NLRC). It shall be 
mandatory for the NLRC to conduct continuous hearings and decide the dispute within twenty 
(20) calendar days from the time said dispute is submitted for compulsory arbitration. 
21 


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6 
’7 
8 
9 
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I6 
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21 
22 
23 
24 
25 
26 
21 
28 
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30 
31 
32 
33 
34 
35 
36 
57 
38 
39 
40 
4 1 
42 
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44 
45 
46 
41 
48 
49 
50 
51 
52 
53 
54 
55 
The pendency o f  a dispute arising from a wage distortion shall not in any way delay the 
applicability of any increase in prescribed wage rates pursuant to the provisions of law or 
Wage Order. 
As used herein, a wage distortion shall mean a situation where an increase in prescribed 
wage rates results in the elimination or severe contraction o€ intentional quantitative differences 
in wagc or salary rates 
between and among employee groups in an establishment as to 
eiTcclively obliterate ihe distinctions embodied in such wage structure based on skills, length of’ 
service, or other logical bases of differentiation. 
AI1 worliers paid by result, including those who are paid on piecework, takay, paijaw or 
task basis, shall receive the wage rates prescribed in an Order from the Department of Labor and 
Employment approving the Payment-by-Result Plan. In the absence of such approval, the 
employee shall receive not less than the legal minimum wage per eight (8) hours of work a day, 
or a propoltion thereof for working less than eight (8) hours. 
All recognized learnership and apprenticeship 
agreements 
shall be considered 
automatically modified insofar as their wage clauses are concerned to reflect the prescribed 
wage rates. (Art.124-a) 
AlYfICLE 107. 
Freedom to bargain. - 
No Wage Order shall be construed to 
preveiit workers in particular firms or enterprises of industries from bargaining for higher wages 
wilh their respective employer. 
ARTICLE 108. 
Prohibition Against Injunction. - 
No preliminary or permanent 
injumction or temporary restraining order may be issued by m y  court, tribunal or other entity 
against any proceedings before h e  Commission or tlie Regional Boards. 
AKb’T.CLE 109. 
Non-diminution of Benefits. - 
No Wage Order issued by any 
Regioiial Board shall provide for wage rates lower than the statutory minimum wage rates 
prescribed by Congress. 
TITLE I1 
Wages 
CHAPTER VI 
ADMINISTRATION AND ENFORCEMENT 
ARTICLE 110. Visitorial and enforcement power. - (a) The Secretary of Labor 
and f3mployment or his duly authorized representatives, including labor regulation officers, 
shall have access to employers’ records and premises at any time of the day or night whenever 
work is being undertaken therein, and the right to copy therefrom, to question any employee 
and investigate any fact, condition or matter which may be necessary to determine 
violations or which may aid in the enforcement of this Code and of any labor law, wage 
order or rules and regulations issued pursuant thereto. 
(b) In cases where the relationship of employer-employee still exists, the Secretary of 
Labor and Employment or his duly authorized representatives shall have the power to issue 
conipiiance orders, after the parties are given the opportunity to present their sides, to give effect 
to tlie labor standards provisions of this Code and other labor legislations regardless of the 
amount involved based on the findings of labor regulation officers or 
industrial safely 
28 


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2 
4 
5 
6 
7 
s 
9 
10 
11 
12 
13 
14 
15 
I. 6 
1 '7 
18 
19 
20 
21 
'1 7 
2.3 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
3s 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
54 
3 
I- 
.-? 
3 3 
engineers made in tlie conrse of inspection. The Secretary or his duly authorized representatives 
shall issue writs of execution lo the appropriate authority for the enforcement of their orders, 
cxcept in cases where the employer contests the Gndings of the labor regulation officer 
and raises issues supported by documentary proofs which were not considered in the course of 
inspection. 
(c) The Secretary of Labor and Employnient may likewise order stoppage of work 
or suspension of operations of any unit or department of an establishment when non- 
compliance with the law or implementing rules and regulations poses grave and imminent 
danger to the health and safety of workers in the workplace. Within twenty-four hours, a 
hearing shall be conducted to determine whether an order for the stoppage of work or 
suspensioii of operations shall be lifted or not. In case tlie violation is attributable to 
the 
fault of the employer, he shall pay the employees concerned their salaries or wages 
dnring  he period of such stoppage of work or suspension of operation. 
(d) It shall be wnlawful for any person or entity to 
obstruct, impede, delay or 
otherwise 
render ineffective the visitorial and enforcement powers or 
orders of the 
Secretary of Labor or his duly authorized representatives issued pursuant to the authority 
granted under this article, and no inferior court or entity shall issue temporary or permanent 
injunction or restrainjng order or otherwise assume jurisdiction over any case involving the 
enforcement orders issued in accordance with this article. 
(e) Any government employee found guilty of violation of, or abuse of authority, 
uiidcr this Article shall after appropriate administrative investigation, be subject to summary 
dismissal from the service. 
(f) 'lie Secretary of Labor and Employment may, hy appropriate regulations require 
employers io keep and maintain such employment records as may be necessary in aid df 
his visitorial and enforcenient powers under this Code. (Art.128-a) 
AXYI'ICLE 111. 
Recovery of wages, simple money claims and other benefits. - 
Upon coniplaint of any inierested party, the Regional Director of the Department of Labor and 
Einployrnent or any of the duly authorized hearing officers of the Department is empowered, 
through sunu-~ary proceeding and after due notice, to hear and decide any matter involving the 
recovery of wages and other monetary claims and benefits, including Iegal interest, owing to an 
employee or person employed in domestic or household service or househelper under this Code, 
arising h m  eiiililoyer-eniployee relations: Provided, that such complaint does not include a 
ciaim for reinstatement: Provided, further, that the aggregate money claims of each employee or 
househelper do not exceed fifty thousand pesos (P50,OOO). The Regional Director or hearing 
oflicev shall decidc or resolve the complaint within thirty (30) calendar days from the date of the 
filing of the same. Any sum thus recovered on behalf of any eniployee or househelper pursuant 
to this Article shall be held in a special deposit account by, and shall be paid, on order of the 
Secretary of Labor and Employment or the Regional Director directly to the employee OT 
househelpei. concerned. Any such sum not paid to the employee or househelper, because he 
cannot be located after diligent and reasonable effort to locate him within a period of three (3) 
ycaxs, shall be held as a special fund of the Deparlment of Labor and Employment to be used 
exclusively for the amelioration and benefit of workers. 
Any decision or resolution of the Regional Director or hearing officer pursuant to this 
provision may be appealed on the same grounds provided in Article 225 of this Code, within five 
(5) calendar days from receipt of a copy of said decision or resolution, to the National Labor 
Relations Commission which shall resolve the appeal within ten (10) calendar days from the 
submission of the last pleading required or allowed under its rules. 
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9 
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I1 
12 
13 
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I6 
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19 
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23 
24. 
25 
26 
27 
28 
29 
30 
3s 
32 
33 
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36 
37 
38 
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40 
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44 
4 5 
46 
47 
48 
49 
50 
5s 
52 
53 
5 4 
55 
The .Secretary of Labor and Employment or his duly authorized represelltative may 
supervise the payinelit of unpaid wages and other monetary claims and benefits, including legal 
interest, found owing to any employee or househelper under this Code. 
TITLE I11 
Productivity and Performance Incentives and Gainsharing Program 
CHAPTER I 
POLICY AND ~
~
~
I
~
ARTICLE 112;. Policy - It is the declared policy ofthe state to encourage higher levels 
or productivity, recognizing the complex challenges of globalization, in order that Philippine 
products ‘and services can meet global competition, maintain industrial peace and harmony and 
proiuote tlie principles of panership and shared responsibility in the relations between workers 
and eniployers so as to strengthen the cooperation between labor and capital, and further 
recognizing the right of labor to its share in the fruiis of production and the right of business 
enterprises to reasonable return on investment and to expansion and growth, and accordingly to 
provide corresponding incentives to both labor and capital for undertaking voluntary programs 
that ensure worlcers with a just share in the fruits of their labor in relation to the profit yielded to 
the employer as a result of increased productivity and, thus, enhance the quality of life of the 
workers and employees. (11) 
ARTICLE 113. Definition of Terms -As used herein: 
(a) 
“Business Enterprise” - refers to industrial, agricultural or agro-industrial 
establishments engaged in the production, manufacturing, processing, repacking or assembly of 
goods, including service-oriented enterprises that are established and operated for profit or gain. 
(b) 
“Labor-Management Committee” - refers to a negotiating body in a business 
enlerprise composed of the representatives of labor and management created to establish a 
productivity and performance incentives and gainsharing program, and to settle disputes arising 
therefrom in accordance with section 9 hereof. 
(c) “Productivity and Performance Incentives Program” - refers to a formal agreement 
voluntary established by a joint labor-management committee or any existing labor-management 
mechanism containing a productivity and performance improvement program that will proniote 
gainful ciiiploynient, improve working conditions, attain and maintain industrial peace and result 
iii increased producl.ivity aid efficiency. Including cost savings, as well as a gainsharing 
progmm wliereby,tlie employer and the workers share in the positive results of business 
operation brought about by improvement in productivity. The agreement shall be ratified by at 
least a nmjority of the employees who have rendered at least six (6) months of continuous 
service. In case the joint labor-management committee makes fundamental changes in the 
prograin, the employees shall likewise ratify such clianges. 
(d) “C*ainsharing” - refers to a reward system formulated to complement the productivity 
and performance inceiitives program designed to improve the productivity performance of the 
organiz,atioii. The gainsharing system to be adopted by business enterprises may take the form of 
profir sharing or other forms of gainsharing mechanisms such as productivity bonus, 
perforrnnnce bonus, production bonus, employee stock option plan, among others. (n) 
30 


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47 
48 
49 
50 
51 
52 
5:; 
5 4 
55 
CEIAPTER I1 
COVERAGE 
ARTICLE 114. Coverage - this title shalI apply to all business enterprises with or 
without existing and duly recognized collective bargaining representatives, including 
governnment-owned and controlled corporations performing proprietary functions. It shall cover 
all employees and workers regardless of their designation or status and irrespective of the 
iiiaiiiiei and mode by which their wages are paid. (n) 
CHAPTER I11 
CONTENTS OF PKODUCTIVITY AND PEJWORNIANCE INCENTIVES AND 
GAINSHARING PROGRAM 
ARTICLE 115. Productivity and performance incentives and gainsharing program - 
(a) The productivity and performance incentives program shall contain provisions for 
measuring productivity, performance and efficiency iniprovements, the gainsharing or reward 
systcni adopted in sharing productivity bonuses, coverage, percentage sharing, and forms of 
bonus payment in accordance with the terms and conditions that may be agreed upon by labor 
and managcment: Provided, that the productivity bonus shall be distributed at least once a year, 
or such Lreqncncy as may be determine by the parties. 
(b) Productivity agreements voluntarily reached by the parties as provided in this title 
may supplement existing collective bargaining agreements. (n) 
~
~
~
~
~
~
C
L
E
 
116. Benefits and Tax Incentives. - (a) Subject to the provisions of section 6 
hereof, a business enterprise which adopts a productivity and performance incentives and 
gaiilsharing progmn, duly and mutually agreed upon by parties to the labor-management 
coiiiniitiee, shall be granted a special deduction from the gross income equivalent to fifty percent 
(50%) of the total productivity bonuses given to employees under the program over and above 
the total allowable ordinary and necessary business deductions for said bonuses under the 
nacional internal revenue code, as amended. 
(b) Grants for manpower training and special studies given to rank-and-file employees 
pursuant to a skills development, program prepared by the labor-management committee under 
the productivity and performance incentives program shall also entitle then business enterprises 
to a special deduction from gross income equivalent to fifty percent (50%) of the total grants 
over and above the allowable ordinary and necessary business deduction for said grants under the 
iiational internal revenue code, as amended. 
(c) Bonuses provided for under the productivity and performance incentives and 
gainsharing program shall be given to the employees in a manner determined by the parlies from 
ihe start of such program over and above existing boiluses granted by the business enterprises 
and by kiw, provided, that the said bonuses shall not be deemed as salary increases due the 
employees and workers. 
(d) The special deductions from the gross income provided for herein shall be allowed 
s!ariiiig Llie next taxable year after the effectivity of this title. (n) 
ARTICLE 117. Notification. - A business enterprises which adopts a productivity aid 
perhinnnnce inceiitivcs and gainsharing prograni shall submit copies of the same to the 
appropriate regional tripartite wages and productivity board for evaluation and certification. The 
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.l 
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3 s 
board shall t h y  foiward the certifiable productivity incentives program of business enterprises to 
the bureau o f  internal revenue for record purposes. (n) 
ARTICLE 11 8. Non-diminution of Benefits. - Nothing in this title shall be construed to 
diminish or reduce any benefits and other privileges enjoyed by the workers under existing laws, 
ciecrees, executive orders, company policy or practice, or any agreement or contract between the 
employer and employees. (n) 
CHAPTER IV 
FoxwAnoN OP LABOR-MANAGEMENT COMMITTEE AND DISPUTES AND 
GRIEVANCES 
AK7XXE 119. Labor Management Committee. - (a) A business enterprise or its 
employees, through their authorized representative, may initiate the formation of a labor- 
managenlent committee or any labor-management mechanism that shall be composed o f  
representatives from tlie management and from the rank-and-file employees which shall establish 
aid implement a productivity and performance incentives program and settle disputes arising 
thercfiom in accordance with section 9 hereof: provided, that both management and labor shall 
iiwe equal representation in said committee or mechanism: provided, further, that at the request 
of any party to the negotiation, the national wages and productivity boards of the department of 
lalmr and eiiiployment shall provide the necessary studies, technical information and assistance, 
and expert advice to enable the parties to conclude productivity agreements. In case there is 
already an existing labor mechanism in the enterprise, such mechanism may suffice; provided, 
that it includes as one of its objectives the development and implementation of a productivity and 
performance incentives and gainsharing program. 
(b) In business enterprises with duly recognized collective bargaining representatives, the 
representatives o f  labor shall be those designated by the collective bargaining agent of the 
bargaining unit. 
(c) In business enterprises without duly recognized collective bargaining representatives, 
the representatives of labor shall be elected by at least a majority of all rank-and-file employees 
who have rendered at least six (6) months of continuous service. (N) 
AIXTICLF, 120. Disputes and Grievances. - Whenever disputes, grievances, or other 
matters arise from the interpretation of iniplementation of the productivity and performance 
ince~itivcs program, the Labor-Management committee shall meet to resolve the dispute within 
fifteen (15) days and shall suspend the effectivity of the program pending settlement of such 
dispute or grievance: provided, however, that if within the period the dispute remains unresolved, 
the committee may seek the assistance of a third party such as the National Conciliation and 
Mediation Board of tlie Department of Labor and Employment, the Regional Tripartite Wages 
and Produclivity Boards or a facilitator acceptable to both parties in resolving the conflict. The 
third party shall act only in an advisory capacity for purposes of rendering interpretation aid 
Clrvification to facilitate the adoption of a final resolution of the parties: provided, further, that 
the business enterprises shall not be deemed to have forfeited any tax incentives accrued prior to 
the date of occurrence of such dispute or grievance, and the workers shall not be required to 
reimburse the productivity bonuses already granted to them under the incentive program. 
Likewise, bonuses that have already accrued before the dispute or grievance shall be paid the 
worlcers within six (6) month from their accrual. Any dispute which remains unresolved within 
thirty (30) days from the time of its submission to the labor management committee shall be 
submitted to voluntary arbitration in line with the pertinent provisions of the labor code, as 
amended. 
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51) 
51 
5% 
53 
54 
n .I 
The productivity and performance incentives and gainsharing program shall include the 
iiaiiie ol the voluntary arbitrator or panel of voluntary arbitrators previously chosen and agreed 
upon by the parties. (n) 
ARTICLE 121. Penalty. - Any person who shall make any fraudulent claim under this 
title, rcgarclless of whether or not a tax benefit has been granted, shall upon convictioii be 
punished with imprisorment of not less than six (6) iiioiiths but not more than one (1) year or a 
fine of not less than six thousand pesos (P6,000.00), or both, at the discretion o f  the court, 
without prejudice to prosecution for any other acts punishable under existing laws. 
In case of partnerships or corporations, the penalty shall be imposed upon the officer or 
eiiiployce I V ~ Q  luiowingly approved, authorized or ratified the filing of the fraudulent claim, and 
o tiler person2 responsible therefore. (n) 
TITLE ZV 
WORKING CONDITIONS FOR SPECItiL GROUPS OF EMPLOYEES 
CHAPTER I 
EMPLOYMENT OF WOMEN 
AItTICLE, 122. 
Night work prohibition. -No 
woman, regardless of age, shall be 
employed or permined or suffered to work, with or without compensation: 
(a) 
In any industrial undertaking or branch tlmeof between ten o'clock at night and 
six o'clock in the morning of the following day; or 
(b) 
In asiy commercial or non-industrial undertaking or branch thereof, other than 
agriculkiral, between midnight and six o'clock in the morning of the following day; or 
(c) 
In any agricultural undertaking at night time unless she is given a period of rest of 
riot less than nine (9) consecutive hours. 
ARTLCLE. 123. Exceptions. - The prohibitions prescribed by the preceding Article 
shall not apply in a& ofthe following cases: 
(a) In cases of actual or impending emergencies caused by serious accident, fire, flood, 
typlioon, earthquake, epidemic or other disasters or calamity, to prevent loss o f  life or property, 
Or in cases offorce majeure or imminent danger to public safety; 
(5) 
In cases of urgent work to be performed on machineries, equipment 
or 
i.nstallatioti, to avoid serious loss which the employer would otherwise suffer; 
(c) Where the work is necessary to prevent serious loss ofperishable goods; 
(d) Where thc woman employee holds a responsible position of managerial or technical 
natiuc, or where the woman employee has been engaged to provide health and welfare service; 
(e) Where the women employees are immediate members o f  the family operating the 
establislunent or undertaking; and 
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31 
32 
3 3 
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3s 
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37 
38 
39 
4.0 
41 
42 
4 3 
44 
45 
46 
47 
4 8 
49 
50 
51 
52 
53 
54 
5s 
(0 .Under other analogous cases exempted by the Secretary of Labor and Employment 
in appropriate regulations. (Art. 13 I-a) 
ARTXCLE 124. 
Facilities for women. - 
The Secretary of Labor and Employment 
shall establish standards that will insure the safety and health of women employees. In 
appropriate cases, lie shall by regulations require any employer to: 
(a) 
Provide seats proper for women and permit them to use such seats when they are 
free horn work and during worlung hours, provided they can perform their duties in this position 
without cickimeiit to efficiency; 
(b) 
To establish separate toilet rooms and lavatories for men and women and provide 
at least a dressing room for women; 
(c) 
To establish a nwsery in a workplace Tor the benefit of the women employees 
therein: and 
(d) 
To determine appropriate minimum age and other standards for retirement or 
temination in special occupations such as those of flight attendants aud the like. 
AR'HCLE 125. 
Maternity leave benefits. - 
(a) Every employer shall grant to 
any 1xegnan.t woman employee, whether married or not and regardless of her employment status, 
maternity leave of sixty (60) days for normal delivery and seventy-eight (78) days in case of 
caesarean delivery. The employer may require from any woman employee applying for 
inalernity leave the production of a medical certificate stating that delivery will probably tale 
place within two weeks. 
(b) 
The maternity leave shall be extended without pay on account of illness medically 
certified to arise out of the pregnancy, delivery, abortion or miscarriage, which renders the 
woinaii uiifit for work, unless she has earned unused leave credits from which such extended 
leave may be charged. 
(c) 
The rnaiernity leave provided in this Article shall be paid by the employer only 
for tbe first four deliveries or miscarriages by a woman employee. (Art.133-a) 
MXTICLE 126. 
Family planning services; incentives for family planning. - 
(a) 
Establishments which are required by law to maintain a clinic or infirmary shall provide free 
fimiiy pianriing services to their employees which shall include, but not limited to, .the 
applicaiion or use of contraceptive pills and intra-uterine devices. 
(b) 
In coordination with other agencies of the government engaged in the promotion 
of' hmily planning, the Department of Labor and Employment shall develop and prescribe 
incentive boiius schemes to encourage family planning among female workers in any 
establishment or enterprise. 
ARTiCLE 127. 
Discrimination prohibited. - It shall be unlafiul for any 
employer Lo discriminate against any woman employee with respect to terms and conditions of 
cmployiiierit solely on account of her sex. 
The following are acts of discrimination: 
(a) 
Giving preference to a male applicant over a female applicant in the hiring process, 
whether through notices, announcements or advertisements for employment or apprenticeship or 
in the actual recruitment, hiring or employment of workers where the particular job can be 
equally handled by a woman; 
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3 ;  
(b) 
Payment of a lesser compensation, including wage, salary or other form of 
rcinuncration and hinge benefits, to a female eniployee as against a male employee, for work of 
eqiiai value; 
(c) 
Favoring a male employee over a female employee with respect to promotion, 
assignment, training opportunities, study and scholarship grant solely on account of their sexes; 
a d  
l'avoring a male employee over a female employee with respect to dismissal of 
persolinel or the application of any retrenchmeiit policy of the employer solely on account o f  
(d) 
their scxes. 
Criminal liabilitv for the willful commission of any unlawfbl act as orovided in this 
~~ 
~~ 
article or any violation of the rules and regulations issued pursuant to Section 2 hereof shall be 
penalized as povided in Articles 293 and 294 of this Code: Provided, that the institution of any 
criminal action under this provision shall not bar the aggrieved employee from filing an entirely 
separatc and distinct action for money claims, which may include claims for damages and othcr 
affirmative reliefs. The actions hereby authorized shall proceed independently of each other. 
(Art. 13 5-a) 
ARTKCLE 1.28. 
Stipulation against marriage. - It shall be unlawful for an 
employer to require as a condition of employment or continuation of employment that a woman 
employee sball not get married, or to stipulate expressly or tacitIy that upon getting married a 
womm employee shall be deemed resigned or separated or to actually dismiss, discharge, 
discriminate or otherwise prejudice a woman employee merely by reason of her marriage. 
Prohibited acts. - It shall be unlawful for any employer: 
ARTICLE 129. 
(1) 
To deny any woman employee the benefits provided for in this Chapter or to 
discharge any woman employed by him for the purpose of preventing her from enjoying any of 
the benefits provided under this Code; 
(2) 
To discharge such woman on account of her pregnancy, or while on leave or in 
confiiieiiient due to her pregnancy; 
(3) 
To discharge or refuse the admission of such woman upon returning to her work 
Cor fear that she may again be pregnant. or 
(4) 
To deny any woman the benefits of employment or other statutory benefits under 
om laws by reason of her sex. (Art. 137-a) 
ARTICLE 130. 
Classification of certain women workers. - 
Any woman who is 
permitted or suffered to work with or without compensation in any night club, cocktail lounge, 
riassage clinic, bar or similar establishment, under the effective control or supervision of the 
einployer [or a substantial period of time as determined by the Secretary of Labor arid 
Employmeni, shall be considered as an employee of such establishment for purposes of labor and 
social Icgislation. 
TITLE I11 
WOKKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
CHAPTER I1 
EMPLOYMENT OF MINORS 
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28 
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30 
51 
32 
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36 
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38 
39 
40 
.11 
42 
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44 
4 5 
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47 
48 
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52 
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54 
7 I 
ARTJCLlL 131. Minimum employnbte age. - (a) Children below fifteen (15) years 
of uge shall not be employed, except: 
1. When a child in an industrial undertaking works directly under the sole responsibility 
of his parents or legal guardian and where only members of the employer's family are employed, 
Provided, that his employment, iieither endangers his life, safety, health and morals, nor impairs 
his nornial development aid in any way interferes with his schooling. 
2. Where employment or participation in public entertaiiment or information througb 
cinema, theater, radio or television is essential; Provided the employlnent contract is concluded 
by the child's parents or legal guardian, with the express agreement of the child concerned, if 
possible, and the approval of the Department of Labor and Employment. 
3. In other permissible employments as ma17 be deteimined by the Secretary of Labor and 
Employment taking into consideration the welfare and normal development of a child 
The following requirements in all instances, shall be strictly complied with: : 
1. 
The eniployer shall ensure the protection, health, safety, inorals and nomial 
development of the child; 
2. 
The enlployer shall institute measures to prevent the child's exploitation or 
discrimination, taking into account the system and level of remuneration, and the duration aid 
arrangeinelit of working time; and 
3. 
The employer shall formulate and implement, subject to the approval and 
supervision of competent authorities, a continuous program for training and skills acqukition of 
the child. 
In the above exceptional cases where any such child may be employed, the enlployer 
siiail first secure, beijxe engaging such child, a work permit from the Department of Labor and 
Einploynient which sliall ensure observance of the above requirements. 
'The Depamnent of Labor and Employment shall proinulgate rules and regulations 
necessary for the effective implementation of this section 
(b) Any person between fifteen (15) and eighteen (18) years of age may be employed 
for snch nuiiiber of hours and such periods of the clay as determined by the Secretary of Labor 
in appropilaic regulations. 
(c) i'he foregoing provisions shall in no case allow the employment of a person 
below cightccii (18) years of age in any work, undertaking or activity which is considered 
haz,it~lous Jicrcoi' and as may be h-ther determined by the Secretary of Labor arid Employment. 
(Art.139-a) 
ARTICLE 13%. Worst forms of child labor - No child shall be employed in or exposed 
to the worst Cornis of child labor which conlprised. of: 
1) 
All lorins of slavery or practices similar to slavery, such as the sale and 
tuaffickhig of children, debt bondage and serfdom, and forced or compulsory labor, including 
forced or coinpulsory recrnitmenl: of children for use in armed conflict; 
The use, procuring or offering of a child for prostitution, for the production of 
pornography or for pornographic performances; 
The use, procuring or offering of a child for illicit activities, particularly the 
p'odi iction and trdficking of drugs as defined in relevant international treaties; 
2) 
3) 
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47 
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51 
52 
53 
54 
.5 5 
FI 3 
4) 
Work which, by its nature or the circumstances in which it is carried out, is likcly 
to harm the health, sxfcty or morals of children. 
Any work, underl-dking or activity shall be considered hazardous if it falls under any of 
th- I, f ollowing conditions: 
A) 
It debases, degrades or demeans the intrinsic worth and dignity of a child as a 
hunian being; or 
13) 
It exposes the child to physical, emotioiial or sexual abuse, or is found to be 
highly strcssf~~l 
psychologically or may prejudice morals; or 
C) 
It is performed underground, underwater or at dangerous heights; or 
D) 
It involves the use of dangerous machinery, equipment and tools such as power- 
driven or explosive power-actuated tools; or 
E) 
It exposes the child to physical danger such as, but not limited to the dangerous 
feats of balaucing, physical strength or contortion, or which requires the manual transport of 
hemy loads; or 
F) 
It is perfomed in an unhealthy environment exposing the child to hazardous 
worlting conditions, elements, substances, co-agents or processes involving the ionizing 
radiation, chemicals, fire, flammable substances, noxious components and the like, or to extreme 
temperatures, noise levels, or vibrations; or 
G) 
It is perihrmed under particularly difficult conditions such as very long hoours, 
during the night, or without the possibility of returning home each day; or 
13.) 
It exposes the child to biological agents such as bacteria, fungi, viruses, 
protozoans, hematoads and other parasites, or to sub-human conditions; or 
I) 
It involves the manufacture or handling of explosives and other pyrotechnical 
products. 
Any employer fouind to be violating the provisions of paragraphs (c) and (d) hereoF, or 
h e  employer of the subcontractor who employs, or the one who facilitates the employment of a 
child in hazardous work, shall suffer the penalty of a fine of not less than ten thousand pesos 
(pl0,OOO.OO) biit not more than five hundred thousand pesos Cp500,000.00), or imprisonment of 
not less than six (6) months but not more than six (6) years, or both such fine and imprisonment 
at the discretion of the court. 
If a corporation commits the violation, the board of directors/trustees and officers, which 
include the president, treasurer and secretary of the said corporation, shall be penalized as 
provided for herein. 
'The secretary of Labor and Employment or hidher fully authorized representative may, 
after due notice and hearing, order the closure of any business firm or establishment found to 
have rqmatedly violated any of the provisions hereof more than three (3) times. Heishe may 
likewise order the immediate closure of any such firm or establishment if 
1) The violation of any provision hereof has resulted in the death, insanity or serious 
physical injury of a child employed in such establishment; or 
2) Such firm or establishment engaged or employed a child in prostitution or in obscene 
or lewd shows. 
In case of such closure, the employer shall be required to pay hisher employees their 
separation pay and other monetary benefits provided for by law. 
I'arents, biological or by legal fiction, and legal guardians found to be violating the 
provisions hereof shall pay the fine as provided herein or be required to render community 
service for not less than thirty (30) days but not more than one (1) year, or both such fine and 
conmiunity service at the discretion ofthe court: Provided, that a maximum length of community 
service shall be imposed on parents or legal guardians who have repeatedly violated the 
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provisions liereof three (3) times; Provided, further, that in addition to the community service in 
its maxiinurn period, the penalty of arrest0 menor shall be imposed on the parents or legal 
guardians who have repeatedly violated the provisions hereof more than three (3) times. (n) 
AI?.'~ICLE 133. 
Prohibition against child discrimination. - 
No employer shall 
discriminate against any person in respect to terms and conditions of employment on account of 
his age. 
TITLE I11 
WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
CHAPTER I11 
EMPLOYMENT OF HOUSEHELPERS 
AR'I'XCLE 134. 
Coverage. - 
This Chapter shall apply to all persons rendering 
services in households for compensation. 
"Domestic or household service" shall mean services in the employer's home which is 
usually necessary or desirable for the maintenance and enjoyment thereof and includes 
ministering to the personal comfort and convenience of the members of the employer's 
household, iiicludiiig services of family drivers. 
ARTICLE 135. 
Contract of Domestic service. - The original contract of 
Domestic service shall not last for more than two (2) years but it may be renewed for such 
periods as may be agreed upon by the parties. 
AItTICLE. 136. Minimum wage. - (a) Househelpers shall be paid the following 
minimum wage rates: 
One Thousand Two Hundred (P1,200.00) pesos a month for househelpers in 
the National Capital Region; 
One Thousand (P1,OOO.OO) pesos a month for those in other chartered cities 
and first-class municipalities; and 
Nine Hundred (P900.00) pesos a month for those in other municipalities. 
(1) 
(2) 
(3) 
Provided, that the employers shall review the employment contracts of their 
bousehelpers every three (3) years with the end in view of improving the terms and conditions 
tnercol: (Art.143-a) 
ARTICLE 137. 
Minimum cash wage. - 
The minimum wage rates prescribed 
under this Chapter shall be the basic cash wages which shall be paid to the househelper in 
addition to lodging, food and medical attendance. 
ARTICLE 13% Payment of wages. - Payment of wages shall be made directly to the 
househelper in cash, at least once every two (2) weeks or twice a month. No deductions from 
said wages shall be made by the employer except those provided by law. The express written 
consent of the househelper shall first be secured before any deduction from hisher wages is 
made. (N) 
ARTICLE 139. Thirteenth (13th) month pay. - Revising for the purpose Guideline No. 
2'oC the revised guidelines on the implementation of the thirteenth month pay law (16 November 
1987). All househelpem shall be entitled to a thirteenth (13" ) month pay of Memorandum No. 
38 


28, said thineenlh (1 3'") inonth pay shall be paid to a househelpers not later than the l(ju' of 
l>cceinl)er of every ycar. (:I) 
ARTICLE 140. ibleixbership iir the Social Security Sjstern (SSS). - All houselxlpers 
regardless of age and compensation levels, shall be covered by the Social Security System (SSS) 
a d  be e,ntidicd to 1311. 'the benefits provided under Republic Act No. 1161, as amended. The 
e~iiployers of said house!ielpers shall pay for thc employer's share of the aforem.entioned SSS 
contribution i;vjthou! deducting the same from the monthly compensation of the househelpers. 
For this purpose, tlie Sock1 Security System (SSS) is hereby required to implement an 
outreac!i progrmi that will facilitate the remittance of SSS contributions by either tlie 
honicowilers or the househelpers by whatever rneans deemed feasible. Said outreach program 
should Le coriccptualized and initiated within a period of one (1) year from the date of effectivity 
h e r e d  (11) 
,?Lii<'i3CLK fi(l. Membership in the PBaillpp&~e Health Insurance Corporation 
(P~-fIJ21TKAL'TH), - All househelpers, regardless of age and compensation levels, shall be 
covered niiclar the Pliiiippine Health Insusance Corporation (Philhealth), and be entitled to all the 
benefiis wovideci for under the law. The employer of said househelper shall pay for t!ie 
I M I J ' I ~ ~ ~ ~  
i:ojlIpelisatiOil of the househelper. (n) 
-11 
%,.,~ 
pic>zi.'s shme of 13ie aro~ementioned l'hjlhealtii, XTithout deducting the same from thr 
AlllTICLE 242, Normal hotm of work. - Cognizant of the peculiarities of the 
re!a:.ioiiship 
between the employer and the househelper, the normal hours of work of 
.kl:i.;smhd7aJ1,sLY shall be sex at ten (10) hours per day, exclusive of one (1) hour breaks each lor 
t;ed!;l;t, 
imch sild dinner. Any work done by the househelper beyond the normal hours of 
worlc per day shall be duly compensated by the employer. Furthemore, the househelper shall be 
dlowed ai !east eight (8) hoas of continuous rest period per day. (n) 
L<.5XlCI,E 1.11.3. Regrrlisr worklrrg days. - No househelper shall render work for more 
than s i x  (6) days per week. While the specific day of the week set aside as rest day for The 
iioa:;ehe!per may be :!ipu!ated 
in the eniploymeirt confmct, the same may be changed for aootlier 
day of tile wcek upon The mutual agreement of 15e employer and the houseiielper as the 
exigeixici of the househoid may dictate. (n) 
bARTICLC; I44. Yacation 1e;lvcs. - AI! hoisehelpers shall be entitled .to a fo~irteeii (14) 
&a;. 
xwztion leave with pay, in addition to the one (1) day per week designated a.s the rest day, 
Saic! Icaye may only conimeiice at the end. of the first year of employment, arid shall not 
crninia!:; 5oia ycar to yex. (n) 
~i.RY'lCLX 145. Maternity beacfits. - All female househelpers shall be entilled to 
maternity beriafits pumu;iiit to article 133 ofthe Labor Code ofthe Philippines. (11) 
AT~'rIc:L,x 2 46. 
Assignment to non-honsefiold work. - 
No househelper sliall be 
ic;sigacd io work ic a coiixnercial, industxial or agriculhral enterprise at a wage or salary rate 
lo~ve: ~!rw 111~; provided for agricultural or non-agricultural worker 8s prescribed herein. 
Mi'rJCLp, 14,7. 
~~~0~~~~~~ for educstios. -If 
the househelper is urider the age 
of eighteen (1 P> yeas, the employer shall give hiin or her an opportunity for at least elemeiitasy 
education 'The cost o F such education shall be part of the househelper's compensation, unless 
there is ii stipulation to the contrary. 
llRTYCLE 148, 
Treatment of househclpers. - The employer shd! treat the 
h:)usel:-lper in a just and humane manner. In no case shall physical violence be used upon the 
Eoilse:1e1per. 
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AR'I'ICLE 149. 
Board, lodging and medical attendance. - 
The employer shall 
furnish (he househelper f'ree of charge suitable and sanitary living quarters as well as adequate 
food a d  medical attendance. 
ARTICLE 150. 
Indemnity for unjust termination of services. - 
If the period of 
household service is fixed, neither the employer nor the househelper may terminate the contract 
before the expiration ofthe term, except for ajust cause. If the househelper is unjustly dismissed, 
he or she shall be paid the compensation already earned plus that for fifteen (15) days by way of 
in dernuity . 
Jf the househelper leaves without justifiable reason, he or she shall forfeit any unpaid 
salary due him OK her not exceeding fifteen (15) days. 
AIU'ICLE 151. 
Service of termination notice. - 
If the duration of the household 
service is not determined either in stipulation or by the nature of the service, the employer or the 
househelper may give notice to put an end to the relationship five (5) days before the intended 
termination of the service. 
ARTICLE 152. 
Employment certification. - Upon the severance of the 
householci seivice relation, the employer shall give the househelper a written statement of the 
nature and duration ofthe service and his or her efficiency and conduct as househelper. 
iIIZTICLE 153. 
Employment records. - 
The employer may keep such records as 
he may deem necessary to reflect the actual terms and conditions of employment of his 
househelper which the latter shall authenticate by signature or thumbmarlc upon request of' the 
employer. 
TITLE 111 
\.VORI(ING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 
CHAPTER IV 
EMPLOYMENT OF HOMEWORKERS 
ARTXCLE 154. Regulation of industrial horneworliers. - The employment of 
iiidustrial homeworkers and field personnel shall be regulated by the Government through 
appropriate regulations issued by the Secretary of Labor and Employment to ensure the general 
welfare and protection of homeworkers and field personnel and the industries employing them. 
ARTICLE 
155. Regulations of Secretary of Labor and Employment. - The 
regulatioiis or orders to be issued pursuant to this Chapter shall be designed to assure the 
minimum ternis and conditions of employment applicable to the industrial homeworkers and 
field personnel involved. 
ARTICLE 156. Homeworker's Contractor as the Employer. - For pwposes of this 
Cl?&pter, the "eniployer" of homeworkers shall be the homeworker's contractor who for his 
iiccount or benefit, or 011 behalf of any person, directly : 
(1) Delivers any goods, articles or materials to be processed or fabricated in or 
about il home aid thereafter to be returned or to be disposed of or distributed 
in 
accordaiice with his directions; or 
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(2) Sells any goods, articles or materials for the purpose of having the same processed 
or fabricated in or about a home and then 
rebuys 
them 
&er 
such 
processing 
or 
fabrication. 
For the purpose 01 this Chapter, the Homeworker's Contractor shall be solidarily liable 
with any person for whom he may have engaged the services of the Homeworlcers. (Art.155-a) 
BOOK FOUR 
Health, Safety and Social Welfare Benefits 
TITLE I 
MEDICAL, DENTAL AND OCCUPATIONAL SA~ETY 
CHAPTER I 
MEDICAL AND DENTAL SERVICES 
ARTICLE 157. 
First-aid treatment- 
Every employer shall keep in his 
es~ablishinent such first-aid medicines and equipment as the nature and conditions of work may 
require, in ac.,:xdmice witli such regulations as the Department of Labor and Employments shdl 
prescribe. 
The eniployer shall talce steps for the training of a sufficient number of employees in 
Iirst-aid treatment. 
ARTICLE 15% 
Emergency medical and' dental services. - 
It shall be the duly 
of every employer to fuinish his employees in any locality with free medical and dental 
atteii~dance and facilities consisting of 
(a) 
The scrvjces of a full-time registered nurse when the number of employees 
exceeds 50 but not more than 200 except when the employer does not maintain hazardous wok 
places, in which case the services of a graduate first-aider shall be provided for the protection of 
the workers, where no registered nurse is available. The Secretary of Labor and Employment 
sliall provide by appropriate regulations the services that shall be required where the number of 
employees does not exceed fifty (50) and shall determine by appropriate order hazardous 
worlcpiaccs for purposes of this Article; 
(b) 
The services of a full-time registered nurse, a part-time physician and dentist, and 
an emergency clinic, when the number of employees exceeds two hundred (200) but not more 
than three hundred (300) and; 
(c) 
The services of a full-time physician, dentist and a full-time registered nurse as 
well as a dental clinic, and an infirmary or emergency hospital with one bed capacity for every 
one liuridrcd (1 00) employees, when the number of employees exceeds three hundred (300). 
In cases of hazardous workplaces, no employer shall engage the services of a physician 
or dentist who carmot stay in the premises o€the establishment for at least two (2) hours, in the 
case of those engaged on part-time basis, and not less than eight (8) hours in the case of those 
employed on full-time basis. Where the undertaking is non-hazardous in nature, the physician 
and dentist may be cngaged on retained basis, subject to such regulations as the Secretary of 
Labor and Employment may prescribe to insure immediate availability of medical and dental 
treatment and attendance in case of emergency 
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ARTICLE 159. 
When emergency hospital not required. - 
The requirement for 
an emergency hospital or dental clinic shall not be applicable in case there is a hospital or dental 
ciinic which is accessible from the employer's establishment and he makes arraiigements for the 
reservation therein ofthe necessary beds and dental facilities for the use of his employees. 
ARTICLE 160. 
Health program. - 
The physician engaged by an employer shall, 
in addition to his duties under this Chapter, develop and implement a comprehensive 
occupational health program for the benefit of the employees of his empIoyer. 
ARTICLE 161. 
Qualifications of health personnel. - 
The physicians, dentists 
and ilurses employed by employers pursuant to this Chapter shall have the necessary training in 
industrial medicine and occupational safety and health. The Secretary of Labor and Employment, 
in consultation with industrial, medical and occupational safety and health associations, shall 
establish the qualifications, criteria and conditions of employment of such health personnel. 
I-WUCCLE 162. 
Assistance of employer. -It shall be the duty of any employer to 
provide all the necessary assistance to ensure the adequate and immediate medical and dental 
attendance and treatment to an injured or sick employee in case ofemergency. 
TITLE I 
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY 
CHAPTER I1 
OCCUPATIONAL HEALTH AND SAFETY 
AR'X'XCLE 163. 
Safety and health standards. - The Secretary of Labor and 
Employment shall by appropriate orders set aid enforce mandatory occupational safety and 
health standards to eliminate or reduce occupational safety and health hazards in all work places 
and institute new and update existing programs to ensure safe and healthful working conditions 
in cili places o l  eniployment. 
ARTICLE 164. 
Research. - It shall be the responsibility of the Department of 
Labor and Employment to conduct continuing studies and researches to develop innovative 
nietliods, tecliiques and approaches for dealing with occupational safety and health problems; to 
discover latent diseases by establishing causal connections between diseases and work in 
environmental conclilions; and to develop medical criteria which will assure insofar as 
practicable that no employee will suffer impairment or diminution in health, functional capacity 
or life expectancy as a result ofhis work and working conditions. 
ARTICLE 165. 
Training programs. - The Department of Labor and 
Employment shall develop aid implement training programs to increase the number and 
competence of personnel in the field of occupational safety and industrial health. 
ARTICLE 166. 
Administration of safely and health laws. - 
(a) The Department 
of Labor and Eniployineiit shall be solely responsible for the administrafion and enforcement of 
occupational safety and liealth laws, regulations and standards in all establishments and 
workplaces wherever they may be located; however, chartered cities may be allowed to conduct 
industrial safety inspections of establishments within their respective jurisdiction where they 
have adcqnate facilities and competent personnel for the purpose as determined by the 
Deparbnent of Labor Employment and subject to national standards established by the latter. 
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(b) 
The Secretary of Labor and Employment may, through appropriate regulations, 
collect reasonable fees Tor the inspection of steam boilers, pressure vessels and piping and 
electrical installations, the test and approval for safe use of materials, equipment and other safety 
devices, and the approval of plans for such materials, equipment and.devices. The fees so 
collected shall be deposited in the national treasury to the credit of the occupational safety and 
health fund and shall be expended exclusively for the administration and enforcement of safety 
and other labor laa7s administered by the Department of Labor and Employment. 
(c) 
The Department of Labor and Employment shall be the principal agency in 
coordinat-iiig and monitoring the activities of all laws to promote occupational safety and health. 
The Secretary of L.abor and Employment shall issue rules and regulations necessary to 
iiiiplement this provision for purposes of this title. The term "Occupational Safety and Health" 
shall include aiiy matter that affects the safety and health of workers in all places of employment. 
In addition to the penalties provided for by existing laws, the Department of 
Labor and Employment may, by appropriate regulations, prescribe administrative fines for 
violaiioiis of occupational safety and health standards or regulations promulgated thereunder 
sviicli in no case shall be less than One Hundred Pesos (PIOO.OO) nor more than Ten Thousmd 
Pesos (iz! 0,000.00) a day, depending upon the gravity of the violation uncovered until the same 
has been corrected by the offender. The fines shall accrue to the State Investment Compensation 
Fund and shall be managed by the Employees Compensation Commission which shall be used to 
iniplement programs and promote research and training in occupational safety and health. (Art. 
165-a1 
(d) 
TITLE I1 
EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
CHAPTER I 
POLICY AND DEFINITIONS 
ARTICLE 
167. 
Policy. - The State shall promote and develop a tax-exempt 
employees' compensation program whereby employees and their dependents, in the evedt of 
work-connected disability or death, may promptly secure medical or related benefits and lump- 
sum income benefits. 
initiate policies and undertake programs on rehabilitation. ( 
Art.166-a) 
It shall 
ARTICLE 168. Definition of Terms - As used in this Title, unless the context 
indicates otherwise: 
(a) 
"Code" means the Labor Code of the Philippines instituted under Presidential 
Decree numbered four hundred forty-two, as amended. 
(b) 
this Title. 
(c) 
"Commission" means the Employees' Compensation Commission created under 
"SSS" means the Social Security System created under Republic Act numbered 
Eleven Hundred Sixty-One, as amended. 
(d) 
"GSIS" means the Government Service Insurance System created under 
Comiiionwealth Act Numbered One Hundred Eighty-six, as amended. 
(e) 
"System" means the SSS or GSIS, as the case may be. 
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( f )  
cniployee. 
"Employer" means any person, natural or juridical, employing the services o f  the 
(g) 
"Einployee" means any person compulsorily covered by the GSIS under 
Commonwealth Act Numbered One Hundred Eighty-six, as amended, including members o f  the 
Armed Forces of the Philippines, and any person employed as casual, emergency, temporary, 
substitute or contractual; or any person compulsorily covered by the SSS under Republic Act 
Numbered Eleven Hundred Sixty-One, as amended. 
(11) 
"Person" means any individual, partnership, firm, association, trust, corporation or 
lcgal representative thereof. 
(9 
(1) 
(2) 
"Dependent" (For SSS) - The dependents shall be the following: 
The legal spouse entitled by law to receive support from the member; 
The legitimate, legitimated or legally adopted, and illegitimate child who is 
unmwried, not gainfully employed and has not reached twenty-one (21) years of age, OK if over 
twenty-one (21) years o f  age, he is congenitally or while still a minor has been permanently 
incapacitated and incapable of self-support, physically or mentally; and 
(3) 
The parent who is receiving regular support from the member. 
(For GSIS) - The dependents shall be the following: 
Legitimate spouse dependent for support upon the member or pensioner; 
(a,) 
(1)) 
The legitimate, legitimated, legally adopted child, including the illegitimate child, 
who is unmarried, not gainfully employed, and has not reached twenty-one years o f  age, or if 
over twenty-one years o f  age, he is incapacitated and incapable of self-support due to a mental 
or physicial defect acquired prior to the age of twenty-one years; and 
(c) The parents dependent upon the member for support. 
(J) "Beneficiaries" (For the SSS). - The dependent spouse until he or she remarries, the 
dependent legitimate, legitimated or legally adopted, and illegitimate children, who shall be the 
primay beneficiaries of the member: Provided, that the dependent illegitimate children shall be 
entitled to fifty percent (50%) of the share of the Iegitimate, Iegitimated or legally adopted 
children; Provided Further, That in the absence of the dependent legitimate, legitimated or 
legally adopted children of the wember, hisher dependent illegitimate children shall be entitled 
to one hundred percent (100%) of the benefits. In their absence, the dependent parents who shall 
be the secondary beneficiaries of .the member. 
(For the GSH). - Primary beneficiaries as the legal dependent spouse until he/she 
reinwries aid the dependent children, and secondary beneficiaries as the dependent parents and 
subject to restrictions on dependent children, the legitimate dependants. 
(k) "Injury" means any harmful change in the hunan organism from any accident arising 
out of and in the course o f  employment. 
(1) "Sickness" means any illness definitely accepted as an occupational disease listed by 
the Commission, or any illness arising out of or aggravated by his employment. Any illness, the 
etiology or cause of which i.s still undetermined or unknown, shall be made compensable if 
acquired by the employee during his employment. 
For this purpose, the Commission is 
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empowered to determine and approve occupational diseases and work-related illnesses that may 
be considered compensable based on peculiar hazards of employment. 
(m) "Death" means loss of life resulting from injury or sickness. 
(n) 
"Disability" means loss or impairment of a physical or mental fimction resulting 
froin injury or sickness. 
(0) 
"Compensation" means all payments made under this Title for income benefits 
and medical or related benefits. 
(p) 
"Income benefit" means all payments made under this Title to the employee or his 
dependents. 
(q) 
"Medical benefit" means all payments made under this Title to the providers of 
medical care, rzhabilitation services and hospital care. 
(J) 
"Related benefit" means all payments made under this Title for appliances and 
supplies. 
(s) 
"Appliances" means crutches, artificial aids and other similar devices and their 
replacement or repair except when the need for such replacement or repair arises from the fault 
of the employee. 
(t) 
(u) 
"Supplies" means medicine and other medical, dental or surgical items. 
"Hospital" means any medical facility, government or private, authorized by law, 
an active mcinber of good standing of the Philippine Hospital Association and accredited by 1.he 
Commission. 
(v) 
"Pliysician" means any doctor of medicine duly licensed to practice in the 
Philippines, an active member in good standing of the Philippine Medical Association and 
accredited by the Commission. 
(w) 
"Wages" or "Salary" insofar as they refer to the computation of benefits; as 
defined in Republic Act No. 1161, as amended, for SSS and Presidential Decree No. 1146, as 
amended, €or GSIS, respectively, except that part in excess of Twelve Thousand Pesos 
(r-i2,000.00). 
(x) 
"Monthly salary credit" means the wage or salary base for contributions as 
provided in Republic Act numbered Eleven Hundred Sixty-One, as amended, or the wages or 
salary. 
(For SSS) Average Monthly Salary Credit. - The result obtained by dividing the sum 
of the last sixty (60) monthly salary credit immediately preceding the semester of contingency 
by sixty (60), or tlie result obtained by dividing the sum of all the monthly salary credit paid 
prior to the semester of contingency by the number of monthly contributiolls paid in the same 
period, whichever is greater, Provided, that if the injury or sickness caused the disability, it shall 
be deemed as permanent disability for the purpose of computing the average monthly salary 
credit. 
In the case of the GSXS, current daily compensation. 
(aa) 
"Quarter" means a period of three (3) consecutive months ending on the last day 
of March, June, September and December. 
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(bb) 
"Se,mester" means a period of two consecutive quarters ending in the quarter of 
death, permanent disability, injury 01' sickness. 
(cc) 
"Credited years of service". - 
For a member covered prior to January nineteen 
hundred eighty five (1985) minus the calendar year of coverage plus the numher of calendar 
years in which six (6) or more contributions have been paid from January nineteen hundred 
eighty five (1985) up to the calendar year containing the semester prior to the contingency. For a 
member covered in or after January nineteen hundred eighty five (1985), the number of calendar 
years in which six (6) or more contributions have been paid from the year of coverage up to the 
calendar year containing the semester prior to the contingency: Provided, That the Commission 
may provide for a different number of contributions in a calendar year for it to be considered as a 
credited year of service. 
(dd) 
(1) 
"Monthly Income Benefit" means the highest of the following amounts: 
The sum of the following: 
(i) 
(j.i) 
(iii) 
year of service in excess o f  ten (10) years; or 
Forty percent (40%) of the average monthly salary credit; or 
One thousand pesos (321,000). (Art.167-a) 
three hundred pesos (@300.00); plus 
twenty per cent (20%) o f  the average monthly salary credit; plus 
two per cent (2%) of the average monthly salary credit for each credited 
(2) 
(3) 
TITLE I1 
EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
CHAPTER I1 
COVERAGE AND LIABILITY 
AKrICLE 159. 
Compulsory coverage. - 
Coverage in the State Insurance F~iiid 
shall be compulsory upon all employers and their employees not over seventy (70) years of age: 
Provided, That an eniployee who is over sixty (60) years of age and paying contributions to 
qualify for the retirement or life insurance benefit administered by the System shall be subject to 
conipulsory coverage. (Art. 168-a) 
AIU'ICLE 170. 
Foreign employment. - 
The Commission shall ensure adequate 
coverage of Filipino employees employed abroad, subject to regulations as it may prescribe. 
ARTICLE 171. 
Effective date of coverage. - Compulsory coverage of the 
employer during the effectivity of this Title shall talte effect on the first day of his operation, and 
tlilt ofthe employee on the date of his employment. 
ARTICLE 172. 
Registration. - 
Each employer and his employees shall register 
with the System in accordance with its regulations. 
ARTICLE 173. 
Limitation of liability. -The 
State Insurance Fund shall be liable 
for compensation to the employee or his dependents, except when the disability or death was 
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occasioned by the employee’s intoxication, willful intention to injure or itill himself or another, 
notorious negligence, or otherwise provided under this Title. 
ARTICLE 174. - Extent of Liability. - The employee or his heirs shall have the right 
to avail themselves o f  the benefits under this Code and to sue the employer in the regular courts 
under the Civil Code for damages by reason of the employer’s negligence. The payment of 
compensation under this Title shall not bar the recovery of benefits as provided for in the 
Administrative Code of 1987, R.A. No. 8282, R.A. No. 8291, and other laws whose benefits are 
administered by the System or by other agencies of the government (Art. 173-a) 
AIXTICLE 175. 
Liability of third parties. - 
(a) When the disability or death is 
caused by circumstances creating a legal liability against a third party, the disabled employee or 
the dependents in case of his death shall be paid by the System under this Title. In case benefit is 
paid under this Title, the System shall be subrogated to the rights of the disabled employee or the 
depenclents in case of his death, in accordance with the general law. 
(b) 
Where the System recovers from such third party damages in excess of those paid 
or allowed under this Title, such excess shall be delivered to the disabled employee or other 
persons entitled thereto, after deducting the cost of proceedings and expenses of the System. 
ARTICLE 1.76. 
Deprivation of benefits. - 
Except as otherwise provided under 
this Title, 110 contract, regulation or device whatsoever shall operate to deprive the employee or 
his dependents of any part of the income benefits and medical or related services granted uider 
this Title. Existing medical services being provided by the employer shall be maintained and 
continued to be enjoyed by their employees. 
TITLE 11 
EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND 
CHAPTER I n  
ADMINISTRATION 
ARTICLE 177. Employees’ Compensation Commission. - 
(a) To initiate, rationalize, and coordinate the policies of the employees’ compensation 
program, the Employees’ Compensation Commission is hereby created to be composed of five 
ex-oflcio members, namely: the Secretary of Labor and Employment as Chairman, the GSIS 
President and General Manager, the SSS President, the Executive Director of the Occupational 
Safety and Health Center, and the Executive Director of the ECC Secretariat, and six (6) 
appointive members, two of whom shall represent the employees, two from the employers, and 
the other two from the general public, to be appointed by the President of the Philippines for a 
term of six years. The appointive member shall have at least five (5) years experience in 
worhien’s compensation, social security or public health programs. All vacancies shall be filled 
for the unexpired term only. 
(b) The Vice Chairman of the Commission shall be alternated each year between the 
GSIS President and General Manager and the SSS President. The presence of six (6) members 
shall constitute a quorum. Each member shall receive aper diem of two thousand five hundred 
pesos (@2,500.00) for cvery rnccting that is actually attended by him, exclusive of actual, 
ordinary and necessary travel and representation expenses. In his absence, any member may 
designate an official ofthe institution he serves on full-time basis as his represefltative to act in 
his behalf. 
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(c) The general conduct of the operations and management functions of the GSIS or SSS 
under this Title shall be vested in its respective chief executive officers, who shall be 
immediately responsible for carrying out the policies of the Commission. (Art. 176-a) 
ARTICLE 178. 
Powers and duties. - 
The Commission shall have the following 
powers and duties: 
(a) 
(b) 
To assess and fix a rate of contribution from all employers; 
To determine the rate of contribution payable by an employer whose records show 
a high frequency of work accidents or occupational diseases due to failure by the said employer 
to observe adequate safety measures; 
(c) 
To approve rules and regulations governing the processing of claims and the 
settlement of disputes arising therefrom as prescribed by the System; 
(d) 
To initiate policies and programs toward adequate occupational health and safety 
and accident prevention in the working environment, rehabilitation other than those provided for 
under ARTICLE 191 hereof, and other related programs and activities, and to appropriate funds 
therefor; 
(e) 
To make the necessary actuarial studies and calculations concerning the grant of 
constant help and income benefits for permanent disability or death, and the rationalization ofthe 
benefits for permanelit disability and death under the Title with benefits payable by the System 
for similar contingencies: Provided, that the Commission may upgrade benefits and add new 
ones, subject to approval of the President; and,Provided, further, That the actuarial stability of 
the State Insuance Fund shall be guaranteed: Provided, finally, that such increases in benefits 
shall not require any increases in contribution, except as provided for in paragraph (b) hereof; 
(9 
To appoint the personnel of its staff, subject to civil service law and rules, but 
exempt fKom WAPCO law and regulations; 
(g) 
To adopt annually a budget of expenditures of the Commission and its staff 
chargeable against the State Insurance Funds: Provided, that the SSS and GSIS shall advance on 
a quarterly basis the remittances of allotment of the loading fund for this Commissions 
operational expenses based on its annual budget as duly approved by the Department of the 
Budget and Management; 
(11) 
To have the power to administer oath and affirmation, and to issue subpoena and 
subpoena duces tecum in connection with my question or issue arising from appealed cases 
under this Titlc; 
(i) 
(j) 
To sue and be sued in court; 
To acquire property, real or personal, which may be necessary or expedient for 
the at~ainmem oftlie purposes of this Title; 
(k) 
To enter into agreements or contracts for such services and aid as may be needed 
for the proper, efficient and stable administration ofthe program; and 
(1) 
To pel-form such other acts as it may deem appropriate for the attainment of the 
pnrposes of the Coinmission and proper enforcement of the provisions of this Title. 
48 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
I6 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
3 0 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
4 1 
42 
43 
44 
4 5 
46 
47 
48 
49 
50 
51 
52 
53 
54 
ARTICLE 179. 
Management of funds. - 
All revenues collected by the System 
under this Title shall be deposited, invested, administered and disbursed in the same manner and 
under tlie same conditions, requirements and safeguards as provided by Republic Act numbered 
eleven lrundrcd sixty-one, as amended, and Commonwealth Act numbered one hundred eighty- 
six, as amended, with regard to such other funds as are thereunder being paid to or collected by 
the SSS and GSTS, respectively: Provided, That the Commission, SSS and GSIS may disburse 
each year not more than 12 per cent of the contributions and investment earnings collected for 
operational expenses, including occupational health and safety programs, incidental to the 
carrying out ofthis Title. 
ARTICLE 180. 
Investment of funds. - Provisions of existing laws to the 
contrary notwithstanding, all revenues as are not needed to meet current operational expenses 
under this Title shall be accumulated in a fund to be known as the State Insurance Fund, which 
shall be used exclusively for payment of the benefits under this Title, and no amount thereof 
shall be used for any other purpose. All amounts accruing to the State Insurance Fund, which is 
hereby established in tlie SSS and the GSIS, respectively, shall be deposjted with any authorized 
depository bank approved by the Commission, or invested with due and prudent regard for the 
liquidity needs of the System. 
ARTICLE 181. 
Settlement of claims. - The System shall have original aid 
exclusive jurisdiction to settk any dispute arising from this Title with respect to coverage, 
entitlement to benefits, collection and payment of contributions and penalties thereon, or any 
other matter related tliereto, subject to appeal to the Commission, which shall decide appealed 
cases within 20 working days from the submission of the evidence. 
ARTICLE 182. 
Review. - Decisions, orders or resolutions of the Commission 
may be reviewed on certiorari by the Supreme Court only on questions of law upon petition of 
aggrieved party within 10 days from notice thereof. 
ARTICLE 183. 
Enforcement of decisions. - (a) Any decision, order or 
resolution of the Com,mission shall become final and executory if no appeal is talcen therefrom 
within 10 days from notice thereof. All awards granted by the Commission in cases appealed 
Elom decisions of the System shall be effected within 15 days from receipt Of notice. 
(b) 
In all other cases, decisions, orders and resolutions of the Commission which have 
become final and executory shall be enforced and executed in the same manner as decisions of 
tlie Regional Trial Court, and the Commission shall have the power to issue to the city or 
provincial slieriff or to the sheriff whom it may appoint such writs of execution as may be 
necessary for the enforcement of such decisions, orders or resolutions, and any person who shall 
[ail or refLise Lo comply therewith shall, upon application by the Commission, be punished by the 
proper court for contempt. 
TITLE I1 
EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
CHAPTER IV 
CONTRIBUTIONS 
AliTICLE 184. 
Employer's contributions. - 
(a) Under such regulations as the 
System may prescribe, beginning as of the last day of the month when an employee's compulsory 
coverage tdces eKect and every month thereafter during his employment, his employer shall 
49 


1 
2 
credit. 
prepaae to remit to the System a contribution equivalent to one percent of his monthly salary 
J 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
2s 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
35 
39 
40 
4i 
42 
43 
44 
45 
4 6 
47 
48 
4 
9 
50 
51 
52 
53 
54 
(b) 
The rxte of contribution shall be reviewed periodically and, subject to the 
limitations herein provided, may be revised as the experience in risk, cost of administration, and 
actnal or anticipated as well as unexpected losses, may require. 
(c) 
Contributions under this Title shall be paid in their entirety by the employer and 
any contract or devise for the deduction of any portion thereof horn the wages or salaries of the 
employees shall be null and void. 
(d) 
When a covered employee dies, becomes disabled or is separated from 
employment, his obligation to pay the monthly contribution arising from the employment shall 
cease at the end of the month of contingency and during such months that he is not receiving 
1vagL.s or salary. 
ARTICLE 185. 
Government guarantee. - The Republic of the Philippines 
guarantees the benefits prescribed under this Title, and accepts general responsibility for the 
solveiicy of the State Insurance Fund. In case of any deficiency, the same shall be covered by 
supplemental appropriations from the national government. 
TITLE I1 
EMPLOYEES' COMPENSATION AND STATE XNSURANCE FUND 
CHAPTER V 
MEDICAL BENEFITS 
AIYrICLE 186. 
Medical services. - Immediately after an employee contracts 
sicluiess or sustains an injuiy, he shall be provided by the System during the subsequent period 
of his disability with such medical services and appliances as the nature of his siclcness or injury 
and progress of his recovery may require, subject to the expense limitation prescribed by the 
Commission. 
ARTICLE 187. 
Liability. - 
The System shall have the authority to choose or 
order a change of physician, hospital or rehabilitation facility for the employee, and shall not be 
liable for compensation for any aggravation of the employee's injury or sickness resulting from 
unauthorized changes by the employee of medical services, appliances,, supplies, hospitals, 
rehabilitation facilities or physicians. 
AXWXCLE 188. 
Attending physician. - 
Any physician attending an injured or 
sick employee shall comply with all the regulations of the System and submit reports in 
prescribed forms at such time as may be required concerning his condition or treatment. All 
medical inlormation relevant to the particular injury or siclcness shall on demand be made 
available to the employee or the System. 
No information developed in connection with treatment or examination for which 
coinpensation sought shall be considered as privileged communication. 
AXtTICLE 189. 
Refusal of examination or treatment. - If the employee 
unreasonably refuses to submit to medical examination or treatment the System shall stop the 
payment of further compensation during such time as such refusal continues. What coiistitutes an 
unreasonable refnsal shall be determined by the System which, may on its own initiative 
50 


1 
3 
4 
5 
6 
7 
8 
9 
10 
I1 
12 
13 
14 
15 
16 
17 
18 
19 
2.0 
21 
22 
23 
24 
2.5 
26 
27 
25 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
4 1 
42 
43 
44. 
4.5 
16 
4 7 
48 
49 
50 
51 
52 
53 
54 
55 
7 I 
detcrmi,ne the necessity, character, and sufficiency of any medical services furnished or to be 
furnished. 
ARTXCLE 190. 
Fees and other charges. - 
All fees and other charges for hospital 
services, medical care and appliances, including professional fees, shall not be higher than those 
prevailing in wards of hospitals for similar services to injured or sick persons in general, and 
shall be subject to the regulations of the Commission. Professional fees shall only be appreciably 
higher than those prescribed under Republic Act number sixty-one hundred eleven, as amended, 
otherwise known as the Philippine Medical Care Act of 1969. 
ARTICLE 191. 
Rehabilitation services. - (a) The System shall establish a 
continuing program for the rehabilitation of injured and handicapped employees, who shall be 
entitled to rehabilitation services, which shall consist of medical, surgical or hospital treatment, 
including appliances if he has been handicapped by the injury, to help him become physically 
indepeiident. 
(h) 
The System shall establish centers equipped and staffed to provide a balanced 
program of remedial treatment, vocational assessment and preparation designed to meet thc 
individual needs of each handicapped employee to restore him to suitable employment, including 
assistance as may be within its resources to help each rehabilitee to develop his mental, 
vocatioiial or social potential. (Art.190-a) 
TITLE I1 
EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
CHAPTER VI 
DISABILITY BENEFITS 
ATZTICI,E 192. - Temporary total disability. - (a) Under such regulations as the 
Commission may approve, any employee under this Title who sustains an injury or contracts 
sickness resulting in temporary total disability shall, for each day of such disability or fraction 
.thereof, be paid by the System an income benefit equivalent to ninety (90) percent of his average 
daily salary credit, subject to the following conditions: the daily income benefit shall not be less 
than one huiidred (QlOO.00) Pesos nor more than three hundred (9300.00) Pesos, nor paid for a 
continuous period longer than two hundred forty days, except as otherwise provided for in the 
Rules, and the System shall be notified of the injury or sickness. 
(b) the payment of such income benefit shall be in accordance with the regulations of the 
Commissioii. (Art.191-a) 
ARTICLE 193. 
Pernianent Total Disability. - (a) Under such rules as the 
Comniission may approve, any employee under this Title who contracts sickness or sustains an 
injury resulting in his permanent total disability shall be paid by the System a lump sum amount 
eqnivalent to ihe monthly income benefit times sixty (60) but in no case less than sixty thousand 
pesos (F60,000.00) nor more than two hundred forty thousand pesos (@240,000.00), over and 
above whatever lump sum or pension benefits he may have received under other applicable 
social security programs 
(b) The following disabilities shall be deemed total and permanent: 
(1) Temporary total disability lasting continuously for more than two hundred forty 
(240) days, except as otherwise provided for in the Rules; 
51 


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2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
I 4 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
2s 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
4 5 
46 
47 
4 8 
49 
50 
51 
52 
53 
54 
55 
(2) Complete loss of sight of both eyes; 
(3) Loss of two (2) limbs at or above the ankle or wrist; 
(4) Permanent complete paralysis of two (2) limbs; 
( 5 )  Bmin injury resulting in incurable imbecility or insanity; and 
(6) Such cases as determined by the Medical Director of the System and approved by the 
Commission. (Arl.192-a) 
IiRTXCLE 194. Permanent Partial Disability. - (a) Under such regulations as the 
System may approve, any employee under this Title who contracts siclmess or sustains an iiijuiy 
rcsulting in permanent partial disability shall be paid by the System a lump-sum amoulit 
equivalent to the percentage of the permanent loss times the lump-sum amount for total 
permanent disability. 
(b) The benefit shall be paid in accordance with the following schedule - 
Complete and Permanent 
Loss of the use o f  
One thumb 
One index finger 
One middle finger 
One ring finger 
One little finger 
One big toe 
Any toe 
One arm 
One hand 
One foot 
One leg 
One ear 
Both ears 
Hearing of one ear 
Hearing o f  both ears 
Sight of om eye 
Benefit 
PERCENTAGE 
17% 
13 
10 
8 
5 
10 
5 
83 
65 
52 
77 
17 
34 
17 
34 
42 
(c) A loss of a wrist shall be considered as loss of the hand, and a loss of an elbow shall 
be considered as a loss of the arm. A loss of an ankle shall be considered as a loss of the foot, 
and a loss o f  a luiee shall be considered as a loss of the leg. A loss of more than one (1) joint 
shall be considered as a loss of the whole finger or toes, and a loss of only the first joint shall be 
considered as loss of one-half (1/2) of the whole finger or toe: Provided, that such a loss shall be 
either the fmlctional loss of the use or physical loss of the member. 
(d) In cases of injuries or illnesses resulting in a permanent partial disability not listed in 
the preceding schedule, the benefit shall be an income benefit equivalent to the percentage of the 
perinanent loss of the capacity to work times the lump sum amount for permanent total disability. 
(Art. 193-a) 
TITLE TI 
ER’iPEOYEES‘ COMPENSATION AND STATE INSURANCE FUND 
52 


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3 
4 
5 
6 
7 
8 
9 
10 
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12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
2,2 
23 
24 
25 
26 
27 
28 
29 
30 
31 
CHAPTER VII 
DEATH BENEFITS 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
4 5 
46 
47 
48 
4 9 
50 
51 
52 
53 
54 
AIITTCLE 195. Death - (a) Under such regulation as the Coinmission may approve, 
The System shall pay to the primary beneficiaries upon the death of the covered employee under 
lhis Title the lump sum benefit for permanent total disability as specified in Art. 192 Provided, 
however, that if he has no primary beneficiary, the System shall pay to his secondary 
beneficiaries jiriy (50) percent of the lunlp sum benefit for permanent total disability as specified 
iiiArt. 193. 
(b) 'Uie Lump-Sum benefit provided herein shall be the new amount of the income 
benefit for ihe surviving beneficiaries upon the approval of this Act. 
(c) Funeral Benefit. - A funeral benefit in an amount as the System may approve, but not 
less than twenty thousand (fr20,OOO) pesos , shall be paid upon the death of a covered employee 
or a permanently totally disabled pensioner. (Art. 194-a) 
TITLE 11 
EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
CHAPTER VIIl 
PROVISIONS COMMON TO INCOME BENEFITS 
J\RTICLE 196. 
Relationship and dependency. - 
All questions of relationship 
md dependency shall be determined as ofthe lime of death. 
ARTICLE 1Y7. 
Delinquent contributions. - 
(a) An employer who is delinquent in 
his contributions shall be liable to the System for the benefits which may have been paid by the 
System to his employees or their dependents and any benefit and expenses to which such 
eii?ployer is liable shall constitute a lien on all his property, real or personal, which is hereby 
declared to be preferred to any credit except taxes. The payment by the employer of the lump 
sum equivalent of such liability shall absolve him from the payment of the delinquent 
contribution and penalty thereon with respect to the employee concerned. 
(b) 
Failure or refusal of the employer to pay or remit the contributions herein 
prescribed sliali not prejudice the right of the employee or his dependents to the benefits under 
this Title. If the sickness, injury, disability or death occurs before the System receives any report 
of the name of his employee, the employer shall be liable to the System for the lump sum 
eq~iivalent of the benefits to which such employee or his dependents may be entitled. 
.kRTICLE 198. 
Second injuries. - 
If any employee under permanent partial 
disability suffers another injury which results in a compensable disability greater than the 
previous injury, the State Insurance Fund shall be liable for the income benefit of the new 
disability: Provided, That if the new disability is related to the previous disability, the System 
shall be liable only for the difference in income benefits. 
I~RTTCLE 199. 
Assignment of beneiits. -No 
claim for compensation under this 
Title is Lraiis€erable, or liable to tax, attachment, garnishment, levy or seizure by or under any 
53 


1 
2 
3 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
14 
1s 
16 
1 7 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
2s 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
41 
42 
43 
44 
45 
46 
4 1  
48 
4 9 
SO 
51 
5% 
53 
54 
legal process whapoever, either before or after receipt by the person or persons entitled thereto, 
except io pay any debt ofthe employee to the System. 
ARTICLE 200. 
Earned benefits. -Income benefits shall, with respect to any period 
of disability, be payable in accordance with this Title to an employee who is entitled to receive 
wages, salaries or allowances for holidays, vacation or sick leaves, and any award or benefit 
undcr a collective bargaining or other agreement. 
ARTICLE 201. 
Safety devices. - 
In case the employee's injury or death was due to 
ihe failure of the employer to comply with any law, or to install and maintain safety devices, or 
tale other precautions for the prevention of injury, said employer shall pay to the State Insurance 
]:~ind a penalty of 25 per cent of the lump sum equivalent of the income benefit payable by the 
System to the employee. All employers, especially those who should have been paying a rate of 
contribution higher than that required of them under this Title, are enjoined to undertake and 
strengthen measures for the occupational health and safety oftheir employees. 
AlZTICLE 202. 
Prescriptive Period. - No claim shall be given due course unless 
said claim is filed with the System within ten (10) years from the time the cause of action 
accrued. (Art. 2014) 
ARTICLE 203, 
Erroneous payment. - 
(a) If the System in good faith. pays income 
benefit to a dependent who i s  inferior in right to another dependent or with whom another 
dependent is entitled to share, such paynients shall discharge the System from liability, unless 
and until such other dependent notifies the System of his claim prior to the payments. 
(b) 
In case of doubt as to the respective rights of rival ciaimants, the System is hereby 
cinpowered to determine as to whom payment should he made in accordance with such 
regulations as tlie Comniission may approve. If the money is payable to a minor or incompetent, 
payment shall be made by the System to such person or persons as it may consider to be best 
qualified to take care and dispose of the minor's or incompetent's property for his benefit. 
ARTICLE 204. 
Prohibition. - 
No agent, attorney or other person pursuing or in 
charge of the preparation or filing of any claim for benefit under this Title shall demand or 
charge ror his services any fee, and any stipulation to the contrary shall be null and void. The 
retention or deduction of any amount from any benefit granted under this Title for the payment 
of fees of such services is prohibited. Violation of any provision of this Article shall be punished 
by a fine of not less than five hundred pesos nor more than five thousand pesos, or imprisonment 
for not less than six months nor more than one year, or both, at the discretion of the court. 
ARTICLE 205. 
Exemption from levy, tax, etc. - All laws to the contrary 
notwilhstmding, the State Insurance Fund and all its assets shall he exempt from any tax, Tee, 
charge, levy or customs or import duty, and no law hereafter enacted shall apply to the State 
Insurance Fiund unless it is provided therein that the same i s  applicable by expressly stating its 
name. 
TITLE II 
EMPLOYEES' COMPENSATION AND STATE INSURANCE FUND 
CHAPTER XX 
RECORDS, REPORTS AND PENAL PROVISIONS 
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9 
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12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
25 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
39 
40 
4 1 
12 
43 
44. 
4.5 
46 
47 
48 
49 
50 
51 
52 
53 
54 
55 
-' 
J 
AItTXCLE 206. 
Records of death or disability. - 
(a) All employers shall keep a 
logbook to record chronologically the sickness, injury or death of their employees, setting forth 
therein [heir names, dates and places of the contingency, nature of the contingency and absences. 
Entries in the logbook shall be made within five days hom notice or knowledge of the 
occurrence of the contingency. Within five days after the entry in the logbook, the employer 
shall report to the System only those contingencies it deems to be work connected. 
(b) 
All entries in the employer's logbook shall be made by the employer or any of his 
authorized official after verification of the contingencies or the employee's absences for a period 
of a day or more. Upon request by the System, the employer shall furnish the necessary 
certificate regarding idormation about any contingency appearing in the logbook, citing the 
entry number, page nnmber and date. Such logbook shall be made available for inspection to the 
duly authorized representative of the System. 
(c) 
Should any employer fail to record in the logbook an actual sickness, injury or 
death of any of his employees within the period prescribed herein, give false iiifoimation or 
.withhold material information already in his possession, he shall be held liable for 50 per cent of 
the lump sum equivalent of the income benefit to which the employee may be found to be 
entitled, the payment of which shall accrue to the State Insurance Fund. 
(d) 
In case of payment o f  benefits for any claim which is later determined to be 
fmdulent and the employer is found to be a party to the fraud, such employer shall reimburse 
the System the full amount of the compensation paid. 
~ p ,  
\I 
T i r  ;GLE 207. 
Notice of sickness, injury or death. -Notice 
of sickness, injnry 
or death shall be given to the employer by the employee or by his dependents or anybody on his 
behalf within five days rrom the occurrence of the contingency. No notice to the employer shall 
be recpiieil irthe contingency is known to the employer or his agents or representatives. 
ARTICLE 208. 
Penal provisions. - 
(a) The penal provisions of Republic Act 
nunibered eleven hundred sixty-one, as amended, and Commonwealth Act numbered one 
hundred eighty-six, as amended, with regard to the funds as are thereunder being paid to, 
collected or disbursed by the System, shall be applicable to the collection, administration and 
disbursement of the funds .uuder this Title. The penal provisions on coverage shall also be 
applicable. 
(b) 
Any person, who for the purpose of securing entitlement to any benefit or 
payment under this Title or the issuance of any certificate or document for any purpose 
couiiecled with this Title, whether for him or for some other person, commits fraud, collusion, 
hlsiiication, misrepresentation of facts or any other kind of anomaly shall be punished with a 
fine of not less tliaii five hundred pesos nor more than five hundred thousand pesos and an 
jmprisor1111eiit ror not less Ihan six months nor more than one year, at the discretion o f  the court. 
(c,) 
If the act penalized by this Article is committed by any person who has been or is 
employed by the Commission or System, or a recidivist, the imprisonment shall not be less than 
one year; if committed by a lawyer, physician or other professional, he shall in addition to the 
penally prescribed herein be disqualified from tbe practice of his profession; and if committed by 
any official, employee or personnel of the Commission, System or any government agency, he 
shall in addition to the penalty prescribed herein be dismissed with prejudice to reemployment in 
the govcniment service. 
ARTXCLE. 209. Applicability. - Settlement of employees' compensation claims - All 
employees' claims for medical and related benefits and for income benefits shall be processed, 
determined and settled in accordance with such laws, rules and regulations existing at the time 
their cause of action accrued. (Art.208-a) 
55 


1 
2 
4 
S 
6 
7 
8 
9 
10 
11 
12 
13 
14 
15 
16 
17 
18 
I? 
20 
21 
22 
23 
24 
25 
26 
27 
211 
29 
30 
31 
3 2. 
33 
34 
35 
36 
31 
38 
39 
40 
41 
42 
43 
44 
45 
46 
47 
48 
49 
50 
51 
52 
53 
5 4. 
55 
0 
3 
ARTICLE 210. hplerncnting rules and regulations. - The rules and regulations to 
implenient ihe provisions of this Title shall be adopted and promulgated by the Commission not 
later than three (3) months after the approval of this Act. 
TITLE 111 
PI-IILBEALTH 
ARTICLE 211. 
Medical Care. - The Philippine Medical Care Plan shall be 
irnpleincnied as provided under Republic Act numbered sixty-one hundred eleven, as amended. 
TITLE IV 
ADULT EDUCATION 
ARTICLE 212. 
Adult education. - 
Every employer shall render assistance in the 
establislinient and operation of adult education programs for their workers and employees as 
prescribed by regulations approved by the Technical Education and Skills Development 
Authority ('TESDA). (Art.210-a) 
BOOK FIVE 
LABOR RELATIONS 
TITLE I 
POLICY AND DEFINITIONS 
CHAPTER I 
POLICY 
ARTICLE 213. Declaration of policy: a. The State shall ensure the fullest possible 
exercise of the rights o f  all worlters to self-organization, collective bargaining and negotiations, 
aid peacehl concerted activities, including the right to strike in accordance with law. 
b. All workers shall participate in policy and decision-making processes affecting their 
rights and benefits as may be provided by law. 
c. 'rlie State shall promote the principle of shared responsibility between workers and 
employers and the preferential use of voluntary modes in settling disputes, including 
cnnciliation, and shall enforce their mutual compliance therewith to foster industrial peace. 
No labor dispute arising from employer-employee relationship shall be under the 
jurisdiction of ihe National Labor Relations Commission until all the efforts to resolve such 
labor dispute at the work place by the grievance machinery or by conciliation in accordance with 
the rules and rcgulations promulgated by the Secretary of Labor and Employment have failed. 
d. To eiicourage a truly democratic method of regulating the relations between the 
employers and employees by ineans of agreements freely entered into through collective 
bargaining, no C O L U ~  or administrative agency or official shall have the power to set or fix wages, 
56 


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3 
4. 
5 
6 
7 
8 
9 
l o  
11 
12 
1; 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
31 
38 
39 
40 
41 
42 
43 
4.4. 
45 
116 
47 
48 
49 
50 
51 
52 
53 
54 
rates of pay, hours of work or other terms and conditions of employment, except as otherwise 
provided under this Code. (Art.21 I-a) 
ARTXCLE 214. Tripartism and tripartite conferences -- (a) Tripartism in labor 
relations is hereby declared a State policy. Towards this end, workers and employers shall, as far 
as practicable, be represented in decision and policy-making bodies of the government. 
(b) The Secretary of Labor and Employment or his duly authorized representatives may 
from time to time call a national, regional, or industrial tripartite conference of representatives of 
government, workers and employers for the consideration and adoption o f  voluntary codes of 
principles designed to promote industrial peace based on social justice or to align labor 
~noveiuent relations with established priorities in economic and social development. In calling 
such conference, the Secretary of Labor and Employment may consult with accredited 
representatives of workers and employers. (Art.275-a) 
TITLE I 
POLICY AND DEFINITIONS 
CHAPTER 11 
DEFINITIONS 
ARTICLE 215. 
Definitions. - 
(a) "Department" means the Department of Labor and Employment. "Secretary" refers 
!he Head ofthe Department. 
(h) "Commission" means the National Labor Relations Commission or any of its 
divisions. 
(c) "Bureau" means the Bureau of Labor Relations and/or the Labor Relations Divisions 
in the regioid offices of the Department. 
(d) "Board" means the National Conciliation and Mediation Board established under 
Executive Order No. 126. 
(e) "Council" means the Tripartite Volnntary Arbitration Advisory Council established 
uuder Executive Order No. 126, as amended. 
(f) "Code" means the New Labor Code of the Philippines. 
(g) 
"Employer" includes any person acting in the interest of an employer, directly or 
indirectly. The term shall not include my labor organization or any-of its officers or agents 
except when acting as employer. 
(h) "Employee" includes any person in the employ of an employer. The term shall not be 
limited to the employees of a particular employer, unless this Code so explicitly states. It shall 
include any individual whose work has ceased as a result of or in connection with any current 
labor dispute or because of any unfair labor practice if he has not obtained any other substantially 
equivalent and regular employment. 


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(i) “Labor Organization” means any union or association of employees which exists in 
whole or in part for the purpose of collective bargaining or for dealing with employers 
concerning terms and conditions of employment. 
(j) “Legitimate Labor Organization” means any labor organization defined under letter (i) 
hereof which is duly registered with the Department. The term includes a local/chapter directly 
chartered by a federation or national union which has been duly reported to the Department. 
(k) “Workers Association” means any association of workers organized for the mutual 
aid and protection of its members or for any legitimate purpose other than collective bargaining. 
(I) “Independent Union” means any labor organization operating at the enterprise level 
whose legal personality is derived through an independent action for registration prescribed 
under Article 234 of the Code. An independent union may be affiliated with a federation, 
national or industry union, in which case it may also be referred to as an affiliate. 
(m) “Local UniodChapter” means any labor organization operating at the enterprise 
level whose legal personality is derived through the issuance of a charter by a duly registered 
federation or national union. 
(n) “National Unioifiederation” means any labor organization with locals/ chapters or 
affiliates each of which is a duly recognized or certified collective bargaining agent. 
(0) “Legitimate Workers’ Association” means any workers association defined under 
letter (K) hereof which is duly registered with the Department. 
(11) “Industry Union” means any group of legitimate labor organizations operating within 
an identified industry organized for collective bargaining or for dealing with employers 
concerning terms and conditions of employment within an industry, or for participating in the 
formulation of social and employment policies, standards and programs in such industry, which 
i s  duly registered with the Department. 
((1) 
“Trade Union Center” means any group of registered national unions or federations 
organized for the mutual aid and protection of its members, for assisting such members in 
collective bargaining, or for participating in the formulation of social and employment policies, 
standards and programs, which is duly registered with the Department. 
(r) 
“Company union” means any labor organization whose formation, function or 
adminiskation has been assisted by any act defined as unfair labor practice by this Code. 
(s) “Rargaining Unit” refers to a group o f  employees sharing mutual interest within a 
given employer unit, comprised of all or less than all of the entire body of employees in the 
employer unit or axy specific occupational or geographical grouping within such employer unit. 
(1) “Exclusive Bargaining Representative” means any legitimate labor organization duly 
recognized or certified as the sole and exclusive bargaining agent of all the employees in a 
bargaining unit. 
(u)”lJnfair labor practice” means any unfair labor practice as expressly defined by this 
Code, 
(v) 
“Labor or industrial dispute’’ includes any controversy or matter concerning terms 
or conditions of employment or the association or representation of persons  in^ negotiating, 
58 


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0 
3 
fixing, maintaining, changing or arranging the terns and conditions of employment, regardless 
of whether tlie disputants stand in the proximate relation of employer and employee. 
(w) "i\/laiiagerial employee" is one who is vested with powers or prerogatives to lay 
down arid execute management policies and/or to hire, transfer, suspend, lay-off, recall, 
dischqe, assign or discipline employees. Supervisory employees are those who, in the interest 
of the employer, effectively recommend such managerial actions if the exercise of such authority 
is not merely routinary or clerical in nature hut requires the use of independent judgment. All 
cinployees not falling within any of the definitions of managerial or supervisory employee are 
coilsidered rank-m+file employees for purposes of this Book. 
(x) "Volun&y Arbitrator" means any person accredited by the Board as such, or a ~ y  
person ciaiiied or designated in the Collective Bargaining Agreement by the parties to act as their 
Voluntary Arbitrator, or one chosen, With or without the assistance of the Board, pursuant to a 
selection procedure agreed upon in the collective bargaining agreement. 
(y) "Strike" means my temporary stoppage of work by the concerted action of employees 
as a res& of an industrial or labor dispute. 
(z) "Lockout" means the temporary refusal of an employer to furnish work as a result of 
an industrial or labor dispute. 
(aa) "Intra union dispute" refers to any conflict between and among union members arid 
isicludes all disputes or grievances arising froin any violation of or disagreement over any 
provision of the constitution and by-laws of a union, including cases arising from chartering or 
affiliation of labor organizations or from any violation of the rights and conditions of union 
mesnbership provided for in this Code. 
(bb) "Inter-Union Dispute" refers to any conflict between and among legitimate labor 
organizations iiivolving questions of representation for purposes of collective bargaining. It also 
includes all other conflicts which legitimate labor organizations may have against each other 
based on any violations of their rights as labor organizations. 
(cc) "Strike breaker" means any person who obshucts, impedes, or interferes with by 
force; violence, coercion, threats or intimidation any peaceful picketing by employees during any 
labor controversy alfecting wages, hours or conditions of work or in the exercise of the right o f  
self-organization or collective bargaining. 
(dd) "Strike area" means the establishment, warehouses, depots, plants or offices, 
imludiilg the sites or premises used as run-away shops, of the employer struck against, as well as 
'die iminediale vicinity actually used by picketing strikers in moving to and fro before all points 
of entrauce to and exit from said establishment. (Art.212-a) 
TITLE I1 
NATIONAL LABOR RELATfOWS COMMISSION 
CIlAPTER I 
CREATION AND COMPOSITION 
ARTICLX 216. 
National Labor Relations Commission. - There shall be a 
National Labor Relations Commission which shall be attached to the Department of Labor and 
Employment for program and policy coordination only, composed of a Chairman and twenty 
three (23) members. 
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Eight (8) members each shall be chosen equally from among the nominees of the 
workers and employers organizations. The Chairman and the seven (7) remaining members shall 
come fioni the public sector, with the latter to be chosen preferably from among the incumbent 
Labor Arbiters as recorninended by the Secretary of Labor and Employment. 
Upon assumption into office, the members nominated by the workers and employers 
organizations shall divest themselves of any affiliation with or interest in the federation or 
association to which they belong. 
The Commission may sit en bane or in eight (8) divisions, each composed of three (3) 
members. The Commission shall sit en banc only for purposes of promulgating d e s  and 
regulations governing the hearing and disposition of cases before any of its divisions and 
regional branches and folinulating policies affecting its administration and operations. The 
Coiinujssion shall exercise its adjudicatory and all other powers, functions, and duties through its 
divisions. Of the eight (8) divisions, the first, second, third, fourth, fifth and sixth divisions shall 
handle cases coining fioni the National Capital Region and other parts of Luzon and the seventh 
and eighth divisions, cases from the Visayas and Mindanao, respectively: Provided, That the 
Commission silting en banc may, on temporary and emergency basis, allow cases within the 
jurisdiction of any division to be heard and decided by any other division whose docket allows 
the additional worlcload and such transkr will not expose litigants to unnecessary additional 
expense. The divisions of the Commission shall have exclusive appellate jurisdiction over cases 
within their respective territorial jurisdiction. 
The concurrence of two (2) Commissioners of a division shall be necessary for the 
pronouncement of a j-itdgnient or resolution. Whenever the required membership in a division is 
not complete and the concurrence of two (2) Commissioners to arrive at a judgment or resolution 
cannot be obtained, the Chairman shall designate such number of additional Commissioners 
from the other divisions as may be necessary. 
The conclusions of a division on any case submitted to it for decision shall be reached in 
consultation, before the case is assigned to a member for the writing of the opinion. It shall be 
mandatory for the division to meet for purposes of the consultation ordained therein. A 
certification to this effect signed by the Presiding commissioner of the division shall be issued, 
and a copy thereof attached to the record of the case and served upon the parties. 
The Chairman shall be the Presiding Commissioner of the first division, and the seven (7) 
other members From the public sector shall be the Presiding Commissioners of the second, third, 
fourth, kfth, sixth, seventh and eighth divisions, respectively. In case of the effective absence or 
incapacity of the Chairiiian, the Presiding Commissioner of the second division shall be the 
Acting Chairman. 
The Chairman, aided by the Executive Clerk of the Commission, shall have 
admiiiisirative supervision over the Commission and its regional branches and all its personnel, 
including the Labor Arbiters. 
The Commission, when sitting en bane, shall be assisted by the same Executive Clerk, 
and, when acting thru its divisions, by said Executive Clerk for its first division and seven (7) 
other Deputy Executive Clerks for the second, third, fourth, fifth, sixth, seventh and eighth 
divisions, respectively, in the per€ormance of such similar or equivalent functions and duties as 
are discharged by the Clerk of Court and Deputy Clerks of Court of the Corn of Appeals. 
The Commission and its eight (8) divisions shall be assisted by the Commission 
Attorneys in its appellate and adjudicatory functions whose term shall be co-terminus with the 
Coinmissioners with whom they are assigned. The Commission Attorneys shall be members of 
the Philippine Bar with at least one (1) year experience or exposure in the field of labor- 
60 


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1 
3 
30 
management relations. They shall receive annual salaries and shall be entitled to the same 
allowaiices and beneljts as those falling under salary grade of twenty six (SG 26). There shall be 
as inany Commission Attorneys as may be necessary for the effective and efficient operation of 
the Commission but,iii no case less than two (2) assigned to the Office of the Chairman and each 
Commissioner. (Art.2 13-a) 
ARTICLE 21 7. 
Headquarters, branches and provincial extension units. - 
The 
Commission and its first, second;third, fourth, fifth and sixth divisions shall have their main 
officcs iii Met~opolitmi Manila, and the seventh and eighth divisions in the cities of Cebu aud 
Cagayaii de Oro, respectively. The Commission shall establish as many regional branches as 
-there arc regional offices of the Department of Labor and Employment, sub-regional bramhes or 
provincial extension wits. There shall be as many labor Arbiters as may be necessary for the 
el'fcctive and efficient operation of the Commission. (Art.214-a) 
AKfiGLE 218. 
Appointment and qualifications. - The Chairman and other 
Commissionel% shall be members of the Philippine Bar and must have been engaged in the 
practice of law in the Pliilippines for at least fifteen (15) years, with at least five (5) years 
experience or exposure in the field of labor-management relations, and shall preferably be 
residents of ihe region where they are to hold office. The Labor Arbiters shall likewise be 
members of the Philippine Bar and must have been engaged in the practice of law in the 
Philippines for at least ten (10) years, with at least three (3) years experience or exposure in the 
field of labor-maiiagement relations, Provided, however, that incumbent Executive Labor 
Arbiters and Labor Arbiters who have been engaged in the practice of law for at least five (5) 
yeai-s may be considered as already qualified for purposes of reappointment as such under this 
Act. 
The Chairman, the other Commissioners, and Labor Arbiters shall hold office during 
good beliavior until they reach the age of sixty-five (65) years, unless sooner removed for cause 
as provided by law or become incapacitated to discharge the duties of their office. 
The Chairman, the Division Presiding Commissioners and other Commissioners shall all 
be appointed by the President. Appointment to any vacancy shall come from the nominees ofthe 
seclor which nominated the predecessor. The Labor Arbiters shall also he appointed by the 
President, upon recommendation of the Secretary of Labor and Employment, to specific 
Arbitration Branches preferably in the regions where they are residing and shall be subject to the 
Civil Service Law, rules and regulations. Provided, however, that the incumbent Executive 
Labor Arbiters and Labor Arbiters who are presently holding office in the regions where they 
are resideiits shall be given preference to be appointed thereat. 
The Secretary of Labor and Employment shall, in consultation with the Chairman o f  the 
Commission, appoint the staff and employees of the Commission, and its regional branches as 
the needs oftlie service may require, subject to the Civil Service Law, rules and regulations, and 
upgrade their current salaries, benefits and other emoluments in accordance with law. (Art.2 15-a) 
ARTlCLE 219. 
Ranks, salaries, benefits and other emoluments. - The 
Chairnian and members of the Commission shall have the same rank , receive an annual salary 
equivalent to, and be entitled to the same allowances, retirement and other benefits and privileges 
as those of the Presiding Justice and Associate Justices of the Court of Appeals, respectively. 
Thc Labor Arbiters shall have the same rank, receive an annual salary equivalent to and shall be 
entitled to the same allowances, retirement and other benefits and privileges as that of a Judge 
of the Regional Trial Court In no case, however, shall the provision of this Article result in the 
diminution of existing salaries, allowances and benefits of the aforementioned officials. 
(Art.216-a) 
TITLE II 
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NATIONAL LABOR RELATIONS COMMXSSION 
CHAPTER I1 
POWERS AND DUTIES 
ARTICLE 220. 
Jurisdiction of Labor Arbiters and the Commission. - (a) 
Except as otherwise provided under this Code, the Labor Arbiters shall have original and 
exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of 
the case by the parties for decision without extension, even in the absence of stenographic notes, 
the following cases involving all workers, whether agricultwral or non-agricultural: 
(1) 
Unfair labor practice cases; 
(2) 
Termination disputes except those in organized establishments which shall be 
subjcct to the grievance machinery and voluntary arbitration; 
(3) 
If accompanied with a claim for reinstatement, those cases that workers may file 
involving wages, rate of pay, hours of work and other terms and conditions of employment; 
(4) 
Claims for actual, moral, exemplary and other forms of damages arising from the 
employer-employee relations; 
(5) 
Cases arising from any violation of Article 272 of this Code, including questions 
involving flie legality of strikes and lockouts; 
(6) Jnter-uuion disputes; and 
(7) 
Except claims for Employees Compensation, Social Security, Medicare and 
maternity benefits, all other claims arising from employer-employee relations, including those of 
persons in domestic or household service, involving an amount exceeding fifty thousand pesos 
(J250,000.00), whether or not accompanied with a claim for reinstatement. 
(1,) 
by Labor Arbiters. 
(c) 
The Commission shall have exclusive appellate jurisdiction over ail cases decided 
Cases arising from the interpretation or implementation of collective bargaining 
agreements and those arising from the interpretation or enforcement of company personnel 
policies shall be disposed of by the Labor Arbiter by referring the same to the grievance 
machinery and voluiitary arbitration as may be provided in said agreements. (Art.217-a) 
nwrcm 221. 
Powers of the Commission. - 
The Commission shall have the 
power and authority: 
(a) 
To promulgate rules and regulations governing the hearing and disposition of 
cases before it and its regioual branches, as well as those pertaining to its internal functions and 
such rules and regulations as may be necessary to canry out the purposes of this Code; 
(b) 
To administer oaths, summon the parties to a controversy, issue subpoenas 
requiring the attendance and testimony of witnesses or the production of such books, papers, 
contracts, records, statements of accounts, agreements, and others as may be material to a just 
dererniination of the matter under investigation, and to testify in any investigation or hearing 
coiiducted in pursuance of this Code; 
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(c) 
To coilduct investigation for the determination o f  a question, matter or 
controvcrsy within its jurisdiction, proceed to hear and determine the disputes in the absence of 
any party thereto who has been summoned or served with notice to appear, adjourn its hearings 
to any time and place? refer technical matters or accounts to an expert and to accept his report as 
evidence a.ffer hearing of the parties upon due notice, direct parties to be joined in or excluded 
from die proceedings, collect, amend, or waive any error, defect or irregularity, whether in 
substance or in form, give all such directions as it may deem,necessary or expedient in the 
determination of the dispute before it, and dismiss any matter or refrain from further hearing or 
from deterinining the dispute or part thereof, where it is trivial or where further proceedings by 
the Commission are not necessary or desirable; and 
(d) 
To hold any person in contempt direct or indirectly and impose appropriate 
penalties therefor in accordance with law. 
h person guilty o f  misbehavior in the presence of or so near the Chainnan or any member 
of the Cornmission oI any Labor Arbiter as to obstruct or interrupt the proceedings before the 
same, iiicluding disrespect toward said officials, offensive personalities toward others, or refusal 
to be sworn or to answer as a witness, or to subscribe an affidavit or deposition when lawfully 
required to do so, nyay sunmarily adjudged in direct contempt by said officials and punished by 
fine not exceeding five hundred pesos (P500) or imprisonment not exceeding five (5) days, or 
both if i t  be the Coininission or a member thereof, or by a fme not exceeding one hundred pesos 
(@loo) or imprisonment not exceeding one (1) day, or both if it be a Labor Arbiter. 
The person adjudged in direct contempt by a Labor Arbiter may appeal to the 
Commission and the execution of the judgment shall be suspended pending the resolution of the 
appeal upon ihe filing of subject person of a bond on condition that he will abide by and perform 
the judgment of the Commission should the appeal be decided against him. Judgment of the 
Commission on direct contempt is immediately executory and unappealable. Indirect contempt 
shall be dealt with by the Commission or Labor Arbiter in the manner prescribed under Rule 71 
of the R~eviscd Rules of Court. (A, Art.218 (e)) 
ARTICLE 222. 
Ocular Inspection. - 
The Chairman, any Commissioner, Labor 
Arbiter or their duly authorized representatives may at any time during working hours conduct an 
ocular inspection on any establishment, building, ship or vessel, place or premises, including any 
work, materid, iinpleinent, machinery, appliance or any object therein, and ask any employee, 
laborer or any persoii as the case may be for any information or data concerning any matter or 
question relative to the object of the investigation. 
ARTICLE 223. 
Technical rules not binding and prior resort to amicable 
settierncnt. - 
111 any proceeding before the Commission or any of the Labor Arbiters, the rules 
of evidence prevailing in courts of law or equity shall not be controlling, and it is the spirit and 
intention of ihis Code that the Commission and its members and the Labor Arbiters shall use 
every and all reasonable means to ascertain the facts in each case speedily and objectively, 
witbout regard to technicalities of lam or procedure, all in the interest of due process. In any 
proceeding before the Commission or any Labor Arbiter, the parties may be represented by legal 
counsel hut it shall be the duty of the Chairman, any Presiding Commissioner or Commissioner 
or auy Labor Ar!iter to exercise complete control of the proceedings at all stages. 
Any provision of law to the contrary notwithstanding, the Labor Arbiter shall exert all 
efforts towards the amicable settlement of a labor dispute within his jurisdiction on or before the 
first hearing. The same rule shall apply to the Commissioii in the exercise of its original 
jurisdiction. 
A-RTICLE 224. 
Appearances and fees. - 
(a) Non-lawyers may appear before the 
Connnissioner or any Labor Arbiter only: 
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1. 
I€they represcnt themselves; or 
2. 
(b) 
If they represent their organization or members thereof. 
No attoriiey's fees, negotiation fees or similar charges of any kind arising from 
my collective bargaining negotiations or conclusion of the collective agreement shall be imposed 
on any iiidividual member of the contracting union: Provided, however, That attorney's fees may 
be charged against union funds in an amount to be agreed upon by the parties. Any contract, 
agrecnient or arrangement of any sort to the contrary shall be null and void. 
(c) 
No docket fee shall be assessed in labor standards disputes. In all other disputes, 
docket fees may he assessed against the filing party, provided that in bargaining deadlocks, such 
fees shall be shared equally by the negoiiating parties. (Art.Z77(d)) 
TITLE rI 
NATIONAL LABOR RELATIONS COMMISSION 
CHAPTER I11 
APPEAL 
ARTICLE 225. 
Appeal. - 
Decisions, awards, or orders of the Labor Arbiter are 
fiioal and executory ~uiless appealed to the Commission by any or both parties within ten (10) 
calendar days from receipt of such decisions, awards, or orders. Such appeal may be entertained 
only on any of the following grounds: 
(a) 
If there is prima facie evidence of abuse of discretion on the part of the Labor 
Arbiter: 
(b) 
If the decision, order or award was secured through fraud or coercion, including 
graft and corruption; 
(c) 
(d) 
If made purely on questions of law; and 
If serious errors in the findings of facts are raised which would cause grave or 
irreparable damage or injury to the appellant. 
In case of a judgment involving a monetary award, an appeal by the employer may be 
perfected only upon the posting of a cash or surety bond issued by a reputable bonding company 
duly accredited by the Commission in the amount equivalent to the monetary award in the 
judgment anpealed from. 
111 any event, the decision of the Labor Arbiter reinstating a dismissed or separated 
employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, eveu 
pending appeal. The employee shall either be admitted back to work under the same terms and 
conclitioiis prevailing prior to his dismissal or separation or, at the option of the employer, merely 
reinslated in the payroll. The posting of a bond by the employer shall not stay the execution for 
reinstatement provided herein. 
'To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter sliall 
impose reasonable penalty, including fines or censures, upon the erring parties. 
In all cases, the appellant shall knish a copy of the memorandum of appeal to the other 
party who shall file an ariswer not later than ten (10) calendar days from receipt thereof. 
64 


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The Cornmission shall decide all cases within twenty (20) calendar days from receipt of 
tli- answer of the appellee. The decision of the Coinmission shall be final and executory after ten 
(10) calendar days from receipt thereof by the parties. 
Any law enforcement agency may be deputized by the Secretary of Labor and 
E:niployment or the Commission in the enforcement of decisions, awards, or orders. 
To ensure speedy labor justice, the periods provided in this Code within which decisions 
or resolutions of labor relations cases or matters should be rendered shall be mandatory. For this 
purpose, a case or matter shall be deemed submitted for decision or resolution upon the filing of 
the last pleading or memorandum required by the rules of the Commission or by the Commission 
itself, or the Labor Arbiter or the Director of the Bureau of Labor Relations or Med-Arbiter, or 
the Regional Director. 
Upon expiration of the corresponding period, a certification stating why a decision or 
resolution has not been rendered within the said period shall be issued forthwith by the Chairman 
oi' the Cornmission, the Executive Labor Arbiter, or the Director of the Bureau of Labor 
Relations or Med-Arbiter, or the Regional Director, as the case may be, and a copy thereof 
served upon the parties. 
Despite the expiration of the applicable mandatory period, the aforesaid officials shall, 
wifliout prejudice to any liability which may have been incurred as a consequence thereof, see to 
it that the case or inaner shall be decided or resolved without any further delay. (Art.223 added 
277(i)-a) 
ARTICLE 226. 
Execution of decisions, orders, or awards. - 
(a) The Secretary 
of Labor and Employment or any Regional Director, the Commission or any Labor Arbiter or 
the voluidary arbitrator or panel of voluntary arbitrators may, motu propio or on motion of any 
interested party, issue a writ of execution 011 a judgment within five (5) years €rom the date it 
becomes final and executory, requiring a sheriff or a duly deputized officer to execute or enforce 
final decisions, orders or awards of the Secretary of Labor and Employment or Regional 
Director, tlie Commission, or the Labor Arbiter or voluntary arbitrator or panel of voluntary 
arbitrators. In any case, it shall be the duty of the responsible officer to separately furnish 
immediately the counsel of record and the parties with copies of said decisions, orders or awards. 
Failure to comply with -the duty prescribed herein shall subject such responsible officer to 
appropriate administrative sanctions. 
(b) 
The Secretary of Labor and Employment, and the Chairman of the Commission 
n~ay designate special sheriffs and take any measure under existing laws to ensure compliance 
with their decisions, orders or awards and those of Labor Arbiters and voluntary arbitrators or 
panel of voiuntary arbitrators, iiicluding the impositioii of administrative fines which shall not be 
less than five hundred pesos (P500.00) nor more than ten thousand pesos (@lO,OOO.OO). 
ARTICLE 227. 
Contempt powers of the Secretary of Labor and EmpIoyrnent. 
Jn Ihc exercise of his powers under this Code, the Secretary of Labor and Employment may 
hold any person in direct or indirect contempt and impose the appropriate penalties therefor. 
TITLE I11 
BUREAU OF LABOR RELATIONS 
ARTICLE 228. 
Bureau of Labor Relations. - 
The Bureau of Labor Relations 
arid tlie Labor Relations Divisions in the regional offices of the Department of Labor and 
Eniployinent shalI have original and exclusive authority to act, at their own initiative or upon 
request OF an interested party, on all intra-union conflicts. 
65 


Eniploynient shall have original and exclusive authority to act, at their own initiative or upon 
reque.st of an interested party, on all ultra-union conflicts. 
The Bureau shall have fifteen (15) calendar days to act on labor cases before it, subject to 
extension by agreement ofthe parties. (Art.226-a) 
ARTXCLE 229. 
Conciliation and compromise agreements. - The National 
Conciliation and Mediation Board shall implement the preferential use of voluntary modes o f  
settling labor disputes through conciliation in accordance with such rules and regulations as the 
Secretary of Labor and Employment may promulgate. Any compromise settlement, including 
those involving labor standard laws, voluntarily agreed upon by the parties with the assistance of 
the Board and its Regional Branches, shall be final and binding upon the parties. The National 
Labor Relations Commission or any court shall not assume jurisdiction over issues involved 
therein except in case o f  non-compliance thereof or if there is prima facie evidence that the 
settlement was obtained through fraud, misrepresentation, or coercion. (Art.227-a) 
ARTICLE 230. 
Issuance of subpoenas. - 
The Bureau shall have the power to 
require the appearance of any person or the production of any paper, document or matter relevant 
to a labor dispute uiider its jurisdiction either at the request of any interested party or at its own 
initiative. 
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ARTICLE 231, 
Registry of unions. - The Bureau shall keep a registry of 
legitimate labor organizations. (fixt.23 I-a) 
ARTICLE 232. Registry of collective bargaining agreements - The Board shall 
niaiirtaiu a registry of all collective bargaining agreements and other related agreements and 
records of the coinpromise settlements of labor disputes, and copies of orders, and decisions of 
volunlary arbitrators or panel or voluntary arbitrators. The file shall be open and accessible to 
interested parties under conditions prescribed by the Secretary of Labor and Employment, 
Prosided that no specific information submitted in confidence shall be disclosed unless 
authorized by the Secretary, or when it is at issue in any judicial litigation or when public interest 
or national security so requires. 
Within thirty (30) days from the execution of a collective bargaining agreement, the 
parties shall subinit copies o f  the same directly to the Board for registration accompanied with 
verified proofs of its posting in two conspicuous places in the place of work and ratification by 
the majority o f  all the workers in the bargaining unit. The Board shall act upon the application 
for registration of such collectivc bargaining agreement within five (5) calendar days from 
receipt thereof. 
l'he Board shall assess the employer for every collective bargaining agreement a 
registration fee of not less than two thousand pesos (P2,OOO.OO) or in any other amount as may 
be deemed appropriate and necessary by the Secretary of Labor and Employment for the 
effective and efficient administration of the voluntary arbitration program. Any amount collected 
under this provision shall accrue to the Special Voluntary Arbitration Program. (A, Art.231-A) 
ARTXCLE 233. 
Privileged communication. - 
Information and statements made 
at conciliation proceedings shall be treated as privileged communication and shall not be used as 
evidence in the Commission. Conciliators and similar officials shall not testify in any court or 
body regarding any matters talcen up at conciliation proceedings conducted by them. 
TITLE IV 
LABOR ORGANIZATIONS 
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CHAPTER I 
REGISTRATION AND CANCELLATION 
AI;\TXCLE 234. Types of labor organizations; requirements of registration. - A 
labor organization may consist of workers employed by a particular employer, or of employees 
in an appropriate occupational grouping of workers organized for mutual aid and protection. It 
incluclcs an organizalion operating at the enterprise level or in an appropriate bargaining unit 
within an enterprise, as well as a national or industry union, federation confederation or tradc 
union ccnter. 
Any applicant labor organization, a federation, national union or industry or trade union 
center 01' an independent union shall acquire legal personality and shall be entitled to the rights 
and privileges granted by law to legitimate labor organizations upon compliance with the 
following requirements: 
(a) The names of its officers, their addresses, and the principal address of the labor 
orgaiimtion 
(b) In case ,the applicant is an independent union, the names of all its members 
coniprising at least twenty percent (20%) of all the employees in the bargaining unit where it 
seeks to operate, 
(c) Four copies of its constitution and by-laws as the rules promulgated by the 
Secrelary of Labor and Employment may require; 
(cl) A verified statement by the head ofthe organization concerned that all the facts and 
proceedings in the foregoing documents are true and correct, and that the constitution and by- 
laws ol' the organization has been deliberated upon and ratified by the members in the 
appropriate organizational or general membership meeting; and 
(e) Payment of registration fee to be prescribed by the Secretary of Labor and 
Einploynieiit from time to time, but which shall only be in an amount necessary to cover the 
costs of processing and maintaining the documents submitted. 
Upon submission of all the foregoing documents, the Bureau shall issue in favor of the 
labor organization coiiceriied a certificate of registration evidencing its inclusion in the roster of 
legitimate labor organizations, which shall be kept by the Bureau. (Art.234-a) 
ARTICLE 235. Chartering and creation of a local chapter. - A duly registered 
federation or national union may directly create a local chapter by issuing a charter certificate 
indicating the establishment of the local chapter. The chapter shall acquire legal personality only 
for purposes of filing a request for certification election from the date it was issued a charter 
certiiicate. 
The chapter shall be entitled to all other rights and privileges of a legitimate labor 
organization oiily upon the submission of the following documents in addition to its charter 
ceriificate: 
(a) The names of the chapter's officers, their addresses, and the principal office of thc 
chaptcr; and 
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(b) 
The chapter’s constitution and by-laws: Provided, that where the chapter’s 
coiistitution add by-laws is the same as thai of the federation or the national union, this fact shall 
be iiidjcated accordingly. 
The additional supporting requirements shall be certified under oath by the secretary or 
treasurer of the chapter and attested to by its President. 
Any form of misrepresentation, false statement or fraud committed by individual 
officers or members shall not be a ground for cancellation but shall subject the erring officers or 
nieinbers to suspension, expulsion from membership, or any other appropriate penalty. (n) 
AI<TICX,E 236. 
Action on application. - 
The Bureau shall act on all applications 
for registration within ten (10) days from filing. If no action is talcen by the Bureau within that 
period after coniplele submission of the requirements, the labor organization is deemed 
registered. 
All requisite documents and papers shall be certified under oath by the secretary or the 
treasurer ofthe organization, as the case may be, and attested to by its president. (Ar1.235-a) 
AIXTXCLE 237. 
Denial of registration; appeal. - The decision of the Labor 
Relations Division in the regional office denying registration may be appealed by the applicant 
union to the Bureau withiii ten days €?om receipt of notice thereof. 
.ARTICLE 238. 
Additional requirements for federations or national unions. - 
If the applicant for registration is a federation or a national union, it shall, in addition to the 
requirements of the preceding Articles, submit the following: 
(a) 
Proof or the affiliation of at least ten locals or chapters, each of which must be a 
duly recognized collective bargaining agent supporting the registration of such applicant 
federation or riatioiial union; 
(b) 
The names and addresses of the companies where the locals or chapters operate 
arid the list of all the members in each company involved. (Art.237-a) 
ARTICLE. 239. Cancellation of registration. - The certificate o f  registration of any 
legitimate labor organization may be cancelled by the Bureau after due hearing only on the 
grounds specified in Article 242 hereof. (Art.238-a) 
ARTICLE 240. Effect of a petition for cancellation of registration. - A petition for 
cancellation of uuion registration shall not suspend the proceedings for certification election nor 
shall it prevent the filing of a petition for certification election. 
In case of cancellation, nothing herein shall restrict the right of the union to seek just and 
equitable remedies in the appropriate courts. (n) 
ARTKCLE 241. Effect of inclusion as members of employees outside the bargaining 
unit. - The inclusiou as union menibers of employees outside the bargaining unit shall not be a 
ground for the cancellation of the registration of the union. Said employees are automatically 
deemed removed from the list of membership of said union. (n) 
ARTICLE 242. Grounds for cancellation of union registration. - (a) Failure to 
comply with reporting requirements. Every legitimate labor organization shall submit periodic 
reports to the Bureau, as follows: 
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(1) 
4 copy of its aniended constitution and by-laws and proof of its ratification, 
within 30 days from such ratification; 
(2) 
An updated list of its officers, their addresses, and their terms of office, within 30 
days Go:n their assumption of office; 
(3) 
An annual financial report prepared by its accountable officers, including a 
statement indicating the number of its current members, locals, chapters or affiliates as the case 
may be, within 30 days after the close of its fiscal year; and 
(4) 
h; the case of federations, national or industry unions; confederations or trade 
union centers, an updated list of the employers, including their addresses, with which such 
organizations have existing collective bargaining agreements. 
(b) 
Misreplesentation, false statement or fraud vitiating the consent or free choice of 
the members in forming the labor organization; Provided, that any other form of 
misrepresenlation, false statement or fraud committed by individual officers or members shall 
iiot be a ground for c‘ancellation but shall subject the erring officers or members to suspension, 
expulsion fyom membership, or any 
appropriate penalty as may be imposed by the 
organization’s constitution and by-laws, or as the membership may decide. 
(c) 
Using tlie union as a guise to engage in any activity prohibited by law, such as but 
not limited to: 
(1) Acting as a labor contractor or engaging in the “cabo” system, or otherwise engaging 
in any activity prohibited by law; 
(2) Entering into collective bargaining agreemenb which provide terms and conditions 
of employment below ininiinum standard established by law; 
(3) Asking for or accepting Attorney’s fees or negotiation fees from employers; 
(4) Other than for mandatory activities under this code, checking off special assessments 
or any other fees without duly signed individual written authorizations ofthe members; 
(d 
I11 case of cancellation, nothing herein shall restrict the right of the organization to seek 
De facto or voluntary dissolution by the members. 
redress in the appropriate courts. (Art.239-a) 
TITLE IV 
LABOR ORGANIZATIONS 
CHAPTER 11 
RIGHTS AND CONDITlONS OF MEMBERSHIP 
ARTICLE 243. 
Rights and conditions of membership in a labor organization. 
-- 
The following are tlie rights and conditions of membership in a labor organization: 
(a) 
No arbitrary or excessive initiation fees shall be required oE the members of a 
legitimate labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be 
imposed; 
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(b) 
The members shall be entitled to full and detailed reports fTom their officers and 
representalives of,all financial transactions as provided for in the constitution and by-laws of the 
organization; 
. 
(c) The members shall elect their officers by secret ballot at intervals of not more than 
thee (3) years. Tlie election shall be done directly unless circumstances otherwise require arid as 
provided for in the constitution and by-laws of the organization. No qualification requirement for 
candidacy to any position shall be imposed other than membership in good standing in subject 
labor organization. Tlie Secretary or any other responsible union officer shall furnish the 
Secretary of Labor aid Employment with a list of the newly-elected officers, together with the 
appoinlive officers or agents who are enkusted with the handling of funds within thirty (30) 
calendar days after the election of officers or from the occurrence of any change in the list of 
officers of the labor organization. 
(d) 
The members shall determine by secret ballot, after due deliberation, any question 
of major policy affecting tlie entire membership of the organization, unless the nature o f  the 
organization or force majeure renders such secret balloting impractical, in which case the boaxd 
of directors of the Organization may make the decision in behalf of the general membership. 
(e) 
No Iabor organization shall knowingly admit as member or continue in 
meinhership any individual who belongs to a subversive organization or who is engaged directly 
or iiidirectly in any subversive activity; 
(i) 
No person who has been convicted of a crime involving moral turpitude shall be 
digible for election as a union officer or for appointment to any position in the union; 
(g) 
No officer, agent or member of a labor organization shall collect any fees, dues, 
or other contributions in its behalf or make any disbursement of its moneys or funds unless lie is 
duly authorized pursuant to its Constitution and by-laws; 
(h) 
Every payment of fees, dues or other contributions by a member shall be 
evidenced by a receipt signed by tlie officer or agent malting the collection and entered into the 
rccord or the organization to be kept .and maintained for the purpose; 
(i) 
Tlie funds of the organization shall not be applied for any purpose or object other 
thm hose expressly provided by its constitution and by-laws or those expressly authorized by 
written rcsoluiion adopted by the majority of the members at a general meeting duly called for 
the purpose; 
(j) Every income or revenue of the organization shall be evidenced by a record showing 
its SOUI’CC,, 
and every expenditure of its funds shall be evidenced by a receipt from the person to 
wlioiii t!ie paynient is made, which shall state the date, place and purpose of such payment. Such 
record or receipt shall form part of the financial records of the organization. 
Any action involving the funds ofthe organization shall prescribe thee (3) years from the 
clatc or submission of the annual financial report to the Department of Labor and Employment or 
from the date the same should have been submitted, whichever comes earlier. 
(1) 
The officers of any labor organization shall not be paid any compensation other 
than the salaries <and expenses due to their positions as specifically provided for in its 
canstilution and by-laws or in il written resolution duly authorized by a majority of all the 
niembcrs at a general membership meeting duly called for the purpose. The minutes of the 
meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary 
of Labor and Employment or his duly authorized representatives. Any irregularities in the 
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approval of the resolutions shall be a ground for impeachment or expulsion &om the 
orgmimtion; 
(1) 
The treasurer of any labor organization and every officer thereof who is 
responsible for the accounts of such organization or for the collection, management, 
disbursement, custody or control of the fmds, moneys and other properties of the organization, 
shall render to ihe organization and to its members a true and correct account of all moneys 
received and paid by him since he assumed office or since the last date on which he rendered 
such account and of the balance remaining in his hands at the time of rendering such account, 
and of all bonds, securities and other properties o€ the organization entrusted to his custody or 
wider his control. The rendering of such account shall be made: 
(I) 
(2) 
At least once a year within thirty (30) days after the close of its fiscal year; 
At sucb other times as may be required by a resolution of the majority of the 
members of the organization; and 
(3) 
Upon vacating his office. 
The account shall be duly audited and verified by affidavit and a copy thereof shall be 
ftirnished the Secretary of Labor and Employment; 
(111) 
The boolcs of accounts and other records of the financial activities of any labor 
organization shall be opened to inspection by any officer or member thereof during office hours; 
(n) 
No special assessment or other extraordinary fees may be levied upon the 
members of a labor organization unless authorized by a written resolution of a majority of all th.e 
incmbers at a general membership meeting duly called for the purpose. The secretary of the 
organization shall record the minutes of the meeting including the list of all members present, the 
votes cast, the purpose of the special assessment or fees and the recipient of such assessment or 
fees. The record shall be attested to by the president; 
(0) 
Other than for mandatory activities under the Code, no special assessment, 
attorney's fees, negotiation fees or any other extraordinary fees may be checked off from any 
amount due an employee without an individual written authorization duly signed by the 
employee. ?'lie authorization should specifically state the amount, purpose and beneficiary of the 
deduction; and 
(p) 
It shall be the duty of any labor organization and its officers ,to inform its 
members on the provisions of its constitution and by-laws, collective bargaining agreement, the 
prevailing labor relations system and all their rights and obligations under existing labor laws. 
For this purpose, registered labor organizations may assess reasonable dues to finance 
labor relatioi-s seniinars and other labor education activities. 
Any violation of the rights and conditions of membership shall be a ground for subjecting 
the erring officer or member to suspension, expulsion or other, disciplinary action in accordance 
with the organization's constitution and by-laws. 
A member may file with the Bureau a 
compiainl based on violations of the rights and conditions of membership only if there is no 
appropriate internal adininistrative mechanism in the organization's constitution and by-laws, or 
if such meclianisni exists but the remedies therein have been exhausted or rendered inavailing to 
the incinber through no fault of his or her own. In such case, the Bureau shall have the power to 
hear a i d  decide any reported violation and to mete the appropriate penalty, Provided that the 
penalty of suspension or expulsion may not he imposed unless approved by a majority vote of 
the membership. 
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Criminal and civil liabilities arising from violations of above rights and conditions of 
membership shall coiitinue to be under the jurisdiction of ordinary courts. (Art.241-a) 
‘The Secretary of Labor and Employment 01’ his duly authorized representative is hereby 
empowered to inquire into tlie financial activities of legitimate labor organizations upon the 
filing of a complainant under oath and duly supported by the written consent. of at least twenty 
percent (20%) of tlie total membership of the labor organization concerned and to examine their 
books of accounts and other records to determine compliance or non-compliance with the law 
and to prosecute any violations ofthe law and the union constitution and by-laws: Provided, That 
such inqniry or examination shall not be conducted during the sixty (60) day freedom period nor 
williin thirty (30) days immediately preceding the date of election of union officials. (Art.274-a) 
TITLE IV 
LABOR ORGANIZATIONS 
CHAPTER 111 
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS 
ARTICLE 244. 
organization shall have the right: 
Rights of legitimate labor organizations. - 
A legitimate labor 
(aj 
To act as the representative of its members for the purpose of collective 
hargainiiig or for mutnal aid and protection; 
(b) 
To be certified as the exclusive representative of all the employees in an 
appropriate collective bargaining unit for purposes of collective bargaining; 
(c) 
To be furnished by the employer, upon written request, with his annual audited 
fin~ll~ia~ 
statements, including the balance sheet and the profit and loss statement, within thirty 
(30) calendar days from the date of receipt of the request, after the union has been duly 
recognized by the employer or certified as the sole and exclusive bargaining representative of the 
employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the 
existing collective bargaining agreement, or during the collective bargaining negotiation; 
(d) 
and its members; 
(e) 
(f) 
To own property, real or personal, for the use and benefit of the labor organization 
To sue and be sued in its registered name; and 
To undertake all other activities designed to benefit the organization and its 
nienibers, including cooperative, housing welfare and other projects not contrary to law. 
Notwithstanding any provision of a general or special law to the contrary, the income, 
and the properties of legitimate labor organizations, including grants, endowments, gifts, 
donations and contributions they may receive from fraternal and similar organizations, local or 
foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free 
from taxes, duties, and other assessments. The exemptions provided herein may be withdrawn 
only by a special law expressly repealing this provision. (Art.242-a) 
All unions are authorized to collect reasonable membership fees, union dues, assessments 
and fines and other contributions for labor education and research, mutual death and 
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hospitaliz,ation benefits, welfare fund, strike fund and credit and cooperative undertakings. (A, 
Art.277 (a)) 
TITLE V 
COVERAGE 
RIGHT TO SELF-ORGANIZATION 
AR'TICLE 245. 
Coverage and employees' right to self-organization. - All 
Employees 
shall have the right to self-organization and to form, join or assist labor 
organizations of their own choosing for purposes of collective bargaining. (Art.243-a) 
ARTICLE 246. Workers associations. - Ambulant, intermittent and itinerant workers, 
self-cmployed people, rural workers and those without any definite employers may form workers 
associations for the purpose of enhancing and defending their interests and for their mutual aid 
and protection. (A, Art.243) 
Any employee, whether employed for a definite period or not, shall, beginning on his 
first day of service, be considered an employee for purposes of membership in any labor union. 
(A, Art.277 ( c)) 
ARTICLE 247. 
Right of employees of government owned and controlled 
corporations . Employees of government owned and controlled corporations established under 
the Corporation Code shall have the right to organize and to bargain collectively with their 
respectivc employers. Under this Code the employees of all branches, subdivisions, 
inslrurnen talities and agencies of the government, including government owned and controlled 
corporation with original charters shall have the right to organize and to have collective 
negotiation in accordance with civil service law, rules and regulations. (Art.244-a) 
AfWICLE 248. 
Ineligibility of managerial empfoyees to join any labor 
organization; right of supervisory employees. - 
Managerial employees are not eligible to 
join, assist or form any labor organization. Supervisory employees shall not be eligible for 
membership in collective bargaining units of the rank-and-file employees but may join, assist or 
form separate collective bargaining units and/or legitimate labor organizations of their own. The 
rank-and-file nnion and the supervisors' union may join the same federation or national union. 
(Art.245-a) 
ARTICLE 249. 
Non-abridgement of right to self-organization. - It shall be 
unlawful for any person to restrain, coerce, discriminate against or unduly interfere with 
employees and workers in their exercise of the right to self-organization. Such right shall include 
thc right to form, join, or assist labor organizations for the purpose of collective bargaining 
through representatives of their own choosing and to engage in lawful aid and protection, subject 
to the provisions of this Code. (A, A1t.246) 
TITLE VI 
UNFAIR LABOR PRACTICES 
CHAPTER I 
CONCEPT 
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ARTICLE 250. 
Concept of unfair labor practice and procedure €or 
prosecution thereof' . - 
Unfair labor practices violate the constitutional right of workers and 
employees Lo selI-organinization, are inimical to the legitimate interests of both labor and 
n:anagement, including their right to bargain collectively and otl1erwise deal with each other in 
ai atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion 
of healthy and stable labor-management relations. 
Consequently, unfair labor practices are not only violations of the civil rights of both 
labor. and management but are also criminal offenses against the State, which shall be subject io 
plosecution aid pLmishment as herein provided. 
Snbject to the exercise by the President or by the Secretary of Labor and Employment of 
the powers vested in them by Articles 271 and 272 of this Code, the civil aspects of all cases 
invoiving unfair labor practices, which may include claims for actual, moral, exemplary and 
other forms of damagcs, attorney's fees and other dfirmative relief, shall be under the 
jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost priority to the hearing 
and resolution of all cases involving unfair labor practices. They shall resolve such cases within 
thiity (30) calendar days €rom the time they are submitted for decision. 
Recovery of civil liability in the administrative proceedings shall bar recovery under the 
Civil Code. 
No criiniiial prosecution under this Title may be instituted without a final judgment, 
finding that an uiTfair labor practice was committed, having been first obtained in tbe 
administrative proceeding referred to in the preceding paragraph. During the pendency of such 
administrative proceeding, the running of the period of prescription of the criminal offense 
herein penalized shall be considered interrupted Provided, however, That the final judgment in 
the administrative proceedings shall not be binding in the criminal case nor be considered as 
evidence o f  guilt but merely as proof of compliance with the requirements herein set forth. 
Noiwithstatiding the provision of the immediately preceding paragraph, any employer, 
includiiig any person acting in the interest of an employer who unjustly dismisses union officers 
duly clecled in accordance with the constitution and by-laws which constitutes union busting 
where the existence of the union is threatened commits not only an unfair labor practice but also 
a criminal offense which may be the subject of an immediate criminal prosecution. (Art.247-a) 
TITLE VI 
UNFAIR LABOR PRACTICES 
CHAPTER XI 
UNFAIR LABOR PRACTICES OF EMPLOYERS 
ARTICLE 251. 
Unfair labor practices of employers. - 
It shall be unlawful for 
an employer to commit any of the following nnfair labor practices: 
(a) 
self-organization; 
(b) 
To interfere With, restrain or coerce employees in the exercise of their right to 
To require as a condition of employment that a person or an employee shall not 
join a labor organization or shall withdraw from one to which he belongs; 
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(C) 
TO col&ct 
out services or l?unctions being performed by union members when 
such will interferc with, restrain or coerce employees in the exercise of their right to self- 
organization; 
(d) 
To initiate, dominate, assist or otherwise interfere with the formation or 
aclministraiioii of any labor organization, including the giving of financial or other support to it 
or its organizers or officers; 
(e) 
To discriminate in regard to wages, hours of work, and other terms and conditions 
of employment in order to encourage or discourage membership in any labor organization. 
Nothing in this Code or in any other law shall stop the paties from requiring membership in a 
r~cognized collective bargaining agent as a condition for employment, except of those 
employees who are already members of another union at the time of the signing of the collective 
bargaining agreement. Employees of an appropriate collective bargaining unit who are not 
 embers of the recognized collective bargaining agent may be assessed a reasonable fee 
equivahit to the clues and other fees paid by members of the recognized collective bargaining 
agent, if such iioii-union members accept the benefits under the collective agreement: Provided, 
That the individual authorization required under Article 244, paragraph (c), of this Code shall not 
apply to the non-members of the recognized collective bargaining agent; 
(f) 
To dismiss, discharge or otherwise prejudice or discriminate against an employee 
foor having given or being about to give testimony under this Code; 
(g) 
(h) 
To violate the duty to bargain collectively as prescribed by this Code; 
To pay negotiation or attorney's fees to the union or its officers or agents as part 
ofthe settlement of any issue in collective bargaining-or any other dispute; or 
(i) 
The provision ofthe preceding paragraph notwithstanding, only the officers and agents of 
corporations, associalions, or partnerships who have actually participated in, authorized or 
ratified uiyhir labor practices shall be held criminally or civilly liable. (Art.248-a) 
To violate a collective bargaining agreement. 
TITLE VI 
UNFAIR LABOR PRACTICES 
CHAPTER 1x1 
UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS 
ARTXCLIC 252. 
Unfair labor practices of labor organizations. - It shall be 
unfair Iahor practice for a. labor organization, its officers, agents, or representatives: 
(a) 
To restrain or coerce employees in the exercise oftheir right to self-organization. 
However, a labor organization shall have the right to prescribe its own rules with respect to tlie 
acquisi~ion or retention of membership; 
(b) 
To cause or attempt to cause an employer to discriminate against an employee, 
including discriiiiination against an employee with respect to whom membership in such 
organization has been denied or to terminate an employee on any ground other than the usual 
iernis and conditioix under which membership or continuation of membership is made available 
to other members; 
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(c) 
To violate the duty or refuse to bargain collectively with the employer, provided 
tha~ it is the representative of the employees; 
(d) 
'To cause or attempt to cause an employer to pay or deliver or agree to pay or 
deliver any ri'.:mey or other things of value, in the nature of an exaction, for services which are 
not performed or not to be performed, including the demand for a fee for union negotiations; 
(e) 
TO aslc for or accept negotiation'or attorney's fees from empIoyers as pzi of the 
settlement of any issue in collective bargaining or any other dispute; or 
(0 
(g) 
To violate a collective bargaining agreement. 
To violate the duty of fair representation, including entering into collective 
bargaining agreements which provide terms and conditions o f  employment below minimum 
standards established by law. 
The provision of the preceding paragraph notwilhstanding, only the officers, members of 
governing boards, representatives or agents or members of labor associations or organizations 
who have actually participated in, authorized or ratified unfair labor practices shall be held 
criniiiially or civilly liable. (Art.249-a) 
TITLE VIX 
CC)LLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS 
ARTICLE 253. 
Procedure in collective bargaining. - 
The following procedures 
shall be observed in collective bargaining: 
(a) 
When a party desires to negotiate an agreement, it shall serve a written notice 
upon the other party with a statement of its proposals. The other party shall male a reply thereto 
not later than kn (10) calendar days from receipt o f  such notice; 
(h) 
Should differences arise on the basis of such notice and reply, either party may 
request for a conference which shall begin not later than ten (10) calendar days from the date of 
requesi; 
(cj 
IT the dispute is not settled, the Board shall intervene upon request of either or 
both parties or at its own initiative and immediately call the parties to conciliation meetings. Tne 
Board shall have the power to issue subpoenas requiring the attendance of the parties to such 
meetings. It shall be the duty of the parties to participate fully and promptly in the conciliation 
meetings the Board may call; 
(d) 
(e) 
During the conciliation proceedings in the Board, the parties are prohibited from 
The Board shall exert all efforts to settle disputes amicably and encourage the 
doing any act which may disrupt or impede the early settlement ofthe disputes; and 
parties to submit their case to a voluntary arbitrator. 
ARTICLE 254. 
Duty to bargain collectively in the absence of collective 
bargaining agreements. - In the absence of an agreement or other voluntary arrangement 
providing €or a more expeditious manner of collective bargaining, it shall be the duty of the 
employer and the representatives of the employees to bargain collectively in accordance with the 
provisions oftliis Code. 
ARTICLE 255. 
Meaning of duty to bargain collectively. - 
The duty to bargain 
collectively means the performance of a mutual obligation to meet and convene promptly and 
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expeditiously in good faith for the purpose of negotiating an agreement with respect to wages, 
hours of work and all other terms and conditiolls of employment including proposals for 
adjusting any grievances or questions arising under such agreement and executing a contract 
incorporating such agreements if requested by either party, but such duty does not conipel any 
party to agree to a proposal or to male any concession. 
ARTICLE 256. 
Duty to bargain collectively when there exists a collective 
bargaining agreemeiit. - 
When there is a collective bargaining agreement, the duty to bargain 
collectively shall also mean that neither party shall terminate or modify such agreement during 
i k  Jifetiine, However, either party can serve a written notice to terminate or modify the 
agreement at least sixty (60) days prior to its expiration date. It shall be the duty of both parties 
to keep the slatus quo and to continue in hll force and effect the term and conditions of the 
existing agreement during the 60-day period and/or until a new agreement is reached by the 
paxtics. 
ARTlCLE 257. 
Terms of a collective bargaining agreement. - 
Any collective 
bargaining agreement that the parlies may enter into shall be for a term of three (3) years. The 
majority status of the incumbent bargaining agent shall not be questioned and no certification 
elechon shall be conducted by the Bureau outside of the sixty-day period immediately before the 
date of expiry of such tlvee year term of the collective bargaining agreement. Any subsequent 
collective bargaining agreement entered into by the parties shall ietroact to the date of expiration 
of the previous collective bargaining agreement. ( Art.253-a) 
ARTICLE 258. 
Injunction prohibited. - 
No temporary or permanent injunction 
or restmining order in any case involving or growing out of labor disputes shall be issued by any 
court or other entity, except as otherwise provided in Articles 221 and 272 of this Code. 
ARTICLE 259. 
Exclusive 
bargaining 
representation 
and 
workers' 
participation in policy and decision-malring. - 
The labor organization designated or selected 
by the majority of the employees in an appropriate collective bargaining unit shall be the 
exclusive representative of the employee in such unit for the purpose of collective bargaining. 
However, an individual employee or group of employees shall have the right at any time to 
present grievances to their employer. 
Any provision of law to the contrary notwithstanding, workers shall have the right, 
subject to such rules and regulations as the Secretary of Labor and Employment may promulgate, 
to participate in policy and decision-making processes of the establishment where they are 
employed insofar as said processes will directly aEfect their rights, benefits and welfare. For this 
purpose, worlcers and employers may form labor-management councils: Provided, That the 
representatives of the worlcers in such labor-management councils shall be elected by at least the 
majority of all employees in said establishment. 
.4RTICLE 260. 
Representation issue in an organized establishment. - In an 
organized establishment when any legitimate labor organization including a national union or 
fcderation which has already issued a charter certificate to its local chapter participating in the 
certification election or a local chapter which has been issued a charter certificate by the national 
union or federation questions the majority status of the incumbent bargaining agent within the 
sixly-day period before the expiration of a collective bargaining agreement, the former may 


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request the Bureau to conduct a certification election as long as the request is supported by the 
written coiisent of at least twenty-five percent (25%) of all the employees in the appropriate 
bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit must 
have cast their votes. The labor union receiving the majority of the valid votes cast shall be 
cehfied as the exclusive bargaining agent of all the workers in the unit. When an election which, 
provides for three or more choices results in no choice receiving a majority of the valid votes 
cast, a rm-off election shall be conducted between the labor unions receiving the two highest 
iiuniber of votes: Provfded, That the total number of votes for all contending unions is at least 
fifty percent (50%) of the number of votes cast. In cases where the request was filed by a 
natioiml union or federation, it shall not be required to disclose the names of the local chapter’s 
officers and members. 
At the expiration of the freedom period, the employer shall continue to recognize the 
majority status of the incumbent bargaining agent where no request by any legitimate labor 
organization or a national union or federation for a certification election has been duly made. 
(ht.256-a) 
AK1’ICLE 261. 
Representation issue in an unorganized establishment. - (a) In 
any establishment where there is no bargaining agent, a legitimate labor organization which is 
the only legitimate labor organization in said establishment may voluntarily be recognized by the 
employer as the bargaining representative of the employees in a bargaining uiit of the 
establislimeit. 
If the employer does not extend said recognition, the legitimate labor 
organization may request the Bureau to conduct a certification election to determine if the 
legitimate labor organization shall be certified as the bargaining representative because it has the 
suppori of a majority of the employees of the bargaining unit. (Art.257-a) 
AlWTCLE 262. Representation issue where there is a bargaining agent but no 
collective bargaining agreement. - Any legitimate labor organization, national union or 
federation may cpestion the status of a bargaining agent if there is still no collective bargaining 
agreement afer one year from the date the bargaining unit was recognized or certified, in which 
case, the former may request the Bureau to conduct a certification election as long as the request 
is supported by the written consent of at least twenty-five percent (25%) of all employees in the 
appropriate bargaining unit. (n) 
AX-XTCLE 263. 
Action on request for certification election. - After receipt of a 
proper request the Bureau shall conduct the requested certification election within 15 days in 
accorclance with the rules and regulations prescribed by the Secretary of Labor and Employment. 
(hrt.2S 8-a) 
ARTICLE 264. Employer as by-stander. - in all cases, whether the request for 
certification election is filed by an employer or a legitimate labor organization, national union or 
federation, the employer shall not be considered a party thereto with a concomitant right to 
oppose it request for certification election. The employer’s participation in such proceedings 
shall be limited to: (1) being notified or idormed of requests of such nature, and (2) submittiizg 
fhe lisi of employees during the pre-election conference should the med-arbiter act favorable on 
tbe request. (n) 
ARTICLE 265. 
Appeal of certification election results - 
Any legitimate labor 
organjzation which is a party to a certification election may appeal the results of the election to 
the Bureau on the ground that the rules and regulations or parts thereof established by the 
Secretary of Labor and Employment for the conduct of the election have been violated. Such 
appeal shall be decided within fifeeen (IS) calendar days. The decision of the Bureau shall be 
final and executory. (Art.259-a) 
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TITLE VHI-A 
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION 
AlllTICLE 266. 
Grievance machinery and voluntary arbitration. -- 
The parties 
to a collective bargaining agreement shall include therein provisions that Will ensure the mutual 
observance of its terms and conditions. They shall establish a machinery for the adjustment and 
resolution of grievances arising from the interpretation or implementation of their collective 
bargaining agreement and those arising from the interpretation or enforcement of company 
personlie1 policies. 
All grievances submitted to the grievance machinery which are not settled within seven 
(7) calendar &ys from the date of its submission shall automatically be referred to voluntary 
arbitraf,ion prescribed in the collective bargaining agreement. 
For this purpose, parties to a collective bargaining agreement shall name and designate in 
ziivancc a voluntary arbitrator or panel of voluntary arbitrators, or include in the agreement a 
procedure for the selection of such voluntary arbitrator or panel o f  voluntary arbitrators, 
prefeerably fiom the listing of qualified Voluntary Arbitrators duly accredited by the Board. In 
case the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board 
sliail designate the Volunlary Arbitrator or panel of Voluntary Arbitrators, as may be necessary, 
pursuanl to the selection procedure agreed upon in the collective bargaining agreement, which 
shall act with the same force and effect as if the voluntary arbitrator or panel of voluntary 
arbitrators have been selected by the parties as described above. 
AXITICLE 267. 
Jurisdiction of voluntary arbitrators and panel of voluntary 
arbitrators. - 
The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original 
and exclusive jurisdiction to hear and decide all unresolved grievances arising from the 
interpretation or implementation of the Collective Bargaining Agreement and those arising from 
t k  interpretation or enforcement of company personnel policies referred to in the immediately 
preceding Article. Accordingly, violations of a Collective Bargaining Agreement, except those 
which are gross in character, shall no longer be treated as unfair labor practice and shall be 
resolved as grievances under the Collective Bargaining Agreement. For purposes of this Article, 
gross violations of a Collective Bargaining Agreement shall mean flagrant and/or malicious 
refusal to comply with the econoinic provisions o f  such agreement. 
The Comniission, its Regional Offices and the Regional Directors of the Department of 
Labor and Employment shall not entertain disputes, grievances or matters under the exclusive 
and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators and shall 
immediately dispose and refer the same to the grievance machinery or voluntary arbitration 
provided in the collective bargaining agreement. (n) 
AItTXCLE 268. 
Jurisdiction over other labor disputes. - The voluntary 
arbitrator or panel of voluntary arbitrators, upon agreement of the parties, shall also hear and 
decide all other labor disputes including unfair labor practices and bargaining deadlocks. 
ARTICLE 269. 
Procedures. - The voluntary arbitrator or panel of voluntary 
arbitrators shall have the power to hold hearings, receive evidences and take whatever action is 
necessary to resolve the issue or issues subject of the dispute, including efforts to effect a 
voluntary settlement between parties. 
All parties to tile dispute shall be entitled to attend the asbitration proceedings. The 
ntteudancc of any third party or the exclusion of any witness from the proceedings shall be 
determined by the voluntary arbitrator or panel of voluntary arbitrators. Hearings may be 
adjourned for cause or upon agreement by the parties. 
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Unless tlic partics agree otherwise, it shall be mandatory for the voluntary arbitrator or 
p i e l  of voluntary arbitrators to render an award or decision within twenty (20) calendar days 
from tlie date of submission of the dispute to voluntary arbitration. 
The award or decision of the Volrnitary Arbitrator or panel of Voluntary Arbitrators shall 
contain tlie facts and the law on which it is based. It shall be final and executory after ten (10) 
calendar days from receipt o f  the copy of the award or decision by the parties. 
Upon motion of any interested party, the voluntary arbitrator or panel of voluntary 
arbitrators 01 [he Laboi Arbiter in the region where the movant resides, in case of the absence or 
incapacity ofthe voluntary arbitrator or panel of voluntary arbitrators for any reason, may issue a 
writ of cxecution requiring either the sheriff of the Commission or regular courts or any public 
official xihorn the parties may designate in the submission agreement to execute the final 
decision, order or award. 
ARTICLE 270. 
Cost of Voluntary Arbitration and Voluntary Arbitrator's fee. 
- 
The cost of Voluntary Arbitration including the Voluntary Arbitrator's fee shall be borne by 
the specjal voluntary arbitration fund to be supplemented by the appropriations of the budget of 
the Board, if necessary. The fixing of the fee of Voluntary Arbitrators or panel of Voluntasy 
Arbitrators, to be determined by the Board shall take into account the following factors: 
(a) 
Nature of the case; 
(1,) 
(c) 
(d) 
Time consumed in hearing the case; 
Profesessiond standing of the voluntary arbitrator; and 
Fees provided for in the Revised Rules of Court. (A, Art.262-B) 
TITLE VI11 
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
CHAPTER I 
STFUKES AND LOCKOUTS 
ARTICLE 271. 
Strikes, picketing and lockouts. - 
(a) It is the policy of 
the State to encourage free trade unionism and free collective bargaining. 
(b) 
Workers shall have the right to engage in concerted activities for purposes 
of collective bargaining or for their mutual benefit and protection. The right of legitimate 
labor organizations to strike and picket and of employers to lockout, consistent with the 
national interest, sliall continue to be recognized and respected. However, no labor union 
may strike and no employer may declare a lockout on grounds involving inter-union and 
intra-union disputes. 
(c) 
In cases of bargaining deadlocks, the duly certified or recognized 
ba-gaining agent may file a notice of strike or tlie employer may file a notice of lockout 
with the Department at least thirty (30) days before the intended date thereof. In cases of 
unfair labor practice, the period of notice shall be fifteen (15) days and in the absence of a 
duly certified or recognized bargaining agent, the notice of strike may be filed by any 
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1cgitiinat.e labor orgailizatioii in behalf of its members. However, in case of dismissal 
from employinent,of union officers duly elected in accordance with the union constitution 
and by-laws, which may constitute union busting where the existence of the union is 
threatened, the 15-day cooling-off period shall not apply and the union may take action 
imnedixtely. 
(cl) 
The notice must be in accordance with such implementing rules and 
rcgulations as ihe Secretary of Labor and Employment may promulgate. 
(e) 
During tlie cooling-off period, it shall be the duty of the Department to 
exert all efforts at mediation and conciliation to effect a voluntary settlement. Should the 
dispute remain unsettled until the lapse of the requisite number of days from the 
mandatory filing of the notice, the labor union may strike or the employer may declare a 
lockout. 
(f) 
A decision to declare a strike must be approved by a majority of the total 
union inembership in the bargaining unit concerned, obtained by secret ballot in meetings 
or referenda called for that purpose. A decision to declare a lockout must be approved by 
majority of the board of directors of the corporation or association or of the partners in a 
parlnership, obtained by secret ballot in a meeting called for that purpose. The decision 
shall be valid for the duration of the dispute based on substantially the same grounds 
considered when the strike or lockout vote was taken. The Department may, at its own 
initi;itive or upoii the request of any affected party, supelvise the conduct of the secret 
balloting. In every case, the union or the employer shall furnish the Department the 
results of the voting at least seven days before the intended strike or lockout, subject to 
the cooliiig-off period herein provided. 
(I$ When there exists a labor dispute causing or likely to cause a strike or 
iockoul in an enterprise engaged in providing essential services such as, hospital, 
electrical services, wzter supply and communication and transportation, the Secretary of 
Labor and Employmeiit may assume jurisdiction over the dispute and decide it or certify 
the same to the Commission for compulsory arbitration. Such assumption or certification 
shall have the effect of automatically enjoining the intended or impending strike or 
lockout as specified in the assumption or certification order. If one has already taken 
place at the time of assumption or certification, all strilcing or locked out employees shall 
immediately retun to work and the employer shall immediately resume operations and 
readmit all worlters under fie same terms and conditions prevailing before the strike or 
lockout, 'The Secretary of Labor and Employment or the Commission may seek the 
assistance of law enforcement agencies to ensure compliance with this provision as well 
as with such orders as he may issue to enforce the same. 
111 line with the national concern for and the highest respect accorded to the right 
of patients to life and health, strikes and lockouts in hospitals, clinics and similar medical 
insti;utions shall, to every extent possible, be avoided, and all serious efforts, not only by 
labor and managenleiit but government as well, be exhausted to Substantially minimize, if 
not prevent, their adverse effects on such life and health, through the exercise, however 
legitimatc, by labor of its right to strike and by management to lockout. In labor disputes 
adversely affecting the continued operation of such hospitals, clinics or medical 
institutions, it shall be the duty of the strilting union or locking-out employer to provide 
and maintain an effective skeletal workforce of medical and other health personnel, 
whose inovemeiyt and services shall be unhampered and unrestricted, as are necessary to 
iiisurc the proper and adequate protection of the life and health of its patients, most 
especially emergency cases, for the duration of the strike or lockout. In such cases, 
tberefore, the Secretary of Labor and Employment may immediately assume, within 
twcnty four (24) hours from knowledge of the occurrence of such a strike or lockout, 
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jurisdiction over the same or certify it to the Commission for compulsory arbitration. For 
this purpose, the contending parties are strictly enjoined to comply with such orders, 
prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment 
or the Commission, under paiii of immediate disciplinary action, including dismissal or 
loss of eniploymenl status or payment by the locking-out employer of backwages, 
damages and other affirmative relief, even criminal prosecution against either or botli of 
them. 
The foregoing notwithstanding, the President of the Philippines shall not be 
precluded &om determining the enterprises that, in his opinion, are engaged in providing 
essentkal services and froin intervening at any time and assuming jurisdiction over any 
labor dispute in such enterprises in order to settle or terminate the same. 
(h) 
Before or at any stage of the compulsory arbitration process, the parties 
may opt to submit their dispute to voluntary arbitration. At the instance of a union or an 
employer who has talceii all the required steps for the declaration of a strike or a lockout 
respectively, in lieu of said union actually going on strike or such employer actually 
declaring a lockout, either party may request the Secretary of labor and Employment to 
assume jurisdiction over the labor dispute. 
(i) 
The Secretary of Labor and Employment, the Commission or the 
voluntary arbitrator or panel of voluntary arbitrators shall decide or resolve the dispute 
within thiity (30) caiendar days from the date of the assumption of jurisdiction or the 
certification or submission of the dispute, as the case may be. The decision o f  the 
President, the Secretary of Labor and Employment, the Commission or the voluntary 
arbitrator or panel o f  voluntary arbitrators shall be final and executory ten (10) calendar 
days after receipt thereof by the parties. (Ar1.263-a) 
ARTICLE 272. 
Prohibited activities. - 
(a) No labor organization or employer 
shall declare a strike or lockout without first having bargained collectively in accordance with 
Title V1I of this Book or without first having filed the notice required in the preceding Article or 
without the necessary strike or loclcout vote first having been obtained and reported to the 
Departin en t. 
No strike or loclwnt shall be declared after assumption of jurisdiction by the President or 
the Secretary or"aker certification or submission of the dispute to compulsory or volnntary 
arbj.iration or cluring the pendency of cases involving the same grounds for the strike or lockout. 
Any worker whose employment has been terminated as a consequence of an unlawfd 
lockout shall be entitled to reinstatement with full backwages. Any union officer who knowingly 
parkipales in an illegal strike and any worker or union officer who knowingly participates in the 
commission of illegal acts during a strike may be declared to, have lost his employment right: 
Provided, That inere participation of a worker in a lawful strike shall not constitute sufficient 
ground for termination of his employment, even if a replacement had been hired by the employer 
cluring such lawful strike. 
(b) 
No person shall obstruct, impede or interfere with by force, violence, coercion, 
threats or intiinidation any peaceful picketing by employees during any labor controversy or in 
the exercise of the right of self-organization or collective bargaining or shall aid or abet such 
ohstruclion or intcrfexence. 
(c) 
No employer shall use or employ any strike-breaker nor shall any person be 
employed as a strike-breaker. 
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(d) 
No public official or employee, including officers and personnel of the New 
Aimed Forces of the Philippines or the Integrated National Police, or armed persons, shall brilig 
in, introduce or escort in any manner, any individual who seeks to replace strikers in entering or 
leaving the premises of a strike area, or work in place of the strikers. The police force shall keep 
out of the picket lines unless actual violence or other criminal acts occur therein: Provided, That 
nothing herein shaII be interpreted to prevent any public officers fyom talcing any measure 
necessayy to niaintain peace and order, protect life and property, and/or enforce the law and legal 
order. 
(e) 
No person engaged in picketing shall commit any act of violence, coercion or 
intimidation or obstruct the free ingress to or egress from the employer's premises for lawful 
purposcs, or obstruct public thoroughfares. Provided, however, that the exercise of bee ingress to 
or egress froin the employers' premises shall not be used to take out company's products, 
iiiacliineries and equipment or to bring in new employees for the operation of the company. 
0 
The National Labor Relations Commission shall have the power to enjoin or restrain 
any actual or threatened commission of any or all prohibited or unlawful acts or to require the 
per:foimance of a particular act in any labor dispute which, if not restrained or performed 
forthwith, may cause grave or irreparable damage to any party: Pvovided, That no temporary or 
permanent injunction in any case involving or growing out of a labor dispute as defined in this 
Code shall he issued except after hearing the testimony of witnesses, with opportunity for cross- 
examination, in support of the allegqtions of a complaiiit made under oath, and testimony in 
opposition thereto, if offered, and only after a finding of fact by the Commission, to the effect 
(1) 
That prohibited or unlawful acts have been threatened and will be committed and 
will be continued uiless restrained, or have been committed and will be continued uiless 
restrained, but 110 injunction or temporary restraining order shall be issued on account of any 
threat, prohibited or uiilawftil act, except against the person or persons, association or 
organimtion making the threat or committing the prohibited or unlawful act or actually 
auihol-izing or ratifying the same after actual knowledge thereof; 
(2) 
(3) 
That substantial and irreparable injury to complainant's propevty will follow; 
That, as to each item of relief to be granted, greater injury will be inflicted upon 
complainant by the denial of relief than will be inflicted upon defendants by the granting of 
reliec 
(4) 
(5) 
That complainant has no adequate remedy at law; and 
That the public officers charged with the duty to protect complainant's property 
are unable or ~mwilling to furnish adequate protection. 
Such hearing shall be held after due and personal notice thereof has been served, in such 
iiianncr as tlie Commission shall direct, to all laown persons against whom relief is sought, aid 
also to the Chief Executive and other public officials of the province or city within which the 
unlawful acts have been threatened or committed charged with the duty to protect complainant's 
property: Provided, however, That if a complainant shall also allege that, unless a temporary 
restrainiiig order shall be issued without notice, a substantial and irreparable injury to 
complainant's property will be unavoidable, such a temporary restraining order may be issued 
upon testimony under oath, sufficient, if sustained, to justify the Commission in issuing a 
temporary injunction upon hearing after notice. Such d temporary restraining order shall he 
effective €or no longer than twenty (20) days and shall become void at the expiration of said 
twenty (20) days. No such temporary restraining order or temporary injunction shall be issued 
except on condition that complainant shall first file an undertaking with adequate security in a11 
amount to be fixed by the Commission sufficient to recompense those enjoined for any loss, 
expcnse or damage ca~ised by the improvident or erroneous issuance of such order or injunction, 
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including all reasonable costs, together with a reasonable attorney's fee, and expense of defense 
against the order or against the granting of any injunctive relief sought in the same proceeding 
and subsequently denied by the Commission. 
'The undei-taliing lierein mentioned shall be understood to constitute an agreement entered 
into by the complainant and the surety upon which an order may be rendered in the same suit or 
proceeding against said complainant and surety, upon a hearing to assess damages, of which 
hearing coinplainait and surety shall have reasonable notice, the said complainant and surety 
submitting themselves to the jurisdiction of the Cornmission for that purpose. But nothing herein 
contained shall deprive any party having a claim or cause of action under or upon such 
unclerklcing from electing to pursue his ordinary remedy by suit at law or in equity: Provided, 
fuitlier, That the reception of evidence for the application of a writ of injunction may be 
delegated by thc Commission to any of its Labor Arbiters who shall conduct such hearings in 
such places as he may determine to be accessible to the parties and their witnesses and shall 
submil thereafter his reconmiendation to the Commission. (Art.264-a) 
ARTICLE 273. 
Improved offer balioting. - In an effort to settle a strike, the 
Department of Labor and Employment shall conduct a referendum by secret balloting on the 
improved offer of the employer on or before the 15th day of the strike. When at least a majority 
of the union members vote to accept the improved offer, the striking worlters shall immediately 
return to work and the employer shall thereupon readmit them upon the signing of the agreement. 
In vase o f  a lockout, the Department of Labor and Employment shall also conduct a 
referendum by secret balloting on the reduced offer of the union on or before the 30th day of Ihe 
lockout. When at least a majority of the board of directors or trustees or the partners holding the 
controlling interest in the case of a partnership vote to accept the reduced offer, the workers shall 
imniediately return to work and the employer shall thereupon readmit thein upon the signing of 
the agreement. 
TITLE VI11 
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TMDE UN'lON ACTIVITIES 
CHAPTER I1 
ASSISTANCE TO LABOR ORGANIZATIONS 
ARTICLE 274. 
Assistance by the Department of Labor and Employment. - 
'The Department of Labor and Employnient, at the initiative o f  the Secretary of Labor and 
Employment, shall extend special assistance to the organization for purposes of collective 
bargaining o f  the most underprivileged worlsers who, for reasons of occupation, organizatioinl 
skncturc or insufijcient incomes are not normally covered by major labor organizations or 
fCdera1;ons. 
ARTICLE 275. 
Assistance by the Institute for Labor and Manpower Studies. 
- 
The Institute for Labor and Manpower Studies shall render technical and other forms of 
assistance to labor organizations and employer organizations in the field of labor education, 
especially pertaining to collective bargaining, arbitration, labor standards and the Labor Code of 
the J-'hiiippines in general. (Section 20 ofE.0.126-a) 
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TITLE VIII 
STRXICES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
CHAPTER 111 
FOREIGN ACTIVITIES 
ARTICLE 276. 
Prohibition against aliens; exceptions. - 
All alien, natural or 
j tiridicai, as well as all foreign organizations are strictly prohibited from engaging directly or 
indirectly in aJl forms of trade union activities without prejudice to normal contacts between 
Philippine labor uiiions aid recognized international labor centers: Provided, however, That 
aliens working in the couiitry with valid perniits issued by the Deparhnent of Labor and 
Employment may exercise the right to self-organization and join or assist labor organizations of 
heir own choosing for purposes of collective bargaining: Provided, further, That said aliens are 
nationals of a country which grants the same or similar rights to Filipino workers. 
AIXTXCLE 277. 
Regulation of foreign assistance. - 
(a) 
No foreign individual, 
orgaiization or entity may give any donations, grants or other forms of assistance, in cash or in 
kind, direcily or indirectly, to any labor organization, group of workers or any auxiliary thereof, 
such as cooperatives, credit unions and institutions engaged in research, education or 
communication, in relation to trade union activities without prior permission by the Secretary of 
L ~ J o ~  
and Eniployment. 
"Trade union activities" shall mean: 
(1) 
(2) 
(3) 
(4) 
organization, formation and administration of labor organizations; 
negotiation and administration of collective bargaining agreements; 
all forms o1concerted union action; 
organizing, inanaging or assisting union conventions, meetings, rallies, referenda, 
teach-ins, scminars, conferences and institutes; 
(5) 
any forin of participation or involvement in representation proceedings, 
representiation electioiis, consent elections, union elections; and 
(6) 
(b) 
other activities or actions analogous to the foregoing. 
This prohibition shall equally apply to foreign donations, grants or other forms of 
assistance, in cash or in kind, given directly or indirectly to any employer or employer's 
organization to support any activity or activities affecting trade unions. 
(c) 
The Secretary of Labor and Employment shall promulgate rules and regulations to 
regulate and control the giving and receiving of such donations, grants, or other forms of 
assistance, including the mandatory reporting of amounts of donations or grants, the specific 
recipients thereof, the projects or activities proposed to be supporled and their duration. 
ARTICLE 278. Applicability to farm tenants and rural workers --- The provisions 
ofthis Titie pertaining to foreign organizations and activities shall be deemed applicable to a11 
organizations of farm tenants, rural workers and the like, provided that in appropriate cases the 
Secretary of Agrarian Reform shall exercise the powers and responsibilities vested by this Title 
in the Secretary oELabor and Employment. 
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TITLE VI11 
STllMES AND LOCKOUTS AND FOREIGN INVOLVEMENT 
IN TRADE UNION ACTIVITIES 
CHAPTER IV 
PENALTIES FOR VIOLATION 
ARTICLE 279. 
Penalties. - 
(a) Any person violating any of the provisions of 
Article 264 of this Code shall be punished by a fine of not less than ten thousand pesos (910, 
000.00) nor more than one hundred thousand pesos (9100, 000.00) and/or imprisonment for not 
less than three (3) years nor more than six (6) yeas, or both such fine and imprisonment, at the 
discretion of the court. Prosecution under this provisioii shall preclude prosecution for the sanie 
act under the Revised Penal Code, and vice versa. 
(b) 
Upon the recommendation of the Secretary of Labor and Employment and the 
Secretary of Na~onal Defense, foreigners who violate the provisions of this Title shall be subject 
to immediate and summay deportation by the Commission on Immigration and Deportation and 
shall be permanently barred fiom re-entering the country without the special permission of the 
President offhe Philippines. 
TITLE IX 
SPECIAL PROVISIONS 
AR'TJCLE 280. 
Study o f  labor-management relations. - 
The Secretary of Labor 
and Employment shall have the power and it shall be his duty to inquire into: 
(a) 
(b) 
The existing relations between employers and employees in the Philippines; 
The growth of associations of employees and the effect of such associations upon 
employer-employee relations; 
(c) 
The extent and results of the methods of collective bargaining in the 
determination of terms and conditions of employment; 
(d) 
The methods, which have been tried by employers and associations of employees 
for maintaining mutually satisfactory relations; 
(e) 
Desirable industrial practices which have been developed through collective 
ba:gaining for settling differences; 
(f) 
The' possible ways of increasing the usefulness and efficiency of collective 
bargaining for settling differences; 
(g) 
The possibilities for the adoption of practical and effective methods of labor- 
management cooperation; 
(11) 
Any other aspects of employer-employee relations concerning the promotion of 
hamony and understanding between the parties; and 
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54 
5s 
91 
L.1 
(i) 
The Secretary of Labor and Employment shall also inquire into the causes of industrial 
unrest and take all the necessary steps within his powers as may be prescribed by law to alleviate 
ilie same, and shall froin time to time recomtne'nd the enactment of such remedial legislation as 
in his judgment may be desirable for the maintenance and promotion of industrial peace. 
The relevance of labor laws and labor relations to national developinent, 
ARTICLE 281. 
Miscellaneous provisions. - (a) The Secretary of Labor and 
13mployinent and the Secretary of the Budget shall cause to be created or reclassified in 
accordance with law such positions as may be necessary to carry out the objectives of this Code 
and cause the upgrading of the salaries of the personnel involved in the Labor Relations System 
of the Department. Funds needed for this purpose shall be provided out of the Special Activities 
Fund appropriated by Batas Pambansa Blg. 80 and from annual appropriation thereafter. 
A Special Voluntary Arbitration Fund is hereby established in the Board to 
subsidize the cost of voluntary arbitration in cases involving the interpretation and 
irnplenienlatio~i of the Collective Bargaining Agreement, including the Arbitrator's fees, and for 
such other related purposes to promote and develop voluntary arbitration. The Board shall 
administer the Special Voluntary Arbitration Fund in accordance with the guidelines it may 
adopt upon the recommendation of the Council, which guidelines shall be subject to the approval 
of the Secretary of Labor and Employment. Continuing funds needed for this purpose in the 
initial yearly amount offifken million pesos (@15,000,000.00) shall be provided in the 1989 and 
sc.ibsequen1 annual General Appropriations Acts. 
(1)) 
The amount of subsidy in appropriate cases shall be determined by the Board in 
accordance with established guidelines issued by it upon the recommendation of the Council. 
The Fund shall also be utilized for the operation of the Council, the training and 
education of Voluntary Arbitrators, and the Voluntary Arbitration Program. 
(c) 
The Department of Labor and Employment shall help promote and gradually 
develop, with, the agreement of labor organizations and employers, labor-management 
cooperation programs at appropriate levels o f  the enterprise based on shared responsibility and 
mutual respect in order to ensure industrial peace and improvement in productivity, worlting 
conditions and the quality of working life. 
,t * 
(d) 
In establishments where no legitimate labor organization exists, labor- 
Innnagenlent committees may be formed voluntarily by workers and employers for the puipose 
of' promoting industrial peace. The Department of Labor and Employment shall endeavor to 
enlighten and educate the workers and employees on their rights and responsibilities through 
labor education with emphasis on the policy thrusts of this Code. (Art.277-a) 
SE:CTXON 7. 
BOOK SIX 
POST EMPLOYMENT 
TITLE I 
TERMINATION OF EMPLOYMENT 
ARTICLE 282. 
Coverage. - The provisions of this Title shall apply to all 
establishments or undertakings, whether for profit or not. 
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A12TICLE 283. Security of Tenure. -- No employer shall terminate the services of 
an employee except for a just cause or when authorized by this Title. A regular employee 
'~~110 is dismissed 
from work without just or authorized cause shall be entitled to 
reinstatemerit wtthout loss of seniority rights and otlier privileges and to his full backwages, 
iiiclusive of allowances, and to his other benefits or their monetary equivalent computed 
from the lime his 
compensation was withheld from him up to the time of his actual 
reinstatement. If the employee illegally dismissed is temporary, he shall be entitled to a f~iiil 
salary for the unexpired portion of the agreed period and unpaid benefits. In every case of illegal 
dismissal or termination the employer is liable for damages and litigation costs. 
The term "employer" includes a contractor or subcontractor. (Art.279-a) 
AXiTXCLE 284. 
Regular and Temporary Employment. -- The provisions 
of 
writteii agreenieiit to the contrary notwithstanding and regardless of the oral agreement of the 
padies, an employmelit shall be deemed to be regular or for an indefinite period where the 
employee has been engaged to perfom activities which are usudly necessary or desirable in the 
 LEU^ business or track of the employer. 
Einployment is iemporary or for a definite period and may be terminated at the end of the 
period, where the employment has been fixed for a specific project or undertaking the 
completion or termination of which has been determined at the time of the engagement of the 
employee; where the work or services to be performed is seasonal in nature and the 
einployment is for the duration of the season; or where both the employer and the employee 
Ireely md ltnowingly enter into a term employment contract in view of the temporary nature of 
the task o~,job. 
The requirements of law intended to protect security of tenwe and the exercise of the 
right to self-organization are applicable to regular as well as temporary employees for the 
duration of their employment. (Art.280-a) 
ARTICLE. 285. Probationary employment. -- Regardless ofthe nature of the work to 
be performed, probationary employment shall not exceed six (6) months from the first day of 
seivice for all workers, including teachers in both the public and private schools. Any stipulation 
to the contrary shall be void. 
The services of an employee who has been engaged on a 
probationary basis may be terminated for a just cause or when he fails to qualify as a regular 
employee in accordance with reasonable standards made known by the employer to the 
employee at the time of his engagement. 
An employee who is allowed to work after a 
probationary period whether broken or not shall be considered a regular employee. (Art.28 1-a) 
ARTICLE 286. 
Termination by employer.-- An employer may terminate an 
ernploymeiit for any oftlie following causes: 
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of 
his employer or representative in connection with his work; 
(13) Gross and habitual neglect by the employee of his duties; 
(c) 
Fraud or willful breach by the employee of the trust reposed in him by his 
eniployer or duly authorized representative; 
(d) Commission of a crime or offense by the employee against (he person of his 
employer or any immediate member of his family or his duly authorized representative; and 
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Subject to the constitutional right of worlcers to security of tenure and their right to be 
protected against dismissal except for a just and authorized cause and without prejudice to 
the requirement of notice under Article 287 of this Code the employer shall furnish the 
w o k x  whose eniployment is sought to be terminated a written notice containing a statement of 
the causes for termination and shall afford the latter ample opportunity to be heard and to 
d e h d  himself with h e  assistance of his representative if he so desires in accordance with 
company rules and regulations proinulgated pursuant to guidelines set by the Department of 
Labor and Employment. Any decision taken by the employer shall be without prejudice to the 
right of the worker to contest the validity or legality of his dismissal by filing a complaint with 
the rcgional branch of tlie National Labor Relations Commission. The burden of proving that the 
terriiination was for a valid or authorized cause sl~all rest on the employer. The Secretary of 
the Departnieiit of Labor and Eniployment may suspend the effects of the termination pending 
resolution of the dispute in the event of a prima facie finding by the appropriate official of the 
Department of Labor and Employment before whom such dispute is pending that the 
terniiimtion may cause a serious labor dispute or is in implementation of a mass lay-off. 
(Art.282-A) 
ARTICLE 287. Closure of establishment and reduction of personnel. -- The 
employer may also terminate the employment of any employee due to the installation of labor 
saving devices, redundancy, retrenchment to prevent losses or the closing or cessation of 
operation of the establishment or undertaking unless the 
for the purpose of 
circumventing the provisions of this Title, by serving a written notice on the workers and tlie 
Department of Labor and Employment at least two (2) months before the intended date thereof. 
In m y  o f  these cases, the worker affected thereby shall be entitled to a separation pay equivalent 
to at least one (1) month pay or to at least one (1) month pay for every year of service, whichever 
is higher. In case of retrenchment to prevent losses and in cases of closures or cessation of 
operations G? establishment or undertaking not due to serious business losses or financial 
reverses, the separation pay shall be equivalent to a minimum of one (1) month pay for every 
year of service. A fraction of at least six (6) months shall be considered one (1) whole year. 
dosing is 
Ketreiichrnent requires proof of actual losses or declining revenues of substantial 
proportion. (Art.283-a) 
ARTICLE. 288. Disease as ground for terminatiou. - An employer may terminate the 
senices of 'an employee who has been found to be suffering from any disease and whose 
continued employment is prohibited by law or is prejudicial to his health as well as to the health 
of his co-employees, as certified to by the company physician or a physician of the Employee's 
Compensation Cornniission or the Social Security System; Provided, That he is paid separation 
pay equivalent to at least one (1) month salary or to one-half (VZ) month salary for every ye= of 
service, whichever is greater, a fraction of at least six (6) months being considered as one (1) 
whole year. (Ait.284-a) 
ARTXCLE 289. 
Termination by employee. - (a) An employee may terminate 
without just cause the employee-employer relationship by serving a written notice on the 
employer at least one month in advance. The employer upon whom no such notice was served 
may hold the employee liable for damages. 
(b) 
An employee may put an end to the relationship without serving any notice on the 
employer for any of the following just causes: 
(1) 
Serious insult by the employer or his representative on the honor and person of 
the employee; 
(2) 
Inhuman and unbearable treatment accorded the employee by the employer or his 
representative; 
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I., 
3 3 
(3) 
Commission of a crime or offense by the employer or his representative against 
the person of the employee or any ofthe immediate members of his family; and 
(4) 
ARTXCLE 290. 
Other causes analogous to any of the foregoing. 
When employment not deemed terminated. - 
The bona fide 
suspension of the operation of a business or undertaking for a period not exceeding six months, 
or the fulfillment by the employee of a military or civic duty shall not terminate employment. In 
all sucli cases, the employer shall reinstate the employee to his former position without loss of 
seniority rights if he indicates his desire to resume his work not later than one month from the 
resumption of operations of his employer or from his relief from the military or civic duty. 
ARTICLE 291. 
Merger or consoIidatioii of employer corporations. - Where two 
(2) or more corporations merge or consolidate into a single corporation, the surviving or 
consolidaied corporation sliall be responsible for all the liabilities and obligations of each of the 
constituent corporations in the same manner as if such surviving or consolidated corporation had 
itself incurred such liabilities or obligations. Any pending claim, action or proceeding brought 
by the employees against any of such constituent corporations may be prosecuted against the 
surviving or consolidated corporation. The rights of employees, including those arising from 
collective bargaining agreements, their security of tenure and seniority rights, or any of such 
constituent corporations shall continue to be respected by the surviving or consolidated 
corporation, and not be impaired by such merger or consolidation.. 
In the case of a merger of corporations, each o f  which has an exclusive bargaining agent, 
ihe exclusive hargdining agent of the surviving corporation shall be the exclusive bargaining 
agent of all the employecs o f  the merged bargaining units. In the case of a consolidation of 
corporations, each of' which has an exclusive bargaining agent, the exclusive bargaining agent at 
thc consolidated bargaining units shall be determined by certification elections. (n) 
TITLE I1 
RETIREMENT FROM THE SERVICE 
ARTl.CLE 292. 
Retirement. - 
Any employee may be retired upon reaching the 
retirement age established in the collective bargaining agreement or other applicable 
employment contract. 
11.1 case of retirement, the employee shall be entitled to receive such retirement benefits as 
he may have earned under existing laws and any collective bargaining or other agreements: 
Provided, however, That an employee's retirement benefits under any collective bargaining and 
other agreements shall not be less than those provided herein. 
In the absence o f  a retirement plan or agreement providing for retirement benefits of 
einployces in the eslablislnnent, an employee upon reaching the age of sixty (60) years or more, 
but not beyond sixly-five (65) years which is hereby declared the compulsory retirement age, 
who has served at least five (5) years in the said establishment, may retire and shall be entitled to 
reiirenicnt pay equivalent to at least one-half (1/2) month salary for every year of service, a 
fraction of' at least six (6) months being considered as one whole year. 
Unless the parties provide for broader inclusions, the term "one half (1/2) month" salary 
shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash 
equivalent of not more than five (5) days of service incentive leaves. 
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J 3 
Retail, service and agricultural establishments or operations employing not more than ten 
(10) employees or workers are exempted from the coverage ofthis provision. 
Violation of this provision is hereby declared unlawful and subject to the penal 
provisions under Article 293 of this Code. 
SECTION 8. 
BOOK SEVEN 
Transitory and Final Provisions 
TITLE 1 
Penal Provisions and Liabilities 
ARTICLE 293. 
Penalties. - 
Except as otherwise provided in this Code, or unless 
the act complained of hinges on a question of interpretation or implementation of ambiguous 
provisions of an existing collective bargaining agreement any violation of the provisions of this 
Code declared to be unlawfd or penal in nature shall be punished With a fine of not less than 
One Thousand Pesos (2&1,000.00) nor more than Ten Thousand Pesos (MO,OOO.OO), 
or 
imprisonnient of not less than three months nor more than three years, or both such fine and 
imprisonment at the discxetion of the court. 
In adclition lo such penalty, any. alien found guilty shall be summarily deported upon 
completion of service of sentence. 
Any provision of law to the contrary notwithstanding, any criminal offense punished in 
this Code shall be under the concurrent jurisdiction of the Municipal or Regional Trial Court. 
ARTICLE 294. 
Who are liable when committed by other fhan natural person. 
-- 
If the offense is coinmitted by a corporation, trust, firm, partnership, association or any other 
entity, the penalty shall be imposed upon the guilty officer or officers of such corporation, trust, 
firm, pailnership, association or entity. 
TITLE I1 
Prescription of Offenses and Claims 
Offenses. - 
Offenses penalized under this Code and the rules and 
ARTICLE 295. 
regulations issued pursuant thereto shall prescribe in three years. 
All unkir labor practices arising from Book V shall be filed with the appropriate agency 
within one year from accrual of such unfair labor practice; otherwise, they shall be forever 
barred, 
AlITICLE. 296. Money Claims. - All money claims arising from employer-employec 
relations shall be filed within five (5) years from the time the cause of action accrued, otherwise 
they shall fool-ever be barred. 
Employee dismissal actions shall prescribe in four (4) years. (Art.291-a) 
ARTICLE 297. 
Institution of money claims. - 
Money claims specified in the 
immediately preceding Article shall be filed before the appropriate entity independently of the 
criminal action that may be instituted in the proper courts. 
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Pending the final determination of the merits of money claims filed with the appropriate 
entity, no civil action arising from the same cause of action shall be filed with any cout. This 
provision shall not apply to employees’ compensation cases, which shall be processed and 
determined strictly in accordance with the pertinent provisions of this Code. 
TITLE ID 
Transitory and Final Provisions 
ARTICLE 298. 
Application of law enacted prior to this Code. - 
All actions or 
claims accruing prior to the effectivity of this Code shall be determined in accordance with the 
lawis in force at the time of their accrual. 
SrlCTI’ON 9. Autlxosily to Issue Rules -- The Department of Labor and Employment shall 
promulgate the necessary rules and regulations to implement the provisions of this Code. 
SECTION 10. Separability clause --- Ir any provision or part thereof, or the application 
thereof to any person or circumstances, is held invalid, the remainder, or the application of such 
provision or part to other persons or circumstances, shall not be affected thereby. 
SECTION If. Rcpeaiiiig clause --- Presidential Decree No. 442, otherwise h o w n  as the 
Labor Code of the Philippines is hereby repealed. All provisions of existing laws, executive 
orders, decrees, rules and regulations or any part thereof, which are contrary to or inconsistent 
with the provisions ofthis Code are hereby repealed, amended or modified accordingly. 
Appsovecl. 
92