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Republic of the Philippines od oO]
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

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Twentieth Congress
First Regular Session

HOUSE BILL No39.76

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
PROVIDING FOR THE REVISED LABOR CODE OF THE PHILIPPINES

EXPLANATORY NOTE

The Labor Code of the Philippines, first promulgated under Presidential Decree No. 442 in 1974,
hhas undergone piecemeal amendments over the decades. These amendments—ranging from
provisions on night workers, contracting, minimum wage setting, and migrant workers’
protection—have left the law fragmented, difficult to navigate, and at times outdated relative to
international labor standards.

This proposed Revised Labor Code consolidates and systematizes these reforms while introducing
key innovations that reflect contemporary realities of work. Among its major reforms are:

1, Expanded Equality and Non-Discrimination Provisions. The draft codifies
comprehensive anti-discrimination protections in employment, explicitly covering race,
gender identity, sexual orientation, sex characteristics, marital status, disability, age,
religion, and other statuses. It prohibits stipulations against marriage and strengthens
safeguards for women workers, part-time workers, and workers with family
responsibilities.

2. Modernization of Recruitment and Employment Regulation. It introduces stricter rules
on illegal recruitment and large-scale economic sabotage, clearer standards for private
recruitment agencies, higher capitalization and bonding requirements, mandatory
reporting, and expanded prohibitions on government officials engaging in recruitment. It
also institutionalizes the role of the Department of Migrant Workers alongside the
Department of Labor and Employment.

3. Overseas Employment and Migrant Workers’ Rights. The Code affirms that overseas
employment is not a substitute for national development, requires continuous creation of
local employment opportunities, and incorporates stronger mandatory remittance



provisions and deployment bans when public welfare requires. It adopts the substantive

and regulation of part-time work, home-based work, and industrial homework, establ
clear standards for wages, benefits, and protections for workers in these arrangements.

5. Updated Standards on Conditions of Work. The Code expands definitions of working
hours, rest periods, overtime, holidays, and service charges to cover part-time and flexible
work arrangements. It provides stronger protections for pregnant and nursing workers,
mandates lactation stations and facilities, and integrates gender-sensitive criteria across
conditions of work.

6. Strengthened Wage and Productivity Mechanisms. The bill transforms the Regional
Tripartite Wages and Productivity Boards into national industry-based boards under a
stronger National Wages and Productivity Commission, enabling industry-specific
minimum wages and wage-setting responsive to regional circumstances, while preserving
freedom to bargain above statutory levels.

7. Reinforced Enforcement and Compliance Powers. It grants broader visitorial and
enforcement authority to the Department of Labor and Employment, including compliance
orders, stoppage of work for safety, and stricter penalties for non-compliance.

8. Expanded Social Protection and Compensation. The Code strengthens the Employees’
Compensation Program, extends coverage to informal sector workers and migrant workers,
modernizes the State Insurance Fund, and institutionalizes rehabilitation programs for
occupationally disabled workers.

i 'd Dispute Resolution Reform. It creates the Court of Labor Relations under

n of the Supreme Court, replacing the National Labor Relations Commission,

ize labor adjudication. It streamlines procedures for
mediation, arbitration, voluntary arbitration, and grievance machinery to ensure speedy and
fair resolution of

10. Comprehensive Gender Equality Chapter. It institutionalizes annual reviews of pay

structures to eliminate gender-based pay gaps, mandates workplace gender focal point
committees, integrates gender-sensitivity training in both management and unions, and
aligns with the Safe Spaces Act and the Convention on the Elimination of All Forms of
Discrimination Against Women.

. Post-Employment and Security of Tenure. It clarifies categories of regular, casual,
probationary, and project-based employment, strengthens protections against unjust
dismissal, and expands grounds for employee-initiated termination in cases of sexual

violence or similar abuses.

Taken together, these reforms create a coherent, modemized, and accessible framework for labor
relations in the Philippines. They reaffirm the constitutional mandate that labor is a primary social


and economic force, entitled to full protection, just and humane conditions of work, and
participation in decision-making.

‘The passage of this measure will modernize Philippine labor law for the 2Ist century, harmonize
it with international commitments, and strike a fair balance between protecting workers’ rights and

fostering sustainable enterprise growth.

In view of the foregoing, the passage of this measure is earnestly sought.

RIAN E. SALCEDA


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL No. 3878

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
PROVIDING FOR THE REVISED LABOR CODE OF THE PHILIPPINES

Be it enacted by the Senate and House of Representatives in Congress assembled:

PRELIMINARY TITLE
Chapter I
GENERAL PROVISIONS

Art. 1, Name of the Code. This Code shall be known as the "REVISED Labor Code of the
Philippines". (1)

Art. 2. Date of Effectivity. This Code shall take effect six (6) months after its promulgation
PUBLICATION IN TWO (2) NEWSPAPERS OF GENERAL CIRCULATION. (2)

Art. 3. Declaration of Basic Policy. The State shall afford FULL protection to labor, LOCAL
AND OVERSEAS, ORGANIZED AND UNORGANIZED, and promote full employment;ensure

workers-and-employers-AND EQUALITY OF EMPLOYMENT OPPORTUNITIES FOR ALL.


‘Fhe State IT shall-assureGUARANTEE 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, and-just-and humane conditions of work, AND A LIVING
WAGE. THEY SHALL ALSO PARTICIPATE IN POLICY AND DECISION-MAKING
PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS AS MAY BE PROVIDED BY
LAW.

THE STATE SHALL PROMOTE THE PRINCIPLE 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 RIGHT OF LABOR TO SHARE IN THE FRUITS OF
PRODUCTION AND ENTERPRISES, TO PROFITS, EXPANSION AND GROWTH. (3a)

Art. 4, Construction in Favor of Labor. All doubts in the implementation and interpretation of
the provisions of this Code, including its implementing rules and regulations AS WELL AS IN
LABOR CONTRACTS, shall be resolved in favor of labor. (4a)

Art. 5. Rules and Regulations. The Department of Labor AND EMPLOYMENT (DOLE) and
other goverment 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 TWO
(2) newspapers of general circulation AND AFTER COMPLYING WITH THE FILING
REQUIREMENT WITH THE OFFICE OF THE NATIONAL ADMINISTRATIVE REGISTER;
OTHERWISE, THE RULES CANNOT BECOME THE BASIS OF ANY SANCTION
AGAINST ANY PARTY OR PERSONS. (5a)


Art. 6. Applicability. All rights and benefits granted to workers under this Code shall, except as

may otherwise be provided herein, apply alike to all workers, whether agricultural or non-
agricultural. (6) (As amended by Presidential Decree No. 570-A, November 1, 1974)

Chapter II

EMANCIPATION OF TENANTS EQUALITY AND NON-DISCRIMINATION

ART. 7. DISCRIMINATION.

(1) THE STATE SHALL PURSUE A NATIONAL POLICY DESIGNED TO PROMOTE, BY
METHODS APPROPRIATE TO NATIONAL CONDITIONS AND PRACTICE,
EQUALITY OF OPPORTUNITY AND TREATMENT IN RESPECT OF EMPLOYMENT.
AND OCCUPATION, WITH A VIEW TO ELIMINATING ANY DISCRIMINATION IN
RESPECT THEREOF.

FOR THE PURPOSE OF THIS CODE THE TERM DISCRIMINATION INCLUDES—

(2)

(a)

(b)

ANY DISTINCTION, EXCLUSION OR PREFERENCE MADE ON THE BASIS OF
RACE, COLOR, SEX, SEXUAL ORIENTATION, GENDER IDENTITY AND
EXPRESSION, SEX CHARACTERISTICS, MARITAL STATUS, AGE,
DISABILITY, LANGUAGE, RELIGION, POLITICAL OPINION AND
PERSUASION, NATIONAL EXTRACTION OR SOCIAL ORIGIN, PROPERTY,
BIRTH, OR OTHER STATUS, WHICH HAS THE EFFECT OF NULLIFYING OR
IMPAIRING EQUALITY OF OPPORTUNITY OR TREATMENT IN
EMPLOYMENT OR OCCUPATION;

SUCH OTHER DISTINCTION, EXCLUSION OR PREFERENCE WHICH HAS
THE EFFECT OF NULLIFYING OR IMPAIRING EQUALITY OF
OPPORTUNITY OR TREATMENT IN EMPLOYMENT OR OCCUPATION AS
MAY BE DETERMINED BY THE MEMBER CONCERNED AFTER
CONSULTATION WITH REPRESENTATIVE EMPLOYERS’ AND WORKERS!
ORGANIZATIONS, WHERE SUCH EXIST, AND WITH OTHER APPROPRIATE
BODIES.


(3) ANY DISTINCTION, EXCLUSION OR PREFERENCE IN RESPECT OF A
PARTICULAR JOB BASED ON THE INHERENT REQUIREMENTS SHALL NOT BE
DEEMED TO BE DISCRIMINATION.

FOR THE PURPOSE OF THIS CODE, THE TERMS EMPLOYMENT AND OCCUPATION
INCLUDE ACCESS TO VOCATIONAL TRAINING, ACCESS TO EMPLOYMENT AND TO
PARTICULAR OCCUPATIONS, AND TERMS AND CONDITIONS OF EMPLOYMENT.

(new)

Art. 8. Discrimination Prohibited. It shall be unlawful for any employers to discriminate against
‘any-women employceS with respect to terms and conditions of employment solely on account of
her THEIR RACE, COLOR, sex, GENDER IDENTITY AND EXPRESSION, SEX
CHARACTERISTICS, SEXUAL ORIENTATION, MARITAL STATUS, AGE, DISABILITY,
LANGUAGE, RELIGION, POLITICAL OPINION AND PERSUASION, NATIONAL
EXTRACTION OR SOCIAL ORIGIN, PROPERTY, BIRTH, OR OTHER STATUS.

‘The following are acts of discrimination IF DONE ON THE BASIS OF THE CRITERIA IN THE

FIRST PARAGRAPH:

(a) ADVERTISEMENTS OR QUALIFICATION STANDARDS SHOWING DISTINCTION,
EXCLUSION OR PREFERENCE, WITH REGARD TO A PARTICULAR JOB NOT
BASED ON THE INHERENT REQUIREMENTS OF THE SAID JOB;

(b) UTILIZING STANDARDS, CRITERIA, OR METHODS OF ADMINISTRATION THAT:
1) HAVE THE EFFECT OF DISCRIMINATION; OR 2) PERPETUATE THE
DISCRIMINATION OF OTHERS WHO ARE SUBJECT TO COMMON
ADMINISTRATIVE CONTROL;

(©) @ Payment of a lesser compensation, including wage, salary or other form of remuneration
and fringe benefits, +o-¢-female-employee-as-against-a-mele- employee; for work of equal
value; and

(qd) )}Favoring DISTINGUISHING, EXCLUDING OR PREFERRING «male employeeS
overe-female-employee WITH RESPECT TO PROMOTION, with respect to promotion,
training opportunities, study and scholarship grants solely-on-aecount-of their sexes.


Criminal liability for the willful commission of any unlawful act as provided in this article or any
violation of the rules and regulations issued pursuant to -Seetion-2-hereef ARTICLE 5 shall be
penalized as provided in Articles 288-312 and 289-313 of this Code: Provided, That the institution
of any criminal action under this provision shall not bar the aggrieved employeeS from filing an
cntirely separate and distinct action for money claims, which may include claims for damages and
other affirmative reliefs. The actions hereby authorized shall proceed independently of each other.
(135a)

Art. 9, Stipulation Against Marriage. It shall be unlawful for en employerS to require as a
condition of employment or continuation of employment that e-woman employeeS shall not get
married, or to stipulate expressly or tacitly that upon getting married, a-woman employeeS shall
be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise

prejudice a-womea employeeS merely by reason of her THEIR marriage. (134a)

Art. 10, Classification of Certain omen Workers. Any-woman EMPLOYEES who is ARE
permitted or suffered to work, with or without compensation, in any night club, BAR, cocktail
lounge, massage clinic, bar; or similar establishments under the effective control or supervision of
the employerS for a substantial period of time as determined by the Secretary of Labor and
Employment (SOLE), shall be considered as an employeeS of such establishment for purposes of
labor and social legislation. (136a)

BOOK ONE
PRE-EMPLOYMENT

Title I
RECRUITMENT AND PLACEMENT OF WORKERS

CHAPTER I
GENERAL PROVISIONS


Art. 11. Statement of Objectives. CONSISTENT WITH THE NATIONAL INTEREST AND
BINDING INTERNATIONAL COMMITMENTS, it is the policy of the State TO:

(A) PURSUE AS A MAJOR GOAL, AN ACTIVE POLICY DESIGNED TO PROMOTE
FULL, PRODUCTIVE AND FREELY CHOSEN EMPLOYMENT WITH A VIEW TO.
STIMULATING ECONOMIC GROWTH AND DEVELOPMENT, RAISING
STANDARDS OF LIVING, MEETING HUMAN RESOURCE REQUIREMENTS AND
OVERCOMING UNEMPLOYMENT AND UNDEREMPLOYMENT;

a-Fe (B) Promote and maintain a state of full employment through improved manpower HUMAN
RESOURCE training, allocation and utilization, CONSISTENT WITH HUMAN RIGHTS.
COMMITMENTS, INCLUDING THE PROMOTION OF GENDER EQUALITY;

&--Fe(C) Protect every-eitizen THE RIGHTS AND DIGNITY OF CITIZENS desiring to work
Jocally or overseas, ORGANIZED OR UNORGANIZED, by securing for hims THEM the

best possible terms and conditions of employment;
e-Fe-(D) Facilitate a free choice of available employment by persons seeking work in conformity

with the national interest;

£To(E) Strengthen the network of public employment offices and rationalize the participation of

the private sector in the recruitment and placement of workers, locally and overseas;to-serve
. ives;

-Fe(F) Insure careful selection of Filipino workers for overseas employment-in-order-te-proteet

see ;

(G) CONTINUOUSLY CREATE LOCAL EMPLOYMENT OPPORTUNITIES AND
PROMOTE THE EQUITABLE DISTRIBUTION OF WEALTH AND THE BENEFITS OF
DEVELOPMENT AS A MEANS TO SUSTAIN ECONOMIC GROWTH AND ACHIEVE
NATIONAL DEVELOPMENT WHILE RECOGNIZING THE SIGNIFICANT
CONTRIBUTION OF FILIPINO MIGRANT WORKERS TO THE NATIONAL
ECONOMY THROUGH THEIR FOREIGN EXCHANGE REMITTANCES. THE
OVERSEAS EMPLOYMENT PROGRAM SHOULD REST ON THE ASSURANCE


(H)

THAT THE DIGNITY AND FUNDAMENTAL HUMAN RIGHTS AND FREEDOMS OF
FILIPINO CITIZENS SHALL NOT, AT ANY TIME, BE COMPROMISED OR
VIOLATED; AND

APPLY GENDER-SENSITIVE CRITERIA IN THE FORMULATION AND
IMPLEMENTATION OF POLICIES AND PROGRAMS AFFECTING WORKERS. (12a)

Art. 12. Definitions, AS USED IN THIS BOOK, THESE TERMS SHALL BE DEFINED AS
FOLLOWS:

(a)
(b)

©

(a)

)

1G)

“Worker” means any member of the labor force, whether employed or unemployed.
“Authority” means a document issued by the Department-of-Laber DOLE authorizing a
person or association to engage in recruitment and placement activities as a private
recruitment entity.

“License” means a document issued by the DepartmentofLabor DOLE authorizing a person
or entity to operate a private employment agency.

“Private fee-charging employment agency” means any person or entity engaged in
recruitment and placement of workers for a fee which is charged, directly or indirectly, from
the workers or employers or both.

“Private recruitment entity” means any person or association engaged in the recruitment
and placement of workers, locally or overseas, without charging, directly or indirectly, any
fee from the workers or employers.

“Recruitment and placement” refers to any act of canvassing, enlisting, contracting,

transporting, utilizing, hiring or procuring workers, and includes referrals, contract services,

promising or advertising for employment, locally or abroad, whether for profit or not:

Petite “Ub ae er promises fora foe,

WHEN ANY PERSON OR ENTITY, IN ANY MANNER, OFFERS OR PROMISES FOR
A FEE, EMPLOYMENT TO TWO OR MORE PERSONS, A PRESUMPTION IS
CREATED THAT THE PERSON IS ENGAGED IN RECRUITMENT AND
PLACEMENT.

" . ? : in maritime navigate

"Qverseas-employment™ employment ofe-worker outside the Philippines:


“Beaigrant” ¥ : herwise, .

vi
@

)

10)

c-of an immigrant-vise-or resident permit or its equivelentin-th ry of destinati
"MIGRANT WORKERS” REFERS TO FILIPINOS WHO ARE TO BE ENGAGED, ARE
ENGAGED OR HAVE BEEN ENGAGED IN A REMUNERATED ACTIVITY IN A
STATE OF WHICH THEY ARE NOT CITIZENS OR ON BOARD A VESSEL
NAVIGATING THE FOREIGN SEAS OTHER THAN A GOVERNMENT SHIP USED
FOR MILITARY OR NON-COMMERCIAL PURPOSES OR ON AN INSTALLATION
LOCATED OFFSHORE OR ON THE HIGH SEAS. A "PERSON TO BE ENGAGED IN A
REMUNERATED ACTIVITY’ REFERS TO AN APPLICANT WORKER WHO HAS
BEEN PROMISED OR ASSURED EMPLOYMENT OVERSEAS.

“GENDER EQUALITY” REFERS TO THE PRINCIPLE ASSERTING THE EQUALITY
OF EVERYONE REGARDLESS OF GENDER AND THEIR RIGHT TO ENJOY EQUAL
CONDITIONS REALIZING THEIR FULL HUMAN POTENTIALS TO CONTRIBUTE
TO AND BENEFIT FROM THE RESULTS OF DEVELOPMENT AND WITH THE
STATE RECOGNIZING THAT ALL HUMAN BEINGS ARE FREE AND EQUAL IN
DIGNITY AND RIGHTS.

“GENDER-SENSITIVE” 18 THE STATE OF KNOWING HOW SOCIAL
CONSTRUCTIONS NORMALIZE BIASES AND MARGINALIZATION ON THE
BASIS OF GENDER AND BEING ABLE TO ACT WITHOUT BIASES AND EXHIBIT
RESPECT FOR EACH AND EVERY PERSON REGARDLESS OF GENDER. IT IS
RECOGNIZING THE INEQUALITIES AND INEQUITIES PREVALENT IN SOCIETY
BETWEEN WOMEN AND MEN AND COMMITTING TO ADDRESS GENDER
ISSUES. (13a)

Art, 13. Employment Promotion. The Seeretary-of Labor SOLE shall have the power and
authority:

(a)

(b)

To organize and establish new employment offices in addition to the existing employment
offices under the Department-of Labor DOLE as the need arises;

To organize and establish a nationwide job clearance and information system to inform
applicants registering with a particular employment office of job opportunities in other parts
of the country as well as job opportunities abroad;


(©) To develop and organize a program that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation of workers from one
area to another; and

(a) To require any person, establishment, organization or institution to submit such employment
information as may be prescribed by the Seeretary-of Labor SOLE. (14a)

Art. 14. Pi
other than the public employment offices, shall engage in the recruitment and placement of

te Recruitment, Except as provided in Chapter II of this Title, no person or entity

workers. (16)

CHAPTER II

REGULATION OF ON RECRUITMENT AND PLACEMENT ACTIVITIES

Art. 15, Private Sector Participation in the Recruitment and Placement of Workers. Pursuant
to national development objectives and in order to hamess and maximize the use of private sector
resources and initiative in the development and implementation of a comprehensive employment
program, the private employment sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and regulations as may be issued by
the Seeretary-of Labor SOLE AND THE SECRETARY OF THE DEPARTMENT OF MIGRANT
WORKERS (DMW) FOR OVERSEAS EMPLOYMENT, RESPECTIVELY. (25a)

Art. 16. Travel Agencies Prohibited to Recruit. Travel agencies and sales agencies of airline
‘companies are prohibited from engaging in the business of recruitment and placement of workers

for overseas employment whether for profit or not. (26)

ART. 17. PROHIBITION ON OFFICIALS AND EMPLOYEES. OFFICIALS OR
EMPLOYEES OF THE GOVERNMENT, ITS BRANCHES, SUBDIVISIONS,
INSTRUMENTALITIES, AND AGENCIES, INCLUDING GOVERNMENT-OWNED OR
CONTROLLED CORPORATIONS WITH ORIGINAL CHARTERS OR THEIR RELATIVES,
WITHIN THE FOURTH CIVIL DEGREE OF CONSANGUINITY OR AFFINITY ARE


PROHIBITED FROM ENGAGING, DIRECTLY OR INDIRECTLY, IN RECRUITMENT AND.
PLACEMENT OF WORKERS FOR OVERSEAS EMPLOYMENT WHETHER FOR PROFIT
OR NOT. THE PENALTIES SHALL BE IMPOSED UPON THEM. (new)

Art. 18, Citizenship Requirement. Only
at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned
and controlled by Filipino

placement of workers, locally or overseas. (27)

ipino citizens or corporations, partnerships or entities

‘izens shall be permitted to participate in the recruitment and

Art. 19. Capitalization. All applicants for authority to hire or renewal of license to recruit are
required to have such-substantiol AUTHORIZED capitalization as determined-by the Secretary of
Leber FOLLOWS:

(1) FOR OVERSEAS RECRUITMENT AND PLACEMENT, A MINIMUM NET WORTH
OF TWELVE MILLION PESOS (P12,000,000.00) IN THE CASE OF SINGLE
PROPRIETORSHIPS, AND A FULLY PAID-UP CAPITAL OR NET WORTH OF
TWELVE MILLION PESOS (P12,000,000.00) IN THE CASE OF PARTNERSHIPS OR
CORPORATIONS; AND

(2) FOR LOCAL RECRUITMENT AND PLACEMENT, A MINIMUM NET WORTH OF
THREE MILLION PESOS (P3,000,000.00) IN THE CASE OF SINGLE
PROPRIETORSHIPS, AND A FULLY PAID-UP CAPITAL OR NET WORTH OF
THREE MILLION PESOS (P3,000,000.00) IN THE CASE OF PARTNERSHIPS OR
CORPORATIONS. (28a)

Art. 20. Non-Transferability of License or Authority. No license or authority shall be used
directly or indirectly by any person other than the-ene THOSE in whose favor it was issued or at
any place other than that stated in the license or authority be transferred, conveyed or assigned to
any other person or entity. Any transfer of business address, appointment or designation of any
agent or representative including the establishment of additional offices anywhere shall be subject
to the prior approval of the Department of LaborDOLE, OR DMW, RESPECTIVELY. (29a)


Art. 21, Registration Fees. The Seeretary-ofLabor-SOLE OR DMW SECRETARY shall
promulgate a schedule of fees for the registration of all applicants for license or authority. (30a)

Art. 22. Bonds. At-applicants-for-ticense-or authority shall post such-cash-and bonds

determined-by-the-Seeretary-of Labor To guarantee compliance with prescribed recruitment

procedures, rules and regulations, and terms and conditions of employment as-say-be appropriate,

ALL APPLICANTS FOR LICENSE OR AUTHORITY SHALL POST SUCH CASH AND

SURETY BONDS AS DEFERMINED-BY-THE-SECRETARY OF LABOR FOLLOWS:

(1) FOR OVERSEAS RECRUITMENT AND PLACEMENT, THE AMOUNT OF TWELVE
MILLION PESOS —(P12,000,000.00) FOR SINGLE PROPRIETORSHIPS,
PARTNERSHIPS OR CORPORATIONS; AND

(2) FOR LOCAL RECRUITMENT AND PLACEMENT, THE AMOUNT OF THREE
MILLION PESOS — (P3,000,000.00) FOR SINGLE PROPRIETORSHIPS,
PARTNERSHIPS OR CORPORATIONS. (31a)

Art. 23, NO Fees to be Paid by Workers. NO FEE OR CHARGE SHALL BE REQUIRED
FROM eay person applying with o-private-fo-sharsing ‘employment egeney AGENCIES for
employment assistance 6

schedule of aHowablefees, (32a)

Art. 24, Mandatory Remittance of Earnings. It shall be mandatory for all
abroad RECRUITED AND PLACED BY PRIVATE FEE-CHARGING EMPLOYMENT
AGENCIES OR PRIVATE RECRUITMENT ENTITIES FOR LOCAL OR OVERSEAS
EMPLOYMENT, to remit a portion of their foreign-exehange earnings to their LEGITIMATE
fami

prescribed by the Seeretary-of Labor SOLE, OR DMW SECRETARY, RESPECTIVELY. (22a)

ipino workers

s, dependents, and/or beneficiaries in the country in accordance with rules and regulations

Art. 25. Reports on Employment Status. Whenever the public interest requires-The Secretary
ef-Labor SOLE OR DMW SECRETARY may SHALL direct all persons or entities within the


coverage of this Title to submit a report on the status of employment, including job vacancies,

details of job requisitions, separation from jobs, wages, other terms and conditions and other

employment data. (33a)

CHAPTER IIL

LOCAL RECRUITMENT AND EMPLOYMENT

Art. 26. Bureau of LOCAL Employment Serviees. (a) The Bureau of LOCAL Employment

‘Services shall be primarily responsible for developing and monitoring a comprehensive LOCAL

employment program. It shall have the power and duty TO:

(1) Fo-Formulate and develop plans and programs to implement the employment promotion
objectives of this Title;

(2)Fo enh sntcin-o-sopistet
patticipation in the recruitment and placement of workers, locally and overseas;endie- secure

the_best-possible-terms-and-conditions-of employment for Filip sworkers-and

(2) ESTABLISH AND ADMINISTER A MACHINERY FOR THE EFFECTIVE
ALLOCATION OF HUMAN RESOURCES FOR MAXIMUM EMPLOYMENT AND
PLACEMENT;

(3) 6}4e Develop AND MAINTAIN a responsive vocational guidance and testing system in aid
of proper human resources allocation; and

(4) REGULATE AND SUPERVISE PRIVATE SECTOR PARTICIPATION IN THE
RECRUITMENT AND PLACEMENT OF WORKERS LOCALLY UNDER SUCH
RULES AND REGULATIONS AS MAY BE ISSUED BY THE SOLE;

(5)44)-Fo Establish and maintain a registration and/or work permit system to REASONABLY
regulate the employment of aliens NON-RESIDENT FOREIGN NATIONALS SUBJECT
TO THE PRINCIPLE OF RECIPROCITY;

(6©45)-Fe Develop AND MAINTAIN a labor market information system in aid of proper
snanpower HUMAN RESOURCE and development planning;



(7)43}Fo Formulate and- develop employment programs designed to benefit disadvantaged groups
and communities; AND
(8) PERFORM OTHER FUNCTIONS AS MAY BE PROVIDED BY LAW.

(©) (b) The Minister of Labor SOLE shall have the power to impose and collect fees based on rates
recommended by the Bureau of LOCAL Employment Services. Such fees shall be deposited in
the National Treasury as a special account of the General Fund, for the promotion of the objectives
of the Bureau of LOCAL Employment Services, subject to the provisions of Section 40 of
Presidential Decree No. 1177. (15a)

ART. 27. PUBLIC EMPLOYMENT SERVICE OFFICE. TO CARRY OUT THE
DECLARED POLICY TO PROVIDE FULL EMPLOYMENT AND EQUALITY OF
EMPLOYMENT OPPORTUNITIES FOR ALL, AND FOR THIS PURPOSE, TO
STRENGTHEN AND EXPAND THE EXISTING EMPLOYMENT FACILITATION SERVICE
MACHINERY OF THE GOVERNMENT, PARTICULARLY AT THE LOCAL LEVELS,
THERE SHALL BE ESTABLISHED IN ALL CAPITAL TOWNS AND/OR SEATS OF
GOVERNMENT OF PROVINCES, KEY CITIES, AND OTHER STRATEGIC AREAS A
PUBLIC EMPLOYMENT SERVICE OFFICE, HEREINAFTER REFERRED TO AS “PESO”,
WHICH SHALL BE COMMUNITY-BASED AND MAINTAINED LARGELY BY LOCAL
GOVERNMENT UNITS (LGUS) AND A NUMBER OF NON-GOVERNMENTAL


ORGANIZATIONS (NGOS) OR COMMUNITY-BASED ORGANIZATIONS (CBOS) AND
STATE UNIVERSITIES AND COLLEGES (SUCS), IN ACCORDANCE WITH REPUBLIC
ACT NO. 8759. THE PESOS SHALL BE LINKED TO THE REGIONAL OFFICES OF THE
DOLE FOR COORDINATION AND TECHNICAL SUPERVISION, AND TO THE DOLE
CENTRAL OFFICE, TO CONSTITUTE THE NATIONAL EMPLOYMENT SERVICE
NETWORK. (new)

CHAPTER IV
ILLEGAL RECRUITMENT AND PROHIBITED PRACTICES



IT SHALL BE UNLAWFUL FOR NON-LICENSEES OR NON-HOLDERS OF AUTHORITY
TO UNDERTAKE RECRUITMENT AND PLACEMENT CONTEMPLATED UNDER
ARTICLE 12 OF THIS CODE: PROVIDED, THAT SUCH NON-LICENSEES OR NON-
HOLDERS WHO IN ANY MANNER, OFFER OR PROMISE FOR A FEE EMPLOYMENT TO
TWO OR MORE PERSONS SHALL BE DEEMED SO ENGAGED. IT SHALL ALSO BE
UNLAWFUL TO COMMIT LIKBYHSEINGLUDE THE FOLLOWING ACTS, WHETHER
COMMITTED BY ANY PERSON, A NON-LICENSEE, NON-HOLDER, LICENSEE OR
HOLDER OF AUTHORITY:

(a) TOCHARGE OR ACCEPT, DIRECTLY OR INDIRECTLY, ANY AMOUNF-GREATER

A-LOAN-OR- ADVANCE FEE, OR TO MAKE WORKERS PAY ANY OTHER FEE;

(b) TO FURNISH OR PUBLISH ANY FALSE NOTICE OR INFORMATION OR
DOCUMENT IN RELATION TO RECRUITMENT OR EMPLOYMENT;

(c) TO GIVE ANY FALSE NOTICE, TESTIMONY, INFORMATION OR DOCUMENT OR
COMMIT ANY ACT OF MISREPRESENTATION FOR THE PURPOSE OF SECURING
A LICENSE OR AUTHORITY UNDER THIS CODE; OR FOR THE PURPOSE OF
DOCUMENTING HIRED WORKERS WITH THE POEA_DOLE OR DMW, AS THE
CASE MAY BE, WHICH INCLUDE THE ACT OF REPROCESSING WORKERS
THROUGH A JOB ORDER THAT PERTAINS TO NON-EXISTENT WORK, WORK
DIFFERENT FROM THE ACTUAL OVERSEAS WORK, OR WORK WITH A
DIFFERENT EMPLOYER WHETHER REGISTERED OR NOT WITH THE POEA
DOLE OR DMW;

(d) TO INDUCE OR ATTEMPT TO INDUCE & WORKERS ALREADY EMPLOYED TO
QUIT HIS THEIR EMPLOYMENT IN ORDER TO OFFER HIM THEM ANOTHER
UNLESS THE TRANSFER IS DESIGNED TO LIBERATE A THE WORKERS FROM
OPPRESSIVE TERMS AND CONDITIONS OF EMPLOYMENT;

(e) TO INFLUENCE OR TO ATTEMPT TO INFLUENCE AN¥ PERSONS OR ENTIFY
ENTITIES NOT TO EMPLOY AN¥ WORKERS WHO HAS HAVE NOT APPLIED FOR



(

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(h)

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EMPLOYMENT THROUGH HIS THEIR AGENCY OR WHO HAVE FORMED,
JOINED OR SUPPORTED. OR HAVE CONTACTED OR ARE SUPPORTED BY ANY
UNION OR WORKERS’ ORGANIZATION;

TO ENGAGE IN THE RECRUITMENT OR PLACEMENT OF WORKERS IN JOBS
HARMFUL TO PUBLIC HEALTH OR MORALITY OR TO THE DIGNITY OF
WORKERS OR THE REPUBLIC OF THE PHILIPPINES;

TO OBSTRUCT OR ATTEMPT TO OBSTRUCT INSPECTION BY THE SECRETARY.
OFLABOR-AND-EMPLOYMENF SOLE OR DMW SECRETARY OR BY HIS THEIR
DULY AUTHORIZED REPRESENTATIVES;

TO FAIL TO FILE REPORTS ON THE STATUS OF EMPLOYMENT, PLACEMENT
VACANCIES, SEPARATION FROM JOBS, AND SUCH OTHER MATTERS OR
INFORMATION AS MAY BE REQUIRED BY THE SECRETARY-OF LABOR-AND.
EMPLOYMENT DOLE OR DMW, AS THE CASE MAY BE;

TO SUBSTITUTE OR ALTER, TO THE PREJUDICE OF THE WORKER,
EMPLOYMENT CONTRACTS APPROVED AND VERIFIED BY THE DOLE AND
THE DMW FROM THE TIME OF ACTUAL SIGNING FHEREOF BY THE PARTIES
UP TO AND INCLUDING THE PERIODS OF EXPIRATION WITHOUT THE
APPROVAL OF THE DOLE OR DMW, AS THE CASE MAY BE DEPARFMENT-OF
LABOR-AND EMPLOYMENT,

FOR AN OFFICERS OR AGENTS OF A RECRUITMENT OR PLACEMENT AGENCY
TO BECOME AN OFFICERS OR MEMBERS_OF THE BOARD OF ANY
CORPORATION ENGAGED IN TRAVEL AGENCY OR TO BEENGAGED DIRECTLY
OR INDIRECTLY IN THE MANAGEMENT OF A TRAVEL AGENCY;

TO WITHHOLD OR—DEN¥—FRAVEL NECESSARY DOCUMENTS FROM
APPLICANT WORKERS BEFORE DERARFURE EMPLOYMENT FOR MONETARY
OR FINANCIAL CONSIDERATIONS, OR FOR ANY OTHER REASONS, OTHER
THAN THOSE_AUTHORIZED UNDER FHE-LABOR_THIS CODE AND ITS
IMPLEMENTING RULES AND REGULATIONS;

FAILURE TO ACTUALLY DEPLOY ASSIGN OR DEPLOY A—CO) ED
WORKERS WITHOUT VALID REASON AS DETERMINED BY THE DOLE OR THE
DMw;



(m) FAILURE TO REIMBURSE EXPENSES INCURRED BY THE WORKER IN
CONNECTION WITH THEIR DOCUMENTATION AND PROCESSING FOR
PURPOSES OF DEPLOYMENT, IN CASES WHERE THE DEPLOYMENT DOES NOT
ACTUALLY TAKE PLACE WITHOUT THE WORKER'S FAULT. ILLEGAL
RECRUITMENT WHEN COMMITTED BY A SYNDICATE OR IN LARGE SCALE
SHALL BE CONSIDERED AN OFFENSE INVOLVING ECONOMIC SABOTAGE;
AND

(n) TO ALLOW A NON-FILIPINO CITIZENS TO HEAD OR MANAGE A LICENSED
RECRUITMENT AGENGC¥ AGENCIES.

ILLEGAL RECRUITMENT IS DEEMED COMMITTED BY A SYNDICATE IF CARRIED
OUT BY A GROUP OF THREE (3) OR MORE PERSONS CONSPIRING OR
CONFEDERATING WITH ONE ANOTHER. IT IS DEEMED COMMITTED IN LARGE
SCALE IF COMMITTED AGAINST THREE (3) OR MORE PERSONS INDIVIDUALLY OR
AS AGROUP.

IN ADDITION TO THE ACTS ENUMERATED ABOVE, IT SHALL ALSO BE UNLAWFUL
FOR PERSONS OR ENTITIES TO COMMIT THE FOLLOWING PROHIBITED ACTS:

(1) GRANT A LOAN TO AN-OVERSEAS WORKERS WITH INTEREST EXCEEDING
EIGHT PERCENT (8%) PER ANNUM, WHICH WILL BE USED FOR PAYMENT OF
LEGAL AND ALLOWABLE PLACEMENT FEES AND OR MAKE THE WORKERS
ISSUE, EITHER PERSONALLY OR THROUGH A GUARANTORS OR
ACCOMMODATION PARFY-PARTIES, POSTDATED CHECKS IN RELATION TO
THE SAID LOAN;

(2) IMPOSE A COMPULSORY AND EXCLUSIVE ARRANGEMENT WHEREBY 4
WORKERS S$ ARE REQUIRED TO AVAIL OF A LOAN ONLY FROM
SPECIFICALLY DESIGNATED INSTITUTIONS, ENTITIES OR PERSONS;

(3) REFUSE TO CONDONE OR RENEGOTIATE A LOAN INCURRED BY & WORKERS
AFTER THE LATTER'S EMPLOYMENT CONTRACT HAS BEEN PREMATURELY
TERMINATED THROUGH NO FAULT OF HIS-OR-HER THEIR OWN;


@)

6)

(6)

”

IMPOSE A COMPULSORY AND EXCLUSIVE ARRANGEMENT WHEREBY AN.
OVERSEAS-FILIPINO WORKERS 18 ARE REQUIRED TO UNDERGO HEALTH
EXAMINATIONS ONLY FROM SPECIFICALLY DESIGNATED MEDICAL CLINICS,
INSTITUTIONS, ENTITIES OR PERSONS, EXCEPT IN THE CASE OF A SEAFARERS
WHOSE MEDICAL EXAMINATION COSTS IS ARE SHOULDERED BY THE
PRINCIPAL/SHIPOWNER;

IMPOSE A COMPULSORY AND EXCLUSIVE ARRANGEMENT WHEREBY AN.
OVERSEAS-FIAPINO WORKERS IS ARE REQUIRED TO UNDERGO TRAINING,
SEMINAR, INSTRUCTION OR SCHOOLING OF ANY KIND ONLY FROM
SPECIFICALLY DESIGNATED INSTITUTIONS, ENTITIES OR PERSONS, EXCEPT
FOR RECOMMENDATORY TRAININGS MANDATED BY
PRINCIPALS/SHIPOWNERS WHERE THE LATTER SHOULDER THE COST OF
SUCH TRAININGS;

FOR A SUSPENDED RECRUITMENT AGENC¥ AGENCIES TO ENGAGE IN ANY
KIND OF RECRUITMENT ACTIVITY INCLUDING THE PROCESSING OF PENDING
WORKERS’ APPLICATIONS; AND

FOR A RECRUITMENT AGENCY AGENCIES OR 4 FOREIGN
PRINCIPAL/EMPLOYER PRINCIPALS/EMPLOYERS TO PASS ON THE OVERSEAS,
FHAPINO-WORKERS OR DEDUCT FROM HIS-OR-HER THEIR SALARY THE
PAYMENT OF THE COST OF INSURANCE FEES, PREMIUM OR OTHER
INSURANCE RELATED CHARGES, AS PROVIDED UNDER THE COMPULSORY
WORKER'S INSURANCE COVERAGE.

THE PERSONS CRIMINALLY LIABLE FOR THE ABOVE OFFENSES ARE THE
PRINCIPALS, ACCOMPLICES AND ACCESSORIES. IN CASE OF JURIDICAL PERSONS,
THE OFFICERS HAVING OWNERSHIP, CONTROL, MANAGEMENT OR DIRECTION OF
THEIR BUSINESS WHO ARE RESPONSIBLE FOR THE COMMISSION OF THE OFFENSE
AND THE RESPONSIBLE EMPLOYEES/AGENTS SHALL BE LIABLE.

IN THE FILING OF CASES FOR ILLEGAL RECRUITMENT OR ANY OF THE PROHIBITED
ACTS UNDER THIS ARTICLE, THE SECRETARY OF LABOR AND EMPLOYMENT SOLE,


SECRETARY OF DMW, THE-POBA—ADMINISTRATOR OR THEIR AUTHORIZED
REPRESENTATIVES, OR ANY AGGRIEVED PERSON MAY INITIATE THE
CORRESPONDING CRIMINAL ACTION WITH THE APPROPRIATE OFFICE. FOR THIS
PURPOSE, THE AFFIDAVITS AND TESTIMONIES OF OPERATIVES OR PERSONNEL,
FROM THE DEPARTMENT-OF LABOR-AND-EMPLOYMENT, POEA DOLE, DMW, AND
OTHER LAW ENFORCEMENT AGENCIES WHO WITNESSED THE ACTS
CONSTITUTING THE OFFENSE SHALL BE SUFFICIENT TO PROSECUTE THE
ACCUSED.

IN THE PROSECUTION OF OFFENSES PUNISHABLE UNDER THIS ARTICLE SECHON,
THE PUBLIC PROSECUTORS OF THE DEPARTMENT OF JUSTICE SHALL
COLLABORATE WITH THE ANFHLLEGAL RECRUFPMENT BRANCH-OF-THE POEA
DOLE OR DMW, AND_IN-CERTFAIN-CASES, ALLOW THE POEA-LAWYERS TO FAKE

THE FILING OF AN OFFENSE PUNISHABLE UNDER THIS AGF CODE SHALL BE
WITHOUT PREJUDICE TO THE FILING OF CASES PUNISHABLE UNDER OTHER
EXISTING LAWS, RULES OR REGULATIONS. (38a)

Art. 29. Penalties.

(a) PERSONS FOUND GUILTY OF ILLEGAL RECRUITMENT SHALL SUFFER THE
PENALTY OF IMPRISONMENT OF NOT LESS THAN TWELVE (12) YEARS AND
ONE (1) DAY BUT NOT MORE THAN TWENTY (20) YEARS AND A FINE OF NOT
LESS THAN ONE TWO MILLION PESOS (P2,000,000.00) NOR MORE THAN FWO.
FOUR MILLION PESOS (P4,000,000.00).

(b) WHERE THE PERSON ILLEGALLY RECRUITED IS LESS THAN EIGHTEEN (18)

YEARS OF AGE OR COMMITTED BY A NON-LICENSEE OR NON-HOLDER OF
(ORITY, THE MAXIMUM PENALTY SHALL BE I!

(c) THE PENALTY OF LIFE IMPRISONMENT AND A FINE OF NOT LESS THAN FWO


FIVE MILLION PESOS (P5,000,000.00) NOR MORE THAN FEVE TEN MILLION
PESOS (P10,000,000.00) SHALL BE IMPOSED IF ILLEGAL RECRUITMENT
CONSTITUTES ECONOMIC SABOTAGE AS DEFINED IN ARTICLE 28.

(d) PERSONS FOUND GUILTY OF ANY OF THE PROHIBITED ACTS SHALL SUFFER
THE PENALTY OF IMPRISONMENT OF NOT LESS THAN SIX (6) YEARS AND ONE
(1) DAY BUT NOT MORE THAN TWELVE (12) YEARS AND A FINE OF NOT LESS
THAN FEVE-HUNDRED-TFHOUSAND-PESOS ONE MILLION PESOS (P1,000,000.00)
NOR MORE THAN ONE TWO MILLION PESOS (P2,000,000.00).

(ec) IF THE OFFENDERS 1S-ARE ALIENS FOREIGN NATIONALS, THEY SHALL, IN
ADDITION TO THE PENALTIES PRESCRIBED HERE, BE DEPORTED WITHOUT
FURTHER PROCEEDINGS.

(8) If the offenderS is ARE a corporationS, partnershipS, associationS or entity ENTITIES, the
Penalty shall be imposed upon the officer or oficers of the corporationS, partnerships,

association or entity ENTITIES responsible for THE violation;
Jien,-he-shall,-in-addition-to-the-penalties-herein-preseribed,_be deported without further

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, and the forfeiture
of the cash and surety bonds in favor of the Overseas-Employment-Development Board_or-the
National Seamen-Board,-as-the-case-may-be, BUREAU OF LOCAL EMPLOYMENT beth-of
whieh are authorizedte-use thesame AS A SPECIAL FUND TO BE USED exclusively to-promete
their objectives FOR THE AMELIORATION AND BENEFIT OF WORKERS. (39a)

CHAPTER V
OVERSEAS EMPLOYMENT

ART. 30. CREATION OF LOCAL EMPLOYMENT OPPORTUNITIES. WHILE

REMITTANCES, THE STATE DOES NOT PROMOTE OVERSEAS EMPLOYMENT AS A
MEANS TO SUSTAIN ECONOMIC GROWTH AND ACHIEVE NATIONAL


DEVELOPMENT, RECOGNIZING HOWEVER THE SIGNIFICANT CONTRIBUTION OF
THE MIGRANT WORKERS TO THE NATIONAL ECONOMY, THE STATE SHALL
PROVIDE AN FHE-EXISTENCE-OF THE OVERSEAS EMPLOYMENT PROGRAM RESTS
SOLELY-ON-THE-ASSURANCE-TO INSURE THAT THE DIGNITY AND FUNDAMENTAL
HUMAN RIGHTS AND FREEDOMS OF THE FILIPINO CITIZENS SHALL NOT, AT ANY
TIME, BE COMPROMISED OR VIOLATED. THE STATE, THEREFORE, SHALL
CONTINUOUSLY CREATE LOCAL EMPLOYMENT OPPORTUNITIES AND PROMOTE
THE EQUITABLE DISTRIBUTION OF WEALTH AND THE BENEFITS OF
DEVELOPMENT. (new)

ART. 31. TERMINATION OR BAN ON DEPLOYMENT. NOFWIFHSTANDING-THE
PROVISIONS OF SECTIONS-+AND-5-OF THIS RULE, IN PURSUIT OF THE NATIONAL
INTEREST OR WHEN PUBLIC WELFARE SO REQUIRES, THE POEA-GOVERNING
BOARD DMW, AFTER CONSULTATION WITH THE DFA DEPARTMENT OF FOREIGN
AFFAIRS, MAY, AT ANY TIME, TERMINATE OR IMPOSE A BAN ON THE
DEPLOYMENT OF MIGRANT WORKERS. (new)

Art. 32. Ban on Direct-Hiring. No employer may hire Filipino workerS for overseas
employment through direct hiring except through-the-Boards-and_entities-euthorized-by-the
Seoretary-of Labor. BY THE FOLLOWING ENTITIES: Direet-hiring-by-members—of the

Seoretary-of Labor is-exempted from this provision.

(1) MEMBERS OF THE DIPLOMATIC CORPS;
(2) MEMBERS OF INTERNATIONAL ORGANIZATIONS; and
(3) HEADS OF STATE AND GOVERNMENT OFFICIALS WITH THE RANK OF AT

LEAST UNDERSECRETARY.

THE TERM “INTERNATIONAL ORGANIZATION” IS AN ORGANIZATION SET UP BY
AGREEMENT BETWEEN TWO OR MORE STATES, INCLUDING A SPECIALIZED
AGENCY HAVING FUNCTIONS IN PARTICULAR FIELDS. IT MAY ALSO INCLUDE AN


ORGANIZATION HAVING AN INTERNATIONAL CHARACTER AND PURPOSE, WHICH
IS GRANTED THE STATUS, PREROGATIVES, PRIVILEGES AND IMMUNITIES OF AN
INTERNATIONAL ORGANIZATION. (18a)

ART. 33. APPLICABILITY OF MIGRANT WORKERS ACT. ALL OTHER PROVISIONS
OF REPUBLIC ACT NO. 8042, AS AMENDED, AND RULES AND REGULATIONS NOT
INCONSISTENT HEREWITH ARE DEEMED ADOPTED. (new)

Chapter VI
EMPLOYMENT OF NON-RESIDENT ALYENS FOREIGN NATIONALS

Art. 34. Employment Permit of Non-Resident etiens FOREIGN NATIONALS. Any alien
NON-RESIDENT FOREIGN NATIONALS seeking admission to EMPLOYMENT IN the
Philippines and any domestic or foreign employerS who desires DESIRE to engage an-atien A
FOREIGN NATIONALS for employment in the Philippines shall obtain an employment permit
from the DOLE.

Fhe AN employment permit may be issued to a non-resident alien FOREIGN NATIONAL or to
the applicant employer after a determination of the non-availability of a person in the Philippines
who is eompetent-able; QUALIFIED and willing at the time of application to perform the services
for which the alien NON-RESIDENT FOREIGN NATIONAL is desired.

THE SOLE IS AUTHORIZED TO GRANT EXEMPTIONS FROM THE LABOR MARKET
TEST TO FOREIGN NATIONALS AS PROVIDED FOR UNDER EXISTING LAWS AND
AGREEMENTS, AS WELL AS IN INDUSTRIES OR OCCUPATIONS OR PRACTICE OF
PROFESSIONS WHERE THERE IS SHORT SUPPLY SUBJECT TO TRIPARTITE
CONSULTATIONS.

For an enterpriseS registered in preferred areas of investments, said employment permit may be
issued upon recommendation of the government agency charged with the supervision of said

registered enterprise. (40a)


ART. 35. VALIDITY OF FOREIGN NATIONAL EMPLOYMENT PERMIT (FNEP). THE
FNEP SHALL BE VALID FOR THE POSITION AND COMPANY FOR WHICH IT WAS
ISSUED FOR A PERIOD OF ONE (1) YEAR, UNLESS THE EMPLOYMENT CONTRACT, OR
OTHER MODES OF ENGAGEMENT PROVIDES OTHERWISE, WHICH IN NO CASE
SHALL EXCEED THREE (3) YEARS.

‘A FOREIGN NATIONAL EMPLOYMENT PERMIT IS ONE ISSUED TO A NON-RESIDENT
FOREIGN NATIONAL OR TO AN APPLICANT EMPLOYER AFTER A DETERMINATION
OF THE NON-AVAILABILITY OF A PERSON QUALIFIED AND WILLING AT THE TIME
OF APPLICATION TO PERFORM THE SERVICES FOR WHICH THE NON-RESIDENT
FOREIGN NATIONAL IS DESIRED. (new)

ART. 36. RENEWAL OF FNEP. AN APPLICATION FOR RENEWAL OF ENEP SHALL BE
FILED NOT EARLIER THAN SIXTY (60) DAYS BEFORE ITS EXPIRATION. IN CASE THE
FOREIGN NATIONAL NEEDS TO LEAVE THE COUNTRY OR IN OTHER SIMILAR
CIRCUMSTANCES THAT WILL HINDER THE FILING OF RENEWAL WITHIN THIS
PRESCRIBED PERIOD, THE APPLICATION MAY BE FILED EARLIER. (new)

ART. 37. DENIAL OF APPLICATION. AN APPLICATION FOR FNEP SHALL BE

DENIED BY THE DOLE BASED ON ANY OF THE FOLLOWING GROUNDS:

(a) MISREPRESENTATION OF FACTS IN THE APPLICATION INCLUDING
FRAUDULENT MISREPRESENTATION LE. FALSE STATEMENT THAT HAS A
NEGATIVE EFFECT IN THE EVALUATION OF THE APPLICATION MADE
KNOWINGLY, OR WITHOUT BELIEF IN ITS TRUTH, OR RECKLESSLY WHETHER
IT IS TRUE OR FALSE;

(b) SUBMISSION OF FALSIFIED DOCUMENTS;

(©) CONVICTION OF THE FOREIGN NATIONAL OF A CRIMINAL OFFENSE OR THE
FOREIGN NATIONAL IS A FUGITIVE FROM JUSTICE IN THE PHILIPPINES OR
ABROAD;

(d) ILL TREATMENT OF WORKERS;


(@)

@

AVAILABILITY OF A PERSON IN THE PHILIPPINES WHO IS QUALIFIED AND
WILLING TO DO THE JOB INTENDED FOR OR BEING PERFORMED BY THE
FOREIGN NATIONAL BASED ON DATA IN THE PUBLIC EMPLOYMENT
INFORMATION SYSTEM (PEIS), PROFESSIONAL REGULATION COMMISSION
(PRC) REGISTRY OF PROFESSIONALS, AND TESDA REGISTRY OF CERTIFIED
WORKERS;

THE FOREIGN NATIONAL HAS WORKED WITHOUT FNEP FOR MORE THAN A
YEAR; OR

APPLICATION FOR RENEWAL WITH EXPIRED VISA OR WITH TEMPORARY
VISITOR’S VISA.

NO FNEP SHALL BE ISSUED TO A FOREIGN NATIONAL CONSIDERED AN
UNDESIRABLE ALIEN UNDER COMMONWEALTH ACT NO. 613 (THE PHILIPPINE
IMMIGRATION ACT OF 1940).

THE REGIONAL DIRECTOR SHALL ISSUE AN ORDER DENYING THE APPLICATION
FOR NEW OR RENEWAL OF FNEP WHICH SHALL HAVE THE EFFECT OF FORFEITURE
OF THE FEES PAID BY THE APPLICANT. (new)

ART. 38. CANCELLATION/REVOCATION OF FNEP. AN FNEP MAY BE CANCELLED
OR REVOKED UPON ANY OF THE FOLLOWING GROUNDS:

(a)

(b)

(©)

NON-COMPLIANCE WITH ANY OF THE REQUIREMENTS OR CONDITIONS FOR
WHICH THE FNEP WAS ISSUED;

MISREPRESENTATION OF FACTS IN THE APPLICATION INCLUDING
FRAUDULENT MISREPRESENTATION LE. FALSE STATEMENT THAT HAS A
NEGATIVE EFFECT IN THE EVALUATION OF THE APPLICATION MADE
KNOWINGLY, OR WITHOUT BELIEF IN ITS TRUTH, OR RECKLESSLY WHETHER
IT IS TRUE OR FALSE;

SUBMISSION OF FALSIFIED DOCUMENTS;


(4) MERITORIOUS OBJECTION OR INFORMATION AGAINST THE EMPLOYMENT OF
THE FOREIGN NATIONAL;

(e) CONVICTION OF THE FOREIGN NATIONAL OF A CRIMINAL OFFENSE OR THE
FOREIGN NATIONAL IS A FUGITIVE FROM JUSTICE IN THE PHILIPPINES OR
ABROAD;

(f) EMPLOYER TERMINATED THE EMPLOYMENT OF THE FOREIGN NATIONAL;
AND

(g) ILL TREATMENT OF WORKERS.

AN FNEP ISSUED TO A FOREIGN NATIONAL WHO SUBSEQUENTLY BECOMES AN
UNDESIRABLE ALIEN UNDER COMMONWEALTH ACT NO. 613 SHALL BE
CANCELLED OR REVOKED.

IN ANY CASE UNDER THIS ARTICLE, THE REGIONAL DIRECTOR SHALL ISSUE AN
ORDER CANCELLING OR REVOKING THE FNEP. (new)

ART. 39. EXEMPTION FROM EMPLOYMENT PERMIT. THE FOLLOWING
CATEGORIES OF FOREIGN NATIONALS ARE EXEMPT FROM SECURING AN FNEP:

(a) ALL MEMBERS OF THE DIPLOMATIC SERVICE AND FOREIGN GOVERNMENT
OFFICIALS ACCREDITED BY AND WITH RECIPROCITY ARRANGEMENT WITH
THE PHILIPPINE GOVERNMENT;

(b) OFFICERS AND STAFF OF INTERNATIONAL ORGANIZATIONS OF WHICH THE
PHILIPPINE GOVERNMENT IS A MEMBER;

(©) ALL FOREIGNERS GRANTED EXEMPTION BY LAW;

(d) OWNERS AND REPRESENTATIVES OF FOREIGN PRINCIPALS WHOSE
COMPANIES ARE ACCREDITED BY THE DMW, WHO COME TO THE PHILIPPINES,
FOR A LIMITED PERIOD AND SOLELY FOR THE PURPOSE OF INTERVIEWING
FILIPINO APPLICANTS FOR EMPLOYMENT ABROAD.


FOREIGN NATIONALS WHO COME TO THE PHILIPPINES TO TEACH, PRESENT OR
CONDUCT RESEARCH STUDIES IN UNIVERSITIES AND COLLEGES AS VISITING,
EXCHANGE OR ADJUNCT PROFESSORS UNDER FORMAL AGREEMENTS BETWEEN
THE UNIVERSITIES OR COLLEGES IN THE PHILIPPINES AND FOREIGN
UNIVERSITIES OR COLLEGES; OR BETWEEN THE PHILIPPINE GOVERNMENT AND
FOREIGN GOVERNMENT; PROVIDED, THAT THE EXEMPTION IS ON A RECIPROCAL
BASIS. (new)

ART. 40. EXCLUSION FROM EMPLOYMENT PERMIT. THE FOLLOWING
CATEGORIES OF FOREIGN NATIONALS ARE EXCLUDED FROM SECURING AN
EMPLOYMENT PERMIT:

(a) MEMBERS OF THE GOVERNING BOARD WITH VOTING RIGHTS ONLY WHO DO
NOT INTERVENE IN THE MANAGEMENT OF THE CORPORATION OR IN THE
DAY-TO-DAY OPERATION OF THE ENTERPRISE.

(b) PRESIDENT AND TREASURER, WHO ARE PART OWNERS OF THE COMPANY.

(©) THOSE PROVIDING CONSULTANCY SERVICES WHO DO NOT HAVE
EMPLOYERS IN THE PHILIPPINES.

INTRA-CORPORATE TRANSFEREES WHO ARE MANAGERS, EXECUTIVES, OR
SPECIALISTS AS DEFINED IN ACCORDANCE TO TRADE AGREEMENTS AND
EMPLOYEES OF FOREIGN SERVICE SUPPLIERS FOR AT LEAST ONE (1) YEAR OF
CONTINUOUS EMPLOYMENT PRIOR TO DEPLOYMENT TO A BRANCH, SUBSIDIARY,
AFFILIATE OR REPRESENTATIVE OFFICE IN THE PHILIPPINES. (new)

Art. 41. Prohibition against Transfer of Employment.

(a) After the issuance of an employment permit, ¢ke-alien NON-RESIDENT FOREIGN
NATIONALS shall not transfer to another job or change his THEIR employer without prior
approval of the Seeretary-of Labor SOLE.

(b) Amy Non-resident alien FOREIGN NATIONALS who shalt take up employment in violation
of the provision of this Title and its implementing rules and regulations shall be punished in


dance with the provisions-of Articles 289 -and-290 of the Labor Code: WITH A FINE
of NOT LESS THAN FIFTY THOUSAND PESOS (P50,000.00) NOR MORE THAN ONE
HUNDRED THOUSAND PESOS (P100,000.00), OR IMPRISONMENT OF NOT LESS
THAN SIX (6) MONTHS NOR MORE THAN SIX (6) YEARS OR BOTH SUCH FINE
AND IMPRISONMENT AT THE DISCRETION OF THE COURT.

In addition, the aliear NON-RESIDENT FOREIGN NATIONALS shall be subject to deportation
after service of his THEIR sentence.

THE SOLE IS AUTHORIZED TO IMPOSE A FINE OF FIFTY THOUSAND PESOS
(P50,000.00) FOR EVERY YEAR OR FRACTION TO BOTH THE NON-RESIDENT
FOREIGN NATIONAL FOUND WORKING WITHOUT VALID EMPLOYMENT PERMIT
AND THE EMPLOYER. (41a)

Art. 42, Submission of ListAny Employers employing non-resident foreign nationals onthe
effective date-of this-Code shall submit a list of such nationals to the Secretary-of Laborwithin
thirty_(30)-days—afier-such—date REGIONAL DIRECTOR OF THE DOLE WHICH HAS
JURISDICTION OVER THE EMPLOYER NOT LATER THAN THE 15™ DAY OF JANUARY
EVERY YEAR indicating their names, citizenship, foreign and local addresses, nature of
employment and status of stay in the country. Fhe Secretary of Labor shall then-determine if they
are-entitled to-en-employment permit: (42a)

Chapter VI
MISCELLANEOUS PROVISIONS

Art. 43. Suspension and/or Cancellation of License or Authority. The MinisterofLabor DOLE
OR DMW shall have the power to suspend or cancel any license or authority to recruit employees
for LOCAL OR overseas employment for violation of rules and regulations issued by the Ministry

ef Labor, the Overseas Employment Development Board DOLE OR DMW AND ATTACHED
AGENCIES, or for violation of the provisions of this CODE and other applicable laws, General

Orders-and-Letters-of Instruction RULES AND REGULATIONS. (35a)


Art. 44, Regulatory Power. The Seeretary-efLaber SOLE OR DMW SECRETARY, AS THE
CASE MAY BE, shall have the power to restrict and regulate the recruitment and placement

activities of all agencies within the coverage of this Title and is hereby authorized to issue orders
and promulgate rules and regulations to carry out the objectives and implement the provisions of

this Title. (36a)

Art. 45, Visitorial Power. The Seeretary-ofLaber SOLE or DMW SECRETARY, AS THE CASE
MAY BE, ORhis THEIR duly authorized representatives may, at any ti
books of accounts and records of any person or entity covered by this

J, inspect the premises,

reports regularly on prescribed forms, and act on violation of any provisions of this

BOOK TWO
HUMAN RESOURCES DEVELOPMENT PROGRAM

Title I
TRAINING AND EMPLO¥MENT DEVELOPMENT OF SPECIAL WORKERS

Chapter I
APPRENTICES

Art. 46, Statement of Objectives. This Title aims:

(1) To help mect the demand of the economy for trained manpower WORKFORCE;

(2) To establish a national apprenticeship program through the participation of employers,
workers and government and non-government agencies; and

(3) To establish apprenticeship standards for the protection of apprentices. (57)

Art. 47. Definition of Terms. As used in this Title:
@)

"Apprenticeship" means practical training on the job supplemented by related theoretical

instruction.


(b) An "apprentice" is a worker who is covered by a written apprenticeship agreement with an
idual employer or any of the entities recognized under this Chapter.

(©) An “apprenticeable occupation” means any trade, form of employment or occupation which
requires more than three (3) months of practical training on the job supplemented by related
theoretical instruction.

(a) “Apprenticeship agreement" is an employment contract wherein the employers bind
themselves to train the apprentice and the apprentice in turn accepts the terms of training.
(58)

Art. 48. Qualifications of Apprentice. To qualify as an apprentice, a person shall:

(a) Be at least fourteen-(14} FIFTEEN (15) years of age;
(b) Possess vocational aptitude and capacity for appropriate tests; and

(c) Possess the ability to comprehend and follow oral and written instructions.
Trade and industry associations may recommend to the Seoretary-of Labor SOLE appropriate
‘educational requirements for different occupations. (59a)

Art. 49, Employment of Apprentices. Only employers in the highly technical industries may
employ apprentices and only in apprenticeable occupations approved by the Seeretary-of Labor
and Employment TRIPARTITE INDUSTRIAL PEACE COUNCIL (TIPC). (60a)

Art. 50. Contents of Apprenticeship Agreements. Apprenticeship agreements, including the
wage rates of apprentices, shall conform to the rules issued by the Seeretary-of Labor-end
‘Employment SOLE. The period of apprenticeship shall not exceed six (6) months. Apprenticeship
1g for wage rates below the legal minimum wage, which in no case shall start
below SEVENTY-FIVE percent (75%) of the applicable minimum wage, may be entered into only
in accordance with apprenticeship programs duly approved by the Seeretary-of Leber-and
Employment SOLE. The Department shall develop standard model programs of

apprenticeship. (61a)


Art. 51. Signing of Apprenticeship Agreement. Every apprenticeship agreement shall be signed
by the employerS or THEIR agentS, or by en THE authorized representativeS of any of the

recognized organizations, associations or groups and by the apprenticeS.

‘An Apprenticeship agreementS with a minorS shall be signed in his THEIR behalf by his THEIR
parentS or guardianS, OR if the latter is ARE not available, by an authorized representative of the
Departmentef LaberDOLE, and the same shall be binding during its lifetime.

Every apprenticeship agreement entered into under this Title shall be ratified by the appropriate
apprenticeship committees, if any, and a copy shall be furnished both the employerS and the
apprenticeS. (62a)

Art. 52. Venue of Apprenticeship Programs, Asy FirmS, employers, groupS or associationS,
industry organizationS or civic groupS wishing to organize an apprenticeship program may choose
from any of the following apprenticeship schemes as the training venue for apprentice:

(a) Apprenticeship conducted ent

ly by and within the sponsoring firm, establishment or

entity;

ly within a Department-of-Labor-ond-EmploymentDOLE training
center or other public training institution; or

(b) Apprenticeship ei

(©) _ Initial training in trade fundamentals in a training center or other institution with subsequent
actual work participation within the sponsoring firm or entity during the final stage of
training. (63)

Art. 53. Sponsoring of Apprenticeship Program. Any of the apprenticeship schemes recognized
herein may be undertaken or sponsored by @ single employerS or firmS or by @ groupS or
association thereof or by a civic organizationS. Actual training of apprentices may be undertaken:

(2) In the premises of the sponsoring employer in the case of individual apprenticeship
programs;
(b) In the premises of one or several designated firms in the case of programs sponsored by a

group or association of employers or by a civic organization; or


(©) Ina Department-of Labor and Employment DOLE training center or other public training

institution. (64a)

Art, 54, Investigation of Violation of Apprenticeship Agreement. Upon complaint of any
interested person or upon its own initiative, the appropriate agency of the Department-of Labor
and-Employment-DOLE or its authorized representative shall investigate any violation of an
apprenticeship agreement pursuant to such rules and regulations as may be prescribed by the

Seeretary-of Labor and Employment SOLE. (65a)

Art. 55, Appeal to the Secretary of Labor and Employment. The decision of the authorized
agency of the Department-of Leber and EmploymentDOLE may be appealed by any aggrieved
person to the Seeretary-of Labor and Employment SOLE within five (5) days from receipt of the
decision. The decision of the Seoretary-of Labor-and- Employment SOLE shall be final and
executory. (66a)

Art. 56. Exhaustion of Administrative Remedies. No person shall institute any action for the
enforcement of any apprenticeship agreement or damages for breach of any such agreement, unless
they have exhausted all available administrative remedies. (67)

Art. 57. Aptitude Testing of Applicants. Consonant with the minimum qualifications of
apprentice-applicants required under this Chapter, employers or entities with duly recognized
apprenticeship programs shall have primary responsibility for providing appropriate aptitude tests
in the selection of apprentices. If they do not have adequate fac

Department-of Labor-and Employment DOLE shall perform the service free of charge. (68)

‘es for the purpose, the

Art. 58. Responsibility for Theoretical Instruction. Supplementary theoretical instruction to
apprentices in cases where the program is undertaken in the plant may be done by the employers.

If the latter is ARE not prepared to assume the responsit

ity, the same may be delegated to an

appropriate government agency. (69a)

Art. 59. Voluntary Organi:

tion of Apprenticeship Programs; Exemptions.


(a) The organization of apprenticeship program shall be primarily a voluntary undertaking by
employers;

(b) When national security or particular requirements of economic development so demand, the
President of the Philippines may require compulsory training of apprentices in certain trades,
occupations, jobs or employment levels where shortage of trained manpower is deemed
critical as determined by the Secretary of Labor and Employment SOLE. Appropriate rules
in this connection shall be promulgated by the Seeretary-of Labor-and Employment SOLE
as the need arises; and

(©) Where services of foreign technicians are utilized by private companies in apprenticeable

trades, said companies are required to set up appropriate apprenticeship programs. (70a)

Art. 60, Deductibility of Training Costs. An additional deduction from taxable income of one-
half (1/2) of the value of labor training expenses incurred for developing the productivity and
efficiency of apprentices shall be granted to the person or enterprise organizing an apprenticeship
program: Provided, That such program is duly recognized by the Department-of Lebor-and
Employment DOLE: Provided, further, That such deduction shall not exceed ten (10%) percent of
direct labor wage: and Provided, finally, That the personS or enterpriseS who wishes to avail
himself.or itself THEMSELVES of this incentive should pay his THEIR apprentices the minimum
wage. (71a)

Art. 61. Apprentices without Compensation. The Seeretary of Labor and Employment SOLE
may authorize the hiring of apprentices without compensation whose training on the job is required
by the schoo! or training program curriculum or as requisite for graduation or board examination,

(72)

BOOK THREE
CONDITIONS OF EMPLOYMENT

Title
WORKING CONDIFIONS AND REST PERIODS CONDITIONS


Chapter I
HOURS OF WORK

Art. 62. Coverage. The provisions of this Title shall apply to employees, FULL-TIME OR PART-
TIME, in all establishments and undertakings whether for profit or not, but not to government
employees, managerial employees, field personnel, members-of the family of the employer whe
ere-dependenon-him-fo-support domestic helpers WORKERS, AND persons in the personal
service of another;at

‘As used herein, “managerial employees” refer to those whose primary duty consists of the
management of the establishment in which they are employed or of ¢-department or subdivision

“Field personnel” shall refer to non-agricultural employees who regularly perform their duties
away from the principal place of business or branch office of the employer and whose actual hours
of work in the field cannot be determined with reasonable certainty.

A “NON-GOVERNMENTAL ORGANIZATION, " COMMONLY REFERRED TO AS AN NGO,
IS A REGISTERED NONPROFIT AND NON-STOCK ORGANIZATION, ORGANIZED ON
A LOCAL, NATIONAL OR INTERNATIONAL LEVEL, THAT FUNCTIONS
INDEPENDENTLY OF GOVERNMENT TO PROMOTE PARTICULAR CAUSES OR
ADVOCACIES, INCLUDING A_ RELIGIOUS, CHARITABLE, MEDICAL OR
EDUCATIONAL ORGANIZATION THAT IS NOT OPERATING FOR PROFIT. (82a)

ART. 63. PART-TIME WORKERS.

(a) PART-TIME WORKERS ARE THOSE WHO ARE ENGAGED INA SINGLE, REGULAR
OR VOLUNTARY FORM OF EMPLOYMENT WITH HOURS OF WORK
SUBSTANTIALLY SHORTER THAN THOSE CONSIDERED AS NORMAL IN THE
ESTABLISHMENT.


(b)

©

@

THE NORMAL HOURS OF WORK REFERRED TO IN SUBPARAGRAPH (A) MAY BE.
CALCULATED WEEKLY OR ON AVERAGE OVER A GIVEN PERIOD OF
EMPLOYMENT;

THE TERM COMPARABLE FULL-TIME WORKERS REFERS TO FULL-TIME
WORKERS WHO:

(i) HAVE THE SAME TYPE OF EMPLOYMENT RELATIONSHIP;

(i) ARE ENGAGED IN THE SAME OR A SIMILAR TYPE OF WORK OR
OCCUPATION; AND

ARE EMPLOYED IN THE SAME ESTABLISHMENT OR, WHEN THERE IS NO
COMPARABLE FULL-TIME WORKER IN THAT ESTABLISHMENT, IN THE
SAME ENTERPRISE OR, WHEN THERE IS NO COMPARABLE FULL-TIME
WORKER IN THAT ENTERPRISE, IN THE SAME BRANCH OF ACTIVITY.
THIS DEFINITION EXCLUDES CERTAIN FORMS OF EMPLOYMENT WHICH
ALTHOUGH REFERRED TO AS PART-TIME WORK, ARE IN PARTICULAR,
INTERMITTENT EMPLOYMENT, OR CASES WHERE HOURS OF WORK HAVE
BEEN TEMPORARILY REDUCED FOR ECONOMIC, TECHNICAL OR STRUCTURAL
REASONS.

PART-TIME WORK MAY TAKE DIFFERENT FORMS DEPENDING ON THE AGREED
HOURS OF WORK IN A DAY, THE DAYS OF WORK IN A WEEK OR OTHER REFERENCE
PERIODS. IN THE PHILIPPINES, HOWEVER, THE TWO MOST COMMON AND
ACCEPTABLE FORMS ARE FOUR (4) HOURS WORK PER DAY AND WEEKEND WORK
OR TWO (2) FULL DAYS PER WEEK. (new)

Art. 64. Normal Hours of Work. The normal hours of work of aay employees shall not exceed
eight (8) hours a day.

Health personnel in cities and municipalities with a population of at least one

ion (1,000,000)

or in hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office

hours for eight (8) hours a day, for five (5) days a week, exclusive of time for meals, except where

the exigencies of the service require that such personnel work for six (6) days or forty-eight (48)


hours, in which case, they shall be entitled to an additional compensation of at least thirty percent
(30%) of their regular wage for work on the sixth day. For purposes of this Article, “health

personnel” shall include resident physicians, nurses, nutr ts, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists, BIRTH attendants,
HEALTH CARE PROVIDERS and all other hospital, of clinic OR HEALTH CENTER personnel.

(83a)

Art. 65. Hours Worked. Hours worked shall include (a) all time during which an employeeS is
ARE required to be on duty or to be at a prescribed workplace; and (b) all time during which an
employeeS is ARE suffered or permitted to work.

Rest periods of short duration-during working hours-OR COFFEE BREAKS OF FROM FIVE (5)
‘TO TWENTY (20) MINUTES shall be counted as hours worked. (84a)

Art. 66, Meal Periods: BREAK TIME-Subj jh regulations-as-the Secretary of Lebormay
preseribe; it-shall-be the duty-of every emph sgive-his-employees EMPLOYERS SHALL
GIVE EVERY EMPLOYEE not less than sixty (60) minutes BREAK time-ofF-for-their regular
meals. (85a)

Art. 67. Night-Shift Differential. Every Employees shall be paid a night shift differential of not
less than ten percent (10%) of his THEIR regular wage for each hour of work performed between

ten o’clock in the evening and six o’clock in the morning. (86a)

Art. 68. Overtime Work. Work may be performed beyond eight (8) hours a day provided that
the employeeS is ARE paid for the overtime work, an additional compensation equivalent to his
THEIR regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond
eight (8) hours on a holiday or rest day shall be paid an additional compensation equivalent to the
rate of the first eight (8) hours on a holiday or rest day plus at least thirty percent (30%) thereof.
(87a)


Art. 69. Undertime Not Offset by Overtime. Undertime work on any particular day shall not be
offset by overtime work on any other day. Permission given to the employeeS to go on leave on
some other day of the week shall not exempt the employerS from paying the additional
compensation required in this Chapter. (88a)

Art. 70. Emergency Overtime Work. Any EmployeeS may be required by the employerS to

perform overtime work in any of the following cases:

(a) When the country is at war or when any other national or local emergency has been declared
by the National Assembly or the Chief Executive CONGRESS OR THE PRESIDENT OR
THE LOCAL 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, flood, typhoon, earthquake, epidemic, or other disaster or calamity;

(©) When there is urgent work to be performed on machines, installations, or equipment, in order
to avoid serious loss or damage to the employer or some other cause of similar nature;

(a) When the work is necessary to prevent loss or damage to perishable goods; and

{6} Where the completion or continuation of the work started before the eighth hour is necessary

to prevent serious obstruction or prejudice to the business or operations of the employ:
AND

(Q) WHEN OVERTIME WORK IS NECESSARY TO AVAIL OF FAVORABLE WEATHER
OR ENVIRONMENTAL CONDITIONS WHERE PERFORMANCE OR QUALITY OF
WORK IS DEPENDENT THEREON.

PREGNANT OR NURSING WOMEN SHOULD NOT BE OBLIGED TO RENDER
OVERTIME WORK IF A MEDICAL CERTIFICATE DECLARES SUCH WORK TO BE
INCOMPATIBLE WITH THEIR PREGNANCY OR NURSING.

Any eEmployeeS required to render overtime work under this Article shall be paid the additional
compensation required in this Chapter. (89a)


Art. 71, Computation of Additional Compensation. For purposes of computing overtime and
other additional remuneration as required by this Chapter, the "regular wage" of an employee shall

include the cash wage only, without deduction on account of facilities provided by the employer.
(90)

Chapter II
WEEKLY REST PERIODS

Art. 72, Right to Weekly Rest Day.

(a) _ It shall be the duty of every employerS;whether operating for profit ornet;-to provide cach
of his THEIR employees a rest period of net-Jess-than-twenty-four(24} consecutive hours
ONE DAY after every six (6) consecutive normal work days.

(b) The employerS shall determine and schedule the weekly rest day of his THEIR employees
subject to collective bargaining agreement OR, IN ITS ABSENCE, to such rules and

regulations as the Seeretary-of Lebor-and-Employment SOLE may provide.

However-the EmployerS shall respect the preference of employees as to their weekly rest day

when such preference is based on religious grounds, (91a)

Art. 73. When EmployerS May Require Work on a Rest Day. Fhe EmployerS may require his

THEIR employees to work on any day:

(a) _ Incase of actual or impending emergencies caused by serious accident, fire, flood, typhoon,
earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or
imminent danger to public safety;

(b) In cases of urgent work to be performed on the machinery, equipment, or installation, to
avoid serious loss which the employer would otherwise suffer;

o-dn-the-event-of abnormal-p £ work due-to-special-circumstances, where-the-employer

To prevent loss or damage to perishable goods; OR

©



e-Under other circumstances analogous-oF similar-to-the foregoing as determined by the Seoretary
of Labor and Employment:

(4) WHEN THE WORK IS NECESSARY TO AVAIL OF FAVORABLE WEATHER OR
ENVIRONMENTAL CONDITIONS WHERE PERFORMANCE OR QUALITY OF
WORK IS DEPENDENT THEREON.

PREGNANT OR NURSING WOMEN SHOULD NOT BE OBLIGED TO WORK ON A REST
DAY IF A MEDICAL CERTIFICATE DECLARES SUCH WORK TO BE INCOMPATIBLE
WITH THEIR PREGNANCY OR NURSING. (92a)

Art. 74, Compensation for rest day or Holiday Work OR SUNDAY.

(a) Where en employeeS is ARE made or permitted to work on his THEIR scheduled rest day,
he THEY shall be paid an additional compensation of at least thirty percent (30%) of his
‘THEIR regular wage. An employee shall be entitled to such additional compensation for
work performed on Sunday only when it is his THEIR established rest day.

(b) When the nature of the work of the employees is such that he-has THEY HAVE no regular
workdays and no regular rest days can be scheduled, he THEY shall be paid an additional
compensation of at least thirty percent (30%) of his THEIR regular wage for work performed

on Sundays.

Jeast fifty per-cent (50%) of his regular-wage:
(WORKERS WHO PERFORM WORK ON ANY SPECIAL HOLIDAY, WHETHER
DECLARED NATIONALLY OR LOCALLY, SHALL BE PAID THEIR REGULAR
DAILY WAGE AND AN ADDITIONAL COMPENSATION OF AT LEAST THIRTY
PERCENT (30%) OF THEIR REGULAR WAGE.

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. (93a)


Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE-CHARGES

Art. 75. Right to Holiday Pay.

(a)

()

(©)

(d)

Every WorkerS shall be paid his THEIR regular daily wage during regular holiday, exeept
in-retail-and-service establishments regularly employing Jess-than-ten-10}workers UNLESS
THEY ARE WORKERS OF NON-GOVERNMENTAL ORGANIZATIONS
EMPLOYING LESS THAN TEN (10) WORKERS.

Fhe-employer_may_requi ployee. ke y-holiday—br sh-employee
EMPLOYEES WHO WORK ON ANY REGULAR HOLIDAY shall be paid a

compensation equivalent to twice his THEIR regular rate; and
WORK PERFORMED ON ANY SPECIAL HOLIDAY SHALL BE PAID AN
ADDITIONAL COMPENSATION OF AT LEAST THIRTY PERCENT (30%) OF THE
REGULAR WAGE OF THE EMPLOYEE. WHERE SUCH HOLIDAY WORK FALLS
ON THE EMPLOYEES’ SCHEDULED REST DAY, THEY SHALL BE ENTITLED TO.
AN ADDITIONAL COMPENSATION OF AT LEAST FIFTY PERCENT (50%) OF
THEIR REGULAR WAGE.

As used in this Article,

holding—a—general_eleetion “HOLIDAYS” ARE THE REGULAR AND SPECIAL
HOLIDAYS AS PROVIDED UNDER EXISTING LAWS. (94a)

CHAPTER IV
SERVICE INCENTIVE LEAVE

Art. 76. Service Incentive Leave.

(a)

Every EmployeeS who has HAVE rendered at least one (1) year of service shall be entitled
toa yearly service incentive leave of five (5) days with pay.


(b) This provision shall not apply to those who are already enjoying the benefit herein provided,
AND those enjoying vacation leave with pay of at least fi¥e TEN (10) days and-these
employed—in—establishments—regularly_ employing —lese—thanten_employees—orin
establishments-exempted—f ingthis_benefitby_the-Seoretary-of-Labor_and
Employment after considering th financial condition-of such establishment.

(©) The grant of benefit in excess of that provided herein shall not be made-a-subject-of

i ini ion DIMINISHED. (95a)

CHAPTER V
SERVICE CHARGES

Art. 77. Service Charges. All service charges collected by hotels, restaurants and similar
establishments shall be distributed at the rate of eighty-five percent (85%) for all covered
employees and fifteen percent (15%) for management. The share of the employees shall be equally
distributed among them. In case the service charge is abolished, the share of the covered employees
shall be considered integrated in their wages.

THE SHARES REFERRED TO IN THIS ARTICLE SHALL BE DISTRIBUTED AND PAID
TO THE EMPLOYEES NOT LESS THAN ONCE EVERY TWO (2) WEEKS OR TWICE A
MONTH AT INTERVALS NOT EXCEEDING SIXTEEN (16) DAYS. (96a)

CHAPTER VI
FACILITIES

ies for Women. The Seeretary-of Labor and-Employment SOLE shall establish
standards that will ensure the safety and health of women employees WORKERS. s-apprepriate
-he-shall-b: Jations, require any-employerte EMPLOYERS SHALL BE REQUIRED

TO:


(a) Provide seats proper for women WORKERS and permit them to use such seats when they
are free from work and during working hours, provided they can perform their duties in this
position without detriment to efficiency;

(b) Fo-establish PROVIDE separate toilet rooms and lavatories for men and women WORKERS

AND WHERE APPROPRIATE, GENDER-NEUTRAL TOILET ROOMS AND

LAVATORIES; AND and-provide-at-least-«-dressing room-for- women;

special occupations such-as-those of flight attendants and-the-like,
(c) PROVIDE SUCH OTHER FACILITIES THAT THE SOLE MAY DEEM APPROPRIATE.
(130a)

Title 1
WAGES

Chapter I
PRELIMINARY MATTERS

Art. 79. Definitions. As used in this Title:
(a) "Person" means an individual, partnership, association, corporation, business trust, legal
representatives, or any organized group of persons.
(b) "Employer" includes any person acting directly or indirectly in the interest of an employer
in relation to an employee and shall include i -subdivisi
ities, all govemment-owned or controlled corporations and institutions
WITHOUT ORIGINAL CHARTER, as well as non-profit private institutions, or

organizations.

(©) "Employee" includes any individual employed by an employer. TO ASCERTAIN THE
EXISTENCE OF AN EMPLOYER-EMPLOYEE RELATIONSHIP, THE FOUR-FOLD
TEST SHALL APPLY, TO WIT: (1) THE SELECTION AND ENGAGEMENT OF THE
EMPLOYEE; (2) THE PAYMENT OF WAGES; (3) THE POWER OF DISMISSAL; (4)
THE POWER TO CONTROL THE EMPLOYEE’S CONDUCT WHERE THE PERSON


(d)

©)

FOR WHOM THE SERVICES ARE PERFORMED RESERVES THE RIGHT TO
CONTROL NOT ONLY THE END ACHIEVED, BUT ALSO THE MANNER AND
MEANS USED TO ACHIEVE THAT END. (DOLE D.O. No. 147-2015)

“Agriculture” includes farming in all its branches and, among other things, includes
cultivation and tillage of soil, dairying, the production, cultivation, growing and harvesting
of any agricultural and horticultural commodities, the raising of livestock or poultry, and any
practices performed by a farmer on a farm as an incident to or in conjunction with such
farming operations, but does not include the manufacturing or processing of sugar, coconuts,
abaca, tobacco, pineapples or other farm products

“Employ” ineludes MEANS to suffer or permit to work.

“Wage” paidto—any-employee—shall_meanS the remuneration or camings, however
designated, capable of being expressed in terms of money, whether fixed or ascertained on
a time, task, piece, or commission basis, or other method of calculating the same, which is
payable by-a#-employer to an employee BY AN EMPLOYER under a written or unwritten
contract of employment for work done or to be done, or for services rendered or to be
rendered and includes the fair and reasonable value, as determined by the Seoretary-of Labor
and Employment SOLE, of board, lodging, or other facilities 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. (97a)

Chapter II
MINIMUM WAGE RATES

Art, 80, Regions NATIONAL Minimum Wages. The NATIONAL minimum wage rates for
sericultural and non-agricultural employees and workers incachand ove region ofthe county
shall be those prescribed by the R °

WAGES AND PRODUCTIVITY COMMISSION. (032)

Art. 81. Prohibition against Elimination or Diminution of Benefits. Nothing in this Book shall

be construed to eliminate or in any way diminish supplements, er AND other employee benefits

being enjoyed at the time of promulgation of this Code. (100a)


Art. 82. Payment by Results. The Seeretary-of Labor-and Employment SOLE shall regulate the
payment of wages by results, including pakyaw, piecework, and other non-time work, in order to
ensure the payment of fair and reasonable wage rates, preferably through time and motion studies

or in consultation with representatives of workers’ and employers’ organizations. (101a)

Chapter IIT
PAYMENT OF WAGES

Art. 83. Forms of Payment. No employer shall pay the wages of an employee by means of
promissory notes, vouchers, coupons, tokens, tickets, chits, or any object other than legal tender,

even when expressly requested by the employee.

Payment of wages by check or money order OR DIGITAL MONEY REMITTANCE shall be

allowed when such manner of payment is customary on the date of effect

ty of this Code, or is

necessary because of special circumstances as specified in appropriate regulations to be issued by

the Seeretery-of Labor-endEmpleyment SOLE or as stipulated in a collective bargaining
agreement. (102a)

Art. 84. Time of Payment. Wages shall be paid at least once every two (2) weeks or twice a month
at intervals not exceeding sixteen (16) days. If on account of force majeure or circumstances
beyond the employer's control, payment of wages on or within the time herein provided cannot be
made, the employer shall pay the wages immediately after such force majeure or circumstances

have ceased, No employer shall make payment with less frequency than once a month.

The payment of wages of employees engaged to perform a task which cannot be completed in two

ing

(2) weeks shall be subject to the following conditions, in the absence of a collective barg

agreement or arbitration award:

(1) That payments are made at intervals not exceeding sixteen (16) days, in proportion to the
amount of work completed;

(2) That final settlement is made upon completion of the work. (103)


Art. 85. Place of Payment. Payment of wages shall be made at or near the place of undertaking,

except as otherwise provided by such regulations as the Seeretary-ef Labor and Employment SOLE

may prescribe under conditions to ensure greater protection of wages. (104a)

Art. 86, Direct Payment of Wages. Wages shall be paid directly to the workers to whom they are

due, except:

(@)

(b)

In cases of force majeure rendering such payment impossible or under other special

circumstances to be determined by the Seeretary-ofLabor-andEmployment SOLE in

appropriate regulations, in which case, the workerS may be paid through another person

under written authority given by the workerS for the purpose;
IN CASE OF ECONOMIC VIOLENCE AS DEFINED BY SEC. 3, PARAGRAPH D OF
REPUBLIC ACT NO. 9262, EMPLOYERS SHALL PAY THE WAGES OF THE
WORKERS TO THEIR IMMEDIATE FAMILY WITHOUT THE NECESSITY OF
COURT PROCEEDINGS. THE CLAIMANTS, IF THEY ARE ALL OF AGE, SHALL
EXECUTE AN AFFIDAVIT ATTESTING TO THEIR RELATIONSHIP TO THE
WORKER AND THE FACT THAT THEY ARE MEMBERS OF THE IMMEDIATE
FAMILY, TO THE EXCLUSION OF ALL OTHER PERSONS. IF ANY OF THE HEIRS
IS A MINOR, THE AFFIDAVIT SHALL BE EXECUTED ON THE MINOR’S BEHALF
BY THE NATURAL GUARDIAN OR NEXT-OF-KIN. THE AFFIDAVIT SHALL BE
PRESENTED TO THE EMPLOYER WHO SHALL MAKE PAYMENT THROUGH THE
SOLE OR THEIR REPRESENTATIVE. THE REPRESENTATIVE OF THE SOLE
SHALL ACT AS REFEREE IN DIVIDING THE AMOUNT PAID AMONG THE
MEMBERS OF THE FAMILY. THE PAYMENT OF WAGES UNDER THIS ARTICLE
SHALL ABSOLVE EMPLOYERS OF ANY FURTHER LIABILITY WITH RESPECT TO
THE AMOUNT PAID; or

(®) (c) Where the worker has died, in which case, the employerS may pay the wages of the deceased

worker to the heirs of the latter without the necessity of intestate proceedings. The claimants,
if they are all of age, shall execute an affidavit attesting to their relationship to the deceased
and the fact that they are his heirs, to the exclusion of all other persons. If any of the heirs is
a minor, the affidavit shall be executed on his THE MINOR’S behalf by his THE MINOR’S


natural guardian or next-of-kin. The affidavit shall be presented to the employer who shall
make payment through the Seeretary-of-Laber-end_Empleyment SOLE or his THEIR
representative. The representative of the Seeretary-of Labor-and-Empleyment SOLE shall

act as referee in dividing the amount 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.
(105a)

Art. 87. Worker Preference in Case of Bankruptcy. In the event of bankruptcy or liquidation
of an employer's business, his workers shall enjoy first preference as regards their wages and other
monetary claims, any provision of law THE CIVIL CODE ON PREFERENCE OF CREDIT AND
OTHER LAWS to the contrary notwithstanding. Such unpaid wages and monetary claims shall be

paid in full before claims of the government and other creditors may be paid. (110a)

Chapter IV
PROHIBITIONS REGARDING WAGES

Art. 88, Attorney’s Fees.

(a) _ In cases of unlawful withholding of wages, the culpable party may be assessed attorney's
fees equivalent to ten percent (10%) of the amount of wages recovered.

|, QUASL-JUDICIAL

or administrative proceedings for the recovery of wages, attorney’s fees which exceed ten

(b) It shall be unlawful for any person to demand or accept, in any judici

percent (10%) of the amount of wages recovered. (11a)

Art. 89, Non-Interference in it or otherwise interfere
with the freedom of any employeeS to dispose of his THEIR wages. He EMPLOYERS shall not

in any manner force, compel, or oblige is THEIR employees to purchase merchandise,

isposal of Wages. No employer shall

commodities or other property from any other person, or otherwise make use of any store or

services of seh THE employerS or any other person. (112a)

Art. 90. Wage Deduction. No-EmployerS, in his THEIR own behalf or in behalf of any person,
shall NOT make any deduction from the wages of his THEIR employees, except:


@

(b)

©

@

In cases where the workerS ARE insured with his THEIR consent by the employerS, and the
deduction is to recompense the employerS for the amount paid by him THEM as premium
on the insurance;

For union dues, in cases where the right of the workerS or his THEIR union to check-off has
been recognized by the employerS or authorized in writing by the individual worker
concemed;

IN CASES WHERE WORKERS HAVE FAILED TO PROVIDE REGULAR SUPPORT
TO THEIR IMMEDIATE LEGITIMATE SPOUSE AND LEGITIMATE OR
ILLEGITIMATE CHILDREN, EMPLOYERS MAY PAY THE WAGES TO THE
SPOUSE AND CHILDREN WITHOUT THE NECESSITY OF COURT PROCEEDINGS;
AND

In cases where the employerS is ARE authorized by law or regulations issued by the

Secretary of Labor and Employment SOLE. (113a)

Art. 91. Deposits for Loss or Damage. No EmployerS shall NOT require his THEIR workerS to

make deposits from which deductions shall be made for the reimbursement of loss of or damage

to tools, materials, or equipment supplied by the employerS, except when the employerS is ARE

engaged in such trades, occupations or business where the CUSTOMARY practice of making
deductions or requiring deposits is a recognized one, OR AS PROVIDED FOR IN THE
COLLECTIVE BARGAINING AGREEMENT, or is necessary or desirable as determined by the

‘Seeretary-of Labor and Employment SOLE in appropriate rules and regulations.

IN ANY CASE, DEDUCTIONS SHALL BE SUBJECT TO THE FOLLOWING CONDITIONS:

(@)

(b)

©

THAT THE EMPLOYEES CONCERNED ARE CLEARLY SHOWN TO BE
RESPONSIBLE FOR THE LOSS OR DAMAGE;

THAT THE EMPLOYEES ARE GIVEN REASONABLE OPPORTUNITY TO SHOW
CAUSE WHY DEDUCTION SHOULD NOT BE MADE;

THAT THE AMOUNT OF SUCH DEDUCTION IS FAIR AND REASONABLE AND
SHALL NOT EXCEED THE ACTUAL LOSS OR DAMAGE; AND


(a) THAT THE DEDUCTION FROM THE WAGES OF THE EMPLOYEE DOES NOT
EXCEED TWENTY PERCENT (20%) OF THE EMPLOYEE'S WAGES IN A WEEK.
(114a)

Art. 92, Withholding of Wages and Kickbacks Prohibited. It shall be unlawful for any person,
directly or indirectly, to withhold any amount from the wages of a workerS or induce hin THEM
to give up any part of his THEIR wages by force, stealth, intimidation, threat or by any other means
whatsoever without the worker's consent. (116a)

Art. 93, Deduction to Ensure Employment. It shall be unlawful to make any deduction from the
wages of any employeeS for the benefit of the employerS or his THEIR representativeS or
intermediary INTERMEDIARIES as consideration of a promise of employment or retention in
employment. (117a)

Art. 94, Retaliatory Measures. It shall be unlawful for an employerS to refuse to pay or reduce
the wages and benefits, discharge or in any manner discriminate against any employee who has
filed any complaint or instituted any proceeding under this Title OR UNDER THIS CODE OR
ANY LAWS or has testified OR HAS REFUSED TO TESTIFY, or is about to testify in such
proceedings. RETALIATORY ACTS SHALL INCLUDE REFUSAL TO TESTIFY WHEN
REQUIRED, REQUESTED, OR DEMANDED BY AN EMPLOYER. (118a)

Art. 95, False Reporting. It shall be unlawful for any person to make any statement, report, or
record filed or kept pursuant to the provisions of this Code knowing such statement, report or

record to be false in any material respect. (119)

CHAPTER V
CONTRACTING OF SERVICES

Art. 96, Contractor or Subcontractor. Whenever an employerS enters into a contract with
another personS for the performance of the former’s work, the employees of the contractor and of

the latter’s contractor, if any, shall be paid in accordance with the provisions of this Code.


In the event that the contractorS or subcontractorS fails to pay the wages of his THEIR employees
in accordance with this Code, the employerS shall be jointly and severally liable with his THEIR
contractorS or subcontractor to such employees to the extent of the work performed under the
contract, in the same manner and extent that he-is THEY ARE liable to employees directly
employed by him THEM.

The Seoretary-of Labor-and-_Employment SOLE may, by appropriate regulations, restrict or
prohibit the contracting-out of labor to protect the rights of workers established under this Code.
In so prohibiting or restricting, he THEY may make appropriate distinctions between labor-only
contracting and job contracting as well as differentiations within these types of contracting and
determine who among the parties involved shall be considered the employerS for purposes of this

Code, to prevent any violation or circumvention of any provision of this Code.

There is "labor-only” contracting where the personS supplying workers to an employerS does not
have substantial capital or investment in the form of tools, equipment, machineries, work premises,
among others, and the workers recruited and placed by such person$ are performing activities
which are directly related to the principal business of such employers. In such cases, the personS
or intermediaryIES shall be considered merely es-an agentS of the employerS who shall be
responsible to the workers in the same manner and extent as if the latter were directly employed
by him THEM. (1062)

Art. 97. Indirect Employer. The provisions of the immediately preceding article shall likewise
apply to any person, partnership, association or corporation which, not being an employer,
contracts with an independent contractor for the performance of any work, task, job or project.
(107)

Art. 98. Posting of Bond. An EmployerS or indirect employerS may require the contractorS or
subcontractor to furnish a bond equal to the cost of labor under contract, on condition that the
bond will answer for the wages due the employees should the contractorS or subcontractorS, as

the case may be, fail to pay the same. (100a)


Art. 99, Solidary Liability. The provisions of existing laws to the contrary notwithstanding, every
employer or indirect employerS shall be held responsible with his THEIR contractorS or
subcontractorS for any violation of any provision of this Code. For purposes of determining the
extent of their civil liability under this Chapter, they shall be considered as direct employers. (109a)

Chapter VI
WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION

Art. 100. Creation of National Wages and Productivity Commission. There is hereby created
a National Wages and Productivity Commission, hereinafter referred to as the Commission, which

shall be attached to the Department-ef Laber-and_Employment{DOLE) for policy and program

coordination. (120)

Art, 101, Powers and Functions of the Commission. The Commission shall have the following
powers and functions:

{@) 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;

(b) To formulate policies and guidelines on wages, incomes and productivity improvement at
the enterprise, industry and national levels;

(©) TO DETERMINE AND FIX THE INDUSTRY MINIMUM WAGE RATES AND ISSUE
‘THE CORRESPONDING WAGE ORDERS THROUGH INDUSTRY BOARDS;

(qd) TO RECEIVE, PROCESS AND ACT ON APPLICATIONS FOR EXEMPTION FROM
PRESCRIBED WAGE RATES AS PROVIDED BY THIS CODE;

(©) To prescribe rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regi incial,or industry levels;

() TO ESTABLISH INDUSTRY TRIPARTITE WAGES AND PRODUCTIVITY BOARDS
IN INDUSTRIES WHERE IT DEEMS APPROPRIATE;



(g) To undertake studies, researches and surveys necessary for the attainment of its functions

and objectives, and to collect and compile GENDER-DISAGGREGATED data and
isseminate information on wages, INCLUDING GENDER GAPS IN
ited to,

periodically

WAGES, and productivity and other related information, including, but not li

employment, cost-of-living, labor costs, investments and returns;

(h) To review regional_wage-levels-set-by PLANS AND PROGRAMS OF the Regional
NATIONAL INDUSTRY Tripartite Wages and Productivity Boards to determine if
WHETHER these are in-aceordance consistent with preseribed-guidelines-and national
development plans;

() To exercise technical and administrative supervision over the Regional NATIONAL
INDUSTRY Tripartite Wages and Producti

(i) To call, from time to time, a national tripartite conference of representatives of government,

Boards;

workers and employers for the consideration of measures to promote wage rationalization
and productivity; and

(K) To exercise such powers and functions as may be necessary to implement this~Act ITS
MANDATE UNDER THIS CODE.

The Commission shall be composed of the Seeretary-of Labor-and-Employment SOLE as ex-
officio CHAIRmaa, the Director-General of the National Economic and Development Authority
(NEDA) as ex-officio vice-CHAIRman, and two (2) members each from workers’ and employers’
sectors: PROVIDED, THAT ONE OF THE MEMBERS OF EACH WORKERS’ AND
EMPLOYERS’ REPRESENTATIVES SHALL BE A WOMAN. THE WORKERS AND
EMPLOYERS’ REPRESENTATIVES shall be appointed by the President of the
recommendation of the Seeretary-of Labor and Employment SOLE to be made on the basis of the

list of nominees submitted by the workers’ and employers’ sectors, respectively, and who shall

ippines upon

serve for a term of five (5) years. The Executive Director of the Commission shall also be amember

of the Commission.

The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two

(2) Deputy Directors, who shall be appointed by the President of the Philippines, upon the

recommendation of the Secretary of Labor-and Employment SOLE.



‘The Executive Director shall have the same rank, salary, benefits and other emoluments as that of
a Department Assistant Secretary, while the Deputy Directors shall have the same rank, salary,

benefits and other emoluments as that of a Bureau Director. The members of the Commission

representing labor and management shall have the same rank, emoluments,

benefits as those prescribed by law for labor and management representatives in the Employees’

Compensation Commission. (121a)

Art. 102. Creation of Regions! NATIONAL INDUSTRY Tripartite Wages and Productivity
Boards. There is hereby-e e-Wage oduetivit ina
referred.to-as Regional Boards, in-all regions, inchiding autonomous-regions-as-may be established
bydaw: THE COMMISSION SHALL ESTABLISH INDUSTRY TRIPARTITE WAGES AND
PRODUCTIVITY BOARDS IN INDUSTRIES WHERE IT DEEMS APPROPRIATE,
HEREINAFTER REFERRED TO AS THE NATIONAL INDUSTRY BOARDS. The
Commission shall determine the offices/headquarters of the respective Regional INDUSTRY
Boards.

The-Regional INDUSTRY Boards shall have the following powers and functions in their

respective territorial jurisdictions INDUSTRIES:

(a) To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective-regions INDUSTRIES;

(b) To determine and fix minimum wage rates applicable in their regions,provinees or industries
therein and to issue the corresponding wage orders, subject to guidelines issued by the
Commission;

(©) Toundertake studies, researches, and surveys necessary for the attainment of their functions,

objectives and programs, and to collect and compile data on wages, incomes, producti
and other related information and periodically disseminate the same;

(4) To coordinate with the other Regional INDUSTRY Boards as may be necessary to attain the
policy and intention of this Code;

Fo-receive, process-and-act-on applications for exemption from prescribed wage rates-as-may-be
provided by lawerany Wage Order; and



{e) To exercise such other powers and functions as may be necessary to carry out their mandate

under this Code.

hp ph this Article, shall be through the respectiv ionaleffices-ofthe

the Regional Boards shall have technical supervision over the regional office of the Dep f

Labor and Employment-with respect to-the implementation of said plans, programs-and projects:

Each Regional INDUSTRY Board shall be composed of the Regional Director of the Department

De pment “ arument of Tre dHrdisiry as vier dA CHAIR
‘WHO MUST SERVE FULL-TIME FOR A TERM OF THREE (3) YEARS. THE CHAIR MUST
HAVE AT LEAST FIVE (5) YEARS’ EXPERIENCE IN INDUSTRIAL RELATIONS. IN
ADDITION, two (2) members each from workers’ and employers’ sectors OF THE INDUSTRY
CONCERNED whe shall be appointed by the President of the Philippines, upon the
recommendation of the Seeretary-of Labor-and Employment SOLE, to be made on the basis of the
list of nominees submitted by the workers’ and employers’ sectors, respectively, and who shall
serve for a term of five THREE (3) years.

Each Regional INDUSTRY Board to be headed by its chairman shall be assisted by a Secretariat.
(122a)

Art. 103. Wage Order. Whenever conditions so warrant, the Regiensl-Beard COMMISSION
AND INDUSTRY BOARDS shall investigate and study all pertinent facts; and based on the
standards and criteria herein prescribed, shall proceed to determine whether a Wage Order should
be issued. Any such Wage Order shall take effect after fifteen (15) days from its complete
publication in at least ene TWO (2) newspaperS of general circulation in-the-region AND A COPY
SHALL BE DEPOSITED WITH THE OFFICE OF NATIONAL ADMINISTRATIVE
REGISTER (ONAR).


In the performance of its wage-determining functions, the Regional Beard COMMISSION AND
INDUSTRY BOARDS shall conduct * public hearings/consultations, giving notices to employees’

and employers’ groups, and other interested parties.

Any party aggrieved by the Wage Order issued by the Regional Beard INDUSTRY BOARDS
may appeal such order to the Commission within ten (10) calendar days from the publication of
such order. It shall be mandatory for the Commission to decide such appeal within sixty (60)
calendar days from the filing thereef. WAGE ORDERS ISSUED, AFFIRMED OR MODIFIED
BY THE COMMISSION SHALL NOT BE APPEALABLE.

The filing of the appeal does not stay the order unless the person appealing such order shall file
with the Commission, an undertaking with a surety or sureties satisfactory to the Commission for
the payment to the employees affected by the order of the corresponding increase, in the event
such order is affirmed. (As amended by Republic Act No. 6727, June 9, 1989) (123a)

Art. 104. Standards/Criteria for Minimum Wage Fixing. The regione! NATIONAL minimum
wages to be established by the Regional Beards COMMISSION OR INDUSTRY BOARDS shall
be as nearly adequate as is economically feasible to mai

necessery-for-the-health,-efficieney-and_general well being-of the employees REALIZE THE
CONSTITUTIONAL GUARANTEE OF A LIVING WAGE within the framework of the national
economic and social development program. In the determination of such national minimum wage,
the RegionelBoards COMMISSION OR INDUSTRY BOARDS shall, among other relevant

factors, consider the following:
@)
(b) Wage adjustment

-vis the consumer price index;

(©) The cost of living and changes or increases therein;

(a) The needs of workers and their families;

(e) Improvements in standards of living;
(BD.  The prevailing wage levels;
(g) Fair return of the capital invested and capacity to pay of employers;


(h) Effects on employment generation and family income; and

(i) The equitable distribution of income and wealth along the imperatives of economic and
social development; AND
(j) REGIONAL CIRCUMSTANCES, IF WARRANTED.

THE MINIMUM WAGE ISSUED BY AN INDUSTRY BOARD MAY NOT BE UNIFORM
FOR THE INDUSTRY IF WARRANTED BY REGIONAL CIRCUMSTANCES.

The wages prescribed in accordance with the provisions of this Title shall be the standard
prevailing NATIONAL minimum wagesin-every-region. These wages may include wages varying

such local differentiation proper and necessary te-effeetuate the purpose of this Title DEPENDING

ON THE INDUSTRY.

Any PersonS, company COMPANIES, corporationS, partnershipS or any other entity ENTITIES
engaged in business shall file and register annually with the Commission and the National
‘Statisties Office PHILIPPINE STATISTICS AUTHORITY, an itemized listing of their labor
component, specifying the names of their workers and employees below the managerial level,
including Jeamers; apprentices and disabled/handicapped workers WITH DISABILITY 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
the Regional Beard COMMISSION OR INDUSTRY BOARD results in distortions of the wage
structure within an establishment, the employerS and the unionS shall negotiate to correct the
distortions. Any dispute arising from wage distortions shall be resolved through the grievance
procedure under their collective bargaining agreement and, if it remains unresolved, through
voluntary arbitration. Unless otherwise agreed by the parties in writing, such dispute shall be
decided by the voluntary arbitrators within ten (10) calendar days ftom the time said dispute was
referred to voluntary arbitration.


In cases where there are no collective agreements or recognized labor unions, the employers and
workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10)
calendar days of conciliation, shall be referred to the appropriate branch-of the-National-Leber
Relations Commission (NERC) COURT OF LABOR RELATIONS. It shall be mandatory for the
NERC COURT OF LABOR RELATIONS to conduct continuous hearings and decide the dispute
within twenty (20) calendar days from the time said

ispute is submitted for compulsory

arbitration.

The pendency of a dispute arising from a wage distortion shall not in any way delay the

yy of any increase in prescribed wage rates pursuant to the provisions of law or wage

‘Asused herein, a wage distortion shall mean a situation where an increase in prescribed wage rates
results in the elimination or severe contraction of intentional quantitative differences in wage or
salary rates between and among employee groups in an establishment as to effectively obliterate
the distinctions embodied in such wage structure based on skills, length of service, or other logical

bases of differentiation.

1 workers paid by result, including those who are paid on piecework, takay, pakyaw or task
basis, shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a
proportion for working less than eight (8) hours.

All recognized Jeamership-and apprenticeship agreements shall be considered automatically

modified insofar as their wage clauses are concerned to reflect the prescribed wage rates. (124a)

ART 105. EXEMPTION. OTHER THAN THOSE EXEMPTED BY THIS CODE, ALL
WORKERS SHALL BE PAID THE APPLICABLE NATIONAL MINIMUM WAGE.

FINANCIALLY DISTRESSED EMPLOYERS MAY APPLY FOR EXEMPTION FROM THE
NATIONAL MINIMUM WAGE WITH THE COMMISSION BUT ONLY FOR A NON-


EXTENDIBLE MAXIMUM PERIOD OF THREE (3) YEARS FOR EVERY INCREASE
PROVIDED BY WAGE ORDER.

IN THE EVENT THAT APPLICATIONS FOR EXEMPTIONS ARE DENIED, THE COVERED
EMPLOYEES SHALL RECEIVE THE APPROPRIATE DIFFERENTIAL PLUS INTEREST
OF ONE PERCENT (1%) PER MONTH RETROACTIVE TO THE EFFECTIVITY OF THE
APPROPRIATE WAGE ORDER. (new)

Art. 106, Freedom to Bargain. No wage order shall be construed to prevent workers in particular
firms or enterprises or industries from bargaining for higher wages with their respective employers.
(125)

Art. 107. Prohibition against Injunction. No preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal or other entity against any proceedings
before the Commission or the Regional INDUSTRY BOARDS. (126a)

Art. 108. Non-Diminution of Benefits. No wage order issued by any Regional Beard INDUSTRY
BOARD shall provide for wage rates lower than the statutory minimum wage rates prescribed by
Congress. (127a)

Chapter VII
ADMINISTRATION AND ENFORCEMENT

Art. 109. Visitorial and Enforcement Power. (a) The Seeretary-of Labor and Employment SOLE
orhis THEIR duly authorized representatives, including labor regulation officers, shall have access
to employer's records and premises at any time of the day or night whenever work is being
undertaken therein, and the right to copy therefrom, to question any employee and investigate any
fact, condition or matter which may be necessary to determine violations or which may aid in the
enforcement of this Code and of any labor law, wage order or rules and regulations issued pursuant

thereto.


(b) Notwithstanding the provisions of Articles 429-and247 110 AND 210 of this Code to the
exists, the SOLE or his

contrary, and in cases where the relationship of employer-employee
THEIR duly authorized representatives shall have the power to issue compliance orders to give
effect to the labor standards provisions of this Code and other labor legislation based on the
findings of labor employment and enforcement officers or industrial safety engineers made in the
course of inspection. The Secretary SOLE or his THEIR duly authorized representatives shal

writs of execution to the appropriate authority for the enforcement of their orders, except in cases

ue

where the employer contests the findings of the labor employment and enforcement officer and
raises issues supported by documentary proofs which were not considered in the course of
inspection, WHERE AN ISSUE ON THE EXISTENCE OF AN EMPLOYER-EMPLOYEE
RELATIONSHIP IS RAISED, HOWEVER, THE SOLE HAS THE POWER TO DETERMINE,
IN THE INTERIM THE EMPLOYER-EMPLOYEE RELATIONSHIP AND FROM THERE TO.
DECIDE WHETHER OR NOT TO ISSUE COMPLIANCE ORDERS, SUBJECT TO JUDICIAL,
REVIEW.

‘An order issued by the duly authorized representative of the Seeretary-of Labor and Employment
SOLE under this Article may be appealed to the latter. In case said order involves a monetary
award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond
issued by a reputable bonding company duly accredited by the Seeretary-of Labor and Employment
‘SOLE in the amount equivalent to the monetary award in the order appealed from.

(c) The Secretary-of Labor-and-Empleyment SOLE may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-compliance with
the law or implementing rules and regulations poses grave and imminent danger to the health and
safety of workers in-the-workplace OR TO OTHER PERSONS. Within twenty-four (24) hours, a
hearing shall be conducted to determine whether an order for the stoppage of work or suspension
of operations shall be lifted or not. In case the violation is attributable to the fault of the employer,
he THE EMPLOYER shall pay the employees concemed their salaries, er-wages AND ALL
OTHER BENEFITS during the period of such stoppage of work or suspension of operation.


(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render
ineffective the orders of the Seoretary-ef Labor-and-Employment SOLE or kis THEIR duly
authorized representatives issued pursuant to the authority granted under this Article, and no
inferior LOWER court or entity shall issue temporary or permanent injunction or restraining order
or otherwise assume jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.

(¢) Any government employee found guilty of violation of, or abuse of authority, under this Article
shall, after appropriate administrative investigation, be subject to summary dismissal from the
service, WITHOUT PREJUDICE TO THE FILING OF APPROPRIATE CRIMINAL AND
CIVIL CASES.

0) of Labor and-Employnre b
SHALL, FOR A PERIOD OF FIVE (5) YEARS, to keep and maintain sueh employment records
as-may-be necessary in aid of hisTHE visitorial and enforcement powers under this Code OF THE
SOLE. (1282)

. L ad-En . e Employers

Art. 110. Recovery of Wages, Simple Money Claims and Other Benefits. Upon complaint of
any interested party, the Regional Director of the Department of Labor and EmploymentDOLE or
any of the duly authorized hearing officers of the Department is empowered, through summary
proceeding and after due notice, to hear and decide any matter involving the recovery of wages
and other monetary claims and benefits, including legal interest, owing to an employee er person

odin household-service-or-househelper—under-this-Code, arising from

employer-employee relations: Provided, That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate money claims of each employee oF

househelper does not exceed Five-thousand-peses-(P5,000:00) TWENTY-FIVE THOUSAND
PESOS (P25,000.00). The Regional Director or hearing officer shall decide or resolve the

complaint within thirty (30) calendar days from the date of the filing of the same. Any sum thus
recovered on behalf of any employeeS or househelper pursuant to this Article shall be held in a
special deposit account by, and shall be paid on order of, the Seeretary-of Labor and Employment

SOLE or the Regional Director directly to the employeeS or-househelper concerned. Any such


sum not paid to the employeeS or househelper because he THEY cannot be located after diligent
and reasonable effort to locate him THEM within a period of three (3) years, shall be held as a

special fund of the Department-of Laber-and_Employment-DOLE 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-FOLLOWING grounds:

(A) IF THERE IS PRIMA FACIE EVIDENCE OF ABUSE OF DISCRETION ON THE PART
OF THE REGIONAL DIRECTOR OR HEARING OFFICER;

(B) IF THE DECISION, ORDER OR AWARD WAS SECURED THROUGH FRAUD OR,
COERCION, INCLUDING GRAFT AND CORRUPTION;

(C) IF MADE PURELY ON QUESTIONS OF LAW; AND

(D) IF SERIOUS ERRORS IN THE FINDINGS OF FACTS ARE RAISED WHICH WOULD
CAUSE GRAVE OR IRREPARABLE DAMAGE OR INJURY TO THE APPELLANT.

; THE APPEAL SHALL BE FILED within five (5) calendar
days from receipt of a copy of said decision or resolution, to the Netional_Labor-Relations
‘Commission COURT OF LABOR RELATIONS which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its rules.

The Seeretary-of Labor and Employment SOLE or his THE duly authorized representative may

supervise the payment of unpaid wages and other monetary claims and benefits, including legal

interest, found owing to any employeeS. (129a)

Title IIL
WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES WORKERS


Chapter I
EMPLOYMENT OF WOMEN CHILDREN

Art. 111, Minimum Employable Age.
(a) Ne-ehild (1) CHILDREN below fifteen (15) years of age shall NOT be employed, except when

(2)

he THEY works directly under the sole responsibility of his THEIR parents or guardian and

WHERE ONLY MEMBERS OF THE EMPLOYER'S FAMILY ARE EMPLOYED;

PROVIDED, THAT THEIR EMPLOYMENT NEITHER ENDANGERS THEIR LIFE,

SAFETY, HEALTH AND MORALS, NOR IMPAIRS THEIR NORMAL

DEVELOPMENT: PROVIDED, FURTHER, THAT THE PARENT OR GUARDIAN

SHALL PROVIDE THE SAID CHILDREN WITH THE PRESCRIBED PRIMARY AND

SECONDARY EDUCATION; PROVIDED, FINALLY, THAT his THEIR employment

does not in any way interfere with his THEIR schooling.

CHILDREN BELOW FIFTEEN (15) YEARS OF AGE MAY BE EMPLOYED IN PUBLIC

ENTERTAINMENT OR INFORMATION THROUGH CINEMA, THEATER, RADIO,

TELEVISION OR OTHER MEDIA WHERE IT IS ESSENTIAL: PROVIDED, THE

EMPLOYMENT CONTRACT IS CONCLUDED BY THE CHILDREN'S PARENTS OR

LEGAL GUARDIAN, WITH THE EXPRESS AGREEMENT OF THE CHILDREN

CONCERNED, IF POSSIBLE, AND THE APPROVAL OF THE DOLE: AND PROVIDED,

THAT THE FOLLOWING REQUIREMENTS IN ALL INSTANCES ARE STRICTLY

COMPLIED WITH:

(a) THE EMPLOYER SHALL ENSURE THE PROTECTION, HEALTH, SAFETY,
MORALS AND NORMAL DEVELOPMENT OF THE CHILD;

{b) THE EMPLOYER SHALL INSTITUTE MEASURES TO PREVENT THE CHILD'S
EXPLOITATION OR DISCRIMINATION TAKING INTO ACCOUNT THE
SYSTEM AND LEVEL OF REMUNERATION, AND THE DURATION AND
ARRANGEMENT OF WORKING TIME; AND

(©) THE EMPLOYER SHALL FORMULATE AND IMPLEMENT, SUBJECT TO THE
APPROVAL AND SUPERVISION OF COMPETENT AUTHORITIES, A
CONTINUING PROGRAM FOR TRAINING AND SKILLS ACQUISITION OF
THE CHILD.


(3) CHILDREN BELOW EIGHTEEN (18) YEARS OF AGE MAY BE EMPLOYED AS
MODELS IN COMMERCIALS OR ADVERTISEMENTS, PROVIDED, THAT
CHILDREN SHALL NOT APPEAR IN COMMERCIALS OR ADVERTISEMENTS
PROMOTING ALCOHOLIC BEVERAGES, INTOXICATING DRINKS, TOBACCO
AND ITS BYPRODUCTS AND VIOLENCE.

IN THE EXCEPTIONAL CASES IN PARAGRAPHS 2 AND 3, WHERE SUCH
CHILDREN MAY BE EMPLOYED, EMPLOYERS SHALL FIRST SECURE, BEFORE
ENGAGING SUCH CHILDREN, A WORK PERMIT FROM THE DOLE WHICH SHALL
ENSURE OBSERVANCE OF THE ABOVE REQUIREMENTS.

THE DOLE SHALL PROMULGATE RULES AND REGULATIONS NECESSARY FOR
THE EFFECTIVE IMPLEMENTATION OF THIS SECTION.

6) (4) Any person fifteen (15) and BELOW eighteen (18) years of age may be employed for such
number of hours and such periods of the day as-determined by the Secretary of Labor-and
‘Employment in-appropriate regulations PURSUANT TO REPUBLIC ACT NO. 9231.

(2) The foregoing provisions shall in no case allow the employment of a person below eighteen

(18) years of age in an undertaking which is

the-Seeretary_of Labor_and—Empleyment CONSIDERED AS WORST FORMS OF CHILD
LABOR UNDER REPUBLIC ACT NO. 9231. (137a)

Chapter II

EMPLOYMENT OF DOMESTIC WORKERS

ART. 112. NON-APPLICABILITY TO DOMESTIC WORKERS. DOMESTIC WORKERS
SHALL BE COVERED BY R.A. NO. 10361. (new)

Chapter IIL
EMPLOYMENT OF HOMEWORKERS


ART. 113. Coverage. This CHAPTER shall apply to persons who perform industrial homework

for employers, OR contractors. (new)

ART. 114. DEFINITIONS. AS USED IN THIS CHAPTER, THE FOLLOWING TERMS
SHALL HAVE THE MEANINGS INDICATED HEREUNDER:

(a)

(b)

©

@

“INDUSTRIAL HOMEWORK” IS A SYSTEM OF PRODUCTION UNDER WHICH
WORK FOR EMPLOYERS OR CONTRACTORS IS CARRIED OUT BY
HOMEWORKERS AT THEIR HOME. MATERIALS MAY OR MAY NOT BE

FURNISHED BY THE EMPLOYERS OR CONTRACTORS. IT DIFFERS FROM.

REGULAR FACTORY PRODUCTION PRINCIPALLY IN THAT, IT IS A

DECENTRALIZED FORM OF PRODUCTION...

“INDUSTRIAL HOMEWORKER” MEANS WORKERS ENGAGED IN INDUSTRIAL

HOMEWORK.

“HOME” MEANS ANY ROOM, HOUSE, APARTMENT OR OTHER PREMISES USED

REGULARLY, IN WHOLE OR IN PART, AS DWELLING PLACE, EXCEPT THOSE

SITUATED WITHIN THE PREMISES OR COMPOUND OF EMPLOYERS OR

CONTRACTORS AND THE WORK PERFORMED THEREIN IS UNDER THE ACTIVE

OR PERSONAL SUPERVISION BY OR FOR THE LATTER.

“EMPLOYERS” ARE NATURAL OR ARTIFICIAL PERSONS WHO, FOR THEIR OWN

ACCOUNT OR BENEFIT, OR ON BEHALF OF ANY PERSON RESIDING OUTSIDE

THE PHILIPPINES, DIRECTLY OR INDIRECTLY, OR THROUGH ANY EMPLOYEE,

AGENT, OR ANY OTHER PERSON:

(1) DELIVER OR CAUSE TO BE DELIVERED ANY GOODS, ARTICLES OR
MATERIALS TO BE PROCESSED OR FABRICATED IN OR ABOUT A HOME
AND THEREAFTER TO BE RETURNED OR TO BE DISPOSED OF OR
DISTRIBUTED IN ACCORDANCE WITH THEIR DIRECTION; OR

(2) SELL ANY GOODS, ARTICLES OR MATERIALS FOR THE PURPOSE OF
HAVING SUCH GOODS OR ARTICLES PROCESSED IN OR ABOUT A HOME
AND THEN REPURCHASES THEM THEMSELVES OR THROUGH ANOTHER
AFTER SUCH PROCESSING.


(e) “CONTRACTOR” REFERS TO AN ARRANGEMENT WHEREBY A PRINCIPAL
AGREES TO FARM OUT TO A CONTRACTOR THE PERFORMANCE OR
COMPLETION OF A SPECIFIC JOB OR WORK WITHIN A DEFINITE OR
PREDETERMINED PERIOD, REGARDLESS OF WHETHER SUCH JOB OR WORK IS
TO BE PERFORMED OR COMPLETED WITHIN OR OUTSIDE THE PREMISES OF
THE PRINCIPAL.

(f) “PROCESSING? MEANS MANUFACTURING, FABRICATING, FINISHING,
REPAIRING, ALTERING, PACKING, WRAPPING OR HANDLING IN ANY WAY
CONNECTED WITH THE PRODUCTION OR PREPARATION OF AN ARTICLE OR
MATERIAL.

(g) “DEPARTMENT” MEANS THE DEPARTMENT OF LABOR AND EMPLOYMENT.

(new)

ART. 115. SELF-ORGANIZATION. HOMEWORKERS SHALL HAVE THE RIGHT TO
FORM, JOIN OR ASSIST ORGANIZATIONS OF THEIR OWN CHOOSING, IN
ACCORDANCE WITH LAW. (new)

ART. 116. REGISTRATION OF HOMEWORKERS’ ORGANIZATION. ANY
APPLICANT HOMEWORKER ORGANIZATION OR ASSOCIATION SHALL ACQUIRE
LEGAL PERSONALITY, AND SHALL BE ENTITLED TO THE RIGHTS AND PRIVILEGES
GRANTED BY LAW TO LEGITIMATE LABOR ORGANIZATIONS UPON ISSUANCE OF
THE CERTIFICATE OF REGISTRATION BASED ON THE FOLLOWING REQUIREMENTS:
(a) PAYMENT OF REGISTRATION FEE AS DETERMINED BY THE DEPARTMENT;
(b) THE NAMES OF ITS OFFICERS, THEIR ADDRESSES, THE PRINCIPAL ADDRESS
OF THE HOMEWORKERS ORGANIZATION, THE MINUTES OF THE
ORGANIZATIONAL MEETINGS AND THE LIST OF WORKERS WHO
PARTICIPATED IN SUCH MEETINGS;
(©) THENAMES OF ALL ITS MEMBERS COMPRISING AT LEAST TWENTY PERCENT
(20%) OF ALL THE WORKERS IN THE BARGAINING UNIT WHERE IT SEEKS TO.
OPERATE, IF APPLICABLE;


(d) IF THE APPLICANT HAS BEEN IN EXISTENCE FOR ONE OR MORE YEARS,
COPIES OF ITS ANNUAL FINANCIAL REPORTS; AND

(e) FOUR COPIES OF THE CONSTITUTION AND BY-LAWS OF THE APPLICANT
ORGANIZATION, THE MINUTES OF ITS ADOPTION OR RATIFICATION AND THE
LIST OF MEMBERS WHO PARTICIPATED IN IT. (new)

ART. 117. REGISTRATION OF EMPLOYERS AND CONTRACTORS. THE
DEPARTMENT SHALL, AS SOON AS POSSIBLE, CONDUCT CONSULTATION
MEETINGS WITH GOVERNMENT AGENCIES REQUIRING REGISTRATION OF
EMPLOYERS AND DETERMINE IF THE DATA BEING SUPPLIED BY THE
REGISTRATION FORMS OF SUCH AGENCIES ARE THE SAME AS OR SIMILAR TO
THOSE NEEDED BY THE DEPARTMENT IN THE IMPLEMENTATION OF THIS
REGULATIONS. IF THE REGISTRATION FORMS OF OTHER AGENCIES DO NOT
PROVIDE THE DATA NEEDED BY DOLE, IT SHALL INQUIRE INTO THE POSSIBILITY
OF ADOPTING A COMMON REGISTRATION FORM WITH OTHER AGENCIES THAT
WILL PROVIDE THE DATA NEEDED BY ALL THE AGENCIES CONCERNED.

IN THE CASE OF CONTRACTORS, HOWEVER, THE REGISTRATION SHALL BE
PURSUANT TO DOLE D.O. No. 174-17. (new)

ART. 118. PAYMENT FOR HOMEWORK. IMMEDIATELY UPON RECEIPT OF THE
FINISHED GOODS OR ARTICLES, EMPLOYERS SHALL PAY THE HOMEWORKER OR
THE CONTRACTOR, AS THE CASE MAY BE, FOR THE WORK PERFORMED LESS
CORRESPONDING HOMEWORKERS’ SHARE OF SSS, THE PHILIPPINE HEALTH
INSURANCE CORPORATION (PHILHEALTH), AND THE HOME DEVELOPMENT
MUTUAL FUND OR PAG-IBIG, AND ECC PREMIUM CONTRIBUTIONS WHICH SHALL
BE REMITTED BY THE EMPLOYERS OR CONTRACTORS TO THE APPROPRIATE
AGENCIES WITH THE EMPLOYERS’ SHARE. HOWEVER, WHERE PAYMENT IS MADE
TO A CONTRACTOR, THE HOMEWORKER SHALL LIKEWISE BE PAID IMMEDIATELY
AFTER THE GOODS OR ARTICLES HAVE BEEN COLLECTED FROM THE WORKERS.

(new)


ART. 119. STANDARD RATES. AT THE INITIATIVE OF THE DEPARTMENT OR UPON
PETITION OF ANY INTERESTED PARTY, THE SOLE OR THEIR AUTHORIZED
REPRESENTATIVE SHALL ESTABLISH THE STANDARD OUTPUT RATE OR
STANDARD MINIMUM RATE IN APPROPRIATE ORDERS FOR THE PARTICULAR
WORK OR PROCESSING TO BE PERFORMED BY THE HOMEWORKERS.

THE STANDARD OUTPUT RATES OR PIECE RATES SHALL BE DETERMINED

THROUGH ANY OF THE FOLLOWING PROCEDURES:

(A) TIME AND MOTION STUDIES;

(B) AN INDIVIDUAL/COLLECTIVE AGREEMENT BETWEEN EMPLOYERS AND
WORKERS AS APPROVED BY THE SOLE OR THEIR AUTHORIZED
REPRESENTATIVE;

(C) CONSULTATION WITH REPRESENTATIVES OF EMPLOYERS AND WORKERS
ORGANIZATIONS IN A TRIPARTITE CONFERENCE CALLED BY THE SOLE.

THE TIME AND MOTION STUDIES SHALL BE UNDERTAKEN BY THE REGIONAL
OFFICE HAVING JURISDICTION OVER THE LOCATION OF THE PREMISES USED
REGULARLY BY THE HOMEWORKERS. HOWEVER, WHERE THE JOB OPERATION OR
ACTIVITY IS BEING LIKEWISE PERFORMED BY REGULAR FACTORY WORKERS AT
THE FACTORY OR PREMISES OF EMPLOYERS, THE TIME AND MOTION STUDIES
SHALL BE CONDUCTED BY THE REGIONAL OFFICE HAVING JURISDICTION OVER
THE LOCATION OF THE MAIN UNDERTAKING OR BUSINESS OF EMPLOYERS. PIECE
RATES ESTABLISHED THROUGH TIME AND MOTION STUDIES CONDUCTED AT THE
FACTORY OR MAIN UNDERTAKING OF THE EMPLOYER SHALL BE APPLICABLE TO
THE HOMEWORKERS PERFORMING THE SAME JOB ACTIVITY. THE STANDARD
PIECE RATE SHALL BE ISSUED BY THE REGIONAL OFFICE WITHIN ONE MONTH
AFTER A REQUEST HAS BEEN MADE AT SAID OFFICE.

UPON REQUEST OF THE REGIONAL OFFICE, THE BUREAU OF WORKING
CONDITIONS SHALL PROVIDE ASSISTANCE IN THE CONDUCT OF SUCH STUDIES.


NON-COMPLIANCE WITH THE ESTABLISHED STANDARD RATES CAN BE THE
SUBJECT OF COMPLAINT WHICH SHALL BE FILED AT THE REGIONAL OFFICE. (new)

ART. 120. DEDUCTIONS. EMPLOYERS OR CONTRACTORS SHALL NOT MAKE ANY

DEDUCTION FROM HOMEWORKERS’ EARNINGS FOR THE VALUE OF MATERIALS,

WHICH HAVE BEEN LOST, DESTROYED, SOILED OR OTHERWISE DAMAGED

UNLESS THE FOLLOWING CONDITIONS ARE MET:

(a) THE HOMEWORKERS CONCERNED ARE CLEARLY SHOWN TO BE
RESPONSIBLE FOR THE LOSS OR DAMAGE;

(b) THE HOMEWORKERS ARE GIVEN REASONABLE OPPORTUNITY TO SHOW
CAUSE WHY DEDUCTIONS SHOULD NOT BE MADE;

(©) THE AMOUNT OF SUCH DEDUCTION IS FAIR AND REASONABLE AND SHALL.
NOT EXCEED THE ACTUAL LOSS OR DAMAGE; AND

(d) THE DEDUCTION IS MADE AT SUCH RATE THAT THE AMOUNT DEDUCTED
DOES NOT EXCEED TWENTY PERCENT (20%) OF THE HOMEWORKER’S
EARNINGS IN A WEEK. (new)

ART. 121. CONDITIONS FOR PAYMENT OF WORK.

(a) EMPLOYERS MAY REQUIRE HOMEWORKERS TO REDO THE WORK WHICH HAS
BEEN IMPROPERLY EXECUTED WITHOUT HAVING TO PAY THE STIPULATED
RATE AGAIN.

(b) EMPLOYERS OR CONTRACTORS NEED NOT PAY HOMEWORKERS FOR ANY
WORK WHICH HAS BEEN DONE ON GOODS AND ARTICLES WHICH HAVE BEEN
RETURNED FOR REASONS ATTRIBUTABLE TO THE FAULT OF THE
HOMEWORKER. (new)

ART. 122. VISITORIAL AND ENFORCEMENT POWER. THE REGIONAL DIRECTOR
IN ACCORDANCE WITH ART. 109 SHALL HAVE THE POWER TO ORDER AND
ADMINISTER COMPLIANCE WITH THE PROVISIONS OF THE LAW AND
REGULATIONS AFFECTING THE TERMS AND CONDITIONS OF EMPLOYMENT OF
HOMEWORKERS AND SHALL HAVE THE JURISDICTION IN CASES INVOLVING


VIOLATIONS OF THIS CODE, ANY LABOR LAW, WAGE ORDER OR RULES AND
REGULATIONS ISSUED PURSUANT TO THIS ARTICLE.

COMPLAINTS FOR VIOLATIONS OF LABOR STANDARDS AND THE TERMS AND
CONDITIONS OF EMPLOYMENT INVOLVING MONEY CLAIMS OF HOMEWORKERS
IN AN AMOUNT OF NOT MORE THAN FIVE THOUSAND PESOS (P5,000.00) PER
HOMEWORKER SHALL BE HEARD AND DECIDED BY THE REGIONAL DIRECTOR
PURSUANT TO ART. 110. (new)

ART. 123. DUTIES OF EMPLOYERS AND CONTRACTORS. WHENEVER EMPLOYERS
CONTRACT WITH ANOTHER FOR THE PERFORMANCE OF THE EMPLOYER’S WORK,
IT SHALL BE THE DUTY OF SUCH EMPLOYERS TO PROVIDE IN SUCH CONTRACT
THAT THE EMPLOYEES OR HOMEWORKERS OF THE CONTRACTOR SHALL BE PAID
IN ACCORDANCE WITH THE PROVISIONS OF THIS CODE. IN THE EVENT THAT THE
CONTRACTORS FAIL TO PAY THE WAGES OR EARNINGS OF THEIR EMPLOYEES OR
HOMEWORKERS AS SPECIFIED IN THIS RULE, SUCH EMPLOYERS SHALL BE
JOINTLY AND SEVERALLY LIABLE WITH THE CONTRACTORS TO THE WORKERS OF
THE LATTER, TO THE EXTENT THAT SUCH WORK IS PERFORMED UNDER SUCH
CONTRACT, IN THE SAME MANNER AS IF THE EMPLOYEES OR HOMEWORKERS,
WERE DIRECTLY ENGAGED BY THE EMPLOYERS. THE EMPLOYERS, OR
CONTRACTORS, AS THE CASE MAY BE, SHALL ASSIST THE HOMEWORKERS IN THE,
MAINTENANCE OF BASIC SAFE AND HEALTHFUL WORKING CONDITIONS AT THE
HOMEWORKERS’ PLACE OF WORK. (new)

ART. 124. EMPLOYMENT OF CHILDREN AS HOMEWORKERS. THE PROVISIONS
GOVERNING THE EMPLOYMENT OF MINORS UNDER THIS CODE AS WELL AS THE
PROVISIONS ON WORKING CHILDREN UNDER REPUBLIC ACT NO. 9231 SHALL
GOVERN THE EMPLOYMENT OF CHILDREN AS HOMEWORKERS. (new)

ART, 125. PROHIBITIONS FOR HOMEWORK. NO HOMEWORK SHALL BE
PERFORMED ON THE FOLLOWING:


(1) EXPLOSIVES, FIREWORKS AND ARTICLES OF LIKE CHARACTER;

(2) DRUGS AND POISONS; AND

(3) OTHER ARTICLES, THE PROCESSING OF WHICH REQUIRES EXPOSURE TO
TOXIC SUBSTANCES. (new)

ART. 126. ASSISTANCE TO REGISTERED HOMEWORKERS’ ORGANIZATIONS,

EMPLOYERS, AND CONTRACTORS. THE REGIONAL OFFICE SHALL PROVIDE

TECHNICAL ASSISTANCE TO REGISTERED HOMEWORKERS’ ORGANIZATIONS,

EMPLOYERS, AND CONTRACTORS RELATIVE TO THE FOLLOWING:

(a) INFORMATION ON WAGES AND OTHER BENEFITS;

(b) CONDUCT OF TIME AND MOTION STUDIES TO ENSURE FAIR AND REASONABLE,
OUTPUT RATES;

(c) SKILLS TRAINING;

(@) MAINTENANCE OF SAFE AND HEALTHFUL CONDITIONS AT THE WORKPLACE.

(2) INFORMATION ON ENTITLEMENT TO SOCIAL SECURITY AND EMPLOYEES’
COMPENSATION BENEFITS;

() FACILITATION OF LOANS WITH GOVERNMENT AND NON-GOVERNMENT
FINANCIAL INSTITUTIONS; AND

(g) INFORMATION ON HOW TO AVAIL THEMSELVES OF HOUSING PROGRAMS
UNDER PAG-IBIG. (new)

Chapter IV
EMPLOYMENT OF NIGHT WORKERS

‘Art, 127, Coverage. This chapter shall apply to all persons, who shall be employed or permitted

or suffered to work at night, except those employed in agriculture, stock raising, fishing, maritime

transport and inland navigation, during a period of not less than seven (7) consecutive hours,

including the interval from midnight to five o'clock in the morning, to be determined by the

Seoretary-of Labor and-Employment SOLE, after consulting the workers' representatives/labor

organizations and employers.


‘Night worker’ means any employed person whose work requires performance of a substantial
number of hours of night work which exceeds a specified limit. This limit shall be fixed by the

Seeretary-of Labor-and Employment SOLE after consulting the workers’ representatives/labor

organizations and employers. (14a)

Art. 128. Health Assessment. At their request, workers shall have the right to undergo a health

assessment without charge and to receive advice on how to reduce or avoid health problems

associated with their work:

(a) Before taking up an assignment as night workers;

(b) At regular intervals during such an assignment; and

(©) If they experience health problems during such, an assignment which are not caused by
factors other than the performance of night work.

With the exception of a finding of unfitness for night work, the findings of such assessments shall
not be transmitted to others without the workers' consent and shall not be used to their detriment.
(155)

Art. 129, Mandatory Facilities. Suitable first-aid facilities shall be made available for workers
performing night work, including arrangements where such workers, where necessary, can be
taken immediately to a place for appropriate treatment. The employers are likewise required to
provide safe and healthful working conditions, sleeping or resting quarters in the establishment,
and transportation from the work premises to the nearest point of their residence subject-to
exeeptions—and_guidelineste-be AND SUCH OTHER ADEQUATE OR REASONABLE
FACILITIES AS MAY BE provided by the DOLE. (156a)

Art. 130. Transfer. Night workers who are certified as unfit for night work, due to health reasons,

shall be transferred, whenever practicable, to a similar job for which they are fit to work.

If such transfer to a similar job is not practicable, these workers shall be granted the same benefits

as other workers who are unable to work, or to secure employment during such period.


A Night workerS certified as temporarily unfit for night work shall be given the same protection
against dismissal or notice of dismissal as other workers who are prevented from working for
reasons of health. (157a)

Art, 131. Women Night Workers. Measures shall be taken to ensure that an alternative to night
work is available to women workers who would otherwise be called upon to perform such work:
(@) Before and after childbirth, for a period of at least sixteen (16) weeks, which shall be divided
between the time before and after childbirth;
(b) For additional periods, in respect of which a medical certificate is produced stating that said
additional periods are necessary for the health of the mother or child:
(1) During pregnancy;
(2) During a specified time beyond the period, after childbirth is fixed pursuant to
subparagraph (a) above, the length of which shall be determined by the DOLE after

consulting the labor organizations and employers.

During the periods referred to in this article:

(1) A-woman-worker WOMEN WORKERS shall not be dismissed or given notice of dismissal,
except for just or authorized causes provided for in this Code that are not connected with
pregnancy, childbirth and childcare responsi

(2) A-women-sworker WOMEN WORKERS shall not lose the benefits regarding her THEIR
status, seniority, and access to promotion which may attach to her THEIR regular night work

position.

Pregnant women and nursing mothers may be allowed to work at night only if a competent
physician, other than the company physician, shall certify their fitness to render night work, and
specify, in the case of pregnant employees, the period of the pregnancy that they can safely work.

The measures referred to in this article may include transfer to day work where this is possible, the

provision of social security benefits or an extension of matemity leave.


The provisions of this article shal! not leave the effect of reducing the protection and benefits
connected with matemity leave under existing laws. (158a)

Art. 132, Compensation. The compensation for night workers in the form of working time, pay
lar benefits shall recognize the exceptional nature of night work. (159)

Art. 133. Social Services. Appropriate social services shall be provided for night workers and,
where necessary, for workers performing night work. (160)

Art. 134, Night Work Schedules. Before introducing work schedules requiring the services of
night workers, the-employer EMPLOYERS shall consult the workers’ representatives/labor
organizations concerned on the details of such schedules and the forms of organization of night
work that are best adapted to the establishment and its personnel, as well as on the occupational
health measures and social services which are required. In establishments employing night
workers, consultation shall take place regularly. (1618)

Chapter V
Handieapped Workers EMPLOYMENT OF WORKERS WITH DISABILITIES
Art. 135. Definition OF TERMS. Handieapped-workers-a ‘

--FOR PURPOSES OF THIS ACT,

THESE TERMS ARE DEFINED AS FOLLOWS:

(a) DISABLED—PERSONS—“WORKERS WITH DISABILITY’ ARE THOSE SUFFERING
FROM RESTRICTION OF DIFFERENT ABILITIES, AS A RESULT OF A MENTAL,
PHYSICAL OR SENSORY IMPAIRMENT, TO PERFORM AN ACTIVITY IN THE
MANNER OR WITHIN THE RANGE CONSIDERED NORMAL FOR A HUMAN
BEING;

(b) “IMPAIRMENT? 1S ANY LOSS, DIMINUTION OR ABERRATION OF
PSYCHOLOGICAL, PHYSIOLOGICAL, OR ANATOMICAL STRUCTURE OR
FUNCTION;


(c) “DISABILITY” IS A CONDITION WHICH SHALL MEAN (1) AN PHY¥SICAL-OR
MENFAL IMPAIRMENT THAT SUBSTANTIALLY LIMITS ONE OR MORE
PSYCHOLOGICAL, PHYSIOLOGICAL OR ANATOMICAL FUNCTION OF AN
INDIVIDUAL OR ACTIVITIES OF SUCH INDIVIDUAL; (2) A RECORD OF SUCH AN
IMPAIRMENT; OR (3) BEING REGARDED AS HAVING SUCH AN IMPAIRMENT;

(d) “HANDICAP” REFERS TO A DISADVANTAGE FOR A GIVEN INDIVIDUAL
RESULTING FROM AN IMPAIRMENT, THAT LIMITS OR PREVENTS THE
FUNCTIONS OR ACTIVITY, THAT IS CONSIDERED NORMAL GIVEN THE AGE,
SEX AND GENDER OF THE INDIVIDUAL. (78a)

ART. 136. EQUAL OPPORTUNITY FOR EMPLOYMENT. NO PERSON-WORKER WITH
DISABILITY SHALL BE DENIED ACCESS TO OPPORTUNITIES FOR SUITABLE
EMPLOYMENT. A-QUALIFIED EMPLOYEES WITH DISABILITY SHALL BE SUBJECTED
TO THE SAME TERMS AND CONDITIONS OF EMPLOYMENT, AND-FHE-SAME

UNITED NATIONS CONVENTION ON THE RIGHTS OF PERSONS WITH DISABILITY.

QUALIFIED WORKERS WITH DISABILITY SHALL MEAN INDIVIDUALS WITH
DISABILITY WHO WITH REASONABLE ACCOMMODATIONS CAN PERFORM THE

HOLD OR DESIRE. EMPLOYERS SHALL BE REQUIRED TO PREPARE A WRITTEN
DESCRIPTION OF ESSENTIAL FUNCTIONS OF THE JOB AND ADVERTISE THE SAME
WHICH SHALL BE THE BASIS FOR SELECTION AND HIRING OF APPLICANTS.

AT LEAST ONE PERCENT (1%) OF ALL POSITIONS IN ALL GOVERNMENT AGENCIES,
OFFICES OR CORPORATIONS SHALL BE RESERVED FOR PERSONS- WORKERS WITH
DISABILITY: PROVIDED, THAT PRIVATE CORPORATIONS WITH MORE THAN ONE
HUNDRED (100) EMPLOYEES ARE ENCOURAGED TO RESERVE AT LEAST ONE
PERCENT (1%) OF ALL POSITIONS FOR PERSONS WITH DISABILITY.


WHO HAVE LONG-TERM PHYSICAL, MENTAL, INTELLECTUAL, OR SENSORY

IMPAIRMENTS WHICH IN INTERACTION WITH VARIOUS BARRIERS MAY HINDER
THEIR FULL AND EFFECTIVE PARTICIPATION IN SOCIETY ON AN EQUAL BASIS
‘WITH OTHERS.

PERSONS WITH DISABILITIES ARE ALSO ELIGIBLE AS APPRENTICES DEPENDING
ON THE SKILLS AND CAPACITY TO PERFORM THE NEEDED JOB FUNCTIONS OF THE
EMPLOYER. HOWEVER, ASSESSMENT OF THEIR CAPACITIES AND SKILLS SHALL
BE CONDUCTED BY DSWD OR TESDA_AS THE CASE MAY BE IN ORDER TO
iS AND FITNESS OF THE PERSONS WITH
DISABILITIES, PROVIDED FURTHER THAT AFTER THE LAPSE OF THE PERIOD OF
APPRENTICESHIP, IF FOUND SATISFACTORY IN THE JOB PERFORMANCE, THEY
SHALL BE ELIGIBLE FOR REGULAR EMPLOYMENT. (new)

ART. 137. APPLICABILITY OF THE MAGNA CARTA FOR DISABLED PERSONS.
ALL OTHER PROVISIONS OF REPUBLIC ACT NO. 7277, AS AMENDED, WHICH ARE
NOT INCONSISTENT HEREWITH ARE DEEMED ADOPTED. (new)
Title VI
Workers with Family Responsibilities

Chapter I
ities for Workers with Family Responsibilities

Art. 138. Facilities for Women WORKERS. The Seeretary-of Labor and- Employment SOLE
shall establish standards that will ensure the safety and health of women employees. Inappropriate



(©)-Fo establish separate toilet rooms-and lavatories formen-and women and provide atleast-a
(Fo THE EMPLOYERS SHALL BE REQUIRED TO establish a nursery in a workplace for the
benefit of women employees thereinvand

Art. 139. Family Planning Services; Incentives for Family Planning.

(a) Establishments which are required by law to maintain a clinic or infirmary shall provide free
family planning services to their employees which shall include but-net-betimitedto,the
. i i 4 ‘ iees FAMILY PLANNING

DEVICES.

(b) In coordination with other agencies of the government engaged in the promotion of family
planning, the Department-of Labor-and- Employment DOLE shall develop and prescribe
incentive bonus schemes to encourage family planning among workers in any establishment

or enterprise. (132a)

ART. 140. ESTABLISHMENT OF LACTATION STATIONS. IT IS HEREBY MANDATED
THAT ALL HEALTH AND NON-HEALTH FACILITIES, ESTABLISHMENTS OR
INSTITUTIONS SHALL ESTABLISH LACTATION STATIONS. THE LACTATION
STATIONS SHALL BE ADEQUATELY PROVIDED WITH THE NECESSARY EQUIPMENT
AND FACILITIES, SUCH AS: LAVATORY FOR HAND-WASHING, UNLESS THERE IS AN
EASILY-ACCESSIBLE LAVATORY NEARBY; REFRIGERATION OR APPROPRIATE
COOLING FACILITIES FOR STORING EXPRESSED BREASTMILK; ELECTRICAL
OUTLETS FOR BREAST PUMPS; A SMALL TABLE; COMFORTABLE SEATS; AND
OTHER ITEMS, THE STANDARDS OF WHICH SHALL BE DEFINED BY THE
DEPARTMENT OF HEALTH. THE LACTATION STATION SHALL NOT BE LOCATED IN
THE TOILET.

IN ADDITION, ALL HEALTH AND NON-HEALTH FACILITIES, ESTABLISHMENTS OR
INSTITUTIONS SHALL TAKE STRICT MEASURES TO PREVENT ANY DIRECT OR


INDIRECT FORM OF PROMOTION, MARKETING, AND/OR SALES OF INFANT
FORMULA AND/OR BREASTMILK SUBSTITUTES WITHIN THE LACTATION
STATIONS, OR IN ANY EVENT OR CIRCUMSTANCES WHICH MAY BE CONDUCIVE
TO THE SAME.

APART FROM THE SAID MINIMUM REQUIREMENTS, ALL HEALTH AND NON-
HEALTH FACILITIES, ESTABLISHMENTS OR INSTITUTIONS MAY PROVIDE OTHER
SUITABLE FACILITIES OR SERVICES WITHIN THE LACTATION STATION, ALL OF
WHICH, UPON DUE SUBSTANTIATION, SHALL BE CONSIDERED ELIGIBLE FOR
PURPOSES OF SECTION 14 OF FHIS-ACF REPUBLIC ACT NO. 7600, AS AMENDED.

(new)

Chapter II

Workers’ Leaves

ART. 141, PATERNITY LEAVE. NOTWITHSTANDING ANY LAW, RULES AND
REGULATIONS TO THE CONTRARY, EVER¥ MARRIED MALE EMPLOYEES IN
THE PRIVATE AND PUBLIC SECTORS SHALL BE ENTITLED TO A PATERNITY
LEAVE OF AT LEAST SEVEN (7) DAYS WITH FULL PAY FOR THE FIRST FOUR (4)
DELIVERIES OFTHE LEGITIMATE SPOUSE WITH WHOM HES THEY ARE
COHABITING; PROVIDED, THAT WHERE THE EMPLOYEES ARE NOT MARRIED, THEY
SHOULD AT LEAST BE COHABITING WITH THE OTHER AS PARTNER FOR AT LEAST
FIVE (5) YEARS. FHE MALE EMPLOYEES APPLYING FOR PATERNITY LEAVE SHALL
NOTIFY HIS EMPLOYERS OF THE PREGNANCY OF HIS-THEIR LEGITIMATE SPOUSE
OR PARTNER AND THE EXPECTED DATE OF SUCH DELIVERY.

FOR PURPOSES OF THIS ACFPROVISION, DELIVERY SHALL INCLUDE
CHILDBIRTH OR ANY MISCARRIAGE. (new)

ART. 142, PARENTAL LEAVE. IN ADDITION TO OTHER LEAVE PRAHLEGES
BENEFITS UNDER EXISTING LAWS, PARENTAL LEAVE OF NOF-MORE-FHAN-AT



LEAST SEVEN (7) WORKING DAYS EVERY YEAR SHALL BE GRANTED TO AN¥ SOLO
PARENT-EMPLOYEES WHO HASHAVE RENDERED SERVICE OF AT LEAST ONE (1)
YEAR. THE SEVEN-DAY PARENTAL LEAVE SHALL BE NON-CUMULATIVE.

"PARENTAL LEAVE" SHALL BE GRANTED TO ENABLE EMPLOYEES TO PERFORM
PARENTAL DUTIES AND RESPONSIBILITIES WHERE PHYSICAL PRESENCE IS
REQUIRED. (new)

ART. 143, PARENTAL LEAVE FOR ADOPTERS. PERSONS WHO HAVE LEGALLY
ADOPTED A MINOR, SHALL, AFTER THE ISSUANCE OF THE PRE-ADOPTION
PLACEMENT AUTHORITY ISSUED BY THE DEPARTMENT OF SOCIAL WELFARE AND
DEVELOPMENT (DSWD), BE ENTITLED TO THIRTY (30) DAYS OF PARENTAL LEAVE:
PROVIDED, THAT, IF ADOPTIVE PARENTS ALSO QUALIFY FOR LEAVE BENEFITS
UNDER REPUBLIC ACT NO. 8552, “THE DOMESTIC ADOPTION ACT OF 1998,” THE
LEAVE BENEFIT WITH THE HIGHER NUMBER OF DAYS SHALL APPLY. (new)

ART. 144. FLEXIBLE WORK SCHEDULE. EMPLOYERS SHALL PROVIDE FOR A
FLEXIBLE WORKING SCHEDULE FOR EMPLOYEES; PROVIDED, THAT THE
SCHEDULE SHALL NOT AFFECT INDIVIDUAL AND COMPANY PRODUCTIVITY.

"FLEXIBLE WORK SCHEDULE" 1S THE RIGHT GRANTED TO VARY EMPLOYEES’
ARRIVAL AND DEPARTURE TIME WITHOUT AFFECTING THE CORE WORK HOURS AS
DEFINED BY EMPLOYERS. (new)

ART. 145. LEAVES FOR VICTIMS OF VIOLENCE. VICTIMS OF VIOLENCE UNDER
‘FHIS-REPUBLIC ACT NO. 9262 SHALL BE ENTITLED TO TAKE A PAID LEAVE OF
ABSENCE UP TO TEN (10) DAYS IN ADDITION TO OTHER PAID LEAVES UNDER THE:
LABOR —THIS CODE AND-CFVIL SERVICE RULES-AND- REGULATIONS, EXTENDIBLE
WHEN THE NECESSITY ARISES AS SPECIFIED IN THE PROTECTION ORDER.


AN¥EMPLOYERS WHO SHALL PREJUDICE THE RIGHT OF THE PERSONS UNDER THIS
SEGHON—PROVISION SHALL BE PENALIZED IN ACCORDANCE WITH THE
PROVISIONS OF FHE—LABOR—THIS CODEAND—CIVIL—SERVICE-—RULES—AND
REGULATIONS. LIKEWISE, AN EMPLOYERS WHO SHALL PREJUDICE AN¥ PERSONS:
FOR ASSISTING A—CO-EMPLOYEES WHO 1IS—A ARE VICTIMS UNDER THIS.

ACFREPUBLIC ACT NO. 9262 SHALL LIKEWISE BE LIABLE FOR DISCRIMINATION.

(new)

ART. 146, REPRODUCTIVE LEAVE. A-WOMAN EMPLOYEES HAVING RENDERED
CONTINUOUS AGGREGATE EMPLOYMENT SERVICE OF AT LEAST SIX (6) MONTHS
FOR THE LAST TWELVE (12) MONTHS SHALL BE ENTITLED TO A SPECIAL LEAVE
BENEFIT OF TWO (2) MONTHS WITH FULL PAY BASED ON HER- THE GROSS MONTHLY
COMPENSATION FOLLOWING SURGERY CAUSED BY G¥NECOLOGICAL
REPRODUCTIVE DISORDERS, AS CERTIFIED BY JMPETENT PUBLIC PHYSICIAN.

(new)

CHAPTER IIL
PREGNANT AND NURSING WORKERS

ART. 147. FACILITIES FOR NURSING WORKERS. EMPLOYERS SHALL BE
REQUIRED TO ESTABLISH A NURSERY IN A WORKPLACE FOR THE BENEFIT OF HE
‘WOMEN EMPLOYEES FHERERN. (130)

ART. 148. LACTATION PERIODS. NURSING EMPLOYEES WITH CHILD
RESPONSIBILITY, WHETHER MALE OR FEMALE, SHALL BE GRANTED BREAK
INTERVALS IN ADDITION TO THE REGULAR TIME-OFF FOR MEALS TO FEED OR
BREASTFEED A CHILD OR TO EXPRESS MILK. THESE INTERVALS, WHICH SHALL
INCLUDE THE TIME IT TAKES AN EMPLOYEE TO GET TO AND FROM THE
WORKPLACE LACTATION STATION, SHALL BE COUNTED AS COMPENSABLE
HOURS WORKED. THE DEPARTMENT-OF LABOR -AND-EMPLOYMENT DOLE MAY
ADJUST THE SAME: PROVIDED, THAT SUCH INTERVALS SHALL NOT BE LESS THAN



A TOTAL OF FORTY (40) MINUTES FOR EVERY EIGHT (8)-HOUR WORKING PERIOD.

(new)

ART. 149. PROTECTION OF PREGNANT OR NURSING WORKERS. PREGNANT OR
NURSING WORKERS SHOULD NOT BE OBLIGED TO WORK ON A REST DAY, RENDER
NIGHT WORK OR OVERTIME WORK IF A MEDICAL CERTIFICATE DECLARES SUCH
WORK TO BE INCOMPATIBLE WITH THEIR PREGNANCY OR NURSING. (new)

ART. 150. ALTERNATIVE WORK FOR NURSING WORKERS. WHERE WORK HAS

BEEN DETERMINED BY COMPETENT AUTHORITY TO BE PREJUDICIAL TO THE

HEALTH OF THE WORKER OR THE CHILD, OR WHERE AN ASSESSMENT HAS

ESTABLISHED A SIGNIFICANT RISK TO THE WORKER'S HEALTH OR THAT OF THEIR

CHILD, EMPLOYERS SHOULD PROVIDE MEASURES ON THE BASIS OF A MEDICAL

CERTIFICATE AS APPROPRIATE, AN ALTERNATIVE TO SUCH WORK IN THE FORM

OF:

(a) ELIMINATION OF RISK;

(b) AN ADAPTATION OF THEIR CONDITIONS OF WORK;

(&) A TRANSFER TO ANOTHER POST, WITHOUT LOSS OF PAY, WHEN SUCH AN
ADAPTATION IS NOT FEASIBLE; OR

(d) PAID LEAVE, IN ACCORDANCE WITH THE PROVISIONS OF THIS CODE.

MEASURES REFERRED TO ABOVE SHOULD BE TAKEN IN RESPECT OF THE
FOLLOWING:

(a) ARDUOUS WORK INVOLVING THE MANUAL LIFTING, CARRYING, PUSHING OR
PULLING OF LOADS;

(b) WORK INVOLVING EXPOSURE TO BIOLOGICAL, CHEMICAL OR PHYSICAL
AGENTS WHICH REPRESENT A REPRODUCTIVE HEALTH HAZARD;

(c) WORK REQUIRING SPECIAL EQUILIBRIUM; OR


(d) WORK INVOLVING PHYSICAL STRAIN DUE TO PROLONGED PERIODS OF
SITTING OR STANDING, TO EXTREME TEMPERATURES, OR TO VIBRATION.

(new)

Art. 151. Maternity Leave Benefits. Every-employershall_grant_to—any_pregnant-woman

FEMALE MEMBERSWORKERS WHO HAVE PAID AT LEAST THREE (3) MONTHLY

CONTRIBUTIONS IN THE TWELVE-MONTH PERIOD IMMEDIATELY PRECEDING THE

SEMESTER OF THEIR CHILDBIRTH OR MISCARRIAGE SHALL BE PAID A DAILY

MATERNITY BENEFIT EQUIVALENT TO ONE HUNDRED PERCENT (100%) OF THEIR

AVERAGE DAILY SALARY CREDIT FOR SIXTY (60) DAYS OR SEVENTY-EIGHT (78)

DAYS IN CASE OF CAESARIAN DELIVERY, SUBJECT TO THE FOLLOWING

CONDITIONS:

(a) THAT THE EMPLOYEES SHALL HAVE NOTIFIED THEIR EMPLOYERS OF THEIR
PREGNANCY AND THE PROBABLE DATE OF THEIR CHILDBIRTH, WHICH
NOTICE SHALL BE TRANSMITTED TO THE SSS IN ACCORDANCE WITH THE
RULES AND REGULATIONS IT MAY PROVIDE;


(b) THE FULL PAYMENT SHALL BE ADVANCED BY THE EMPLOYERS WITHIN
THIRTY (30) DAYS FROM THE FILING OF THE MATERNITY LEAVE
APPLICATION;

(c) THAT THE MATERNITY BENEFITS PROVIDED UNDER THIS PROVISION SHALL
BE PAID ONLY FOR THE FIRST FOUR (4) DELIVERIES OR MISCARRIAGES;

(d) THAT THE SSS SHALL IMMEDIATELY REIMBURSE THE EMPLOYERS OF ONE
HUNDRED PERCENT (100%) OF THE AMOUNT OF MATERNITY BENEFITS
ADVANCED TO THE EMPLOYEES BY THE EMPLOYERS UPON RECEIPT OF
SATISFACTORY PROOF OF SUCH PAYMENT AND LEGALITY THEREOF; AND

{e) THAT IF THE EMPLOYEE MEMBERS SHOULD GIVE BIRTH OR SUFFER
MISCARRIAGE WITHOUT THE REQUIRED CONTRIBUTIONS HAVING BEEN
REMITTED FOR THEM BY THEIR EMPLOYERS TO THE SSS, OR WITHOUT THE
LATTER HAVING BEEN PREVIOUSLY NOTIFIED BY THE EMPLOYERS OF THE
TIME OF THE PREGNANCY, THE EMPLOYERS SHALL PAY TO THE SSS
DAMAGES EQUIVALENT TO THE BENEFITS WHICH SAID EMPLOYEE MEMBERS
WOULD OTHERWISE HAVE BEEN ENTITLED TO.

IN CASE THE EMPLOYEES QUALIFIES QUALIFY AS A SOLO PARENTS UNDER
REPUBLIC ACT NO. 8972, OR THE SOLO PARENTS’ WELFARE ACT, FHE-EMPLOYEE,
THEY SHALL BE PAID THE DAILY MATERNITY BENEFIT FOR ONE HUNDRED AND
FIFTY (150) DAYS.

AN ADDITIONAL MATERNITY LEAVE OF THIRTY (30) DAYS, WITHOUT PAY, CAN BE
AVAILED OF, AT THE OPTION OF THE FEMALE WORKERS AS LONG AS THE HEAD
OF THE AGENCY SHALL BE GIVEN DUE NOTICE, IN WRITING, AT LEAST FORTY-
FIVE (45) DAYS BEFORE THE END OF THEIR ORDINARY MATERNITY LEAVE.

WORKERS AVAILING OF THE MATERNITY LEAVE PERIOD AND BENEFITS MUST
RECEIVE NOT LESS THAN TWO THIRDS (2/3) OF THEIR REGULAR MONTHLY
WAGES. EMPLOYERS FROM THE PRIVATE SECTOR SHALL BE RESPONSIBLE FOR
PAYMENT OF THE SALARY DIFFERENTIAL BETWEEN THE ACTUAL CASH BENEFITS


RECEIVED FROM THE SOCIAL SECURITY SYSTEM (SSS) BY THE COVERED FEMALE

WORKERS AND THEIR AVERAGE WEEKLY OR REGULAR WAGES, FOR THE ENTIRE

DURATION OF THE ORDINARY MATERNITY LEAVE, WITH THE FOLLOWING

EXCEPTIONS, SUBJECT TO THE GUIDELINES TO BE ISSUED BY THE DEPARTMENT

OF- LABOR AND-EMPLOYMENF {DOLE}:

(a) THOSE OPERATING DISTRESSED ESTABLISHMENTS;

(b) THOSE RETAIL/SERVICE ESTABLISHMENTS EMPLOYING NOT MORE THAN
TEN (10) WORKERS;

(c) THOSE CONSIDERED AS MICRO-BUSINESS ENTERPRISES AND ENGAGED IN
THE PRODUCTION, PROCESSING, OR MANUFACTURING OF PRODUCTS OR
COMMODITIES INCLUDING AGRO-PROCESSING, TRADING, AND SERVICES,
WHOSE TOTAL ASSETS ARE NOT 11 MORE THAN THREE MILLION PESOS
(P3,000,000.00); AND.

(d) THOSE WHO ARE ALREADY PROVIDING SIMILAR OR MORE THAN THE
BENEFITS HEREIN PROVIDED. (131)

ART. 152. NON-TRANSFERABILITY OF BENEFITS. THE SSS SHALL PROMPTLY PAY
THE BENEFITS PROVIDED IN THIS AGF CODE TO SUCH PERSONS AS MAY BE
ENTITLED THERETO IN ACCORDANCE WITH THE PROVISIONS OF THIS ACF
CODE: PROVIDED, THAT THE SSS SHALL PAY THE RETIREMENT BENEFITS ON THE
DAY OF CONTINGENCY TO QUALIFIED MEMBERS WHO HAVE SUBMITTED THE
NECESSARY DOCUMENTS, AT LEAST SIX (6) MONTHS,
BEFORE: PROVIDED, FURTHER, THAT THE BENEFICIAR¥IES WHO 18—AARE
NATIONALS OF A FOREIGN COUNTR¥IES WHICH DO NOT EXTEND BENEFITS TO &
FILIPINO BENEFICIAR¥IES RESIDING IN THE PHILIPPINES, OR WHICH ARE NOT
RECOGNIZED BY THE PHILIPPINES, SHALL NOT BE ENTITLED TO RECEIVE ANY
BENEFIT UNDER THIS ACF-CODE: PROVIDED, FURTHER, THAT NOTWITHSTANDING
THE FOREGOING, WHERE THE BEST INTEREST OF THE SSS WILL BE SERVED, THE
COMMISSION MAY DIRECT PAYMENTS WITHOUT REGARD TO NATIONALITY OR
COUNTRY OF RESIDENCE: PROVIDED, FURTHER, THAT IF THE RECIPIENTS ARE
MINORS OR PERSONS INCAPABLE OF ADMINISTERING THEIR OWN AFFAIRS, THE


COMMISSION SHALL APPOINT REPRESENTATIVES UNDER SUCH TERMS AND
CONDITIONS AS IT MAY DEEM PROPER: PROVIDED, FURTHER, THAT SUCH
APPOINTMENT SHALL NOT BE NECESSARY IN CASE THE RECIPIENTS ARE UNDER
THE CUSTODY OF OR LIVING WITH THE PARENTS OR SPOUSE OF THE MEMBERS IN
WHICH CASE THE BENEFITS SHALL BE PAID TO SUCH PARENTS OR SPOUSE, AS
REPRESENTATIVE PAYEES OF THE RECIPIENTS. SUCH BENEFITS ARE NOT
TRANSFERABLE AND NO POWER OF ATTORNEY OR OTHER DOCUMENT EXECUTED
BY THOSE ENTITLED THERETO IN FAVOR OF ANY AGENT, ATTORNEY OR ANY
OTHER PERSON FOR THE COLLECTION THEREOF ON THEIR BEHALF SHALL BE
RECOGNIZED, EXCEPT WHEN THEY ARE PHYSICALLY UNABLE TO COLLECT
PERSONALLY SUCH BENEFITS: PROVIDED, FURTHER, THAT IN CASE OF DEATH
BENEFITS, IF NO BENEFICIARY QUALIFIES UNDER THIS ACT, SAID BENEFITS SHALL
BE PAID TO THE LEGAL HEIRS IN ACCORDANCE WITH THE LAW OF SUCCESSION.
PROVIDED, FINALLY, THAT THIS BENEFIT IS OVER AND ABOVE THAT WHICH IS
PROVIDED UNDER THIS CODE. (NEW)

Book Four
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS

Title
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY

Chapter I
MEDICAL AND DENTAL SERVICES

Art. 153. First-Aid Treatment. Every EmployerS shall keep in his THEIR establishment such
first-aid medicines and equipment as the nature and conditions of work may require, in accordance

with such regulations as the Department of Labor and Employment DOLE shall prescribe.

Fhe EmployerS shall take steps for the training of a sufficient number of employees in first-aid

treatment. (162a)


Art. 154, Emergency Medical and Dental Services. It shall be the duty of every employerS to
furnish his-THEIR employees in any locality with free medical and dental attendance and facilities
consisting of:

(a) The services of a full-time registered nurse when the number of employees exceeds fifty (50)
but not more than two hundred (200) except when the employerS does not maintain
hazardous workplaces, in which case, the services of a graduate first-aider shall be provided
for the protection of workers, where no registered nurseS is ARE available. The Secretary
of Laborand- Employment SOLE shall 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 workplaces for purposes of this
AsticlePROVISION;

(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
hundred (100) employees when the number of employees exceeds three hundred (300).

In cases of hazardous workplaces, no employer shall engage the services of a physician or a dentist,

who cannot stay in the premises of the establishment for at least two (2) hours, in the case of those
engaged on part-time basis, and not less than eight (8) hours, in the case of those employed on full-
time basis. Where the undertaking is non-hazardous in nature, the physician and dentist may be
engaged on retained basis, subject to such regulations as the Seeretary-of Labor-and- Employment
SOLE may prescribe to insure immediate availability of medical and dental treatment and

attendance in case of emergency. (163a)

Art. 155. When Emergency Hospital Not Required. The requirement for an emergency hospital
or dental clinic shall not be applicable in case there is a hospital or dental clinic which is accessible

from the empleyer's EMPLOYERS’ establishment and ke THEY makes arrangements for the


reservation therein of the necessary beds and dental fa
(164a)

es for the use of his THEIR employees.

Art. 156, Health Program. The PhysicianS engaged by an employers shall, in addition to his

THEIR duties under this Chapter, develop and implement a comprehensive occup:
program for the benefit of the employees of his THEIR employers. (165a)

Art. 157. Qualifications of Health Personnel. The physicians, dentists and nurses employed by

employers pursuant to this Chapter shall have the necessary training in industrial medicine and
occupational safety and health. The-Seeretary-of Labor and Employment SOLE, in consultation
with industrial THE NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC),
medical, and occupational safety and health associations, shall establish the qualifications, criteria

and conditions of employment of such health personnel. (166a)

Art. 158. Assistance of Employer. It shall be the duty of any employer to provide all the
necessary assistance TO INJURED OR SICK EMPLOYEES SUBJECT TO SUCH
REGULATIONS AS THE SOLE MAY PROVIDE to ensure the adequate and immediate medical
and dental attendance and treatment to an injured or sick employeeS in case of emergency. (167a)

Chapter It
OCCUPATIONAL HEALTH AND SAFETY

Art. 159. Safety and Health Standards. The Secretary of Labor and Employment SOLE shall,
by appropriate orders, set and enforce mandatory occupational safety and health standards to
eliminate or reduce occupational safety and health hazards in all workplaces and institute new, and
update existing, programs to ensure safe and healthful working conditions in all places of

employment. (168a)

‘Art. 160. Research. It shall be the responsibility of the Department-of Labor and Employment
DOLE to conduct continuing studies and research to develop innovative methods, techniques and

approaches for dealing with occupational safety and health problems; to discover latent diseases



by establishing causal connections between diseases and work in environmental conditions; and

to develop medical criteria which will assure insofar as practicable that ne employeeS will NOT

suffer impairment or diminution in health, functional capacity, or life expectancy as a result of his
THEIR work and working conditions. (169a)

Art. 161. Training Programs. The Department of Laber-and- Employment DOLE shall develop

and implement training programs to increase the number and competence of personnel in the field

of occupational safety and industrial health. (170)

Art, 162. Administration of Safety and Health Laws.

(a)

b)

The Department-efLaborDOLE shall be solely responsible for the administration and
enforcement of occupational safety and health laws, regulations and standards in all
establishments and workplaces wherever they may be located. However, chartered cities
may be allowed to conduct industrial safety inspections of establishments within their
respective jurisdictions where they have adequate facilities and competent personnel for the
purpose as determined by the DepartmentefLabor DOLE and subject to national standards
established by the latter.

The Seeretary-of Labor SOLE may, through appropriate regulations, collect reasonable fees
for the inspection of steam boilers, pressure vessels and pipings and electrical installations,
the test and approval for safe use of materials, equipment and other safety devices and the
approval of plans for such materials, equipment and devices. The fee so collected shall be
deposited in the national treasury to the credit of the occupational safety and health fund and
shall be expended exclusively for the administration and enforcement of safety and other
labor laws administered by the Department-of Labor DOLE. (17 1a)

Title 1
EMPLOYEES COMPENSATION AND STATE INSURANCE FUND

Chapter I
POLICY AND DEFINITIONS


ART. 163. Policy. THE STATE AFFIRMS LABOR AS A PRIMARY SOCIAL ECONOMIC
FORCE. IT SEEKS TO IMPROVE THE QUALITY OF LIFE OF THE EMPLOYEES BY
ENSURING EQUITABLE ACCESS TO ADEQUATE AND QUALITY SOCIAL SERVICES
AND ASSETS. IT SHALL PROTECT THE RIGHTS OF THE WORKERS AND PROMOTE
THEIR WELFARE, AND TOWARDS THIS END, SHALL:

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(2)

(3)

Art. 164. Definition of Terms. As used in this Title, unless the context indicates otherwis.

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(b)
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(h)
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BUILD AND SUSTAIN AMONG WORKERS AND EMPLOYERS THE
OCCUPATIONAL HEALTH AND SAFETY PROGRAMS IN ORDER TO PREVENT
AND MINIMIZE THE INCIDENCE OF WORK-CONNECTED INJURIES AND
DISEASES;

ENSURE PROMPT AND ADEQUATE COMPENSATION FOR WORKERS AND
THEIR DEPENDENTS IN THE EVENT OF WORK-CONNECTED DISABILITY OR
DEATH; AND

PROVIDE OCCUPATIONALLY-DISABLED WORKERS WITH REHABILITATION
SERVICES TO ENABLE THEM TO BECOME PRODUCTIVE MEMBERS OF
SOCIETY. (new)

"Code" means the REVISED Labor Code of the Philippines instituted under Presidential
Decree Numbered Four Hundred Forty Fw No. 442, as amended.

“Commission” means the Employees’ Compensation Commission created under this
“BOARD” MEANS THE BOARD OF COMMISSIONERS GOVERNING THE
EMPLOYEES’ COMPENSATION COMMISSION AND THE OCCUPATIONAL
SAFETY AND HEALTH CENTER.

"SSS" means the Social Security System.

“CENTER” MEANS THE OCCUPATIONAL SAFETY AND HEALTH CENTER.

"GSIS" means the Government Service Insurance System.

“REGIONAL EXTENSION UNITS” MEANS REGIONAL AND FIELD OFFICES IN
PROVINCES OR CHARTERED CITIES ESTABLISHED BY THE COMMISSION.
"System" means the SSS or GSIS, as the case may be.

"Employer" means any person,
DOMESTIC OR FOREIGN, WHO CARRIES ON IN THE PHILIPPINES ANY TRADE,


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(m)

(n)

(0)

BUSINESS, INDUSTRY, UNDERTAKING OR ACTIVITY OF ANY KIND AND USES
THE SERVICES OF OTHER PERSONS WHO ARE UNDER THEIR ORDERS AS
REGARDS THE EMPLOYMENT, INCLUDING THE NATIONAL GOVERNMENT, ITS
POLITICAL SUBDIVISIONS, AGENCIES OR INSTRUMENTALITIES AND
GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS.

"Employee" means any person compulsorily covered by the GSIS under REPUBLIC ACT
NO. 8291, OR ANY AMENDMENTS THEREAFTER, including members of the Armed
Forces of the Philippines, and-any-person-employed_as_casual,-emergency;temporary;
substitute or contractual, or any-person THE PHILIPPINE NATIONAL POLICE, BUREAU
OF FIRE PROTECTION, AND BUREAU OF JAIL MANAGEMENT AND PENOLOGY,
WHO IS compulsorily covered by the SSS under REPUBLIC ACT NO. 11199, OR ANY
AMENDMENTS THEREAFTER.

"Person" means any individual, partnership, firm, association, trust, corporation or legal

representative thereof.

"Dependents" means the legitimate, legitimated or legally adopted, or illegitimate child who
is unmarried, not gainfully employed, and not over twenty-one EIGHTEEN (18) YEARS of
age or over twenty-one EIGHTEEN (18) YEARS of age provided he THE DEPENDENT is
incapacitated and incapable of self-support due to a physical or intellectual disability which
is congenital or acquired during—minority PRIOR TO REACHING THE AGE OF
EIGHTEEN (18); the legitimate spouse AS CONTEMPLATED UNDER THE FAMILY
CODE OF THE PHILIPPINES; and the parents of said employeeS dependent upon him
THEM for support.

“Beneficiaries” means the legitimate spouse until he/she SAID SPOUSE remarries OR
COHABITS WITH ANOTHER, and dependent LEGITIMATE, LEGITIMATED,
LEGALLY ADOPTED AND ILLEGITIMATE children, who are the primary beneficiaries.
In their absence, the dependent parents and subject to the restrictions imposed on dependent

children and legitimate descendants who are the secondary beneficiaries.
“WORK-CONNECTED Injury" means any harmful change in the human organism from any
accident arising out of and in the course of the employment.

"WORK-CONNECTED Sickness" means any CONDITION LISTED BY THE
COMMISSION as an occupational disease OR A COMPENSABLE WORK-RELATED


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(y)
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(w)

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(aa)

ILLNESS, or any illness caused by employment, subject to proof that the risk of contracting
the same is increased by working conditions.

"Death" means loss of life resulting from WORK-CONNECTED injury or sickness.
"Disability" means loss or SUBSTANTIAL REDUCTION OF EARNING POWER DUE
TO A WORK-CONNECTED SICKNESS OR INJURY.

"Compensation" means all payments made under this Title for income benefits and medical
or related benefits.
“LOSS-OF-Income benefit" means all payments made under this Title to the employeeS or
his THEIR dependents FOR TEMPORARY OR PERMANENT DISABILITY DUE TO
WORK-CONNECTED SICKNESS OR INJURY.
“Medical benefit" means all payments made under this Title to the providers of medical care,
rehabilitation services and hospital care.
"Related benefit" means all payments made under this Title for appliances and supplies.
"Appliances" means crutches, artificial aids and other similar devices.
"Supplies" means medicine and other medical, dental or surgical items.

ite! “MEDICAL FACILITY” means any HOSPITAL OR CLINIC, government or
private, an active member in good standing of the Philippine Hospital Association and
eeeredited LICENSED by the Commission DEPARTMENT OF HEALTH.
"Physician" means any doctor of medicine duly licensed to practice in the Philippines, an
active member in good standing of the Philippine Medical Association and LICENSED BY
THE PRC AND accredited by the Commission DEPARTMENT OF HEALTH AND
PHILHEALTH.
"Wages" or "Salary", insofar as they refer to the computation of benefits, means the monthly
remuneration (or compensation) as defined under Republic Act No—H6+ 11199, as
amended, for SSS and Presidential Deoree-Ne-H146 REPUBLIC ACT NO. 8291, as
amended, for GSIS, respectively, except that part in excess of Three Thousand Pesos
(P3,000.00).
“Monthly salary credit" means the wage or the salary base for contributions as provided in
Republic Act Numbered-Eleven-hundred-sixty-one,-as-amended No. 11199, or wages or
salary.


(bb) "Average monthly salary credit" in the case of the SSS means the result obtained by dividing

the sum of the monthly salary credits in the sixty-month period immediately preceding the

semester of death or permanent disability by sixty (60), except where the month of death or
permanent disability falls within eighteen (18) calendar months from the month of coverage,
in which case it is the result obtained by dividing the sum of all monthly salary credits paid
prior to the month of the contingency by the total number of calendar months of coverage in
the same period.

(cc) “Average daily salary credit" in the case of the SSS means the result obtained by dividing
the sum of the six (6) highest monthly salary credits in the twelve-month period immediately
preceding the semester of sickness or injury by one hundred eighty (180), except where the
month of injury falls within twelve (12) calendar months from the first month of coverage,
in which case it is the result obtained by dividing the sum of all monthly salary credits by

thirty (30) times the number of calendar months of coverage in the period.

In the case of the GSIS, the average daily salary credit shall be the actual daily salary or wage, or
the monthly salary or wage divided by the actual number of working days of the month of
contingency.

(dd) "Quarter" means a period of three (3) consecutive months ending on the last days of March,
June, September and December.

(ce) "Semester" means a period of two consecutive quarters ending in the quarter of death,
permanent disability, injury or sickness.

(ff) "Replacement ratio" IS the sum of twenty percent (20%) and the quotient obtained by
dividing three hundred (300) by the sum of three hundred forty (340) and the average
monthly salary credit.

(gg) "Credited years of service", for a member covered prior to January 1975, IS nineteen
hundred seventy-five (1975) minus the calendar year of coverage, plus the number of
calendar years in which six (6) or more contributions have been paid from January, 1975 up
to the calendar year containing the semester prior to the contingency. For a member covered
on or after January 1975, the number of calendar years in which six (6) or more contributions
have been paid from the year of coverage up to the calendar year containing the semester

prior to the contingency.


(hh)

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(kk)

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"Monthly income benefit" means the amount equivalent to one hundred fifteen percent
(115%) of the sum of: The average monthly salary credit multiplied by the replacement ratio;
and One and a half percent (1.5%) of the average monthly salary credit for each credited
year of service in excess of ten (10) years; Provided, That the monthly income benefit shall
in no case be less than Two Hundred Fifty Pesos (P250.00).

“TEMPORARY TOTAL DISABILITY’ MEANS THE COMPLETE INABILITY TO WORK
FOR A TEMPORARY PERIOD UNDER THIS TITLE.

“PERMANENT PARTIAL DISABILITY’ MEANS THE LIMITED USE OF A PART OF
THE BODY AFTER RECOVERY FROM WORK-CONNECTED SICKNESS OR
INJURY.

“PERMANENT TOTAL DISABILITY’ MEANS THE COMPLETE INABILITY TO WORK
UNDER THIS TITLE, UNLESS COMPLETE RECOVERY OCCURS AS CERTIFIED BY
THE SYSTEM.

“CONTRIBUTION” MEANS THE AMOUNT REMITTED OR TO BE REMITTED BY
EMPLOYERS TO THE STATE INSURANCE FUND FOR EACH EMPLOYEE UNDER
THEIR EMPLOY.

(mm) “FUND” MEANS THE STATE INSURANCE FUND.
(nn) “OCCUPATIONALLY DISABLED WORKERS” OR “ODW” REFERS TO EMPLOYEES

(oo)

WHO SUSTAINED A DISABILITY AS A RESULT OF A WORK-CONNECTED
SICKNESS OR INJURY.

“SAFETY AND HEALTH” REFERS TO THE INTERNATIONALLY ACCEPTED
DEFINITION OF OCCUPATIONAL SAFETY AND HEALTH. (173a)

Chapter II
COVERAGE AND LIABILITY

ART.165. COVERAGE.

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Coverage in the StateJnsurance Fund PROGRAM shall be compulsory upon all employers
and their employees net-over sixty (60}-years-ofage;


(b) Compulsory coverage of the employerS shall take effect
on the first day of his BUSINESS operation, and that of the employeeS, on the date of his
THEIR employment; AND

(c) THE PROGRAM MAY COVER LAND-BASED OVERSEAS FILIPINO WORKERS,
SELF-EMPLOYED, AND WORKERS IN THE INFORMAL SECTOR, SUBJECT TO
THE REGULATIONS AS MAY BE PRESCRIBED BY THE COMMISSION. (174a, 175a,
176a)

Art. 166. Registration. Each EmployerS and his THEIR employees shall register with the System
in accordance with its THE regulations AS MAY BE PRESCRIBED BY THE COMMISSION.
(177a)

Art. 167. Limitation of Lia
the employeeS or his THEIR dependents, except when the disability or death was occasioned by
the employee's EMPLOYEES’ intoxication, willful intention to injure or kill himself
THEMSELVES or another, notorious negligence, or otherwise provided under this Title. (178a)
ART. 168, NON-EXCLUSIVITY OF BENEFITS. THE PAYMENT OF COMPENSATION
UNDER THIS TITLE SHALL NOT BAR THE RECOVERY OF BENEFITS, WHICH THE
WORKERS, IN BOTH GOVERNMENT AND PRIVATE SECTOR, MAY BE ENTITLED TO
UNDER OTHER SOCIAL SECURITY LAWS WHOSE BENEFITS ARE ADMINISTERED BY
‘THE SYSTEM OR BY OTHER GOVERNMENT AGENCIES. (new)

. The State Insurance Fund shall be liable for compensation to

Art. 169. Liability of Third Parties.

(a) When the disability or death is caused by circumstances creating a legal liability against a
third party, the disabled employeeS or the dependents, in case of his-THEIR death, shall be
paid by the System under this Title. In case benefit is paid under this Title, the System shall
be subrogated to the rights of the disabled employeeS or the dependents, in case of his
THEIR death, in accordance with the general law.

(b) 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 employeeS or other persons
entitled thereto, after deducting the cost of proceedings and expenses of the System. (180a)


Art. 170. Deprivation of the Benefits. Except as otherwise provided under this Title, no contract,
regulation or device whatsoever shall operate to deprive the employeeS or his THEIR dependents
of any part of the income benefits and medical or related services granted under this Title. Existing
medical services being provided by the employerS shall be maintained and continued to be enjoyed
by their employees. (181a)

Chapter III
ADMINISTRATION

Art. 171, Employees’ Compensation Commission, THE EMPLOYEES’ COMPENSATION
COMMISSION, CREATED UNDER PRESIDENTIAL DECREE NO. 626, AS AMENDED,
HEREBY CONTINUES TO EXIST to initiate, rationalize, and coordinate the policies of the
employers’ compensation program; the Employees” Compensation Commission is-hereby-oreated
tobe.

(a) The Commission shall have the status and category of a government OWNED AND
CONTROLLED corporation, and it is hereby deemed attached to the Department-of
LaborDOLE for policy coordination and guidance.

(b) THE CORPORATE POWERS AND FUNCTIONS OF THE COMMISSION SHALL BE
VESTED IN AND EXERCISED BY THE BOARD OF COMMISSIONERS, composed of

members, one-of whom shall rep he-employees-and the other, the employers-to-be

shall-have-at least five-years”experience-in-workmen's compensation-or social -seourity
programs-—All_vacaneies-shall be filled forthe unexpired tenm-onlyTHE SOLE AS EX
OFFICIO CHAIR, THE EXECUTIVE DIRECTOR OF THE ECC SECRETARIAT AS
THE VICE-CHAIR, THE GSIS PRESIDENT AND GENERAL MANAGER, THE SSS
PRESIDENT AND CHIEF EXECUTIVE OFFICER, THE PHILIPPINE HEALTH
INSURANCE CORPORATION CHAIR, THE CIVIL SERVICE COMMISSION CHAIR,



AND TWO (2) APPOINTIVE MEMBERS, ONE OF WHOM SHALL REPRESENT THE
EMPLOYEES, AND THE OTHER, THE EMPLOYERS, BOTH SHALL BE APPOINTED
BY THE PRESIDENT OF THE PHILIPPINES.

THE EXECUTIVE DIRECTOR OF THE ECC SECRETARIAT SHALL BE APPOINTED
BY THE PRESIDENT OF THE PHILIPPINES.

THE APPOINTIVE MEMBERS SHALL BE CHOSEN FROM AMONG THE NOMINEES
OF WORKERS’ AND EMPLOYERS’ ORGANIZATIONS, WHO SHALL HAVE AT
LEAST FIVE (5) YEARS EXPERIENCE IN WORKMEN’S COMPENSATION OR
SOCIAL SECURITY PROGRAMS.

THE THREE (3) APPOINTIVE MEMBERS SHALL HOLD OFFICE FOR ONE (1) YEAR,
UNLESS SOONER REMOVED FOR CAUSE; PROVIDED, HOWEVER, THAT THE
APPOINTIVE MEMBER SHALL CONTINUE TO HOLD OFFICE UNTIL THE SUCCESSOR,
IS APPOINTED. ANY VACANCY IN THE BOARD OTHER THAN THROUGH THE
EXPIRATION OF THE TERM SHALL BE FILLED IN THE MANNER IN WHICH THE
ORIGINAL APPOINTMENT WAS MADE AND THE APPOINTEE SHALL SERVE ONLY
THE UNEXPIRED TERM OF THEIR PREDECESSOR.

THE PRESENCE OF MORE THAN HALF OF THE MEMBERS SHALL CONSTITUTE A
QUORUM. IN THEIR ABSENCE, ANY APPOINTIVE MEMBER MAY DESIGNATE AN
OFFICIAL OF THE INSTITUTION THEY SERVE ON FULL-TIME BASIS AS THEIR
REPRESENTATIVE TO ACT IN THEIR BEHALF.

THE EX OFFICIO MEMBERS OF THE BOARD MAY DESIGNATE THEIR RESPECTIVE
ALTERNATES WHO SHALL BE THE OFFICIALS NEXT-IN-RANK TO THEM AND
WHOSE ACTS SHALL BE CONSIDERED THE ACTS OF THEIR PRINCIPALS. (IN
ACCORDANCE WITH SEC. 14 OF REPUBLIC ACT NO. 10149)


THE APPOINTIVE MEMBERS SHALL RECEIVE COMPENSATION, PER DIEM,
ALLOWANCES AND INCENTIVES AS MAY BE PROVIDED BY LAW.

(c) THE COMMISSION SHALL GOVERN THE OCCUPATIONAL SAFETY AND
HEALTH CENTER.

(d) THE COMMISSION SHALL ESTABLISH REGIONAL AND FIELD OFFICES IN
PROVINCES OR CHARTERED CITIES, OR WHEREVER IT IS DEEMED
NECESSARY, TO BRING ITS SERVICES CLOSER TO THE STAKEHOLDERS. (182a)

Art. 172. Powers and Duties FUNCTIONS. The Commission shall have the following powers

and duties FUNCTIONS:

(a) Fe-assess-and-fix-a-rate-of contribution from-all_empleyers; TO INITIATE AND ISSUE
POLICIES ON THE THREE COMPONENTS OF THE EMPLOYEES’ COMPENSATION
PROGRAM, AS FOLLOWS:

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(2)

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PREVENTION. THE ADEQUATE OCCUPATIONAL HEALTH AND SAFETY,
AND THE ACCIDENT PREVENTION IN THE WORKPLACE BASED ON THE
STUDIES AND RESEARCHES DONE BY THE CENTER;

COMPENSATION. THE FORMULATION OF COMPENSATION PACKAGES
OTHER THAN AND/OR IN ADDITION TO THE BENEFITS ALREADY
PROVIDED FOR IN THIS TITLE; AND

REHABILITATION. THE CONTINUING REHABILITATION SERVICES FOR
THE ODW FOUND TO BE ENTITLED TO COMPENSATION BENEFITS;
INCLUDING, IF PRACTICABLE, THE ESTABLISHMENT OF
REHABILITATION CENTERS EQUIPPED AND STAFFED TO PROVIDE A
BALANCED PROGRAM OF REMEDIAL TREATMENT, VOCATIONAL
ASSESSMENT AND PREPARATION DESIGNED TO MEET THE INDIVIDUAL
NEEDS OF EACH ODW TO RESTORE THEM TO SUITABLE EMPLOYMENT,
SUCH AS ASSISTANCE TO DEVELOP THEIR MENTAL, VOCATIONAL, OR
SOCIAL POTENTIAL.


(>)

(9)

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(h)

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;

To approve rules and regulations governing the processing of claims and the settlement of
disputes arising therefrom as prescribed by the System;

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 490 185 hereof, and other related programs and activities, and to appropriate
funds therefor;

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 of the
benefits for permanent 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; Provided, Further, That the actuarial stability of the State Insurance Fund
shall be guaranteed BY THE NATIONAL GOVERNMENT; Provided, MOREOVER, That
such increases in benefits shall net-sequire any RESULT TO CORRESPONDING increases
in EC contribution; PROVIDED, FINALLY, THAT IF THEY FALL UNDER
PARAGRAPH (B) HEREOF, THE RESULTING INCREASE IN EC CONTRIBUTION
SHOULD BE BORNE BY THE EMPLOYER;
To appoint the personnel of its staff, subject to ci
regulations ON SALARY STANDARDIZATIO
To adopt annually a budget of expenditures of the Commission and its staff chargeable
against the State Insurance Fund: Provided, That the SSS and GSIS shall advance on a

ervice law and rules, but exempt from

quarterly basis the remittances of allotment of the loading fund for the Commission's
operational expenses based on its annual budget as duly approved by the DEPARTMENT
of Budget and Management;

To have the power to administer oath and affirmation, and to issue subpoena ad
testificandum and subpoena duces tecum in connection with any question or issue arising
from appealed cases under this Title;

To sue and be sued in court;


(i) Toacquire property, real or personal, which may be necessary or expedient for the attainment
of the purposes of this Title;

(Kk) Toenter into agreements or contracts for such services and as may be needed for the proper,
efficient and stable administration of the program;

(D_ To perform such other acts as it may deem appropriate for the attainment of the purposes of
the Commission and proper enforcement of the provisions of this Title, (183a)

Art. 173. Management of Funds. All revenues collected by the System under this Title shall be
deposited, invested, administered and disbursed in the same manner and under the same
conditions, requirements and safeguards es provided by Republi Act Numbered Bleven Hundred
‘Sixty-One-as amended, with regard to such other funds as are thereunder being paid to or collected
by the SSS and GSIS, respectively: Provided, That the Commission, SSS and GSIS may disburse
each year not more than twelve percent (12%) of the contribution and investment earnings
collected for operational expenses, including occupational health and safety programs, incidental

to the carrying out of this Title. (184a)

Art. 174, Investment of Funds. Provisions of existing laws to the contrary notwithstanding, all
revenues as are not needed to meet 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 the SSS
and GSIS, respectively, shall be deposited with any authorized depository bank approved by the
Commission, or invested with due and prudent regard for the liquidity needs of the System. (185)

Art. 175, Settlement of Claims. The System shall have original and exclusive jurisdiction to settle
any dispute arising from this Title with respect to coverage, entitlement to benefits, collection and
payment of contributions and penalties thereon, or any other matter related thereto, subject to
appeal to the Commission, which shall decide appealed cases within twenty (20) working days
from the submission of the evidence. (186)


Art, 176, Review. Decisions, orders or resolutions of the Commission may be reviewed on
certiorari by the Supreme Court on question of law upon petition of an aggrieved party within ten

(10) days from notice thereof. (187)

Art. 177. Enforcement of Decisions.

(a) Any decision, order or resolution of the Commission shall become final and executory if no
appeal is taken therefrom within ten (10) days from notice thereof. All awards granted by
the Commission in cases appealed from decisions of the System shall be effected within

fifteen days from receipt of notice.

(b) _Inall other cases, decisions, orders and resolutions of the Commission which have become
final and executory shall be enforced and executed in the same manner as decisions of the
‘Court-of First Instanee REGIONAL TRIAL COURT, and the Commission shall have the
power to issue to the city or provincial sheriff or to the sheriff whom it may appoint, such

writs of execution as may be necessary for the enforcement of such decisions, orders or

resolutions, and any person who shall fail or refuse to comply therewith shall, upon
application by the Commission, be punished by the proper court for contempt. (188a)

Chapter IV
CONTRIBUTIONS

Art. 178. Employer's contributions.

(@) Under such regulations as the System COMMISSION may prescribe, beginning as of the
last day of the month when an employee's EMPLOYEES’ compulsory coverage takes effect
and every month thereafter during his THEIR employment, his THEIR employer shall remit
to the System a contribution equivalent to one percent of his THEIR monthly salary credit.

(b) The rate of contribution shall be reviewed periodically and, subject to the limitations herein
provided, may be revised as the experience in risk, cost of administration, and actual or
anticipated as well as unexpected losses, may require.

(©) Contributions under this Title shall be paid in their entirety by the employerS and any
contract or device for the deduction of any portion thereof from the wages or salaries of the

employees shall be null and void.


(4) When a covered employeeS dies, becomes disabled or is ARE separated from employment,
his THEIR employer's EMPLOYERS’ obligation to pay the monthly contribution arising
from that employment shall cease at the end of the month of contingency and during such
months that he is THEY ARE not receiving wages or salary.

(e) FOR VOLUNTARY MEMBERS UNDER THE PROGRAM, THE EMPLOYERS’
CONTRIBUTION SHALL BE PAID IN ITS ENTIRETY BY THE MEMBERS OR MAY
BE SUBSIDIZED SUBJECT TO THE REGULATIONS AS MAY BE PRESCRIBED BY
THE COMMISSION. (189a)

Art. 179. Government guarantee. The Republic of the Philippines guarantees the benefits under
this Title, and accepts general responsibility for the solvency of the State Insurance Fund. In case
of any deficiency, the same shall be covered by supplemental appropriations from the national
government. (190)

Chapter V
MEDICAL BENEFITS

Art. 180, Medical services. Immediately after an employeeS contracts sickness or sustains-an
injurIES, he THEY shall be provided by the System during the subsequent period of his THEIR
disability with such medical services and appliances as the nature of his THEIR sickness or injury

and progress of his THEIR recovery may require, subject to the expense limitation prescribed by

the Commission.

THE COMMISSION MAY DETERMINE THE SCHEME OF PAYMENT DEPENDING ON
THE UTILIZATION FOR SUCH SERVICES. (191a)

Art. 181. Liability. The System shall have the authority to choose or order a change of physician,
hospital or rehabilitation 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, SUBJECT TO THE REGULATIONS PRESCRIBED BY THE COMMISSION.
(192)

Art. 182. Attending Physician. Any PhysicianS attending an TO injured or sick employeeS shall
comply with all the regulations of the System COMMISSION and submit reports in prescribed
forms at such time as may be required BY THE SYSTEM OR COMMISSION concerning his
THEIR condition or treatment. All medical information relevant to the particular injury or sickness
shall on demand be made available to the employee or the System. No information developed in
connection with treatment or examination for which compensation is sought shall be considered
as privileged communication. (193a)

Art, 183. Refusal of examination or treatment. If the employeeS unreasonably refuses to submit
to medical examination or treatment, the System shall stop the payment of further compensation
during such time as such refusal continues. What constitutes an unreasonable refusal shall be
determined by the System which may on its own initiative determine the necessity, character and
sufficiency of any medical services furnished or to be furnished. (194)

Art. 184, Fees and Other Charges. All fees and other charges for hospital services, medical care

and appliances including professional fees sha p °
i i shall be subject to the

Art. 185. Rehabilitation Services.

consist_of-medical,surgieal_or_hespital ineluding-applianees-if they -have-been



(a) THE COMMISSION SHALL ESTABLISH A REHABILITATION PROGRAM
DESIGNED TO MEET THE INDIVIDUAL NEEDS OF WORKERS WITH DISABILITY
TO RESTORE THEIR EARNING CAPACITY OR IMPROVE THEIR PHYSICAL
FUNCTIONING, IN CASES OF PERMANENT TOTAL DISABILITY. IN THIS
REGARD, THE COMMISSION MAY MAINTAIN OR AVAIL OF THE SERVICES OF
SPECIALIZED PRIVATE AND PUBLIC REHABILITATION FACILITIES OR
CENTERS THAT CAN PROVIDE THE NECESSARY ASSISTANCE, SUCH AS, BUT
NOT LIMITED TO MEDICAL, SURGICAL OR HOSPITAL TREATMENT,
INCLUDING APPLIANCES, THAT ARE APPROPRIATE TO THE NEEDS OF
WORKERS WITH DISABILITY.

(b) ARRANGEMENTS FOR PLACEMENT OF VOCATIONALLY OR TECHNICALLY
TRAINED WORKERS WITH DISABILITY SHALL BE AN INTEGRAL PART OF THE
REHABILITATION PROGRAM. AS INCENTIVE TO THE PARTICIPATING
EMPLOYERS, THE COMMISSION MAY ENTER INTO AGREEMENTS TO
PARTICIPATE IN THE PAYMENT OF WAGES OF THE PLACED ODW, UNDER
SUCH RULES AND REGULATIONS PRESCRIBED BY THE COMMISSION SUBJECT
TO THE VIABILITY OF THE STATE INSURANCE FUND. (196a)

Chapter VI
DISABILITY BENEFITS

Art. 186. Temporary Total Disability.

(@) Under such regulations as the Commission may approve, any employeeS under this Title
who sustains an injury or contracts sickness resulting in temporary total disability shall for
each day of such a disability or fraction thereof, be paid by the System an income benefit
eauivalent o ninety percent (90%) of his THEIR average daily salary credit,-eubjeotte-the

tions: PROVIDED, THAT the daily income benefit shall not be paid for a

continuous period longer than one hundred twenty (120) days, except as otherwise provided
for in the Rules, and the System shall be notified of the injury or sickness.


(b)

The monthly income benefit shall be in accordance with the regulations of the Commission.
(197)

Art. 187. Permanent Total Disability.

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(b)

Under such regulations as the Commission may approve, any-employeeS under this Title
who contracts sickness or sustain an injury resulting in his THEIR permanent total disal
shall, for each month until his THEIR death, be paid by the System during such a disability,
an amount equivalent to the monthly income benefit, plus ten percent (10%) thereof for each

dependent child, but not exceeding five (5), beginning with youngest and without

substitution: -Fhat-th benefit-shall-be-th amount-o

hy benefit for all covered pensioners, effective upon approval of this Decree.
The monthly income benefit shall be guaranteed for five (5) years REGARDLESS OF
WHETHER THE EMPLOYEES ARE GAINFULLY EMPLOYED OR RECOVER FROM
THEIR DISABILITY OR FAIL TO PRESENT THEMSELVES TO THE SYSTEM.
HOWEVER, THE SAME and shall be suspended if the employeeS is~ARE gainfully
employed, or recovers from his THEIR permanent total disability, or fails to present himself

THEMSELVES for examination at least once a year upon notice by the System, except as
otherwise provided for in other laws, decrees, orders or Letters of Instructions.

The following disabilities shall be deemed totel-end permanent TOTAL DISABILITY:
jore-than- one-hundred twenty days, except

(5)
(6)

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(1) Complete loss of sight of both eyes;
(2) Loss of two limbs at or above the ankle or wrist;
(3) Permanent complete paralysis of two limbs;

(4) Brain injury resulting in incurable imbecility or insanity; and
PROFOUND, SEVERE HEARING LOSS ON BOTH EARS; AND

Such cases as determined by the Medical Director of the System and approved by the
Commission.

The number of months of paid coverage shall be defined and approximated by a formula to
be approved by the Commission. (198a)


Art. 188. Permanent Partial Disability.

(a)

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‘Under such regulation as the Commission may approve, any employee under this Title who
contracts sickness or sustains an injury resulting in permanent partial disability shall, for
each month not exceeding the period designated herein, be paid by the System during such
a disability an income benefit for-permanenttetal-disability EQUIVALENT TO THE
MONTHLY INCOME BENEFIT.

The benefit shall be paid for not more than the period designated in the following schedule:

‘Complete and permanent loss] No. of Months
of the use of
One thumb 10
‘One index finger 8
One middle finger 6
‘One ring finger 5
‘One little finger 3
One big toe 6
—__|
‘Any toe 3
One arm 50
One hand 39
‘One foot 31
One leg 4
One ear 10
Both ears 20
Hearing of one ear 10
Sight of one eye 25

A loss of a wrist shall be considered as a loss of the hand, and a loss of an elbow shall be
considered as a loss of the arm. A loss of an ankle shall be considered as a loss of the foot,


(d)

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and a loss of a knee shall be considered as a loss of the leg. A loss of more than one joint
shall be considered as a loss of the whole finger or toe, and a loss of only the first joint shall
be considered as a loss of one-half of the whole finger or toc: Provided, That such a loss
shall be cither the functional loss of the use or physical loss of the member. (As amended by
Sec. 7, P.D. 1368)

In case of permanent partial disability less than the total loss of the member specified in the
preceding paragraph, the same monthly income benefit shall be paid for a portion of the
period established for the total loss of the member in accordance with the proportion that the
partial loss bears to the total loss. Ifthe result is a decimal fraction, the same shall be rounded
off to the next higher integer.

In cases of simultaneous loss of more than one member or a part thereof as specified in this
Article, the same monthly income benefit shall be paid for a period equivalent to the sum of

a decimal

the periods esta

shed for the loss of the member or a part thereof. If the resu
fraction, the same shall be rounded off to the next higher integer.

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 permanent loss of the capacity for work, (As amended by Sec. 7, P.D. 1368)

Under such regulations as the Commission may approve, the income benefit payable in case
of permanent partial disability may be paid in monthly pension or in lump sum if the period
covered does not exceed one year. (As added by Sec. 7, P.D. 1368) (199a)

Chapter VII
DEATH BENEFITS

Art. 189, Death.

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Under such regulations as the Commission may approve, the System shall pay to the primary
beneficiaries upon the death of the covered employeeS under this Title an amount equivalent
to his THEIR monthly income benefit, plus ten percent (10%) thereof for each dependent
child, but not exceeding five (5), beginning with the youngest and without substitution,
except as provided for in paragraph-j) of Article 166 PARAGRAPH (M) OF ARTICLE 164
hereof. However, if he-has THEY HAVE no primary beneficiary, the System shall pay to


)

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his THEIR secondary beneficiaries. The monthly income benefit shall be guaranteed for five
years and shall not be less than fifteen thousand pesos.

HOWEVER, SHOULD THE SURVIVING SPOUSE REMARRY, THEY SHALL NOT BE
ENTITLED TO RECEIVE THE BENEFITS. (As amended by Sec. 4, P.D. 1921)

Under such regulations as the Commission may approve, the System shall pay to the primary
beneficiaries upon the death of a covered employeeS who are under permanent total
disability under this Title, eighty percent (80%) of the monthly income benefit and his
THEIR dependents to the dependent’s pension; Provided, That the marriage must have been
Provided, further, That if he-has THEY HAVE
no primary beneficiary, the System shall pay to his THEIR secondary beneficiaries the

validly subsisting at the time of disabil

monthly pension excluding the dependents pension, of the remaining balance of the five-
year guaranteed period: Provided, Finally, That the minimum death benefit shall not be less
than fifteen thousand pesos (P15,000.00). (As amended by Sec. 4, P.D. 1921)

Funeral-benefit—A The funeral benefit of Three Thousand Pesos-(P3,000.00) shall be paid
upon the death of a covered employee or permanently totally disabled pensioner, IN THE
AMOUNT PRESCRIBED BY THE COMMISSION BUT IN NO CASE LESS THAN
THREE THOUSAND PESOS (P3,000.00). (20a)

Chapter VIII
PROVISIONS COMMON TO INCOME BENEFITS

Art. 190. Relationship and Dependency. All questions of relationship and dependency shall be

determined as of the time of death. (201)

Art. 191. Delinquent contributions.


(a) An-EmployerS who is ARE delinquent in his THEIR contributions shall be liable to the
System for the benefits which may have been paid by the System to his THEIR employees
or their dependents, and any benefit and expenses to which such employerS is ARE liable
shall constitute a lien on all his THEIR property, real or personal, which is hereby declared
to be preferred to any credit, except taxes. The payment by the employerS of the lump sum

ity shall absolve him THEM from the payment of the delinquent

contributions and penalty thereon with respect to the employeeS concerned.

equivalent of such I

(b) Failure or refusal of the employerS to pay or remit the contributions herein prescribed shall
not prejudice the right of the employeeS or his THEIR dependents to the benefits under this
Title. Ifthe sickness, injury, disability or death occurs before the System receives any report
of the name of his THEIR employeeS, the employerS shall be liable to the System for the
lump sum equivalent to the benefits to which such employeeS or his THEIR dependents may

be entitled. (202a)

Art, 192. Second Injuries. If any employeeS under permanent partial disability suffers another
injury which results in a compensable disability greater than the previous injury, the State
ity: Provided, That if the
new disability is related to the previous disability, the System shall be liable only for the difference

Insurance Fund shall be liable for the income benefit of the new disal
in income benefits. (203)

Art. 193. Assignment of benefits. No claim for compensation under this Title shall be
compensable is transferable, or liable to tax, attachment, garnishment, levy or seizure by or under
any legal process whatsoever, either before or after receipt by the person or persons entitled

thereto, except to pay any debt of the employee to the System. (204)

Art. 194, Earned Benefits. Income benefits shall, with respect to any period of disability, be
payable in accordance with this Title to an employeeS whe is-entitled te receive REGARDLESS,
OF ENTITLEMENT TO wages, salaries or allowance for holidays, vacation or sick leaves and
any award of benefit under a collective bargaining or other agreement. (205a)


Art. 195. EMPLOYER'S LIABILITY FOR FAILURE TO PROVIDE Safety Devices. In case
the employee's injury or death was due to the failure of the employer to comply with any law, or
to install and maintain safety devices, or take other precautions for the prevention of injury, said
employer shall pay to the State Insurance Fund a penalty of twenty-five percent (25%) of the lump
sum equivalent of the income benefit payable by the System to the employee. All employers,
especially those who should have been paying a rate of contribution higher than that required of
them under this Title, are enjoined to undertake and strengthen measures for the occupational
health and safety of their employees. (206a)

Art. 196, Prescriptive Period. No claim for compensation shall be given due course unless said
claim is filed with the System within three TEN (10) years from the time the cause of action
accrued; PROVIDED, HOWEVER, THAT WHEN A CLAIMANT FILED CLAIMS FOR
DISABILITY OR DEATH BENEFITS BEFORE THE SYSTEMS, EITHER UNDER THE SSS
LAW OR THE GSIS LAW, THE CLAIM FOR THE SAME BENEFITS SHOULD BE
CONSIDERED AS FILED. (207a; B.R. NO. 10-03-45, MARCH 17, 2010)

Art. 197. Erroneous Payment.
(@)__If'the System in good faith pays income benefit to @ dependentS who is ARE inferior

right
to another dependents or with whom esother dependents is ARE entitled to share, such

payment shall discharge the System from liability, unless and until such other dependentS

notifiesy the System of his THEIR claim prior to the payments.
(6) In case of doubt as to the respective rights of rival claimants, the System is hereby
empowered to determine as to whom payments should be made in accordance with such
regulations as the Commission may approve. If the money is payable to a minorS or

incompetentS, payment shall be made by the System to such person-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 THEIR benefit. (2082)

Art. 198. Prohibition. No agent, attomey or other person pursuing or in charge of the preparation
tle shall demand or charge for his THEIR services

or filing of any claim for benefit under thi

any fee, and any stipulation to the contrary shall be null and void.


The retention or deduction of any amount from any benefit granted under this Title for the payment
of fees of such services is prohibited. IN CASE OF VIOLATION OF THIS PROVISION, THE
CLAIMANT MAY REPORT THE SAME TO THE COMMISSION.

Violation of any provision of this Article shall be punishable by a fine of not less than Five
‘Hundred Pesos nor mere than Five Thousand Peses TEN THOUSAND PESOS (P10,000.00) NOR
MORE THAN TWENTY THOUSAND PESOS (P20,000.00), or imprisonment for not less than
six (6) months nor more than one (1) year, or both, at the discretion of the court. (209a)

Art. 199, Exemption from Levy, Tax, ete. All laws to the contrary notwithstanding, the State
Insurance Fund and all its assets shall be exempt from any tax, fee, charge, levy, or customs or
import duty, and no law hereafter enacted shall apply to the State Insurance Fund unless it is

provided therein that the same is applicable by expressly stating its name. (210)

Chapter IX
RECORDS, REPORTS AND PENAL PROVISIONS

Art. 200, Record of Death or Disability.

(a) All employers shall keep a Jogbook-to record chronologically OF the sickness, injury or
death of their employees, IN CHRONOLOGICAL ORDER, setting forth therein their
names, dates and places of the contingency, nature of the contingency and absences.

(b) Entries in the fegbeok RECORD shall be made within five (5) days from notice or
knowledge of the occurrence of the contingency.

(©) Within five (5) days after entry in the Jogbeok RECORD, the employerS shall report to the
system only those contingencies he THEY deems to be work-connected.

(4) Allentries in the employer’sdegbeok RECORD shall be made by the employers or any of
his THEIR authorized officials after verification of the contingencies or the employee's
employees’ absences for a period of a day or more.

(©) Upon request by the System, the employerS shall furnish the necessary certificate regarding
information about any contingency appearing in the legbeek-RECORD, citing the entry


number, page number and date, Such Jegbeek-RECORD shall be made available for
inspection to the duly authorized representatives of the system.

(® Should any employers fail to record an actual sickness, injury or death of any of his THEIR
employees within the period prescribed herein, give false information or withhold material
information already in his THEIR possession, he THEY shall be held liable for fifty percent
(50%) of the lump sum equivalent of the income benefit to which the employeeS may be
found to be entitled, the payment of which shall accrue to the State Insurance Fund.

(g) Incase of payment of benefits for any claim which is later determined to be fraudulent and
the employerS is ARE found to be @ party to the fraud, such employerS shall reimburse TO
the System the full amount of the compensation paid. (21 1a)

Art. 201. Notice of Sickness, Injury or Death. Notice of sickness, injury or death shall be given
to the employerS by the employeeS or by his THEIR dependents or anybody on his THEIR behalf
within five (5) days from the occurrence of the contingency. No notice to the employerS shall be
required if the contingencyIES isARE known to the employerS or his THEIR agents or
representatives. (212a)

ART. 202. REPORT OF CONTINGENCIES IN THE WORKPLACE. EMPLOYERS
SHALL SUBMIT A REPORT OF THE CONTINGENCIES OCCURRING IN THE
WORKPLACE TO THE REGIONAL OFFICES OF THE DOLE. (new)

Art. 203. Penal Provisions.

(a) The penal provisionS of Republie Act Numbered Eleven_Hundred Sixty-One NOS161

+86—as_amended AND. REPUBLIC ACT NOS. 1161 AND 8291 THE LAWS
GOVERNING THE SSS AND THE GSIS, with regard to the funds as are thereunder being

paid to, collected or disbursed by the System, shall be applicable to the collection,
administration and disbursement of the Funds under this 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 connected with this


Title, whether for hie THEM or for some other person, commits fraud, collusion,
falsification, misrepresentation of facts or any other kind of anomaly shall be punished with
a fine of not less than Five-HundredPeses ONE HUNDRED THOUSAND PESOS
(P 100,000.00) NOR MORE THAN Five-Fhousend Pesos FIVE HUNDRED THOUSAND
PESOS (P500,000.00) and an imprisonment for not less than six (6) months YEARS AND
ONE DAY nor more than one-year TWELVE (12) YEARS, at the discretion of the court.
(©) If the act penalized by this Article is committed by any personS who has HAVE been or is
ARE employed by the Commission or System, or @ recidivistS, the imprisonment shall not
ianS or other professionalS, he THEY

be less than one year; if committed by lawyer, ph

shall, in addition to the penalty prescribed herein, be disqualified from the practice of his
THEIR profession; and if committed by any officialS, employeeS or personnel of the
Commission, System or any government agency, ke THEY shall, in addition to the penalty
prescribed herein, be dismissed with prejudice to reemployment in the government service.
(213a)

Art. 204, Applicability. This Title shall apply only to WORK-RELATED injury, sickness,
disability or death occurring on or after January4+,4975 THE EFFECTIVITY OF THIS CODE.
(214a)

Art. 205. Repeal OF LAWS, All existing laws, Presidential Decrees and Letter of Instructions
which are inconsistent with or contrary to this Decree, are hereby repealed: Provided, That in the
ns for entitlement to benefits shall be governed by the-Laber THIS Code,
as amended: Provided, However, That the formulas for THE computation of benefits, as well as
the contribution base, shall be those provided for under Commenwealth—Act-Numbered-One
4 = 7 Hs THE LAW GOVERNING

case of the GSIS, con«

THE GSIS, plus twenty percent (20%) thereof. (215a)

FideHt
MEDICARE
Title 1
ADULT EDUCATION


Art. 206. Adult Education. Every ALL employerS shall render assistance in the establishment
and operation of adult education programs for their workers and employees as prescribed by
regulations jointly approved by the Department-of Labor-and-EmploymentDOLE and the
Department of Education, Culture-and Sports. (217a)

Book Five
Labor Relations

Art. 207. Declaration of Policy.

A

@

()

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(©

()

Itis the policy of the State:

To promote and emphasize the primacy of free collective bargaining and negotiations and
the use of alternative modes of dispute resolution, including mediation, as modes of settling
industrial or labor disputes;

To promote free trade unionism as an instrument for the enhancement of democracy and the
promotion of social justice and development;

To foster the free and voluntary organization of a strong and united labor movement;

To promote the enlightenment of workers concerning their rights and obligations as union
members and as employees;

To provide an adequate administrative machinery for the expeditious settlement of industrial
and labor disputes;

To ensure a stable but dynamic and just industrial peace; and

To ensure the participation of workers in decision and policy-making processes affecting

their rights, duties and welfare.

To encourage a truly democratic method of regulating the relations between the employers
and employees by means of agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to set or fix wages, rates of
pay, hours of work or other terms and conditions of employment, except as otherwise
provided under this Code. (218)


Chapter II
DEFINITIONS

Art. 208. Definitions.

(a) d-organization or collective bargaining, OR A PERSON WHO WORKS OR IS
EMPLOYED IN PLACE OF OTHERS WHO ARE ON STRIKE. (2192)

Title
RESOLUTION OF INDUSTRIAL AND LABOR DISPUTES

Chapter I
CREATION AND COMPOSITION

ART. 209, A. COURT OF LABOR RELATIONS. THERE IS HEREBY ESTABLISHED A
JUDICIAL BODY, KNOWN AS THE COURT OF LABOR RELATIONS (CLR), A LABOR-
DISPUTE RESOLUTION BODY TASKED TO PROMOTE AND MAINTAIN INDUSTRIAL
PEACE BY RESOLVING INDUSTRIAL AND LABOR DISPUTES. ALL UNEXPENDED
FUNDS, PROPERTIES, EQUIPMENT AND RECORDS OF THE COMMISSION, AND SUCH
OF ITS PERSONNEL AS MAY BE NECESSARY, ARE HEREBY TRANSFERRED TO THE
CLR WHICH SHALL BE UNDER THE ADMINISTRATIVE AND FISCAL SUPERVISION OF
THE SUPREME COURT.

B. MEDIATORS. EACH MEDIATOR SHALL BE APPOINTED BY THE SUPREME COURT,

PROVIDED THAT EACH MEDIATOR SHOULD:

(1) HAVEATLEAST FIVE (5) YEARS OF EXPERIENCE IN HANDLING INDUSTRIAL OR
LABOR MATTERS;

(2) HAVE AT LEAST ONE HUNDRED TWENTY (120) HOURS OF RELEVANT
TRAINING ON ALTERNATIVE DISPUTE RESOLUTION GIVEN BY AN


INSTITUTION ACCREDITED BY THE CLR OR BY THE OFFICE FOR ALTERNATIVE
DISPUTE RESOLUTION CREATED UNDER REPUBLIC ACT NO. 9285; AND

(3) AFTER BEING APPOINTED, UNDERGO REGULAR TRAINING ON ALTERNATIVE
DISPUTE RESOLUTION GIVEN BY AN ACCREDITED INSTITUTION OF THE CLR
OR BY THE OFFICE FOR ALTERNATIVE DISPUTE RESOLUTION CREATED
UNDER REPUBLIC ACT NO. 9285.

MEDIATORS SHALL HOLD OFFICE DURING GOOD BEHAVIOR UNTIL THEY REACH
SIXTY-FIVE (65) YEARS OF AGE OR UNLESS SOONER REMOVED FOR VIOLATION OF
THEIR DUTIES UNDER THE LAW OR RULES OR BECOME INCAPACITATED TO
DISCHARGE THE DUTIES OF THEIR OFFICE.

THE SUPREME COURT SHALL FORMULATE AND ISSUE A CODE OF CONDUCT FOR
MEDIATORS IN INDUSTRIAL AND LABOR DISPUTES, WHICH SHALL PROVIDE FOR
THE STANDARD OF CONDUCT EXPECTED FROM ALL MEDIATORS OF THE CLR IN
DISCHARGING THEIR DUTIES. VIOLATION OF SAID CODE OF CONDUCT SHALL BE A
GROUND TO DISMISS A MEDIATOR FROM OFFICE.

C. JUDGES. JUDGES MAY BE CALLED UPON BY THE CLR TO HEAR AND DECIDE AN
INDUSTRIAL OR LABOR DISPUTE PROVIDED THAT THEY ARE MEMBERS OF THE
BAR IN GOOD STANDING AND LISTED IN THE CLR’S OFFICIAL LIST OF JUDGES. FOR
THIS PURPOSE, THE CLR SHALL MAINTAIN A LIST OF ACCREDITED JUDGES, WHICH
SHALL BE REVIEWED ANNUALLY BY THE SUPREME COURT.

IN ADDITION TO PROCEDURES AND REQUIREMENTS DETERMINED BY THE
SUPREME COURT, ACCREDITATION SHALL ENSURE THAT JUDGES ARE PERSONS OF
DISTINCTION IN WHOM EMPLOYERS, EMPLOYEES, EMPLOYEES’ GROUPS AND THE
GOVERNMENT CAN HAVE TRUST AND CONFIDENCE. JUDGES SHOULD HAVE AT
LEAST TEN (10) YEARS OF PRACTICE AND AT LEAST FIVE (5) YEARS OF EXPERIENCE
INHANDLING INDUSTRIAL OR LABOR MATTERS. THEY SHALL HAVE NO PERSONAL
OR FINANCIAL INTEREST IN THE RESULTS OF THE PROCEEDINGS IN WHICH THEY


ARE APPOINTED AND SHALL HAVE NO RELATION TO THE UNDERLYING DISPUTE
OR TO THE PARTIES OR THEIR COUNSEL THAT MAY CREATE AN APPEARANCE OF
BIAS.

D. STAFF. THE SUPREME COURT SHALL APPOINT THE STAFF AND EMPLOYEES OF
THE CLR AND ITS REGIONAL BRANCHES, INCLUDING SHERIFFS, AS THE NEEDS OF
THE SERVICE MAY REQUIRE, SUBJECT TO THE CIVIL SERVICE LAW, RULES, AND
REGULATIONS. (new)

CHAPTER IL
POWERS AND DUTIES

Art. 210. Jurisdiction of the babor Arbiter: and-the Commission COURT OF LABOR
RELATIONS. HE CLR

absence-ef stenographio-notes,-the following upon cases of all workers, whether agricultural or

non-agricultural, TO WIT:

(1) Unfair Labor Practice cases;

(2) Termination disputes EXCEPT DISPUTES IN ORGANIZED ESTABLISHMENTS,
WHICH INVOLVE THE IMPLEMENTATION OR ENFORCEMENT OF COMPANY
PERSONNEL POLICIES;

@)

Cases involving wages, rates of pay,

hours of work and other terms and conditions of employment;

(4) Claims for actual, moral, exemplary and other forms of damages arising from employer-

(5) WAGE DISTORTION DISPUTES IN UNORGANIZED ESTABLISHMENTS;
(6) ENFORCEMENT OF COMPROMISE AGREEMENTS;


(7) MONEY CLAIMS ARISING OUT OF EMPLOYER-EMPLOYEE RELATIONSHIP OR
BY VIRTUE OF LAW OR CONTRACT;

(8) Bxcept-cleims-for-Employees-Compensation,-Sociel-Seourity, Medicare-and-ma
benefieratl-other Cases involving claims aris

1g from an employer-employee relations;

ng these of persons in domestie-or household service, invelving an-amount exceeding
five-thousand_peses{P5,000.00} regard f her-accompanied—with-e-claim fe
reinstatement RELATIONSHIP OF OVERSEAS FILIPINO WORKERS PURSUANT TO
REPUBLIC ACT 8042, AS AMENDED, OTHERWISE KNOWN AS THE MIGRANT
WORKERS AND OVERSEAS FILIPINOS ACT OF 1995;

(9) CASES ARISING FROM VIOLATION OF PROVISIONS OF THE LABOR CODE.

(10) CLAIMS INVOLVING INJUNCTION AND TEMPORARY RESTRAINING ORDERS
ARISING FROM THE DISPUTES ENUMERATED HEREIN; AND

(11) OTHER CASES AS MAY BE PROVIDED BY LAW.

(6}-The-Commission-shall-have-exelusive appellate jurisdiction over-alt-eases-deeided-by Lab

NO CLAIM, COMPLAINT OR PETITION, INCLUDING THOSE FOR RESTRAINING
ORDERS OR INJUNCTIVE RELIEF, ARISING OUT OF, RELATED TO, OR INVOLVING
THE ABOVE DISPUTES SHALL BE HEARD OR DECIDED BY ANY OTHER COURT OR
‘TRIBUNAL, EXCEPT BY THE SUPREME COURT, WHICH MAY GIVE DUE COURSE TO A
PETITION FOR CERTIORARI INVOLVING AN AWARD OF THE CLR JUDGES.

HOWEVER, REGISTRATION OF LABOR ORGANIZATIONS AND PROCEEDINGS TO
DETERMINE MAJORITY REPRESENTATION AMONG EMPLOYEES SHALL CONTINUE
TO BE FILED WITH THE APPROPRIATE REGIONAL OFFICE AND SHALL NOT BE
WITHIN THE JURISDICTION OF THE CLR AS HEREIN DEFINED. (224a)


ART. 211. A. IMMEDIATE REFERRAL TO MEDIATION. ALL DISPUTES FILED WITH
THE CLR SHALL IMMEDIATELY BE REFERRED TO A MEDIATOR WHO SHALL
MEDIATE BETWEEN THE PARTIES FOR A PERIOD NOT EXCEEDING SIXTY (60)
CALENDAR DAYS FROM THE DATE OF THE INITIAL CONFERENCE WITHOUT
EXTENSION. AFTER A CLAIM IS FILED, THE CLR SHALL SET THE CASE FOR
PRELIMINARY CONFERENCE AND SEND THE NOTICE TO THE PARTIES NOT LATER
‘THAN FIVE (5) DAYS AFTER REFERRAL TO A MEDIATOR.

THE MEDIATOR SHALL BE CHOSEN BY THE CLR UPON CONSIDERING THE NATURE
AND COMPLEXITY OF THE CLAIMS AS WELL AS THE PREFERENCES OF THE
PARTIES, IF KNOWN. ONE (1) MEDIATOR WILL BE APPOINTED UNLESS THE CLR
DETERMINES THAT ANOTHER NUMBER IS MORE APPROPRIATE TO THE
(CIRCUMSTANCES OF THE CASE.

IN ALL DISPUTES, NO PERSON SHALL SERVE AS A MEDIATOR IN ANY DISPUTE IN
WHICH THAT PERSON HAS ANY FINANCIAL OR PERSONAL INTEREST IN THE
RESULT OF THE MEDIATION, EXCEPT BY THE WRITTEN CONSENT OF ALL PARTIES.
PRIOR TO ACCEPTING AN APPOINTMENT, THE PROSPECTIVE MEDIATOR SHALL
DISCLOSE ANY CIRCUMSTANCE LIKELY TO CREATE A PRESUMPTION OR
APPEARANCE OF BIAS. UPON RECEIPT OF SUCH INFORMATION, THE CLR SHALL
EITHER REPLACE THE MEDIATOR OR IMMEDIATELY COMMUNICATE THE
INFORMATION TO THE PARTIES FOR THEIR COMMENTS. THE CLR IS AUTHORIZED
TO APPOINT ANOTHER MEDIATOR IF THE APPOINTED MEDIATOR IS UNABLE TO
SERVE PROMPTLY.

B, PROCESS OF MEDIATION.

1. REPRESENTATION. ANY PARTY MAY BE REPRESENTED BY A PERSON OF THE
PARTY'S CHOICE. THE NAMES AND ADDRESSES OF SUCH PERSONS SHALL BE
COMMUNICATED BY THE RESPECTIVE PARTIES IN WRITING TO ALL PARTIES AND
TOTHECLR.


2. DATE, TIME, AND PLACE OF MEDIATION. THE MEDIATOR SHALL FIX THE DATE
ANDTHE TIME OF EACH MEDIATION SESSION. THE MEDIATION SHALL BE HELD AT
THE APPROPRIATE REGIONAL OFFICE OF THE CLR, OR AT ANY OTHER CONVENIENT
LOCATION AGREEABLE TO THE MEDIATOR AND THE PARTIES, AS THE MEDIATOR
SHALL DETERMINE.

3. IDENTIFICATION OF MATTERS IN DISPUTE. THE MEDIATOR SHALL EXERCISE
(COMPLETE CONTROL OVER ALL MEDIATION PROCEEDINGS IN PURSUIT OF A JUST,
ADEQUATE, AND SPEEDY AGREEMENT BETWEEN THE PARTIES. DURING THE FIRST
HEARING, THE MEDIATOR SHALL IDENTIFY THE ISSUES INVOLVED AND THE
RESPECTIVE OPINIONS OF THE PARTIES THERETO. THE PARTIES WILL BE
EXPECTED TO PRODUCE ALL INFORMATION REASONABLY REQUIRED FOR THE
MEDIATOR TO UNDERSTAND THE ISSUES PRESENTED. FOR THIS PURPOSE, THE
MEDIATOR MAY ISSUE SUBPOENAS DUCES TECUM AND SUBPOENAS 4D
TESTIFICANDUM TO REQUIRE THE PRODUCTION OF NECESSARY DOCUMENTS,
PROPERTY, OR PERSONS AND MAY CITE PERSONS IN VIOLATION OF SUCH ORDERS
INCONTEMPT.

4, AUTHORITY OF MEDIATOR. THE MEDIATOR DOES NOT HAVE THE AUTHORITY
TO IMPOSE A SETTLEMENT ON THE PARTIES BUT WILL ATTEMPT TO HELP THEM
REACH A SATISFACTORY RESOLUTION OF THEIR DISPUTE. THE MEDIATOR IS
AUTHORIZED TO CONDUCT JOINT AND SEPARATE MEETINGS WITH THE PARTIES
AND SHALL MAKE WRITTEN RECOMMENDATIONS FOR SETTLEMENT. WHENEVER
NECESSARY, THE MEDIATOR MAY ALSO OBTAIN EXPERT ADVICE CONCERNING
TECHNICAL ASPECTS OF THE DISPUTE.

THE MEDIATOR MAY SEEK THE AGREEMENT OF THE PARTIES TO RESORT TO
VARIOUS METHODS OF ADR INCLUDING CONCILIATION, MEDIATION, AND

ARBITRATION.


THE MEDIATOR IS AUTHORIZED TO END THE MEDIATION UPON THE EXECUTION OF
A SETTLEMENT AGREEMENT BY THE PARTIES, WHICH SHALL BE DULY ATTESTED
BY THE MEDIATOR. ANY SETTLEMENT REACHED BY THE PARTIES DULY
ATTESTED BY THE MEDIATOR SHALL BE BINDING BETWEEN THE PARTIES AND
MAY BE EXECUTED AS PROVIDED IN ARTICLE 216.

THE MEDIATOR IS AUTHORIZED TO END THE MEDIATION BY A WRITTEN
DECLARATION OF A PARTY OR PARTIES TO THE EFFECT THAT THE MEDIATION
PROCEEDINGS ARE TERMINATED OR WHENEVER, IN THE JUDGMENT OF THE
MEDIATOR, FURTHER EFFORTS AT MEDIATION WOULD NOT CONTRIBUTE TO A
RESOLUTION OF THE DISPUTE BETWEEN THE PARTIES.

5. PRIVACY. MEDIATION SESSIONS ARE PRIVATE AND INFORMATION GENERATED
THEREFROM IS CONFIDENTIAL. THE PARTIES AND THEIR REPRESENTATIVES MAY
ATTEND MEDIATION SESSIONS, BUT OTHER PERSONS MAY ATTEND ONLY WITH
‘THE PERMISSION OF THE PARTIES AND WITH THE CONSENT OF THE MEDIATOR.

6. CONFIDENTIALITY. MEDIATION PROCEEDINGS SHALL BE CONSIDERED
CONFIDENTIAL AND INFORMATION OBTAINED THEREIN SHALL NOT BE
PUBLISHED OR DISCLOSED TO THIRD PARTIES EXCEPT (I) WITH THE CONSENT OF
THE PARTIES, OR (II) WHEN NECESSARY, IN CASES WHERE RESORT TO THE COURT
IS MADE UNDER THE RULES OF COURT.

‘THE CONFIDENTIALITY OF THE PROCEEDINGS SHALL INCLUDECOMMUNICATIONS,
TOOR FROM THE MEDIATOR AND ALL RECORDS, REPORTS, OR OTHER DOCUMENTS
RECEIVED BY A MEDIATOR WHILE SERVING IN THAT CAPACITY. CONFIDENTIAL
INFORMATION DISCLOSED TO A MEDIATOR BY THE PARTIES OR BY WITNESSES IN
‘THE COURSE OF THE MEDIATION SHALL NOT BE DIVULGED BY THE MEDIATOR.
THE MEDIATOR SHALL NOT BE COMPELLED TO DIVULGE SUCH RECORDS OR TO
TESTIFY IN REGARD TO THE MEDIATION IN ANY ADVERSARY PROCEEDING OR
JUDICIAL FORUM.


ANY VIOLATION OF THE CONFIDENTIALITY OF THE PROCEEDINGS SHALL BE
SUBJECT TO THE FOLLOWING SANCTIONS:

2.

WITHOUT PREJUDICE TO THE FOLLOWING PARAGRAPH, ADMINISTRATIVE
ACTION OR PROCEEDING TO BE CONDUCTED BY THE CLR, WITH PROPER
NOTICE AND HEARING, FOR INHIBITION OR PROHIBITION FROM APPEARING
AS MEDIATOR, JUDGE, COUNSEL OR REPRESENTATIVE FOR ANY PARTY IN
ANY CASE;

IF THE ANY VIOLATORS ARE PROFESSIONALS,
ADMINISTRATIVE/DISCIPLINARY ACTION BEFORE THE APPROPRIATE
AUTHORITY, INCLUDING THE SUPREME COURT AND PROFESSIONAL
REGULATION COMMISSION, AT THE INSTANCE OF ANY PARTY OR OF THE CLR.

(new)

ART. 212. REFERRAL TO ARBITRATION. INCASE OF FAILURE OF MEDIATION, THE
MEDIATOR SHALL ACCOMPLISH A REPORT TO THIS EFFECT AND AUTOMATICALLY
REFER THE CASE TO THE JUDGES, EXCEPT IF BOTH PARTIES EXPRESS IN WRITING
THEIR REFUSAL TO DO SO.

FOR PURPOSES OF THIS TITLE, THERE IS A FAILURE OF MEDIATION IN ANY OF THE
FOLLOWING CASES:

()

(2)

@)

WHERE PARTIES FAIL TO REACH AN AMICABLE SETTLEMENT AFTER THE
LAPSE OF SIXTY (60) CALENDAR DAYS FROM THE DATE OF THE INITIAL
MEDIATION CONFERENCE;

REGARDLESS OF PARAGRAPH (1), WHERE ANY PARTIES WHO ARE NECESSARY
TO REACH A COMPLETE SETTLEMENT OF THE CLAIM FAILS OR REFUSES TO
PARTICIPATE IN THE MEDIATION; OR

REGARDLESS OF PARAGRAPH (1), WHERE THE MEDIATOR REACHES THE
CONCLUSION THAT THE PARTIES WILL NOT REACH AN AMICABLE


SETTLEMENT OR THAT FURTHER EFFORTS AT MEDIATION ARE NO LONGER
WORTHWHILE.

IN ALL CASES, THERE MAY BE A FAILURE OF MEDIATION WITH REGARD TO SOME
OR NOT ALL OF THE CLAIMS BROUGHT TO MEDIATION. IN THIS CASE, FAILURE OF
MEDIATION MAY BE DECLARED ONLY WITH REGARD TO THE UNRESOLVED
CLAIMS. (new)

ART. 213. A. START OF PROCEEDINGS BEFORE THE JUDGES. PROCEEDINGS
BEFORE THE JUDGES ARE DEEMED COMMENCED FROM THE TIME THAT THE CLR
ISSUES A REPORT DECLARING A FAILURE OF MEDIATION AND AT LEAST ONE (1)
PARTY EXPRESSES AN INTENT, IN WRITING, TO REFER THE DISPUTE TO
ARBITRATION.

B. JUDGES.

(1) THE JUDICIAL FUNCTIONS IN THE CLR SHALL BE VESTED IN JUDGES TO BE
APPOINTED AND COMMISSIONED IN THE SAME MANNER AS JUDGES OF
REGIONAL TRIAL COURTS.

(2) THE JUDGES OF THE CLR SHALL SERVE DURING GOOD BEHAVIOR UNTIL
THEY REACH THE AGE OF SEVENTY (70) YEARS, OR BECOME INCAPACITATED
TO DISCHARGE THE DUTIES OF THEIR OFFICE, UNLESS SOONER REMOVED IN
ACCORDANCE WITH LAW.

(3) NO PERSON SHALL BE APPOINTED AS JUDGES, UNLESS THEY ARE A CITIZEN
OF THE PHILIPPINES, A MEMBER OF THE BAR IN GOOD STANDING WHO HAS
PRACTICED LABOR LAW IN THE PHILIPPINES FOR A PERIOD OF AT LEAST TEN
(10) YEARS, WITH AT LEAST FIVE (5) YEARS’ EXPERIENCE IN INDUSTRIAL
RELATIONS OR LABOR LAW AS AN INDISPENSABLE REQUISITE.

(4) JUDGES OF THE CLR SHALL HAVE THE SAME RANK, RECEIVE AN ANNUAL,
SALARY EQUIVALENT TO AND BE ENTITLED TO THE SAME ALLOWANCES,
RETIREMENT GRATUITY AND OTHER BENEFITS AND PRIVILEGES AS THOSE
OF THE JUDGES OF THE REGIONAL TRIAL COURTS PURSUANT TO REPUBLIC


ACT NO. 9347 IN RELATION TO REPUBLIC ACT NO. 910, AS AMENDED BY
REPUBLIC ACT NO. 9227 AND BY OTHER APPLICABLE LAWS.

ALL COMPLAINTS AND PETITIONS FILED WITH THE DOCKET UNIT OF THE CLR
SHALL BE IMMEDIATELY RAFFLED AND ASSIGNED TO A JUDGE FROM RECEIPT
THEREOF.

THE CLR SHALL BE RESPONSIBLE FOR THE IMMEDIATE RAFFLE AND ASSIGNMENT
OF ALL COMPLAINTS AND PETITIONS FILED WITH ITS BRANCH, AND THE
IMMEDIATE FORWARDING OF ALL SUBSEQUENT PLEADINGS AND MOTIONS.

ALL PLEADINGS AND MOTIONS SUBSEQUENT TO THE FILING OF THE COMPLAINT
SHALL BE FORWARDED TO THE JUDGE BEFORE WHOM THE CASE IS PENDING
WITHIN TWENTY-FOUR (24) HOURS FROM RECEIPT THEREOF. (new)

ART 214. PROCEDURE OF ARBITRATION. A. NATURE OF PROCEEDINGS BEFORE
THE COURT OF LABOR RELATIONS. BEING A COURT WITH SPECIALIZED
JURISDICTION, PROCEEDINGS BEFORE THE CLR SHALL BE SUMMARY AND NON-
LITIGIOUS IN NATURE; PROVIDED, HOWEVER, THAT SUBJECT TO THE
REQUIREMENTS OF DUE PROCESS, THE TECHNICALITIES OF LAW AND PROCEDURE
OBTAINING IN THE REGULAR COURTS OF LAW SHALL NOT STRICTLY APPLY
THERETO.

IN ALL CASES, THE AFFIDAVITS SUBMITTED BY THE PARTIES SHALL CONSTITUTE
THE DIRECT TESTIMONIES OF THE PERSONS WHO EXECUTED THE SAME. ALL
AFFIANTS MAY BE SUBJECTED TO CROSS-EXAMINATION, REDIRECT, OR RE-CROSS
EXAMINATION BY THE JUDGE(S) MOTU PROPRIO OR BY ANY APPROPRIATE PARTY
UPON MOTION. THE AFFIDAVIT OF ANY AFFIANT WHO FAILS TO TESTIFY SHALL
NOT BE CONSIDERED AS COMPETENT EVIDENCE FOR THE PARTY PRESENTING THE
AFFIDAVIT. HOWEVER, THE ADVERSE PARTY MAY UTILIZE THE SAME FOR ANY
ADMISSIBLE PURPOSE.


THE PARTIES MAY OFFER SUCH EVIDENCE AS IS RELEVANT AND MATERIAL TO THE
DISPUTE AND SHALL PRODUCE SUCH EVIDENCE AS THE JUDGE(S) DEEMS
NECESSARY TO AN UNDERSTANDING AND DETERMINATION OF THE DISPUTE. THE
JUDGE(S) SHALL HAVE THE AUTHORITY TO ISSUE SUBPOENAS DUCES TECUM AND
SUBPOENAS AD TESTIFICANDUM TO REQUIRE THE PRODUCTION OF DOCUMENTS,
EVIDENCE, OR PERSONS TO GIVE TESTIMONY RELEVANT TO THE DISPUTE. THE
JUDGE(S) SHALL ALSO HAVE THE AUTHORITY TO ADMINISTER OATHS TO
WITNESSES.

ALL PARTIES TO THE DISPUTE MUST ATTEND THE PROCEEDINGS ON PAIN OF
CONTEMPT. THE ATTENDANCE OF ANY THIRD PARTY OR THE EXCLUSION OF ANY
WITNESS FROM THE PROCEEDINGS SHALL BE DETERMINED BY THE JUDGE(S).

B. DETERMINATIONS. AT THE FIRST HEARING, THE JUDGE(S) SHALL EXERT ALL
EFFORTS TO EXPLORE AND RESOLVE MATTERS THAT WILL EXPEDITE THE
PROCEEDINGS. PROHIBITED PLEADINGS SHALL BE DETERMINED UNDER THE
RULES OF PROCEDURE PROMULGATED BY THE SUPREME COURT. IN PARTICULAR,
THE JUDGE(S) MUST DETERMINE THE FOLLOWING:

(1) THE ISSUES TO BE DETERMINED;

(2) THE RULES AND PROCEDURE TO BE ADOPTED INCLUDING THE SEQUENCE OF
PRESENTATION OF EVIDENCE BY THE PARTIES;

(3) THE DATE, TIME, PLACE AND ESTIMATED DURATION OF THE SUCCESSIVE
HEARINGS;

(4) THE STIPULATIONS AND DECLARATIONS REGARDING FACTS, EXHIBITS,
WITNESSES AND OTHER ISSUES;

(5) THE NAMES OF WITNESSES (INCLUDING EXPERT WITNESSES), THE SCOPE OF
WITNESS TESTIMONY, AND WITNESS EXCLUSION;

(6) THE NEED FOR A STENOGRAPHIC RECORD;

(7) THE FORM OF THE AWARD;


(8) THE ALLOCATION OF ATTORNEY’S FEES AND COSTS; AND
(9) ANY OTHER ISSUES RELATING TO THE SUBJECT OR CONDUCT OF THE
PROCEEDINGS. (new)

ART. 215. AWARD. UNLESS THE PARTIES EXPRESSLY AGREE OTHERWISE IN
WRITING, IT SHALL BE MANDATORY FOR THE JUDGE TO RENDER AN AWARD
WITHIN NINETY (90) CALENDAR DAYS FROM THE DATE OF ACCEPTANCE OF THE
ARBITRATION. FAILURE ON THE PART OF THE JUDGE TO ISSUE AN AWARD OR
DECISION WITHIN THE STIPULATED PERIOD SHALL CONSTITUTE SUFFICIENT
GROUND FOR THE IMPOSITION OF DISCIPLINARY PENALTIES.

PARTIES SHALL SUBMIT THEIR RESPECTIVE DRAFT AWARD, RESOLUTION OR
DECISION WHICH SHALL EMBODY ALL THE PERTINENT PROVISIONS OF LAW,
RULES AND REGULATIONS AND JURISPRUDENCE FOR THE CONSIDERATION OF
THE COURT.

THE AWARD, RESOLUTION OR DECISION OF THE JUDGE SHALL CONTAIN THE
FACTS AND THE LAW ON WHICH IT IS BASED. THE JUDGE SHALL ENTERTAIN ONLY
ONE (1) MOTION FOR RECONSIDERATION FROM THE SAME PARTY WITHIN THE
PERIOD WHEN THE AWARD OR DECISION HAS NOT BECOME FINAL AND
EXECUTORY. IT SHALL BE FINAL AND EXECUTORY AFTER TEN (10) CALENDAR
DAYS FROM RECEIPT OF THE COPY OF THE AWARD OR DECISION BY THE PARTIES
AND MAY ONLY BE BROUGHT BEFORE THE SUPREME COURT/COURT OF APPEALS
THROUGH A SPECIAL CIVIL ACTION FOR CERTIORARI. DECISIONS, AWARDS, AND
ORDERS OF THE JUDGE SHALL BE IMMEDIATELY EXECUTORY EVEN IN THE
ABSENCE OF ANY MOTION FOR EXECUTION. (new)

Art. 216. Execution of decisions, orders-or-awards. (a) THROUGH A PROPER MOTION
DIRECTED TO THE CLR, ANY INTERESTED PARTY MAY ENFORCE THE SETTLEMENT
AGREEMENTS OR AWARDS RESULTING FROM MEDIATION OR ARBITRATION
PROCEEDINGS IN THIS TITLE. UPON SUCH MOTION, the Seeretary—of—Laber—and


execution on a settlement agreement or arbitral award within five (5) years from the date it WAS

REACHED OR becomes final and executory, requiring a THE sheriff or a-duly-deputized-officer
AUTHORIZED PERSON OF THE CLR TO execute or-enforee-final decisions, orders-or awards

or med-arbiteror-voluntary-arbitraters THE SETTLEMENT AGREEMENT OR ARBITRAL
AWARD. In any case, it shall be the duty of the responsible officer to immediately furnish the
counsels of record and the parties with copies of said decisions, erders-or awards SETTLEMENT
AGREEMENT OR ARBITRAL AWARD. Failure to comply with the duty prescribed herein shall
subject such responsible officer to appropriate administrative sanctions. (230a)

ART. 217. REPRESENTATION. PARTIES SHOULD PERSONALLY APPEAR BEFORE

THE CLR AND ANY OF ITS MEDIATORS OR JUDGE: PROVIDED THAT JURIDICAL

PERSONS MAY BE REPRESENTED BY ANY PERSON SPECIALLY AUTHORIZED IN

WRITING TO DO SO. AT ANY PROCEEDING BEFORE THE CLR OR ANY OF ITS

MEDIATORS OR JUDGE, NON-LAWYERS SHALL BE ALLOWED TO REPRESENT ANY

PARTY IN THE FOLLOWING CASES:

(1) THEY ARE REPRESENTING THEMSELVES;

(2) THEY ARE REPRESENTING A CORPORATION OR BELONGS TO A LEGITIMATE
LABOR ORGANIZATION;

(3) THEY ARE AUTHORIZED UNDER THE STUDENT PRACTICE RULE UNDER RULE
138-A OF THE RULES OF COURT. (new)

ART. 218. INJUNCTIONS. A PETITION FOR INJUNCTION OR PETITION FOR
MANDATORY INJUNCTION MAY BE FILED WITH THE CLR TO ENJOIN OR RESTRAIN


ANY ACTUAL OR THREATENED COMMISSION OF ANY OR ALL PROHIBITED OR
UNLAWFUL ACTS, OR TO REQUIRE THE PERFORMANCE OF A PARTICULAR ACT IN
ANY INDUSTRIAL OR LABOR DISPUTE WHICH, IF NOT RESTRAINED OR PERFORMED
FORTHWITH, MAY CAUSE GRAVE OR IRREPARABLE DAMAGE TO ANY PARTY OR
RENDER INEFFECTUAL ANY DECISION IN FAVOR OF SUCH PARTY. THE PETITION
FOR INJUNCTION OR PETITION FOR MANDATORY INJUNCTION SHALL
AUTOMATICALLY BE REFERRED TO ARBITRATION; PROVIDED, THAT NO
TEMPORARY OR PERMANENT INJUNCTION IN ANY CASE INVOLVING OR GROWING
OUT OF AN INDUSTRIAL OR LABOR DISPUTE AS DEFINED IN THIS CODE SHALL BE
ISSUED EXCEPT AFTER THE POSTING OF THE NECESSARY BOND AND HEARING THE
TESTIMONY OF WITNESSES, WITH OPPORTUNITY FOR CROSS-EXAMINATION, IN
SUPPORT OF THE ALLEGATIONS OF A COMPLAINT MADE UNDER OATH. (new)

Chapter II
TRANSITORY PROVISIONS

Art. 219. Disposition of pending cases. All cases pending before the Court of industrial Relations
and-the National Labor Relations (NLRC) established under Presidential Decree No. 21, AS
AMENDED BY P.D. 442, on the date of effectivity of this Code shall be transferred to and
processed by the corresponding labor-relations—divisi the-National_Labor_Relati

‘Commission CLR created under this Cede LAW having cognizance of the same in accordance

with the procedure laid down herein and its implementing rules and regulations. Cases-on-tabor
relations on-appeal with the S Labor or the Office of the President of the Philippines



ART. 220. RETIREMENT OR SEPARATION OF NLRC COMMISSIONERS.
CONSEQUENT TO THE ABOLITION OF THE NLRC, INCUMBENT COMMISSIONERS
SHALL BE DEEMED COMPULSORILY RETIRED WITH FULL RETIREMENT GRATUITY
AND PENSION PURSUANT TO REPUBLIC ACT NO. 910, AS AMENDED. THEY SHALL
ALSO RECEIVE A SEPARATION PAY EQUIVALENT TO TWO (2) MONTHS’ SALARY
FOR EVERY YEAR OF SERVICE IN GOVERNMENT. (new)

ART. 221, PERSONNEL WHOSE SERVICES ARE TERMINATED. NLRC PERSONNEL
WHOSE SERVICES ARE TERMINATED AS A RESULT OF THE IMPLEMENTATION OF
THIS LAW SHALL ENJOY THE RIGHTS AND PROTECTION PROVIDED UNDER CIVIL
SERVICE LAW, RULES AND REGULATIONS. (new)

ART. 222. OPTIONAL RETIREMENT OR SEVERANCE PAY FOR AN INCUMBENT
LABOR ARBITER. WHEN INCUMBENT LABOR ARBITERS HAVE ATTAINED THE AGE
OF SIXTY (60) YEARS AND HAVE RENDERED AT LEAST TWENTY (20) YEARS IN
GOVERNMENT SERVICE, THE LAST FIVE (5) YEARS OF WHICH SHALL HAVE BEEN
CONTINUOUSLY RENDERED AS LABOR ARBITERS, THEY SHALL BE QUALIFIED FOR
OPTIONAL RETIREMENT. IF THEY LACK ANY ONE OF THE ABOVE QUALIFICATIONS,
THEY SHALL BE ENTITLED TO A SEVERANCE PAY EQUIVALENT TO TWO (2)
MONTHS’ SALARY FOR EVERY YEAR OF GOVERNMENT SERVICE. THIS OPTION FOR
AVAILING OF SEVERANCE PAY SHALL BE EXERCISED WITHIN A PERIOD OF SIXTY
(60) CALENDAR DAYS AFTER THE EFFECTIVITY OF THIS ACT; OTHERWISE, SAID
OPTION SHALL BE DEEMED WAIVED. (new)

ART. 223. SUBSEQUENT APPOINTMENTS TO THE REGIONAL COURT OF LABOR
RELATIONS THE PRESIDENT SHALL APPOINT JUDGES TO THE CLR FROM A LIST OF
AT LEAST THREE (3) NOMINEES PREPARED BY THE JUDICIAL AND BAR COUNCIL;
PROVIDED, THAT SAID NOMINEES SHALL MEET THE QUALIFICATIONS AS THOSE OF
THE JUDGES OF THE REGIONAL TRIAL COURTS. SUCH APPOINTMENTS NEED NO
CONFIRMATION. (new)


TITLE 1
BUREAU OF LABOR RELATIONS

ART. 224, Bureau of Labor Relations. The Bureau ef Labor Relations and the Labor Relations
Divisions in the regional offices of the Department-of-Laber DOLE shall have original and

ive or upon request of either or both parties, on all

exclusive authority to act, at their own ini
inter-union and intra-union conflicts, and all disputes, grievances or problems arising from or
affecting labor-management relations in all workplaces, whether agricultural or non-agricultural,
except those arising from the implementation or interpretation of collective bargaining agreements
which shall be the subject of grievance procedure and/or voluntary arbitration.

The Bureau shall have fifteen (15) working days to act on labor cases before it, subject to extension

by agreement of the parties. (232a)

ART. 225. Compromise agreements. Any compromise settlement, including those involving
labor standard laws, voluntarily agreed upon by the parties with the assistance of the Bureau or the
al office of the Department oF Labor DOLE, shall be final and binding upon the parties. The

ission CLR or any court, shall not assume jurisdiction over issues

involved therein except in case of non-compliance thereof or if there is prima facie evidence that

the settlement was obtained through fraud, misrepresentation, or coercion. (233a)

ART. 226. Mandatory Conciliation and Endorsement of Cases.

(a) Except as provided in Title VII-A, Book V of this Code, as amended, or as may be excepted
by the Seeretaryof Labor-and_EmploymentSOLE, all issues arising from labor and
employment shall be subject to mandatory conciliation-mediation. The labor arbiter JUDGE
OF THE CLR or the appropriate DOLE agency or office that has jurisdiction over the dispute
shall entertain only endorsed or referred cases by the duly authorized officer.


tion-mediation

(b) Any or both parties involved in the dispute may pre-terminate the concili
proceedings and request referral or endorsement to the appropriate DOLE agency or office
which has jurisdiction over the dispute, or if both parties so agree, refer the unresolved issues
to voluntary arbitration. (234a)

Art. 227. Issuance of subpoenas. The Bureau shall have the power to require the appearance of
any person or the production of any paper, document or matter relevant to a labor dispute under
its jurisdiction, either at the request of any interested party or at its own initiative. (235)

‘Art. 228, Appointment of Bureau personnel. The Secretary of Labor and Employment SOLE
may appoint, in addition to the present personnel of the Bureau and the Industrial Relations
Divisions, such number of examiners and other assistants as may be necessary to carry out the

purpose of the Code. (236a)

Art. 229. Registry of unions and file of collective bargaining agreements. The Bureau shall
keep a registry of legitimate labor organizations. The Bureau shall also maintain a file of all
collective bargaining agreements and other related agreements and records of settlement of labor
disputes and copies of orders and decisions of voluntary arbitrators. The file shall be open and
accessible to interested parties under conditions prescribed by the Seeretaryof Labor-and
EmploymentSOLE, provided that no specific information submitted in confidence shall be
disclosed unless authorized by the SeeretarySOLE, or when

or when public interest or national security so requires.

issue in any judicial litigation,

‘Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall
submit copies of the same directly to the Bureau or the Regional Offices of the Department-of
Labor and-Bmployment DOLE for registration, accompanied with verified proofs of its posting in
‘two conspicuous places in the place of work and ratification by the majority of all the workers in

the bargaining unit. The Bureau or Regional Offices shall act upon the application for registration

of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof. The
Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement
within five (5) days from its submission.


The Bureau or Regional Office shall assess the employer for every Collective Bargaining
Agreement a registration fee of not less than one thousand pesos (P1,000.00) or in any other

amount as may be deemed appropriate and necessary by the Secretary of Labor-and- Employment

SOLE for the effective and efficient administration of the Voluntary Arbitration Program. Any

amount collected under this provision shall accrue to the Special Voluntary Arbitration Fund.

The Bureau shall also maintain a file and shall undertake or assist in the publication of all final
decisions, orders and awards of the Secretary of Labor and EmploymentSOLE, Regional Directors
and the CommissionCLR. (As amended -by Section 15, Republic Act No- 6715, Maroh 24,1989)
(2378)

Art. 230, Prohibition on certification election. The Bureau shall not entertain any petition for
certification election or any other action which may disturb the administration of duly registered
existing collective bargaining agreements affecting the parties except under Articles 253259, 253-
A260 and 256263 of this Code. (As-amended-by Section 15, Republic-Act No-6715, March 21,
4989 (238a)

Art. 231, Privileged communication. Information and statements made at conciliation
proceedings shall be treated as privileged communication and shall not be used as evidence in the
tors and similar officials shall not test

in any court or body regarding

any matters taken up at conciliation proceedings conducted by them. (239a)

Title IV
LABOR ORGANIZATIONS

Chapter I
REGISTRATION AND CANCELLATION

Art. 232. Requirements of Registration. A federation, national union or industry or trade union
center or an independent union shall acquire legal personality and shall be entitled to the rights


and privileges granted by law to legitimate labor organizations upon issuance of the certificate of

registration based on the following requirements:

(a)
(b)

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Fifty pesos (P50.00) registration fee;
The names of its officers, their addresses, the principal address of the labor organization, the
minutes of the organizational meetings and the list of the workers who participated in such
meetings;

In case the applicant is an independent union, the names of all its members comprising at
least twenty pereent FIFTEEN PERCENT (15%) of all the employees in the bargaining unit
where it seeks to operate;

If the applicant union has been in existence for one or more years, copies of its annual
financial reports; and

Four ELECTRONIC copies of the constitution and by-laws of the applicant union, minutes
of its adoption or ratification, and the list of the members who participated in it. (240a)

Art. 233. Chartering and Creation of a Local Chapter. A duly registered federation or national

union may directly create a local chapter by issuing a charter certificate indicating the

establishment of the local chapter. The chapter shall acquire legal personality only for purposes of

filing a petition for certification election from the date it was issued a charter certificate.

The chapter shall be entitled to all other rights and privileges of a legitimate labor organization

only upon the submission of the following documents in addition to its charter certificate:

@)

b)

The names of the chapter’s officers, their addresses, and the principal office of the chapter;
and

The chapter’s constitution and by-laws: Provided, That where the chapter's constitution and
by-laws are the same as that of the federation or the national union, this fact shall be indicated

accordingly.

The additional supporting requirements shall be certified under oath by the secretary or treasurer

of the chapter and attested by its president. (241)


Art. 234, Action on Application, The Bureau shall act on all applications for registration within
thirty (30) days from filing.

All requisite documents and papers shall be certified under oath by the secretary or the treasurer
of the organization, as the case may be, and attested to by its president. (242)

Art. 235. Denial of Registration; Appeal. The decision of the Labor Relations Division in the
regional office denying registration may be appealed by the applicant union to the Bureau within
ten (10) days from receipt of notice thereof. (243)

Art. 236. Additional Requirements for Federations or National Unions. Subjectte- Article 238,
in addition to the

If the applicant for registration is a federation or a national union, it shal

requirements of the preceding Articles, submit the following:

(a) Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly
recognized collective bargaining agent in the establishment or industry in which it operates,
supporting the registration of such applicant federation or national union; and

(b) The names and addresses of the companies where the locals or chapters operate and the list

of all the members in each company involved. (244a)

‘Art. 237. Cancellation of Registration. The certificate of registration of any legitimate labor
organization, whether national or local, may be cancelled by the Bureau, after due hearing, only
on the grounds specified in Article 239 hereof. (245a)

Art. 238, Effect of a Petition for Cancellation of Registration. A petition for cancellation of
union registration shall not suspend the proceedings for certification election nor shall it prevent
the filing of a petition for certification election. In case of cancellation, nothing herein shall restrict
the right of the union to seek just and equitable remedies in the appropriate courts. (246)

Art. 239. Grounds for Cancellation of Union Registration. The-following-may-constitute
en: SUBJECT TO DUE PROCESS, THE



REGISTRATION OF A UNION MAY BE CANCELLED SOLELY FOR ANY OF THE
FOLLOWING GROUNDS:
(a) Misrepresentation, false statement or fraud in connection with the adoption or ratification of

the constitution and by-laws or amendments thereto, the minutes of ratification, and the li

of members who took part in the ratification;
(b)  Misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, and the list of voters;

(©) Voluntary dissolution by the members. (2474)

Art. 240. Voluntary Cancellation of Registration. The registration of a legitimate labor
organization may be cancelled by the organization itself: Provided, That at least two-thirds of its
general membership votes, in a meeting duly called for that purpose to dissolve the organization:
Provided, further, That an application to cancel registration is thereafter submitted by the board of
the organization, attested to by the president thereof. (248)

‘Art, 241. Equity of the Incumbent. All existing federations and national unions which meet the

qualifications of a legitimate labor organization and none of the grounds for cancellation shall
continue to maintain their existing affiliates regardless of the nature of the industry and the location

of the affiliates. (249)

ART. 242, WHEN MULTI-EMPLOYER BARGAINING AVAILABLE. LEGITIMATE
LABOR UNIONS AND EMPLOYERS MAY AGREE IN WRITING TO COME TOGETHER
FOR THE PURPOSE OF COLLECTIVE BARGAINING, PROVIDED:

(2) ONLY LEGITIMATE LABOR UNIONS WHO ARE INCUMBENT EXCLUSIVE
BARGAINING AGENTS MAY PARTICIPATE AND NEGOTIATE IN MULTI-
EMPLOYER BARGAINING;

(b) ONLY EMPLOYERS WITH COUNTERPART LEGITIMATE LABOR UNIONS WHO
ARE INCUMBENT BARGAINING AGENTS MAY PARTICIPATE AND NEGOTIATE
IN MULTI-EMPLOYER BARGAINING; AND.


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ONLY THOSE LEGITIMATE LABOR UNIONS WHO PERTAIN TO EMPLOYER
UNITS WHO CONSENT TO MULTI-EMPLOYER BARGAINING MAY PARTICIPATE
IN MULTI-EMPLOYER BARGAINING. (new)

ART. 243. PROCEDURE IN MULTI-EMPLOYER BARGAINING. MULTI-EMPLOYER
BARGAINING MAY BE INITIATED BY THE LABOR UNIONS OR BY THE EMPLOYERS.

@)

(b)

LEGITIMATE LABOR UNIONS WHO DESIRE TO NEGOTIATE WITH THEIR
EMPLOYERS COLLECTIVELY SHALL EXECUTE A WRITTEN AGREEMENT
AMONG THEMSELVES, WHICH SHALL CONTAIN THE FOLLOWING:

(1) THE NAMES OF THE LABOR UNIONS WHO DESIRE TO AVAIL OF MULTI-
EMPLOYER BARGAINING;

(2) EACH LABOR UNION IN THE EMPLOYER UNIT;

(3) THE FACT THAT EACH OF THE LABOR UNIONS ARE THE INCUMBENT
EXCLUSIVE BARGAINING AGENTS FOR THEIR RESPECTIVE EMPLOYER
UNITS;

(4) THE DURATION OF THE COLLECTIVE BARGAINING AGREEMENTS, IF
ANY, ENTERED INTO BY EACH LABOR UNION WITH THEIR RESPECTIVE
EMPLOYERS.

LEGITIMATE LABOR UNIONS WHO ARE MEMBERS OF THE SAME
REGISTERED FEDERATION, NATIONAL, OR INDUSTRY UNION ARE
EXEMPT FROM EXECUTION OF THIS WRITTEN AGREEMENT.

THE LEGITIMATE LABOR UNIONS WHO DESIRE TO BARGAIN WITH MULTI-

EMPLOYERS SHALL SEND A WRITTEN NOTICE TO THIS EFFECT TO EACH

EMPLOYER CONCERNED. THE WRITTEN AGREEMENT STATED IN THE

PRECEDING PARAGRAPH, OR THE CERTIFICATES OF REGISTRATION OF THE

FEDERATION, NATIONAL, OR INDUSTRY UNION, SHALL ACCOMPANY SAID

NOTICE.

EMPLOYERS WHO AGREE TO GROUP THEMSELVES OR USE THEIR EXISTING

ASSOCIATIONS TO ENGAGE IN MULTI-EMPLOYER BARGAINING SHALL SEND

(A WRITTEN NOTICE TO EACH OF THEIR COUNTERPART LEGITIMATE LABOR


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UNIONS INDICATING THEIR DESIRE TO ENGAGE IN MULTI-EMPLOYER
BARGAINING. SAID NOTICE SHALL INDICATE THE FOLLOWING:

@

(2)
@)

(3)

THE NAMES OF THE EMPLOYERS WHO DESIRE TO AVAIL OF MULTI-
EMPLOYER BARGAINING;

THEIR CORRESPONDING LEGITIMATE LABOR ORGANIZATIONS;

THE FACT THAT EACH CORRESPONDING LEGITIMATE UNION IS AN
INCUMBENT EXCLUSIVE BARGAINING AGENT;

THE DURATION OF THE CURRENT COLLECTIVE BARGAINING
AGREEMENT, IF ANY, ENTERED INTO BY EACH EMPLOYER WITH THE
COUNTERPART LEGITIMATE LABOR UNION.

EACH EMPLOYER OR CONCERNED LABOR UNION SHALL EXPRESS ITS
WILLINGNESS OR REFUSAL TO PARTICIPATE IN MULTI-EMPLOYER
BARGAINING IN WRITING, ADDRESSED TO ITS CORRESPONDING EXCLUSIVE
BARGAINING AGENT OR EMPLOYER. NEGOTIATIONS MAY COMMENCE ONLY
WITH REGARD TO RESPECTIVE EMPLOYERS AND LABOR UNIONS WHO
CONSENT TO PARTICIPATE IN MULTI-EMPLOYER BARGAINING;

DURING THE COURSE OF NEGOTIATIONS, CONSENTING EMPLOYERS AND
THE CORRESPONDING LEGITIMATE LABOR UNIONS SHALL DISCUSS AND
AGREE ON THE FOLLOWING:

(1)
(2)

@)

THE MANNER BY WHICH NEGOTIATIONS SHALL PROCEED;
THE SCOPE AND COVERAGE OF THE NEGOTIATIONS AND THE
AGREEMENT; AND

WHERE APPROPRIATE, THE EFFECT OF THE NEGOTIATIONS ON
CURRENT AGREEMENTS OR CONDITIONS OF EMPLOYMENT AMONG THE
PARTIES. (new)

ART. 244. POSTING AND REGISTRATION OF COLLECTIVE BARGAINING
AGREEMENT. TWO (2) SIGNED COPIES OF COLLECTIVE BARGAINING AGREEMENT
REACHED THROUGH MULTI-EMPLOYER BARGAINING SHALL BE POSTED FOR AT
LEAST FIVE (5) DAYS IN TWO (2) CONSPICUOUS AREAS IN EACH WORKPLACE OF
THE EMPLOYER UNITS CONCERNED. THIS COLLECTIVE BARGAINING AGREEMENT


SHALL AFFECT ONLY THOSE EMPLOYEES IN THE BARGAINING UNITS WHO HAVE
RATIFIED IT.

THE SAME COLLECTIVE BARGAINING AGREEMENT SHALL BE REGISTERED WITH
THE DEPARTMENT IN ACCORDANCE WITH APPLICABLE LAWS AND RULES. (new)

Art, 245, Rights and Conditions of Membershi

Chapter II
RIGHTS AND CONDITIONS OF MEMBERSHIP

in a Labor Organization. The following are

the rights and conditions of membership in a labor organization:

(a)

)

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No arbitrary or excessive initiation fees shall be required of the members of a legitimate
labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;
The members shall be entitled to full and detailed reports from their officers and
representatives of all financial transactions as provided for in the constitution and by-laws
of the organization;

The members shall directly elect their officers in the local union, as well as their national
officers in the national union or federation to which they or their local union is affiliated, by
secret ballot at intervals of five (5) years. No qualification requirement for candidacy to any
position shall be imposed other than membership in good standing in subject labor
organization. The secretary or any other responsible union officer shall furnish the Seeretary
of Labor and- Employment SOLE with a list of the newly-elected officers, together with the
appointive officers or agents who are entrusted with the handling of funds within thirty (30)
calendar days after the election of officers or from the occurrence of any change in the list
of officers of the labor organization;

‘The members shall determine by secret ballot, after due deliberation, any question of major
policy affecting the entire membership of the organization, unless the nature of the
organization or force majeure renders such secret ballot impractical, in which case, the board

of directors of the organization may make the decision in behalf of the general membership;


©

(g)

(hy

10)

()

No labor organization shall knowingly admit as members or continue in membership any
individualS who belongs to a subversive organization or who is ARE engaged directly or
indirectly in any subversive activity;

No person who has been convicted of a crime involving moral turpitude, INCLUDING
SEXUAL HARASSMENT OR OTHER SEX-RELATED OFFENSES, shall be eligible for

election as a union officer or for appointment to any position in the union;

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 money or funds unless he is THEY
ARE duly authorized pursuant to its constitution and by-laws;

Every payment of fees, dues or other contributions by a member shall be evidenced by a
receipt signed by the officer or agent making the collection and entered into the record of
the organization to be kept and maintained for the purpose;

The funds of the organization shall not be applied for any purpose or object other than those
expressly provided by its constitution and by-laws or those expressly authorized by written
resolution adopted by the majority of the members at a general meeting duly called for the
purpose;

Every income or revenue of the organization shall be evidenced by a record showing its
source, and every expenditure of its funds shall be evidenced by a receipt from the person to
whom the payment is made, which shall state the date, place and purpose of such payment.
Such record or receipt shall form part of the financial records of the organization.

Any action involving the funds of the organization shall prescribe after three (3) years fom
the date of submission of the annual financial report to the Department-ef Lebor-and
Employment DOLE or from the date the same should have been submitted as required by
law, whichever comes earlier: Provided, That this provision shall apply only to a legitimate
labor organization which has submitted the financial report requirements under this Code:
Provided, further, That failure of any labor organization to comply with the periodic
financial reports required by law and such rules and regulations promulgated thereunder six
(6) months after the effectivity of this Aet Code shall automatically result in the cancellation
of union registration of such labor organization;

The officers of any labor organization shall not be paid any compensation other than the

salaries and expenses due to their positions as specifically provided for in its constitution


0)

(m)

(n)

(0)

and by-laws, or in a written resolution duly authorized by a majority of all the members at a
general membership meeting duly called for the purpose. The minutes of the meeting and
the list of participants and ballots cast shall be subject to inspection by the Seeretary- of Labor
and Employment SOLE or his THEIR duly authorized representatives. Any irregularities in
the approval of the resolutions shall be a ground for impeachment or expulsion from the
organization;
The treasurerS of any labor organizationS and every officers thereof who is ARE responsible
for the account of such organization or for the collection, management, disbursement,
custody or control of the funds, moneys and other properties of the organization, shall render
to the organization and to its members a true and correct account of all moneys received and
paid by him THEM since he THEY assumed office or since the last day on which he THEY
rendered such account, and of all bonds, securities and other properties of the organization
entrusted to his THEIR custody or under his THEIR control. The rendering of such account
shall be made:
(1) Atleast once a year within thirty (30) days after the close of its fiscal year;
(2) At such other times as may be required by a resolution of the majority of the members
of the organization; and
(3) Upon vacating his THEIR office.
The account shall be duly audited and verified by affidavit and a copy thereof shall be
furnished the Secretary ef Labor SOLE.
The books of accounts and other records of the financial activities of any labor organization
shall be open to inspection by any officer or member thereof during office hours;
‘No special assessment or other extraordinary fees may be levied upon the members of a labor
organization unless authorized by a written resolution of a majority of all the members in a
general membership meeting duly called for the purpose. The 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.

Other than for mandatory activities under the Code, no special assessments, from any amount
due to an employee without an individual written authorization duly signed by the employee.


The 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 AND
LABOR-RELATED LAWS, INCLUDING GENDER-RELATED LAWS.

For this purpose, registered labor organizations may assess reasonable dues to finance labor

relations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be a ground for cancelation
of union registration oF expulsion of officers from office whi ete, At least thirty

percent (30%) of the members of a union or any member or members specially concerned may

report such violation to the Bureau. The Bureau shall have the power to hear and decide any
reported violation to mete the appropriate penalty.

Criminal and civi ies arising from violations of above rights and conditions of membership

shall continue to be under the jurisdiction of ordinary courts. (250a)

Chapter III
RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

Art. 246. Rights of Legitimate Labor Organizations. A legitimate labor organization shall have

the right:

(a) To act as the representative of its members for the purpose of collective bargaining;

(b) To be certified as the exclusive representative of all the employees in an appropriate
bargaining unit for purposes of collective bargaining;

(©) To be furnished by the employer, upon written request, with its annual audited financial
statements, including the balance sheet and the profit and loss statement, within thirty (30)
calendar days from the date of receipt of the request, after the union has been duly recognized
by the employer or certified as the sole and exclusive bargaining representative of the


employees in the bargaining unit, or within sixty (60) calendar days before the expiration of
the existing collective bargaining agreement, or during the collective bargaining negotiation;

(4) To own property, real or personal, for the use and benefit of the labor organization and its
members;

(©) To sue and be sued in its registered name; and

(8 To undertake all other activities designed to benefit the organization and its members,
including cooperative, housing, welfare and other projects not contrary to law.

‘Notwithstanding any provision of a general or special law to the contrary, the income and the
properties of legitimate labor organizations, including grants, endowments, gifts, donations and
contributions they may receive from fraternal and similar organizations, local or foreign, which

are actually, directly and exclusively used for their 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. (251)

Art. 247. Reportorial Requirements. The following are documents required to be submitted to

the Bureau by the legitimate labor organization concerned:

(a) _ Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list
of members who took part in the ratification of the constitution and by-laws within thirty
(30) days from adoption or ratification of the constitution and by-laws or amendments
thereto;

(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days
from election;

(©) Its annual financial report within thirty (30) days after the close of every fiscal year; and

(4) _Its list of members at least once a year or whenever required by the Bureau,

Failure to comply with the above requirements shall not be a ground for cancellation of union
registration but shall subject the erring officers or members to suspension, expulsion from
membership, or any appropriate penalty. (252)

Title V


COVERAGE

ART. 248. Coverage and Employees' Right to Self-Organization. All persons employed in

industrial and agricultural enterprises and in religious, charitable, medi

educational institutions, whether operating for profit or not, shall have the right to self-organization
and to form, join, or assist labor organizations of their own choosing for purposes of collective
bargaining. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and
those without any definite employers may form labor organizations for their mutual aid and

protection. (253)

Art. 249. Right of Employees in the Public Service. Employees of government corporations
established under the Corporation Code shall have the right to organize and to bargain collectively
with their respective employers. All other employees in the civil service shall have the right to
form associations for purposes not contrary to law. (254)

Art. 250, Incligibility of Managerial Employees to Join any Labor Organization; Right of

Supervisory Employees. Managerial employees are not eligible to join, assist or form any labor

organization. Supervisory employees shall not be eligible for membership in the collective

ive

bargaining unit of the rank-and-file employees but may join, assist or form separate coll
bargaining units and/or legitimate labor organizations of theit own. The rank and file union and
the supervisors’ union operating within the same establishment may join the same federation or

national union. (255)

Art. 251. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. The
inclusion as union members of employees outside the bargaining unit shall not be a ground for the
cancellation of the registration of the union. Said employees are automatically deemed removed

from the list of membership of said union. (256)

Art. 252, Non-Abridgment of Right to 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 the right to form, join, or assist


labor organizations for the purpose of collective bargaining through representatives of their own

choosing and to engage in lawful concerted acti
protection, subject to the provisions of Article 264 283 of this Code. (257a)

fies for the same purpose for their mutual aid and

Title VI
UNFAIR LABOR PRACTICES

Chapter I
CONCEPT

‘Art. 253, Concept of Unfair Labor Practice and Procedure for Prosecution Thereof. Unfair
labor practices violate the constitutional right of workers and employees to self-organization, are
inimical to the legitimate interests of both labor and management, including their right to bargain
collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect,
disrupt industrial peace and hinder the promotion of healthy and stable labor management

relations.

Consequently, unfair labor practices are not only violations of the civil rights of both labor and
management but are also criminal offenses against the State which shall be subject to prosecution
and punishment as herein provided.

Subject to the exercise by the President or by the Seeretary-of Labor and Employment SOLE of
the powers vested in them by Articles 263 282 and 264 283 of this Code, the civil aspects of all
cases involving unfair labor practices, which may include claims for actual, moral, exemplary and
other forms of damages, attorney's fees and other affirmative relief, shall be under the jurisdiction
of the Labor Asbiters JUDGES TO THE CLR. The Labor Arbiters JUDGES TO THE CLR shall
give utmost priority to the hearing and resolution of all cases involving unfair labor practices. They
shall resolve such cases within thirty (30) calendar days from the time they are submitted for
decision.


lity in the administrative proceedings shall bar recovery under the Ci

Code.

‘No criminal prosecution under this Title may be instituted without a final judgment finding that an
unfair labor practice was committed, having been first obtained in the preceding paragraph. During
the pendency of such administrative proceeding, the running of the period of prescription of the
criminal offense herein penalized shall be considered interrupted: Provided, however, That the
final judgment in the administrative proceedings shall not be binding in the criminal case nor be
considered as evidence of guilt but merely as proof of compliance of the requirements therein set
forth. (258a)

Chapter II
UNFAIR LABOR PRACTICES OF EMPLOYERS

Art, 254, Unfair Labor Practices of Employers. It shall be unlawful for an employerS to commit

any of the following unfair labor practices:

(2) To interfere with, restrain or coerce employees in the exercise of their right to self-
organization;

(>) To require as a condition of employment that a personS or an employceS shall not join a
labor organization or shall withdraw from one to which he belongs THEY BELONG;

(©) To contract out services or functions being performed by union members when such will
interfere with, restrain or coerce employees in the exercise of their right to self-organization;

(4) To initiate, dominate, assist or otherwise interfere with the formation or administration of

any labor organization, including the \g of financial or other support to it or its organizers

or supporters;

(©) 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 parties from requiring membership in
a recognized collective bargaining agent as a condition for employment, except those

employees who are already members of another union at the time of the signing of the


(8)

(h)

@

collective bargaining agreement. Employees of an appropriate bargaining unit who are not
members of the recognized collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the recognized collective
bargaining agent, if such non-union members accept the benefits under the collective
bargaining agreement: Provided, That the individual authorization required under Article
242 240, paragraph (0) of this Code shall not apply to the non-members of the recognized
collective bargaining agent;

To dismiss, discharge or otherwise prejudice or discriminate against an employeeS for
having given or being about to give testimony under this Code;

To violate the duty, OR REFUSE, to bargain collectively as-preseribed-by-this Code WITH
THE EMPLOYEES;

To pay negotiation or attorney’s fees to the union or its officers or agents as part of the
settlement of any issue in collective bargaining or any other dispute; or

To violate a collective bargaining agreement. The provisions of the preceding paragraph
notwithstanding, only the officers and agents of corporations, associations or partnerships
who have actually participated in, authorized or ratified unfair labor practices shall be held
criminally liable. (259a)

Chapter III

UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS

Art. 255, Unfair Labor Practices of Labor Organizations. It shall be unfair labor practice for a

labor organization, its officers, agents or representatives:

@)

(b)

To restrain or coerce employees in the exercise of their right to self-organization. However,

a labor organization shall have the right to prescribe its own rules with respect to the

acquisition or retention of membership;
To cause or attempt to cause an employerS to discriminate against an employeeS, including
discrimination against an employeeS with respect to whom membership in such organization

has been denied or to terminate an employeeS on any ground other than the usual terms and


©

@)

©

©

conditions under which membership or continuation of membership is made available to
other members;

To violate the duty, or refuse to bargain collectively with the employerS, provided it is the
representative of the employees;

To cause or attempt to cause an employerS to pay or deliver or agree to pay or deliver any
money or other things of value, in the nature of an exaction, for services which are not
performed or not to be performed, including the demand for fee for union negotiations;

To ask for or accept negotiation or attomney’s fees from employers as part of the settlement
of any issue in collective bargaining or any other dispute; or

To violate a collective bargaining agreement.

The provisions of the preceding paragraph notwithstanding, only the officers, members of

governing boards, representatives or agents or members of labor associations or organizations who

have actually participated in, authorized or ratified unfair labor practices shall be held criminally
liable. (260a)

Title VO
COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS

Art. 256. Procedure in Collective Bargaining. The following procedures shall be observed in
collective bargaining IN ALL PUBLIC AND PRIVATE ENTITIES:

(a)

(b)

©)

When a party desires to negotiate an agreement, it shall serve a written notice upon the other
party with a statement of its proposals. The other party shall make a reply thereto not later
than ten (10) calendar days from receipt of such notice;

Should differences arise on the basis of such notice and reply, either party may request for a
conference which shall begin not later than ten (10) calendar days from the date of request.

If the dispute is not settled, the Board shall intervene upon request of either or both parties

of at its own initiative and immediately call the parties to conciliation meetings. The Board

shall have the power to issue subpoenas requiring the attendance of the parties to such
meetings. It shall be the duty of the parties to participate fully and promptly in the
conciliation meetings the Board may call;


(@) During the conciliation proceedings in the Board, the parties are prohibited from doing any
act which may disrupt or impede the early settlement of the disputes; and

(©) The Board shall exert all efforts to settle disputes amicably and encourage the parties to
submit their case to a voluntary arbitrator. (2612)

Art. 257, Duty to Bargain Collectively in the Absence of Collective Bargaining Agreements.
In the absence of an agreement or other voluntary arrangement providing for a more expeditious
manner of collective bargaining, it shall be the duty of employerS and the representatives of the
employees to bargain collectively in accordance with the provisions of this Code. (262a)

Art. 258. Meaning of Duty to Bargain Collectively. The duty to bargain collectively means the
performance of a mutual obligation to meet and convene promptly and expeditiously in good faith
for the purpose of negotiating an agreement with respect to wages, hours of work and all other
terms and conditions of employment including 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 compel any party to agree to a proposal or to make any

concession. (263)

Art. 259. Duty to Bargain Collectively When There Exists a Collective Bargaining
Agreement. When there is a collective bargaining agreement, the duty to bargain collectively shall
also mean that neither party shall terminate nor modify such agreement during its lifetime.
However, either party can serve a written notice to terminate or modify the agreement at least sixty
(60) days prior to its expiration date. It shall be the duty of both parties to keep the status quo and
to continue in full force and effect the terms and conditions of the existing agreement during the

60-day period and/or until a new agreement is reached by the parties. (264a)

Art. 260. Terms of a Collective Bargaining Agreement. Any Collective Bargaining Agreement
that the parties may enter into shall, insofar as the representation aspect is concerned, be for a term
of five (5) years. No petition questioning the majority status of the incumbent bargaining agent
shall be entertained and no certification election shall be conducted by the Department of Labor
and Employment DOLE outside of the sixty-day period immediately before the date of expiry of


ns of the Col

such five-year term of the Collective Bargaining Agreement. Alll other provi ve
Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. Any
agreement on such other provisions of the Collective Bargaining Agreement entered into within
six (6) months from the date of expiry of the term of such other provisions as fixed in such
Collective Bargaining Agreement, shall retroact to the day immediately following such date. If
any such agreement is entered into beyond six (6) months, the parties shall agree on the duration
of retroactivity thereof. In case of a deadlock in the renegotiation of the Collective Bargaining

Agreement, the parties may exercise their rights under this Code. (265)

Art. 261. Injunction Prohibited. No temporary or permanent injunction or restraining order in
any case involving or growing out of labor disputes shall be issued by any court or other entity,
except as otherwise provided in Articles 218 210 and 264 283 of this Code. (266a)

Art. 262. Exclusive Bargaining Representation and Workers’ Participation in Policy and
Decision-Making. The labor organization designated or selected by the majority of the employees
in an appropriate collective bargaining unit shall be the exclusive representative of the employees
in such unit for the purpose of collective bargaining. However, an individual employee or group
of employees shall have the right at any time to present grievances to their employers.

Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such

rules and regulations as the Seoretary-of-Labor-and-Employment SOLE may promulgate, to

participate in policy and decision-making processes of the establishment where they are employed

insofar as said processes will directly affect their rights, benefits and welfare. For this purpose,

workers and employers may form labor-management councils: Provided, That the representatives
of the workers in such labor-management councils shall be elected by atleast the majerity- of aH
employees—in—said—establishment THE APPROPRIATE EXCLUSIVE BARGAINING
REPRESENTATIVE; PROVIDED, FURTHER, THAT AT LEAST FIFTY PERCENT (50%) OF
THE ELECTED REPRESENTATIVES OF EACH OF THE WORKERS AND EMPLOYERS
ARE WOMEN.


WHERE THERE ARE BARGAINING UNITS OF RANK-AND-FILE AND SUPERVISORY
EMPLOYEES IN THE SAME ESTABLISHMENT, THE EMPLOYEES SHALL BE ENTITLED
TO BE REPRESENTED IN TWO (2) SEPARATE LABOR-MANAGEMENT COUNCILS IN
THE ESTABLISHMENT. WHERE NO LEGITIMATE LABOR ORGANIZATION EXIST,
THE WORKERS REPRRESENTATIVE SHALL BE ELECTED DIRECTLY BY THE
EMPLOYEES AT LARGE; PROVIDED, THAT THERE SHALL BE TWO (2) SEPARATE
LABOR-MANAGEMENT COUNCILS, ONE WITH RANK-AND-FILE EMPLOYEES
REPRESENTATIVES, AND ANOTHER WITH SUPERVISORY EMPLOYEES
REPRESENTATIVES; PROVIDED, FINALLY, THAT AT LEAST FIFTY PERCENT (50%) OF
THE REPRESENTATIVES OF EACH OF THE WORKERS AND EMPLOYERS
REPRESENTATION ARE WOMEN. (267a)

Art. 263. Representation Issue in Organized Establishments. In organized establishments,
when a verified petition questioning the majority status of the incumbent bargaining agentS is filed

by any legitimate labor organization including a national union or federation which has already

issued a charter certificate to its local chapter participating in the certification election or a local
chapter which has been issued a charter certificate by the national union or federation before the
Department-ef Labor-and-Employment DOLE within the sixty (60)-day period before the
expiration of the collective bargaining agreement, the MEDIATOR-ARBITER (Med-Arbiter)
shall automatically order an election by secret ballot when the verified petition is supported by the
written consent of at least twenty-five percent (25%) of all the employees in the bargaining unit to

ascertain the will of the employees in the appropriate bargaining unit. To have a valid election, at

least a majority of all eligible voters in the unit must have cast their votes. The labor union
receiving the majority of the valid votes cast shall be certified as the exclusive bargaining agent of
all the workers in the unit. When an election which provides for three or more choices results in
no choice receiving a majority of the valid votes cast, a run-off election shall be conducted between
the labor unions receiving the two highest number of votes: Provided, That the total number of
votes for all contending unions is at least fifty percent (50%) of the number of votes cast. In cases
where the petition was filed by a national union or federation, it shall not be required to disclose

the names of the local chapter's officers and members.


At the expiration of the freedom period, she employerS shall continue to recognize the majority

ication election is filed.

status of the incumbent bargaining agent$ where no petition for ci
(268a)

Art, 264, Petitions in Unorganized Establishments. In any establishment where there is no
certified bargaining agent, a certification election shall automatically be conducted by the Med-
Arbiter UPON THE TRANSMITTAL OF THE RECORDS FROM THE REGIONAL
DIRECTOR. (269a)

Art. 265. When an Employer May File Petition. When requested to bargain collectively, an
EMPLOYERS may petition the Bureau for an election. If there is no existing certified collective

bargaining agreement in the unit, the Bureau shall, after hearing, order a certification election. All

certification cases shall be decided within twenty (20) working days. The Bureau shall conduct a
certification election within twenty (20) days in accordance with the rules and regulations

prescribed by the Secretary of Labor- and Employment SOLE. (270a)

Art. 266. Employer as Bystander. In all cases, whether the petition for certification election is
filed by an employers or a legitimate labor organizationS, the employerS shall not be considered

a party thereto with a concomitant right to oppose a petition for certification election. Fhe

employers’ participation in such proceedings shall be limited to: (1) being notified or informed of
petitions of such nature; and (2) submitting the list of employees during the pre-election conference
should the Med-Arbiter act favorably on the petition. (271a)

ART. 267. RECLASSIFICATION OF POSITIONS, TRANSFERS, ETC.
RECLASSIFICATION, DEMOTION, PROMOTION AND TRANSFER OF POSITIONS
SHALL NOT BE UNDERTAKEN DURING THE SIXTY (60)-DAY FREEDOM PERIOD OR
THROUGHOUT THE CONDUCT OF CERTIFICATION, CONSENT, RUN-OFF ELECTION,
OR RERUN. (new)

Art. 268. Appeal from Certification Election Orders. Any party to an election may appeal the
order or results of the election as determined by the Med-Arbiter directly to the Seeretary-of Labor


and Employment SOLE on the ground that the nules and regulations or parts thereof established
by the Secretary of Labor-and Employment SOLE for the conduct of the election have been
violated. WHERE APPEAL IS AVAILABLE, A PARTY AGGRIEVED BY THE DECISION OF
THE MED-ARBITER HAS TEN (10) DAYS FROM RECEIPT OF THE ADVERSE ORDER
WITHIN WHICH TO APPEAL TO THE SOLE. Such appeal shall be decided within fifteen (15)
calendar days. (272a)

ART. 269. WHERE TO FILE. ANY LEGITIMATE LABOR ORGANIZATION MAY FILE A
REQUEST FOR SOLE AND EXCLUSIVE BARGAINING AGENT/REPRESENTATIVE
(SEBA) CERTIFICATION IN THE REGIONAL OFFICE WHICH ISSUED ITS CERTIFICATE
OF REGISTRATION OR CERTIFICATE OF CREATION OF CHARTERED LOCAL. (new)

ART. 270. REQUIREMENTS FOR REQUEST OF SEBA CERTIFICATION. THE
REQUEST FOR CERTIFICATION SHALL INDICATE:

(@) THE NAME AND ADDRESS OF THE REQUESTING LEGITIMATE LABOR
ORGANIZATION;

(b) THE NAME AND ADDRESS OF THE COMPANY WHERE IT OPERATES;

(©) THE BARGAINING UNIT SOUGHT TO BE REPRESENTED;

(d) THE APPROXIMATE NUMBER OF EMPLOYEES IN THE BARGAINING UNIT; AND

() THE STATEMENT OF THE EXISTENCE OR NON-EXISTENCE OF OTHER LABOR
ORGANIZATIONS OR COLLECTIVE BARGAINING AGREEMENT.

THE CERTIFICATE OF REGISTRATION AS DULY CERTIFIED BY THE PRESIDENT OF
THE REQUESTING UNION OR CERTIFICATE OF CREATION OF CHARTERED LOCAL
AS DULY CERTIFIED BY THE PRESIDENT OF THE FEDERATION OF THE LOCAL
SHALL BE ATTACHED TO THE REQUEST. (new)

ART. 271. ACTION ON THE REQUEST. WITHIN ONE (1) DAY FROM THE SUBMISSION
OF THE REQUEST, THE REGIONAL DIRECTOR SHALL:


(a) DETERMINE WHETHER THE REQUEST IS COMPLIANT WITH THE PRECEDING
ARTICLE AND WHETHER THE BARGAINING UNIT SOUGHT TO BE
REPRESENTED IS ORGANIZED OR NOT; AND

(b) REQUEST A COPY OF THE PAYROLL FOR PURPOSES OF SEBA CERTIFICATION
PURSUANT TO THE NEXT PRECEDING ARTICLE.

IF THE REGIONAL DIRECTOR FINDS THE SUBMISSION DEFICIENT, THE
REQUESTING UNION OR LOCAL SHALL BE ADVISED TO COMPLY WITHIN TEN (10)
DAYS FROM NOTICE. FAILURE TO COMPLY WITHIN THE PRESCRIBED PERIOD
SHALL BE DEEMED AS A WITHDRAWAL OF THE REQUEST FOR SEBA
CERTIFICATION. (new)

ART. 272. REQUEST FOR CERTIFICATION IN UNORGANIZED ESTABLISHMENT
WITH ONLY ONE LEGITIMATE LABOR ORGANIZATION; VALIDATION
PROCEEDINGS. IF THE REGIONAL DIRECTOR FINDS THE ESTABLISHMENT
UNORGANIZED WITH ONLY ONE LEGITIMATE LABOR ORGANIZATION, THEY
SHALL CALL A CONFERENCE WITHIN FIVE (5) WORK DAYS FOR THE SUBMISSION
OF THE FOLLOWING:

(a) THE NAMES OF EMPLOYEES IN THE COVERED BARGAINING UNIT WHO
SIGNIFY THEIR SUPPORT FOR THE CERTIFICATION, PROVIDED THAT SAID
EMPLOYEES COMPRISE AT LEAST MAJORITY OF THE NUMBER OF
EMPLOYEES IN THE COVERED BARGAINING UNIT; AND

(b) CERTIFICATION UNDER OATH BY THE PRESIDENT OF THE REQUESTING
UNION OR LOCAL THAT ALL DOCUMENTS SUBMITTED ARE TRUE AND
CORRECT BASED ON THEIR PERSONAL KNOWLEDGE.

THE SUBMISSION SHALL BE PRESUMED TO BE TRUE AND CORRECT UNLESS
CONTESTED UNDER OATH BY ANY MEMBER OF THE BARGAINING UNIT DURING
THE VALIDATION CONFERENCE. FOR THIS PURPOSE, THE EMPLOYER OR ANY


REPRESENTATIVE OF THE EMPLOYER SHALL NOT BE DEEMED A PARTY-IN-
INTEREST BUT ONLY AS A BY-STANDER TO THE PROCESS OF CERTIFICATION.

IF THE REQUESTING UNION OR LOCAL FAILS TO COMPLETE THE REQUIREMENTS
FOR SEBA CERTIFICATION DURING THE CONFERENCE, THE REQUEST FOR SEBA
CERTIFICATION SHALL BE REFERRED TO THE APPROPRIATE MED-ARBITER FOR
THE CONDUCT OF CERTIFICATION ELECTIONS. (new)

ART. 273. ACTION ON THE SUBMISSION. IF THE REGIONAL DIRECTOR FINDS THE
REQUIREMENTS COMPLETE, THEY SHALL ISSUE DURING THE CONFERENCE A
CERTIFICATION AS SOLE AND EXCLUSIVE BARGAINING AGENT ENJOYING THE
RIGHTS AND PRIVILEGES OF AN EXCLUSIVE BARGAINING AGENT OF ALL THE
EMPLOYEES IN THE COVERED BARGAINING UNIT.

THE REGIONAL DIRECTOR SHALL CAUSE THE POSTING OF THE SEBA
CERTIFICATION FOR FIFTEEN (15) DAYS IN AT LEAST TWO (2) CONSPICUOUS
PLACES IN THE ESTABLISHMENT OR COVERED BARGAINING UNIT. (new)

ART. 274. EFFECT OF CERTIFICATION. UPON THE ISSUANCE OF THE
CERTIFICATION AS SOLE AND EXCLUSIVE BARGAINING AGENT, THE CERTIFIED
UNION OR LOCAL SHALL ENJOY ALL THE RIGHTS AND PRIVILEGES OF AN
EXCLUSIVE BARGAINING AGENT OF ALL THE EMPLOYEES IN THE COVERED
BARGAINING UNIT.

THE CERTIFICATION SHALL BAR THE FILING OF A PETITION FOR CERTIFICATION
ELECTION BY ANY LABOR ORGANIZATION FOR A PERIOD OF ONE (1) YEAR FROM
THE DATE OF ITS ISSUANCE. UPON EXPIRATION OF THIS ONE-YEAR PERIOD, ANY
LEGITIMATE LABOR ORGANIZATION MAY FILE A PETITION FOR CERTIFICATION
ELECTION IN THE SAME BARGAINING UNIT REPRESENTED BY THE CERTIFIED
LABOR ORGANIZATION, UNLESS A COLLECTIVE BARGAINING AGREEMENT


BETWEEN THE EMPLOYER AND THE CERTIFIED LABOR ORGANIZATION WAS
EXECUTED AND VALIDLY REGISTERED WITH THE REGIONAL OFFICE. (new)

ART. 275. REQUEST FOR CERTIFICATION IN AN UNORGANIZED
ESTABLISHMENT WITH MORE THAN ONE (1) LEGITIMATE LABOR
ORGANIZATION. IF THE REGIONAL DIRECTOR FINDS THE ESTABLISHMENT
UNORGANIZED WITH MORE THAN ONE LEGITIMATE LABOR ORGANIZATION,
THEY SHALL REFER THE SAME TO THE APPROPRIATE MED-ARBITER FOR THE
CONDUCT OF CERTIFICATION ELECTION.

THE CERTIFICATION ELECTION SHALL BE CONDUCTED IN ACCORDANCE WITH
ARTICLE 264. (new)

ART. 276. REQUEST FOR CERTIFICATION IN ORGANIZED ESTABLISHMENT. IF
THE REGIONAL DIRECTOR FINDS THE ESTABLISHMENT ORGANIZED, THEY SHALL
REFER THE SAME TO THE MEDIATOR-ARBITER FOR THE DETERMINATION OF THE
PROPRIETY OF CONDUCTING A CERTIFICATION ELECTION IN ACCORDANCE WITH
ARTICLE 263. (new)

A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

ART. 277. Grievance Machinery and Voluntary Arbitration. The parties to a Collective

ms that will ensure the mutual observance of

include therein provi

Bargaining Agreement sl

its terms and conditions. They shall establish a machinery for the adjustment and resolution of

grievances arising from the interpretation or implementation of their Collective Bargaining
Agreement and those arising from the interpretation or enforcement of company personnel

policies.


All grievances submitted to the grievance machinery which are not settled within seven (7)
calendar days from the date of its submission shall automatically be referred to voluntary
arbitration prescribed in the Collective Bargaining Agreement.

For this purpose, parties to a Collective Bargaining Agreement shall name and designate in
advance a Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the agreement a
procedure for the selection of such Voluntary Arbitrator or panel of Voluntary Arbitrators,
preferably from the listing of qualified Voluntary Arbitrators duly accredited by the Board. In case
the parties fail to select a Voluntary Arbitrator or panel of Voluntary Arbitrators, the Board shall
designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may be necessary,
pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement, which
shall act with the same force and effect as if the Arbitrator or panel of Arbitrators have been
selected by the parties as described above. (273)

Art. 278. Jurisdiction of Voluntary Arbitrators and Panel of Voluntary Arbitrators. The
Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive
jurisdiction to hear and decide all unresolved grievances arising from the interpretation or
implementation of the Collective Bargaining Agreement and those arising from the interpretation
or enforcement of company personnel 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
Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the

economic provisions of such agreement.

The Commission CLR, its Regional Offices and the Regional Directors of the Departmentof Labor
‘and Employment DOLE shall not entertain disputes, grievances or matters under the exclusive and
original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall
immediately dispose and refer the same to the Grievance Machinery or Voluntary Arbitration
provided in the Collective Bargaining Agreement. (274a)


Art. 279. Jurisdiction over Other Labor Disputes. The Voluntary Arbitrator or panel of
Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all other labor

disputes including unfair labor practices and bargaining deadlocks. (275)

Art. 280. Procedures. The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have the
power to hold hearings, receive evidence and take whatever action is necessary to resolve the issue

or issues subject of the dispute, including efforts to effect a voluntary settlement between parties.

All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of
any third party or the exclusion of any witness from the proceedings shall be determined by the
Voluntary Arbitrator or panel of Voluntary Arbitrators. Hearing may be adjourned for cause or
upon agreement by the parties.

FAILURE TO APPEAR IN THE VOLUNTARY ARBITRATION DESPITE NOTICE SHALL
BE DEEMED A WAIVER OF THE RIGHT TO BE HEARD. THE UNION MAY FILE AN EX

PARTE MOTION TO SUBMIT THE ISSUE FOR EARLY RESOLUTION.

Unless the parties agree otherwise, it shall be mandatory for the Voluntary Arbitrator or panel of

Voluntary Arbitrators to render an award or decision within twenty (20) calendar days from the
date of submission of the dispute to voluntary arbitration.

The award or decision of the Voluntary Arbitrator or panel of Voluntary Arbitrators shall contain
the facts and the law on which it is based. It shall be final and executory after ten (10) calendar
days from receipt of the copy of the award or decision by the parties. A PARTY AGGRIEVED
BY THE RULING MAY FILE A MOTION FOR RECONSIDERATION WITHIN TEN (10)
DAYS FROM NOTICE. ONLY AFTER THE RESOLUTION OF THE MOTION FOR
RECONSIDERATION MAY THE AGGRIEVED PARTY APPEAL TO THE COURT OF
APPEALS BY FILING A PETITION FOR REVIEW UNDER RULE 43 OF THE RULES OF
COURT WITHIN FIFTEEN (15) DAYS FROM NOTICE.


Upon motion of any interested party, the Voluntary Arbitrator or panel of Voluntary Arbitrators
or the Labor- Arbiter JUDGE OF THE CLR in the region where the movant resides, in case of the
absence or incapacity of the Voluntary Arbitrator or panel of Voluntary Arbitrators, for any reason,
may issue a writ of execution requiring either the sheriff of the Commission CLR or regular courts
or any public official whom the parties may designate in the submission agreement to execute the
final decision, order or award. (276a)

Art. 281. Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. The parties to a
Collective Bargaining Agreement shall provide therein a proportionate sharing scheme on the cost
of voluntary arbitration including the Voluntary Arbitrator's fee. The fixing of fee of Voluntary
Arbitrators, or panel of Voluntary Arbitrators, whether shouldered wholly by the parties or
subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:

(a) Nature of the case;

(>) Time consumed in hearing the case;

(©) Professional standing of the Voluntary Arbitrator;

(4) Capacity to pay of the parties; and

(©) Fees provided for in the Revised Rules of Court. (277)

Title IX
STRIKES AND LOCKOUTS

Chapter I
STRIKES AND LOCKOUTS

Art. 282. Strikes, Picketing, and Lockouts.
(@ _ Itis the policy of the State to encourage free trade unionism and free collective bargaining.

(6) Workers shall have the right to engage in concerted activities for purposes of collective
bargaining or for their mutual benefit and protection. The right of legitimate labor

organizations to strike and picket and of employers to lockout, consistent with the national


©

@

©

interest, shall continue to be recognized and respected. However, no labor union may strike

and no employer may declare a lockout on grounds involving inter-union and intra-union

disputes.

In cases of bargaining deadlocks, the duly certified or recognized bargaining agent may file
a notice of strike or the employer may file a notice of lockout with the Ministry DOLE at
least THIRTY (30) days before the intended date thereof. In cases of unfair labor practice,
the period of notice shall be FIFTEEN (15) days and in the absence of a duly certified or

recognized bargaining agent, the notice of strike may be led by any legitimate labor

organization in behalf of its members. However, in case of dismissal from employment of
union officers duly elected in accordance with the union constitution and by-laws, which
may constitute union busting where the existence of the union is threatened, the 45
FIFTEEN-day cooling-off period shall not apply and the union may take action immediately.
The notice must be in accordance with such implementing rules and regulations as the

Minister of Labor and Employment SOLE may promulgate.

During the cooling-off period, it shall be the duty of the Ministry DOLE to exert all efforts

at mediation and conciliation to effect a voluntary settlement. Should the dispute remain

unsettled until the lapse of the requisite number of days from the mandatory filing of the

notice, the labor union may strike or the employer may declare a lockout.

A decision to declare a strike must be approved by a majority of the total union membership
in the bargaining unit concemed, obtained by secret ballot in meetings or referenda called
for that purpose. A decision to declare a lockout must be approved by a majority of the board
of directors of the corporation or association or of the partners in a partnership, obtained by
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 Ministry DOLE may, at its own initiative or upon the request of any
affected party, supervise the conduct of the secret balloting. In every case, the union or the
employer shall furnish the Ministry DOLE the results of the voting atleast seven-days ANY
TIME before the intended strike or lockout, subject to the cooling-off period herein provided.


(g)

‘When, in his THEIR opinion, there exists a labor dispute causing or likely to cause a strike
or lockout in an industry indispensable to the national interest, the Seeretary-of Labor-and
Employment SOLE may assume jurisdiction over the dispute and decide it or certify the
same to the Commission CLR 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 striking or locked out employees shall immediately
all
workers under the same terms and conditions prevailing before the strike or lockout. The

‘Seoretary-of Labor and Employment SOLE or the Commission CLR may seek the assistance

of law enforcement agencies to ensure compliance with this provision as well as with such

return to work and the employer shall immediately resume operations and readmi

orders as THEY may issue to enforce the same.

FOR THE GUIDANCE OF THE WORKERS AND EMPLOYERS IN THE FILING OF

PETITION FOR ASSUMPTION OF JURISDICTION, THE FOLLOWING

INDUSTRIES/SERVICES ARE HEREBY RECOGNIZED AS DEEMED

INDISPENSABLE TO THE NATIONAL INTEREST:

(1) HOSPITAL SECTOR;

(2) ELECTRIC POWER INDUSTRY;

(3) WATER SUPPLY SERVICES, EXCLUDING SMALL WATER SUPPLY
SERVICES SUCH AS BOTTLING AND REFILLING STATIONS;

(4) AIR TRAFFIC CONTROL; AND

(5) SUCH OTHER INDUSTRIES AS MAY BE RECOMMENDED BY THE
NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC).

In line with the national concern for and the highest respect accorded to the right of patients
to life and health, strikes and lockouts in hospitals, clinics and similar medical institutions
shall, to every extent possible, be avoided, and all serious efforts, not only by labor and
‘management but government as well, be exhausted to substantially minimize, if not prevent,

their adverse effects on such life and health, through the exercise, however legitimate, by


@)

@

labor of its right to strike and by management to lockout. In labor disputes adversely
affecting the continued operation of such hospitals, clinics or medical institutions, it shall be
the duty of the striking union or locking-out employer to provide and maintain an effective
skeletal workforce of medical and other health personnel, whose movement and services
shall be unhampered and unrestricted, as are necessary to insure 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, therefore, the Seeretary-of-Labor-and
Employment SOLE may immediately assume, within twenty-four (24) hours from
knowledge of the occurrence of such a strike or lockout, jurisdiction over the same or certify
it to the- Commission CLR for compulsory arbitration. For this purpose, the contending
parties are strictly enjoined to comply with such orders, prohibitions and/or injunctions as
are issued by the Seeretary-of Labor-and Employment SOLE. or the Commission CLR, under
pain of immediate disciplinary action, including dismissal or loss of employment status or
payment by the locking-out employer of backwages, damages and other affirmative relief,
even criminal prosecution against either or both of them.

The foregoing notwithstanding, the President of the Philippines shall not be precluded from
determining the industries that, in his THEIR opit

interest, and from intervening at any time and assuming jurisdiction over any such labor

n, are indispensable to the national

dispute in order to settle or terminate the same.

Before or at any stage of the compulsory arbitration process, the parties may opt to submit
their dispute to voluntary arbitration.

The Seeretary-of Labor-and-Empleyment SOLE, the Cemmissien CLR or the voluntary
arbitrator or panel of voluntary arbitrators shall decide or resolve the dispute within thirty

(30) calendar days from the date of the assumption of jurisdiction or the certification or
submission of the dispute, as the case may be. The decision of the President, the Seeretary
of Labor and Employment SOLE, the Commission CLR or the voluntary arbitrator shall be
final and executory ten (10) calendar days after receipt thereof by the parties. (278a)


Art. 283. Prohibited Activities.

@)

(b)

©

@

No labor organization or employer shall declare a strike or lockout without first having
bargained collectively in accordance with Title VI of this Book or without first having filed
the notice required in the preceding Article or without the necessary strike or lockout vote
first having been obtained and reported to the MinisteyBOARD.

No strike or lockout shall be declared after assumption of jurisdiction by the President or the
‘Minister SOLE or after certification or submission of the dispute to compulsory or voluntary
arbitration or during the pendency of cases involving the same grounds for the strike or
lockout.

Any WORKERS whose employment has HAVE been terminated as a consequence of any
unlawful lockout shall be entitled to reinstatement with full backwages. Any UNION
OFFICERS who knowingly participates in an illegal strike and any WORKERS or UNION
OFFICERS who knowingly participates in the commission of illegal acts during a strike may
be declared to have lost his THEIR employment status: Provided, That mere participation of
@ WORKERS in a Jew! strike shall not constitute sufficient ground for termination of his
THEIR employment, even if a replacement had been hired by the employer during such
strike. IN ALL CASES, THE TERMINATION OF EMPLOYMENT SHALL CONFORM.
TO SUBSTANTIVE AND PROCEDURAL REQUIREMENTS.

No person shall obstruct, impede, or interfere with by force, violence, coercion, threats or
intimidation, any peaceft picketing OR STRIKE by employees during any labor
controversy or in the exercise of the right to self-organization or collective bargaining, or

shall aid or abet such obstruction or interference.

No employer shall use or employ any strike-breaker, nor shall any person be employed as a
strike-breaker.

NO PUBLIC OFFICIAL OR EMPLOYEE, INCLUDING OFFICERS AND PERSONNEL
OF THE ARMED FORCES OF THE PHILIPPINES OR THE PHILIPPINE NATIONAL


POLICE, OR ARMED PERSON SHALL INTERFERE WITH THE WORKERS’
EXERCISE OF THE RIGHT TO PEACEFUL CONCERTED ACTION, INCLUDING
THE RIGHT TO STRIKE. No public official or employee, inch
of the New Armed Forces of the Philippines or the Integrated PHILIPPINE National Police,
or armed person, shall bring in, introduce or escort in any manner, any INDIVIDUALS who

ing officers and personnel

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 shall be interpreted to
prevent any PUBLIC OFFICERS from taking any measure necessary to maintain peace and
order, protect life and property, and/or enforce the law and legal order.

(©) No person engaged in picketing shall commit any act of violence, coercion or intimidation

(f) NO PERSON SHALL TRANSPORT PERSONNEL, RAW MATERIALS, OR FINISHED
PRODUCTS INTO OR OUT FROM THE STRIKE AREA DURING A STRIKE. (279)

Art. 284, Improved Offer Balloting. In an effort to settle a strike, the Department of Labor-and
Employment DOLE shall conduct a referendum by secret balloting on the improved offer of the
employer on or before the 30th day of the strike. When at least a majority of the union members
vote to accept the improved offer the striking workers shall immediately return to work and the
employer shall thereupon readmit them upon the signing of the agreement.

In case of a lockout, the Department-of Labor-and- Employment DOLE shall also conduct a

referendum by secret balloting on the reduced offer of the union on or before the 30th day of the
lockout. 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
immediately return to work and the EMPLOYERS shall thereupon readmit them upon the signing
of the agreement. (280a)


Art, 285, Requirement for Arrest and Detention, Except-on-grounds-of national-seourity-and

; No union members or union organizers SHALL

be INVITED FOR QUESTIONING, arrested or detained for union activities without previews
eonsultations CLEARANCE with the Seeretary-of Labor SOLE. (281a)

Chapter II
ASSISTANCE TO LABOR ORGANIZATIONS

Art. 286. Assistance by the Department-of LaberDOLE. The Depertment-of Labor DOLE, at
the initiative of the Seeretary-of Labor SOLE, shall extend special assistance to the organization,
for purposes of collective bargaining, of the most underprivileged workers who, for reasons of
‘occupation, organizational structure or insufficient incomes, are not normally covered by major

labor organizations or federations. (282a)

Art. 287. Assistance by the Institute of Labor and Manpower Studies. The Institute of Labor
and Manpower Studies shall render technical and other forms of assistance to labor organizations

and employer organizations in the field of labor education, especially pertaining to collective
bargaining, arbitration, labor standards and the Labor this Code of the Phitippines.in general. (283)

Chapter 111
PENALTIES FOR VIOLATION

Art. 288. Penalties.

(a) Any person violating any of the provisions of Article 264.283 of this Code shall be punished
by a fine of not less than one thousand pesos (P1,000.00) nor more than ten thousand pesos
(P10,000.00) and/or imprisonment for not less than three (3) months nor more than three (3)
years, or both such fine and imprisonment, at the discretion of the court, Prosecution under
this provision shall preclude prosecution for the same act under the Revised Penal Code, and

vice versa.

(b) Upon the recommendation of the Minister of Labor and Employment SOLE and the Minister
SECRETARY of National Defense, foreigners who violate the provisions of this Title shall


be subject to immediate and summary deportation by the Commissionon BUREAU OF
Immigration end Deportation and shall be permanently barred from re-entering the country
without the special permission of the President of the Philippines. (287a)

Title X
SPECIAL PROVISIONS

Art. 289. Study of Labor-Management Relations. The Seeretary-efLaber SOLE shall have the
power and it shall be his THEIR duty to inquire into:

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(s)

(h)

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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;

the extent and results of the methods of collective bargaining in the determination of terms
and conditions of employment;

the methods which have been tried by employers and associations of employees for
maintaining mutually satisfactory relations;

desirable industrial practices which have been developed through collective bargaining and
other voluntary arrangements;

the possible ways of increasing the usefulness and efficiency of collective bargaining for
settling differences;

the possibilities for the adoption of practical and effective methods of labor-management
cooperation;

any other aspects of employer-employee relations concerning the promotion of harmony and
understanding between the parties; and

the relevance of labor laws and labor relations to national development. The Seeretary+of
‘Labor SOLE shall also inquire into the causes of industrial unrest and take all the necessary
steps within his THEIR power as may be prescribed by law to alleviate the same, and shall

from time to time recommend the enactment of such remedial legislation as in his THEIR

judgment may be desirable for the maintenance and promotion of industrial peace. (288a)


Art. 290, Visitorial Power. The Secretary of Labor and Employment SOLE or his THEIR duly
authorized representative is hereby empowered to inquire into financial activities of legitimate
labor organizations upon the filing of a complaint under oath and duly supported by the written
consent of at least twenty percent (20%) of the total membership of the labor organization
concerned and to examine their books of accounts and other records to determine compliance or
non-compliance with the law and to prosecute any violations of the law and the union constitution
and bylaws: Provided, That such inquiry or examination shall not be conducted during the sixty
(60) days freedom period nor within the thirty (30) days immediately preceding the date of election
of union officials. (289a)

Art, 291. Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Councils.

(a) Tripartism in labor relations is hereby declared a State 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—ofLebor—and—Employment SOLE or his THEIR duly authorized
representatives may from time to time call a national, regional, or industrial tripartite
conference of representatives of government, workers and employers, and other interest
groups as the case may be, for the consideration and adoption of voluntary codes of
principles designed to promote industrial peace based on social AND GENDER justice or to
align labor movement relations with established priorities in economic and social
development. In calling such conference, the Seoretary-of Labor-and_Empleyment SOLE
may consult with THE PHILIPPINE COMMISSION ON WOMEN (PCW) AND accredited
representatives of workers and employers.

(©) A National Tripartite Industrial Peace Council (NTIPC) shall be established, headed by the
Secretary-of Labor and Employment SOLE, with twenty (20) representatives each from the
labor and employers’ sectors to be designated by the President at regular intervals. For this
purpose, a sectoral nomination, selection, and recall process shall be established by the
DOLE in consultation with the sectors observing the ‘most representative’ organization

criteria of ILO Convention No. 144.


Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level shall also be
established with representatives from government, workers and employers to serve as a
continuing forum for tripartite advisement and consultation in aid of streamlining the role of
government, empowering workers’ and employers’ organizations, enhancing their respective
rights, attaining industrial peace, and improving productivity.

The TIPCs shall have the following functions:

(1) Monitor the full implementation and compliance of concerned sectors with the
provisions of all tripartite instruments, including international conventions and
declarations, codes of conduct, and social accords;

(2) Participate in national, regional or industry-specific tripartite conferences which the
President or the Seeretary-of Labor-and Employment SOLE may call from time to
time;

(3) Review existing labor, economic and social policies and evaluate local and
international developments affecting them;

(4) Formulate, for submission to the President or to Congress, tripartite views,
recommendations and proposals on labor, economic, and social concems, including
the presentation of tripartite positions on relevant bills pending in Congress;

(5) Advise the Seereteryef Laber-and—Empleyment SOLE in the formulation or
implementation of policies and legislation affecting labor and employment;

(6) Serve as a communication channel and a mechanism for undertaking joint programs
among government, workers, employers and their organizations toward enhancing
labor-management relations; and

ies and rules, consistent with development objectives.

All TIPCs shall be an integral part of the organizational structure of the NTIPC. The

operations of all TIPCs shall be funded from the regular budget of the DOLE. (290a)

(7) Adopt its own program of acti

Art. 292. Government Employees. The terms and conditions of employment of all government
employees, including employees of government-owned and controlled corporations, shall be

governed by the Civil Service Law, rules and regulations. Their salaries shall be standardized by


the National Assembly CONGRESS as provided for in the New Constitution, However, there shall
be no reduction of existing wages, benefits and other terms and conditions of employment being
enjoyed by them at the time of the adoption of this Code. (291)

Art. 293, Miscellaneous Provisions.

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(b)

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(d)

All unions are authorized to collect reasonable membership fees, union dues, assessments
and fines and other contributions for labor education and research, mutual death and
hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings.

Subject to the constitutional right of workers to security of tenure and their right to be
protected against dismissal except for a just and authorized cause and without prejudice to
the requirement of notice under Article 283 299 of this Code, the employer shall furnish the
workerS whose employment is ARE sought to be terminated a written noticeS containing a
statement of the causes for termination and shall afford the latter ample opportunity to be
heard and to defend himself THEMSELVES with the assistance of his THEIR representative
if he THEY so desire in accordance with company rules and regulations promulgated
pursuant to guidelines set by the Department of Labor and Employment DOLE. Any decision
taken by the employer shall be without prejudice to the right of the workerS to contest the
validity or legality of his THEIR dismissal by filing a complaint with the regional branch of
the ission CLR. The burden of proving that the termination
was for a valid or authorized cause shall rest on the employer. The Seeretary-ofthe
Department-of Labor and-Employment SOLE 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 Empleyment- DOLE before whom such dispute is

pending that the termination may cause a serious labor dispute or is in implementation of a

mass lay-off.
Any eEmployeeS, whether employed for a definite period or not, shall, beginning on his
THEIR first day of service, be considered as an employeeS for purposes of membership in
any labor union.

No docket fee shall be assessed in labor standards disputes. In all other disputes, docket fees
may be assessed against the filing party, provided that in bargaining deadlock, such fees shall
be shared equally by the negotiating parties.


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(h)

‘The Minister of Labor and Employment SOLE and the Minister 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 appropriations 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 implementation of the
Collective Bargaining Agreement, including the Arbitrator's fees, and for such other related
purposes to promote and develop voluntary arbitration. The Board shall administer the

Special Voluntary Arbitration Fund in accordance with the guidelines it may adopt upon the
recommendation of the Council, which guidelines shall be subject to the approval of the
Searaaey-of-Labor-and-timployment SOLE. Contimsing finds nended for this perpose
SHALL BE in the-initial 6) AN
AMOUNT WHICH SHALL BE INCREASED DEPENDING ON THE REQUIREMENTS:
OF THE AGENCY AND shall be provided in the 4989 annual general appropriations acts.

The amount of subsidy in appropriate cases shall be determined by the Board in accordance
with established guidelines issued by it upon the recommendation of the Council. The Fund

shall also be utilized for the operation of the Council, the training and education of Voluntary
Arbitrators, and the promotion and development of a comprehensive Voluntary Arbitration
Program.

The Ministry DOLE shall help promote and gradually develop, with the agreement of labor
organizations and employers, labor-management cooperation programs at appropriate levels
of the enterprise based on shared responsibility and mutual respect in order to ensure
industrial peace and improvement in productivity, working conditions and the quality of
working life.

In establishments where no legitimate labor organization exists, labor-management
committees may be formed voluntarily by workers and employers for the purpose of
promoting industrial peace. The Department-of-Labor—and—Employment DOLE shall
endeavor to enlighten and educate the workers and employers on their rights and
responsibilities through labor education with emphasis on the policy thrusts of this Code.


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 CLR ot
by the Commission CLR itself, or the Labor-Asbiter JUDGE OF THE CLR, or the Director
of the Bureau of Labor Relations or Med-Arbiter, or the Regional Director. Upon expiration
of the corresponding period, a certification stating why a decision or resolution has not been
rendered within the said period shall be issued forthwith by the Chairman CHAIR of the
Commission CLR, the Executive Leber Asbiter JUDGE OF THE CLR, or the Director of
the Bureau of Labor Relations or Med-Arbiter, or the Regional Director, as the case may be,

and a copy thereof served upon the parties. Despite the expiration of the applicable
mandatory period, the aforesaid officials shall, without prejudice to any liability which may
have been incurred as a consequence thereof, see to it that the case or matter shall be decided

or resolved without any further delay. (292a)

Book Six
POST-EMPLOYMENT

Title I - Termination of Employment

Art. 294, Coverage. The provisions of this Title shall apply to all establishments or undertakings,
whether for profit or not. (293)

Art. 295, Security of Tenure. The-eEmployerS shall not terminate the services of an employee,
WHETHER REGULAR OR NON-REGULAR, except for a just cause or when authorized by this
ssed from work shall be ei
without loss of seniority rights and other privileges and to his THEIR full backwages, inclusive of

Title. AneEmployeeS who is ARE unjustly di led to reinstatement

allowances, and to his THEIR other benefits or their monetary equivalent computed from the time
his THEIR compensation was withheld from kisi THEM up to the time of his THEIR actual

reinstatement. (294a)


Art. 296, Regular and Casual Employment. The provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement of the parties, an employment shall be
deemed to be regular where the employeeS has HAVE been engaged to perform activities which
are usually necessary or desirable in the usual business or trade of the employer, except where the
employment has been fixed for a specific project or undertaking the completion or termination of
which has been determined at the time of the engagement of the employeeS or where the work or

service to be performed is seasonal in nature and the employment is for the duration of the season.

‘An employment shall be deemed to be casual if

is not covered by the preceding paragraph:
Provided, That any employeeS who has HAVE rendered at least one year of service, whether such
service is continuous or broken, shall be considered @ regular employeeS with-respect-to-the

(295a)

Art. 297, Probationary Employment. Probationary employment shall not exceed six (6) months
from the date the employee started working; itt joshi

stipulating-e-tlonger period. The services of an employeeS who has HAVE been engaged on a
probationary basis may be terminated for a just cause or when he-fails THEY FAIL to qualify as

@ regular employeeS in accordance with reasonable standards made known by the employer to the
employeeS at the time of his THEIR engagement, An-eEmployeeS who is ARE allowed to work
after the probationary period shall be considered a regular employeeS. (296a)

Art, 298, Termination by Employer. As-eEmployerS may terminate an employment for any of

the following causes:

(a) Serious misconduct or willful disobedience by the employees of the lawful orders of his,
THEIR employer or representative in connection with his THEIR work;

(6) Gross and habitual neglect by the employeeS of his THEIR duties;

(©) _ Fraud or willful breach by the employeeS of the trust reposed in him THEM by the employer
or duly authorized representative;



(4) Commission of a crime or offense by the employeeS against the person of his THEIR
employer or any immediate member of his THEIR family or his THEIR duly authorized
representatives;

(e) COMMISSION OF SEXUAL VIOLENCE AND/OR OTHER SEXUALLY-RELATED
OFFENSES, REGARDLESS OF CONVICTION; AND

(Other causes analogous to the foregoing. (297a)

ART. 299, Closure of Establishment and Reduction of Personnel. Fhe-eEmployerS may also

terminate the employment of any employee due to the installation of labor-saving devices,
redundancy, retrenchment to prevent losses or the closing or cessation of operation of the
establishment or undertaking unless the closing is for the purpose of circumventing the provisions

of this Title, by serving a written notice on the workers and the Ministry-of Labor-and Employment

SOLE at least one (1) month before the intended date thereof. In case of termination due to the

installation of labor-saving devices or redundancy, the workerS affected thereby shall be entitled
to a separation pay equivalent to at least his THEIR one (1) month pay or to at least one (1) month
pay for every year of service, whichever is higher. In case of retrenchment to prevent losses and
in cases of closures or cessation of operations of establishment or undertaking not due to serious
business losses or financial reverses, the separation pay shall be equivalent to one (1) month pay
or at least one-half (1/2) month pay for every year of service, whichever is higher. A fraction of at
least six (6) months shall be considered one (1) whole year. (298a)

Art. 300, Disease as Ground for Termination. An-eEmployerS may terminate the services of an
employeeS who has-been HAVE BEEN found to be suffering from any disease and whose
continued employment is ARE prohibited by law or is ARE prejudicial to his THEIR health as
well as to the health of his THEIR co-employees: PROVIDED, THAT EMPLOYERS SHALL
PRESENT A CERTIFICATION ISSUED BY A COMPETENT PUBLIC HEALTH
AUTHORITY ATTESTING THAT THE ILLNESS OR DISEASE CANNOT BE CURED
WITHIN SIX (6) MONTHS EVEN WITH PROPER MEDICAL TREATMENT: Provided,
FURTHER, That heis THEY ARE paid separation pay equivalent to at least one (1) month salary
or to one-half (1/2) month salary for every year of service, whichever is greater, a fraction of at
least six (6) months being considered as one (1) whole year. (299a)


Art. 301. Termination by Employee.

(a) An-eEmployeeS may terminate without just cause the employee-employer relationship by
serving a written notice on the employerS at least one (1) month in advance. Fhe EmployerS
upon whom no such notice was served may hold the employeeS liable for damages.

(b) A®-eEmployeeS may put an end to the relationship without serving any notice on the

employerS for any of the following just causes:

(1) Serious insult by the employerS or his THEIR representative on the honor and person
of the employeeS;

(2) Inhuman and unbearable treatment accorded the employeeS by the employer or his
THEIR representative;

(3) Commission of a crime or offense by the employerS or his THEIR representative
against the personS of the employeeS or any of the immediate members of his THEIR
family;

(4) COMMISSION OF SEXUAL VIOLENCE AND/OR OTHER SEXUALLY-
RELATED OFFENSES, REGARDLESS OF CONVICTION; AND

(5) Other causes analogous to any of the foregoing. (300a)

Art. 302. When Employment Not Deemed Terminated. The bona fide suspension of the
operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment
by the employees of a military or civic dutyIES shall not terminate employment. In all such cases,

the employerS shall reinstate the employeeS to his THEIR former positionS without loss of
seniority rights if he-indieates-his THEY INDICATE THEIR desire to resume his THEIR work
not later than one (1) month from the resumption of operations of his THEIR employer or from

his THEIR relief from the military or civic dutyIES. (301a)

Title I - Retirement from the Service

Art. 303. Retirement. Any-eEmployeeS may be retired upon reaching the retirement age
established in the collective bargaining agreement or other applicable employment contract.


In case of retirement, the employees shall be entitled to receive such retirement benefits as he
‘THEY may have eared under existing laws and any collective bargaining agreement and other
agreements: Provided, however, That retirement benefits under any collective bargaining and other
agreements shall not be less than those provided therein.

In the absence of a retirement plan or agreement providing for retirement benefits of employees in
the establishment, a-employeeS upon reaching the age of sixty (60) years or more, but not beyond
sixty-five (65) years which is hereby declared the compulsory retirement age, who has HAVE
served at least five (5) years in the said establishment, may retire and shall be entitled to retirement
pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least
six (6) months being considered as one whole year.

Unless the parties provide for broader inclusions, the term one-half (1/2) month salary shall mean
fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not more
than five (5) days of service incentive leaves.

An-uUnderground mining employeeS upon reaching the age of fifty (50) years or more, but not
beyond sixty (60) years which is hereby declared the compulsory retirement age for underground
mine workers, who has HAVE served at least five (5) years as underground mine workerS, may
retire and shall be entitled to all the retirement benefits provided for in this Article.

Retail, service-and agricultural establishments-or-operations-employing eth 40)

Violation of this provision is hereby declared unlawful and subject to the penal provisions under
Article 288 312 of this Code.

Nothing in this Article shall deprive eny employeeS of benefits to which he THEY may be entitled

under existing laws or company policies or practices. (302a)



BOOK SEVEN
GENDER EQUALITY PROVISIONS

ART. 304. ANNUAL EVALUATION OF PAY AND BENEFITS STRUCTURE. THERE
SHALL BE AN ANNUAL ASSESSMENT OF THE COMPANY’S EXISTING PAY AND
BENEFIT STRUCTURES AND JOB CLASSIFICATIONS WITH THE GOAL OF
ELIMINATING ANY DISCREPANCIES IN SALARIES AND BENEFITS ATTRIBUTABLE
SOLELY TO GENDER BIAS OR DISCRIMINATION. TOWARDS THIS END, GENDER-
FAIR CRITERIA OR STANDARDS SHALL BE ESTABLISHED WHICH ALLOW FOR
REASONABLE DISCREPANCIES IN PAY AND BENEFITS, SUCH AS DIFFERENCE IN
POSITION OR TITLE, JOB DESCRIPTION, JOB RESPONSIBILITY, OR OTHER GENDER-
FAIR CRITERIA OR STANDARDS. THE ANNUAL ASSESSMENT SHALL BE
UNDERTAKEN IN CONSULTATION WITH THE BARGAINING REPRESENTATIVE OR,
IN THE ABSENCE OF A CERTIFIED BARGAINING REPRESENTATIVE, THEIR
DESIGNATED REPRESENTATIVE. IN PURSUIT OF THIS OBJECTIVE, THE EMPLOYER
SHALL FURNISH THE UNION OR DULY AUTHORIZED EMPLOYEE REPRESENTATIVE
ACOPY OF THE PAY AND BENEFIT STRUCTURES AND JOB CLASSIFICATIONS. (new)

ART. 305. TAX INCENTIVES OR BONUS SCHEMES. THE DOLE, IN CONSULTATION
WITH THE DEPARTMENT OF FINANCE, THE BUREAU OF INTERNAL REVENUE AND.
THE PCW, SHALL DEVELOP AND PRESCRIBE TAX INCENTIVES OR BONUS SCHEMES
FOR UNIONS AND EMPLOYERS, PROVIDED THAT AT LEAST FORTY PERCENT (40%)
OF UNION OR COMPANY OFFICERS ARE WOMEN. FOR THIS PURPOSE, UNION
OFFICERS ARE THOSE WHO ARE EITHER ELECTED OR APPOINTED, INCLUDING
SHOP STEWARDS. FOR COMPANY OFFICERS, OFFICERS ARE THOSE WHO ARE
EITHER ELECTED OR APPOINTED AND AT LEAST OCCUPYING A MANAGERIAL.
POSITION.

A SIMILAR TAX INCENTIVE OR BONUS SCHEME SHALL ALSO BE DEVELOPED AND
PRESCRIBED FOR A GENDER-FAIR COMPOSITION OF COMPANY OFFICERS AND
EMPLOYEES AND TOTAL UNION MEMBERSHIP. (new)


ART. 306. CREATION OF A GENDER FOCAL POINT COMMITTEE IN THE

WORKPLACE; DEDUCTIBILITY OF TRAINING COSTS. ALL ESTABLISHMENTS,

BOTH PUBLIC AND PRIVATE, SHALL DESIGNATE A GENDER FOCAL COMMITTEE

WITH THE FOLLOWING TASKS AND FUNCTIONS:

(1) IN CONSULTATION WITH THE PCW OR ANY PCW-CERTIFIED OR ACCREDITED
ORGANIZATIONS, REVIEW POLICIES, RULES, AND RECOMMEND REVISIONS
OF SUCH POLICIES AND RULES THAT ARE DISCRIMINATORY OR
DISPROPORTIONATELY DISADVANTAGE FEMALE WORKERS;

(2) MONITOR THE ENFORCEMENT AND IMPLEMENTATION OF GENDER-
RESPONSIVE POLICIES, RULES, AND PROGRAMS IN THE WORKPLACE;

(3) CONDUCT GENDER-RELATED SEMINARS AND TRAININGS AND OTHER
EDUCATIONAL ACTIVITIES TO FOSTER A GENDER-FRIENDLY WORKING
ENVIRONMENT; AND

(4) PERFORM SUCH OTHER FUNCTIONS THAT WOULD ENSURE THE PROMOTION
OF GENDER EQUALITY IN THE WORKPLACE.

AN ADDITIONAL DEDUCTION FROM THEIR TAXABLE INCOME CONSISTING OF THE
VALUE OF GENDER-RELATED ACTIVITY EXPENSES INCURRED SHALL BE
GRANTED TO THE ENTERPRISE ORGANIZING THE TRAINING: PROVIDED, THAT
SUCH EDUCATIONAL ACTIVITY IS DULY RECOGNIZED BY THE PHILIPPINE
COMMISSION ON WOMEN. (new)

ART. 307. GENDER SENSITIVITY ORIENTATION. ALL GOVERNMENT OFFICIALS
AND EMPLOYEES OF THE DOLE SHALL UNDERGO A GENDER SENSITIVITY
ORIENTATION ON ANTI-SEXUAL HARASSMENT, ONCE EVERY THREE (3) YEARS.
GENDER SENSITIVITY ORIENTATION CLEARANCE SHALL HENCEFORTH BE A
COMPONENT OF OFFICERS’ AND EMPLOYEES’ PERSONNEL ACTIONS, SUCH AS
HIRING, TENURE AND PROMOTION. (new)

ART. 308, GENDER EQUALITY RESEARCH, THE DOLE SHALL UNDERTAKE
GENDER RESEARCH, PARTICULARLY ON ALL FORMS OF DIRECT AND INDIRECT


DISCRIMINATION, WITH THE AIM OF FORMULATING POLICIES, RULES AND
REGULATIONS TO CURB SUCH PRACTICES IN THE WORKPLACE. (new)

ART 309. DUTIES OF EMPLOYERS. EMPLOYERS OR OTHER PERSONS OF
AUTHORITY, INFLUENCE OR MORAL ASCENDANCY IN A WORKPLACE SHALL
HAVE THE DUTY TO PREVENT, DETER, OR PUNISH THE PERFORMANCE OF ACTS OF
GENDER-BASED SEXUAL HARASSMENT IN THE WORKPLACE AS PROVIDED FOR IN
SECTION 17 OF REPUBLIC ACT NO. 11313. IN ADDITION, EMPLOYERS SHALL HAVE
THE DUTY TO PROVIDE INCENTIVES FOR EMPLOYEES FOR COMPLIANCE WITH THE
ACTS UNDER SECTION 18 OF REPUBLIC ACT NO. 11313. (new)

ART. 310. GENDER SENSITIVITY TRAINING OR ORIENTATION IN UNIONS. IT
SHALL BE THE DUTY OF UNION OFFICERS TO PREVENT, DETER, OR PUNISH THE
PERFORMANCE OF ACTS OF GENDER-BASED SEXUAL HARASSMENT AMONG ITS
OFFICERS AND MEMBERS.

TOWARDS THIS END, THE UNION OFFICERS SHALL:

(a) DISSEMINATE OR POST IN A CONSPICUOUS PLACE A COPY OF THIS BOOK OF
THE LABOR CODE TO ALL PERSONS IN THE WORKPLACE, OR UNION OFFICE,
AS THE CASE MAY BE;

(b) PROVIDE MEASURES TO PREVENT GENDER-BASED SEXUAL HARASSMENT IN
THE WORKPLACE, SUCH AS THE CONDUCT OF ANTI-SEXUAL HARASSMENT
SEMINARS;

(©) CREATE AN INDEPENDENT INTERNAL MECHANISM OR A COMMITTEE ON
DECORUM AND INVESTIGATION TO INVESTIGATE AND ADDRESS
COMPLAINTS OF GENDER-BASED SEXUAL HARASSMENT WHICH SHALL:

(1) DESIGNATE A WOMAN AS ITS HEAD AND HAVE WOMEN AS NOT LESS
THAN HALF OF ITS MEMBERS;

(2) BE COMPOSED OF MEMBERS WHO SHOULD BE IMPARTIAL AND NOT
CONNECTED OR RELATED TO THE ALLEGED PERPETRATOR;


@

(3) INVESTIGATE AND DECIDE ON THE COMPLAINTS WITHIN TEN (10) DAYS
UPON RECEIPT THEREOF;

(4) OBSERVE DUE PROCESS;

(5) PROTECT THE COMPLAINANT FROM RETALIATION; AND

(6) GUARANTEE CONFIDENTIALITY;

PROVIDE AND DISSEMINATE, IN CONSULTATION WITH ALL UNION MEMBERS

IN THE WORKPLACE, A CODE OF CONDUCT OR WORKPLACE POLICY WHICH

SHALL:

(1) EXPRESSLY REITERATE THE PROHIBITION ON GENDER-BASED SEXUAL
HARASSMENT;

(2) DESCRIBE THE PROCEDURES OF THE INTERNAL MECHANISM CREATED
UNDER THIS PROVISION; AND

(3) SET UNION PENALTIES. (new)

ART. 311, DUTIES OF UNIONS, FELLOW EMPLOYEES, AND CO-WORKERS.
UNIONS, FELLOW EMPLOYEES, AND CO-WORKERS SHALL HAVE THE DUTY TO
REFRAIN, DISCOURAGE, AND REPORT THE PERFORMANCE OF ACTS OF GENDER-
BASED SEXUAL HARASSMENT IN THE WORKPLACE AS PROVIDED FOR IN SECTION
18 OF REPUBLIC ACT NO. 11313. IN ADDITION, THEY SHALL PROVIDE EMOTIONAL
OR SOCIAL SUPPORT TO UNION OFFICERS OR MEMBERS, FELLOW EMPLOYEES,
AND CO-WORKERS OR PEERS, AS THE CASE MAY BE, WHO ARE VICTIMS OF
GENDER-BASED SEXUAL HARASSMENT. (new)

BOOK EIGHT

‘Transitory and Final Provisions

Title 1
Penal Provisions and Liabilities

Art. 312. Penalties, Except as otherwise provided in this Code, or unless the acts complained of

hinge 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
PROHIBITED, unlawful or penal in nature shall be punished with a fine of not less than One
FIFTY Thousand Pesos (P450,000.00) nor more than Fen FIVE HUNDRED Thousand Pesos
(P48500,000.00), or imprisonment of not less than three SIX (6) months nor more than three SIX

(6) years, or both such fine and imprisonment at the discretion of the court.

In addition to such penalty, any een FOREIGN NATIONAL 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 eonewsrent EXCLUSIVE AND ORIGINAL jurisdiction of the MunicipalorCity
Courts-and the Courts of First instance REGIONAL TRIAL COURT. (303a)

Art. 313. Who are liable when committed by other than natural person. If the offense is
committed 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, partnership,

m or entity, (304)

Title 1

Prescription of Offenses and Claims

Art. 314, Offenses. Offenses penalized under this Code and the rules and regulations issued
pursuant thereto shall prescribe in three43) SIX (6) years.

All unfair labor practice arising from Book V shall be filed with the appropriate agency within one
(year THREE (3) YEARS from accrual of such unfair labor practice; otherwise, they shall be
forever barred. (305a)

Art. 315. ILLEGAL DISMISSAL AND Money Claims. All CASES OF ILLEGAL
DISMISSAL AND money claims arising from employer employee relations accruing during the


effectivity of this Code shall be filed within three-3) FOUR (4) years from the time the cause of
action accrued; otherwise they shall be forever barred.

rules-at the time their causes of action aeerred—_(306a),

Art. 316, 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.

Pending the final determination of the merits of money claims filed with the appropriate entity, no

action arising from the same cause of action shall be filed with any court. This provision shall

not apply to employees compensation cases which shall be processed and determined strictly in

accordance with the pertinent provisions of this Code. (307)

Title 11

‘Transitory and Final Provisions

Art. 317. Application of Law Enacted Prior to this Code. All actions or claims accruing prior
to the effectivity of this REVISED Code shall be determined in accordance with the laws in force
at the time of their accrual. (308)

Art. 318. Abolition of the-Court-ef Industrial Relations-and-the National Labor Relations
Commission. The Gourt-of Industrial Relations-andthe EXISTING National Labor Relations


Commission IS hereby abolished. All
unexpended funds, properties, equipment and records of the Court of Industrial Relations NLRC,
and such of its personnel as may be necessary, AS DETERMINED BY THE NLRC, are hereby
transferred to the Commission CLR and to its regional branches. A#linexpended-funds, properties
. 5 . vats veci “dex President
No-2t-aretransferred to the Bureat-of Labor Relations. Personnel not absorbed by or transferred

to the Commission CLR shall enjoy benefits granted under existing laws. (3132)

Art. 319. Personnel Whose Services are Terminated. Personnel of agencies or any of their

subordinate units whose services are terminated as a result of the implementation of this Code shall

enjoy the rights and protection provided is

hundred -and thirty-five and-sueh-other UNDER pertinent laws, rules and regulations. In any case,

no lay-off shall be effected until funds to cover the gratuity and/or retirement benefits of those laid
off are duly certified as available. (315a)

Art. 320. Separability Provisions. If any provision or part of this Code, or the application thereof
to any person or circumstance, is held invalid, the remainder of this Code, or the application of

such provision or part to other persons or circumstances, shall not be affected thereby. (316)
Art. 321. Repealing Clause. All labor laws not adopted as part of this Code either directly or by
reference are hereby repealed. All provisions of existing laws, orders, decrees, rules and

regulations inconsistent herewith are likewise repealed.

Approved,