PRESIDENTIAL DECREE NO.

442,
AS AMENDED.
A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR
AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND
HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.
PRELIMINARY TITLE
Chapt! I
GENERAL PROVISIONS
ARTICLE ". Name of Decree. - This Decree shall be known as the Labor Code of the Philippines.
ARTICLE 2. Date of effectivity. This Code shall take effect six (6 !onths after its pro!"l#ation.
ARTICLE #. Declaration of basic policy. - The $tate shall afford protection to labor%pro!ote f"ll
e!plo&!ent% ens"re e'"al work opport"nities re#ardless of sex% race or creed and re#"late the relations between
workers and e!plo&ers.The $tate shall ass"re the ri#hts of workers to self-or#ani(ation% collecti)e bar#ainin#%
sec"rit& of ten"re% and *"st and h"!ane conditions of work.
ARTICLE 4. Construction in favor of labor. - +ll do"bts in the i!ple!entation and interpretation of the pro)isions of
this Code% incl"din# its i!ple!entin# r"les and re#"lations% shall be resol)ed in fa)or of labor.
ARTICLE $. Rules and regulations. - The Depart!ent of Labor and other #o)ern!ent a#encies char#ed with the
ad!inistration and enforce!ent of this Code or an& of its parts shall pro!"l#ate the necessar& i!ple!entin# r"les
and re#"lations. $"ch r"les and re#"lations shall beco!e effecti)e fifteen (,- da&s after anno"nce!ent of their
adoption in newspapers of #eneral circ"lation.
ARTICLE %. Applicability. +ll ri#hts and benefits #ranted to workers "nder this Code shall% except as !a&
otherwise be pro)ided herein% appl& alike to all workers% whether a#ric"lt"ral or non-a#ric"lt"ral. (+s a!ended b&
Presidential Decree .o. -/0-+% .o)e!ber ,% ,1/2.
Chapt! II
EMANCIPATION OF TENANTS
ARTICLE &. Transfer of lands to tenant-workers. 3ein# a )ital part of the labor force% tenant-far!ers on pri)ate
a#ric"lt"ral lands pri!aril& de)oted to rice and corn "nder a s&ste! of share crop or lease tenanc& whether classified
as landed estate or not shall be dee!ed owner of a portion constit"tin# a fa!il&-si(e far! of fi)e (- hectares% if not
irri#ated and three (4 hectares% if irri#ated.
5n all cases% the land owner !a& retain an area of not !ore than se)en (/ hectares if s"ch landowner is c"lti)atin#
s"ch area or will now c"lti)ate it.
ARTICLE '. Determination of land value. 6or the p"rpose of deter!inin# the cost of the land to be transferred to
the tenant-far!er% the )al"e of the land shall be e'"i)alent to two and one-half (7-,87 ti!es the a)era#e har)est of
three (4 nor!al crop &ears i!!ediatel& precedin# the pro!"l#ation of Presidential Decree .o. 7/ on 9ctober 7,%
,1/7.
The total cost of the land% incl"din# interest at the rate of six percent (6: per ann"!% shall be paid b& the tenant in
fifteen (,- &ears of fifteen (,- e'"al ann"al a!orti(ations.
5n case of defa"lt% the a!orti(ation d"e shall be paid b& the far!ers cooperati)e in which the defa"ltin# tenant-far!er
is a !e!ber% with the cooperati)e ha)in# a ri#ht of reco"rse a#ainst hi!.
The #o)ern!ent shall #"arantee s"ch a!orti(ations with shares of stock in #o)ern!ent-owned and #o)ern!ent-
controlled corporations.
ARTICLE "(. Conditions of ownership. .o title to the land ac'"ired b& the tenant-far!er "nder Presidential
Decree .o. 7/ shall be act"all& iss"ed to hi! "nless and "ntil he has beco!e a f"ll-fled#ed !e!ber of a d"l&
reco#ni(ed far!ers cooperati)e.
Title to the land ac'"ired p"rs"ant to Presidential Decree .o. 7/ or the Land ;efor! Pro#ra! of the <o)ern!ent
shall not be transferable except b& hereditar& s"ccession or to the <o)ern!ent in accordance with the pro)isions of
Presidential Decree .o. 7/% the Code of +#rarian ;efor!s and other existin# laws and re#"lations.
ARTICLE "". Implementing agency. The Depart!ent of +#rarian ;efor! shall pro!"l#ate the necessar& r"les
and re#"lations to i!ple!ent the pro)isions of this Chapter.
BOO) ONE
PRE*EMPLOYMENT
ARTICLE "2. tatement of ob!ectives. 5t is the polic& of the $tate=
a To pro!ote and !aintain a state of f"ll e!plo&!ent thro"#h i!pro)ed !anpower trainin#% allocation and "tili(ation>
b To protect e)er& citi(en desirin# to work locall& or o)erseas b& sec"rin# for hi! the best possible ter!s and
conditions of e!plo&!ent>
c To facilitate a free choice of a)ailable e!plo&!ent b& persons seekin# work in confor!it& with the national interest>
d To facilitate and re#"late the !o)e!ent of workers in confor!it& with the national interest>
e To re#"late the e!plo&!ent of aliens% incl"din# the establish!ent of a re#istration and8or work per!it s&ste!>
f To stren#then the network of p"blic e!plo&!ent offices and rationali(e the participation of the pri)ate sector in the
recr"it!ent and place!ent of workers% locall& and o)erseas% to ser)e national de)elop!ent ob*ecti)es>
# To ins"re caref"l selection of 6ilipino workers for o)erseas e!plo&!ent in order to protect the #ood na!e of the
Philippines abroad.
T+t, I
RECRUITMENT AND PLACEMENT OF WOR)ERS
Chapt! I
GENERAL PROVISIONS
ARTICLE "#. Definitions. (a ?orker !eans an& !e!ber of the labor force% whether e!plo&ed or "ne!plo&ed.
(b ;ecr"it!ent and place!ent refers to an& act of can)assin#% enlistin#% contractin#% transportin#% "tili(in#% hirin# or
proc"rin# workers% and incl"des referrals% contract ser)ices% pro!isin# or ad)ertisin# for e!plo&!ent% locall& or
abroad% whether for profit or not= Pro)ided% That an& person or entit& which% in an& !anner% offers or pro!ises for a
fee% e!plo&!ent to two or !ore persons shall be dee!ed en#a#ed in recr"it!ent and place!ent.
(c Pri)ate fee-char#in# e!plo&!ent a#enc& !eans an& person or entit& en#a#ed in recr"it!ent and place!ent of
workers for a fee which is char#ed% directl& or indirectl&% fro! the workers or e!plo&ers or both.
(d License !eans a doc"!ent iss"ed b& the Depart!ent of Labor a"thori(in# a person or entit& to operate a
pri)ate e!plo&!ent a#enc&.
(e Pri)ate recr"it!ent entit& !eans an& person or association en#a#ed in the recr"it!ent and place!ent of
workers% locall& or o)erseas% witho"t char#in#% directl& or indirectl&% an& fee fro! the workers or e!plo&ers.
(f +"thorit& !eans a doc"!ent iss"ed b& the Depart!ent of Labor a"thori(in# a person or association to en#a#e in
recr"it!ent and place!ent acti)ities as a pri)ate recr"it!ent entit&.
(# $ea!an !eans an& person e!plo&ed in a )essel en#a#ed in !ariti!e na)i#ation.
(h 9)erseas e!plo&!ent !eans e!plo&!ent of a worker o"tside the Philippines.
(i @!i#rant !eans an& person% worker or otherwise% who e!i#rates to a forei#n co"ntr& b& )irt"e of an i!!i#rant
)isa or resident per!it or its e'"i)alent in the co"ntr& of destination.
ARTICLE "4. "mployment promotion. The $ecretar& of Labor shall ha)e the power and a"thorit&=
(a To or#ani(e and establish new e!plo&!ent offices in addition to the existin# e!plo&!ent offices "nder the
Depart!ent of Labor as the need arises>
(b To or#ani(e and establish a nationwide *ob clearance and infor!ation s&ste! to infor! applicants re#isterin# with
a partic"lar e!plo&!ent office of *ob opport"nities in other parts of the co"ntr& as well as *ob opport"nities abroad>
(c To de)elop and or#ani(e a pro#ra! that will facilitate occ"pational% ind"strial and #eo#raphical !obilit& of labor
and pro)ide assistance in the relocation of workers fro! one area to another> and
(d To re'"ire an& person% establish!ent% or#ani(ation or instit"tion to s"b!it s"ch e!plo&!ent infor!ation as !a&
be prescribed b& the $ecretar& of Labor.
ARTICLE "$. #ureau of "mployment ervices. (a The 3"rea" of @!plo&!ent $er)ices shall be pri!aril&
responsible for de)elopin# and !onitorin# a co!prehensi)e e!plo&!ent pro#ra!. 5t shall ha)e the power and d"t&=
,. To for!"late and de)elop plans and pro#ra!s to i!ple!ent the e!plo&!ent pro!otion ob*ecti)es of this Title>
7. To establish and !aintain a re#istration and8or licensin# s&ste! to re#"late pri)ate sector participation in the
recr"it!ent and place!ent of workers% locall& and o)erseas% and to sec"re the best possible ter!s and conditions of
e!plo&!ent for 6ilipino contract workers and co!pliance therewith "nder s"ch r"les and re#"lations as !a& be
iss"ed b& the Ainister of Labor>
4. To for!"late and de)elop e!plo&!ent pro#ra!s desi#ned to benefit disad)anta#ed #ro"ps and co!!"nities>
2. To establish and !aintain a re#istration and8or work per!it s&ste! to re#"late the e!plo&!ent of aliens>
-. To de)elop a labor !arket infor!ation s&ste! in aid of proper !anpower and de)elop!ent plannin#>
6. To de)elop a responsi)e )ocational #"idance and testin# s&ste! in aid of proper h"!an reso"rces allocation> and
/. To !aintain a central re#istr& of skills% except sea!en.
(b The re#ional offices of the Ainistr& of Labor shall ha)e the ori#inal and excl"si)e *"risdiction o)er all !atters or
cases in)ol)in# e!plo&er-e!plo&ee relations incl"din# !one& clai!s% arisin# o"t of or b& )irt"e of an& law or
contracts in)ol)in# 6ilipino workers for o)erseas e!plo&!ent except sea!en= Pro)ided% That the 3"rea" of
@!plo&!ent $er)ices !a&% in the case of the .ational Capital ;e#ion% exercise s"chpower% whene)er the Ainister of
Labor dee!s it appropriate. The decisions of the re#ional offices of the 3"rea" of @!plo&!ent $er)ices% if so
a"thori(ed b& the Ainister of Labor as pro)ided in this +rticle% shall be appealable to the .ational Labor ;elations
Co!!ission "pon the sa!e #ro"nds pro)ided in +rticle 774 hereof. The decisions of the .ational Labor ;elations
Co!!ission shall be final and inappealable. ($"perseded b& @xec. 9rder /1/% Aa& ,% ,1B7.
(c The Ainister of Labor shall ha)e the power to i!pose and collect fees based on rates reco!!ended b& the
3"rea" of @!plo&!ent $er)ices. $"ch fees shall be deposited in the .ational Treas"r& as a special acco"nt of the
<eneral 6"nd% for the pro!otion of the ob*ecti)es of the 3"rea" of @!plo&!ent $er)ices% s"b*ect to the pro)isions of
$ection 20 of Presidential Decree .o. ,,//.
ARTICLE "%. $rivate recruitment. @xcept as pro)ided in Chapter 55 of this Title% no person or entit& other than the
p"blic e!plo&!ent offices% shall en#a#e in the recr"it!ent and place!ent of workers.
ARTICLE "-. %verseas "mployment Development #oard. +n 9)erseas @!plo&!ent De)elop!ent 3oard is
hereb& created to "ndertake% in cooperation with rele)ant entities and a#encies% a s&ste!atic pro#ra! for o)erseas
e!plo&!ent of 6ilipino workers in excess of do!estic needs and to protect their ri#hts to fair and e'"itable
e!plo&!ent practices. 5t shall ha)e the power and d"t&=
,. To pro!ote the o)erseas e!plo&!ent of 6ilipino workers thro"#h a co!prehensi)e !arket pro!otion and
de)elop!ent pro#ra!>
7. To sec"re the best possible ter!s and conditions of e!plo&!ent of 6ilipino contract workers on a #o)ern!ent-to-
#o)ern!ent basis and to ens"re co!pliance therewith>
4. To recr"it and place workers for o)erseas e!plo&!ent on a #o)ern!ent-to-#o)ern!ent arran#e!ent and in s"ch
other sectors as polic& !a& dictate> and
2. To act as secretariat for the 3oard of Tr"stees of the ?elfare and Trainin# 6"nd for 9)erseas ?orkers.
ARTICLE "&. #an on direct-hiring. .o e!plo&er !a& hire a 6ilipino worker for o)erseas e!plo&!ent except
thro"#h the 3oards and entities a"thori(ed b& the $ecretar& of Labor. Direct-hirin# b& !e!bers of the diplo!atic
corps% international or#ani(ations and s"ch other e!plo&ers as !a& be allowed b& the $ecretar& of Labor is
exe!pted fro! this pro)ision.
ARTICLE "'. %ffice of "migrant Affairs. (a P"rs"ant to the national polic& to !aintain close ties with 6ilipino
!i#rant co!!"nities and pro!ote their welfare as well as establish a data bank in aid of national !anpowerpolic&
for!"lation% an 9ffice of @!i#rant +ffairs is hereb& created in the Depart!ent of Labor. The 9ffice shall be a "nit at
the 9ffice of the $ecretar& and shall initiall& be !anned and operated b& s"ch personnel and thro"#h s"ch f"ndin# as
are a)ailable within the Depart!ent and its attached a#encies. Thereafter% its appropriation shall be !ade part of the
re#"lar <eneral +ppropriations Decree.
(b The office shall% a!on# others% pro!ote the well-bein# of e!i#rants and !aintain their close link to the ho!eland
b&=
, ser)in# as a liaison with !i#rant co!!"nities>
7 pro)ision of welfare and c"lt"ral ser)ices>
4 pro!ote and facilitate re-inte#ration of !i#rants into the national !ainstrea!>
2 pro!ote econo!ic> political and c"lt"ral ties with the co!!"nities> and
- #enerall& to "ndertake s"ch acti)ities as !a& be appropriate to enhance s"ch cooperati)e links.
ARTICLE 2(. National eamen #oard. (a + .ational $ea!en 3oard is hereb& created which shall de)elop and
!aintain a co!prehensi)e pro#ra! for 6ilipino sea!en e!plo&ed o)erseas. 5t shall ha)e the power and d"t&=
,. To pro)ide free place!ent ser)ices for sea!en>
7. To re#"late and s"per)ise the acti)ities of a#ents or representati)es of shippin# co!panies in the hirin# of sea!en
for o)erseas e!plo&!ent and sec"re the best possible ter!s of e!plo&!ent for contract sea!en workers and sec"re
co!pliance therewith>
4. To !aintain a co!plete re#istr& of all 6ilipino sea!en.
(b The 3oard shall ha)e ori#inal and excl"si)e *"risdiction o)er all !atters or cases incl"din# !one& clai!s%
in)ol)in# e!plo&er-e!plo&ee relations% arisin# o"t of or b& )irt"e of an& law or contracts in)ol)in# 6ilipino sea!en for
o)erseas e!plo&!ent. The decisions of the 3oard shall be appealable to the .ational Labor ;elations Co!!ission
"pon the sa!e #ro"nds pro)ided in +rticle 774 hereof. The decisions of the .ational Labor ;elations Co!!ission
shall be final and inappealable.
ARTICLE 2". &oreign service role and participation. To pro)ide a!ple protection to 6ilipino workers abroad% the
labor attaches% the labor reportin# officers d"l& desi#nated b& the $ecretar& of Labor and the Philippine diplo!atic or
cons"lar officials concerned shall% e)en witho"t prior instr"ction or ad)ice fro! the ho!e office% exercise the power
and d"t&=
(a To pro)ide all 6ilipino workers within their *"risdiction assistance on all !atters arisin# o"t of e!plo&!ent>
(b To ins"re that 6ilipino workers are not exploited or discri!inated a#ainst>
(c To )erif& and certif& as re'"isite to a"thentication that the ter!s and conditions of e!plo&!ent in contracts
in)ol)in# 6ilipino workers are in accordance with the Labor Code and r"les and re#"lations of the 9)erseas
@!plo&!ent De)elop!ent 3oard and .ational $ea!en 3oard>
(d To !ake contin"in# st"dies or researches and reco!!endations on the )ario"s aspects of the e!plo&!ent
!arket within their *"risdiction>
(e To #ather and anal&(e infor!ation on the e!plo&!ent sit"ation and its probable trends% and to !ake s"ch
infor!ation a)ailable> and
(f To perfor! s"ch other d"ties as !a& be re'"ired of the! fro! ti!e to ti!e.
ARTICLE 22. 'andatory remittance of foreign e(change earnings. 5t shall be !andator& for all 6ilipino workers
abroad to re!it a portion of their forei#n exchan#e earnin#s to their fa!ilies% dependents% and8or beneficiaries in the
co"ntr& in accordance with r"les and re#"lations prescribed b& the $ecretar& of Labor.
ARTICLE. 2#. Composition of the #oards. (a The 9@D3 shall be co!posed of the $ecretar& of Labor and
@!plo&!ent as Chair!an% the Cndersecretar& of Labor as Dice-Chair!an%and a representati)e each of the
Depart!ent of 6orei#n +ffairs% the Depart!ent of .ational Defense% the Central 3ank% the Depart!ent of @d"cation%
C"lt"re and $ports% the .ational Aanpower and Eo"th Co"ncil% the 3"rea" of @!plo&!ent $er)ices% a workers
or#ani(ation and an e!plo&ers or#ani(ation and the @xec"ti)e Director of the 9@D3 as !e!bers.
(b The .ational $ea!en 3oard shall be co!posed of the $ecretar& of Labor and @!plo&!ent as Chair!an% the
Cndersecretar& of Labor as Dice-Chair!an% the Co!!andant of the Philippine Coast <"ard% and a representati)e
each of the Depart!ent of 6orei#n +ffairs% the Depart!ent of @d"cation% C"lt"re and $ports% the Central 3ank% the
Aariti!e 5nd"str&+"thorit&% the 3"rea" of @!plo&!ent $er)ices% a national shippin# association and the @xec"ti)e
Director of the .$3 as !e!bers.
The !e!bers of the 3oards shall recei)e allowances to be deter!ined b& the 3oard which shall not be !ore than
P7%000.00 per !onth.
(c The 3oards shall be attached to the Depart!ent of Labor for polic& and pro#ra! coordination. The& shall each be
assisted b& a $ecretariat headed b& an @xec"ti)e Director who shall be a 6ilipino citi(en with s"fficient experience in
!anpower ad!inistration% incl"din# o)erseas e!plo&!ent acti)ities. The @xec"ti)e Director shall be appointed b& the
President of the Philippines "pon the reco!!endation of the $ecretar& of Labor and shall recei)e an ann"al salar&
as fixed b& law. The $ecretar& of Labor shall appoint the other !e!bers of the $ecretariat.
(d The +"ditor <eneral shall appoint his representati)e to the 3oards to a"dit their respecti)e acco"nts in
accordance with a"ditin# laws and pertinent r"les and re#"lations.
ARTICLE 24. #oards to issue rules and collect fees. - The 3oards shall iss"e appropriate r"les and re#"lations to
carr& o"t their f"nctions. The& shall ha)e the power to i!pose and collect fees fro! e!plo&ers concerned% which
shall be deposited in the respecti)e acco"nts of said 3oards and be "sed b& the! excl"si)el& to pro!ote their
ob*ecti)es.
Chapt! II
REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
ARTICLE 2$. $rivate sector participation in the recruitment and placement of workers. - P"rs"ant to national
de)elop!ent ob*ecti)es and in order to harness and !axi!i(e the "se of pri)ate sector reso"rces and initiati)e in the
de)elop!ent and i!ple!entation of a co!prehensi)e e!plo&!ent pro#ra!% the pri)ate e!plo&!ent sector shall
participate in the recr"it!ent and place!ent of workers% locall& and o)erseas% "nder s"ch #"idelines% r"les and
re#"lations as !a& be iss"ed b& the $ecretar& of Labor.
ARTICLE 2%. Travel agencies prohibited to recruit. Tra)el a#encies and sales a#encies of airline co!panies are
prohibited fro! en#a#in# in the b"siness of recr"it!ent and place!ent of workers for o)erseas e!plo&!ent whether
for profit or not.
ARTICLE 2-. Citi)enship re*uirement. 9nl& 6ilipino citi(ens or corporations% partnerships or entities at least
se)ent&-fi)e percent (/-: of the a"thori(ed and )otin# capital stock of which is owned and controlled b& 6ilipino
citi(ens shall be per!itted to participate in the recr"it!ent and place!ent of workers% locall& or o)erseas.
ARTICLE 2&. Capitali)ation. +ll applicants for a"thorit& to hire or renewal of license to recr"it are re'"ired to ha)e
s"ch s"bstantial capitali(ation as deter!ined b& the $ecretar& of Labor.
ARTICLE 2'. Non-transferability of license or authority. .o license or a"thorit& shall be "sed directl& or
indirectl& b& an& person other than the one in whose fa)or it was iss"ed or at an& place other than that stated in the
license or a"thorit& be transferred% con)e&ed or assi#ned to an& other person or entit&. +n& transfer of b"siness
address% appoint!ent or desi#nation of an& a#ent or representati)e incl"din# the establish!ent of additional offices
an&where shall be s"b*ect to the prior appro)al of the Depart!ent of Labor.
ARTICLE #(. Registration fees. The $ecretar& of Labor shall pro!"l#ate a sched"le of fees for the re#istration of
all applicants for license or a"thorit&.
ARTICLE #". #onds. +ll applicants for license or a"thorit& shall post s"ch cash and s"ret& bonds as deter!ined b&
the $ecretar& of Labor to #"arantee co!pliance with prescribed recr"it!ent proced"res% r"les and re#"lations% and
ter!s and conditions of e!plo&!ent as !a& be appropriate.
ARTICLE #2. &ees to be paid by workers. +n& person appl&in# with a pri)ate fee-char#in# e!plo&!ent a#enc&
for e!plo&!ent assistance shall not be char#ed an& fee "ntil he has obtained e!plo&!ent thro"#h its efforts or has
act"all& co!!enced e!plo&!ent. $"ch fee shall be alwa&s co)ered with the appropriate receipt clearl& showin# the
a!o"nt paid. The $ecretar& of Labor shall pro!"l#ate a sched"le of allowable fees.
ARTICLE ##. Reports on employment status. ?hene)er the p"blic interest re'"ires% the $ecretar& of Labor !a&
direct all persons or entities within the co)era#e of this Title to s"b!it a report on the stat"s of e!plo&!ent% incl"din#
*ob )acancies% details of *ob re'"isitions% separation fro! *obs% wa#es% other ter!s and conditions and other
e!plo&!ent data.
ARTICLE #4. $rohibited practices. 5t shall be "nlawf"l for an& indi)id"al% entit&% licensee% or holder of a"thorit&=
(a To char#e or accept% directl& or indirectl&% an& a!o"nt #reater than that specified in the sched"le of allowable fees
prescribed b& the $ecretar& of Labor% or to !ake a worker pa& an& a!o"nt #reater than that act"all& recei)ed b& hi!
as a loan or ad)ance>
(b To f"rnish or p"blish an& false notice or infor!ation or doc"!ent in relation to recr"it!ent or e!plo&!ent>
(c To #i)e an& false notice% testi!on&% infor!ation or doc"!ent or co!!it an& act of !isrepresentation for the
p"rpose of sec"rin# a license or a"thorit& "nder this Code.
(d To ind"ce or atte!pt to ind"ce a worker alread& e!plo&ed to '"it his e!plo&!ent in order to offer hi! to another
"nless the transfer is desi#ned to liberate the worker fro! oppressi)e ter!s and conditions of e!plo&!ent>
(e To infl"ence or to atte!pt to infl"ence an& person or entit& not to e!plo& an& worker who has not applied for
e!plo&!ent thro"#h his a#enc&>
(f To en#a#e in the recr"it!ent or place!ent of workers in *obs har!f"l to p"blic health or !oralit& or to the di#nit& of
the ;ep"blic of the Philippines>
(# To obstr"ct or atte!pt to obstr"ct inspection b& the $ecretar& of Labor or b& his d"l& a"thori(ed representati)es>
(h To fail to file reports on the stat"s of e!plo&!ent% place!ent )acancies% re!ittance of forei#n exchan#e earnin#s%
separation fro! *obs% depart"res and s"ch other !atters or infor!ation as !a& be re'"ired b& the $ecretar& of Labor.
(i To s"bstit"te or alter e!plo&!ent contracts appro)ed and )erified b& the Depart!ent of Labor fro! the ti!e of
act"al si#nin# thereof b& the parties "p to and incl"din# the periods of expiration of the sa!e witho"t the appro)al of
the $ecretar& of Labor>
(* To beco!e an officer or !e!ber of the 3oard of an& corporation en#a#ed in tra)el a#enc& or to be en#a#ed
directl& or indirectl& in the !ana#e!ent of a tra)el a#enc&> and
(k To withhold or den& tra)el doc"!ents fro! applicant workers before depart"re for !onetar& or financial
considerations other than those a"thori(ed "nder this Code and its i!ple!entin# r"les and re#"lations.
ARTICLE #$. uspension and+or cancellation of license or authority. - The Ainister of Labor shall ha)e the
power to s"spend or cancel an& license or a"thorit& to recr"it e!plo&ees for o)erseas e!plo&!ent for )iolation of
r"les and re#"lations iss"ed b& the Ainistr& of Labor% the 9)erseas @!plo&!ent De)elop!ent 3oard% or for )iolation
of the pro)isions of this and other applicable laws% <eneral 9rders and Letters of 5nstr"ctions.
Chapt! III
MISCELLANEOUS PROVISIONS
ARTICLE #%. Regulatory power. - The $ecretar& of Labor shall ha)e the power to restrict and re#"late the
recr"it!ent and place!ent acti)ities of all a#encies within the co)era#e of this Title and is hereb& a"thori(ed to iss"e
orders and pro!"l#ate r"les and re#"lations to carr& o"t the ob*ecti)es and i!ple!ent the pro)isions of this Title.
ARTICLE #-. ,isitorial $ower. - The $ecretar& of Labor or his d"l& a"thori(ed representati)es !a&% at an& ti!e%
inspect the pre!ises% books of acco"nts and records of an& person or entit& co)ered b& this Title% re'"ire it to s"b!it
reportsre#"larl& on prescribed for!s% and act on )iolation of an& pro)isions of this Title.
ARTICLE #&. Illegal recruitment. (a +n& recr"it!ent acti)ities% incl"din# the prohibited practices en"!erated
"nder +rticle 42 of this Code% to be "ndertaken b& non-licensees or non-holders of a"thorit&% shall be dee!ed ille#al
and p"nishable "nder +rticle 41 of this Code. The Depart!ent of Labor and @!plo&!ent or an& law enforce!ent
officer !a& initiate co!plaints "nder this +rticle.
(b 5lle#al recr"it!ent when co!!itted b& a s&ndicate or in lar#e scale shall be considered an offense in)ol)in#
econo!ic sabota#e and shall be penali(ed in accordance with +rticle 41 hereof.
5lle#al recr"it!ent is dee!ed co!!itted b& a s&ndicate if carried o"t b& a #ro"p of three (4 or !ore persons
conspirin# and8or confederatin# with one another in carr&in# o"t an& "nlawf"l or ille#al transaction% enterprise or
sche!e defined "nder the first para#raph hereof.5lle#al recr"it!ent is dee!ed co!!itted in lar#e scale if co!!itted
a#ainst three (4 or !ore persons indi)id"all& or as a #ro"p.
(c The $ecretar& of Labor and @!plo&!ent or his d"l& a"thori(ed representati)es shall ha)e the power to ca"se the
arrest and detention of s"ch non-licensee or non-holder of a"thorit& if after in)esti#ation it is deter!ined that his
acti)ities constit"te a dan#er to national sec"rit& and p"blic order or will lead to f"rther exploitation of *ob-seekers.
The $ecretar& shall order the search of the office or pre!ises and sei("re of doc"!ents% paraphernalia% properties
and other i!ple!ents
"sed in ille#al recr"it!ent acti)ities and the clos"re of co!panies% establish!ents and entities fo"nd to be en#a#ed in
the recr"it!ent of workers for o)erseas e!plo&!ent% witho"t ha)in# been licensed or a"thori(ed to do so.
ARTICLE #'. $enalties. (a The penalt& of life i!prison!ent and a fine of 9ne F"ndred Tho"sand Pesos
(P,00%000.00 shall be i!posed if ille#al recr"it!ent constit"tes econo!ic sabota#e as defined herein>
(b +n& licensee or holder of a"thorit& fo"nd )iolatin# or ca"sin# another to )iolate an& pro)ision of this Title or its
i!ple!entin# r"les and re#"lations shall% "pon con)iction thereof% s"ffer the penalt& of i!prison!ent of not less than
two &ears nor !ore than fi)e &ears or a fine of not less than P,0%000 nor !ore than P-0%000% or both s"ch
i!prison!ent and fine% at the discretion of the co"rt>
(c +n& person who is neither a licensee nor a holder of a"thorit& "nder this Title fo"nd )iolatin# an& pro)ision thereof
or its i!ple!entin# r"les and re#"lations shall% "pon con)iction thereof% s"ffer the penalt& of i!prison!ent of not less
than fo"r &ears nor !ore than ei#ht &ears or a fine of not less than P70%000 nor !ore than P,00%000 or both s"ch
i!prison!ent and fine% at the discretion of the co"rt>
(d 5f the offender is a corporation% partnership% association or entit&% the penalt& shall be i!posed "pon the officer or
officers of the corporation% partnership% association or entit& responsible for )iolation> and if s"ch officer is an alien% he
shall% in addition to the penalties herein prescribed% be deported witho"t f"rther proceedin#s>
(e 5n e)er& case% con)iction shall ca"se and carr& the a"to!atic re)ocation of the license or a"thorit& and all the
per!its and pri)ile#es #ranted to s"ch person or entit& "nder this Title% and the forfeit"re of the cash and s"ret&
bonds in fa)or of the 9)erseas @!plo&!ent De)elop!ent 3oard or the .ational $ea!en 3oard% as the case !a& be%
both of which are a"thori(ed to "se the sa!e excl"si)el& to pro!ote their ob*ecti)es.
T+t, II
EMPLOYMENT OF NON*RESIDENT ALIENS
ARTICLE 4(. "mployment permit of non-resident aliens. +n& alien seekin# ad!ission to the Philippines for
e!plo&!ent p"rposes and an& do!estic or forei#n e!plo&er who desires to en#a#e an alien for e!plo&!ent in the
Philippines shall obtain an e!plo&!ent per!it fro! the Depart!ent of Labor.
The e!plo&!ent per!it !a& be iss"ed to a non-resident alien or to the applicant e!plo&er after a deter!ination of
the non-a)ailabilit& of a person in the Philippines who is co!petent% able and willin# at the ti!e of application to
perfor! the ser)ices for which the alien is desired.
6or an enterprise re#istered in preferred areas of in)est!ents% said e!plo&!ent per!it !a& be iss"ed "pon
reco!!endation of the #o)ern!ent a#enc& char#ed with the s"per)ision of said re#istered enterprise.
ARTICLE 4". $rohibition against transfer of employment. (a +fter the iss"ance of an e!plo&!ent per!it% the
alien shall not transfer toanother *ob or chan#e his e!plo&er witho"t prior appro)al of the $ecretar& of Labor.
(b +n non-resident alien who shall take "p e!plo&!ent in )iolation of the pro)ision of this Title and its i!ple!entin#
r"les and re#"lations shall be p"nished in accordance with the pro)isions of +rticles 7B1 and 710 of the Labor Code.
5n addition% the alien worker shall be s"b*ect to deportation after ser)ice of his sentence.
ARTICLE 42. ubmission of list. - +n& e!plo&er e!plo&in# non-resident forei#n nationals on the effecti)e date of
this Code shall s"b!it a list of s"ch nationals to the $ecretar& of Labor within thirt& (40 da&s after s"ch date
indicatin# their na!es% citi(enship% forei#n and local addresses% nat"re of e!plo&!ent and stat"s of sta& in the
co"ntr&. The $ecretar& of Labor shall then deter!ine if the& are entitled to an e!plo&!ent per!it.
BOO) TWO
HUMAN RESOURCES DEVELOPMENT PROGRAM
T+t, I
NATIONAL MANPOWER DEVELOPMENT PROGRAM
Chapt! I
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY
FOR THEIR IMPLEMENTATION
ARTICLE 4#. tatement of ob!ective. 5t is the ob*ecti)e of this Title to de)elop h"!an reso"rces% establish trainin#
instit"tions% and for!"late s"ch plans and pro#ra!s as will ens"re efficient allocation% de)elop!ent and "tili(ation of
the nations !anpower and thereb& pro!ote e!plo&!ent and accelerate econo!ic and social #rowth.
ARTICLE 44. Definitions. +s "sed in this Title=
(a Aanpower shall !ean that portion of the nations pop"lation which has act"al or potential capabilit& to contrib"te
directl& to the prod"ction of #oods and ser)ices.
(b @ntreprene"rship shall !ean trainin# for self-e!plo&!ent or assistin# indi)id"al or s!all ind"stries within the
p"r)iew of this Title.
ARTICLE 4$. National 'anpower and -outh Council. Composition. To carr& o"t the ob*ecti)es of this Title% the
.ational Aanpower and Eo"th Co"ncil% which is attached to the Depart!ent of Labor for polic& and pro#ra!
coordination and hereinafter referred to as the Co"ncil% shall be co!posed of the $ecretar& of Labor as ex-officio
chair!an% the $ecretar& of @d"cation and C"lt"re as ex-officio )ice-chair!an% and as ex-officio !e!bers% the
$ecretar& of @cono!ic Plannin#% the $ecretar& of .at"ral ;eso"rces% the Chair!an of the Ci)il $er)ice Co!!ission%
the $ecretar& of $ocial ?elfare% the $ecretar& of Local <o)ern!ent% the $ecretar& of $cience and Technolo#&% the
$ecretar& of Trade and 5nd"str& and the Director-<eneral of the Co"ncil. The Director <eneral shall ha)e no )ote.
5n addition% the President shall appoint the followin# !e!bers fro! the pri)ate sector= two (7 representati)es of
national or#ani(ations of e!plo&ers> two (7 representati)es of national workers or#ani(ations> and one
representati)e of national fa!il& and &o"th or#ani(ations% each for a ter! of three (4 &ears.
ARTICLE 4%. National 'anpower $lan. The Co"ncil shall for!"late a lon#-ter! national !anpower plan for the
opti!"! allocation% de)elop!ent and "tili(ation of !anpower for e!plo&!ent% entreprene"rship and econo!ic and
social #rowth. This !anpower plan shall% after adoption b& the Co"ncil% be "pdated ann"all& and s"b!itted to the
President for his appro)al. Thereafter% it shall be the controllin# plan for the de)elop!ent of !anpower reso"rces for
the entire co"ntr& in accordance with the national de)elop!ent plan. The Co"ncil shall call "pon an& a#enc& of the
<o)ern!ent or the pri)ate sector to assist in this effort.
ARTICLE 4-. National 'anpower kills Center. The Co"ncil shall establish a .ational Aanpower $kills Center
and re#ional and local trainin# centers for the p"rpose of pro!otin# the de)elop!ent of skills. The centers shall be
ad!inistered and operated "nder s"ch r"les and re#"lations as !a& be established b& the Co"ncil.
ARTICLE 4&. "stablishment and formulation of skills standards. There shall be national skills standards for
ind"str& trades to be established b& the Co"ncil in cons"ltation with e!plo&ers and workers or#ani(ations and
appropriate #o)ern!ent a"thorities. The Co"ncil shall thereafter ad!inister the national skills standards.
ARTICLE 4'. Administration of training programs. The Co"ncil shall pro)ide% thro"#h the $ecretariat% instr"ctor
trainin#% entreprene"rship de)elop!ent% trainin# in )ocations% trades and other fields of e!plo&!ent% and assist an&
e!plo&er or or#ani(ation in trainin# sche!es desi#ned to attain its ob*ecti)es "nder r"les and re#"lations which the
Co"ncil shall establish for this p"rpose.
The Co"ncil shall exercise% thro"#h the $ecretariat% a"thorit& and *"risdiction o)er% and ad!inister% on-#oin# technical
assistance pro#ra!s and8or #rants-in-aid for !anpower and &o"th de)elop!ent incl"din# those which !a& be
entered into between the <o)ern!ent of the Philippines and international and forei#n or#ani(ations and nations% as
well as persons and or#ani(ations in the Philippines.
5n order to inte#rate the national !anpower de)elop!ent efforts% all !anpower trainin# sche!es as pro)ided for in
this Code shall be coordinated with the Co"ncil% partic"larl& those ha)in# to do with the settin# of skills standards. 6or
this p"rpose% existin# !anpower trainin# pro#ra!s in the #o)ern!ent and in the pri)ate sector shall be reported to
the Co"ncil which !a& re#"late s"ch pro#ra!s to !ake the! confor! with national de)elop!ent pro#ra!s.
This +rticle shall not incl"de apprentices% learners and handicapped workers as #o)erned b& appropriate pro)isions
of this Code.
ARTICLE $(. Industry boards. The Co"ncil shall establish ind"str& boards to assist in the establish!ent of
!anpower de)elop!ent sche!es% trades and skills standards and s"ch other f"nctions as will pro)ide direct
participation of e!plo&ers and workers in the f"lfill!ent of the Co"ncils ob*ecti)es% in accordance with #"idelines to
be established b& the Co"ncil and in cons"ltation with the .ational @cono!ic and De)elop!ent +"thorit&.
The !aintenance and operations of the ind"str& boards shall be financed thro"#h a f"ndin# sche!e "nder s"ch rates
of fees and !anners of collection and disb"rse!ents as !a& be deter!ined b& the Co"ncil.
ARTICLE $". "mployment service training functions. The Co"ncil shall "tili(e the e!plo&!ent ser)ice of the
Depart!ent of Labor for the place!ent of its #rad"ates. The 3"rea" of @!plo&!ent $er)ices shall render assistance
to the Co"ncil in the !eas"re!ent of "ne!plo&!ent and "ndere!plo&!ent% cond"ct of local !anpower reso"rce
s"r)e&s and occ"pational st"dies incl"din# an in)entor& of the labor force% establish!ent and !aintenance witho"t
char#e of a national re#ister of technicians who ha)e s"ccessf"ll& co!pleted a trainin# pro#ra! "nder this +ct% and
skilled !anpower incl"din# its p"blication% !aintenance of an ade'"ate and "p-to-date s&ste! of e!plo&!ent
infor!ation.
ARTICLE $2. Incentive cheme. +n additional ded"ction fro! taxable inco!e of one-half (,87 of the )al"e of
labor trainin# expenses inc"rred for de)elop!ent pro#ra!s shall be #ranted to the person or enterprise concerned
pro)ided that s"ch de)elop!ent pro#ra!s% other than apprenticeship% are appro)ed b& the Co"ncil and the ded"ction
does not exceed ten percent (,0: of the direct labor wa#e.
There shall be a re)iew of the said sche!e two &ears after its i!ple!entation.
ARTICLE. $#. Council ecretariat. The Co"ncil shall ha)e a $ecretariat headed b& a Director-<eneral who shall
be assisted b& a Dep"t& Director-<eneral% both of who! shall be career ad!inistrators appointed b& the President of
the Philippines on reco!!endation of the $ecretar& of Labor. The $ecretariat shall be "nder the ad!inistrati)e
s"per)ision of the $ecretar& of Labor and shall ha)e an 9ffice of Aanpower Plannin# and De)elop!ent% an 9ffice of
Docational Preparation% a .ational Aanpower $kills Center% re#ional !anpower de)elop!ent offices and s"ch other
offices as !a& be necessar&.
The Director-<eneral shall ha)e the rank and e!ol"!ents of an "ndersecretar& and shall ser)e for a ter! of ten (,0
&ears. The @xec"ti)e-Directors of the 9ffice of Aanpower Plannin# and De)elop!ent% the 9ffice of Docational
Preparation and the .ational Aanpower $kills Center shall ha)e the rank and e!ol"!ents of a b"rea" director and
shall be s"b*ect to Ci)il $er)ice Law% r"les and re#"lations. The Director-<eneral% Dep"t& Director-<eneral and
@xec"ti)e Directors shall be nat"ral-born citi(ens% between thirt& and fift& &ears of a#e at the ti!e of appoint!ent%
with a !asters de#ree or its
e'"i)alent% and experience in national plannin# and de)elop!ent of h"!an reso"rces. The @xec"ti)e Director of the
.ational Aanpower $kills Center shall% in addition to the fore#oin# '"alifications% ha)e "nder#one trainin# in center
!ana#e!ent. @xec"ti)e Directors shall be appointed b& the President on the reco!!endations of the $ecretar& of
Labor and @!plo&!ent.
The Director-<eneral shall appoint s"ch personnel necessar& to carr& o"t the ob*ecti)es% policies and f"nctions of the
Co"ncil s"b*ect to Ci)il $er)ice r"les. The re#"lar professional and technical personnel shall be exe!pt fro! ?+PC9
r"les and re#"lations.
The $ecretariat shall ha)e the followin# f"nctions and responsibilities=
(a To prepare and reco!!end the !anpower plan for appro)al b& the Co"ncil>
(b To reco!!end allocation of reso"rces for the i!ple!entation of the !anpower plan as appro)ed b& the Co"ncil>
(c To carr& o"t the !anpower plan as the i!ple!entin# ar! of the Co"ncil>
(d To effect the efficient perfor!ance of the f"nctions of the Co"ncil and the achie)e!ent of the ob*ecti)es of this
Title>
(e To deter!ine specific allocation of reso"rces for the pro*ects to be "ndertaken p"rs"ant to appro)ed !anpower
plans>
(f To s"b!it to the Co"ncil periodic reports on pro#ress and acco!plish!ent of work pro#ra!s>
(# To prepare for appro)al b& the Co"ncil an ann"al report to the President on plans% pro#ra!s and pro*ects on
!anpower and o"t-of-school &o"th de)elop!ent>
(h To enter into a#ree!ents to i!ple!ent appro)ed plans and pro#ra!s and perfor! an& and all s"ch acts as will
f"lfill the ob*ecti)es of this Code as well as ens"re the efficient perfor!ance of the f"nctions of the Co"ncil> and
(i To perfor! s"ch other f"nctions as !a& be a"thori(ed b& the Co"ncil.
ARTICLE $4. Regional manpower development offices. - The Co"ncil shall create re#ional !anpower
de)elop!ent offices which shall deter!ine the !anpower needs of the ind"str&% a#ric"lt"re and other sectors of the
econo!& within their respecti)e *"risdictions> pro)ide the Co"ncils central planners with the data for "pdatin# the
national !anpower plan> reco!!end pro#ra!s for the re#ional le)el a#encies en#a#ed in !anpower and &o"th
de)elop!ent within the policies for!"lated b& the Co"ncil>
and ad!inister and s"per)ise $ecretariat trainin# pro#ra!s within the re#ion and perfor! s"ch other f"nctions as
!a& be a"thori(ed b& the Co"ncil.
ARTICLE $$. Consultants and technical assistance/ publication and research. 5n p"rs"in# its ob*ecti)es% the
Co"ncil is a"thori(ed to set aside a portion of its appropriation for the hirin# of the ser)ices of '"alified cons"ltants%
and8or pri)ate or#ani(ations for research work and p"blication. 5t shall a)ail itself of the ser)ices of the <o)ern!ent
as !a& be re'"ired.
ARTICLE $%. Rules and regulations. The Co"ncil shall define its broad f"nctions and iss"e appropriate r"les and
re#"lations necessar& to i!ple!ent the pro)ision of this Code.
T+t, II
TRAINING AND EMPLOYMENT OF SPECIAL WOR)ERS
Chapt! I
APPRENTICES
ARTICLE $-. tatement of ob!ectives. - This Title ai!s=
(, To help !eet the de!and of the econo!& for trained !anpower>
(7 To establish a national apprenticeship pro#ra! thro"#h the participation of e!plo&ers% workers and #o)ern!ent
and non-#o)ern!ent a#encies> and
(4 To establish apprenticeship standards for the protection of apprentices.
ARTICLE $&. Definition of Terms. +s "sed in this Title=
(a +pprenticeship !eans practical trainin# on the *ob s"pple!ented b& related theoretical instr"ction.
(b +n apprentice is a worker who is co)ered b& a written apprenticeship a#ree!ent with an indi)id"al e!plo&er or
an& of the entities reco#ni(ed "nder this Chapter.
(c +n apprenticeable occ"pation !eans an& trade% for! of e!plo&!ent or occ"pation which re'"ires !ore than
three (4 !onths of practical trainin# on the *ob s"pple!ented b& related theoretical instr"ction.
(d +pprenticeship a#ree!ent is an e!plo&!ent contract wherein the e!plo&er binds hi!self to train the apprentice
and the apprentice in t"rn accepts the ter!s of trainin#.
ARTICLE $'. 0ualifications of apprentice. To '"alif& as an apprentice% a person shall=
(a 3e at least fo"rteen (,2 &ears of a#e>
(b Possess )ocational aptit"de and capacit& for appropriate tests> and
(c Possess the abilit& to co!prehend and follow oral and written instr"ctions.
Trade and ind"str& associations !a& reco!!end to the $ecretar& of Labor appropriate ed"cational re'"ire!ents for
different occ"pations.
ARTICLE %(. "mployment of apprentices. - 9nl& e!plo&ers in the hi#hl& technical ind"stries !a& e!plo&
apprentices and onl& in apprenticeable occ"pations appro)ed b& the $ecretar& of Labor and @!plo&!ent. (+s
a!ended b& $ection ,% @xec"ti)e 9rder .o. ,,,% Dece!ber 72% ,1B6.
ARTICLE %". Contents of apprenticeship agreements. +pprenticeship a#ree!ents% incl"din# the wa#e rates of
apprentices% shall confor! to the r"les iss"ed b& the $ecretar& of Labor and @!plo&!ent. The period of
apprenticeship shall not exceed six !onths. +pprenticeship a#ree!ents pro)idin# for wa#e rates below the
le#al !ini!"! wa#e% which in no case shall start below /- percent of the applicable !ini!"! wa#e% !a& be entered
into onl& in accordance with apprenticeship pro#ra!s d"l&
appro)ed b& the $ecretar& of Labor and @!plo&!ent. The Depart!ent shall de)elop standard !odel pro#ra!s of
apprenticeship. (+s a!ended b& $ection ,% @xec"ti)e 9rder .o. ,,,% Dece!ber 72% ,1B6.
ARTICLE %2. igning of apprenticeship agreement. -@)er& apprenticeship a#ree!ent shall be si#ned b& the
e!plo&er or his a#ent% or b& an a"thori(ed representati)e of an& of the reco#ni(ed or#ani(ations% associations or
#ro"ps and b& the apprentice.
+n apprenticeship a#ree!ent with a !inor shall be si#ned in his behalf b& his parent or #"ardian% if the latter is not
a)ailable% b& an a"thori(ed representati)e of the Depart!ent of Labor% and the sa!e shall be bindin# d"rin# its
lifeti!e.
@)er& apprenticeship a#ree!ent entered into "nder this Title shall be ratified b& the appropriate apprenticeship
co!!ittees% if an&% and a cop& thereof shall be f"rnished both the e!plo&er and the apprentice.
ARTICLE %#. ,enue of apprenticeship programs. +n& fir!% e!plo&er% #ro"p or association% ind"str& or#ani(ation
or ci)ic #ro"p wishin# to or#ani(e an apprenticeship pro#ra! !a& choose fro! an& of the followin# apprenticeship
sche!es as the trainin# )en"e for apprentice=
(a +pprenticeship cond"cted entirel& b& and within the sponsorin# fir!% establish!ent or entit&>
(b +pprenticeship entirel& within a Depart!ent of Labor and @!plo&!ent trainin# center or other p"blic trainin#
instit"tion> or
(c 5nitial trainin# in trade f"nda!entals in a trainin# center or other instit"tion with s"bse'"ent act"al
work participation within the sponsorin# fir! or entit& d"rin# the final sta#e of trainin#.
ARTICLE %4. ponsoring of apprenticeship program. +n& of the apprenticeship sche!es reco#ni(ed herein
!a& be "ndertaken or sponsored b& a sin#le e!plo&er or fir! or b& a #ro"p or association thereof or b& a ci)ic
or#ani(ation. +ct"al trainin# of apprentices !a& be "ndertaken=
(a 5n the pre!ises of the sponsorin# e!plo&er in the case of indi)id"al apprenticeship pro#ra!s>
(b 5n the pre!ises of one or se)eral desi#nated fir!s in the case of pro#ra!s sponsored b& a #ro"p or association of
e!plo&ers or b& a ci)ic or#ani(ation> or
(c 5n a Depart!ent of Labor and @!plo&!ent trainin# center or other p"blic trainin# instit"tion.
ARTICLE %$. Investigation of violation of apprenticeship agreement. Cpon co!plaint of an& interested person
or "pon its own initiati)e% the appropriate a#enc& of the Depart!ent of Labor and @!plo&!ent or its a"thori(ed
representati)e shall in)esti#ate an& )iolation of an apprenticeship a#ree!ent p"rs"ant to s"ch r"les and re#"lations
as !a& be prescribed b& the $ecretar& of Labor and @!plo&!ent.
ARTICLE %%. Appeal to the ecretary of 1abor and "mployment. - The decision of the a"thori(ed a#enc& of the
Depart!ent of Labor and @!plo&!ent !a& be appealed b& an& a##rie)ed person to the $ecretar& of Labor and
@!plo&!ent within fi)e (- da&s fro! receipt of the decision. The decision of the $ecretar& of Labor and @!plo&!ent
shall be final and exec"tor&.
ARTICLE %-. "(haustion of administrative remedies. .o person shall instit"te an& action for the enforce!entof
an& apprenticeship a#ree!ent or da!a#es for breach of an& s"ch a#ree!ent% "nless he has exha"sted all a)ailable
ad!inistrati)e re!edies.
ARTICLE %&. Aptitude testing of applicants. Consonant with the !ini!"! '"alifications of apprentice-applicants
re'"ired "nder this Chapter% e!plo&ers or entities with d"l& reco#ni(ed apprenticeship pro#ra!s shall ha)e pri!ar&
responsibilit& for pro)idin# appropriate aptit"de tests in the selection of apprentices. 5f the& do not ha)e ade'"ate
facilities for the p"rpose% the Depart!ent of Labor and @!plo&!ent shall perfor! the ser)ice free of char#e.
+;T5CL@ 61. ;esponsibilit& for theoretical instr"ction. $"pple!entar& theoretical instr"ction to apprentices in cases
where the pro#ra! is "ndertaken in the plant !a& be done b& the e!plo&er. 5f the latter is not prepared to ass"!e
the responsibilit&% the sa!e !a& be dele#ated to an appropriate #o)ern!ent a#enc&.
ARTICLE -(. ,oluntary organi)ation of apprenticeship programs. e(emptions. (a The or#ani(ation of
apprenticeship pro#ra! shall be pri!aril& a )ol"ntar& "ndertakin# b& e!plo&ers>
(b ?hen national sec"rit& or partic"lar re'"ire!ents of econo!ic de)elop!ent so de!and% the President of the
Philippines !a& re'"ire co!p"lsor& trainin# of apprentices in certain trades% occ"pations% *obs or e!plo&!ent le)els
where shorta#e of trained !anpower is dee!ed critical as deter!ined b& the $ecretar& of Labor and @!plo&!ent.
+ppropriate r"les in this connection shall
be pro!"l#ated b& the $ecretar& of Labor and @!plo&!ent as the need arises> and
(c ?here ser)ices of forei#n technicians are "tili(ed b& pri)ate co!panies in apprenticeable trades% said co!panies
are re'"ired to set "p appropriate apprenticeship pro#ra!s.
ARTICLE -". Deductibility of training costs. +n additional ded"ction fro! taxable inco!e of one-half (,87 of the
)al"e of labor trainin# expenses inc"rred for de)elopin# the prod"cti)it& and efficienc& of apprentices shall be #ranted
to the person or enterprise or#ani(in# an apprenticeship pro#ra!= Pro)ided% That s"ch pro#ra! is d"l& reco#ni(ed b&
the Depart!ent of Labor and @!plo&!ent= Pro)ided% f"rther% That s"ch ded"ction shall not exceed ten (,0: percent
of direct labor wa#e= and Pro)ided% finall&% That the person or enterprise who wishes to a)ail hi!self or itself of this
incenti)e sho"ld pa& his apprentices the !ini!"! wa#e.
ARTICLE -2. Apprentices without compensation. The $ecretar& of Labor and @!plo&!ent !a& a"thori(e the
hirin# of apprentices witho"t co!pensation whose trainin# on the *ob is re'"ired b& the school or trainin# pro#ra!
c"rric"l"! or as re'"isite for #rad"ation or board exa!ination.
Chapt! II
LEARNERS
ARTICLE -#. 1earners defined. Learners are persons hired as trainees in se!i-skilled and other ind"strial
occ"pations which are non-apprenticeable and which !a& be learned thro"#h practical trainin# on the *ob in a
relati)el& short period of ti!e which shall not exceed three (4 !onths.
ARTICLE -4. 2hen learners may be hired. Learners !a& be e!plo&ed when no experienced workers are
a)ailable% the e!plo&!ent of learners is necessar& to pre)ent c"rtail!ent of e!plo&!ent opport"nities% and the
e!plo&!ent does not create "nfair co!petition in ter!s of labor costs or i!pair or lower workin# standards.
ARTICLE -$. 1earnership agreement. +n& e!plo&er desirin# to e!plo& learners shall enter into a learnership
a#ree!ent with the!% which a#ree!ent shall incl"de=
(a The na!es and addresses of the learners>
(b The d"ration of the learnership period% which shall not exceed three (4 !onths>
(c The wa#es or salar& rates of the learners which shall be#in at not less than se)ent&-fi)e percent (/-: of the
applicable !ini!"! wa#e> and
(d + co!!it!ent to e!plo& the learners if the& so desire% as re#"lar e!plo&ees "pon co!pletion of the learnership.
+ll learners who ha)e been allowed or s"ffered to work d"rin# the first two (7 !onths shall be dee!ed re#"lar
e!plo&ees if trainin# is ter!inated b& the e!plo&er before the end of the stip"lated period thro"#h no fa"lt of the
learners.
The learnership a#ree!ent shall be s"b*ect to inspection b& the $ecretar& of Labor and @!plo&!ent or his d"l&
a"thori(ed representati)e.
ARTICLE -%. 1earners in piecework. Learners e!plo&ed in piece or incenti)e-rate *obs d"rin# the trainin# period
shall be paid in f"ll for the work done.
ARTICLE --. $enalty clause. +n& )iolation of this Chapter or its i!ple!entin# r"les and re#"lations shall be
s"b*ect to the #eneral penalt& cla"se pro)ided for in this Code.
Chapt! III
HANDICAPPED WOR)ERS
ARTICLE -&. Definition. Fandicapped workers are those whose earnin# capacit& is i!paired b& a#e or ph&sical or
!ental deficienc& or in*"r&.
ARTICLE -'. 2hen employable. Fandicapped workers !a& be e!plo&ed when their e!plo&!ent is necessar& to
pre)ent c"rtail!ent of e!plo&!ent opport"nities and when it does not create "nfair co!petition in labor costs or
i!pair or lower workin# standards.
ARTICLE &(. "mployment agreement. +n& e!plo&er who e!plo&s handicapped workers shall enter into an
e!plo&!ent a#ree!ent with the!% which a#ree!ent shall incl"de=
a. The na!es and addresses of the handicapped workers to be e!plo&ed>
b. The rate to be paid the handicapped workers which shall not be less than se)ent& fi)e (/-: percent of the
applicable le#al !ini!"! wa#e>
c. The d"ration of e!plo&!ent period> and
d. The work to be perfor!ed b& handicapped workers.
The e!plo&!ent a#ree!ent shall be s"b*ect to inspection b& the $ecretar& of Labor or his d"l& a"thori(ed
representati)e.
ARTICLE &". "ligibility for apprenticeship. $"b*ect to the appropriate pro)isions of this Code% handicapped
workers !a& be hired as apprentices or learners if their handicap is not s"ch as to effecti)el& i!pede the
perfor!ance of *ob operations in the partic"lar occ"pations for which the& are hired.
BOO) THREE
CONDITIONS OF EMPLOYMENT
T+t, I
WOR)ING CONDITIONS AND REST PERIODS
Chapt! I
HOURS OF WOR)
ARTICLE &2. Coverage. The pro)isions of this Title shall appl& to e!plo&ees in all establish!ents and
"ndertakin#s whether for profit or not% b"t not to #o)ern!ent e!plo&ees% !ana#erial e!plo&ees% field personnel%
!e!bers of the fa!il& of the e!plo&er who are dependent on hi! for s"pport% do!estic helpers% persons in the
personal ser)ice of another% and workers who are paid b& res"lts as deter!ined b& the $ecretar& of Labor in
appropriate re#"lations.
+s "sed herein% !ana#erial e!plo&ees refer to those whose pri!ar& d"t& consists of the !ana#e!ent of the
establish!ent in which the& are e!plo&ed or of a depart!ent or s"bdi)ision thereof% and to other officers or !e!bers
of the !ana#erial staff.
6ield personnel shall refer to non-a#ric"lt"ral e!plo&ees who re#"larl& perfor! their d"ties awa& fro! the principal
place of b"siness or branch office of the e!plo&er and whose act"al ho"rs of work in the field cannot be deter!ined
with reasonable certaint&.
ARTICLE &#. Normal hours of work. The nor!al ho"rs of work of an& e!plo&ee shall not exceed ei#ht (B ho"rs
a da&.
Fealth personnel in cities and !"nicipalities with a pop"lation of at least one !illion (,%000%000 or in hospitals and
clinics with a bed capacit& of at least one h"ndred (,00 shall hold re#"lar office ho"rs for ei#ht (B ho"rs a da&% for
fi)e (- da&s a week% excl"si)e of ti!e for !eals% except where the exi#encies of the ser)ice re'"ire that s"ch
personnel work for six (6 da&s or fort&-ei#ht (2B ho"rs% in which case% the& shall be entitled to an additional
co!pensation of at least thirt& percent (40: of their re#"lar wa#e for work on the sixth da&. 6or p"rposes of this
+rticle% health personnel shall incl"de resident ph&sicians% n"rses% n"tritionists% dietitians% phar!acists% social
workers% laborator& technicians% para!edical technicians% ps&cholo#ists% !idwi)es% attendants and all other hospital
or clinic personnel.
ARTICLE &4. 3ours worked. Fo"rs worked shall incl"de (a all ti!e d"rin# which an e!plo&ee is re'"ired to be on
d"t& or to be at a prescribed workplace> and (b all ti!e d"rin# which an e!plo&ee is s"ffered or per!itted to work.
;est periods of short d"ration d"rin# workin# ho"rs shall be co"nted as ho"rs worked.
ARTICLE &$. 'eal periods. $"b*ect to s"ch re#"lations as the $ecretar& of Labor !a& prescribe% it shall be the
d"t& of e)er& e!plo&er to #i)e his e!plo&ees not less than sixt& (60 !in"tes ti!e-off for their re#"lar !eals.
ARTICLE &%. Night shiftdifferential. @)er& e!plo&ee shall be paid a ni#ht shift differential of not less than ten
percent (,0: of his re#"lar wa#e for each ho"r of work perfor!ed between ten oclock in the e)enin# and six oclock
in the !ornin#.
ARTICLE &-. %vertime work. ?ork !a& be perfor!ed be&ond ei#ht (B ho"rs a da& pro)ided that the e!plo&ee is
paid for the o)erti!e work% an additional co!pensation e'"i)alent to his re#"lar wa#e pl"s at least twent&-fi)e
percent (7-: thereof. ?ork perfor!ed be&ond ei#ht ho"rs on a holida& or rest da& shall be paid an additional
co!pensation e'"i)alent to the rate of the first ei#ht ho"rs on a holida& or rest da& pl"s at least thirt& percent (40:
thereof.
ARTICLE &&. 4ndertime not offset by overtime. Cnderti!e work on an& partic"lar da& shall not be offset b&
o)erti!e work on an& other da&. Per!ission #i)en to the e!plo&ee to #o on lea)e on so!e other da& of the week
shall not exe!pt the e!plo&er fro! pa&in# the additional co!pensation re'"ired in this Chapter.
ARTICLE &'. "mergency overtime work. +n& e!plo&ee !a& be re'"ired b& the e!plo&er to perfor! o)erti!e
work in an& of the followin# cases=
(a ?hen the co"ntr& is at war or when an& other national or local e!er#enc& has been declared b& the .ational
+sse!bl& or the Chief @xec"ti)e>
(b ?hen it is necessar& to pre)ent loss of life or propert& or in case of i!!inent dan#er to p"blic safet& d"e to an
act"al or i!pendin# e!er#enc& in the localit& ca"sed b& serio"s accidents% fire% flood% t&phoon% earth'"ake%
epide!ic% or other disaster or cala!it&>
(c ?hen there is "r#ent work to be perfor!ed on !achines% installations% or e'"ip!ent% in order to a)oid serio"s loss
or da!a#e to the e!plo&er or so!e other ca"se of si!ilar nat"re>
(d ?hen the work is necessar& to pre)ent loss or da!a#e to perishable #oods> and
(e ?here the co!pletion or contin"ation of the work started before the ei#hth ho"r is necessar& to pre)ent serio"s
obstr"ction or pre*"dice to the b"siness or operations of the e!plo&er.
+n& e!plo&ee re'"ired to render o)erti!e work "nder this +rticle shall be paid the additional co!pensation re'"ired
in this Chapter.
ARTICLE '(. Computation of additional compensation5 6or p"rposes of co!p"tin# o)erti!e and other
additional re!"neration as re'"ired b& this Chapter% the re#"lar wa#e of an e!plo&ee shall incl"de the cash wa#e
onl&% witho"t ded"ction on acco"nt of facilities pro)ided b& the e!plo&er.
Chapt! II
WEE)LY REST PERIODS
ARTICLE '". Right to weekly rest day. (a 5t shall be the d"t& of e)er& e!plo&er% whether operatin# for profit or
not% to pro)ide each of his e!plo&ees a rest period of not less than twent&-fo"r (72 consec"ti)e ho"rs after e)er& six
(6 consec"ti)e nor!al work da&s.
(b The e!plo&er shall deter!ine and sched"le the weekl& rest da& of his e!plo&ees s"b*ect to collecti)e bar#ainin#
a#ree!ent and to s"ch r"les and re#"lations as the $ecretar& of Labor and @!plo&!ent !a& pro)ide. Fowe)er% the
e!plo&er shall respect the preference of e!plo&ees as to their weekl& rest da& when s"ch preference is based on
reli#io"s #ro"nds.
ARTICLE '2. 2hen employer may re*uire work on a rest day. The e!plo&er !a& re'"ire his e!plo&ees to work
on an& da&=
(a 5n case of act"al or i!pendin# e!er#encies ca"sed b& serio"s accident% fire% flood% t&phoon% earth'"ake%
epide!ic or other disaster or cala!it& to pre)ent loss of life and propert&% or i!!inent dan#er to p"blic safet&>
(b 5n cases of "r#ent work to be perfor!ed on the !achiner&% e'"ip!ent% or installation% to a)oid serio"s loss which
the e!plo&er wo"ld otherwise s"ffer>
(c 5n the e)ent of abnor!al press"re of work d"e to special circ"!stances% where the e!plo&er cannot ordinaril& be
expected to resort to other !eas"res>
(d To pre)ent loss or da!a#e to perishable #oods>
(e ?here the nat"re of the work re'"ires contin"o"s operations and the stoppa#e of work !a& res"lt in irreparable
in*"r& or loss to the e!plo&er> and
(f Cnder other circ"!stances analo#o"s or si!ilar to the fore#oin# as deter!ined b& the $ecretar& of Labor and
@!plo&!ent.
ARTICLE '#. Compensation for rest day/ unday or holiday work. - (a ?here an e!plo&ee is !ade or per!itted
to work on his sched"led rest da&% he shall be paid an additional co!pensation of at least thirt& percent (40: of his
re#"lar wa#e. +n e!plo&ee shall be entitled to s"ch additional co!pensation for work perfor!ed on $"nda& onl&
when it is his established rest da&.
(b ?hen the nat"re of the work of the e!plo&ee is s"ch that he has no re#"lar workda&s and no re#"lar rest da&s
can be sched"led% he shall be paid an additional co!pensation of at least thirt& percent (40: of his re#"lar wa#e for
work perfor!ed on $"nda&s and holida&s.
(c ?ork perfor!ed on an& special holida& shall be paid an additional co!pensation of at least thirt& percent (40: of
the re#"lar wa#e of the e!plo&ee. ?here s"ch holida& work falls on the e!plo&ees sched"led rest da&% he shall be
entitled to an additional co!pensation of at least fift& per cent (-0: of his re#"lar wa#e.
(d ?here the collecti)e bar#ainin# a#ree!ent or other applicable e!plo&!ent contract stip"lates the pa&!ent of a
hi#her pre!i"! pa& than that prescribed "nder this +rticle% the e!plo&er shall pa& s"ch hi#her rate.
Chapt! III
HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES
ARTICLE '4. Right to holiday pay. (a @)er& worker shall be paid his re#"lar dail& wa#e d"rin# re#"lar holida&s%
except in retail and ser)ice establish!ents re#"larl& e!plo&in# less than ten (,0 workers>
(b The e!plo&er !a& re'"ire an e!plo&ee to work on an& holida& b"t s"ch e!plo&ee shall be paid a co!pensation
e'"i)alent to twice his re#"lar rate> and
(c +s "sed in this +rticle% holida& incl"des= .ew Eears Da&% Aa"nd& Th"rsda&% <ood 6rida&% the ninth of +pril% the
first of Aa&% the twelfth of G"ne% the fo"rth of G"l&% the thirtieth of .o)e!ber% the twent&-fifth and thirtieth of Dece!ber
and the da& desi#nated b& law for holdin# a #eneral election.
ARTICLE '$. Right to service incentive leave. (a @)er& e!plo&ee who has rendered at least one &ear of ser)ice
shall be entitled to a &earl& ser)ice incenti)e lea)e of fi)e da&s with pa&.
(b This pro)ision shall not appl& to those who are alread& en*o&in# the benefit herein pro)ided% those en*o&in#
)acation lea)e with pa& of at least fi)e da&s and those e!plo&ed in establish!ents re#"larl& e!plo&in# less than ten
e!plo&ees or in establish!ents exe!pted fro! #rantin# this benefit b& the $ecretar& of Labor and @!plo&!ent after
considerin# the )iabilit& or financial condition of s"ch establish!ent.
(c The #rant of benefit in excess of that pro)ided herein shall not be !ade a s"b*ect of arbitration or an& co"rt or
ad!inistrati)e action.
ARTICLE '%. ervice charges. +ll ser)ice char#es collected b& hotels% resta"rants and si!ilar establish!ents
shall be distrib"ted at the rate of ei#ht&-fi)e percent (B-: for all co)ered e!plo&ees and fifteen percent (,-: for
!ana#e!ent. The share of the e!plo&ees shall be e'"all& distrib"ted a!on# the!. 5n case the ser)ice char#e is
abolished% the share of the co)ered e!plo&ees shall be considered inte#rated in their wa#es.
T+t, II
WAGES
Chapt! I
PRELIMINARY MATTERS
ARTICLE '-. Definitions. +s "sed in this Title=
(a Person !eans an indi)id"al% partnership% association% corporation% b"siness tr"st% le#al representati)es% or an&
or#ani(ed #ro"p of persons.
(b @!plo&er incl"des an& person actin# directl& or indirectl& in the interest of an e!plo&er in relation
to an e!plo&ee and shall incl"de the #o)ern!ent and all its branches% s"bdi)isions and instr"!entalities% all
#o)ern!ent-owned or controlled corporations and instit"tions% as well as non-profit pri)ate instit"tions% or
or#ani(ations.
(c @!plo&ee incl"des an& indi)id"al e!plo&ed b& an e!plo&er.
(d +#ric"lt"re incl"des far!in# in all its branches and% a!on# other thin#s% incl"des c"lti)ation and
tilla#e of soil% dair&in#% the prod"ction% c"lti)ation% #rowin# and har)estin# of an& a#ric"lt"ral and
hortic"lt"ral co!!odities% the raisin# of li)estock or po"ltr&% and an& practices perfor!ed b& a far!er
on a far! as an incident to or in con*"nction with s"ch far!in# operations% b"t does not incl"de the
!an"fact"rin# or processin# of s"#ar% cocon"ts% abaca% tobacco% pineapples or other far! prod"cts.
(e @!plo& incl"des to s"ffer or per!it to work.
(f ?a#e paid to an& e!plo&ee shall !ean the re!"neration or earnin#s% howe)er desi#nated% capable of bein#
expressed in ter!s of !one&% whether fixed or ascertained on a ti!e% task% piece% or co!!ission basis% or other
!ethod of calc"latin# the sa!e% which is pa&able b& an e!plo&er to an e!plo&ee "nder a written or "nwritten
contract of e!plo&!ent for work done or to be done% or for ser)ices rendered or to be rendered and incl"des the fair
and reasonable )al"e% as deter!ined b& the $ecretar& of Labor and @!plo&!ent% of board% lod#in#% or other facilities
c"sto!aril& f"rnished b& the e!plo&er to the e!plo&ee. 6air and reasonable )al"e shall not incl"de an& profit to the
e!plo&er% or to an& person affiliated with the e!plo&er.
ARTICLE '&. Application of Title. This Title shall not appl& to far! tenanc& or leasehold% do!estic ser)ice and
persons workin# in their respecti)e ho!es in needle work or in an& cotta#e ind"str& d"l& re#istered in accordance
with law.
Chapt! II
MINIMUM WAGE RATES
ARTICLE ''. Regional minimum wages. The !ini!"! wa#e rates for a#ric"lt"ral and non-a#ric"lt"ral
e!plo&ees and workers in each and e)er& re#ion of the co"ntr& shall be those prescribed b& the ;e#ional Tripartite
?a#es and Prod"cti)it& 3oards. (+s a!ended b& $ection 4% ;ep"blic +ct .o. 6/7/% G"ne 1% ,1B1.
ARTICLE "((. $rohibition against elimination or diminution of benefits. .othin# in this 3ook shall be
constr"ed to eli!inate or in an& wa& di!inish s"pple!ents% or other e!plo&ee benefits bein# en*o&ed at the ti!e of
pro!"l#ation of this Code.
ARTICLE "(". $ayment by results. - (a The $ecretar& of Labor and @!plo&!ent shall re#"late the pa&!ent of
wa#es b& res"lts% incl"din# pak&ao% piecework% and other non-ti!e work% in order to ens"re the pa&!ent of fair and
reasonable wa#e rates% preferabl& thro"#h ti!e and !otion st"dies or in cons"ltation with representati)es of workers
and e!plo&ers or#ani(ations.
Chapt! III
PAYMENT OF WAGES
ARTICLE "(2. &orms of payment. .o e!plo&er shall pa& the wa#es of an e!plo&ee b& !eans of pro!issor&
notes% )o"chers% co"pons% tokens% tickets% chits% or an& ob*ect other than le#al tender% e)en when expressl&
re'"ested b& the e!plo&ee. Pa&!ent of wa#es b& check or !one& order shall be allowed when s"ch !anner of
pa&!ent is c"sto!ar& on the date of effecti)it& of this Code% or is necessar& beca"se of special circ"!stances as
specified in appropriate re#"lations to be iss"ed b& the $ecretar& of Labor and @!plo&!ent or as stip"lated in a
collecti)e bar#ainin# a#ree!ent.
ARTICLE "(#. Time of payment. ?a#es shall be paid at least once e)er& two (7 weeks or twice a !onth at
inter)als not exceedin# sixteen (,6 da&s. 5f on acco"nt of force !a*e"re or circ"!stances be&ond the e!plo&ers
control% pa&!ent of wa#es on or within the ti!e herein pro)ided cannot be !ade% the e!plo&er shall pa& the wa#es
i!!ediatel& after s"ch force !a*e"re or circ"!stances ha)e ceased. .o e!plo&er shall !ake pa&!ent with less
fre'"enc& than once a !onth.
The pa&!ent of wa#es of e!plo&ees en#a#ed to perfor! a task which cannot be co!pleted in two (7 weeks shall be
s"b*ect to the followin# conditions% in the absence of a collecti)e bar#ainin# a#ree!ent or arbitration award=
(, That pa&!ents are !ade at inter)als not exceedin# sixteen (,6 da&s% in proportion to the a!o"nt of work
co!pleted>
(7 That final settle!ent is !ade "pon co!pletion of the work.
ARTICLE "(4. $lace of payment. Pa&!ent of wa#es shall be !ade at or near the place of "ndertakin#% except as
otherwise pro)ided b& s"ch re#"lations as the $ecretar& of Labor and @!plo&!ent !a& prescribe "nder conditions to
ens"re #reater protection of wa#es.
ARTICLE "($. Direct payment of wages5 ?a#es shall be paid directl& to the workers to who! the& are d"e%
except=
(a 5n cases of force !a*e"re renderin# s"ch pa&!ent i!possible or "nder other special circ"!stances to be
deter!ined b& the $ecretar& of Labor and @!plo&!ent in appropriate re#"lations% in which case% the worker !a& be
paid thro"#h another person "nder written a"thorit& #i)en b& the worker for the p"rpose> or
(b ?here the worker has died% in which case% the e!plo&er !a& pa& the wa#es of the deceased worker to the heirs
of the latter witho"t the necessit& of intestate proceedin#s. The clai!ants% if the& are all of a#e% shall exec"te an
affida)it attestin# to their relationship to the deceased and the fact that the& are his heirs% to the excl"sion of all other
persons. 5f an& of the heirs is a !inor% the affida)it shall be exec"ted on his behalf b& his nat"ral #"ardian or next-of-
kin. The affida)it shall be presented to the e!plo&er who shall !ake pa&!ent thro"#h the $ecretar& of Labor and
@!plo&!ent or his representati)e. The representati)e of the $ecretar& of Labor and @!plo&!ent shall act as referee
in di)idin# the a!o"nt paid a!on# the heirs. The pa&!ent of wa#es "nder this +rticle shall absol)e the e!plo&er of
an& f"rther liabilit& with respect to the a!o"nt paid.
ARTICLE "(%. Contractor or subcontractor5 ?hene)er an e!plo&er enters into a contract with another person
for the perfor!ance of the for!ers work% the e!plo&ees of the contractor and of the latters s"bcontractor% if an&% shall
be paid in accordance with the pro)isions of this Code.
5n the e)ent that the contractor or!s"bcontractor fails to pa& the wa#es of his e!plo&ees in accordance with this
Code% the e!plo&er shall be *ointl& and se)erall& liable with his contractor or s"bcontractor to s"ch e!plo&ees to the
extent of the work perfor!ed "nder the contract% in the sa!e !anner and extent that he is liable to e!plo&ees
directl& e!plo&ed b& hi!.
The $ecretar& of Labor and @!plo&!ent !a&% b& appropriate re#"lations% restrict or prohibit the contractin#-o"t of
labor to protect the ri#hts of workers established "nder this Code. 5n so prohibitin# or restrictin#% he !a& !ake
appropriate distinctions between labor-onl& contractin# and *ob contractin# as well as differentiations within these
t&pes of contractin# and deter!ine who a!on# the parties in)ol)ed shall be considered the e!plo&er for p"rposes of
this Code% to pre)ent an& )iolation or circ"!)ention of an& pro)ision of this Code.
There is labor-onl& contractin# where the person s"ppl&in# workers to an e!plo&er does not ha)e s"bstantial
capital or in)est!ent in the for! of tools% e'"ip!ent% !achineries% work pre!ises% a!on# others% and the workers
recr"ited and placed b& s"ch person are perfor!in# acti)ities which are directl& related to the principal b"siness of
s"ch e!plo&er. 5n s"ch cases% the person or inter!ediar& shall be considered !erel& as an a#ent of the e!plo&er
who shall be responsible to theworkers in the sa!e !anner and extent as if the latter were directl& e!plo&ed b& hi!.
ARTICLE "(-. Indirect employer5 The pro)isions of the i!!ediatel& precedin# article shall likewise appl& to an&
person% partnership% association or corporation which% not bein# an e!plo&er% contracts with an independent
contractor for the perfor!ance of an& work% task% *ob or pro*ect.
ARTICLE "(&. $osting of bond. +n e!plo&er or indirect e!plo&er !a& re'"ire the contractor or s"bcontractor to
f"rnish a bond e'"al to the cost of labor "nder contract% on condition that the bond will answer for the wa#es d"e the
e!plo&ees sho"ld the contractor or s"bcontractor% as the case !a& be% fail to pa& the sa!e.
ARTICLE "('. olidary liability. The pro)isions of existin# laws to the contrar& notwithstandin#% e)er& e!plo&er or
indirect e!plo&er shall be held responsible with his contractor or s"bcontractor for an& )iolation of an& pro)ision of
this Code. 6or p"rposes of deter!inin# the extent of their ci)il liabilit& "nder this Chapter% the& shall be considered as
direct e!plo&ers.
ARTICLE ""(. 2orker preference in case of bankruptcy. 5n the e)ent of bankr"ptc& or li'"idation of an
e!plo&ers b"siness% his workers shall en*o& first preference as re#ards their wa#es and other !onetar& clai!s% an&
pro)isions of law to the contrar& notwithstandin#. $"ch "npaid wa#es and !onetar& clai!s shall be paid in f"ll before
clai!s of the #o)ern!ent and other creditors !a& be paid. (+s a!ended b& $ection ,%;ep"blic +ct .o. 6/,-% Aarch
7,% ,1B1.
ARTICLE """. Attorneys fees5 (a 5n cases of "nlawf"l withholdin# of wa#es% the c"lpable part& !a& be assessed
attorne&s fees e'"i)alent to ten percent of the a!o"nt of wa#es reco)ered.
(b 5t shall be "nlawf"l for an& person to de!and or accept% in an& *"dicial or ad!inistrati)e proceedin#s for the
reco)er& of wa#es% attorne&s fees which exceed ten percent of the a!o"nt of wa#es reco)ered.
Chapt! IV
PROHIBITIONS REGARDING WAGES
ARTICLE ""2. Non-interference in disposal of wages5 .o e!plo&er shall li!it or otherwise interfere with the
freedo! of an& e!plo&ee to dispose of his wa#es. Fe shall not in an& !anner force% co!pel% or obli#e his e!plo&ees
to p"rchase !erchandise% co!!odities or other propert& fro! an& other person% or otherwise !ake "se of an& store
or ser)ices of s"ch e!plo&er or an& other person.
ARTICLE ""#. 2age deduction5 .o e!plo&er% in his own behalf or in behalf of an& person% shall !ake an&
ded"ction fro! the wa#es of his e!plo&ees% except=
(a 5n cases where the worker is ins"red with his consent b& the e!plo&er% and the ded"ction is to reco!pense the
e!plo&er for the a!o"nt paid b& hi! as pre!i"! on the ins"rance>
(b 6or "nion d"es% in cases where the ri#ht of the worker or his "nion to check-off has been reco#ni(ed b& the
e!plo&er or a"thori(ed in writin# b& the indi)id"al worker concerned> and
(c 5n cases where the e!plo&er is a"thori(ed b& law or re#"lations iss"ed b& the $ecretar& of Labor and
@!plo&!ent.
ARTICLE ""4. Deposits for loss or damage. .o e!plo&er shall re'"ire his worker to !ake deposits fro! which
ded"ctions shall be !ade for the rei!b"rse!ent of loss of or da!a#e to tools% !aterials% or e'"ip!ent s"pplied b&
the e!plo&er% except when the e!plo&er is en#a#ed in s"ch trades% occ"pations or b"siness where the practice of
!akin# ded"ctions or re'"irin# deposits is a reco#ni(ed one% or is necessar& or desirable as deter!ined b& the
$ecretar& of Labor and @!plo&!ent in appropriate r"les and re#"lations.
ARTICLE ""$. 1imitations. .o ded"ction fro! the deposits of an e!plo&ee for the act"al a!o"nt of the loss or
da!a#e shall be !ade "nless the e!plo&ee has been heard thereon% and his responsibilit& has been clearl& shown.
ARTICLE ""%. 2ithholding of wages and kickbacks prohibited. - 5t shall be "nlawf"l for an& person% directl& or
indirectl&% to withhold an& a!o"nt fro! the wa#es of a worker or ind"ce hi! to #i)e "p an& part of his wa#es b& force%
stealth% inti!idation% threat or b& an& other !eans whatsoe)er witho"t the workers consent.
ARTICLE ""-. Deduction to ensure employment. 5t shall be "nlawf"l to !ake an& ded"ction fro! the wa#es of
an& e!plo&ee for the benefit of the e!plo&er or his representati)e or inter!ediar& as consideration of a pro!ise of
e!plo&!ent or retention in e!plo&!ent.
ARTICLE ""&. Retaliatory measures. 5t shall be "nlawf"l for an e!plo&er to ref"se to pa& or red"ce the wa#es
and benefits% dischar#e or in an& !anner discri!inate a#ainst an& e!plo&ee who has filed an& co!plaint or instit"ted
an& proceedin# "nder this Title or has testified or is abo"t to testif& in s"ch proceedin#s.
ARTICLE ""'. &alse reporting5 5t shall be "nlawf"l for an& person to !ake an& state!ent% report% or record filed or
kept p"rs"ant to the pro)isions of this Code knowin# s"ch state!ent% report or record to be false in an& !aterial
respect.
Chapt! V
WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION
ARTICLE "2(. Creation of National 2ages and $roductivity Commission. - There is hereb& created a .ational
?a#es and Prod"cti)it& Co!!ission% hereinafter referred to as the Co!!ission% which shall be attached to the
Depart!ent of Labor and @!plo&!ent (D9L@ for polic& and pro#ra! coordination. (+s a!ended b& ;ep"blic +ct
.o. 6/7/% G"ne 1% ,1B1.
ARTICLE "2". $owers and functions of the Commission. The Co!!ission shall ha)e the followin# powers and
f"nctions=
(a To act as the national cons"ltati)e and ad)isor& bod& to the President of the Philippines and Con#ress on !atters
relatin# to wa#es% inco!es and prod"cti)it&>
(b To for!"late policies and #"idelines on wa#es% inco!es and prod"cti)it& i!pro)e!ent at the enterprise% ind"str&
and national le)els>
(c To prescribe r"les and #"idelines for the deter!ination of appropriate !ini!"! wa#e and prod"cti)it& !eas"res
at the re#ional% pro)incial% or ind"str& le)els>
(d To re)iew re#ional wa#e le)els set b& the ;e#ional Tripartite ?a#es and Prod"cti)it& 3oards to deter!ine if these
are in accordance with prescribed #"idelines and national de)elop!ent plans>
(e To "ndertake st"dies% researches and s"r)e&s necessar& for the attain!ent of its f"nctions and ob*ecti)es% and to
collect and co!pile data and periodicall& disse!inate infor!ation on wa#es and prod"cti)it& and other related
infor!ation% incl"din#% b"t not li!ited to% e!plo&!ent% cost-of-li)in#% labor costs% in)est!ents and ret"rns>
(f To re)iew plans and pro#ra!s of the ;e#ional Tripartite ?a#es and Prod"cti)it& 3oards to deter!ine whether
these are consistent with national de)elop!ent plans>
(# To exercise technical and ad!inistrati)e s"per)ision o)er the ;e#ional Tripartite ?a#es and Prod"cti)it& 3oards>
(h To call% fro! ti!e to ti!e% a national tripartite conference of representati)es of #o)ern!ent% workers and
e!plo&ers for the consideration of !eas"res to pro!ote wa#e rationali(ation and prod"cti)it&> and
(i To exercise s"ch powers and f"nctions as !a& be necessar& to i!ple!ent this +ct.
The Co!!ission shall be co!posed of the $ecretar& of Labor and @!plo&!ent as ex-officio chair!an% the Director-
<eneral of the .ational @cono!ic and De)elop!ent +"thorit& (.@D+ as ex-officio )ice-chair!an% and two (7
!e!bers each fro! workers and e!plo&ers sectors who shall be appointed b& the President of the Philippines "pon
reco!!endation of the $ecretar& of Labor and @!plo&!ent to be !ade on the basis of the list of no!inees
s"b!itted b& the workers and e!plo&ers sectors% respecti)el&% and who shall ser)e for a ter! of fi)e (- &ears. The
@xec"ti)e Director of the Co!!ission shall also be a !e!ber of the Co!!ission.
The Co!!ission shall be assisted b& a $ecretariatto be headed b& an @xec"ti)e Director and two (7 Dep"t&
Directors% who shall be appointed b& the President of the Philippines% "pon the reco!!endation of the $ecretar& of
Labor and @!plo&!ent.
The @xec"ti)e Director shall ha)e the sa!e rank% salar&% benefits and other e!ol"!ents as that of a Depart!ent
+ssistant $ecretar&% while the Dep"t& Directors shall ha)e the sa!e rank% salar&% benefits and other e!ol"!ents as
that of a 3"rea" Director. The !e!bers of the Co!!ission representin# labor and !ana#e!ent shall ha)e the sa!e
rank% e!ol"!ents% allowances and other benefits as those prescribed b& law for labor and !ana#e!ent
representati)es in the @!plo&ees Co!pensation Co!!ission. (+s a!ended b& ;ep"blic +ct .o. 6/7/% G"ne 1%
,1B1.
ARTICLE "22. Creation of Regional Tripartite 2ages and $roductivity #oards5 - There is hereb& created
;e#ional Tripartite ?a#es and Prod"cti)it& 3oards% hereinafter referred to as ;e#ional 3oards% in all re#ions%
incl"din# a"tono!o"s re#ions as !a& be established b& law. The Co!!ission shall deter!ine the
offices8head'"arters of the respecti)e ;e#ional 3oards.
The ;e#ional 3oards shall ha)e the followin# powers and f"nctions in their respecti)e territorial *"risdictions=
(a To de)elop plans% pro#ra!s and pro*ects relati)e to wa#es% inco!es and prod"cti)it& i!pro)e!ent for their
respecti)e re#ions>
(b To deter!ine and fix !ini!"! wa#e rates applicable in their re#ions% pro)inces or ind"stries therein and to iss"e
the correspondin# wa#e orders% s"b*ect to #"idelines iss"ed b& the Co!!ission>
(c To "ndertake st"dies% researches% and s"r)e&s necessar& for the attain!ent of their f"nctions% ob*ecti)es and
pro#ra!s% and to collect and co!pile data on wa#es% inco!es% prod"cti)it& and other related infor!ation and
periodicall& disse!inate the sa!e>
(d To coordinate with the other ;e#ional 3oards as !a& be necessar& to attain the polic& and intention of this Code>
(e To recei)e% process and act on applications for exe!ption fro! prescribed wa#e rates as !a& be pro)ided b& law
or an& ?a#e 9rder> and
(f To exercise s"ch other powers and f"nctions as !a& be necessar& to carr& o"t their !andate "nder this Code.
5!ple!entation of the plans% pro#ra!s% and pro*ects of the ;e#ional 3oards referred to in the second para#raph%
letter (a of this +rticle% shall be thro"#h the respecti)e re#ional offices of the Depart!ent of Labor and @!plo&!ent
within their territorial *"risdiction> Pro)ided% howe)er% That the ;e#ional 3oards shall ha)e technical s"per)ision o)er
the re#ional office of the Depart!ent of Labor and @!plo&!ent with respect to the i!ple!entation of said plans%
pro#ra!s and pro*ects.
@ach ;e#ional 3oard shall be co!posed of the ;e#ional Director of the Depart!ent of Labor and @!plo&!ent as
chair!an% the ;e#ional Directors of the .ational @cono!ic and De)elop!ent +"thorit& and the Depart!ent of Trade
and 5nd"str& as )ice-chair!en and two (7 !e!bers each fro! workers and e!plo&ers sectors who shall be
appointed b& the President of the Philippines% "pon the reco!!endation of the $ecretar& of Labor and @!plo&!ent%
to be !ade on the basis of the list of no!inees s"b!itted b& the workers and e!plo&ers sectors% respecti)el&% and
who shall ser)e for a ter! of fi)e (- &ears.
@ach ;e#ional 3oard to be headed b& its chair!an shall be assisted b& a $ecretariat.
(+s a!ended b& ;ep"blic +ct .o. 6/7/% G"ne 1% ,1B1.
ARTICLE "2#. 2age %rder5 ?hene)er conditions in the re#ion so warrant% the ;e#ional 3oard shall in)esti#ate
and st"d& all pertinent facts> and based on the standards and criteria herein prescribed% shall proceed to deter!ine
whether a ?a#e 9rder sho"ld be iss"ed. +n& s"ch ?a#e 9rder shall take effect after fifteen(,- da&s fro! its
co!plete p"blication in at least one (, newspaper of #eneral circ"lation in the re#ion.
5n the perfor!ance of its wa#e-deter!inin# f"nctions% the ;e#ional 3oard shall cond"ct p"blic hearin#s8cons"ltations%
#i)in# notices to e!plo&ees and e!plo&ers #ro"ps% pro)incial% cit& and !"nicipal officials and other interested
parties.
+n& part& a##rie)ed b& the ?a#e 9rder iss"ed b& the ;e#ional 3oard !a& appeal s"ch order to the Co!!ission
within ten (,0 calendar da&s fro! the p"blication of s"ch order. 5t shall be !andator& for the Co!!ission to decide
s"ch appeal within sixt& (60 calendar da&s fro! the filin# thereof.
The filin# of the appeal does not sta& the order "nless the person appealin# s"ch order shall file with the
Co!!ission% an "ndertakin# with a s"ret& or s"reties satisfactor& to the Co!!ission for the pa&!ent to the
e!plo&ees affected b& the order of the correspondin# increase% in the e)ent s"ch order is affir!ed. (+s a!ended b&
;ep"blic +ct .o. 6/7/% G"ne 1% ,1B1.
ARTICLE "24. tandards+Criteria for minimum wage fi(ing. The re#ional !ini!"! wa#es to be established b&
the ;e#ional 3oard shall be as nearl& ade'"ate as is econo!icall& feasible to !aintain the !ini!"! standards of
li)in# necessar& for the health% efficienc& and #eneral well-bein# of the e!plo&ees within the fra!ework of the
national econo!ic and social de)elop!ent pro#ra!. 5n the deter!ination of s"ch re#ional !ini!"! wa#es% the
;e#ional 3oard shall% a!on# other rele)ant factors% consider the followin#=
(a The de!and for li)in# wa#es>
(b ?a#e ad*"st!ent )is)is the cons"!er price index>
(c The cost of li)in# and chan#es or increases therein>
(d The needs of workers and their fa!ilies>
(e The need to ind"ce ind"stries to in)est in the co"ntr&side>
(f 5!pro)e!ents in standards of li)in#>
(# The pre)ailin# wa#e le)els>
(h 6air ret"rn of the capital in)ested and capacit& to pa& of e!plo&ers>
(i @ffects on e!plo&!ent #eneration and fa!il& inco!e> and
(* The e'"itable distrib"tion of inco!e and wealth alon# the i!perati)es of econo!ic and social de)elop!ent.
The wa#es prescribed in accordance with the pro)isions of this Title shall be the standard pre)ailin# !ini!"! wa#es
in e)er& re#ion. These wa#es shall incl"de wa#es )ar&in# with ind"stries% pro)inces or localities if in the *"d#!ent of
the ;e#ional 3oard% conditions !ake s"ch local differentiation proper and necessar& to effect"ate the p"rpose of this
Title.
+n& person% co!pan&% corporation% partnership or an& other entit& en#a#ed in b"siness shall file and re#ister ann"all&
with the appropriate ;e#ional 3oard% Co!!ission and the .ational $tatistics 9ffice% an ite!i(ed listin# of their labor
co!ponent% specif&in# the na!es of their workers and e!plo&ees below the !ana#erial le)el% incl"din# learners%
apprentices and disabled8handicapped workers who were hired "nder the ter!s prescribed in the e!plo&!ent
contracts% and their correspondin# salaries and wa#es.
?here the application of an& prescribed wa#e increase b& )irt"e of a law or wa#e order iss"ed b& an& ;e#ional
3oard res"lts in distortions of the wa#e str"ct"re within an establish!ent% the e!plo&er and the "nion shall ne#otiate
to correct the distortions. +n& disp"te arisin# fro! wa#e distortions shall be resol)ed thro"#h the #rie)ance proced"re
"nder their collecti)e bar#ainin# a#ree!ent and% if it re!ains "nresol)ed% thro"#h )ol"ntar& arbitration. Cnless
otherwise a#reed b& the parties in writin#% s"ch disp"te shall be decided b& the )ol"ntar& arbitrators within ten (,0
calendar da&s fro! the ti!e said disp"te was referred to )ol"ntar& arbitration.
5n cases where there are no collecti)e a#ree!ents or reco#ni(ed labor "nions% the e!plo&ers and workers shall
endea)or to correct s"ch distortions. +n& disp"te arisin# therefro! shall be settled thro"#h the .ational Conciliation
and Aediation 3oard and% if it re!ains "nresol)ed after ten (,0 calendar da&s of conciliation% shall be referred to the
appropriate branch of the .ational Labor ;elations Co!!ission (.L;C. 5t shall be !andator& for the .L;C to
cond"ct contin"o"s hearin#s and decide the disp"te within twent& (70 calendar da&s fro! the ti!e said disp"te is
s"b!itted for co!p"lsor& arbitration.
The pendenc& of a disp"te arisin# fro! a wa#e distortion shall not in an& wa& dela& the applicabilit& of an& increase
in prescribed wa#e rates p"rs"ant to the pro)isions of law or wa#e order.
+s "sed herein% a wa#e distortion shall !ean a sit"ation where an increase in prescribed wa#e rates res"lts in the
eli!ination or se)ere contraction of intentional '"antitati)e differences in wa#e or salar& rates between and a!on#
e!plo&ee #ro"ps in an establish!ent as to effecti)el& obliterate the distinctions e!bodied in s"ch wa#e str"ct"re
based on skills% len#th of ser)ice% or other lo#ical bases of differentiation.
+ll workers paid b& res"lt% incl"din# those who are paid on piecework% taka&% pak&aw or task basis% shall recei)e not
less than the prescribed wa#e rates per ei#ht (B ho"rs of work a da&% or a proportion thereof for workin# less than
ei#ht (B ho"rs.
+ll reco#ni(ed learnership and apprenticeship a#ree!ents shall be considered a"to!aticall& !odified insofar as their
wa#e cla"ses are concerned to reflect the prescribed wa#e rates. (+s a!ended b& ;ep"blic +ct .o. 6/7/% G"ne 1%
,1B1.
ARTICLE "2$. &reedom to bargain5 .o wa#e order shall be constr"ed to pre)ent workers in partic"lar fir!s or
enterprises or ind"stries fro! bar#ainin# for hi#her wa#es with their respecti)e e!plo&ers.
(+s a!ended b& ;ep"blic +ct .o. 6/7/% G"ne 1% ,1B1.
ARTICLE "2%. $rohibition against in!unction5 .o preli!inar& or per!anent in*"nction or te!porar& restrainin#
order !a& be iss"ed b& an& co"rt% trib"nal or other entit& a#ainst an& proceedin#s before the Co!!ission or the
;e#ional 3oards. (+s a!ended b& ;ep"blic +ct .o. 6/7/% G"ne 1% ,1B1.
ARTICLE "2-. Non-diminution of benefits. .o wa#e order iss"ed b& an& re#ional board shall pro)ide for wa#e
rates lower than the stat"tor& !ini!"! wa#e rates prescribed b& Con#ress. (+s a!ended b& ;ep"blic +ct .o. 6/7/%
G"ne 1% ,1B1.
Chapt! VI
ADMINISTRATION AND ENFORCEMENT
ARTICLE "2&. ,isitorial and enforcement power5 - (a The $ecretar& of Labor and @!plo&!ent or his d"l&
a"thori(ed representati)es% incl"din# labor re#"lation officers% shall ha)e access to e!plo&ers records and pre!ises
at an& ti!e of the da& or ni#ht whene)er work is bein# "ndertaken therein% and the ri#ht to cop& therefro!% to
'"estion an& e!plo&ee and in)esti#ate an& fact% condition or !atter which !a& be necessar& to deter!ine )iolations
or which !a& aid in the enforce!ent of this Code and of an& labor law% wa#e order or r"les and re#"lations iss"ed
p"rs"ant there to.
(b .otwithstandin# the pro)isions of +rticles ,71 and 7,/ of this Code to the contrar&% and in cases where the
relationship of e!plo&er-e!plo&ee still exists% the $ecretar& of Labor and @!plo&!ent or his d"l& a"thori(ed
representati)es shall ha)e the power to iss"e co!pliance orders to #i)e effect to the labor standards pro)isions of
this Code and other labor le#islation based on the findin#s of labor e!plo&!ent and enforce!ent officers or ind"strial
safet& en#ineers !ade in the co"rse of inspection. The $ecretar& or his d"l& a"thori(ed representati)es shall iss"e
writs of exec"tion to the appropriate a"thorit& for the enforce!ent of their orders% except in cases where the e!plo&er
contests the findin#s of the labor e!plo&!ent and enforce!ent officer and raises iss"es s"pported b& doc"!entar&
proofs which were not considered in the co"rse of inspection. (+s a!ended b& ;ep"blic +ct .o. //40% G"ne 7% ,112.
+n order iss"ed b& the d"l& a"thori(ed representati)e of the $ecretar& of Labor and @!plo&!ent "nder this +rticle
!a& be appealed to the latter. 5n case said order in)ol)es a !onetar& award% an appeal b& the e!plo&er !a& be
perfected onl& "pon the postin# of a cash or s"ret& bond iss"ed b& a rep"table bondin# co!pan& d"l& accredited b&
the $ecretar& of Labor and @!plo&!ent in the a!o"nt e'"i)alent to the !onetar& award in the order appealed fro!.
(+s a!ended b& ;ep"blic +ct .o. //40% G"ne 7% ,112.
(c The $ecretar& of Labor and @!plo&!ent !a& likewise order stoppa#e of work or s"spension of operations of an&
"nit or depart!ent of an establish!ent when non-co!pliance with the law or i!ple!entin# r"les and re#"lations
poses #ra)e and i!!inent dan#er to the health and safet& of workers in the workplace. ?ithin twent&-fo"r ho"rs% a
hearin# shall be cond"cted to deter!ine whether an order for the stop pa#e of work or s"spension of operations shall
be lifted or not. 5n case the )iolation is attrib"table to the fa"lt of the e!plo&er% he shall pa& the e!plo&ees concerned
their salaries or wa#es d"rin# the period of s"ch stoppa#e of work or s"spension of operation.
(d 5t shall be "nlawf"l for an& person or entit& to obstr"ct% i!pede% dela& or otherwise render ineffecti)e the orders of
the $ecretar& of Labor and @!plo&!ent or his d"l& a"thori(ed representati)es iss"ed p"rs"ant to the a"thorit&
#ranted "nder this +rticle% and no inferior co"rt or entit& shall iss"e te!porar& or per!anent in*"nction or restrainin#
order or otherwise ass"!e *"risdiction o)er an& case in)ol)in# the enforce!ent orders iss"ed in accordance with this
+rticle.
(e +n& #o)ern!ent e!plo&ee fo"nd #"ilt& of )iolation of% or ab"se of a"thorit&% "nder this +rticle shall% after
appropriate ad!inistrati)e in)esti#ation% be s"b*ect to s"!!ar& dis!issal fro! the ser)ice.
(f The $ecretar& of Labor and @!plo&!ent !a&% b& appropriate re#"lations% re'"ire e!plo&ers to keep and !aintain
s"ch e!plo&!ent records as !a& be necessar& in aid of his )isitorial and enforce!ent powers "nder this Code.
ARTICLE "2'. Recovery of wages/ simple money claims and other benefits5 Cpon co!plaint of an& interested
part&% the ;e#ional Director of the Depart!ent of Labor and @!plo&!ent or an& of the d"l& a"thori(ed hearin#
officers of the Depart!ent is e!powered% thro"#h s"!!ar& proceedin# and after d"e notice% to hear and decide an&
!atter in)ol)in# the reco)er& of wa#es and other !onetar& clai!s and benefits% incl"din# le#al interest% owin# to an
e!plo&ee or person e!plo&ed in do!estic or ho"sehold ser)ice or ho"sehelper "nder this Code% arisin# fro!
e!plo&er-e!plo&ee relations= Pro)ided% That s"ch co!plaint does not incl"de a clai! for reinstate!ent= Pro)ided
f"rther% That the a##re#ate !one& clai!s of each e!plo&ee or ho"sehelper does not exceed 6i)e tho"sand pesos
(P-%000.00. The ;e#ional Director or hearin# officer shall decide or resol)e the co!plaint within thirt& (40 calendar
da&s fro! the date of the filin# of the sa!e. +n& s"! th"s reco)ered on behalf of an& e!plo&ee or ho"sehelper
p"rs"ant to this +rticle shall be held in a special deposit acco"nt b&% and shall be paid on order of% the $ecretar& of
Labor and @!plo&!ent or the ;e#ional Director directl& to the e!plo&ee or ho"sehelper concerned. +n& s"ch s"!
not paid to the e!plo&ee or ho"sehelper beca"se he cannot be located after dili#ent and reasonable effort to locate
hi! within a period of three (4 &ears% shall be held as a special f"nd of the Depart!ent of Labor and @!plo&!ent to
be "sed excl"si)el& for the a!elioration and benefit of workers.
+n& decision or resol"tion of the ;e#ional Director or hearin# officer p"rs"ant to this pro)ision !a& be appealed on
the sa!e #ro"nds pro)ided in +rticle 774 of this Code% within fi)e (- calendar da&s fro! receipt of a cop& of said
decision or resol"tion% to the .ational Labor ;elations Co!!ission which shall resol)e the appeal within ten (,0
calendar da&s fro! the s"b!ission of the last pleadin# re'"ired or allowed "nder its r"les.
The $ecretar& of Labor and @!plo&!ent or his d"l& a"thori(ed representati)e !a& s"per)ise the pa&!ent of "npaid
wa#es and other !onetar& clai!s and benefits% incl"din# le#al interest% fo"nd owin# to an& e!plo&ee or ho"sehelper
"nder this Code. (+s a!ended b& $ection 7% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
T+t, III
WOR)ING CONDITIONS FOR
SPECIAL GROUPS OF EMPLOYEES
Chapt! I
EMPLOYMENT OF WOMEN
ARTICLE "#(. Nightwork prohibition5 .o wo!an% re#ardless of a#e% shall be e!plo&ed or per!itted or s"ffered
to work% with or witho"t co!pensation=
(a 5n an& ind"strial "ndertakin# or branch thereof between ten oclock at ni#ht and six oclock in the !ornin# of the
followin# da&> or
(b 5n an& co!!ercial or non-ind"strial "ndertakin# or branch thereof% other than a#ric"lt"ral% between !idni#ht and
six oclock in the !ornin# of the followin# da&> or
(c 5n an& a#ric"lt"ral "ndertakin# at ni#htti!e "nless she is #i)en a period of rest of not less than nine (1
consec"ti)e ho"rs.
ARTICLE "#". "(ceptions5 - The prohibitions prescribed b& the precedin# +rticle shall not appl& in an& of the
followin# cases=
(a 5n cases of act"al or i!pendin# e!er#encies ca"sed b& serio"s accident% fire% flood% t&phoon% earth'"ake%
epide!ic or other disasters or cala!it&% to pre)ent loss of life or propert&% or in cases of force !a*e"re or i!!inent
dan#er to p"blic safet&>
(b 5n case of "r#ent work to be perfor!ed on !achineries% e'"ip!ent or installation% to a)oid serio"s loss whichthe
e!plo&er wo"ld otherwise s"ffer>
(c ?here the work is necessar& to pre)ent serio"s loss of perishable #oods>
(d ?here the wo!an e!plo&ee holds a responsible position of !ana#erial or technical nat"re% or where the wo!an
e!plo&ee has been en#a#ed to pro)ide health and welfare ser)ices>
(e ?here the nat"re of the work re'"ires the !an"al skill and dexterit& of wo!en workers and the sa!e cannot be
perfor!ed with e'"al efficienc& b& !ale workers>
(f ?here the wo!en e!plo&ees are i!!ediate !e!bers of the fa!il& operatin# the establish!ent or "ndertakin#>
and
(# Cnder other analo#o"s cases exe!pted b& the $ecretar& of Labor and @!plo&!ent in appropriate re#"lations.
ARTICLE "#2. &acilities for women. The $ecretar& of Labor and @!plo&!ent shall establish standards that will
ens"re the safet& and health of wo!en e!plo&ees. 5n appropriate cases% he shall% b& re#"lations% re'"ire an&
e!plo&er to=
(a Pro)ide seats proper for wo!en and per!it the! to "se s"ch seats when the& are free fro! work and d"rin#
workin# ho"rs% pro)ided the& can perfor! their d"ties in this position witho"t detri!ent to efficienc&>
(b To establish separate toilet roo!s and la)atories for !en and wo!en and pro)ide at least a dressin# roo! for
wo!en>
(c To establish a n"rser& in a workplace for the benefit of the wo!en e!plo&ees therein> and
(d To deter!ine appropriate !ini!"! a#e and other standards for retire!ent or ter!ination in special occ"pations
s"ch as those of fli#ht attendants and the like.
ARTICLE "##. 'aternity leave benefits5 - (a @)er& e!plo&er shall #rant to an& pre#nant wo!an e!plo&ee who
has rendered an a##re#ate ser)ice of at least six (6 !onths for the last twel)e (,7 !onths% !aternit& lea)e of at
least two (7 weeks prior to the expected date of deli)er& and another fo"r (2 weeks after nor!al deli)er& or abortion
with f"ll pa& based on her re#"lar or a)era#e weekl& wa#es. The e!plo&er !a& re'"ire fro! an& wo!an e!plo&ee
appl&in# for !aternit& lea)e the prod"ction of a !edical certificate statin# that deli)er& will probabl& take place within
two weeks.
(b The !aternit& lea)e shall be extended witho"t pa& on acco"nt of illness !edicall& certified to arise o"t of the
pre#nanc&% deli)er&% abortion or !iscarria#e% which renders the wo!an "nfit for work% "nless she has earned "n"sed
lea)e credits fro! which s"ch extended lea)e !a& be char#ed.
(c The !aternit& lea)e pro)ided in this +rticle shall be paid b& the e!plo&er onl& for the first fo"r (2
deli)eries b& a wo!an e!plo&ee after the effecti)it& of this Code.
ARTICLE "#4. &amily planning services. incentives for family planning5 - (a @stablish!ents which are re'"ired
b& law to !aintain a clinic or infir!ar& shall pro)ide free fa!il& plannin# ser)ices to their e!plo&ees which shall
incl"de% b"t not be li!ited to% the application or "se of contracepti)e pills and intra"terine de)ices.
(b 5n coordination with other a#encies of the #o)ern!ent en#a#ed in the pro!otion of fa!il& plannin#% the
Depart!ent of Labor and @!plo&!ent shall de)elop and prescribe incenti)e bon"s sche!es to enco"ra#e fa!il&
plannin# a!on# fe!ale workers in an& establish!ent or enterprise.
ARTICLE "#$. Discrimination prohibited. 5t shall be "nlawf"l for an& e!plo&er to discri!inate a#ainst an& wo!an
e!plo&ee with respect to ter!s and conditions of e!plo&!ent solel& on acco"nt of her sex.
The followin# are acts of discri!ination=
(a Pa&!ent of a lesser co!pensation% incl"din# wa#e% salar& or other for! of re!"neration and frin#e
benefits% to a fe!ale e!plo&ees as a#ainst a !ale e!plo&ee% for work of e'"al )al"e> and
(b 6a)orin# a !ale e!plo&ee o)er a fe!ale e!plo&ee with respect to pro!otion% trainin# opport"nities% st"d& and
scholarship #rants solel& on acco"nt of their sexes.
Cri!inal liabilit& for the willf"l co!!ission of an& "nlawf"l act as pro)ided in this +rticle or an& )iolation of the r"les
and re#"lations iss"ed p"rs"ant to $ection 7 hereof shall be penali(ed as pro)ided in +rticles 7BB and 7B1 of this
Code= Pro)ided% That the instit"tion of an& cri!inal action "nder this pro)ision shall not bar the a##rie)ed e!plo&ee
fro! filin# an entirel& separate and distinct action for !one& clai!s% which !a& incl"de clai!s for da!a#es and other
affir!ati)e reliefs. The actions hereb& a"thori(ed shall proceed independentl& of each other. (+s a!ended b&
;ep"blic +ct .o. 6/7-% Aa& ,7% ,1B1.
ARTICLE "#%. tipulation against marriage5 5t shall be "nlawf"l for an e!plo&er to re'"ire as a condition of
e!plo&!ent or contin"ation of e!plo&!ent that a wo!an e!plo&ee shall not #et !arried% or to stip"late expressl& or
tacitl& that "pon #ettin# !arried% a wo!an e!plo&ee shall be dee!ed resi#ned or separated% or to act"all& dis!iss%
dischar#e% discri!inate or otherwise pre*"dice a wo!an e!plo&ee !erel& b& reason of her !arria#e.
ARTICLE "#-. $rohibited acts. (a 5t shall be "nlawf"l for an& e!plo&er=
(, To den& an& wo!an e!plo&ee the benefits pro)ided for in this Chapter or to dischar#e an& wo!an
e!plo&ed b& hi! for the p"rpose of pre)entin# her fro! en*o&in# an& of the benefits pro)ided "nder this Code.
(7 To dischar#e s"ch wo!an on acco"nt of her pre#nanc&% or while on lea)e or in confine!ent d"e
to her pre#nanc&>
(4 To dischar#e or ref"se the ad!ission of s"ch wo!an "pon ret"rnin# to her work for fear that she
!a& a#ain be pre#nant.
ARTICLE "#&. Classification of certain women workers . +n& wo!an who is per!itted or s"ffered to work% with
or witho"t co!pensation% in an& ni#ht cl"b% cocktail lo"n#e% !assa#e clinic% bar or si!ilar establish!ents "nder the
effecti)e control or s"per)ision of the e!plo&er for a s"bstantial period of ti!e as deter!ined b& the $ecretar& of
Labor and @!plo&!ent% shall be considered as an e!plo&ee of s"ch establish!ent for p"rposes of labor and social
le#islation.
Chapt! II
EMPLOYMENT OF MINORS
ARTICLE "#'. 'inimum employable age5 (a .o child below fifteen (,- &ears of a#e shall be e!plo&ed% except
when he works directl& "nder the sole responsibilit& of his parents or #"ardian% and his e!plo&!ent does not in an&
wa& interfere with his schoolin#.
(b +n& person between fifteen (,- and ei#hteen (,B &ears of a#e !a& be e!plo&ed for s"ch n"!ber of ho"rs and
s"ch periods of the da& as deter!ined b& the $ecretar& of Labor and @!plo&!ent in appropriate re#"lations.
(c The fore#oin# pro)isions shall in no case allow the e!plo&!ent of a person below ei#hteen (,B &ears of a#e in
an "ndertakin# which is ha(ardo"s or deleterio"s in nat"re as deter!ined b& the $ecretar& of Labor and
@!plo&!ent.
ARTICLE "4(. $rohibition against child discrimination5 - .o e!plo&er shall discri!inate a#ainst an& person in
respect to ter!s and conditions of e!plo&!ent on acco"nt of his a#e.
Chapt! III
EMPLOYMENT OF HOUSEHELPERS
ARTICLE "4". Coverage. - This Chapter shall appl& to all persons renderin# ser)ices in ho"seholds for
co!pensation.
Do!estic or ho"sehold ser)ice shall !ean ser)ice in the e!plo&ers ho!e which is "s"all& necessar& or desirable
for the !aintenance and en*o&!ent thereof and incl"des !inisterin# to the personal co!fort and con)enience of the
!e!bers of the e!plo&ers ho"sehold% incl"din# ser)ices of fa!il& dri)ers.
ARTICLE "42. Contract of domestic service. - The ori#inal contract of do!estic ser)ice shall not last for !ore than
two (7 &ears b"t it !a& be renewed for s"ch periods as !a& be a#reed "pon b& the parties.
ARTICLE "4#. 'inimum wage. (a Fo"sehelpers shall be paid the followin# !ini!"! wa#e rates=
(, @i#ht h"ndred pesos (PB00.00 a !onth for ho"sehelpers in Aanila% H"e(on% Pasa&% and Caloocan cities and
!"nicipalities of Aakati% $an G"an% Aandal"&on#% A"ntinl"pa% .a)otas% Aalabon% Paraa'"e% Las Pias% Pasi#%
Aarikina% Dalen("ela% Ta#"i# and Pateros in Aetro Aanila and in hi#hl& "rbani(ed cities>
(7 $ix h"ndred fift& pesos (P6-0.00 a !onth for those in other chartered cities and first-class !"nicipalities> and
(4 6i)e h"ndred fift& pesos (P--0.00 a !onth for those in other !"nicipalities.
Pro)ided% That the e!plo&ers shall re)iew the e!plo&!ent contracts of their ho"sehelpers e)er& three (4 &ears with
the end in )iew of i!pro)in# the ter!s and conditions thereof.
Pro)ided% f"rther% That those ho"sehelpers who are recei)in# at least 9ne tho"sand pesos (P,%000.00 shall be
co)ered b& the $ocial $ec"rit& $&ste! ($$$ and be entitled to all the benefits pro)ided there"nder. (+s a!ended
b& ;ep"blic +ct .o. /6--% +"#"st ,1% ,114.
ARTICLE "44. 'inimum cash wage. The !ini!"! wa#e rates prescribed "nder this Chapter shall be the basic
cash wa#es which shall be paid to the ho"sehelpers in addition to lod#in#% food and !edical attendance.
ARTICLE "4$. Assignment to non-household work5 .o ho"sehelper shall be assi#ned to work in a co!!ercial%
ind"strial or a#ric"lt"ral enterprise at a wa#e or salar& rate lower than that pro)ided for a#ric"lt"ral or non-a#ric"lt"ral
workers as prescribed herein.
ARTICLE "4%. %pportunity for education5 5f the ho"sehelper is "nder the a#e of ei#hteen (,B &ears% the
e!plo&er shall #i)e hi! or her an opport"nit& for at least ele!entar& ed"cation. The cost of ed"cation shall be part of
the ho"sehelpers co!pensation% "nless there is a stip"lation to the contrar&.
ARTICLE "4-. Treatment of house helpers5 The e!plo&er shall treat the ho"se helper in a *"st and h"!ane
!anner. 5n no case shall ph&sical )iolence be "sed "pon the ho"se helper.
ARTICLE "4&. #oard/ lodging/ and medical attendance. The e!plo&er shall f"rnish the ho"se helper% free of
char#e% s"itable and sanitar& li)in# '"arters as well as ade'"ate food and !edical attendance.
ARTICLE "4'. Indemnity for un!ust termination of services. 5f the period of ho"sehold ser)ice is fixed% neither
the e!plo&er nor the ho"se helper !a& ter!inate the contract before the expiration of the ter!% except for a *"st
ca"se. 5f the ho"se helper is "n*"stl& dis!issed% he or she shall be paid the co!pensation alread& earned pl"s that
for fifteen (,- da&s b& wa& of inde!nit&.
5f the ho"se helper lea)es witho"t *"stifiable reason% he or she shall forfeit an& "npaid salar& d"e hi! or her not
exceedin# fifteen (,- da&s.
ARTICLE "$(. ervice of termination notice. 5f the d"ration of the ho"sehold ser)ice is not deter!ined either in
stip"lation or b& the nat"re of the ser)ice% the e!plo&er or the ho"se helper !a& #i)e notice to p"t an end to the
relationship fi)e (- da&s before the intended ter!ination of the ser)ice.
ARTICLE "$". "mployment certification. Cpon the se)erance of the ho"sehold ser)ice relation% the e!plo&er
shall #i)e the ho"sehelper a written state!ent of the nat"re and d"ration of the ser)ice and his or her efficienc& and
cond"ct as ho"sehelper.
ARTICLE "$2. "mployment record. The e!plo&er !a& keep s"ch records as he !a& dee! necessar& to reflect
the act"al ter!s and conditions of e!plo&!ent of his ho"sehelper% which the latter shall a"thenticate b& si#nat"re or
th"!b!ark "pon re'"est of the e!plo&er.
Chapt! IV
EMPLOYMENT OF HOMEWOR)ERS
ARTICLE "$#. Regulation of industrial homeworkers. The e!plo&!ent of ind"strial ho!eworkers and field
personnel shall be re#"lated b& the #o)ern!ent thro"#h the appropriate re#"lations iss"ed b& the $ecretar& of Labor
and @!plo&!ent to ens"re the #eneral welfare and protection of ho!eworkers and field personnel and the ind"stries
e!plo&in# the!.
ARTICLE "$4. Regulations of ecretary of 1abor. The re#"lations or orders to be iss"ed p"rs"ant to this
Chapter shall be desi#ned to ass"re the !ini!"! ter!s and conditions of e!plo&!ent applicable to the ind"strial
ho!eworkers or field personnel in)ol)ed.
ARTICLE "$$. Distribution of homework. 6or p"rposes of this Chapter% the e!plo&er of ho!eworkers incl"des
an& person% nat"ral or artificial who% for his acco"nt or benefit% or on behalf of an& person residin# o"tside the co"ntr&%
directl& or indirectl&% or thro"#h an e!plo&ee% a#ent contractor% s"b-contractor or an& other person=
(, Deli)ers% or ca"ses to be deli)ered% an& #oods% articles or !aterials to be processed or fabricated in or abo"t a
ho!e and thereafter to be ret"rned or to be disposed of or distrib"ted in accordance with his directions> or
(7 $ells an& #oods% articles or !aterials to be processed or fabricated in or abo"t a ho!e and then reb"&s the! after
s"ch processin# or fabrication% either b& hi!self or thro"#h so!e other person.
BOO) FOUR
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
T+t, I
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Chapt! I
MEDICAL AND DENTAL SERVICES
ARTICLE "$%. &irst-aid treatment. @)er& e!plo&er shall keep in his establish!ent s"ch first-aid !edicines and
e'"ip!ent as the nat"re and conditions of work !a& re'"ire% in accordance with s"ch re#"lations as the Depart!ent
of Labor and @!plo&!ent shall prescribe.
The e!plo&er shall take steps for the trainin# of a s"fficient n"!ber of e!plo&ees in first-aid treat!ent.
ARTICLE "$-. "mergency medical and dental services. 5t shall be the d"t& of e)er& e!plo&er to f"rnish his
e!plo&ees in an& localit& with free !edical and dental attendance and facilities consistin# of=
(a The ser)ices of a f"ll-ti!e re#istered n"rse when the n"!ber of e!plo&ees exceeds fift& (-0 b"t not !ore than
two h"ndred (700 except when the e!plo&er does not !aintain ha(ardo"s workplaces% in which case% the ser)ices
of a #rad"ate first-aider shall be pro)ided for the protection of workers% where no re#istered n"rse is a)ailable. The
$ecretar& of Labor and @!plo&!ent shall pro)ide b& appropriate re#"lations% the ser)ices that shall be re'"ired
where the n"!ber of e!plo&ees does not exceed fift& (-0 and shall deter!ine b& appropriate order% ha(ardo"s
workplaces for p"rposes of this +rticle>
(b The ser)ices of a f"ll-ti!e re#istered n"rse% a part-ti!e ph&sician and dentist% and an e!er#enc& clinic% when the
n"!ber of e!plo&ees exceeds two h"ndred (700 b"t not !ore than three h"ndred (400> and
(c The ser)ices of a f"ll-ti!e ph&sician% dentist and a f"ll-ti!e re#istered n"rse as well as a dental clinic and an
infir!ar& or e!er#enc& hospital with one bed capacit& for e)er& one h"ndred (,00 e!plo&ees when the n"!ber of
e!plo&ees exceeds three h"ndred (400.
5n cases of ha(ardo"s workplaces% no e!plo&er shall en#a#e the ser)ices of a ph&sician or a dentist who cannot sta&
in the pre!ises of the establish!ent for at least two (7 ho"rs% in the case of those en#a#ed on part-ti!e basis% and
not less than ei#ht (B ho"rs% in the case of those e!plo&ed on f"ll-ti!e basis. ?here the "ndertakin# is non-
ha(ardo"s in nat"re% the ph&sician and dentist !a& be en#a#ed on retainer basis% s"b*ect to s"ch re#"lations as the
$ecretar& of Labor and @!plo&!ent !a& prescribe to ins"re i!!ediate a)ailabilit& of !edical and dental treat!ent
and attendance in case of e!er#enc&. (+s a!ended b& Presidential Decree .9. -/0-+% $ection 76.
ARTICLE "$&. 2hen emergency hospital not re*uired. The re'"ire!ent for an e!er#enc& hospital or dental
clinic shall not be applicable in case there is a hospital or dental clinic which is accessible fro! the e!plo&ers
establish!ent and he !akes arran#e!ent for the reser)ation therein of the necessar& beds and dental facilities for
the "se of his e!plo&ees.
ARTICLE "$'. 3ealth program. The ph&sician en#a#ed b& an e!plo&er shall% in addition to his d"ties "nder this
Chapter% de)elop and i!ple!ent a co!prehensi)e occ"pational health pro#ra! for the benefit of the e!plo&ees of
his e!plo&er.
ARTICLE "%(. 0ualifications of health personnel. The ph&sicians% dentists and n"rses e!plo&ed b& e!plo&ers
p"rs"ant to this Chapter shall ha)e the necessar& trainin# in ind"strial !edicine and occ"pational safet& and health.
The $ecretar& of Labor and @!plo&!ent% in cons"ltation with ind"strial% !edical% and occ"pational safet& and health
associations% shall establish the '"alifications% criteria and conditions of e!plo&!ent of s"ch health personnel.
ARTICLE "%". Assistance of employer. 5t shall be the d"t& of an& e!plo&er to pro)ide all the necessar&
assistance to ens"re the ade'"ate and i!!ediate !edical and dental attendance and treat!ent to an in*"red or sick
e!plo&ee in case of e!er#enc&.
Chapt! II
OCCUPATIONAL HEALTH AND SAFETY
ARTICLE "%2. afety and health standards. The $ecretar& of Labor and @!plo&!ent shall% b& appropriate
orders% set and enforce !andator& occ"pational safet& and healthstandards to eli!inate or red"ce occ"pational
safet& and health ha(ards in all workplaces and instit"te new% and "pdate existin#% pro#ra!s to ens"resafe and
healthf"l workin# conditions in all places of e!plo&!ent.
ARTICLE "%#. Research. 5t shall be the responsibilit& of the Depart!ent of Labor and @!plo&!ent to cond"ct
contin"in# st"dies and research to de)elop inno)ati)e !ethods%techni'"es and approaches for dealin# with
occ"pational safet& and health proble!s> to disco)er latent diseases b& establishin# ca"sal connections between
diseases and work in en)iron!ental conditions> and to de)elop !edical criteria which will ass"re insofar as
practicable that no e!plo&ee will s"ffer i!pair!ent or di!in"tion in health% f"nctional capacit&% or life expectanc& as a
res"lt of his work and workin# conditions.
ARTICLE "%4. Training programs. The Depart!ent of Labor and @!plo&!ent shall de)elop and
i!ple!enttrainin# pro#ra!s to increase the n"!ber and co!petence of personnel in the field of occ"pational safet&
and ind"strial health.
ARTICLE "%$. Administration of safety and health laws. (a The Depart!ent of Labor and @!plo&!ent shall be
solel& responsible for the ad!inistration and enforce!ent of occ"pational safet& and health laws% re#"lations and
standards in all establish!ents and workplaces where)er the& !a& be located> howe)er% charteredcities !a& be
allowed to cond"ct ind"strial safet& inspections of establish!ents within their respecti)e *"risdictions where the& ha)e
ade'"ate facilities and co!petent personnel for the p"rpose as deter!ined b& the Depart!ent of Labor and
@!plo&!ent and s"b*ect to national standards established b& the latter.
(b The $ecretar& of Labor and @!plo&!ent !a&% thro"#h appropriate re#"lations% collect reasonable fees for the
inspection of stea! boilers% press"re )essels and pipin#s and electrical installations% the test and appro)al for safe
"se of !aterials% e'"ip!ent and other safet& de)ices and the appro)al of plans for s"ch !aterials% e'"ip!ent and
de)ices. The fee so collected shall be deposited in the national treas"r& to the credit of the occ"pational safet& and
health f"nd and shall be expended
excl"si)el& for the ad!inistration and enforce!ent of safet& and other labor laws ad!inistered b& the Depart!ent of
Labor and @!plo&!ent.
T+t, II
EMPLOYEES COMPENSATION AND STATE INSURANCE FUND
Chapt! I
POLICY AND DEFINITIONS
ARTICLE "%%. $olicy. The $tate shall pro!ote and de)elop a tax-exe!pt e!plo&ees co!pensation pro#ra!
whereb& e!plo&ees and their dependents% in the e)ent of work-connected disabilit& or death% !a& pro!ptl& sec"re
ade'"ate inco!e benefit and !edical related benefits.
ARTICLE "%-. Definition of terms. +s "sed in this Title% "nless the context indicates otherwise=
(a Code !eans the Labor Code of the Philippines instit"ted "nder Presidential Decree ."!bered fo"r
h"ndred fort&-two% as a!ended.
(b Commission !eans the @!plo&ees Co!pensation Co!!ission created "nder this Title.
(c SSS !eans the $ocial $ec"rit& $&ste! created "nder ;ep"blic +ct ."!bered @le)en h"ndred sixt&-one% as
a!ended.
(d GSIS !eans the <o)ern!ent $er)ice 5ns"rance $&ste! created "nder Co!!onwealth +ct ."!bered 9ne
h"ndred ei#ht&-six% as a!ended.
(e System !eans the $$$ or <$5$% as the case !a& be.
(f Employer !eans an& person% nat"ral or *"ridical% e!plo&in# the ser)ices of the e!plo&ee.
(# @!plo&ee !eans an& person co!p"lsoril& co)ered b& the <$5$ "nder Co!!onwealth +ct ."!bered 9ne
h"ndred ei#ht&-six% as a!ended% incl"din# the !e!bers of the +r!ed 6orces of the Philippines% and an& person
e!plo&ed as cas"al% e!er#enc&% te!porar&% s"bstit"te or contract"al% or an& person co!p"lsoril& co)ered b& the
$$$ "nder ;ep"blic +ct ."!bered @le)en h"ndred sixt&-one% as a!ended.
(h Person !eans an& indi)id"al% partnership% fir!% association% tr"st% corporation or le#al representati)e thereof.
(i Dependent !eans the le#iti!ate% le#iti!ated or le#all& adopted or acknowled#ed nat"ral child who is "n!arried%
not #ainf"ll& e!plo&ed% and not o)er twent&-one (7, &ears of a#e or o)er twent&-one (7, &ears of a#e pro)ided he is
incapacitated and incapable of self-s"pport d"e to a ph&sical or !ental defect which is con#enital or ac'"ired d"rin#
!inorit&> the le#iti!ate spo"se li)in# with the e!plo&ee and the parents of said e!plo&ee wholl& dependent "pon hi!
for re#"lar s"pport.
(* Beneficiaries !eans the dependent spo"se "ntil he8she re!arries and dependent children% who are the pri!ar&
beneficiaries. 5n their absence% the dependent parents and s"b*ect to the restrictions i!posed on dependent children%
the ille#iti!ate children and le#iti!ate descendants% who are the secondar& beneficiaries= Pro)ided% That the
dependent acknowled#ed nat"ral child shall be considered as a pri!ar& beneficiar& when there are no other
dependent children who are '"alified and eli#ible for !onthl& inco!e benefit.
(k Injury !eans an& har!f"l chan#e in the h"!an or#anis! fro! an& accident arisin# o"t of and in the co"rse of
the e!plo&!ent.
(l Sickness !eans an& illness definitel& accepted as an occ"pational disease listed b& the Co!!ission% or an&
illness ca"sed b& e!plo&!ent s"b*ect to proof that the risk of contractin# the sa!e is increased b& workin#
conditions. 6or this p"rpose% the Co!!ission is e!powered to deter!ine and appro)e occ"pational diseases and
work-related illnesses that !a& be considered co!pensable based on pec"liar ha(ards of e!plo&!ent.
(! Death !eans loss of life res"ltin# fro! in*"r& or sickness.
(n Disability !eans loss or i!pair!ent of a ph&sical or !ental f"nction res"ltin# fro! in*"r& or sickness.
(o Compensation !eans all pa&!ents !ade "nder this Title for inco!e benefits and !edical or related benefits.
(p Income benefit !eans all pa&!ents !ade "nder this Title to the pro)iders of !edical care% rehabilitation ser)ices
and hospital care.
(' Medical benefit !eans all pa&!ents !ade "nder this Title to the pro)iders of !edical care% rehabilitation
ser)ices and hospital care.
(r elated benefit !eans all pa&!ents !ade "nder this Title for appliances and s"pplies.
(s !ppliances !eans cr"tches% artificial aids and other si!ilar de)ices.
(t Supplies !eans !edicine and other !edical% dental or s"r#ical ite!s.
(" "ospital !eans an& !edical facilit&% #o)ern!ent or pri)ate% a"thori(ed b& law% an acti)e !e!ber in #ood
standin# of the Philippine Fospital +ssociation and accredited b& the Co!!ission.
() Physician !eans an& doctor of !edicine d"l& licensed to practice in the Philippines% an acti)e !e!ber in #ood
standin# of the Philippine Aedical +ssociation and accredited b& the Co!!ission.
(w #a$es or $alar&% insofar as the& refer to the co!p"tation of benefits defined in ;ep"blic +ct .o. ,,6,% as
a!ended% for $$$ and Presidential Decree .o. ,,26% as a!ended% for <$5$% respecti)el&% except that part in excess
of Three Tho"sand Pesos.
(x Monthly salary credit !eans the wa#e or salar& base for contrib"tions as pro)ided in ;ep"blic +ct ."!bered
@le)en h"ndred sixt&-one% as a!ended% or the wa#es or salar&.
(& !%era$e monthly salary credit in the case of the $$$ !eans the res"lt obtained b& di)idin# the s"! of the
!onthl& salar& credits in the sixt&-!onth period i!!ediatel& followin# the se!ester of death or per!anent disabilit&
b& sixt& (60% except where the !onth of death or per!anent disabilit& falls within ei#hteen (,B calendar !onths fro!
the !onth of co)era#e% in which case% it is the res"lt obtained b& di)idin# the s"! of all !onthl& salar& credits paid
prior to the !onth of contin#enc& b& the total n"!ber of calendar !onths of co)era#e in the sa!e period.
(( !%era$e daily salary credit in the case of the $$$ !eans the res"lt obtained b& di)idin# the s"! of the six (6
hi#hest !onthl& salar& credits in the twel)e-!onth period i!!ediatel& precedin# the se!ester of sickness or in*"r& b&
one h"ndred ei#ht& (,B0% except where the !onth of in*"r& falls within twel)e (,7 calendar !onths fro! the first
!onth of co)era#e% in which case it is the res"lt obtained b& di)idin# the s"! of all !onthl& salar& credits b& thirt&
(40 ti!es the n"!ber of calendar !onths of co)era#e in the period.
5n the case of the <$5$% the a)era#e dail& salar& credit shall be the act"al dail& salar& or wa#e% or the !onthl& salar&
or wa#e di)ided b& the act"al n"!ber of workin# da&s of the !onth of contin#enc&.
(aa &uarter !eans a period of three (4 consec"ti)e !onths endin# on the last da&s of Aarch% G"ne% $epte!ber
and Dece!ber.
(bb Semester !eans a period of two consec"ti)e '"arters endin# in the '"arter of death% per!anent disabilit&%
in*"r& or sickness.
(cc eplacement ratio The s"! of twent& percent and the '"otient obtained b& di)idin# three h"ndred b& the s"!
of three h"ndred fort& and the a)era#e !onthl& salar& credit.
(dd Credited years of ser%ice 6or a !e!ber co)ered prior to Gan"ar&% ,1/-% nineteen h"ndred se)ent&-fi)e !in"s
the calendar &ear of co)era#e% pl"s the n"!ber of calendar &ears in which six or !ore contrib"tions ha)e been paid
fro! Gan"ar&% ,1/- "p to the calendar &ear containin# the se!ester prior to the contin#enc&. 6or a !e!ber co)ered
on or after Gan"ar&% ,1/-% the n"!ber of calendar &ears in which six or !ore contrib"tions ha)e been paid fro! the
&ear of co)era#e "p to the calendar &ear containin# the se!ester prior to the contin#enc&.
(ee Monthly income benefit !eans the a!o"nt e'"i)alent to one h"ndred fifteen percent of the s"! of the a)era#e
!onthl& salar& credit !"ltiplied b& the replace!ent ratio% and one and a half percent of the a)era#e !onthl& salar&
credit for each credited &ear of ser)ice in excess of ten &ears= Pro)ided% That the !onthl& inco!e benefit shall in no
case be less than two h"ndred fift& pesos.
Chapt! II
COVERAGE AND LIABILITY
ART. "%&. Compulsory coverage. - Co)era#e in the $tate 5ns"rance 6"nd shall be co!p"lsor& "pon all e!plo&ers
and their e!plo&ees not o)er sixt& (60 &ears of a#e= Pro)ided% That an e!plo&ee who is o)er (60 &ears of a#e and
pa&in# contrib"tions to '"alif& for the retire!ent or life ins"rance benefit ad!inistered b& the $&ste! shall be s"b*ect
to co!p"lsor& co)era#e.
ARTICLE. "%'. &oreign employment. The Co!!ission shall ens"re ade'"ate co)era#e of 6ilipino e!plo&ees
e!plo&ed abroad% s"b*ect to re#"lations as it !a& prescribe.
ARTICLE. "-(. "ffective date of coverage. Co!p"lsor& co)era#e of the e!plo&er d"rin# the effecti)it& of this
Title shall take effect on the first da& of his operation% and that of the e!plo&ee% on the date of his e!plo&!ent.
ARTICLE. "-". Registration. @ach e!plo&er and his e!plo&ees shall re#ister with the $&ste! in accordance with
its re#"lations.
ARTICLE. "-2. 1imitation of liability. The $tate 5ns"rance 6"nd shall be liable for co!pensation to the e!plo&ee
or his dependents% except when the disabilit& or death was occasioned b& the e!plo&ees intoxication% willf"l intention
to in*"re or kill hi!self or another% notorio"s ne#li#ence% or otherwise pro)ided "nder this Title.
ARTICLE. "-#. "(tent of liability. Cnless otherwise pro)ided% the liabilit& of the $tate 5ns"rance 6"nd "nder this
Title shall be excl"si)e and in place of all other liabilities of the e!plo&er to the e!plo&ee% his dependents or an&one
otherwise entitled to recei)e da!a#es on behalf of the e!plo&ee or his dependents. The pa&!ent of co!pensation
"nder this Title shall not bar the reco)er& of benefits as pro)ided for in $ection 611 of the ;e)ised +d!inistrati)e
Code% ;ep"blic +ct ."!bered @le)en h"ndred sixt&-one% as a!ended% ;ep"blic +ct ."!bered 6ort&-ei#ht h"ndred
sixt&-fo"r as a!ended% and other laws whose benefits are ad!inistered b& the $&ste! or b& other a#encies of the
#o)ern!ent. (+s a!ended b& Presidential Decree .o. ,17,.
ARTICLE. "-4. 1iability of third party+ies. (a ?hen the disabilit& or death is ca"sed b& circ"!stances creatin# a
le#al liabilit& a#ainst a third part&% the disabled e!plo&ee or the dependents% in case of his death% shall be paid b& the
$&ste! "nder this Title. 5n case benefit is paid "nder this Title% the $&ste! shall be s"bro#ated to the ri#hts of the
disabled e!plo&ee or the dependents% in case of his death% in accordance with the #eneral law.
(b ?here the $&ste! reco)ers fro! s"ch third part& da!a#es in excess of those paid or allowed "nder this Title%
s"ch excess shall be deli)ered to the disabled e!plo&ee or other persons entitled thereto% after ded"ctin# the cost of
proceedin#s and expenses of the $&ste!.
ARTICLE. "-$. Deprivation of the benefits. @xcept as otherwise pro)ided "nder this Title% no contract% re#"lation
or de)ice whatsoe)er shall operate to depri)e the e!plo&ee or his dependents of an& part of the inco!e benefits and
!edical or related ser)ices #ranted "nder this Title. @xistin# !edical ser)ices bein# pro)ided b& the e!plo&er shall
be !aintained and contin"ed to be en*o&ed b& their e!plo&ees.
Chapt! III
ADMINISTRATION
ARTICLE. "-%. "mployees Compensation Commission. (a To initiate% rationali(e% and coordinate the policies of
the e!plo&ees co!pensation pro#ra!% the @!plo&ees Co!pensation Co!!ission is hereb& created to be
co!posed of fi)e ex-officio !e!bers% na!el&= the $ecretar& of Labor and @!plo&!ent as Chair!an% the <$5$
<eneral Aana#er% the $$$ +d!inistrator% the Chair!an of the Philippine Aedical Care Co!!ission% and the
@xec"ti)e Director of the @CC $ecretariat% and two appointi)e !e!bers% one of who! shall represent the e!plo&ees
and the other% the e!plo&ers% to be appointed b& the President of the Philippines for a ter! of six &ears. The
appointi)e !e!ber shall ha)e at least fi)e &ears experience in work!ens co!pensation or social sec"rit& pro#ra!s.
+ll )acancies shall be filled for the "nexpired ter! onl&. (+s a!ended b& $ection ,1 IcJ% @xec"ti)e 9rder .o. ,76.
(b The Dice Chair!an of the Co!!ission shall be alternated each &ear between the <$5$ <eneral Aana#er and the
$$$ +d!inistrator. The presence of fo"r !e!bers shall constit"te a '"or"!. @ach !e!ber shall recei)e a per die!
of two h"ndred pesos for e)er& !eetin# that is act"all& attended b& hi!% excl"si)e of act"al% ordinar& and necessar&
tra)el and representation expenses. 5n his absence% an& !e!ber !a& desi#nate an official of the instit"tion he ser)es
on f"ll-ti!e basis as his representati)e to act in his behalf. (+s a!ended b& $ection 7% Presidential Decree .o. ,46B.
(c The #eneral cond"ct of the operations and !ana#e!ent f"nctions of the <$5$ or $$$ "nder this Title shall be
)ested in its respecti)e chief exec"ti)e officers% who shall be i!!ediatel& responsible for carr&in# o"t the policies of
the Co!!ission.
(d The Co!!ission shall ha)e the stat"s and cate#or& of a #o)ern!ent corporation% and it is hereb& dee!ed
attached to the Depart!ent of Labor and @!plo&!ent for polic& coordination and #"idance. (+s a!ended b& $ection
7% Presidential Decree .o. ,46B.
ARTICLE. "--. $owers and duties. The Co!!ission shall ha)e the followin# powers and d"ties=
(a To assess and fix a rate of contrib"tion fro! all e!plo&ers>
(b To deter!ine the rate of contrib"tion pa&able b& an e!plo&er whose records show a hi#h fre'"enc& of work
accidents or occ"pational diseases d"e to fail"re b& the said e!plo&er to obser)e ade'"ate safet& !eas"res>
(c To appro)e r"les and re#"lations #o)ernin# the processin# of clai!s and the settle!ent of disp"tes arisin#
therefro! as prescribed b& the $&ste!>
(d To initiate policies and pro#ra!s toward ade'"ate occ"pational health and safet& and accident pre)ention in the
workin# en)iron!ent% rehabilitation other than those pro)ided for "nder+rticle ,10 hereof% and other related pro#ra!s
and acti)ities% and to appropriate f"nds therefor> (+s a!ended b& $ection 4% Presidential Decree .o. ,46B.
(e To !ake the necessar& act"arial st"dies and calc"lations concernin# the #rant of constant help and inco!e
benefits for per!anent disabilit& or death and the rationali(ation of the benefits for per!anent disabilit& and death
"nder the Title with benefits pa&able b& the $&ste! for si!ilar contin#encies= Pro)ided% That the Co!!ission !a&
"p#rade benefits and add new ones s"b*ect to appro)al of the President= and Pro)ided% f"rther% That the act"arial
stabilit& of the $tate 5ns"rance 6"nd shall be #"aranteed= Pro)ided% finall&% That s"ch increases in benefits shall not
re'"ire an& increases in contrib"tion% except as pro)ided for in para#raph (b hereof> (+s a!ended b& $ection 4%
Presidential Decree .o. ,62,.
(f To appoint the personnel of its staff% s"b*ect to ci)il ser)ice law and r"les% b"t exe!pt fro! ?+PC9 law and
re#"lations>
(# To adopt ann"all& a b"d#et of expendit"res of the Co!!ission and its staff char#eable a#ainst the $tate
5ns"rance 6"nd= Pro)ided% That the $$$ and <$5$ shall ad)ance on a '"arterl& basis% the re!ittances of allot!ent of
the loadin# f"nd for the Co!!issions operational expenses based on its ann"al b"d#et as d"l& appro)ed b& the
Depart!ent of 3"d#et and Aana#e!ent> (+s a!ended b& $ection 4% Presidential Decree .o. ,17,.
(h To ha)e the power to ad!inister oath and affir!ation% and to iss"e s"bpoena and s"bpoena d"ces tec"! in
connection with an& '"estion or iss"e arisin# fro! appealed cases "nder this Title>
(i To s"e and be s"ed in co"rt>
(* To ac'"ire propert&% real or personal% which !a& be necessar& or expedient for the attain!ent of the p"rposes of
this Title>
(k To enter into a#ree!ents or contracts for s"ch ser)ices and as !a& be needed for the proper% efficient and stable
ad!inistration of the pro#ra!>
(l To perfor! s"ch other acts as it !a& dee! appropriate for the attain!ent of the p"rposes of the Co!!ission and
proper enforce!ent of the pro)isions of this Title. (+s a!ended b& $ection ,B% Presidential Decree .o. B-0.
ARTICLE. "-&. 'anagement of funds. +ll re)en"es collected b& the $&ste! "nder this Title shall be deposited%
in)ested% ad!inistered and disb"rsed in the sa!e !anner and "nder the sa!e conditions% re'"ire!ents and
safe#"ards as pro)ided b& ;ep"blic +ct ."!bered ele)en h"ndred sixt&-one% as a!ended% with re#ard to s"ch other
f"nds as are there"nder bein# paid to or collected b& the $$$ and <$5$% respecti)el&= Pro)ided% That the
Co!!ission% $$$ and <$5$ !a& disb"rse each &ear not !ore than twel)e percent of the contrib"tion and
in)est!ent earnin#s collected for operational expenses% incl"din# occ"pational health and safet& pro#ra!s% incidental
to the carr&in# o"t of this Title.
ARTICLE. "-'. Investment of funds. Pro)isions of existin# laws to the contrar& notwithstandin#% all re)en"es as
are not needed to !eet c"rrent operational expenses "nder this Title shall be acc"!"lated in a f"nd to be known as
the $tate 5ns"rance 6"nd% which shall be "sed excl"si)el& for pa&!ent of the benefits "nder this Title% and no a!o"nt
thereof shall be "sed for an& other p"rpose. +ll a!o"nts accr"in# to the $tate 5ns"rance 6"nd% which is hereb&
established in the $$$ and <$5$% respecti)el&% shall be deposited with an& a"thori(ed depositor& bank appro)ed b&
the Co!!ission% or in)ested with d"e and pr"dent re#ard for the li'"idit& needs of the $&ste!. (+s a!ended b&
$ection 2% Presidential Decree .o. ,46B.
ARTICLE. "&(. ettlement of claims. The $&ste! shall ha)e ori#inal and excl"si)e *"risdiction to settle an&
disp"te arisin# fro! this Title with respect to co)era#e% entitle!ent to benefits% collection and pa&!ent of
contrib"tions and penalties thereon% or an& other !atter related thereto% s"b*ect to appeal to the Co!!ission% which
shall decide appealed cases within twent& (70 workin# da&s fro! the s"b!ission of the e)idence.
ARTICLE. "&". Review. Decisions% orders or resol"tions of the Co!!ission !a& be re)iewed on certiorari b& the
$"pre!e Co"rt on '"estion of law "pon petition of an a##rie)ed part& within ten (,0 da&s fro! notice thereof.
ARTICLE. "&2. "nforcement of decisions. (a +n& decision% order or resol"tion of the Co!!ission shall beco!e
final and exec"tor& if no appeal is taken therefro! within ten (,0 da&s fro! notice thereof. +ll awards #ranted b& the
Co!!issionin cases appealed fro! decisions of the $&ste! shall be effected within fifteen da&s fro! receipt of
notice.
(b 5n all other cases% decisions% orders and resol"tions of the Co!!ission which ha)e beco!e final and exec"tor&
shall be enforced and exec"ted in the sa!e !anner as decisions of the Co"rt of 6irst 5nstance% and the Co!!ission
shall ha)e the power to iss"e to the cit& or pro)incial sheriff or to the sheriff who! it !a& appoint% s"ch writs of
exec"tion as !a& be necessar& for the enforce!ent of s"ch decisions% orders or resol"tions% and an& person who
shall fail or ref"se to co!pl& therewith shall% "pon application b& the Co!!ission% be p"nished b& the proper co"rt for
conte!pt.
Chapt! IV
CONTRIBUTIONS
ARTICLE. "&#. "mployers contributions. (a Cnder s"ch re#"lations as the $&ste! !a& prescribe% be#innin# as
of the last da& of the !onth when an e!plo&ees co!p"lsor& co)era#e takes effect and e)er& !onth thereafter d"rin#
his e!plo&!ent% his e!plo&er shall prepare to re!it to the $&ste! a contrib"tion e'"i)alent to one percent of his
!onthl& salar& credit.
(b The rate of contrib"tion shall be re)iewed periodicall& and s"b*ect to the li!itations herein pro)ided% !a& be
re)ised as the experience in risk% cost of ad!inistration and act"al or anticipated as well as "nexpected losses% !a&
re'"ire.
(c Contrib"tions "nder this Title shall be paid in their entiret& b& the e!plo&er and an& contract or de)ice for the
ded"ctions of an& portion thereof fro! the wa#es or salaries of the e!plo&ees shall be n"ll and )oid.
(d ?hen a co)ered e!plo&ee dies% beco!es disabled or is separated fro! e!plo&!ent% his e!plo&ers obli#ation to
pa& the !onthl& contrib"tion arisin# fro! that e!plo&!ent shall cease at the end of the !onth of contin#enc& and
d"rin# s"ch !onths that he is not recei)in# wa#es or salar&.
ARTICLE. "&4. 6overnment guarantee. The ;ep"blic of the Philippines #"arantees the benefits prescribed "nder
this Title% and accepts #eneral responsibilit& for the sol)enc& of the $tate 5ns"rance 6"nd. 5n case of an& deficienc&%
the sa!e shall be co)ered b& s"pple!ental appropriations fro! the national #o)ern!ent.
Chapt! V
MEDICAL BENEFITS
ARTICLE. "&$. 'edical services. 5!!ediatel& after an e!plo&ee contracts sickness or s"stains an in*"r&% he shall
be pro)ided b& the $&ste! d"rin# the s"bse'"ent period of his disabilit& with s"ch !edical ser)ices and appliances
as the nat"re of his sickness or in*"r& and pro#ress of his reco)er& !a& re'"ire% s"b*ect to the expense li!itation
prescribed b& the Co!!ission.
ARTICLE. "&%. 1iability. - The $&ste! shall ha)e the a"thorit& to choose or order a chan#e of ph&sician% hospital or
rehabilitation facilit& for the e!plo&ee% and shall not be liable for co!pensation for an& a##ra)ation of the e!plo&ees
in*"r& or sickness res"ltin# fro! "na"thori(ed chan#es b& the e!plo&ee of !edical ser)ices% appliances% s"pplies%
hospitals% rehabilitation facilities or ph&sicians.
ARTICLE. "&-. Attending physician. +n& ph&sician attendin# an in*"red or sick e!plo&ee shall co!pl& with all the
re#"lations of the $&ste! and s"b!it reports in prescribed for!s at s"ch ti!e as !a& be re'"ired concernin# his
condition or treat!ent.+ll !edical infor!ation rele)ant to the p+;T5CL@ic"lar in*"r& or sickness shall% on de!and% be
!ade a)ailable to the e!plo&ee or the $&ste!. .o infor!ation de)eloped in connection with treat!ent or
exa!ination for which co!pensation is so"#ht shall be considered as pri)ile#ed co!!"nication.
ARTICLE. "&&. Refusal of e(amination or treatment. 5f the e!plo&ee "nreasonabl& ref"ses to s"b!it to !edical
exa!ination or treat!ent% the $&ste! shall stop the pa&!ent of f"rther co!pensation d"rin# s"ch ti!e as s"ch
ref"sal contin"es. ?hat constit"tes an "nreasonable ref"sal shall be deter!ined b& the $&ste! which !a&% on its
own initiati)e% deter!ine the necessit&% character and s"fficienc& of an& !edical ser)ices f"rnished or to be f"rnished.
ARTICLE. "&'. &ees and other charges. +ll fees and other char#es for hospital ser)ices% !edical care and
appliances% incl"din# professional fees% shall not be hi#her than those pre)ailin# in wards of hospitals for si!ilar
ser)ices to in*"red or sick persons in #eneral and shall be s"b*ect to the re#"lations of the Co!!ission. Professional
fees shall onl& be appreciabl& hi#her than those prescribed "nder ;ep"blic +ct ."!bered sixt&-one h"ndred ele)en%
as a!ended% otherwise known as the Philippine Aedical Care +ct of ,161.
ARTICLE. "'(. Rehabilitation services. (a The $&ste! shall% as soon as practicable% establish a contin"in#
pro#ra!% for the rehabilitation of in*"red and handicapped e!plo&ees who shall be entitled to rehabilitation ser)ices%
which shall consist of !edical% s"r#ical or hospital treat!ent% incl"din# appliances if the& ha)e been handicapped b&
the in*"r&% to help the! beco!e ph&sicall& independent.
(b +s soon as practicable% the $&ste! shall establish centers e'"ipped and staffed to pro)ide a balanced pro#ra! of
re!edial treat!ent% )ocational assess!ent and preparation desi#ned to !eet the indi)id"al needs of each
handicapped e!plo&ee to restore hi! to s"itable e!plo&!ent% incl"din# assistance as !a& be within its reso"rces% to
help each rehabilitee to de)elop his !ental% )ocational or social potential.
Chapt! VI
DISABILITY BENEFITS
ARTICLE. "'". Temporary total disability. (a Cnder s"ch re#"lations as the Co!!ission !a& appro)e% an&
e!plo&ee "nder this Title who s"stains an in*"r& or contracts sickness res"ltin# in te!porar& total disabilit& shall% for
each da& of s"ch a disabilit& or fraction thereof% be paid b& the $&ste! an inco!e benefit e'"i)alent to ninet& percent
of his a)era#e dail& salar& credit% s"b*ect to the followin# conditions= the dail& inco!e benefit shall not be less than
Ten Pesos nor !ore than .inet& Pesos% nor paid for a contin"o"s period lon#er than one h"ndred twent& da&s%
except as otherwise pro)ided for in the ;"les% and the $&ste! shall be notified of the in*"r& or sickness. (+s a!ended
b& $ection 7% @xec"ti)e 9rder .o. ,/1.
(b The pa&!ent of s"ch inco!e benefit shall be in accordance with the re#"lations of the Co!!ission. (+s a!ended
b& $ection ,1% Presidential Decree .o. B-0.
ARTICLE. "'2. $ermanent total disability. (a Cnder s"ch re#"lations as the Co!!ission !a& appro)e% an&
e!plo&ee "nder this Title who contracts sickness or s"stains an in*"r& res"ltin# in his per!anent total disabilit& shall%
for each !onth "ntil his death% be paid b& the $&ste! d"rin# s"ch a disabilit&% an a!o"nt e'"i)alent to the !onthl&
inco!e benefit% pl"s ten percent thereof for each dependent child% b"t not exceedin# fi)e% be#innin# with the
&o"n#est and witho"t s"bstit"tion= Pro)ided% That the !onthl& inco!e benefit shall be the new a!o"nt of the !onthl&
benefit for all co)ered pensioners% effecti)e "pon appro)al of this Decree.
(b The !onthl& inco!e benefit shall be #"aranteed for fi)e &ears% and shall be s"spended if the e!plo&ee is #ainf"ll&
e!plo&ed% or reco)ers fro! his per!anent total disabilit&% or fails to present hi!self for exa!ination at least once a
&ear "pon notice b& the $&ste!% except as otherwise pro)ided for in other laws% decrees% orders or Letters of
5nstr"ctions. (+s a!ended b& $ection -% Presidential Decree .o. ,62,.
(c The followin# disabilities shall be dee!ed total and per!anent=
(, Te!porar& total disabilit& lastin# contin"o"sl& for !ore than one h"ndred twent& da&s% except as otherwise
pro)ided for in the ;"les>
(7 Co!plete loss of si#ht of both e&es>
(4 Loss of two li!bs at or abo)e the ankle or wrist>
(2 Per!anent co!plete paral&sis of two li!bs>
(- 3rain in*"r& res"ltin# in inc"rable i!becilit& or insanit&> and
(6 $"ch cases as deter!ined b& the Aedical Director of the $&ste! and appro)ed b& the Co!!ission.
(d The n"!ber of !onths of paid co)era#e shall be defined and approxi!ated b& a for!"la to be appro)ed b& the
Co!!ission.
ARTICLE. "'#. $ermanent partial disability. (a Cnder s"ch re#"lations as the Co!!ission !a& appro)e% an&
e!plo&ee "nder this Title who contracts sickness or s"stains an in*"r& res"ltin# in per!anent partial disabilit& shall%
for each !onth not exceedin# the period desi#nated herein% be paid b& the $&ste! d"rin# s"ch a disabilit& an inco!e
benefit for per!anent total disabilit&.
(b The benefit shall be paid for not !ore than the period desi#nated in the followin# sched"les=
Co!plete and per!anent .o. of Aonths
loss of the "se of
9ne th"!b ,0
9ne index fin#er B
9ne !iddle fin#er 6
9ne rin# fin#er -
9ne little fin#er 4
9ne bi# toe 6
9ne toe 4
9ne ar! -0
9ne hand 41
9ne foot 4,
9ne le# 26
9ne ear ,0
3oth ears 70
Fearin# of one ear ,0
Fearin# of both ears -0
$i#ht of one e&e 7-
(c + 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 ar!. + loss of an ankle shall be considered as loss of a foot% and a loss of a knee shall be considered as a loss of
the le#. + loss of !ore than one *oint shall be considered as a loss of one-half of the whole fin#er or toe= Pro)ided%
That s"ch a loss shall be either the f"nctional loss of the "se or ph&sical loss of the !e!ber. (+s a!ended b&
$ection /% Presidential Decree .o. ,46B.
(d 5n case of per!anent partial disabilit& less than the total loss of the !e!ber specified in the precedin# para#raph%
the sa!e !onthl& inco!e benefit shall be paid for a portion of the period established for the total loss of the !e!ber
in accordance with the proportion that the p+;T5CL@ial loss bears to the total loss. 5f the res"lt is a deci!al fraction%
the sa!e shall be ro"nded off to the next hi#her inte#er.
(e 5n cases of si!"ltaneo"s loss of !ore than one !e!ber or a part thereof as specified in this +rticle% the sa!e
!onthl& inco!e benefit shall be paid for a period e'"i)alent to the s"! of the periods established for the loss of the
!e!ber or the part thereof. 5f the res"lt is a deci!al fraction% the sa!e shall be ro"nded off to the next hi#her inte#er.
(f 5n cases of in*"ries or illnesses res"ltin# in a per!anent partial disabilit& not listed in the precedin#
sched"le% the benefit shall be an inco!e benefit e'"i)alent to the percenta#e of the per!anent loss of the capacit& to
work. (+s added b& $ection /% Presidential Decree .o. ,46B.
(# Cnder s"ch re#"lations as the Co!!ission !a& appro)e% the inco!e benefit pa&able in case of per!anent partial
disabilit& !a& be paid in !onthl& pension or in l"!p s"! if the period co)ered does not exceed one &ear. (+s added
b& $ection /% Presidential Decree .o. ,46B.
Chapt! VII
DEATH BENEFITS
ARTICLE. "'4. Death. - (a Cnder s"ch re#"lations as the Co!!ission !a& appro)e% the $&ste! shall pa& to the
pri!ar& beneficiaries "pon the death of the co)ered e!plo&ee "nder this Title% an a!o"nt e'"i)alent to his !onthl&
inco!e benefit% pl"s ten percent thereof for each dependent child% b"t not exceedin# fi)e% be#innin# with the
&o"n#est and witho"t s"bstit"tion% except as pro)ided for in para#raph (* of +rticle ,6/ hereof= Pro)ided% howe)er%
That the !onthl& inco!e benefit shall be #"aranteed for fi)e &ears= Pro)ided% f"rther% That if he has no pri!ar&
beneficiar&% the $&ste! shall pa& to his secondar& beneficiaries the !onthl& inco!e benefit b"t not to exceed sixt&
!onths= Pro)ided% finall&% That the !ini!"! death benefit shall not be less than fifteen tho"sand pesos. (+s
a!ended b& $ection 2% Presidential Decree .o. ,17,.
(b Cnder s"ch re#"lations as the Co!!ission !a& appro)e% the $&ste! shall pa& to the pri!ar& beneficiaries "pon
the death of a co)ered e!plo&ee who is "nder per!anent total disabilit& "nder this Title% ei#ht& percent of the
!onthl& inco!e benefit and his dependents to the dependents pension= Pro)ided% That the !arria#e !"st ha)e been
)alidl& s"bsistin# at the ti!e of disabilit&= Pro)ided% f"rther% That if he has no pri!ar& beneficiar&% the $&ste! shall
pa& to his secondar& beneficiaries the !onthl& pension excl"din# the dependents pension% of the re!ainin# balance
of the fi)e-&ear #"aranteed period= Pro)ided% finall&% That the !ini!"! death benefit shall not be less than fifteen
tho"sand pesos. (+s a!ended b& $ection 2% Presidential Decree .o. ,17,.
(c The !onthl& inco!e benefit pro)ided herein shall be the new a!o"nt of the !onthl& inco!e benefit for the
s"r)i)in# beneficiaries "pon the appro)al of this decree. (+s a!ended b& $ection B% Presidential Decree .o. ,46B.
(d 6"neral benefit. + f"neral benefit of Three tho"sand pesos (P4%000.00 shall be paid "pon the death of a
co)ered e!plo&ee or per!anentl& totall& disabled pensioner. (+s a!ended b& $ection 4% @xec"ti)e 9rder .o. ,/1.
Chapt! VIII
PROVISIONS COMMON TO INCOME BENEFITS
ARTICLE. "'$. Relationship and dependency. +ll '"estions of relationship and dependenc& shall be deter!ined
as of the ti!e of death.
ARTICLE. "'%. Delin*uent contributions. (a +n e!plo&er who is delin'"ent in his contrib"tions shall be liable to
the $&ste! for the benefits which !a& ha)e been paid b& the $&ste! to his e!plo&ees or their dependents% and an&
benefit and expenses to which s"ch e!plo&er is liable shall constit"te a lien on all his propert&% real or personal%
which is hereb& declared to be preferred to an& credit% except taxes. The pa&!ent b& the e!plo&er of the l"!p s"!
e'"i)alent of s"ch liabilit& shall absol)e hi! fro! the pa&!ent of the delin'"ent contrib"tion and penalt& thereon with
respect to the e!plo&ee concerned.
(b 6ail"re or ref"sal of the e!plo&er to pa& or re!it the contrib"tion herein prescribed shall not pre*"dice the ri#ht of
the e!plo&ee or his dependents to the benefits "nder this Title. 5f the sickness% in*"r&% disabilit& or death occ"rs
before the $&ste! recei)es an& report of the na!e of his e!plo&ee% the e!plo&er shall be liable to the $&ste! for the
l"!p s"! e'"i)alent to the benefits to which s"ch e!plo&ee or his dependents !a& be entitled.
ARTICLE. "'-. econd in!uries. 5f an& e!plo&ee "nder per!anent partial disabilit& s"ffers another in*"r& which
res"lts in a co!pensable disabilit& #reater than the pre)io"s in*"r&% the $tate 5ns"rance 6"nd shall be liable for the
inco!e benefit of the new disabilit&= Pro)ided% That if the new disabilit& is related to the pre)io"s disabilit&% the
$&ste! shall be liable onl& for the difference in inco!e benefits.
ARTICLE. "'&. Assignment of benefits. .o clai! for co!pensation "nder this Title is transferable or liable to tax%
attach!ent% #arnish!ent% le)& or sei("re b& or "nder an& le#al process whatsoe)er% either before or after receipt b&
the person or persons entitled thereto% except to pa& an& debt of the e!plo&ee to the $&ste!.
ARTICLE. "''. "arned benefits. 5nco!e benefits shall% with respect to an& period of disabilit&% be pa&able in
accordance with this Title to an e!plo&ee who is entitled to recei)e wa#es% salaries or allowances for holida&s%
)acation or sick lea)es and an& other award of benefit "nder a collecti)e bar#ainin# or other a#ree!ent.
ARTICLE. 2((. afety devices. 5n case the e!plo&ees in*"r& or death was d"e to the fail"re of the e!plo&er to
co!pl& with an& law or to install and !aintain safet& de)ices or to take other preca"tions for the pre)ention of in*"r&%
said e!plo&er shall pa& the $tate 5ns"rance 6"nd a penalt& of twent&-fi)e percent (7-: of the l"!p s"! e'"i)alent
of the inco!e benefit pa&able b& the
$&ste! to the e!plo&ee. +ll e!plo&ers% speciall& those who sho"ld ha)e been pa&in# a rate of contrib"tion hi#her
than re'"ired of the! "nder this Title% are en*oined to "ndertake and stren#then !eas"res for the occ"pational health
and safet& of their e!plo&ees.
ARTICLE. 2(". $rescriptive period. .o clai! for co!pensation shall be #i)en d"e co"rse "nless said clai! is
filed with the $&ste! within three (4 &ears fro! the ti!e the ca"se of action accr"ed. (+s a!ended b& $ection -%
Presidential Decree .o. ,17,.
ARTICLE. 2(2. "rroneous payment. (a 5f the $&ste! in #ood faith pa&s inco!e benefit to a dependent who is
inferior in ri#ht to another dependent or with who! another dependent is entitled to share% s"ch pa&!ents shall
dischar#e the $&ste! fro! liabilit&% "nless and "ntil s"ch other dependent notifies the $&ste! of his clai! prior to the
pa&!ents.
(b 5n case of do"bt as to the respecti)e ri#hts of ri)al clai!ants% the $&ste! is hereb& e!powered to deter!ine as to
who! pa&!ents sho"ld be !ade in accordance with s"ch re#"lations as the Co!!ission !a& appro)e. 5f the !one&
is pa&able to a !inor or inco!petent% pa&!ent shall be !ade b& the $&ste! to s"ch person or persons as it !a&
consider to be best '"alified to take care and dispose of the !inors or inco!petents propert& for his benefit.
ARTICLE. 2(#. $rohibition. .o a#ent% attorne& or other person p"rs"in# or in char#e of the preparation or filin# of
an& clai! for benefit "nder this Title shall de!and or char#e for his ser)ices an& fee% and an& stip"lation to the
contrar& shall be n"ll and )oid. The retention or ded"ction of an& a!o"nt fro! an& benefit #ranted "nder this Title for
the pa&!ent of fees for s"ch ser)ices is prohibited. Diolation of an& pro)ision of this +;T5CL@icle shall be p"nished
b& a fine of not less than fi)e h"ndred pesos nor !ore than fi)e tho"sand pesos% or i!prison!ent for not less than six
!onths nor !ore than one &ear% or both% at the discretion of the co"rt.
ARTICLE. 2(4. "(emption from levy/ ta(/ etc. +ll laws to the contrar& notwithstandin#% the $tate 5ns"rance 6"nd
and all its assets shall be exe!pt fro! an& tax% fee% char#e% le)&% or c"sto!s or i!port d"t& and no law hereafter
enacted shall appl& to the $tate 5ns"rance 6"nd "nless it is pro)ided therein that the sa!e is applicable b& expressl&
statin# its na!e.
Chapt! I.
RECORDS, REPORTS AND PENAL PROVISIONS
ARTICLE. 2($. Record of death or disability. - (a +ll e!plo&ers shall keep a lo#book to record chronolo#icall& the
sickness% in*"r& or death of their e!plo&ees% settin# forth therein their na!es% dates and places of the contin#enc&%
nat"re of the contin#enc& and absences. @ntries in the lo#book shall be !ade within fi)e da&s fro! notice or
knowled#e of the occ"rrence of the contin#enc&. ?ithin fi)e da&s after entr& in the lo#book% the e!plo&er shall report
to the $&ste! onl& those contin#encies he dee!s to be work-connected.
(b +ll entries in the e!plo&ers lo#book shall be !ade b& the e!plo&er or an& of his a"thori(ed official after
)erification of the contin#encies or the e!plo&ees absences for a period of a da& or !ore. Cpon re'"est b& the
$&ste!% the e!plo&er shall f"rnish the necessar& certificate re#ardin# infor!ation abo"t an& contin#enc& appearin#
in the lo#book% citin# the entr& n"!ber% pa#e n"!ber and date. $"ch lo#book shall be !ade a)ailable for inspection
to the d"l& a"thori(ed representati)e of the $&ste!.
(c $ho"ld an& e!plo&er fail to record in the lo#book an act"al sickness% in*"r& or death of an& of his e!plo&ees
within the period prescribed herein% #i)e false infor!ation or withhold !aterial infor!ation alread& in his possession%
he shall be held liable for fift& percent of the l"!p s"! e'"i)alent of the inco!e benefit to which the e!plo&ee !a&
be fo"nd to be entitled% the pa&!ent of which shall accr"e to the $tate 5ns"rance 6"nd.
(d 5n case of pa&!ent of benefits for an& clai! which is later deter!ined to be fra"d"lent and the e!plo&er is fo"nd
to be a part& to the fra"d% s"ch e!plo&er shall rei!b"rse the $&ste! the f"ll a!o"nt of the co!pensation paid.
ARTICLE. 2(%. Notice of sickness/ in!ury or death. .otice of sickness% in*"r& or death shall be #i)en to the
e!plo&er b& the e!plo&ee or b& his dependents or an&bod& on his behalf within fi)e da&s fro! the occ"rrence of the
contin#enc&. .o notice to the e!plo&er shall be re'"ired if the contin#enc& is known to the e!plo&er or his a#ents or
representati)es.
ARTICLE. 2(-. $enal provisions. (a The penal pro)isions of ;ep"blic +ct ."!bered @le)en F"ndred $ixt&-9ne%
as a!ended% and Co!!onwealth +ct ."!bered 9ne F"ndred @i#ht&-$ix% as a!ended% with re#ard to the f"nds as
are there"nder bein# paid to% collected or disb"rsed b& the $&ste!% shall be applicable to the collection%
ad!inistration and disb"rse!ent of the 6"nds "nder this Title. The penal pro)isions on co)era#e shall also be
applicable.
(b +n& person who% for the p"rpose of sec"rin# entitle!ent to an& benefit or pa&!ent "nder this Title% or the
iss"ance of an& certificate or doc"!ent for an& p"rpose connected with this Title% whether for hi! or for so!e other
person% co!!its fra"d% coll"sion% falsification% !isrepresentation of facts or an& other kind of ano!al&% shall be
p"nished with a fine of not less than fi)e h"ndred pesos nor !ore than fi)e tho"sand pesos and an i!prison!ent for
not less than six !onths nor !ore than one &ear% at the discretion of the co"rt.
(c 5f the act penali(ed b& this +rticle is co!!itted b& an& person who has been or is e!plo&ed b& the Co!!ission or
$&ste!% or a recidi)ist% the i!prison!ent shall not be less than one &ear> if co!!itted b& a law&er% ph&sician or other
professional% he shall% in addition to the penalt& prescribed herein% be dis'"alified fro! the practice of his profession>
and if co!!itted b& an& official% e!plo&ee or personnel of the Co!!ission% $&ste! or an& #o)ern!ent a#enc&% he
shall% in addition to the penalt& prescribed herein% be dis!issed with pre*"dice to re-e!plo&!ent in the #o)ern!ent
ser)ice.
ARTICLE. 2(&. Applicability. This Title shall appl& onl& to in*"r&% sickness% disabilit& or death occ"rrin# on or after
Gan"ar& ,% ,1/-.
ARTICLE. 2(&*A5 Repeal. +ll existin# laws% Presidential Decrees and Letters of 5nstr"ctions which are inconsistent
with or contrar& to this Decree% are hereb& repealed= Pro)ided% That in the case of the <$5$% conditions for
entitle!ent to benefits shall be #o)erned b& the Labor Code% as a!ended= Pro)ided% howe)er% That the for!"las for
co!p"tation of benefits% as well as the contrib"tion base% shall be those pro)ided "nder Co!!onwealth +ct
."!bered 9ne F"ndred @i#ht&-$ix% as a!ended b& Presidential Decree .o. ,,26% pl"s twent& percent thereof. (+s
added b& $ection 1% Presidential Decree .o. ,46B IAa& ,% ,1/BJ and s"bse'"entl& a!ended b& $ection /%
Presidential Decree .o. ,62,.
T+t, III
MEDICARE
ARTICLE. 2('. 'edical care. The Philippine Aedical Care Plan shall be i!ple!ented as pro)ided "nder ;ep"blic
+ct ."!bered $ixt&-9ne F"ndred @le)en% as a!ended.
T+t, IV
ADULT EDUCATION
ARTICLE. 2"(. Adult education5 @)er& e!plo&er shall render assistance in the establish!ent and operation of
ad"lt ed"cation pro#ra!s for their workers and e!plo&ees as prescribed b& re#"lations *ointl& appro)ed b& the
Depart!ent of Labor and @!plo&!ent and the Depart!ent of @d"cation% C"lt"re and $ports.
BOO) FIVE
LABOR RELATIONS
T+t, I
POLICY AND DEFINITIONS
Chapt! I
POLICY
ARTICLE 2"". Declaration of $olicy. - +. 5t is the polic& of the $tate=
(a To pro!ote and e!phasi(e the pri!ac& of free collecti)e bar#ainin# and ne#otiations% incl"din# )ol"ntar&
arbitration% !ediation and conciliation% as !odes of settlin# labor or ind"strial disp"tes>
(b To pro!ote free trade "nionis! as an instr"!ent for the enhance!ent of de!ocrac& and the pro!otion of social
*"stice and de)elop!ent>
(c To foster the free and )ol"ntar& or#ani(ation of a stron# and "nited labor !o)e!ent>
(d To pro!ote the enli#hten!ent of workers concernin# their ri#hts and obli#ations as "nion !e!bers and as
e!plo&ees>
(e To pro)ide an ade'"ate ad!inistrati)e !achiner& for the expeditio"s settle!ent of labor or ind"strial disp"tes>
(f To ens"re a stable b"t d&na!ic and *"st ind"strial peace> and
(# To ens"re the participation of workers in decision and polic&-!akin# processes affectin# their ri#hts% d"ties and
welfare.
3. To enco"ra#e a tr"l& de!ocratic !ethod of re#"latin# the relations between the e!plo&ers and e!plo&ees b&
!eans of a#ree!ents freel& entered into thro"#h collecti)e bar#ainin#% no co"rt or ad!inistrati)e a#enc& or official
shall ha)e the power to set or fix wa#es% rates of pa&% ho"rs of work or other ter!s and conditions of e!plo&!ent%
except as otherwise pro)ided "nder this Code. (+s a!ended b& $ection 4% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
Chapt! II
DEFINITIONS
ARTICLE 2"2. Definitions. (a Commission !eans the .ational Labor ;elations Co!!ission or an& of its
di)isions% as the case !a& be% as pro)ided "nder this Code.
(b Bureau !eans the 3"rea" of Labor ;elations and8or the Labor ;elations Di)isions in the re#ional offices
established "nder Presidential Decree .o. ,% in the Depart!ent of Labor.
(c Board !eans the .ational Conciliation and Aediation 3oard established "nder @xec"ti)e 9rder .o. ,76.
(d Council !eans the Tripartite Dol"ntar& +rbitration +d)isor& Co"ncil established "nder @xec"ti)e 9rder .o. ,76%
as a!ended.
(e @!plo&er incl"des an& person actin# in the interest of an e!plo&er% directl& or indirectl&. The ter! shall not
incl"de an& labor or#ani(ation or an& of its officers or a#ents except when actin# as e!plo&er.
(f Employee incl"des an& person in the e!plo& of an e!plo&er. The ter! shall not be li!ited to the e!plo&ees of a
partic"lar e!plo&er% "nless the Code so explicitl& states. 5t shall incl"de an& indi)id"al whose work has ceased as a
res"lt of or in connection with an& c"rrent labor disp"te or beca"se of an& "nfair labor practice if he has not obtained
an& other s"bstantiall& e'"i)alent and re#"lar e!plo&!ent.
(# 'abor or$ani(ation !eans an& "nion or association of e!plo&ees which exists in whole or in part for the p"rpose
of collecti)e bar#ainin# or of dealin# with e!plo&ers concernin# ter!s and conditions of e!plo&!ent.
(h 'e$itimate labor or$ani(ation !eans an& labor or#ani(ation d"l& re#istered with the Depart!ent of Labor and
@!plo&!ent% and incl"des an& branch or local thereof.
(i Company union !eans an& labor or#ani(ation whose for!ation% f"nction or ad!inistration has been assisted b&
an& act defined as "nfair labor practice b& this Code.
(* Bar$ainin$ representati%e !eans a le#iti!ate labor or#ani(ation whether or not e!plo&ed b& the e!plo&er.
(k )nfair labor practice !eans an& "nfair labor practice as expressl& defined b& the Code.
(l 'abor dispute incl"des an& contro)ers& or !atter concernin# ter!s and conditions of e!plo&!ent or the
association or representation of persons in ne#otiatin#% fixin#% !aintainin#% chan#in# or arran#in# the ter!s and
conditions of e!plo&!ent% re#ardless of whether the disp"tants stand in the proxi!ate relation of e!plo&er and
e!plo&ee.
(! Mana$erial employee is one who is )ested with the powers or prero#ati)es to la& down and exec"te
!ana#e!ent policies and8or to hire% transfer% s"spend% la&-off% recall% dischar#e% assi#n or discipline e!plo&ees.
$"per)isor& e!plo&ees are those who% in the interest of the e!plo&er% effecti)el& reco!!end s"ch !ana#erial
actions if the exercise of s"ch a"thorit& is not !erel& ro"tinar& or clerical in nat"re b"t re'"ires the "se of
independent *"d#!ent. +ll e!plo&ees not fallin# within an& of the abo)e definitions are considered rank-and-file
e!plo&ees for p"rposes of this 3ook.
(n *oluntary !rbitrator !eans an& person accredited b& the 3oard as s"ch or an& person na!ed or desi#nated in
the Collecti)e 3ar#ainin# +#ree!ent b& the parties to act as their Dol"ntar& +rbitrator% or one chosen with or witho"t
the assistance of the .ational Conciliation and Aediation 3oard% p"rs"ant to a selection proced"re a#reed "pon in
the Collecti)e 3ar#ainin# +#ree!ent% or an& official that !a& be a"thori(ed b& the $ecretar& of Labor and
@!plo&!ent to act as Dol"ntar& +rbitrator "pon the written re'"est and a#ree!ent of the parties to a labor disp"te.
(o Strike !eans an& te!porar& stoppa#e of work b& the concerted action of e!plo&ees as a res"lt of an ind"strial
or labor disp"te.
(p 'ockout !eans an& te!porar& ref"sal of an e!plo&er to f"rnish work as a res"lt of an ind"strial or labor disp"te.
(' Internal union dispute incl"des all disp"tes or #rie)ances arisin# fro! an& )iolation of or disa#ree!ent o)er an&
pro)ision of the constit"tion and b& laws of a "nion% incl"din# an& )iolation of the ri#hts and conditions of "nion
!e!bership pro)ided for in this Code.
(r Strike+breaker !eans an& person who obstr"cts% i!pedes% or interferes with b& force% )iolence% coercion% threats%
or inti!idation an& peacef"l picketin# affectin# wa#es% ho"rs or conditions of work or in the exercise of the ri#ht of
self-or#ani(ation or collecti)e bar#ainin#.
(s Strike area !eans the establish!ent% wareho"ses% depots% plants or offices% incl"din# the sites or pre!ises "sed
as r"nawa& shops% of the e!plo&er str"ck a#ainst% as well as the i!!ediate )icinit& act"all& "sed b& picketin# strikers
in !o)in# to and fro before all points of entrance to and exit fro! said establish!ent. (+s a!ended b& $ection 2%
;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
T+t, II
NATIONAL LABOR RELATIONS COMMISSION
Chapt! I
CREATION AND COMPOSITION
ARTICLE 2"#. National 1abor Relations Commission. There shall be a .ational Labor ;elations Co!!ission
which shall be attached to the Depart!ent of Labor and @!plo&!ent for pro#ra! and polic& coordination onl&%
co!posed of a Chair!an and fo"rteen (,2 Ae!bers.
6i)e (- !e!bers each shall be chosen fro! a!on# the no!inees of the workers and e!plo&ers or#ani(ations%
respecti)el&. The Chair!an and the fo"r (2 re!ainin# !e!bers shall co!e fro! the p"blic sector% with the latter to
be chosen fro! a!on# the reco!!endees of the $ecretar& of Labor and @!plo&!ent.
Cpon ass"!ption into office% the !e!bers no!inated b& the workers and e!plo&ers or#ani(ations shall di)est
the!sel)es of an& affiliation with or interest in the federation or association to which the& belon#.
The Co!!ission !a& sit en banc or in fi)e (- di)isions% each co!posed of three (4 !e!bers. $"b*ect to the
pen"lti!ate sentence of this para#raph% the Co!!ission shall sit en banc onl& for p"rposes of pro!"l#atin# r"les and
re#"lations #o)ernin# the hearin# and disposition of cases before an& of its di)isions and re#ional branches% and
for!"latin# policies affectin# its ad!inistration and operations. The Co!!ission shall exercise its ad*"dicator& and all
other powers% f"nctions% and d"ties thro"#h its di)isions. 9f the fi)e (- di)isions% the first% second and third di)isions
shall handle cases co!in# fro! the .ational Capital ;e#ion and the parts of L"(on> and the fo"rth and fifth di)isions%
cases fro! the Disa&as and Aindanao% respecti)el&> Pro)ided that the Co!!ission sittin# en banc !a&% on
te!porar& or e!er#enc& basis% allow cases within the *"risdiction of an& di)ision to be heard and decided b& an&
other di)ision whose docket allows the additional workload and s"ch transfer will not expose liti#ants to "nnecessar&
additional expense. The di)isions of the Co!!ission shall ha)e excl"si)e appellate *"risdiction o)er cases within their
respecti)e territorial *"risdictions. I+s a!ended b& ;ep"blic +ct .o. //00J.
The conc"rrence of two (7 Co!!issioners of a di)ision shall be necessar& for the prono"nce!ent of *"d#!ent or
resol"tion. ?hene)er the re'"ired !e!bership in a di)ision is not co!plete and the conc"rrence of two (7
co!!issioners to arri)e at a *"d#!ent or resol"tion cannot be obtained% the Chair!an shall desi#nate s"ch n"!ber
of additional Co!!issioners fro! the other di)isions as !a& be necessar&.
The concl"sions of a di)ision on an& case s"b!itted to it for decision shall be reached in cons"ltation before the case
is assi#ned to a !e!ber for the writin# of the opinion. 5t shall be !andator& for the di)ision to !eet for p"rposes of
the cons"ltation ordained herein. + certification to this effect si#ned b& the Presidin# Co!!issioner of the di)ision
shall be iss"ed and a cop& thereof attached to the record of the case and ser)ed "pon the parties.
The Chair!an shall be the Presidin# Co!!issioner of the first di)ision and the fo"r (2 other !e!bers fro! the
p"blic sector shall be the Presidin# Co!!issioners of the second% third% fo"rth and fifth di)isions% respecti)el&. 5n
case of the effecti)e absence or incapacit& of the Chair!an% the Presidin# Co!!issioner of the second di)ision shall
be the +ctin# Chair!an.
The Chair!an% aided b& the @xec"ti)e Clerk of the Co!!ission% shall ha)e ad!inistrati)e s"per)ision o)er the
Co!!ission and its re#ional branches and all its personnel% incl"din# the @xec"ti)e Labor +rbiters and Labor
+rbiters.
The Co!!ission% when sittin# en banc shall be assisted b& the sa!e @xec"ti)e Clerk and% when actin# thr" its
Di)isions% b& said @xec"ti)e Clerks for the second% third% fo"rth and fifth Di)isions% respecti)el&% in the perfor!ance of
s"ch si!ilar or e'"i)alent f"nctions and d"ties as are dischar#ed b& the Clerk of Co"rt and Dep"t& Clerks of Co"rt of
the Co"rt of +ppeals. (+s a!ended b& $ection -% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2"4. 3ead*uarters/ #ranches and $rovincial "(tension 4nits. The Co!!ission and its 6irst% $econd
and Third di)isions shall ha)e their !ain offices in Aetropolitan Aanila% and the 6o"rth and 6ifth di)isions in the Cities
of Ceb" and Ca#a&an de 9ro% respecti)el&. The Co!!ission shall establish as !an& re#ional branches as there are
re#ional offices of the Depart!ent of Labor and @!plo&!ent% s"b-re#ional branches or pro)incial extension "nits.
There shall be as !an& Labor +rbiters as !a& be necessar& for the effecti)e and efficient operation of the
Co!!ission. @ach re#ional branch shall be headed b& an @xec"ti)e Labor +rbiter. (+s a!ended b& $ection 6%
;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2"$. Appointment and 0ualifications5 The Chair!an and other Co!!issioners shall be !e!bers of
the Philippine 3ar and !"st ha)e en#a#ed in the practice of law in the Philippines for at least fifteen (,- &ears% with
at least fi)e (- &ears experience or expos"re in the field of labor-!ana#e!ent relations% and shall preferabl& be
residents of the re#ion where the& are to hold office. The @xec"ti)e Labor +rbiters and Labor +rbiters shall likewise
be !e!bers of the Philippine 3ar and !"st ha)e been en#a#ed in the practice of law in the Philippines for at least
se)en (/ &ears% with at least three (4 &ears experience or expos"re in the field of labor-!ana#e!ent relations=
Pro)ided% Fowe)er% that inc"!bent @xec"ti)e Labor +rbiters and Labor +rbiters who ha)e been en#a#ed in the
practice of law for at least fi)e (- &ears !a& be considered as alread& '"alified for p"rposes of reappoint!ent as
s"ch "nder this +ct. The Chair!an and the other Co!!issioners% the @xec"ti)e Labor +rbiters and Labor +rbiters
shall hold office d"rin# #ood beha)ior "ntil the& reach the a#e of sixt&-fi)e &ears% "nless sooner re!o)ed for ca"se as
pro)ided b& law or beco!e incapacitated to dischar#e the d"ties of their office.
The Chair!an% the di)ision Presidin# Co!!issioners and other Co!!issioners shall be appointed b& the President%
s"b*ect to confir!ation b& the Co!!ission on +ppoint!ents. +ppoint!ent to an& )acanc& shall co!e fro! the
no!inees of the sector which no!inated the predecessor. The @xec"ti)e Labor +rbiters and Labor +rbiters shall also
be appointed b& the President% "pon reco!!endation of the $ecretar& of Labor and @!plo&!ent and shall be s"b*ect
to the Ci)il $er)ice Law% r"les and re#"lations.
The $ecretar& of Labor and @!plo&!ent shall% in cons"ltation with the Chair!an of the Co!!ission% appoint the staff
and e!plo&ees of the Co!!ission and its re#ional branches as the needs of the ser)ice !a& re'"ire% s"b*ect to the
Ci)il $er)ice Law% r"les and re#"lations% and "p#rade their c"rrent salaries% benefits and other e!ol"!ents in
accordance with law. (+s a!ended b& $ection /% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2"%. alaries/ benefits and other emoluments. The Chair!an and !e!bers of the Co!!ission shall
recei)e an ann"al salar& at least e'"i)alent to% and be entitled to the sa!e allowances and benefits as those of the
Presidin# G"stice and +ssociate G"stices of the Co"rt of +ppeals% respecti)el&. The @xec"ti)e Labor +rbiters shall
recei)e an ann"al salar& at least e'"i)alent to that of an +ssistant ;e#ional Director of the Depart!ent of Labor and
@!plo&!ent and shall be entitled to the sa!e allowances and benefits as that of a ;e#ional Director of said
Depart!ent. The Labor +rbiters shall recei)e an ann"al salar& at least e'"i)alent to% and be entitled to the sa!e
allowances and benefits as that of an +ssistant ;e#ional Director of the Depart!ent of Labor and @!plo&!ent. 5n no
case% howe)er% shall the pro)ision of this +rticle res"lt in the di!in"tion of existin# salaries% allowances and benefits
of the afore!entioned officials. (+s a!ended b& $ection B% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
Chapt! II
POWERS AND DUTIES
ARTICLE 2"-. 7urisdiction of the 1abor Arbiters and the Commission. (a @xcept as otherwise pro)ided "nder
this Code% the Labor +rbiters shall ha)e ori#inal and excl"si)e *"risdiction to hear and decide% within thirt& (40
calendar da&s after the s"b!ission of the case b& the parties for decision witho"t extension% e)en in the absence of
steno#raphic notes% the followin# cases in)ol)in# all workers% whether a#ric"lt"ral or non-a#ric"lt"ral=
,. Cnfair labor practice cases>
7. Ter!ination disp"tes>
4. 5f acco!panied with a clai! for reinstate!ent% those cases that workers !a& file in)ol)in# wa#es% rates of pa&%
ho"rs of work and other ter!s and conditions of e!plo&!ent>
2. Clai!s for act"al% !oral% exe!plar& and other for!s of da!a#es arisin# fro! the e!plo&er-e!plo&ee relations>
-. Cases arisin# fro! an& )iolation of +rticle 762 of this Code% incl"din# '"estions in)ol)in# the le#alit& of strikes and
locko"ts> and
6. @xcept clai!s for @!plo&ees Co!pensation% $ocial $ec"rit&% Aedicare and !aternit& benefits% all other clai!s
arisin# fro! e!plo&er-e!plo&ee relations% incl"din# those of persons in do!estic or ho"sehold ser)ice% in)ol)in# an
a!o"nt exceedin# fi)e tho"sand pesos (P-%000.00 re#ardless of whether acco!panied with a clai! for
reinstate!ent.
(b The Co!!ission shall ha)e excl"si)e appellate *"risdiction o)er all cases decided b& Labor +rbiters.
(c Cases arisin# fro! the interpretation or i!ple!entation of collecti)e bar#ainin# a#ree!ents and those arisin# fro!
the interpretation or enforce!ent of co!pan& personnel policies shall be disposed of b& the Labor +rbiter b& referrin#
the sa!e to the #rie)ance !achiner& and )ol"ntar& arbitration as !a& be pro)ided in said a#ree!ents. (+s a!ended
b& $ection 1% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2"&. $owers of the Commission. The Co!!ission shall ha)e the power and a"thorit&=
(a To pro!"l#ate r"les and re#"lations #o)ernin# the hearin# and disposition of cases before it and its re#ional
branches% as well as those pertainin# to its internal f"nctions and s"ch r"les and re#"lations as !a& be necessar& to
carr& o"t the p"rposes of this Code> (+s a!ended b& $ection ,0% ;ep"blic +ct .o. Aarch 7,% ,1B1.
(b To ad!inister oaths% s"!!on the parties to a contro)ers&% iss"e s"bpoenas re'"irin# the attendance and
testi!on& of witnesses or the prod"ction of s"ch books% papers% contracts% records% state!ent of acco"nts%
a#ree!ents% and others as !a& be !aterial to a *"st deter!ination of the !atter "nder in)esti#ation% and to testif& in
an& in)esti#ation or hearin# cond"cted in p"rs"ance of this Code>
(c To cond"ct in)esti#ation for the deter!ination of a '"estion% !atter or contro)ers& within its *"risdiction% proceed
to hear and deter!ine the disp"tes in the absence of an& part& thereto who has been s"!!oned or ser)ed with
notice to appear% cond"ct its proceedin#s or an& part thereof in p"blic or in pri)ate% ad*o"rn its hearin#s to an& ti!e
and place% refer technical !atters or acco"nts to an expert and to accept his report as e)idence after hearin# of the
parties "pon d"e notice% direct parties to be *oined in or excl"ded fro! the proceedin#s% correct% a!end% or wai)e an&
error% defect or irre#"larit& whether in s"bstance or in for!% #i)e all s"ch directions as it !a& dee! necessar& or
expedient in the deter!ination of the disp"te before it% and dis!iss an& !atter or refrain fro! f"rther hearin# or fro!
deter!inin# the disp"te or part thereof% where it is tri)ial or where f"rther proceedin#s b& the Co!!ission are not
necessar& or desirable> and
(d To hold an& person in conte!pt directl& or indirectl& and i!pose appropriate penalties therefor in accordance with
law.
+ person #"ilt& of !isbeha)ior in the presence of or so near the Chair!an or an& !e!ber of the Co!!ission or an&
Labor +rbiter as to obstr"ct or interr"pt the proceedin#s before the sa!e% incl"din# disrespect toward said officials%
offensi)e personalities toward others% or ref"sal to be sworn% or to answer as a witness or to s"bscribe an affida)it or
deposition when lawf"ll& re'"ired to do so% !a& be s"!!aril& ad*"d#ed in direct conte!pt b& said officials and
p"nished b& fine not exceedin# fi)e h"ndred pesos (P-00 or i!prison!ent not exceedin# fi)e (- da&s% or both% if it
be the Co!!ission% or a !e!ber thereof% or b& a fine not exceedin# one h"ndred pesos (P,00 or i!prison!ent not
exceedin# one (, da&% or both% if it be a Labor +rbiter.
The person ad*"d#ed in direct conte!pt b& a Labor +rbiter !a& appeal to the Co!!ission and the exec"tion of the
*"d#!ent shall be s"spended pendin# the resol"tion of the appeal "pon the filin# b& s"ch person of a bond on
condition that he will abide b& and perfor! the *"d#!ent of the Co!!ission sho"ld the appeal be decided a#ainst
hi!. G"d#!ent of the Co!!ission on direct conte!pt is i!!ediatel& exec"tor& and "nappealable. 5ndirect conte!pt
shall be dealt with b& the Co!!ission or Labor +rbiter in the !anner prescribed "nder ;"le /, of the ;e)ised ;"les
of Co"rt> and (+s a!ended b& $ection ,0% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
(e To en*oin or restrain an& act"al or threatened co!!ission of an& or all prohibited or "nlawf"l acts or to re'"ire the
perfor!ance of a partic"lar act in an& labor disp"te which% if not restrained or perfor!ed forthwith% !a& ca"se #ra)e
or irreparable da!a#e to an& part& or render ineffect"al an& decision in fa)or of s"ch part&= Pro)ided% That no
te!porar& or per!anent in*"nction in an& case in)ol)in# or #rowin# o"t of a labor disp"te as defined in this Code
shall be iss"ed except after hearin# the testi!on& of witnesses% with opport"nit& for cross-exa!ination% in s"pport of
the alle#ations of a co!plaint !ade "nder oath% and testi!on& in opposition thereto% if offered% and onl& after a findin#
of fact b& the Co!!ission% to the effect=
(, That prohibited or "nlawf"l acts ha)e been threatened and will be co!!itted and will be contin"ed "nless
restrained% b"t no in*"nction or te!porar& restrainin# order shall be iss"ed on acco"nt of an& threat% prohibited or
"nlawf"l act% except a#ainst the person or persons% association or or#ani(ation !akin# the threat or co!!ittin# the
prohibited or "nlawf"l act or act"all& a"thori(in# or ratif&in# thesa!e after act"al knowled#e thereof>
(7 That s"bstantial and irreparable in*"r& to co!plainants propert& will follow>
(4 That as to each ite! of relief to be #ranted% #reater in*"r& will be inflicted "pon co!plainant b& the denial of relief
than will be inflicted "pon defendants b& the #rantin# of relief>
(2 That co!plainant has no ade'"ate re!ed& at law> and
(- That the p"blic officers char#ed with the d"t& to protect co!plainants propert& are "nable or "nwillin# to f"rnish
ade'"ate protection.
$"ch hearin# shall be held after d"e and personal notice thereof has been ser)ed% in s"ch !anner as the
Co!!ission shall direct% to all known persons a#ainst who! relief is so"#ht% and also to the Chief @xec"ti)e and
other p"blic officials of the pro)ince or cit& within which the "nlawf"l acts ha)e been threatened or co!!itted%
char#ed with the d"t& to protect co!plainants propert&= Pro)ided% howe)er% that if a co!plainant shall also alle#e
that% "nless a te!porar& restrainin# order shall be iss"ed witho"t notice% a s"bstantial and irreparable in*"r& to
co!plainants propert& will be "na)oidable% s"ch a te!porar& restrainin# order !a& be iss"ed "pon testi!on& "nder
oath% s"fficient% if s"stained% to *"stif& the Co!!ission in iss"in# a te!porar& in*"nction "pon hearin# after notice.
$"ch a te!porar& restrainin# order shall be effecti)e for no lon#er than twent& (70 da&s and shall beco!e )oid at the
expiration of said twent& (70 da&s. .o s"ch te!porar& restrainin# order or te!porar& in*"nction shall be iss"ed
except on condition that co!plainant shall first file an "ndertakin# with ade'"ate sec"rit& in an a!o"nt to be fixed b&
the Co!!ission s"fficient to reco!pense those en*oined for an& loss% expense or da!a#e ca"sed b& the i!pro)ident
or erroneo"s iss"ance of s"ch order or in*"nction% incl"din# all reasonable costs% to#ether with a reasonable
attorne&s fee% and expense of defense a#ainst the order or a#ainst the #rantin# of an& in*"ncti)e relief so"#ht in the
sa!e proceedin# and s"bse'"entl& denied b& the Co!!ission.
The "ndertakin# herein !entioned shall be "nderstood to constit"te an a#ree!ent entered into b& the co!plainant
and the s"ret& "pon which an order !a& be rendered in the sa!e s"it or proceedin# a#ainst said co!plainant and
s"ret&% "pon a hearin# to assess da!a#es% of which hearin#% co!plainant and s"ret& shall ha)e reasonable notice%
the said co!plainant and s"ret& s"b!ittin# the!sel)es to the *"risdiction of the Co!!ission for that p"rpose. 3"t
nothin# herein contained shall depri)e an& part& ha)in# a clai! or ca"se of action "nder or "pon s"ch "ndertakin#
fro! electin# to p"rs"e his ordinar& re!ed& b& s"it at law or in e'"it&= Pro)ided% f"rther% That the reception of
e)idence for the application of a writ of in*"nction !a& be dele#ated b& the Co!!ission to an& of its Labor +rbiters
who shall cond"ct s"ch hearin#s in s"ch places as he !a& deter!ine to be accessible to the parties and their
witnesses and shall s"b!it thereafter his reco!!endation to the Co!!ission. (+s a!ended b& $ection ,0% ;ep"blic
+ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2"'. %cular inspection. The Chair!an% an& Co!!issioner% Labor +rbiter or their d"l& a"thori(ed
representati)es% !a&% at an& ti!e d"rin# workin# ho"rs% cond"ct an oc"lar inspection on an& establish!ent% b"ildin#%
ship or )essel% place or pre!ises% incl"din# an& work% !aterial% i!ple!ent% !achiner&% appliance or an& ob*ect
therein% and ask an& e!plo&ee% laborer% or an& person% as the case !a& be% for an& infor!ation or data concernin#
an& !atter or '"estion relati)e to the ob*ect of the in)esti#ation.
ARTICLE 22(. Compulsory arbitration. The Co!!ission or an& Labor +rbiter shall ha)e the power to ask the
assistance of other #o)ern!ent officials and '"alified pri)ate citi(ens to act as co!p"lsor& arbitrators on cases
referred to the! and to fix and assess the fees of s"ch co!p"lsor& arbitrators% takin# into acco"nt the nat"re of the
case% the ti!e cons"!ed in hearin# the case% the professional standin# of the arbitrators% the financial capacit& of the
parties% and the fees pro)ided in the ;"les of Co"rt.J (;epealed b& $ection ,6% 3atas Pa!bansa 3ilan# ,40% +"#"st
7,% ,1B,.
ARTICLE 22". Technical rules not binding and prior resort to amicable settlement. - 5n an& proceedin# before
the Co!!ission or an& of the Labor +rbiters% the r"les of e)idence pre)ailin# in co"rts of law or e'"it& shall not be
controllin# and it is the spirit and intention of this Code that the Co!!ission and its !e!bers and the Labor +rbiters
shall "se e)er& and all reasonable !eans to ascertain the facts in each case speedil& and ob*ecti)el& and witho"t
re#ard to technicalities of law or proced"re% all in the interest of d"e process. 5n an& proceedin# before the
Co!!ission or an& Labor +rbiter% the parties !a& be represented b& le#al co"nsel b"t it shall be the d"t& of the
Chair!an% an& Presidin# Co!!issioner or Co!!issioner or an& Labor +rbiter to exercise co!plete control of the
proceedin#s at all sta#es.
+n& pro)ision of law to the contrar& notwithstandin#% the Labor +rbiter shall exert all efforts towards the a!icable
settle!ent of a labor disp"te within his *"risdiction on or before the first hearin#. The sa!e r"le shall appl& to the
Co!!ission in the exercise of its ori#inal *"risdiction. (+s a!ended b& $ection ,,% ;ep"blic +ct .o. 6/,-% Aarch 7,%
,1B1.
ARTICLE 222. Appearances and &ees. (a .on-law&ers !a& appear before the Co!!ission or an& Labor +rbiter
onl&=
,. 5f the& represent the!sel)es> or
7. 5f the& represent their or#ani(ation or !e!bers thereof.
(b .o attorne&s fees% ne#otiation fees or si!ilar char#es of an& kind arisin# fro! an& collecti)e bar#ainin#
a#ree!ent shall be i!posed on an& indi)id"al !e!ber of the contractin# "nion= Pro)ided% Fowe)er% that attorne&s
fees !a& be char#ed a#ainst "nion f"nds in an a!o"nt to be a#reed "pon b& the parties. +n& contract% a#ree!ent or
arran#e!ent of an& sort to the contrar& shall be n"ll and )oid. (+s a!ended b& Presidential Decree .o. ,61,% Aa& ,%
,1B0.
Chapt! III
APPEAL
ARTICLE 22#. Appeal. - Decisions% awards% or orders of the Labor +rbiter are final and exec"tor& "nless appealed to
the Co!!ission b& an& or both parties within ten (,0 calendar da&s fro! receipt of s"ch decisions% awards% or
orders. $"ch appeal !a& be entertained onl& on an& of the followin# #ro"nds=
(a 5f there is pri!a facie e)idence of ab"se of discretion on the part of the Labor +rbiter>
(b 5f the decision% order or award was sec"red thro"#h fra"d or coercion% incl"din# #raft and corr"ption>
(c 5f !ade p"rel& on '"estions of law> and
(d 5f serio"s errors in the findin#s of facts are raised which wo"ld ca"se #ra)e or irreparable da!a#e or in*"r& to the
appellant.
5n case of a *"d#!ent in)ol)in# a !onetar& award% an appeal b& the e!plo&er !a& be perfected onl& "pon the
postin# of a cash or s"ret& bond iss"ed b& a rep"table bondin# co!pan& d"l& accredited b& the Co!!ission in the
a!o"nt e'"i)alent to the !onetar& award in the *"d#!ent appealed fro!.
5n an& e)ent% the decision of the Labor +rbiter reinstatin# a dis!issed or separated e!plo&ee% insofar as the
reinstate!ent aspect is concerned% shall i!!ediatel& be exec"tor&% e)en pendin# appeal. The e!plo&ee shall either
be ad!itted back to work "nder the sa!e ter!s and conditions pre)ailin# prior to his dis!issal or separation or% at
the option of the e!plo&er% !erel& reinstated in the pa&roll. The postin# of a bond b& the e!plo&er shall not sta& the
exec"tion for reinstate!ent pro)ided herein.
To disco"ra#e fri)olo"s or dilator& appeals% the Co!!ission or the Labor +rbiter shall i!pose reasonable penalt&%
incl"din# fines or cens"res% "pon the errin# parties.
5n all cases% the appellant shall f"rnish a cop& of the !e!orand"! of appeal to the other part& who shall file an
answer not later than ten (,0 calendar da&s fro! receipt thereof.
The Co!!ission shall decide all cases within twent& (70 calendar da&s fro! receipt of the answer of the appellee.
The decision of the Co!!ission shall be final and exec"tor& after ten (,0 calendar da&s fro! receipt thereof b& the
parties.
+n& law enforce!ent a#enc& !a& be dep"ti(ed b& the $ecretar& of Labor and @!plo&!ent or the Co!!ission in the
enforce!ent of decisions% awards or orders. (+s a!ended b& $ection ,7% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 224. "(ecution of decisions/ orders or awards. (a The $ecretar& of Labor and @!plo&!ent or an&
;e#ional Director% the Co!!ission or an& Labor +rbiter% or Aed-+rbiter or Dol"ntar& +rbitrator !a&% !ot" proprio or
on !otion of an& interested part&% iss"e a writ of exec"tion on a *"d#!ent within fi)e (- &ears fro! the date it
beco!es final and exec"tor&% re'"irin# a sheriff or a d"l& dep"ti(ed officer to exec"te or enforce final decisions%
orders or awards of the $ecretar& of Labor and @!plo&!ent or re#ional director% the Co!!ission% the Labor +rbiter
or !ed-arbiter% or )ol"ntar& arbitrators. 5n an& case% it shall be the d"t& of the responsible officer to separatel& f"rnish
i!!ediatel& the co"nsels of record and the parties with copies of said decisions% orders or awards. 6ail"re to co!pl&
with the d"t& prescribed herein shall s"b*ect s"ch responsible officer to appropriate ad!inistrati)e sanctions.
(b The $ecretar& of Labor and @!plo&!ent% and the Chair!an of the Co!!ission !a& desi#nate special sheriffs
and take an& !eas"re "nder existin# laws to ens"re co!pliance with their decisions% orders or awards and those of
the Labor +rbiters and )ol"ntar& arbitrators% incl"din# the i!position of ad!inistrati)e fines which shall not be less
than P-00.00 nor !ore than P,0%000.00. (+s a!ended b& $ection ,4% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 22$. Contempt powers of the ecretary of 1abor. 5n the exercise of his powers "nder this Code% the
$ecretar& of Labor !a& hold an& person in direct or indirect conte!pt and i!pose the appropriate penalties therefor.
T+t, III
BUREAU OF LABOR RELATIONS
ARTICLE 22%. #ureau of 1abor Relations. The 3"rea" of Labor ;elations and the Labor ;elations Di)isions in
the re#ional offices of the Depart!ent of Labor% shall ha)e ori#inal and excl"si)e a"thorit& to act% at their own initiati)e
or "pon re'"est of either or both parties% on all inter-"nion and intra-"nion conflicts% and all disp"tes% #rie)ances or
proble!s arisin# fro! or affectin# labor-!ana#e!ent relations in all workplaces% whether a#ric"lt"ral or non-
a#ric"lt"ral% except those arisin# fro! the i!ple!entation or interpretation of collecti)e bar#ainin# a#ree!ents which
shall be the s"b*ect of #rie)ance proced"re and8or )ol"ntar& arbitration.
The 3"rea" shall ha)e fifteen (,- workin# da&s to act on labor cases before it% s"b*ect to extension b& a#ree!ent of
the parties. (+s a!ended b& $ection ,2% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 22-. Compromise agreements. +n& co!pro!ise settle!ent% incl"din# those in)ol)in# labor standard
laws% )ol"ntaril& a#reed "pon b& the parties with the assistance of the 3"rea" or the re#ional office of the Depart!ent
of Labor% shall be final and bindin# "pon the parties. The .ational Labor ;elations Co!!ission or an& co"rt% shall not
ass"!e *"risdiction o)er iss"es in)ol)ed therein except in case of non-co!pliance thereof or if there is pri!a facie
e)idence that the settle!ent was obtained thro"#h fra"d% !isrepresentation% or coercion.
ARTICLE. 22&. Indorsement of cases to 1abor Arbiters. (a @xcept as pro)ided in para#raph(b of this +rticle%
the Labor +rbiter shall entertain onl& cases endorsed to hi! for co!p"lsor& arbitration b& the 3"rea" or b& the
;e#ional Director with a written notice of s"ch indorse!ent or non-indorse!ent. The indorse!ent or non-
indorse!ent of the ;e#ional Director !a& be appealed to the 3"rea" within ten (,0 workin# da&s fro! receipt of the
notice.
(b The parties !a&% at an& ti!e% b& !"t"al a#ree!ent% withdraw a case fro! the Conciliation $ection and *ointl&
s"b!it it to a Labor +rbiter% except deadlocks in collecti)e bar#ainin#.J (;epealed b& $ection ,6% 3atas Pa!bansa
3ilan# ,40% +"#"st 7,% ,1B,.
ARTICLE 22'. Issuance of subpoenas. - The 3"rea" shall ha)e the power to re'"ire the appearance of an& person
or the prod"ction of an& paper% doc"!ent or !atter rele)ant to a labor disp"te "nder its *"risdiction% either at the
re'"est of an& interested part& or at its own initiati)e.
ARTICLE 2#(. Appointment of bureau personnel. The $ecretar& of Labor and @!plo&!ent !a& appoint% in
addition to the present personnel of the 3"rea" and the 5nd"strial ;elations Di)isions% s"ch n"!ber of exa!iners and
other assistants as !a& be necessar& to carr& o"t the p"rpose of the Code. I+s a!ended b& $ection ,-% ;ep"blic +ct
.o. 6/,-% Aarch 7,% ,1B1J.
ARTICLE 2#". Registry of unions and file of collective bargaining agreements. The 3"rea" shall keep a
re#istr& of le#iti!ate labor or#ani(ations. The 3"rea" shall also !aintain a file of all collecti)e bar#ainin# a#ree!ents
and other related a#ree!ents and records of settle!ent of labor disp"tes and copies of orders and decisions of
)ol"ntar& arbitrators. The file shall be open and accessible to interested parties "nder conditions prescribed b& the
$ecretar& of Labor and @!plo&!ent% pro)ided that no specific infor!ation s"b!itted in confidence shall be disclosed
"nless a"thori(ed b& the $ecretar&% or when it is at iss"e in an& *"dicial liti#ation% or when p"blic interest or national
sec"rit& so re'"ires.
?ithin thirt& (40 da&s fro! the exec"tion of a Collecti)e 3ar#ainin# +#ree!ent% the parties shall s"b!it copies of the
sa!e directl& to the 3"rea" or the ;e#ional 9ffices of the Depart!ent of Labor and @!plo&!ent for re#istration%
acco!panied with )erified proofs of its postin# in two conspic"o"s places in the place of work and ratification b& the
!a*orit& of all the workers in the bar#ainin# "nit. The 3"rea" or ;e#ional 9ffices shall act "pon the application for
re#istration of s"ch Collecti)e 3ar#ainin# +#ree!ent within fi)e (- calendar da&s fro! receipt thereof. The ;e#ional
9ffices shall f"rnish the 3"rea" with a cop& of the Collecti)e 3ar#ainin# +#ree!ent within fi)e (- da&s fro! its
s"b!ission.
The 3"rea" or ;e#ional 9ffice shall assess the e!plo&er for e)er& Collecti)e 3ar#ainin# +#ree!ent a re#istration
fee of not less than one tho"sand pesos (P,%000.00 or in an& other a!o"nt as !a& be dee!ed appropriate and
necessar& b& the $ecretar& of Labor and @!plo&!ent for the effecti)e and efficient ad!inistration of the Dol"ntar&
+rbitration Pro#ra!. +n& a!o"nt collected "nder this pro)ision shall accr"e to the $pecial Dol"ntar& +rbitration 6"nd.
The 3"rea" shall also !aintain a file and shall "ndertake or assist in the p"blication of all final decisions% orders and
awards of the $ecretar& of Labor and @!plo&!ent% ;e#ional Directors and the Co!!ission. (+s a!ended b& $ection
,-% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2#2. $rohibition on certification election. The 3"rea" shall not entertain an& petition for certification
election or an& other action which !a& dist"rb the ad!inistration of d"l& re#istered existin# collecti)e bar#ainin#
a#ree!ents affectin# the parties except "nder +rticles 7-4% 7-4-+ and 7-6 of this Code. (+s a!ended b& $ection ,-%
;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2##. $rivileged communication. 5nfor!ation and state!ents !ade at conciliation proceedin#s shall be
treated as pri)ile#ed co!!"nication and shall not be "sed as e)idence in the Co!!ission. Conciliators and si!ilar
officials shall not testif& in an& co"rt or bod& re#ardin# an& !atters taken "p at conciliation proceedin#s cond"cted b&
the!.
T+t, IV
LABOR ORGANI/ATIONS
Chapt! I
REGISTRATION AND CANCELLATION
ARTICLE 2#4. Re*uirements of registration. +n& applicant labor or#ani(ation% association or #ro"p of "nions or
workers shall ac'"ire le#al personalit& and shall be entitled to the ri#hts and pri)ile#es #ranted b& law to le#iti!ate
labor or#ani(ations "pon iss"ance of the certificate of re#istration based on the followin# re'"ire!ents.
(a 6ift& pesos (P-0.00 re#istration fee>
(b The na!es of its officers% their addresses% the principal address of the labor or#ani(ation% the !in"tes of the
or#ani(ational !eetin#s and the list of the workers who participated in s"ch !eetin#s>
(c The na!es of all its !e!bers co!prisin# at least twent& percent (70: of all the e!plo&ees in the bar#ainin# "nit
where it seeks to operate> (+s a!ended b& @xec"ti)e 9rder .o. ,,,% Dece!ber 72% ,1B6.
(d 5f the applicant "nion has been in existence for one or !ore &ears% copies of its ann"al financial reports> and
(e 6o"r (2 copies of the constit"tion and b&-laws of the applicant "nion% !in"tes of its adoption or ratification% and
the list of the !e!bers who participated in it. (+s a!ended b& 3atas Pa!bansa 3ilan# ,40% +"#"st 7,% ,1B,.
ARTICLE 2#$. Action on application. The 3"rea" shall act on all applications for re#istration within thirt& (40
da&s fro! filin#. +ll re'"isite doc"!ents and papers shall be certified "nder oath b& the secretar& or the treas"rer of
the or#ani(ation% as the case !a& be% and attested to b& its president.
ARTICLE 2#%. Denial of registration. appeal. - The decision of the Labor ;elations Di)ision in the re#ional office
den&in# re#istration !a& be appealed b& the applicant "nion to the 3"rea" within ten (,0 da&s fro! receipt of notice
thereof.
ARTICLE 2#-. Additional re*uirements for federations or national unions. $"b*ect to +rticle 74B% if the
applicant for re#istration is a federation or a national "nion% it shall% in addition to the re'"ire!ents of the precedin#
+rticles% s"b!it the followin#=
(a Proof of the affiliation of at least ten (,0 locals or chapters% each of which !"st be a d"l& reco#ni(ed collecti)e
bar#ainin# a#ent in the establish!ent or ind"str& in which it operates% s"pportin# the re#istration of s"ch applicant
federation or national "nion> and
(b The na!es and addresses of the co!panies where the locals or chapters operate and the list of all the !e!bers
in each co!pan& in)ol)ed.
ARTICLE 2#&. Conditions for registration of federations or national unions5 .o federation or national "nion
shall be re#istered to en#a#e in an& or#ani(ation acti)it& in !ore than one ind"str& in an& area or re#ion% and no
federation or national "nion shall be re#istered to en#a#e in an& or#ani(ational acti)it& in !ore than one ind"str& all
o)er the co"ntr&.
The federation or national "nion which !eets the re'"ire!ents and conditions herein prescribed !a& or#ani(e and
affiliate locals and chapters witho"t re#isterin# s"ch locals or chapters with the 3"rea".
Locals or chapters shall ha)e the sa!e ri#hts and pri)ile#es as if the& were re#istered in the 3"rea"% pro)ided that
s"ch federation or national "nion or#ani(es s"ch locals or chapters within its assi#ned or#ani(ational field of acti)it&
as !a& be prescribed b& the $ecretar& of Labor.
The 3"rea" shall see to it that federations and national "nions shall onl& or#ani(e locals and chapters within a
specific ind"str& or "nion.J (;epealed b& @xec"ti)e 9rder .o. ,,,% Dece!ber 72% ,1B6.
ARTICLE 2#&. Cancellation of registration. appeal. - The certificate of re#istration of an& le#iti!ate labor
or#ani(ation% whether national or local% shall be cancelled b& the 3"rea" if it has reason to belie)e% after d"e hearin#%
that the said labor or#ani(ation no lon#er !eets one or !ore of the re'"ire!ents herein prescribed.
The 3"rea" "pon appro)al of this Code shall i!!ediatel& instit"te cancellation proceedin#s and take s"ch other
steps as !a& be necessar& to restr"ct"re all existin# re#istered labor or#ani(ations in accordance with the ob*ecti)e
en)isioned abo)e.J (;epealed b& @xec"ti)e 9rder .o. ,,,% Dece!ber 72% ,1B6.
ARTICLE 2#'. 6rounds for cancellation of union registration. The followin# shall constit"te #ro"nds for
cancellation of "nion re#istration=
(a Aisrepresentation% false state!ent or fra"d in connection with the adoption or ratification of the constit"tion and
b&-laws or a!end!ents thereto% the !in"tes of ratification and the list of !e!bers who took part in the ratification>
(b 6ail"re to s"b!it the doc"!ents !entioned in the precedin# para#raph within thirt& (40 da&s fro! adoption or
ratification of the constit"tion and b&-laws or a!end!ents thereto>
(c Aisrepresentation% false state!ents or fra"d in connection with the election of officers% !in"tes of the election of
officers% the list of )oters% or fail"re to s"b!it these doc"!ents to#ether with the list of the newl& elected8appointed
officers and their postal addresses within thirt& (40 da&s fro! election>
(d 6ail"re to s"b!it the ann"al financial report to the 3"rea" within thirt& (40 da&s after the closin# of e)er& fiscal
&ear and !isrepresentation% false entries or fra"d in the preparation of the financial report itself>
(e +ctin# as a labor contractor or en#a#in# in the cabo s&ste!% or otherwise en#a#in# in an& acti)it& prohibited b&
law>
(f @nterin# into collecti)e bar#ainin# a#ree!ents which pro)ide ter!s and conditions of e!plo&!ent below !ini!"!
standards established b& law>
(# +skin# for or acceptin# attorne&s fees or ne#otiation fees fro! e!plo&ers>
(h 9ther than for !andator& acti)ities "nder this Code% checkin# off special assess!ents or an& other fees witho"t
d"l& si#ned indi)id"al written a"thori(ations of the !e!bers>
(i 6ail"re to s"b!it list of indi)id"al !e!bers to the 3"rea" once a &ear or whene)er re'"ired b& the 3"rea"> and
(* 6ail"re to co!pl& with re'"ire!ents "nder +rticles 74/ and 74B.
ARTICLE 24(. "*uity of the incumbent. - +ll existin# federations and national "nions which !eet the '"alifications
of a le#iti!ate labor or#ani(ation and none of the #ro"nds for cancellation shall contin"e to !aintain their existin#
affiliates re#ardless of the nat"re of the ind"str& and the location of the affiliates.
Chapt! II
RIGHTS AND CONDITIONS OF MEMBERSHIP
ARTICLE 24". Rights and conditions of membership in a labor organi)ation. The followin# are the ri#hts and
conditions of !e!bership in a labor or#ani(ation=
(a .o arbitrar& or excessi)e initiation fees shall be re'"ired of the !e!bers of a le#iti!ate labor or#ani(ation nor
shall arbitrar&% excessi)e or oppressi)e fine and forfeit"re be i!posed>
(b The !e!bers shall be entitled to f"ll and detailed reports fro! their officers and representati)es of all financial
transactions as pro)ided for in the constit"tion and b&-laws of the or#ani(ation>
(c The !e!bers shall directl& elect their officers% incl"din# those of the national "nion or federation% to which the& or
their "nion is affiliated% b& secret ballot at inter)als of fi)e (- &ears. .o '"alification re'"ire!ents for candidac& to an&
position shall be i!posed other than !e!bership in #ood standin# in s"b*ect labor or#ani(ation. The secretar& or an&
other responsible "nion officer shall f"rnish the $ecretar& of Labor and @!plo&!ent with a list of the newl&-elected
officers% to#ether with the appointi)e officers or a#ents who are entr"sted with the handlin# of f"nds% within thirt& (40
calendar da&s after the election of officers or fro! the occ"rrence of an& chan#e in the list of officers of the labor
or#ani(ation> (+s a!ended b& $ection ,6% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
(d The !e!bers shall deter!ine b& secret ballot% after d"e deliberation% an& '"estion of !a*or polic& affectin# the
entire !e!bership of the or#ani(ation% "nless the nat"re of the or#ani(ation or force !a*e"re renders s"ch secret
ballot i!practical% in which case% the board of directors of the or#ani(ation !a& !ake the decision in behalf of the
#eneral !e!bership>
(e .o labor or#ani(ation shall knowin#l& ad!it as !e!bers or contin"e in !e!bership an& indi)id"al who belon#s to
a s"b)ersi)e or#ani(ation or who is en#a#ed directl& or indirectl& in an& s"b)ersi)e acti)it&>
(f .o person who has been con)icted of a cri!e in)ol)in# !oral t"rpit"de shall be eli#ible for election as a "nion
officer or for appoint!ent to an& position in the "nion>
(# .o officer% a#ent or !e!ber of a labor or#ani(ation shall collect an& fees% d"es% or other contrib"tions in its behalf
or !ake an& disb"rse!ent of its !one& or f"nds "nless he is d"l& a"thori(ed p"rs"ant to its constit"tion and b&-laws>
(h @)er& pa&!ent of fees% d"es or other contrib"tions b& a !e!ber shall be e)idenced b& a receipt si#ned b& the
officer or a#ent !akin# the collection and entered into the record of the or#ani(ation to be kept and !aintained for the
p"rpose>
(i The f"nds of the or#ani(ation shall not be applied for an& p"rpose or ob*ect other than those expressl& pro)ided b&
its constit"tion and b&-laws or those expressl& a"thori(ed b& written resol"tion adopted b& the !a*orit& of the
!e!bers at a #eneral !eetin# d"l& called for the p"rpose>
(* @)er& inco!e or re)en"e of the or#ani(ation shall be e)idenced b& a record showin# its so"rce% and e)er&
expendit"re of its f"nds shall be e)idenced b& a receipt fro! the person to who! the pa&!ent is !ade% which shall
state the date% place and p"rpose of s"ch pa&!ent. $"ch record or receipt shall for! part of the financial records of
the or#ani(ation.
+n& action in)ol)in# the f"nds of the or#ani(ation shall prescribe after three (4 &ears fro! the date of s"b!ission of
the ann"al financial report to the Depart!ent of Labor and @!plo&!ent or fro! the date the sa!e sho"ld ha)e been
s"b!itted as re'"ired b& law% whiche)er co!es earlier= Pro)ided% That this pro)ision shall appl& onl& to a le#iti!ate
labor or#ani(ation which has s"b!itted the financial report re'"ire!ents "nder this Code= Pro)ided% f"rther% that
fail"re of an& labor or#ani(ation to co!pl& with the periodic financial reports re'"ired b& law and s"ch r"les and
re#"lations pro!"l#ated there "nder six (6 !onths after the effecti)it& of this +ct shall a"to!aticall& res"lt in the
cancellation of "nion re#istration of s"ch labor or#ani(ation> (+s a!ended b& $ection ,6% ;ep"blic +ct .o. 6/,-%
Aarch 7,% ,1B1.
(k The officers of an& labor or#ani(ation shall not be paid an& co!pensation other than the salaries and expenses
d"e to their positions as specificall& pro)ided for in its constit"tion and b&-laws% or in a written resol"tion d"l&
a"thori(ed b& a !a*orit& of all the !e!bers at a #eneral !e!bership !eetin# d"l& called for the p"rpose. The
!in"tes of the !eetin# and the list of participants and ballots cast shall be s"b*ect to inspection b& the $ecretar& of
Labor or his d"l& a"thori(ed representati)es. +n& irre#"larities in the appro)al of the resol"tions shall be a #ro"nd for
i!peach!ent or exp"lsion fro! the or#ani(ation>
(l The treas"rer of an& labor or#ani(ation and e)er& officer thereof who is responsible for the acco"nt of s"ch
or#ani(ation or for the collection% !ana#e!ent% disb"rse!ent% c"stod& or control of the f"nds% !one&s and other
properties of the or#ani(ation% shall render to the or#ani(ation and to its !e!bers a tr"e and correct acco"nt of all
!one&s recei)ed and paid b& hi! since he ass"!ed office or since the last da& on which he rendered s"ch acco"nt%
and of all bonds% sec"rities and other properties of the or#ani(ation entr"sted to his c"stod& or "nder his control. The
renderin# of s"ch acco"nt shall be !ade=
(, +t least once a &ear within thirt& (40 da&s after the close of its fiscal &ear>
(7 +t s"ch other ti!es as !a& be re'"ired b& a resol"tion of the !a*orit& of the !e!bers of the or#ani(ation> and
(4 Cpon )acatin# his office.
The acco"nt shall be d"l& a"dited and )erified b& affida)it and a cop& thereof shall be f"rnished the $ecretar& of
Labor.
(! The books of acco"nts and other records of the financial acti)ities of an& labor or#ani(ation shall be open to
inspection b& an& officer or !e!ber thereof d"rin# office ho"rs>
(n .o special assess!ent or other extraordinar& fees !a& be le)ied "pon the !e!bers of a labor or#ani(ation
"nless a"thori(ed b& a written resol"tion of a !a*orit& of all the !e!bers in a #eneral !e!bership !eetin# d"l&
called for the p"rpose. The secretar& of the or#ani(ation shall record the !in"tes of the !eetin# incl"din# the list of
all !e!bers present% the )otes cast% the p"rpose of the special assess!ent or fees and the recipient of s"ch
assess!ent or fees. The record shall be attested to b& the president.
(o 9ther than for !andator& acti)ities "nder the Code% no special assess!ents% attorne&s fees% ne#otiation fees or
an& other extraordinar& fees !a& be checked off fro! an& a!o"nt d"e to an e!plo&ee witho"t an indi)id"al written
a"thori(ation d"l& si#ned b& the e!plo&ee. The a"thori(ation sho"ld specificall& state the a!o"nt% p"rpose and
beneficiar& of the ded"ction> and
(p 5t shall be the d"t& of an& labor or#ani(ation and its officers to infor! its !e!bers on the pro)isions of its
constit"tion and b&-laws% collecti)e bar#ainin# a#ree!ent% the pre)ailin# labor relations s&ste! and all their ri#hts and
obli#ations "nder existin# labor laws.
6or this p"rpose% re#istered labor or#ani(ations !a& assess reasonable d"es to finance labor relations se!inars and
other labor ed"cation acti)ities.
+n& )iolation of the abo)e ri#hts and conditions of !e!bership shall be a #ro"nd for cancellation of "nion re#istration
or exp"lsion of officers fro! office% whiche)er is appropriate. +t least thirt& percent (40: of the !e!bers of a "nion
or an& !e!ber or !e!bers speciall& concerned !a& report s"ch )iolation to the 3"rea". The 3"rea" shall ha)e the
power to hear and decide an& reported )iolation to !ete the appropriate penalt&.
Cri!inal and ci)il liabilities arisin# fro! )iolations of abo)e ri#hts and conditions of !e!bership shall contin"e to be
"nder the *"risdiction of ordinar& co"rts.
Chapt! III
RIGHTS OF LEGITIMATE LABOR ORGANI/ATIONS
ARTICLE 242. Rights of legitimate labor organi)ations. + le#iti!ate labor or#ani(ation shall ha)e the ri#ht=
(a To act as the representati)e of its !e!bers for the p"rpose of collecti)e bar#ainin#>
(b To be certified as the excl"si)e representati)e of all the e!plo&ees in an appropriate bar#ainin# "nit for p"rposes
of collecti)e bar#ainin#>
(c To be f"rnished b& the e!plo&er% "pon written re'"est% with its ann"al a"dited financial state!ents% incl"din# the
balance sheet and the profit and loss state!ent% within thirt& (40 calendar da&s fro! the date of receipt of the
re'"est% after the "nion has been d"l& reco#ni(ed b& the e!plo&er or certified as the sole and excl"si)e bar#ainin#
representati)e of the e!plo&ees in the bar#ainin# "nit% or within sixt& (60 calendar da&s before the expiration of the
existin# collecti)e bar#ainin# a#ree!ent% or d"rin# the collecti)e bar#ainin# ne#otiation>
(d To own propert&% real or personal% for the "se and benefit of the labor or#ani(ation and its !e!bers>
(e To s"e and be s"ed in its re#istered na!e> and
(f To "ndertake all other acti)ities desi#ned to benefit the or#ani(ation and its !e!bers% incl"din# cooperati)e%
ho"sin#% welfare and other pro*ects not contrar& to law.
.otwithstandin# an& pro)ision of a #eneral or special law to the contrar&% the inco!e and the properties of le#iti!ate
labor or#ani(ations% incl"din# #rants% endow!ents% #ifts% donations and contrib"tions the& !a& recei)e fro! fraternal
and si!ilar or#ani(ations% local or forei#n% which are act"all&% directl& and excl"si)el& "sed for their lawf"l p"rposes%
shall be free fro! taxes% d"ties and other assess!ents. The exe!ptions pro)ided herein !a& be withdrawn onl& b& a
special law expressl& repealin# this pro)ision. (+s a!ended b& $ection ,/% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
T+t, V
COVERAGE
ARTICLE 24#. Coverage and employees right to self-organi)ation. +ll persons e!plo&ed in co!!ercial%
ind"strial and a#ric"lt"ral enterprises and in reli#io"s% charitable% !edical% or ed"cational instit"tions% whether
operatin# for profit or not% shall ha)e the ri#ht to self-or#ani(ation and to for!% *oin% or assist labor or#ani(ations of
their own choosin# for p"rposes of collecti)e bar#ainin#. +!b"lant% inter!ittent and itinerant workers% self-e!plo&ed
people% r"ral workers and those witho"t an& definite e!plo&ers !a& for! labor or#ani(ations for their !"t"al aid and
protection. (+s a!ended b& 3atas Pa!bansa 3ilan# /0% Aa& ,% ,1B0.
ARTICLE 244. Right of employees in the public service. @!plo&ees of #o)ern!ent corporations established
"nder the Corporation Code shall ha)e the ri#ht to or#ani(e and to bar#ain collecti)el& with their respecti)e
e!plo&ers. +ll other e!plo&ees in the ci)il ser)ice shall ha)e the ri#ht to for! associations for p"rposes not contrar&
to law. (+s a!ended b& @xec"ti)e 9rder .o. ,,,% Dece!ber 72% ,1B6.
ARTICLE 24$. Ineligibility of managerial employees to !oin any labor organi)ation. right of supervisory
employees. Aana#erial e!plo&ees are not eli#ible to *oin% assist or for! an& labor or#ani(ation. $"per)isor&
e!plo&ees shall not be eli#ible for !e!bership in a labor or#ani(ation of the rank-and-file e!plo&ees b"t !a& *oin%
assist or for! separate labor or#ani(ations of their own. (+s a!ended b& $ection ,B% ;ep"blic +ct .o. 6/,-% Aarch
7,% ,1B1.
ARTICLE 24%. Non-abridgment of right to self-organi)ation. 5t shall be "nlawf"l for an& person to restrain%
coerce% discri!inate a#ainst or "nd"l& interfere with e!plo&ees and workers in their exercise of the ri#ht to self-
or#ani(ation. $"ch ri#ht shall incl"de the ri#ht to for!% *oin% or assist labor or#ani(ations for the p"rpose of collecti)e
bar#ainin# thro"#h representati)es of their own choosin# and to en#a#e in lawf"l concerted acti)ities for the sa!e
p"rpose for their !"t"al aid and protection% s"b*ect to the pro)isions of +rticle 762 of this Code. (+s a!ended b&
3atas Pa!bansa 3ilan# /0% Aa& ,% ,1B0.
T+t, VI
UNFAIR LABOR PRACTICES
Chapt! I
CONCEPT
ARTICLE 24-. Concept of unfair labor practice and procedure for prosecution thereof. Cnfair labor practices
)iolate the constit"tional ri#ht of workers and e!plo&ees to self-or#ani(ation% are ini!ical to the le#iti!ate interests of
both labor and !ana#e!ent% incl"din# their ri#ht to bar#ain collecti)el& and otherwise deal with each other in an
at!osphere of freedo! and !"t"al respect% disr"pt ind"strial peace and hinder the pro!otion of health& and stable
labor-!ana#e!ent relations.
Conse'"entl&% "nfair labor practices are not onl& )iolations of the ci)il ri#hts of both labor and !ana#e!ent b"t are
also cri!inal offenses a#ainst the $tate which shall be s"b*ect to prosec"tion and p"nish!ent as herein pro)ided.
$"b*ect to the exercise b& the President or b& the $ecretar& of Labor and @!plo&!ent of the powers )ested in the!
b& +rticles 764 and 762 of this Code% the ci)il aspects of all cases in)ol)in# "nfair labor practices% which !a& incl"de
clai!s for act"al% !oral% exe!plar& and other for!s of da!a#es% attorne&s fees and other affir!ati)e relief% shall be
"nder the *"risdiction of the Labor +rbiters. The Labor +rbiters shall #i)e "t!ost priorit& to the hearin# and resol"tion
of all cases in)ol)in# "nfair labor practices. The& shall resol)e s"ch cases within thirt& (40 calendar da&s fro! the
ti!e the& are s"b!itted for decision.
;eco)er& of ci)il liabilit& in the ad!inistrati)e proceedin#s shall bar reco)er& "nder the Ci)il Code.
.o cri!inal prosec"tion "nder this Title !a& be instit"ted witho"t a final *"d#!ent findin# that an "nfair labor practice
was co!!itted% ha)in# been first obtained in the precedin# para#raph. D"rin# the pendenc& of s"ch ad!inistrati)e
proceedin#% the r"nnin# of the period of prescription of the cri!inal offense herein penali(ed shall be considered
interr"pted= Pro)ided% howe)er% that the final *"d#!ent in the ad!inistrati)e proceedin#s shall not be bindin# in the
cri!inal case nor be considered as e)idence of #"ilt b"t !erel& as proof of co!pliance of the re'"ire!ents therein
set forth. (+s a!ended b& 3atas Pa!bansa 3ilan# /0% Aa& ,% ,1B0 and later f"rther a!ended b& $ection ,1%
;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
Chapt! II
UNFAIR LABOR PRACTICES OF EMPLOYERS
ARTICLE 24&. 4nfair labor practices of employers. 5t shall be "nlawf"l for an e!plo&er to co!!it an& of the
followin# "nfair labor practice=
(a To interfere with% restrain or coerce e!plo&ees in the exercise of their ri#ht to self-or#ani(ation>
(b To re'"ire as a condition of e!plo&!ent that a person or an e!plo&ee shall not *oin a labor or#ani(ation or shall
withdraw fro! one to which he belon#s>
(c To contract o"t ser)ices or f"nctions bein# perfor!ed b& "nion !e!bers when s"ch will interfere with% restrain or
coerce e!plo&ees in the exercise of their ri#hts to self-or#ani(ation>
(d To initiate% do!inate% assist or otherwise interfere with the for!ation or ad!inistration of an& labor or#ani(ation%
incl"din# the #i)in# of financial or other s"pport to it or its or#ani(ers or s"pporters>
(e To discri!inate in re#ard to wa#es% ho"rs of work and other ter!s and conditions of e!plo&!ent in order to
enco"ra#e or disco"ra#e !e!bership in an& labor or#ani(ation. .othin# in this Code or in an& other law shall stop
the parties fro! re'"irin# !e!bership in a reco#ni(ed collecti)e bar#ainin# a#ent as a condition for e!plo&!ent%
except those e!plo&ees who are alread& !e!bers of another "nion at the ti!e of the si#nin# of the collecti)e
bar#ainin# a#ree!ent. @!plo&ees of an appropriate bar#ainin# "nit who are not !e!bers of the reco#ni(ed
collecti)e bar#ainin# a#ent !a& be assessed a reasonable fee e'"i)alent to the d"es and other fees paid b&
!e!bers of the reco#ni(ed collecti)e bar#ainin# a#ent% if s"ch non-"nion !e!bers accept the benefits "nder the
collecti)e bar#ainin# a#ree!ent= Pro)ided% that the indi)id"al a"thori(ation re'"ired "nder +rticle 727% para#raph (o
of this Code shall not appl& to the non-!e!bers of the reco#ni(ed collecti)e bar#ainin# a#ent>
(f To dis!iss% dischar#e or otherwise pre*"dice or discri!inate a#ainst an e!plo&ee for ha)in# #i)en or bein# abo"t
to #i)e testi!on& "nder this Code>
(# To )iolate the d"t& to bar#ain collecti)el& as prescribed b& this Code>
(h To pa& ne#otiation or attorne&s fees to the "nion or its officers or a#ents as part of the settle!ent of an& iss"e in
collecti)e bar#ainin# or an& other disp"te> or
(i To )iolate a collecti)e bar#ainin# a#ree!ent.
The pro)isions of the precedin# para#raph notwithstandin#% onl& the officers and a#ents of corporations% associations
or partnerships who ha)e act"all& participated in% a"thori(ed or ratified "nfair labor practices shall be held cri!inall&
liable. (+s a!ended b& 3atas Pa!bansa 3ilan# ,40% +"#"st 7,% ,1B,.
Chapt! III
UNFAIR LABOR PRACTICES OF LABOR ORGANI/ATIONS
ARTICLE 24'. 4nfair labor practices of labor organi)ations. 5t shall be "nfair labor practice for a labor
or#ani(ation% its officers% a#ents or representati)es=
(a To restrain or coerce e!plo&ees in the exercise of their ri#ht to self-or#ani(ation. Fowe)er% a labor or#ani(ation
shall ha)e the ri#ht to prescribe its own r"les with respect to the ac'"isition or retention of !e!bership>
(b To ca"se or atte!pt to ca"se an e!plo&er to discri!inate a#ainst an e!plo&ee% incl"din# discri!ination a#ainst
an e!plo&ee with respect to who! !e!bership in s"ch or#ani(ation has been denied or to ter!inate an e!plo&ee
on an& #ro"nd other than the "s"al ter!s and conditions "nder which !e!bership or contin"ation of !e!bership is
!ade a)ailable to other !e!bers>
(c To )iolate the d"t&% or ref"se to bar#ain collecti)el& with the e!plo&er% pro)ided it is the representati)e of the
e!plo&ees>
(d To ca"se or atte!pt to ca"se an e!plo&er to pa& or deli)er or a#ree to pa& or deli)er an& !one& or other thin#s of
)al"e% in the nat"re of an exaction% for ser)ices which are not perfor!ed or not to be perfor!ed% incl"din# the de!and
for fee for "nion ne#otiations>
(e To ask for or accept ne#otiation or attorne&s fees fro! e!plo&ers as part of the settle!ent of an& iss"e in
collecti)e bar#ainin# or an& other disp"te> or
(f To )iolate a collecti)e bar#ainin# a#ree!ent. The pro)isions of the precedin# para#raph notwithstandin#% onl& the
officers% !e!bers of #o)ernin# boards% representati)es or a#ents or !e!bers of labor associations or or#ani(ations
who ha)e act"all& participated in% a"thori(ed or ratified "nfair labor practices shall be held cri!inall& liable. (+s
a!ended b& 3atas Pa!bansa 3ilan# ,40% +"#"st 7,% ,1B,.
T+t, VII
COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS
ARTICLE 2$(. $rocedure in collective bargaining. The followin# proced"res shall be obser)ed in collecti)e
bar#ainin#=
(a ?hen a part& desires to ne#otiate an a#ree!ent% it shall ser)e a written notice "pon the other part& with a
state!ent of its proposals. The other part& shall !ake a repl& thereto not later than ten (,0 calendar da&s fro!
receipt of s"ch notice>
(b $ho"ld differences arise on the basis of s"ch notice and repl&% either part& !a& re'"est for a conference which
shall be#in not later than ten (,0 calendar da&s fro! the date of re'"est.
(c 5f the disp"te is not settled% the 3oard shall inter)ene "pon re'"est of either or both parties or at its own initiati)e
and i!!ediatel& call the parties to conciliation !eetin#s. The 3oard shall ha)e the power to iss"e s"bpoenas
re'"irin# the attendance of the parties to s"ch !eetin#s. 5t shall be the d"t& of the parties to participate f"ll& and
pro!ptl& in the conciliation !eetin#s the 3oard !a& call>
(d D"rin# the conciliation proceedin#s in the 3oard% the parties are prohibited fro! doin# an& act which !a& disr"pt
or i!pede the earl& settle!ent of the disp"tes> and
(e The 3oard shall exert all efforts to settle disp"tes a!icabl& and enco"ra#e the parties to s"b!it their case to a
)ol"ntar& arbitrator. (+s a!ended b& $ection 70% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2$". Duty to bargain collectively in the absence of collective bargaining agreements. 5n the
absence of an a#ree!ent or other )ol"ntar& arran#e!ent pro)idin# for a !ore expeditio"s !anner of collecti)e
bar#ainin#% it shall be the d"t& of e!plo&er and the representati)es of the e!plo&ees to bar#ain collecti)el& in
accordance with the pro)isions of this Code.
ARTICLE 2$2. 'eaning of duty to bargain collectively. - The d"t& to bar#ain collecti)el& !eans the perfor!ance
of a !"t"al obli#ation to !eet and con)ene pro!ptl& and expeditio"sl& in #ood faith for the p"rpose of ne#otiatin# an
a#ree!ent with respect to wa#es% ho"rs of work and all other ter!s and conditions of e!plo&!ent incl"din#
proposals for ad*"stin# an& #rie)ances or '"estions arisin# "nder s"ch a#ree!ent and exec"tin# a contract
incorporatin# s"ch a#ree!ents if re'"ested b& either part& b"t s"ch d"t& does not co!pel an& part& to a#ree to a
proposal or to !ake an& concession.
ARTICLE 2$#. Duty to bargain collectively when there e(ists a collective bargaining agreement. ?hen there
is a collecti)e bar#ainin# a#ree!ent% the d"t& to bar#ain collecti)el& shall also !ean that neither part& shall ter!inate
nor !odif& s"ch a#ree!ent d"rin# its lifeti!e. Fowe)er% either part& can ser)e a written notice to ter!inate or !odif&
the a#ree!ent at least sixt& (60 da&s prior to its expiration date. 5t shall be the d"t& of both parties to keep the stat"s
'"o and to contin"e in f"ll force and effect the ter!s and conditions of the existin# a#ree!ent d"rin# the 60-da&
period and8or "ntil a new a#ree!ent is reached b& the parties.
ARTICLE 2$#*A5 Terms of a collective bargaining agreement. +n& Collecti)e 3ar#ainin# +#ree!ent that the
parties !a& enter into shall% insofar as the representation aspect is concerned% be for a ter! of fi)e (- &ears. .o
petition '"estionin# the !a*orit& stat"s of the inc"!bent bar#ainin# a#ent shall be entertained and no certification
election shall be cond"cted b& the Depart!ent of Labor and @!plo&!ent o"tside of the sixt&-da& period i!!ediatel&
before the date of expir& of s"ch fi)e-&ear ter! of the Collecti)e 3ar#ainin# +#ree!ent. +ll other pro)isions of the
Collecti)e 3ar#ainin# +#ree!ent shall be rene#otiated not later than three (4 &ears after its exec"tion. +n&
a#ree!ent on s"ch other pro)isions of the Collecti)e 3ar#ainin# +#ree!ent entered into within six (6 !onths fro!
the date of expir& of the ter! of s"ch other pro)isions as fixed in s"ch Collecti)e 3ar#ainin# +#ree!ent% shall retroact
to the da& i!!ediatel& followin# s"ch date. 5f an& s"ch a#ree!ent is entered into be&ond six !onths% the parties shall
a#ree on the d"ration of retroacti)it& thereof. 5n case of a deadlock in the rene#otiation of the Collecti)e 3ar#ainin#
+#ree!ent% the parties !a& exercise their ri#hts "nder this Code. (+s a!ended b& $ection 7,% ;ep"blic +ct .o.
6/,-% Aarch 7,% ,1B1.
ARTICLE 2$4. In!unction prohibited. .o te!porar& or per!anent in*"nction or restrainin# order in an& case
in)ol)in# or #rowin# o"t of labor disp"tes shall be iss"ed b& an& co"rt or other entit&% except as otherwise pro)ided in
+rticles 7,B and 762 of this Code. (+s a!ended b& 3atas Pa!bansa 3ilan# 77/% G"ne ,% ,1B7.
ARTICLE 2$$. "(clusive bargaining representation and workers participation in policy and decision-making.
The labor or#ani(ation desi#nated or selected b& the !a*orit& of the e!plo&ees in an appropriate collecti)e
bar#ainin# "nit shall be the excl"si)e representati)e of the e!plo&ees in s"ch "nit for the p"rpose of collecti)e
bar#ainin#. Fowe)er% an indi)id"al e!plo&ee or #ro"p of e!plo&ees shall ha)e the ri#ht at an& ti!e to present
#rie)ances to their e!plo&er.
+n& pro)ision of law to the contrar& notwithstandin#% workers shall ha)e the ri#ht% s"b*ect to s"ch r"les and
re#"lations as the $ecretar& of Labor and @!plo&!ent !a& pro!"l#ate% to participate in polic& and decision-!akin#
processes of the establish!ent where the& are e!plo&ed insofar as said processes will directl& affect their ri#hts%
benefits and welfare. 6or this p"rpose% workers and e!plo&ers !a& for! labor-!ana#e!ent co"ncils= Pro)ided% That
the representati)es of the workers in s"ch labor-!ana#e!ent co"ncils shall be elected b& at least the !a*orit& of all
e!plo&ees in said establish!ent. (+s a!ended b& $ection 77% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2$%. Representation issue in organi)ed establishments. 5n or#ani(ed establish!ents% when a )erified
petition '"estionin# the !a*orit& stat"s of the inc"!bent bar#ainin# a#ent is filed before the Depart!ent of Labor and
@!plo&!ent within the sixt&-da& period before the expiration of the collecti)e bar#ainin# a#ree!ent% the Aed-+rbiter
shall a"to!aticall& order an election b& secret ballot when the )erified petition is s"pported b& the written consent of
at least twent&-fi)e percent (7-: of all the e!plo&ees in the bar#ainin# "nit to ascertain the will of the e!plo&ees in
the appropriate bar#ainin# "nit. To ha)e a )alid election% at least a !a*orit& of all eli#ible )oters in the "nit !"st ha)e
cast their )otes. The labor "nion recei)in# the !a*orit& of the )alid )otes cast shall be certified as the excl"si)e
bar#ainin# a#ent of all the workers in the "nit. ?hen an election which pro)ides for three or !ore choices res"lts in
no choice recei)in# a !a*orit& of the )alid )otes cast% a r"n-off election shall be cond"cted between the labor "nions
recei)in# the two hi#hest n"!ber of )otes= Pro)ided% that the total n"!ber of )otes for all contendin# "nions is at
least fift& percent (-0: of the n"!ber of )otes cast.
+t the expiration of the freedo! period% the e!plo&er shall contin"e to reco#ni(e the !a*orit& stat"s of the inc"!bent
bar#ainin# a#ent where no petition for certification election is filed. (+s a!ended b& $ection 74% ;ep"blic +ct .o.
6/,-% Aarch 7,% ,1B1.
ARTICLE 2$-. $etitions in unorgani)ed establishments. 5n an& establish!ent where there is no certified
bar#ainin# a#ent% a certification election shall a"to!aticall& be cond"cted b& the Aed-+rbiter "pon the filin# of a
petition b& a le#iti!ate labor or#ani(ation. (+s a!ended b& $ection 72% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2$&. 2hen an employer may file petition. ?hen re'"ested to bar#ain collecti)el&% an e!plo&er !a&
petition the 3"rea" for an election. 5f there is no existin# certified collecti)e bar#ainin# a#ree!ent in the "nit% the
3"rea" shall% after hearin#% order a certification election.
+ll certification cases shall be decided within twent& (70 workin# da&s.
The 3"rea" shall cond"ct a certification election within twent& (70 da&s in accordance with the r"les and re#"lations
prescribed b& the $ecretar& of Labor.
ARTICLE 2$'. Appeal from certification election orders. +n& part& to an election !a& appeal the order or
res"lts of the election as deter!ined b& the Aed-+rbiter directl& to the $ecretar& of Labor and @!plo&!ent on the
#ro"nd that the r"les and re#"lations or parts thereof established b& the $ecretar& of Labor and @!plo&!ent for the
cond"ct of the election ha)e been )iolated. $"ch appeal shall be decided within fifteen (,- calendar da&s. (+s
a!ended b& $ection 7-% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
T+t, VII*A
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
ARTICLE 2%(. 6rievance machinery and voluntary arbitration. The parties to a Collecti)e 3ar#ainin#
+#ree!ent shall incl"de therein pro)isions that will ens"re the !"t"al obser)ance of its ter!s and conditions. The&
shall establish a !achiner& for the ad*"st!ent and resol"tion of #rie)ances arisin# fro! the interpretation or
i!ple!entation of their Collecti)e 3ar#ainin# +#ree!ent and those arisin# fro! the interpretation or enforce!ent of
co!pan& personnel policies.
+ll #rie)ances s"b!itted to the #rie)ance !achiner& which are not settled within se)en (/ calendar da&s fro! the
date of its s"b!ission shall a"to!aticall& be referred to )ol"ntar& arbitration prescribed in the Collecti)e 3ar#ainin#
+#ree!ent.
6or this p"rpose% parties to a Collecti)e 3ar#ainin# +#ree!ent shall na!e and desi#nate in ad)ance a Dol"ntar&
+rbitrator or panel of Dol"ntar& +rbitrators% or incl"de in the a#ree!ent a proced"re for the selection of s"ch
Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators% preferabl& fro! the listin# of '"alified Dol"ntar& +rbitrators d"l&
accredited b& the 3oard. 5n case the parties fail to select a Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators% the
3oard shall desi#nate the Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators% as !a& be necessar&% p"rs"ant to the
selection proced"re a#reed "pon in the Collecti)e 3ar#ainin# +#ree!ent% which shall act with the sa!e force and
effect as if the +rbitrator or panel of +rbitrators has been selected b& the parties as described abo)e.
ARTICLE 2%". 7urisdiction of ,oluntary Arbitrators or panel of ,oluntary Arbitrators. The Dol"ntar& +rbitrator
or panel of Dol"ntar& +rbitrators shall ha)e ori#inal and excl"si)e *"risdiction to hear and decide all "nresol)ed
#rie)ances arisin# fro! the interpretation or i!ple!entation of the Collecti)e 3ar#ainin# +#ree!ent and those arisin#
fro! the interpretation or enforce!ent of co!pan& personnel policies referred to in the i!!ediatel& precedin# article.
+ccordin#l&% )iolations of a Collecti)e 3ar#ainin# +#ree!ent% except those which are #ross in character% shall no
lon#er be treated as "nfair labor practice and shall be resol)ed as #rie)ances "nder the Collecti)e 3ar#ainin#
+#ree!ent. 6or p"rposes of this article% #ross )iolations of Collecti)e 3ar#ainin# +#ree!ent shall !ean fla#rant
and8or !alicio"s ref"sal to co!pl& with the econo!ic pro)isions of s"ch a#ree!ent.
The Co!!ission% its ;e#ional 9ffices and the ;e#ional Directors of the Depart!ent of Labor and @!plo&!ent shall
not entertain disp"tes% #rie)ances or !atters "nder the excl"si)e and ori#inal *"risdiction of the Dol"ntar& +rbitrator or
panel of Dol"ntar& +rbitrators and shall i!!ediatel& dispose and refer the sa!e to the <rie)ance Aachiner& or
Dol"ntar& +rbitration pro)ided in the Collecti)e 3ar#ainin# +#ree!ent.
ARTICLE 2%2. 7urisdiction over other labor disputes. - The Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators%
"pon a#ree!ent of the parties% shall also hear and decide all other labor disp"tes incl"din# "nfair labor practices and
bar#ainin# deadlocks.
ARTICLE 2%2*A5 $rocedures. The Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators shall ha)e the power to
hold hearin#s% recei)e e)idences and take whate)er action is necessar& to resol)e the iss"e or iss"es s"b*ect of the
disp"te% incl"din# efforts to effect a )ol"ntar& settle!ent between parties.
+ll parties to the disp"te shall be entitled to attend the arbitration proceedin#s. The attendance of an& third part& or
the excl"sion of an& witness fro! the proceedin#s shall be deter!ined b& the Dol"ntar& +rbitrator or panel of
Dol"ntar& +rbitrators. Fearin# !a& be ad*o"rned for ca"se or "pon a#ree!ent b& the parties.
Cnless the parties a#ree otherwise% it shall be !andator& for the Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators
to render an award or decision within twent& (70 calendar da&s fro! the date of s"b!ission of the disp"te to
)ol"ntar& arbitration.
The award or decision of the Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators shall contain the facts and the law
on which it is based. 5t shall be final and exec"tor& after ten (,0 calendar da&s fro! receipt of the cop& of the award
or decision b& the parties.
Cpon !otion of an& interested part&% the Dol"ntar& +rbitrator or panel of Dol"ntar& +rbitrators or the Labor +rbiter in
the re#ion where the !o)ant resides% in case of the absence or incapacit& of the Dol"ntar& +rbitrator or panel of
Dol"ntar& +rbitrators% for an& reason% !a& iss"e a writ of exec"tion re'"irin# either the sheriff of the Co!!ission or
re#"lar co"rts or an& p"blic official who! the parties !a& desi#nate in the s"b!ission a#ree!ent to exec"te the final
decision% order or award.
ARTICLE 2%2*B. Cost of voluntary arbitration and ,oluntary Arbitrators fee. - The parties to a Collecti)e
3ar#ainin# +#ree!ent shall pro)ide therein a proportionate sharin# sche!e on the cost of )ol"ntar& arbitration
incl"din# the Dol"ntar& +rbitrators fee. The fixin# of fee of Dol"ntar& +rbitrators% whether sho"ldered wholl& b& the
parties or s"bsidi(ed b& the $pecial Dol"ntar& +rbitration 6"nd% shall take into acco"nt the followin# factors=
(a .at"re of the case>
(b Ti!e cons"!ed in hearin# the case>
(c Professional standin# of the Dol"ntar& +rbitrator>
(d Capacit& to pa& of the parties> and
(e 6ees pro)ided for in the ;e)ised ;"les of Co"rt.
T+t, VIII
STRI)ES AND LOC)OUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES
Chapt! I
STRI)ES AND LOC)OUTS
ARTICLE 2%#. trikes/ picketing and lockouts. (a 5t is the polic& of the $tate to enco"ra#e free trade "nionis!
and free collecti)e bar#ainin#.
(b ?orkers shall ha)e the ri#ht to en#a#e in concerted acti)ities for p"rposes of collecti)e bar#ainin# or for their
!"t"al benefit and protection. The ri#ht of le#iti!ate labor or#ani(ations to strike and picket and of e!plo&ers to
locko"t% consistent with the national interest% shall contin"e to be reco#ni(ed and respected. Fowe)er% no labor "nion
!a& strike and no e!plo&er !a& declare a locko"t on #ro"nds in)ol)in# inter-"nion and intra-"nion disp"tes.
(c 5n case of bar#ainin# deadlocks% the d"l& certified or reco#ni(ed bar#ainin# a#ent !a& file a notice of strike or the
e!plo&er !a& file a notice of locko"t with the Ainistr& at least 40 da& before the intended date thereof. 5n cases of
"nfair labor practice% the period of notice shall be ,- da&s and in the absence of a d"l& certified or reco#ni(ed
bar#ainin# a#ent% the notice of strike !a& be filed b& an& le#iti!ate labor or#ani(ation in behalf of its !e!bers.
Fowe)er% in case of dis!issal fro! e!plo&!ent of "nion officers d"l& elected in accordance with the "nion
constit"tion and b&-laws% which !a& constit"te "nion b"stin#% where the existence of the "nion is threatened% the ,--
da& coolin#-off period shall not appl& and the "nion !a& take action i!!ediatel&. (+s a!ended b& @xec"ti)e 9rder
.o. ,,,% Dece!ber 72% ,1B6.
(d The notice !"st be in accordance with s"ch i!ple!entin# r"les and re#"lations as the Ainister of Labor and
@!plo&!ent !a& pro!"l#ate.
(e D"rin# the coolin#-off period% it shall be the d"t& of the Ainistr& to exert all efforts at !ediation and conciliation to
effect a )ol"ntar& settle!ent. $ho"ld the disp"te re!ain "nsettled "ntil the lapse of the re'"isite n"!ber of da&s fro!
the !andator& filin# of the notice% the labor "nion !a& strike or the e!plo&er !a& declare a locko"t.
(f + decision to declare a strike !"st be appro)ed b& a !a*orit& of the total "nion !e!bership in the bar#ainin# "nit
concerned% obtained b& secret ballot in !eetin#s or referenda called for that p"rpose. + decision to declare a locko"t
!"st be appro)ed b& a !a*orit& of the board of directors of the corporation or association or of the partners in
a partnership% obtained b& secret ballot in a !eetin# called for that p"rpose. The decision shall be )alid for the
d"ration of the disp"te based on s"bstantiall& the sa!e #ro"nds considered when the strike or locko"t )ote was
taken. The Ainistr& !a&% at its own initiati)e or "pon the re'"est of an& affected part&% s"per)ise the cond"ct of the
secret ballotin#. 5n e)er& case% the "nion or the e!plo&er shall f"rnish the Ainistr& the res"lts of the )otin# at least
se)en da&s before the intended strike or locko"t% s"b*ect to the coolin#-off period herein pro)ided. (+s a!ended b&
3atas Pa!bansa 3ilan# ,40% +"#"st 7,% ,1B, and f"rther a!ended b& @xec"ti)e 9rder .o. ,,,% Dece!ber 72%
,1B6.
(# ?hen% in his opinion% there exists a labor disp"te ca"sin# or likel& to ca"se a strike or locko"t in an ind"str&
indispensable to the national interest% the $ecretar& of Labor and @!plo&!ent !a& ass"!e *"risdiction o)er the
disp"te and decide it or certif& the sa!e to the Co!!ission for co!p"lsor& arbitration. $"ch ass"!ption or
certification shall ha)e the effect of a"to!aticall& en*oinin# the intended or i!pendin# strike or locko"t as specified in
the ass"!ption or certification order. 5f one has alread& taken place at the ti!e of ass"!ption or certification% all
strikin# or locked o"t e!plo&ees shall i!!ediatel& ret"rn-to-work and the e!plo&er shall i!!ediatel& res"!e
operations and read!it all workers "nder the sa!e ter!s and conditions pre)ailin# before the strike or locko"t. The
$ecretar& of Labor and @!plo&!ent or the Co!!ission !a& seek the assistance of law enforce!ent a#encies to
ens"re co!pliance with this pro)ision as well as with s"ch orders as he !a& iss"e to enforce the sa!e.
5n line with the national concern for and the hi#hest respect accorded to the ri#ht of patients to life and health% strikes
and locko"ts in hospitals% clinics and si!ilar !edical instit"tions shall% to e)er& extent possible% be a)oided% and all
serio"s efforts% not onl& b& labor and !ana#e!ent b"t #o)ern!ent as well% be exha"sted to s"bstantiall& !ini!i(e% if
not pre)ent% their ad)erse effects on s"ch life and health% thro"#h the exercise% howe)er le#iti!ate% b& labor of its
ri#ht to strike and b& !ana#e!ent to locko"t. 5n labor disp"tes ad)ersel& affectin# the contin"ed operation of s"ch
hospitals% clinics or !edical instit"tions% it shall be the d"t& of the strikin# "nion or lockin#-o"t e!plo&er to pro)ide and
!aintain an effecti)e skeletal workforce of !edical and other health personnel% whose !o)e!ent and ser)ices shall
be "nha!pered and "nrestricted% as are necessar& to ins"re the proper and ade'"ate protection of the life and health
of its patients% !ost especiall& e!er#enc& cases% for the d"ration of the strike or locko"t. 5n s"ch cases% therefore% the
$ecretar& of Labor and @!plo&!ent !a& i!!ediatel& ass"!e% within twent& fo"r (72 ho"rs fro! knowled#e of the
occ"rrence of s"ch a strike or locko"t% *"risdiction o)er the sa!e or certif& it to the Co!!ission for co!p"lsor&
arbitration. 6or this p"rpose% the contendin# parties are strictl& en*oined to co!pl& with s"ch orders% prohibitions
and8or in*"nctions as are iss"ed b& the $ecretar& of Labor and @!plo&!ent or the Co!!ission% "nder pain of
i!!ediate disciplinar& action% incl"din# dis!issal or loss of e!plo&!ent stat"s or pa&!ent b& the lockin#-o"t
e!plo&er of backwa#es% da!a#es and other affir!ati)e relief% e)en cri!inal prosec"tion a#ainst either or both of
the!.
The fore#oin# notwithstandin#% the President of the Philippines shall not be precl"ded fro! deter!inin# the ind"stries
that% in his opinion% are indispensable to the national interest% and fro! inter)enin# at an& ti!e and ass"!in#
*"risdiction o)er an& s"ch labor disp"te in order to settle or ter!inate the sa!e.
(h 3efore or at an& sta#e of the co!p"lsor& arbitration process% the parties !a& opt to s"b!it their disp"te to
)ol"ntar& arbitration.
(i The $ecretar& of Labor and @!plo&!ent% the Co!!ission or the )ol"ntar& arbitrator shall decide or resol)e the
disp"te% as the case !a& be. The decision of the President% the $ecretar& of Labor and @!plo&!ent% the Co!!ission
or the )ol"ntar& arbitrator shall be final and exec"tor& ten (,0 calendar da&s after receipt thereof b& the parties. (+s
a!ended b& $ection 7/% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2%4. $rohibited activities. (a .o labor or#ani(ation or e!plo&er shall declare a strike or locko"t witho"t
first ha)in# bar#ained collecti)el& in accordance with Title D55 of this 3ook or witho"t first ha)in# filed the notice
re'"ired in the precedin# +rticle or witho"t the necessar& strike or locko"t )ote first ha)in# been obtained and
reported to the Ainistr&.
.o strike or locko"t shall be declared after ass"!ption of *"risdiction b& the President or the Ainister or after
certification or s"b!ission of the disp"te to co!p"lsor& or )ol"ntar& arbitration or d"rin# the pendenc& of cases
in)ol)in# the sa!e #ro"nds for the strike or locko"t.
+n& worker whose e!plo&!ent has been ter!inated as a conse'"ence of an& "nlawf"l locko"t shall be entitled to
reinstate!ent with f"ll backwa#es. +n& "nion officer who knowin#l& participates in an ille#al strike and an& worker or
"nion officer who knowin#l& participates in the co!!ission of ille#al acts d"rin# a strike !a& be declared to ha)e lost
his e!plo&!ent stat"s= Pro)ided% That !ere participation of a worker in a lawf"l strike shall not constit"te s"fficient
#ro"nd for ter!ination of his e!plo&!ent% e)en if a replace!ent had been hired b& the e!plo&er d"rin# s"ch lawf"l
strike.
(b .o person shall obstr"ct% i!pede% or interfere with% b& force% )iolence% coercion% threats or inti!idation% an&
peacef"l picketin# b& e!plo&ees d"rin# an& labor contro)ers& or in the exercise of the ri#ht to self-or#ani(ation or
collecti)e bar#ainin#% or shall aid or abet s"ch obstr"ction or interference.
(c .o e!plo&er shall "se or e!plo& an& strike-breaker% nor shall an& person be e!plo&ed as a strike-breaker.
(d .o p"blic official or e!plo&ee% incl"din# officers and personnel of the .ew +r!ed 6orces of the Philippines or the
5nte#rated .ational Police% or ar!ed person% shall brin# in% introd"ce or escort in an& !anner% an& indi)id"al who
seeks to replace strikers in enterin# or lea)in# the pre!ises of a strike area% or work in place of the strikers. The
police force shall keep o"t of the picket lines "nless act"al )iolence or other cri!inal acts occ"r therein= Pro)ided%
That nothin# herein shall be interpreted to pre)ent an& p"blic officer fro! takin# an& !eas"re necessar& to !aintain
peace and order% protect life and propert&% and8or enforce the law and le#al order. (+s a!ended b& @xec"ti)e 9rder
.o. ,,,% Dece!ber 72% ,1B6.
(e .o person en#a#ed in picketin# shall co!!it an& act of )iolence% coercion or inti!idation or obstr"ct the free
in#ress to or e#ress fro! the e!plo&ers pre!ises for lawf"l p"rposes% or obstr"ct p"blic thoro"#hfares. (+s a!ended
b& 3atas Pa!bansa 3ilan# 77/% G"ne ,% ,1B7.
ARTICLE 2%$. Improved offer balloting. 5n an effort to settle a strike% the Depart!ent of Labor and @!plo&!ent
shall cond"ct a referend"! b& secret ballot on the i!pro)ed offer of the e!plo&er on or before the 40th da& of the
strike. ?hen at least a !a*orit& of the "nion !e!bers )ote to accept the i!pro)ed offer the strikin# workers shall
i!!ediatel& ret"rn to work and the e!plo&er shall there"pon read!it the! "pon the si#nin# of the a#ree!ent.
5n case of a locko"t% the Depart!ent of Labor and @!plo&!ent shall also cond"ct a referend"! b& secret ballotin# on
the red"ced offer of the "nion on or before the 40th da& of the locko"t. ?hen at least a !a*orit& of the board of
directors or tr"stees or the partners holdin# the controllin# interest in the case of a partnership )ote to accept the
red"ced offer% the workers shall i!!ediatel& ret"rn to work and the e!plo&er shall there"pon read!it the! "pon the
si#nin# of the a#ree!ent. (5ncorporated b& $ection 7B% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2%%. Re*uirement for arrest and detention. @xcept on #ro"nds of national sec"rit& and p"blic peace or
in case of co!!ission of a cri!e% no "nion !e!bers or "nion or#ani(ers !a& be arrested or detained for "nion
acti)ities witho"t pre)io"s cons"ltations with the $ecretar& of Labor.
Chapt! II
ASSISTANCE TO LABOR ORGANI/ATIONS
ARTICLE 2%-. Assistance by the Department of 1abor. The Depart!ent of Labor% at the initiati)e of the
$ecretar& of Labor% shall extend special assistance to the or#ani(ation% for p"rposes of collecti)e bar#ainin#% of the
!ost "nderpri)ile#ed workers who% for reasons of occ"pation% or#ani(ational str"ct"re or ins"fficient inco!es% are not
nor!all& co)ered b& !a*or labor or#ani(ations or federations.
ARTICLE 2%&. Assistance by the Institute of 1abor and 'anpower tudies. - The 5nstit"te of Labor and
Aanpower $t"dies shall render technical and other for!s of assistance to labor or#ani(ations and e!plo&er
or#ani(ations in the field of labor ed"cation% especiall& pertainin# to collecti)e bar#ainin#% arbitration% labor standards
and the Labor Code of the Philippines in #eneral.
Chapt! III
FOREIGN ACTIVITIES
ARTICLE 2%'. $rohibition against aliens. e(ceptions. +ll aliens% nat"ral or *"ridical% as well as forei#n
or#ani(ations are strictl& prohibited fro! en#a#in# directl& or indirectl& in all for!s of trade "nion acti)ities witho"t
pre*"dice to nor!al contacts between Philippine labor "nions and reco#ni(ed international labor centers= Pro)ided%
howe)er% That aliens workin# in the co"ntr& with )alid per!its iss"ed b& the Depart!ent of Labor and @!plo&!ent%
!a& exercise the ri#ht to self-or#ani(ation and *oin or assist labor or#ani(ations of their own choosin# for p"rposes of
collecti)e bar#ainin#= Pro)ided% f"rther% That said aliens are nationals of a co"ntr& which #rants the sa!e or si!ilar
ri#hts to 6ilipino workers. (+s a!ended b& $ection 71% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2-(. Regulation of foreign assistance. (a .o forei#n indi)id"al% or#ani(ation or entit& !a& #i)e an&
donations% #rants or other for!s of assistance% in cash or in kind% directl& or indirectl&% to an& labor or#ani(ation%
#ro"p of workers or an& a"xiliar& thereof% s"ch as cooperati)es% credit "nions and instit"tions en#a#ed in research%
ed"cation or co!!"nication% in relation to trade "nion acti)ities% witho"t prior per!ission b& the $ecretar& of Labor.
Trade "nion acti)ities shall !ean=
(, or#ani(ation% for!ation and ad!inistration of labor or#ani(ation>
(7 ne#otiation and ad!inistration of collecti)e bar#ainin# a#ree!ents>
(4 all for!s of concerted "nion action>
(2 or#ani(in#% !ana#in#% or assistin# "nion con)entions% !eetin#s% rallies% referenda% teach-ins% se!inars%
conferences and instit"tes>
(- an& for! of participation or in)ol)e!ent in representation proceedin#s% representation elections% consent
elections% "nion elections> and
(6 other acti)ities or actions analo#o"s to the fore#oin#.
(b This prohibition shall e'"all& appl& to forei#n donations% #rants or other for!s of assistance% in cash or in kind%
#i)en directl& or indirectl& to an& e!plo&er or e!plo&ers or#ani(ation to s"pport an& acti)it& or acti)ities affectin#
trade "nions.
(c The $ecretar& of Labor shall pro!"l#ate r"les and re#"lations to re#"late and control the #i)in# and recei)in# of
s"ch donations% #rants% or other for!s of assistance% incl"din# the !andator& reportin# of the a!o"nts of the
donations or #rants% the specific recipients thereof% the pro*ects or acti)ities proposed to be s"pported% and their
d"ration.
ARTICLE 2-". Applicability to farm tenants and rural workers. The pro)isions of this Title pertainin# to forei#n
or#ani(ations and acti)ities shall be dee!ed applicable likewise to all or#ani(ations of far! tenants% r"ral workers%
and the like= Pro)ided% That in appropriate cases% the $ecretar& of +#rarian ;efor! shall exercise the powers and
responsibilities )ested b& this Title in the $ecretar& of Labor.
Chapt! IV
PENALTIES FOR VIOLATION
ARTICLE 2-2. $enalties. (a +n& person )iolatin# an& of the pro)isions of +rticle 762 of this Code shall be
p"nished b& a fine of not less than one tho"sand pesos (P,%000.00 nor !ore than ten tho"sand pesos (P,0%000.00
and8or i!prison!ent for not less than three !onths nor !ore than three (4 &ears% or both s"ch fine and
i!prison!ent% at the discretion of the co"rt. Prosec"tion "nder this pro)ision shall precl"de prosec"tion for the sa!e
act "nder the ;e)ised Penal Code% and )ice )ersa.
(b Cpon the reco!!endation of the Ainister of Labor and @!plo&!ent and the Ainister of .ational Defense%
forei#ners who )iolate the pro)isions of this Title shall be s"b*ect to i!!ediate and s"!!ar& deportation b& the
Co!!ission on 5!!i#ration and Deportation and shall be per!anentl& barred fro! re-enterin# the co"ntr& witho"t
the special per!ission of the President of the Philippines. (+s a!ended b& $ection ,6% 3atas Pa!bansa 3ilan# ,40
and $ection /% 3atas Pa!bansa 3ilan# 77/.
T+t, I.
SPECIAL PROVISIONS
ARTICLE 2-#. tudy of labor-management relations. The $ecretar& of Labor shall ha)e the power and it shall
be his d"t& to in'"ire into=
(a the existin# relations between e!plo&ers and e!plo&ees in the Philippines>
(b the #rowth of associations of e!plo&ees and the effect of s"ch associations "pon e!plo&er-e!plo&ee relations>
(c the extent and res"lts of the !ethods of collecti)e bar#ainin# in the deter!ination of ter!s and conditions of
e!plo&!ent>
(d the !ethods which ha)e been tried b& e!plo&ers and associations of e!plo&ees for !aintainin# !"t"all&
satisfactor& relations>
(e desirable ind"strial practices which ha)e been de)eloped thro"#h collecti)e bar#ainin# and other )ol"ntar&
arran#e!ents>
(f the possible wa&s of increasin# the "sef"lness and efficienc& of collecti)e bar#ainin# for settlin# differences>
(# the possibilities for the adoption of practical and effecti)e !ethods of labor-!ana#e!ent cooperation>
(h an& other aspects of e!plo&er-e!plo&ee relations concernin# the pro!otion of har!on& and "nderstandin#
between the parties> and
(i the rele)ance of labor laws and labor relations to national de)elop!ent.
The $ecretar& of Labor shall also in'"ire into the ca"ses of ind"strial "nrest and take all the necessar& steps within
his power as !a& be prescribed b& law to alle)iate the sa!e% and shall fro! ti!e to ti!e reco!!end the enact!ent
of s"ch re!edial le#islation as in his *"d#!ent !a& be desirable for the !aintenance and pro!otion of ind"strial
peace.
ART. 2-4. ,isitorial power. The $ecretar& of Labor and @!plo&!ent or his d"l& a"thori(ed representati)e is
hereb& e!powered to in'"ire into the financial acti)ities of le#iti!ate labor or#ani(ations "pon the filin# of a co!plaint
"nder oath and d"l& s"pported b& the written consent of at least twent& percent (70: of the total !e!bership of the
labor or#ani(ation concerned and to exa!ine their books of acco"nts and other records to deter!ine co!pliance or
non-co!pliance with the law and to prosec"te an& )iolations of the law and the "nion constit"tion and b&-laws=
Pro)ided% That s"ch in'"ir& or exa!ination shall not be cond"cted d"rin# the sixt& (60-da& freedo! period nor within
the thirt& (40 da&s i!!ediatel& precedin# the date of election of "nion officials. (+s a!ended b& $ection 4,%
;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2-$. Tripartism and tripartite conferences. (a Tripartis! in labor relations is hereb& declared a $tate
polic&. Towards this end% workers and e!plo&ers shall% as far as practicable% be represented in decision and polic&-
!akin# bodies of the #o)ern!ent.
(b The $ecretar& of Labor and @!plo&!ent or his d"l& a"thori(ed representati)es !a&% fro! ti!e to ti!e% call a
national% re#ional% or ind"strial tripartite conference of representati)es of #o)ern!ent% workers and e!plo&ers for the
consideration and adoption of )ol"ntar& codes of principles desi#ned to pro!ote ind"strial peace based on social
*"stice or to ali#n labor !o)e!ent relations with established priorities in econo!ic and social de)elop!ent. 5n callin#
s"ch conference% the $ecretar& of Labor and @!plo&!ent !a& cons"lt with accredited representati)es of workers
and e!plo&ers. (+s a!ended b& $ection 47% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2-%. 6overnment employees. The ter!s and conditions of e!plo&!ent of all #o)ern!ent e!plo&ees%
incl"din# e!plo&ees of #o)ern!ent-owned and controlled corporations% shall be #o)erned b& the Ci)il $er)ice Law%
r"les and re#"lations. Their salaries shall be standardi(ed b& the .ational +sse!bl& as pro)ided for in the .ew
Constit"tion. Fowe)er% there shall be no red"ction of existin# wa#es% benefits and other ter!s and conditions of
e!plo&!ent bein# en*o&ed b& the! at the ti!e of the adoption of this Code.
ARTICLE 2--. 'iscellaneous provisions. (a +ll "nions are a"thori(ed to collect reasonable !e!bership fees%
"nion d"es% assess!ents and fines and other contrib"tions for labor ed"cation and research% !"t"al death and
hospitali(ation benefits% welfare f"nd% strike f"nd and credit and cooperati)e "ndertakin#s. (+s a!ended b& $ection
44% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
(b $"b*ect to the constit"tional ri#ht of workers to sec"rit& of ten"re and their ri#ht to be protected a#ainst dis!issal
except for a *"st and a"thori(ed ca"se and witho"t pre*"dice to the re'"ire!ent of notice "nder +rticle 7B4 of this
Code% the e!plo&er shall f"rnish the worker whose e!plo&!ent is so"#ht to be ter!inated a written notice containin#
a state!ent of the ca"ses for ter!ination and shall afford the latter a!ple opport"nit& to be heard and to defend
hi!self with the assistance of his representati)e if he so desires in accordance with co!pan& r"les and re#"lations
pro!"l#ated p"rs"ant to #"idelines set b& the Depart!ent of Labor and @!plo&!ent. +n& decision taken b& the
e!plo&er shall be witho"t pre*"dice to the ri#ht of the worker to contest the )alidit& or le#alit& of his dis!issal b& filin#
a co!plaint with the re#ional branch of the .ational Labor ;elations Co!!ission. The b"rden of pro)in# that the
ter!ination was for a )alid or a"thori(ed ca"se shall rest on the e!plo&er. The $ecretar& of the Depart!ent of Labor
and @!plo&!ent !a& s"spend the effects of the ter!ination pendin# resol"tion of the disp"te in the e)ent of a pri!a
facie findin# b& the appropriate official of the Depart!ent of Labor and @!plo&!ent before who! s"ch disp"te is
pendin# that the ter!ination !a& ca"se a serio"s labor disp"te or is in i!ple!entation of a !ass la&-off. (+s
a!ended b& $ection 44% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
(c +n& e!plo&ee% whether e!plo&ed for a definite period or not% shall% be#innin# on his first da& of ser)ice% be
considered as an e!plo&ee for p"rposes of !e!bership in an& labor "nion. (+s a!ended b& $ection 44% ;ep"blic
+ct .o. 6/,-.
(d .o docket fee shall be assessed in labor standards disp"tes. 5n all other disp"tes% docket fees !a& be assessed
a#ainst the filin# part&% pro)ided that in bar#ainin# deadlock% s"ch fees shall be shared e'"all& b& the ne#otiatin#
parties.
(e The Ainister of Labor and @!plo&!ent and the Ainister of the 3"d#et shall ca"se to be created or reclassified in
accordance with law s"ch positions as !a& be necessar& to carr& o"t the ob*ecti)es of this Code and ca"se the
"p#radin# of the salaries of the personnel in)ol)ed in the Labor ;elations $&ste! of the Ainistr&. 6"nds needed for
this p"rpose shall be pro)ided o"t of the $pecial +cti)ities 6"nd appropriated b& 3atas Pa!bansa 3l#. B0 and fro!
ann"al appropriations thereafter. (5ncorporated b& 3atas Pa!bansa 3ilan# ,40% +"#"st 7,% ,1B,.
(f + special Dol"ntar& +rbitration 6"nd is hereb& established in the 3oard to s"bsidi(e the cost of )ol"ntar&
arbitration in cases in)ol)in# the interpretation and i!ple!entation of the Collecti)e 3ar#ainin# +#ree!ent% incl"din#
the +rbitrators fees% and for s"ch other related p"rposes to pro!ote and de)elop )ol"ntar& arbitration. The 3oard
shall ad!inister the $pecial Dol"ntar& +rbitration 6"nd in accordance with the #"idelines it !a& adopt "pon the
reco!!endation of the Co"ncil% which #"idelines shall be s"b*ect to the appro)al of the $ecretar& of Labor and
@!plo&!ent. Contin"in# f"nds needed for this p"rpose in the initial &earl& a!o"nt of fifteen !illion pesos
(P,-%000%000.00 shall be pro)ided in the ,1B1 ann"al #eneral appropriations acts.
The a!o"nt of s"bsid& in appropriate cases shall be deter!ined b& the 3oard in accordance with established
#"idelines iss"ed b& it "pon the reco!!endation of the Co"ncil.
The 6"nd shall also be "tili(ed for the operation of the Co"ncil% the trainin# and ed"cation of Dol"ntar& +rbitrators%
and the Dol"ntar& +rbitration Pro#ra!. (+s a!ended b& $ection 44% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
(# The Ainistr& shall help pro!ote and #rad"all& de)elop% with the a#ree!ent of labor or#ani(ations and e!plo&ers%
labor-!ana#e!ent cooperation pro#ra!s at appropriate le)els of the enterprise based on the shared responsibilit&
and !"t"al respect in order to ens"re ind"strial peace and i!pro)e!ent in prod"cti)it&% workin# conditions and the
'"alit& of workin# life. (5ncorporated b& 3atas Pa!bansa 3ilan# ,40% +"#"st 7,% ,1B,.
(h 5n establish!ents where no le#iti!ate labor or#ani(ation exists% labor-!ana#e!ent co!!ittees !a& be for!ed
)ol"ntaril& b& workers and e!plo&ers for the p"rpose of pro!otin# ind"strial peace. The Depart!ent of Labor and
@!plo&!ent shall endea)or to enli#hten and ed"cate the workers and e!plo&ers on their ri#hts and responsibilities
thro"#h labor ed"cation with e!phasis on the polic& thr"sts of this Code. (+s a!ended b& $ection 44% ;ep"blic +ct
.o. 6/,-% Aarch 7,% ,1B1.
(i To ens"re speed& labor *"stice% the periods pro)ided in this Code within which decisions or resol"tions of labor
relations cases or !atters sho"ld be rendered shall be !andator&. 6or this p"rpose% a case or !atter shall be
dee!ed s"b!itted for decision or resol"tion "pon the filin# of the last pleadin# or !e!orand"! re'"ired b& the r"les
of the Co!!ission or b& the Co!!ission itself% or the Labor +rbiter% or the Director of the 3"rea" of Labor ;elations
or Aed-+rbiter% or the ;e#ional Director.
Cpon expiration of the correspondin# period% a certification statin# wh& a decision or resol"tion has not been
rendered within the said period shall be iss"ed forthwith b& the Chair!an of the Co!!ission% the @xec"ti)e Labor
+rbiter% or the Director of the 3"rea" of Labor ;elations or Aed-+rbiter% or the ;e#ional Director% as the case !a& be%
and a cop& thereof ser)ed "pon the parties.
Despite the expiration of the applicable !andator& period% the aforesaid officials shall% witho"t pre*"dice to an& liabilit&
which !a& ha)e been inc"rred as a conse'"ence thereof% see to it that the case or !atter shall be decided or
resol)ed witho"t an& f"rther dela&. (5ncorporated b& $ection 44% ;ep"blic +ct .o. 6/,-% Aarch 7,% ,1B1.
BOO) SI.
POST EMPLOYMENT
T+t, I
TERMINATION OF EMPLOYMENT
ARTICLE 2-&. Coverage. The pro)isions of this Title shall appl& to all establish!ents or "ndertakin#s% whether for
profit or not.
ARTICLE 2-'. ecurity of tenure. 5n cases of re#"lar e!plo&!ent% the e!plo&er shall not ter!inate the ser)ices
of an e!plo&ee except for a *"st ca"se or when a"thori(ed b& this Title. +n e!plo&ee who is "n*"stl& dis!issed fro!
work shall be entitled to reinstate!ent witho"t loss of seniorit& ri#hts and other pri)ile#es and to his f"ll backwa#es%
incl"si)e of allowances% and to his other benefits or their !onetar& e'"i)alent co!p"ted fro! the ti!e his
co!pensation was withheld fro! hi! "p to the ti!e of his act"al reinstate!ent. (+s a!ended b& $ection 42% ;ep"blic
+ct .o. 6/,-% Aarch 7,% ,1B1.
ARTICLE 2&(. Regular and casual employment. The pro)isions of written a#ree!ent to the contrar&
notwithstandin# and re#ardless of the oral a#ree!ent of the parties% an e!plo&!ent shall be dee!ed to be re#"lar
where the e!plo&ee has been en#a#ed to perfor! acti)ities which are "s"all& necessar& or desirable in the "s"al
b"siness or trade of the e!plo&er% except where the e!plo&!ent has been fixed for a specific pro*ect or "ndertakin#
the co!pletion or ter!ination of which has been deter!ined at the ti!e of the en#a#e!ent of the e!plo&ee or where
the work or ser)ice to be perfor!ed is seasonal in nat"re and the e!plo&!ent is for the d"ration of the season.
+n e!plo&!ent shall be dee!ed to be cas"al if it is not co)ered b& the precedin# para#raph= Pro)ided% That an&
e!plo&ee who has rendered at least one &ear of ser)ice% whether s"ch ser)ice is contin"o"s or broken% shall be
considered a re#"lar e!plo&ee with respect to the acti)it& in which he is e!plo&ed and his e!plo&!ent shall contin"e
while s"ch acti)it& exists.
ARTICLE 2&". $robationary employment. Probationar& e!plo&!ent shall not exceed six (6 !onths fro! the
date the e!plo&ee started workin#% "nless it is co)ered b& an apprenticeship a#ree!ent stip"latin# a lon#er period.
The ser)ices of an e!plo&ee who has been en#a#ed on a probationar& basis !a& be ter!inated for a *"st ca"se or
when he fails to '"alif& as a re#"lar e!plo&ee in accordance with reasonable standards !ade known b& the
e!plo&er to the e!plo&ee at the ti!e of his en#a#e!ent. +n e!plo&ee who is allowed to work after a probationar&
period shall be considered a re#"lar e!plo&ee.
ARTICLE 2&2. Termination by employer. +n e!plo&er !a& ter!inate an e!plo&!ent for an& of the followin#
ca"ses=
(a $erio"s !iscond"ct or willf"l disobedience b& the e!plo&ee of the lawf"l orders of his e!plo&er or representati)e
in connection with his work>
(b <ross and habit"al ne#lect b& the e!plo&ee of his d"ties>
(c 6ra"d or willf"l breach b& the e!plo&ee of the tr"st reposed in hi! b& his e!plo&er or d"l& a"thori(ed
representati)e>
(d Co!!ission of a cri!e or offense b& the e!plo&ee a#ainst the person of his e!plo&er or an& i!!ediate !e!ber
of his fa!il& or his d"l& a"thori(ed representati)es> and
(e 9ther ca"ses analo#o"s to the fore#oin#.
ARTICLE 2&#. Closure of establishment and reduction of personnel. - The e!plo&er !a& also ter!inate the
e!plo&!ent of an& e!plo&ee d"e to the installation of labor-sa)in# de)ices% red"ndanc&% retrench!ent to pre)ent
losses or the closin# or cessation of operation of the establish!ent or "ndertakin# "nless the closin# is for the
p"rpose of circ"!)entin# the pro)isions of this Title% b& ser)in# a written notice on the workers and the Ainistr& of
Labor and @!plo&!ent at least one (, !onth before the intended date thereof. 5n case of ter!ination d"e to the
installation of labor-sa)in# de)ices or red"ndanc&% the worker affected thereb& shall be entitled to a separation pa&
e'"i)alent to at least his one (, !onth pa& or to at least one (, !onth pa& for e)er& &ear of ser)ice% whiche)er is
hi#her. 5n case of retrench!ent to pre)ent losses and in cases of clos"res or cessation of operations of establish!ent
or "ndertakin# not d"e to serio"s b"siness losses or financial re)erses% the separation pa& shall be e'"i)alent to one
(, !onth pa& or at least one-half (,87 !onth pa& for e)er& &ear of ser)ice% whiche)er is hi#her. + fraction of at least
six (6 !onths shall be considered one (, whole &ear.
ARTICLE 2&4. Disease as ground for termination. +n e!plo&er !a& ter!inate the ser)ices of an e!plo&ee who
has been fo"nd to be s"fferin# fro! an& disease and whose contin"ed e!plo&!ent is prohibited b& law or is
pre*"dicial to his health as well as to the health of his co-e!plo&ees= Pro)ided% That he is paid separation pa&
e'"i)alent to at least one (, !onth salar& or to one-half (,87 !onth salar& for e)er& &ear of ser)ice% whiche)er is
#reater% a fraction of at least six (6 !onths bein# considered as one (, whole &ear.
ARTICLE 2&$. Termination by employee. (a +n e!plo&ee !a& ter!inate witho"t *"st ca"se the e!plo&ee-
e!plo&er relationship b& ser)in# a written notice on the e!plo&er at least one (, !onth in ad)ance. The e!plo&er
"pon who! no s"ch notice was ser)ed !a& hold the e!plo&ee liable for da!a#es.
(b +n e!plo&ee !a& p"t an end to the relationship witho"t ser)in# an& notice on the e!plo&er for an& of the
followin# *"st ca"ses=
,. $erio"s ins"lt b& the e!plo&er or his representati)e on the honor and person of the e!plo&ee>
7. 5nh"!an and "nbearable treat!ent accorded the e!plo&ee b& the e!plo&er or his representati)e>
4. Co!!ission of a cri!e or offense b& the e!plo&er or his representati)e a#ainst the person of the e!plo&ee or an&
of the i!!ediate !e!bers of his fa!il&> and
2. 9ther ca"ses analo#o"s to an& of the fore#oin#.
ARTICLE 2&%. 2hen employment not deemed terminated. The bona-fide s"spension of the operation of a
b"siness or "ndertakin# for a period not exceedin# six (6 !onths% or the f"lfill!ent b& the e!plo&ee of a !ilitar& or
ci)ic d"t& shall not ter!inate e!plo&!ent. 5n all s"ch cases% the e!plo&er shall reinstate the e!plo&ee to his for!er
position witho"t loss of seniorit& ri#hts if he indicates his desire to res"!e his work not later than one (, !onth fro!
the res"!ption of operations of his e!plo&er or fro! his relief fro! the !ilitar& or ci)ic d"t&.
T+t, II
RETIREMENT FROM THE SERVICE
ARTICLE 2&-. Retirement. +n& e!plo&ee !a& be retired "pon reachin# the retire!ent a#e established in the
collecti)e bar#ainin# a#ree!ent or other applicable e!plo&!ent contract.
5n case of retire!ent% the e!plo&ee shall be entitled to recei)e s"ch retire!ent benefits as he !a& ha)e earned
"nder existin# laws and an& collecti)e bar#ainin# a#ree!ent and other a#ree!ents= Pro)ided% howe)er% That an
e!plo&ees retire!ent benefits "nder an& collecti)e bar#ainin# and other a#ree!ents shall not be less than those
pro)ided therein.
5n the absence of a retire!ent plan or a#ree!ent pro)idin# for retire!ent benefits of e!plo&ees in the establish!ent%
an e!plo&ee "pon reachin# the a#e of sixt& (60 &ears or !ore% b"t not be&ond sixt&-fi)e (6- &ears which is hereb&
declared the co!p"lsor& retire!ent a#e% who has ser)ed at least fi)e (- &ears in the said establish!ent% !a& retire
and shall be entitled to retire!ent pa& e'"i)alent to at least one-half (,87 !onth salar& for e)er& &ear of ser)ice% a
fraction of at least six (6 !onths bein# considered as one whole &ear.
Cnless the parties pro)ide for broader incl"sions% the ter! one-half (,87 !onth salar& shall !ean fifteen (,- da&s
pl"s one-twelfth (,8,7 of the ,4th !onth pa& and the cash e'"i)alent of not !ore than fi)e (- da&s of ser)ice
incenti)e lea)es.
;etail% ser)ice and a#ric"lt"ral establish!ents or operations e!plo&in# not !ore than ten (,0 e!plo&ees or workers
are exe!pted fro! the co)era#e of this pro)ision.
Diolation of this pro)ision is hereb& declared "nlawf"l and s"b*ect to the penal pro)isions "nder +rticle 7BB of this
Code.
BOO) SEVEN
TRANSITORY AND FINAL PROVISIONS
T+t, I
PENAL PROVISIONS AND LIABILITIES
ARTICLE 2&&. $enalties. @xcept as otherwise pro)ided in this Code% or "nless the acts co!plained of hin#e on a
'"estion of interpretation or i!ple!entation of a!bi#"o"s pro)isions of an existin# collecti)e bar#ainin# a#ree!ent%
an& )iolation of the pro)isions of this Code declared to be "nlawf"l or penal in nat"re shall be p"nished with a fine of
not less than 9ne Tho"sand Pesos (P,%000.00 nor !ore than Ten Tho"sand Pesos (P,0%000.00 or i!prison!ent
of not less than three !onths nor !ore than three &ears% or both s"ch fine and i!prison!ent at the discretion of the
co"rt.
5n addition to s"ch penalt&% an& alien fo"nd #"ilt& shall be s"!!aril& deported "pon co!pletion of ser)ice of
sentence.
+n& pro)ision of law to the contrar& notwithstandin#% an& cri!inal offense p"nished in this Code% shall be "nder the
conc"rrent *"risdiction of the A"nicipal or Cit& Co"rts and the Co"rts of 6irst5nstance. (+s a!ended b& $ection 4%
3atas Pa!bansa 3ilan# /0.
ARTICLE 2&'. 2ho are liable when committed by other than natural person. 5f the offense is co!!itted b& a
corporation% tr"st% fir!% partnership% association or an& other entit&% the penalt& shall be i!posed "pon the #"ilt&
officeror officers of s"ch corporation% tr"st% fir!% partnership% association or entit&.
T+t, II
PRESCRIPTION OF OFFENSES AND CLAIMS
ARTICLE 2'(. %ffenses. 9ffenses penali(ed "nder this Code and the r"les and re#"lations iss"ed p"rs"ant
thereto shall prescribe in three (4 &ears. +ll "nfair labor practice arisin# fro! 3ook D shall be filed with the
appropriate a#enc& within one (, &ear fro! accr"al of s"ch "nfair labor practice> otherwise% the& shall be fore)er
barred.
ARTICLE 2'". 'oney claims. +ll !one& clai!s arisin# fro! e!plo&er-e!plo&ee relations accr"in# d"rin# the
effecti)it& of this Code shall be filed within three (4 &ears fro! the ti!e the ca"se of action accr"ed> otherwise the&
shall be fore)er barred.
+ll !one& clai!s accr"in# prior to the effecti)it& of this Code shall be filed with the appropriate entities established
"nder this Code within one (, &ear fro! the date of effecti)it&% and shall be processed or deter!ined in accordance
with the i!ple!entin# r"les and re#"lations of the Code> otherwise% the& shall be fore)er barred.
?ork!ens co!pensation clai!s accr"in# prior to the effecti)it& of this Code and d"rin# the period fro! .o)e!ber ,%
,1/2 "p to Dece!ber 4,% ,1/2% shall be filed with the appropriate re#ional offices of the Depart!ent of Labor not
later than Aarch 4,% ,1/-> otherwise% the& shall fore)er be barred. The clai!s shall be processed and ad*"dicated in
accordance with the law and r"les at the ti!e their ca"ses of action accr"ed.
ARTICLE 2'2. Institution of money claims. - Aone& clai!s specified in the i!!ediatel& precedin# +rticle shall be
filed before the appropriate entit& independentl& of the cri!inal action that !a& be instit"ted in the proper co"rts.
Pendin# the final deter!ination of the !erits of !one& clai!s filed with the appropriate entit&% no ci)il action arisin#
fro! the sa!e ca"se of action shall be filed with an& co"rt. This pro)ision shall not appl& to e!plo&ees co!pensation
case which shall be processed and deter!ined strictl& in accordance with the pertinent pro)isions of this Code.
T+t, III
TRANSITORY AND FINAL PROVISIONS
ARTICLE 2'#. Application of law enacted prior to this Code. +ll actions or clai!s accr"in# prior to the effecti)it&
of this Code shall be deter!ined in accordance with the laws in force at the ti!e of their accr"al.
ARTICLE 2'4. ecretary of 1abor to initiate integration of maternity leave benefits. ?ithin six (6 !onths after
this Code takes effect% the $ecretar& of Labor shall initiate s"ch !eas"res as !a& be necessar& for the inte#ration of
!aternit& lea)e benefits into the $ocial $ec"rit& $&ste!% in the case of pri)ate e!plo&!ent% and the <o)ern!ent
$er)ice 5ns"rance $&ste!% in the case of p"blic e!plo&!ent.
ARTICLE 2'$. 6"ndin# of the 9)erseas @!plo&!ent De)elop!ent 3oard and the .ational $ea!ens 3oard referred
to in +rticles ,/ and 70% respecti)el&% of this Code shall initiall& be f"nded o"t of the "npro#ra!!ed f"nd of the
Depart!ent of Labor and the .ational Aanpower and Eo"th Co"ncil.
ARTICLE 2'%. Termination of the workmens compensation program. The 3"rea" of ?ork!ens Co!pensation%
?ork!ens Co!pensation Co!!ission% and ?ork!ens Co!pensation Cnits in the re#ional offices of the Depart!ent
of Labor shall contin"e to exercise the f"nctions and the respecti)e *"risdictions o)er work!ens co!pensation cases
)ested "pon the! b& +ct .o. 427B% as a!ended% otherwise known as the ?ork!ens Co!pensation +ct "ntil Aarch
4,% ,1/6. Likewise% the ter! of office of inc"!bent !e!bers of the ?ork!ens Co!pensation Co!!ission% incl"din#
its Chair!an and an& co!!issioner dee!ed retired as of Dece!ber 4,% ,1/-% as well as the present e!plo&ees and
officials of the 3"rea" of ?ork!ens Co!pensation% ?ork!ens Co!pensation Co!!ission and the ?ork!ens
Co!pensation Cnits shall contin"e "p to that date. Thereafter% said offices shall be considered abolished and all
officials and personnel thereof shall be transferred to and !andatoril& absorbed b& the Depart!ent of Labor% s"b*ect
to Presidential Decree .o. 6% Letters of 5nstr"ctions .os. ,2 and ,2-+ and the Ci)il $er)ice Law and r"les.
$"ch a!o"nt as !a& be necessar& to co)er the operational expenses of the 3"rea" of ?ork!ens Co!pensation
and the ?ork!ens Co!pensation Cnits% incl"din# the salaries of inc"!bent personnel for the period "p to Aarch 4,%
,1/6 shall be appropriated fro! the "npro#ra!!ed f"nds of the Depart!ent of Labor.
ARTICLE 2'-. Continuation of insurance policies and indemnity bonds5 +ll work!ens co!pensationins"rance
policies and inde!nit& bonds for self-ins"red e!plo&ers existin# "pon the effecti)it& of this Code shall re!ain in force
and effect "ntil the expiration dates of s"ch policies or the lapse of the period of s"ch bonds% as the case !a& be% b"t
in no case be&ond Dece!ber 4,% ,1/2. Clai!s !a& be filed a#ainst the ins"rance carriers and8or self-ins"red
e!plo&ers for ca"ses of action which accr"ed d"rin# the existence of said policies or a"thorit& to self-ins"re.
ARTICLE 2'&. Abolition of the Court of Industrial Relations and the National 1abor Relations Commission.
The Co"rt of 5nd"strial ;elations and the .ational Labor ;elations Co!!ission established "nder Presidential
Decree .o. 7, are hereb& abolished. +ll "nexpended f"nds% properties% e'"ip!ent and records of the Co"rt of
5nd"strial ;elations% and s"ch of its personnel as !a& be necessar&% are hereb& transferred to the Co!!ission and to
its re#ional branches. +ll "nexpended f"nds% properties and e'"ip!ent of the .ational Labor ;elations Co!!ission
established "nder Presidential Decree .o. 7, are transferred to the 3"rea" of Labor ;elations. Personnel not
absorbed b& or transferred to the Co!!ission shall en*o& benefits #ranted "nder existin# laws.
ARTICLE 2''. Disposition of pending cases. +ll cases pendin# before the Co"rt of 5nd"strial ;elations and the
.ational Labor ;elations Co!!ission established "nder Presidential Decree .o. 7, on the date of effecti)it& of this
Code shall be transferred to and processed b& the correspondin# labor relations di)isions or the .ational Labor
;elations Co!!ission created "nder this Code ha)in# co#ni(ance of the sa!e in accordance with the proced"re laid
down herein and its i!ple!entin# r"les and re#"lations. Cases on labor relations on appeal with the $ecretar& of
Labor or the 9ffice of the President of the Philippines as of the date of effecti)it& of this Code shall re!ain "nder their
respecti)e *"risdictions and shall be decided in accordance with the r"les and re#"lations in force at the ti!e of
appeal.
+ll work!ens co!pensation cases pendin# before the ?ork!ens Co!pensation Cnits in the re#ional offices of the
Depart!ent of Labor and those pendin# before the ?ork!ens Co!pensation Co!!ission as of Aarch 4,% ,1/-%
shall be processed and ad*"dicated in accordance with the law% r"les and proced"re existin# prior to the effecti)it& of
the @!plo&ees Co!pensation and $tate 5ns"rance 6"nd.
ARTICLE #((. $ersonnel whose services are terminated. Personnel of a#encies or an& of their s"bordinate
"nits whose ser)ices are ter!inated as a res"lt of the i!ple!entation of this Code shall en*o& the ri#hts and
protection pro)ided in $ections - and 6 of ;ep"blic +ct n"!bered fift&-fo"r h"ndred and thirt& fi)e and s"ch other
pertinent laws% r"les and re#"lations. 5n an& case% no la&-off shall be effected "ntil f"nds to co)er the #rat"it& and8or
retire!ent benefits of those laid off are d"l& certified as a)ailable.
ARTICLE #(". eparability provisions. 5f an& pro)ision or part of this Code% or the application thereof to an&
person or circ"!stance% is held in)alid% the re!ainder of this code% or the application of s"ch pro)ision or part to other
persons or circ"!stances% shall not be affected thereb&.
ARTICLE #(2. Repealing clause. +ll labor laws not adopted as part of this Code either directl& or b& reference are
hereb& repealed. +ll pro)isions of existin# laws% orders% decrees% r"les and re#"lations inconsistent herewith are
likewise repealed.
Done in the Cit& of Aanila% this ,st da& of Aa& in the &ear of o"r Lord% nineteen h"ndred and se)ent& fo"r.
($#d. 6@;D5.+.D @. A+;C9$
President% ;ep"blic of the Philippines