USC Labor Law Reviewer

UNIVERSITY OF SAN CARLOS
College of Law
BATCH 2008 (Rm.228)
Labor Law Revew No!e"
1. THE APPLICABLE LAWS
Law: PD 442 as amended by RA 6715 a!"#ed "n $a!%& 21' 1()(
A DECREE INSTITUTING A LABOR CODE, THERBY REVISING AND CONSOLIDATING
LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE
EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND ENSURE INDUSTRIAL
PEACE BASED ON SOCIAL JUSTICE.
Article 1. This Decree shall be known as the Labor Code of the Philippines
May 1, 197 ! PD " was si#ned into law
Took effect $o%. 1, 197
Article ". This Code shall take effect &i' (onths after its pro()l#ation
*A +71,- .errera-/eloso Law
&en. 0las 1ple ! 2ather of Labor Code
*+TE: 0efore the effecti%ity of the Labor code, there was no pro%ision on the ter(s and conditions of
e(ploy(ent. This is the si#nificance of the effecti%ity of the Labor Code.
S,-n,.,%an%e ". RA 6715
Co(p)tation of 0ackwa#es ! after *A +71, took effect, the award of backwa#es from !" #m"
$om%"&'(#o& )(' )#!!"*+ ,% o !" ($,(* r"#&'("m"&
C"n%e/ ". Lab"!
Labor in ordinary si#nification, is )nderstood as the physical toil altho)#h it does not
necessarily e'cl)de the application of skill, th)s, there is skilled and )nskilled labor.
G"&"r(* S"&'"- it is the e'ertion of h)(an bein# by his (ental or physical effort towards
prod)ction of #oods or ser%ices.
T"$!&#$(* S"&'"- the workin# class or workin#(en
&kill ! the fa(iliar knowled#e of any art or science, )nited with readiness and de'terity in
e'ec)tion or perfor(ance or in the application of the art or science to practical p)rposes.
3ork ! broader than labor as work co%ers all for(s of physical or (ental e'ertion or both
co(bined, for the attain(ent of so(e ob4ect other than recreation or a()se(ent per se.
3orker ! broader than e(ployee as workers refer to self-e(ployed people and those workin# in
the ser%ice and )nder the control of another, re#ardless of rank, title, or nat)re of work.
5(ployee ! a salaried person workin# for another who controls or s)per%ises the (eans,
(anner, or (ethod of doin# the work
T&!ee 0,e1ds ". Lab"! Law
1. Labor Standards Law ! sets o)t the (ini()( ter(s, conditions, and benefits of e(ploy(ent
that e(ployers ()st pro%ide or co(ply with and to which workers are entitled as a (atter of le#al
ri#ht
e.#. )(."' (&+ !o,r' of )or/, o& '(f"0 (&+ !"(*! of "m%*o0""', "m%*o0m"& 1"&"f#'
". Labor Relations Law ! defines the stat)s, ri#hts, d)ties, as well as the instit)tional (echanis(
that #o%ern the indi%id)al and collecti%e interactions between e(ployers, e(ployees, and their
representati%es
e.#. ,&#o&#2(#o&, &".o#(#o&, +#'%," '"*"m"&'
Labor relations law is the (echanis( by which e(ploy(ent standards are ne#otiated,
ad4)sted, and enforced.
D,s/,n%/,"n: L(1or '(&+(r+' ! the (aterial or s)bstance while *(1or r"*(#o&' ! the (echanis( that
processes the s)bstance.
6. Labor Legislation or Social or Welfare measures ! consists of stat)tes, re#)lations, and
4)rispr)dence #o%ernin# the relations between capital and labor, by pro%idin# for certain
e(ploy(ent standards and a le#al fra(ework for ne#otiatin#, ad4)stin#, and ad(inisterin# those
standards and other incidents of e(ploy(ent.
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e.#. 'o$#(* '"$,r#0 *(), (.r(r#(& r"form *(), *() o& m#.r(& )or/"r'
0"2! sys/ems ". Lab"!
1. slavery - refers to the e'traction of work or ser%ices fro( any person by (eans of entice(ent,
%iolence, inti(idation or threat, )se of force or coercion, incl)din# depri%ation of freedo(, ab)se
of a)thority or (oral ascendance, debt bonda#e or deception.
The worker is owned by another at his free disposal
". serfdom - is the socio-econo(ic stat)s of peasants )nder fe)dalis(, and specifically relates to
Manorialis(. 7t was a condition of bonda#e or (odified sla%ery seen pri(arily d)rin# the Middle
A#es in 5)rope. &erfdo( was the enforced labo)r of serfs on the fields of landowners, in ret)rn
for protection and the ri#ht to work on their leased fields.
3orker, by c)sto(ary ri#ht to his Lord, owes certain ser%ice
6. free artisan - sa(e as (odern independent contractorship wherein an independent contractor is
en#a#ed in a b)siness separately distinct fro( the principal, the perfor(ed 4ob, work or ser%ice,
and works accordin# to his own (eans and (ethods, free fro( the control and direction of the
principal e'cept as to the res)lts thereof.
A free person who offers his ser%ices to others s)b4ect to nobody8s will
. wage system - sa(e as (odern e(ployer-e(ployee syste( where there is an e(ployee )nder
the control and s)per%ision of an e(ployer as to the (eans, (anner or (ethod of which the work
is to be acco(plished incl)din# the res)lt thereof and is paid for the work done in ter(s of wa#e.
A person offers his ser%ices to another )nder an e(ploy(ent contract for which s)ch
ser%ice is paid by wa#es.
A,m "! 32s/,.,%a/,"n
&1C7AL 9:&T7C5 ! the h)(ani;ation of laws and the e<)ali;ation of social and econo(ic forces
by the state so that 4)stice in its rational and ob4ecti%ely sec)lar conception (ay at least be appro'i(ated
7t is the e<)ality )nder the law and the attain(ent of decent <)ality of life by the people
thro)#h h)(ane prod)cti%e work.
7t is both a le#al (andate and a socio-econo(ic #oal
A!/,%1e II' se%. 14 ". /&e %"ns/,/2/,"n
The state shall pro(ote social 4)stice in all phases of national de%elop(ent.
The state affir(s labor as a pri(ary social econo(ic force. Therefore, it shall protect the
ri#hts of workers and pro(ote their welfare.
S5PRE$E C+5RT DECISI+*S
A!/,%1e )' *CC.
9)dicial decisions applyin# or interpretin# the laws or the Constit)tion shall for( a part of the le#al
syste( of the Philippines.
S"2!%es ". 1ab"! 1aws 6Lab"! S/anda!ds7
a= The Labor Code , PD " as a(ended
b= 9)dicial decisions
c= *)les and re#)lations iss)ed by ad(inistrati%e a#encies
d= 1(nib)s *)les as a(ended by D1 $o. >9, &eries of 1997 ? D1 $o. >->6, &eries of
">>6, as a(ended by D1 $os. >-A->6, >-0->6, >-C->,
*)les and re#)lations ha%e the force and effect of law, pro%ided they do not e'pand the
law or strip the law. 1therwise, )nder the r)les on stat)tory constr)ction, these will be considered
%oid.
S"2!%es ". Lab"! 1aws 6Lab"! Re1a/,"ns7
P*7MA*@
a= Constit)tion
b= &tat)tes A $CC, *PC, &pecial Laws=
c= &)pre(e co)rt decisions
&5C1$DA*@
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a= decisions of forei#n co)rts Awhere o)r labor stat)tes are based or patterned after stat)tes
in forei#n 4)risdictions, decisions in the hi#h co)rts in those 4)risdictions constr)in# and
interpretin# sho)ld recei%e the caref)l attention of o)r co)rts in the application of o)r laws=
b= re%iewers in labor lawsB te'tbooks
c= opinions of labor depart(ent or a#encies
d= r)les and re#)lations iss)ed D1L5 A depart(ent orders=
*+TE:
Labor laws do not only incl)de PD " as a(ended b)t as well as decisions of the &C
interpretin# and applyin# the laws. 7ncl)ded as well are r)les and re#)lations iss)ed by the appropriate
#o%ern(ent a#encies Ae.#. D1L5=
Bas,s ". Ena%/,n- Lab"! Laws
1. P+LICE P+WER ! the power inherent in a #o%ern(ent to (ake laws, within constit)tional li(its,
to pro(ote the order, safety, health, (orals, and #eneral welfare of society.
7t is the state8s a)thority to enact le#islation that (ay interfere with personal liberty or
property in order to pro(ote the #eneral welfare.
e.#. Art. "+6A#= of the LC
Police power consists ofC
a. an i(position of !es/!a,n/ )pon property or liberty
b. in order to ."s/e! the co((on #ood
". S+CIAL 85STICE ! the law is #eared tow the concern of labor bec. 1)r le#islators reali;e the
social and econo(ic i(balance between the e(ployer and e(ployee. Th)s, ART 3 of !" L(1or
Co+" pro%idesC
All 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
Ae.#. Mi#rant worker8s act, retire(ent law, Art. Di', sec. 19=
6. PR+TECTI+* T+ LAB+R CLA5SE A Art, D777, &ec. 6=
e.#. Mi#rant 3orker8s Act
. D+CTRI*E +0 I*C+RP+RATI+*
Article 77, &ec. "
The Philippines reno)nces war as an instr)(ent of national policy, adopts the #enerally
accepted principles of international law as part of the law of the land, and adheres to the policy of
peace, e<)ality, 4)stice, freedo(, cooperation, and a(ity with all nations
L,m,/a/,"ns ,n /&e Ena%/men/ ". Lab"! Laws
1. No&4#m%(#rm"& of $o&r($' $*(,'" A Art. 777, &ec. 1> =
$o law i(pairin# the obli#ations of contracts shall be passed ''' .owe%er, Con#ress (ay
pass laws to re#)late the(.
". E5,(* Pro"$#o& C*(,'" AArt. 777, &ec. 1=
$o person shall be depri%ed of life, liberty, property witho)t d)e process of law, nor shall
any person be denied the e<)al protection of the laws. 7ndi%id)als si(ilarly sit)ated ()st be treated
e<)ally )nder the law 6E5,(*#0 (mo&. "5,(*'7
6. Pro!#1##o& (.(#&' #&8o*,&(r0 '"r8#,+" A Art. 777, &ec. 1E par. "=
$o in%ol)ntary ser%it)de in any for( shall e'ist "9$"% (' ( %,&#'!m"& for ( $r#m"
whereof the party shall ha%e been d)ly con%icted.
Meanin#, no indi%id)al ()st be (ade to work a#ainst his will 6"... anti-traffickin# in
persons act, forced labor, sla%ery=
. D," %ro$"'' C*(,'" A Art. 777, &ec. 1=
,. O!"r $o&'#,#o&(* %ro8#'#o&
P!"#,s,"ns "n /&e e..e%/,#,/y ". Lab"! 1aws
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1. A*T. ",$CC
Laws shall take effect after fifteen A1,= days followin# the co(pletion of their p)blication either in
the 1fficial Fa;ette or in a newspaper of #eneral circ)lation in the Phils., )nless it is otherwise
pro%ided
". A*T. ,, LC
'''. &)ch r)les and re#)lations shall beco(e effecti%e fifteen days after anno)nce(ent of their
adoption in newspapers of #eneral circ)lation.
D1L5 is the lead a#ency in enforcin# labor laws and it possesses r)le-(akin# in the enforce(ent
of the code. 0)t a r)le or re#)lation that e'ceeds its r)le-(akin# a)thority is %oid. The r)le-(akin# power
is e'ceeded when the i(ple(entin# r)le chan#es, wittin#ly or )nwittin#ly, of the content or (eanin# of the
law which the r)le ai(s to i(ple(ent. The i(ple(entin# r)les ()st be s)bordinate to the law itself.
6. 51 "9" A as a(ended by *A 99" appro%ed on 9)ly ",, ">>7=
E9EC5TI:E +RDER *+. 2(2
I*STIT5TI*; THE <AD$I*ISTRATI:E C+DE +0 1()7<
C&a/e! 5
+PERATI+* A*D E00ECT +0 LAWS

&ec. 1E. 3hen Laws Take 5ffect. - Laws shall take effect after fifteen A1,= days followin# the
co(pletion of their p)blication in the 1fficial Fa;ette or in a newspaper of #eneral circ)lation,
)nless it is otherwise pro%ided.
&ec. 19. Prospecti%ity. - Laws shall ha%e prospecti%e effect )nless the contrary is e'pressly
pro%ided.
&ec. ">. 7nterpretation of Laws and Ad(inistrati%e 7ss)ances. - 7n the interpretation of a law or
ad(inistrati%e iss)ance pro()l#ated in all the official lan#)a#es, the 5n#lish te't shall control,
)nless otherwise specifically pro%ided. 7n case of a(bi#)ity, o(ission or (istake, the other te'ts
(ay be cons)lted.
&ec. "1. $o 7(plied *e%i%al of *epealed Law.- 3hen a law which e'pressly repeals a prior law
itself repealed, the law first repealed shall not be thereby re%i%ed )nless e'pressly so pro%ided.
&ec. "". *e%i%al of Law 7(pliedly *epealed. - 3hen a law which i(pliedly repeals a prior law is
itself repealed, the prior law shall thereby be re%i%ed, )nless the repealin# law pro%ides otherwise.
&ec. "6. 7#norance of the Law. - 7#norance of the law e'c)ses no one fro( co(pliance
therewith.
R21es "n /&e Im1emen/a/,"n and In/e!!e/a/,"n ". 1ab"! 1aws
Article , LC. All do)bts in the i(ple(entation and interpretation of the pro%isions of this Code,
incl)din# its i(ple(entin# r)les and re#)lations, shall be resol%ed in fa%or of labor.
Article 17>>,$CC. The relation between capital and labor are not (erely contract)al. They are
so i(pressed with p)blic interest that labor contracts ()st yield to the co((on #ood. Therefore,
s)ch contracts are s)b4ect to the special Lawson labor )nions, collecti%e bar#ainin#, strikes and
locko)ts, closed shop, wa#es, workin# conditions, ho)rs of labor, and si(ilar s)b4ects.
Article 17>1, $CC. $either capital nor labor shall act oppressi%ely a#ainst the other, or i(pair the
interest or con%enience of the p)blic.
Article 17>", $CC. 7n case of do)bt, all labor le#islations and all labor contracts shall be
constr)ed in fa%or of the safety and decent li%in# of the laborer.
Parties to an e(ploy(ent contract )nder Art. 17>>, $CC
1. e(ployer
". e(ployee
6. state
. p)blic
Lab"! and %&a//e1
TRIPARTIS$ AArt. "7,=
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A(endatory decree no. E,> A197,= adopted tripartis( as a state policy
Tripartis( is a representation of three sectors in policy-(akin# bodies of the #o%ern(ent
1. p)blic or the #o%ern(ent
". e(ployees
6. workers
&)ch kind of representation is not ordained, not e%en by the Constit)tion. 3hat is pro%ided for, for
the pri%ate sector is worker8s participation in policy and decision-(akin# processes directly affectin#
their ri#hts, benefits, and welfare.
2. BASIC PRI*CIPLES
C"ns/,/2/,"na1 !,-&/s ". w"!=e!s ,n !e1a/,"n /" 1ab"! s/anda!ds
1. !,-&/ /" w"!= 2nde! &2mane %"nd,/,"ns A ri#ht to ha%e a non-ha;ardo)s workplace=
2. !,-&/ /" !e%e,#e a 1,#,n- wa-e
3. !,-&/ /" a 32s/ s&a!e ,n /&e .!2,/s ". !"d2%/,"n
C"ns/,/2/,"na1 Bas,s: Se%/,"n >' A!/,%1e 9III
T.5 &TAT5 &.ALL A221*D 2:LL P*1T5CT71$ T1 LA01*, L1CAL, A$D
1/5*&5A&, 1*FA$7G5D A$D :$1*FA$7G5D, A$D P*1M1T5 2:LL 5MPL1@M5$T A$D
5H:AL7T@125MPL1M5$T 1P1*T:$7T75& T1 ALL.
7T &.ALL F:A*A$T55 T.5 *7F.T& 12 ALL 31*I5*& T1 &5L2- 1*FA$7GAT71$,
C1LL5CT7/5 0A*FA7$7$F A$D $5F1T7AT71$&, A$D P5AC52:L C1$C5*T5DACT7/7T75&,
7CL:D7F T.5 *7F.T T1 &T*7I5 7$ ACC1*DA$C5 37T. LA3. T.5@&.ALL05$T7TL5D
T1&5C:*7T@ 12 T5$:*5, .:MA$5 C1$D7T71$& 12 31*I, A$D A L/7$F 3AF5. T.5@
&.ALL AL&1 PAT7C7PAT5 7$ P1L7C@ A$D D5C7&71$-MAI7$F P*1C5&&5& A225CT7$F
T.57* *7F.T& A$D 05$527T& A& MA@05 P*1/7D5D0@ LA3.
T.5 &TAT5 &.ALL P*1M1T5 T.5 P*7$C7PL5 12 &.A*5D *5&P1$&707L7T@
05T355$ 31*I5*& A$D 5MPL1@5*& A$D T.5 P*52*5$T7AL :&5 12 /1L:$TA*@
M1D5& 7$ &5TTL7$F D7&P:T5&, 7$CL:D7$F C1$C7L7AT71$, A$D &.ALL 5$21*C5 T.57*
M:T:AL C1MPL7A$C5 T.5*537T. T121&T5* 7$D:&T*7AL PAC5.
T.5 &TAT5 &.ALL *5F:LAT5 T.5 *5LAT71& 05T355$ 31*I5*& A$D
5MPL1@5*& *5C1F$7G7F T.5 *7F.T 12 LA01* T1 7T& 9:&T &.A*5 7$ T.5 2*:7T& 12
P*1D:CT71$ A$D T.5 *7F.T 12 5$T5*P*7&5& T1 *5A&1$A0L5 *5T:*$& A$D
7$/5&TM5$T&, A$D T1 5DPA$&71$ A$D F*13T..
C"ns/,/2/,"na1 !,-&/s ". w"!=e!s ,n !e1a/,"n /" 1ab"! !e1a/,"ns
1. !,-&/ /" se1.?"!-an,@a/,"n Ato 4oin or not to 4oin an or#ani;ation=
". !,-&/ /" %"nd2%/ %"11e%/,#e ba!-a,n,n- "! ne-"/,a/,"n w,/& mana-emen/ Ari#ht to de(and
better ter(s and conditions of e(ploy(ent=
6. !,-&/ /" en-a-e ,n ea%e.21 %"n%e!/ed a%/,#,/,es incl)din# strike, in accordance with law Ari#ht
to picket, boycott=
. !,-&/ /" en3"y se%2!,/y ". /en2!e Ari#ht to contin)e one8s e(ploy(ent )ntil s)ch is se%ered for
4)st or a)thori;ed ca)ses as pro%ided for by law=
,. a!/,%,a/e ,n "1,%y and de%,s,"n?ma=,n- !"%esses affectin# worker8s ri#hts and benefits as
(ay be pro%ided by law
Se%,.,% R,-&/s ". W"!=e!s
Se%2!,/y ". /en2!e
3orkers cannot be dis(issed witho)t 4)st and a)thori;ed ca)ses
3orkers shall be (ade re#)lar after + (onths probation )nless a different period is
a#reed )pon by the worker and the e(ployee
H"2!s ". w"!=

$or(al workin# ho)rs of ei#ht ho)rs a day
Meal and rest periodC (eal break of less than one ho)r shall be considered co(pensable
workin# ti(e
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Wa-e and wa-e !e1a/ed bene.,/s
a. (ini()( wa#e
b. holiday pay ! one day for e%ery re#)lar holiday e%en if )nworked s)b4ect to certain
conditions
c. pre(i)( pay for work within E ho)rs onC
special rest dayJ 6>K of the basic daily rate
rest day fallin# on a special dayC pl)s ,>K
rest day fallin# on a re#)lar holidayC pl)s 6>K of the ">>K of the basic
daily rate
+#e!/,me ay
1rdinary daysC ",K of the basic ho)rly rate
&pecialBrestBholidayC 6>K of the re#)lar ho)rly rate on said days
*,-&/ s&,./ d,..e!en/,a1 ay
1>K of the basic or re#)lar rate between 1>p( and +a(
Se!#,%e ,n%en/,#e 1ea#e
, days with pay per year after one year of ser%ice
Se!#,%e %&a!-es
E, K Adistrib)tion to rank and file e(ployees=J 1,K Alosses, breaka#es, distrib)tion to
(ana#erial e(ployees=
Sea!a/,"n ay
L (onth pay for e%ery year of ser%ice for a)thori;ed ca)ses of separation
1>
/&
m"n/& ay
1B1" of the total basic salary earned within the calendar year
Paymen/ ". wa-es
&hall be paid in cash, le#al tender, at or near the place of work
May be (ade thro)#h a bank )pon written petition of (a4ority of the workers in
establish(ents with ", or (ore e(ployees and within one kilo(eter radi)s to a bank
&hall be (ade direct to the e(ployees
&hall be #i%en not less than once e%ery " weeks or twice within a (onth at inter%als not
e'ceedin# 1+ days
Labor-only contractin# is prohibited and the person actin# as contractor is (erely an
a#ent of the e(ployer
Preference of workers (oney clai(s o%er #o%ern(ent and other creditors in case of
bankr)ptcy or li<)idation of b)siness
Sa.e and &ea1/&.21 %"nd,/,"ns ". w"!= and we1.a!e se!#,%es
Proper ill)(ination and %entilation, fire e'its and e'tin#)ishers, occ)pational health
personnel ser%ices, fa(ily welfare or fa(ily plannin# ser%ices at the workplace=
Em1"ymen/ ". A"2n- W"!=e!s
Mini()( e(ployable a#e is 1, a#e
A worker below 1, sho)ld be directly )nder the sole responsibility of parents or
#)ardiansJ work does not interfere with child8s schoolin# and nor(al de%elop(ent
$o person below ei#hteen can be e(ployed in ha;ardo)s or deleterio)s )ndertakin#
Em1"ymen/ ". w"men
$i#htwork prohibition )nless allowed by the r)lesC
o 7nd)strial )ndertakin# ! .!"m 14 m /" 6 am
o Co((ercial ! .!"m 12 mn /" 6 am
o A#ric)lt)ral ! a/ n,-&//,me 2n1ess -,#en n"/ 1ess /&an ( %"nse%2/,#e &"2!s ". !es/
3elfare facilities ()st be pro%ided in the workplace
Prohibition a#ainst discri(ination with respect to pay, pro(otion, trainin#
opport)nities, st)dy, and scholarship #rants
Se1.?"!-an,@a/,"n and %"11e%/,#e ba!-a,n,n-
5(ployees can for( or#ani;ations s)ch as )nion and welfare co((ittees
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An e(ployee can 4oin a )nion on the %ery first day of his e(ploy(ent
Co**"$#8" B(r.(#&#&. ! a contract between workers and e(ployers on ter(s and
conditions of e(ploy(ent which are 1/5* and A01/5 those (andated by law
Lab"! ed2%a/,"n /&!"2-& sem,na!s' d,a1"-2es' and
,n."!ma/,"n' ed2%a/,"n and %"mm2n,%a/,"n ma/e!,a1s
Pea%e.21 %"n%e!/ed a%/,#,/,es ,n a%%"!dan%e w,/& 1aw
Pa!/,%,a/,"n an "1,%y and de%,s,"n?ma=,n- !"%esses
a..e%/,n- /&e,! !,-&/s and bene.,/s
0!ee a%%ess /" /&e %"2!/s and B2as,?32d,%,a1 b"d,es and
seedy d,s"s,/,"n ". /&e,! %ases
ECC bene.,/s ."! w"!=?!e1a/ed %"n/,n-en%,es
(edical benefits for sickness and in4)ries
disability benefits
rehabilitation
death and f)neral
SSS Bene.,/s
(aternity
sickness
disability
retire(ent
death
ASPECTS ". Lab"! S/anda!d
$e1,"!a/,#e Lab"! S/anda!d
o%erti(e pay
pre(i)( pay
P!"/e%/,#e Lab"! S/anda!d
Protect the health and safety and the well-bein# of the workers.
P5RP+SE
*e(edial and h)(anitarian
S+5RCES ". Lab"! S/anda!ds
1. Em1"ymen/ C"n/!a%/ ! e(ployer hires an e(ployee and #i%es a hi#h salary, in effect the
for(er pro%ides the latter a labor standard pl)s car, allowances and other benefits.
". C"many P"1,%,es and P!a%/,%es ! as a co(pany policy, pro%ision of sack of rice, it is
(eliorati%e. Practices co)ld be )nwritten, deliberately #ranted by e(ployer for a lon# period of
ti(e, altho)#h it is not a policy b)t consistently and deliberately pro%ided to workers s)ch as
%acation with pay.
6. C"m21s"!y "! :"12n/a!y A!b,/!a/,"n ! the award #i%en to the party, it is another so)rce of a
labor standard
. C"11e%/,#e Ba!-a,n,n- A-!eemen/ "! CBA ! can also be a so)rce of Labor &tandard beca)se it
pro%ides ter(s and conditions of e(ploy(ent prescribed by law.
C+*CEPT +0 E$PL+AER?E$PL+AEE 6 Lab"! S/anda!ds 7
Article 97Ab=
5MPL1@5* ! incl)des any person directly or indirectly in the interest of an e(ployer in relation
to an e(ployee and shall incl)de the Fo%ern(ent and all the branches, s)bdi%isions, and
instr)(entalities, all F1CC8s and instit)tions as well as non-profit pri%ate instit)tions and or#ani;ations.
Article 97 Ac=
5MPL1@55 ! incl)des any indi%id)al e(ployed by an e(ployer
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C+*CEPT +0 E$PL+AER?E$PL+AEE 6 Lab"! Re1a/,"ns 7
Article "1"Ae=
5MPL1@5* ! incl)des any person actin# in the interest of an e(ployer directly or indirectly . The
ter( shall not incl)de any labor or#ani;ation or any of its officers or a#ents e'cept when actin# as an
e(ployer.
Article "1" Af=
5MPL1@55 ! incl)des any person in ht e(ploy of an e(ployer. The ter( shall not be li(ited to
the e(ployees of a partic)lar e(ployee, )nless this code so e'pressly states. 7t shall incl)de any
indi%id)al whose work has ceased as a res)lt of or in connection with any c)rrent labor disp)te or
beca)se of any other s)bstantially e<)i%alent and re#)lar e(ploy(ent.
5(ployer (ay beC
1. nat)ral
". 4)ridical
5(ployee ! o&*0 nat)ral persons (ay <)alify as an e(ployee. 7t co)ld be 2ilipino
citi;ens and forei#ners
.irin# of e(ployees
2orei#ners ! Art. >-", PD " applies
2ilipino- there is none. The Constit)tion and the Labor Code enco)ra#e the e(ploy(ent
of 2ilipinos.
0"!e,-n In#es/men/ C"de
1f those corporations owned by forei#ners, if they want to e(ploy alien as their
e(ployees, the followin# re<)ire(ents ()st be co(plied withC
1. &)ch do(estic or forei#n co(panies sho)ld obtain a per(it for( the D1L5 A Alien
5(ploy(ent Per(it= at the nearest re#ional office
". There ()st be a deter(ination of the non- a%ailability of a person in the Philippines, who is
co(petent, able, willin# at the ti(e of application to perfor( the ser%ices for which the alien is
desired.
The p)rpose of the law is to protect the 2ilipinos.
0+5R?0+LD TEST
1. &election and en#a#e(ent of e(ployees
". Pay(ent of wa#es
6. Power of dis(issal
. Power of control o%er e(ployee8s cond)ct and o%er the (eans and (ethods by which the
work is to be acco(plished
EC+*+$IC REALITA TEST
Deter(ine the )nderlyin# econo(ic realities of the acti%ity or relationships.
The deter(ination of the relationship between e(ployer and e(ployee
depends )pon the circ)(stances of the whole econo(ic acti%ity
1. The Abroad= e'tent to which the ser%ices perfor(ed are an inte#ral part of the e(ployer8s
b)siness.
". The Ali(ited= e'tent of the worker8s in%est(ent in the e<)ip(ent and facilities
6. The nat)re Aclose s)per%ision= and Ahi#h= de#ree of control e'ercised by the e(ployer
. The workers Ali(ited= opport)nities for profit and loss
,. The As(all= a(o)nt of initiati%e, skill, 4)d#(ent or foresi#ht re<)ired for the s)ccess of the
clai(ed independent enterprise
+. The Ahi#h de#ree of= per(anency and d)ration of the relationship between the worker and
the e(ployer
7. The de#ree of dependency of the worker )pon the e(ployer for his contin)ed e(ploy(ent
in that line of b)siness.
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*"/e: :nlike e(ployee, independent contractor does not solely depend on the co(pany for contin)ed
work as they can p)rs)e other 4obs.
E$PL+AER?E$PL+AEE :S. PRI*CIPAL?A;E*T
5*-55 ! #o%erned by the Labor Code
Principal-A#ent ! Ci%il Code
AF5$T 6A!/. 1)6)' *CC7. 0y the contract of a#ency, a person binds hi(self to render
so(e ser%ice or to do so(ethin# in representation or on behalf of another with the consent or
a)thority of the latter.
PRI*CIPAL?A;E*T RELATI+*SHIP
7t is the principal who selects the a#ent. An a#ent is co(pensated )nder the contract of a#ency of
ser%ices rendered. .e is disciplined by the principal as in the case of an e(ployee beca)se the a#ent is
)nder the a)thority of the principal. The principal controls the (eans and (ethods of the work of an
a#ent. 7n this relationship, there is only one party. The a#ent is (erely an e'tension of the principal. They
are re#arded as one. &o if there is a contractor relationship, it is not a(on# three parties b)t is between
the principalBa#ent and the other party.
Th)s, to (ake a distinction between a principal-a#ent and e(ployer-e(ployee, the fo)r-fold test
will not be )sed beca)se the a#ent is selected by the principal and is also co(pensated by the principal
and (ost oftenti(es, the principal s)bstit)tes his own 4)d#(ent for that of the a#ent
E$PL+AER?E$PL+AEE :S. PRI*CIPAL?C+*TRACT+R 6D+ *+. (7
Carries a distinct and independent b)siness and )ndertakes to perfor( the 4ob, work, or ser%ice
on its own acco)nt and )nder its own responsibility, accordin# to its own (anner and (ethod and free
fro( the control and direction of the principal in all (atters connected with the perfor(ance of the work
e'cept as to the res)lts thereof.
PRI*CIPAL?I*DEPE*DE*T C+*TRACT+R RELATI+*SHIP
The principal selects the contractor. The contractor is co(pensated for ser%ices rendered. The
contractor is not )nder the discipline of the principal. The distinction says that aside fro( en#a#in# in the
b)siness separately distinct fro( the principal. The perfor(ed 4ob, work, or ser%ices is accordin# to his
own (eans and (ethods free fro( the control and direction of the principal e'cept as to the res)lts
thereof.
Contractor (ay be 7ndi%id)al, Corporate 9)ridical 5ntity
A*T7CL5 1716, $CC
0y contract for a piece of work, the contractor binds hi(self to e'ec)te a piece of work for
the e(ployer, in consideration of a certain price or consideration. The contractor (ay either e(ploy
only his labor, skill, or also f)rnishes the (aterials.
CHIE0 CHARACTERISTICS +0 A* E$PL+AEE
5cono(ic Dependence by the 3orker
&)bordination in 3ork *elation
>. RI;HT T+ HIRE
*AT5RE: RI;HT +R PRER+;ATI:E
&trictly speakin#, the e(ployer has no ri#ht to hire a person as his e(ployee. The (atter of
selectin# a person as one8s e(ployee is (ore appropriately described as a prero#ati%e. 7t is not a ri#ht in
which yo) can #o to co)rt and enforce the ri#ht to hire a person otherwise it will %iolate the constit)tional
pro%ision a#ainst in%ol)ntary ser%it)de if one is co(pelled to be another8s e(ployeeC No %"r'o& $(& 1"
$om%"**"+ (.(#&' !#' )#** o +o (& ($ )!"!"r #**".(* or #**".(*. Th)s, an e(ployer cannot #o to co)rt and
#et and in4)nction to co(pel a person to beco(e his e(ployee. 7f at all, the e(ployer can only e'ercise
the prero#ati%e to in%ite that person and to hire hi( if he so desires. 7n that sense, the ri#ht to hire is
essentially a (ana#e(ent prero#ati%e.
MA$AF5M5$T P*5*1FAT7/5
An act of the e(ployer accordin# to his own 4)d#(ent or discretion to re#)late
his b)siness.
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This incl)des hirin#, transfer, dis(issal, etc.
E9ERCISE +0 RI;HTCPRER+;ATI:E: ABS+L5TE
T!" "9"r$#'" of !" r#.! or %r"ro.(#8" o !#r" #' not absolute. I #' r".,*("+ 10 *().
L7M7TAT71$&C
1. &pecial Laws
". Contract
6. 0asic principles of e<)ity and fair play
LE;AL LI$ITATI+*SCPR+HIBITI+*S PRI+R T+ HIRI*;
5*DER THE LAB+R C+DE:
1. Art. 136. Prohibition Against Stiulation of !arriage
7t shall be )nlawf)l for an e(ployer to re<)ire as a condition of e(ploy(ent or
contin)ation of e(ploy(ent that a wo(an e(ployee shall not #et (arried or to stip)late e'pressly
or tacitly that )pon #ettin# (arried, a wo(an e(ployee shall be dee(ed separated, or to act)ally
dis(iss, dischar#e, discri(inate or otherwise pre4)dice a wo(an e(ployee (erely by reason of her
(arria#e.
". Art.13#. !inimum $mloyable Age
a= $o child below fifteen A1,= years of a#e shall be e(ployed, e'cept
when he works directly )nder the sole responsibility of his parents or #)ardian, and his
e(ploy(ent does not in any way interfere with his schoolin#.
b= Any person between fifteen A1,= and ei#hteen A1E= yeas of a#e (ay
be e(ployed for s)ch n)(ber of ho)rs and s)ch periods of the day as deter(ined by the
&ecretary of Labor and 5(ploy(ent in appropriate re#)lations.
c= The fore#oin# pro%isions shall in no case allow the e(ploy(ent of a
person below ei#hteen A1E= years of a#e in an )ndertakin# which is ha;ardo)s or deleterio)s
in nat)re as deter(ined by the &ec. of Labor.
3. Art. "%&. 'nfair Labor Practices of $mloyers
7t shall be )nlawf)l for an e(ployer to co((it any of the followin# )nfair labor practiceC
Ab= To re<)ire as a condition of e(ploy(ent that a person or an e(ployee shall not 4oin a labor
or#ani;ation or shall withdraw fro( one to which he belon#s
%. Art. 13(. Prohibition against gender discrimination
7t shall be )nlawf)l for any e(ployer to discri(inate a#ainst any wo(an e(ployee with
respect to ter(s and conditions of e(ploy(ent solely on acco)nt of her se'.
(. Art. 1%). Prohibition against *hild +iscrimination
$o e(ployer shall discri(inate a#ainst any person in respect to ter(s and conditions of
e(ploy(ent on acco)nt of his a#e.
5*DER SPECIAL LAWS
1. RA ,61)- as amended by RA ,6(& and RA #"31 .worst forms of child labor/
REP5BLIC ACT *+. 765)
A* ACT PR+HIBITI*; THE E$PL+A$E*T +0 CHILDRE* BEL+W 15 AEARS +0 A;E I*
P5BLIC A*D PRI:ATE 5*DERTADI*;S' A$E*DI*; 0+R THIS P5RP+SE SECTI+* 12'
ARTICLE :III +0 R. A. 7614.
&ection 1. &ection 1", Article /777 of *. A. $o. 7+1> otherwise known as the M&pecial Protection of
Children A#ainst Child Ab)se, 5'ploitation and Discri(ination ActM is hereby a(ended to read as
followsC
&ec. 1". 5(ploy(ent of Children. N Children below fifteen A1,= years of a#e shall not be e(ployed
e'ceptC
A1= 3hen a child works directly )nder the sole responsibility of his parents or le#al
#)ardian and where only (e(bers of the e(ployerOs fa(ily are e(ployedC Pro8#+"+, !o)"8"r, That
his e(ploy(ent neither endan#ers his life, safety, health and (orals, nor i(pairs his nor(al
de%elop(entJ Pro8#+"+, f,r!"r, That the parent or le#al #)ardian shall pro%ide the said (inor child
with the prescribed pri(ary andBor secondary ed)cationJ or
A"= 3here a childOs e(ploy(ent or participation in p)blic entertain(ent or infor(ation
thro)#h cine(a, theater, radio or tele%ision is essentialC Pro8#+"+, The e(ploy(ent contract is
concl)ded by the childOs parents or le#al #)ardian, with the e'press a#ree(ent of the child
concerned, if possible, and the appro%al of the Depart(ent of Labor and 5(ploy(entC and
Pro8#+"+, That the followin# re<)ire(ents in all instances are strictly co(plied withC
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Aa= The e(ployer shall ens)re the protection, health, safety, (orals and nor(al
de%elop(ent of the childJ
Ab= The e(ployer shall instit)te (eas)res to pre%ent the childOs e'ploitation or
discri(ination takin# into acco)nt the syste( and le%el of re()neration, and the d)ration and
arran#e(ent of workin# ti(eJ and
Ac= The e(ployer shall for()late and i(ple(ent, s)b4ect to the appro%al and s)per%ision
of co(petent a)thorities, a contin)in# pro#ra( for trainin# and skills ac<)isition of the child.
7n the abo%e e'ceptional cases where any s)ch child (ay be e(ployed, the e(ployer shall first
sec)re, before en#a#in# s)ch child, a work per(it fro( the Depart(ent of Labor and 5(ploy(ent
which shall ens)re obser%ance of the abo%e re<)ire(ents.
The Depart(ent of Labor and 5(ploy(ent shall pro()l#ate r)les and re#)lations
necessary for the effecti%e i(ple(entation of this &ection.M
REP5BLIC ACT *+. 7614

A* ACT PR+:IDI*; 0+R STR+*;ER DETERRE*CE A*D SPECIAL PR+TECTI+*
A;AI*ST CHILD AB5SE' E9PL+ITATI+* A*D DISCRI$I*ATI+*' A*D 0+R +THER
P5RP+SES.
&ec. 1. Prohibition on the 5(ploy(ent of Children in Certain Ad%ertise(ents. - $o person shall
e(ploy child (odels in all co((ercials or ad%ertise(ents pro(otin# alcoholic be%era#es,
into'icatin# drinks, tobacco and its byprod)cts and %iolence.
REP5BLIC ACT *+. (2>1

A* ACT PR+:IDI*; 0+R THE ELI$I*ATI+* +0 THE W+RST 0+R$S +0 CHILD LAB+R
A*D A00+RDI*; STR+*;ER PR+TECTI+* 0+R THE W+RDI*; CHILD' A$E*DI*;
0+R THIS P5RP+SE REP5BLIC ACT *+. 7614' AS A$E*DED' +THERWISE D*+W* AS
THE 0SP$*1AL PR23$*3124 25 *61L+R$4 A7A14S3 *61L+ A8'S$- $9PL213A3124
A4+ +1S*R1!14A3124 A*3.0
&ec. 1". 5(ploy(ent of Children. N Children below fifteen A1,= years of a#e shall not be
e(ployed e'ceptC
1= 3hen a child works directly )nder the sole responsibility of hisBher parents or le#al #)ardian
and where only (e(bers of hisBher fa(ily are e(ployedC pro%ided, howe%er, that hisBher
e(ploy(ent neither endan#ers hisBher life, safety, health, and (orals, nor i(pairs hisBher nor(al
de%elop(entC pro%ided, f)rther, that the parent or le#al #)ardian shall pro%ide the said child with
the prescribed pri(ary andBor secondary ed)cationJ or
"= 3here a childOs e(ploy(ent or participation in p)blic entertain(ent or infor(ation thro)#h
cine(a, theater, radio, tele%ision or other for(s of (edia is essentialC pro%ided, that the
e(ploy(ent contract is concl)ded by the childOs parents or le#al #)ardian, with the e'press
a#ree(ent of the child concerned, if possible, and the appro%al of the Depart(ent of Labor and
5(ploy(entC pro%ided, f)rther, that the followin# re<)ire(ents in all instances are strictly co(plied
withC
Aa= The e(ployer shall ens)re the protection, health, safety, (orals and nor(al de%elop(ent of
the childJ
Ab= The e(ployer shall instit)te (eas)res to pre%ent the childOs e'ploitation or discri(ination
takin# into acco)nt the syste( and le%el of re()neration, and the d)ration and arran#e(ent of
workin# ti(eJ and
Ac= The e(ployer shall for()late and i(ple(ent, s)b4ect to the appro%al and s)per%ision of
co(petent a)thorities, a contin)in# pro#ra( for trainin# and skills ac<)isition of the child.
7n the abo%e-e'ceptional cases where any s)ch child (ay be e(ployed, the e(ployer shall first
sec)re, before en#a#in# s)ch child, a work per(it fro( the Depart(ent of Labor and 5(ploy(ent
which shall ens)re obser%ance of the abo%e re<)ire(ents.
2or p)rposes of this Article, the ter( MchildM shall apply to all persons )nder ei#hteen A1E= years of
a#e.M
&ec. 1"-A. .o)rs of 3ork of a 3orkin# Child. N :nder the e'ceptions pro%ided in &ec. 1" of this
Act, as a(endedC
A1= A child below fifteen A1,= years of a#e (ay be allowed to work for not (ore than twenty A">=
ho)rs a weekC pro%ided, that the work shall not be (ore than fo)r A= ho)rs at any #i%en dayJ
A"= A child fifteen A1,= years of a#e b)t below ei#hteen A1E= shall not be allowed to work for (ore
than ei#ht AE= ho)rs a day, and in no case beyond forty A>= ho)rs a weekJ
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A6= $o child below fifteen A1,= years of a#e shall be allowed to work between ei#ht oOclock in the
e%enin# and si' oOclock in the (ornin# of the followin# day and no child fifteen A1,= years of a#e b)t
below ei#hteen A1E= shall be allowed to work between ten oOclock in the e%enin# and si' oOclock in
the (ornin# of the followin# day.M
&ec. 1"-0. 1wnership, :sa#e and Ad(inistration of the 3orkin# ChildOs 7nco(e. N The wa#es,
salaries, earnin#s and other inco(e of the workin# child shall belon# to hi(Bher in ownership and
shall be set aside pri(arily for hisBher s)pport, ed)cation or skills ac<)isition and secondarily to the
collecti%e needs of the fa(ilyC pro%ided, that not (ore than twenty percent A">K= of the childOs
inco(e (ay be )sed for the collecti%e needs of the fa(ily.
The inco(e of the workin# child andBor the property ac<)ired thro)#h the work of the child shall be
ad(inistered by both parents. 7n the absence or incapacity of either of the parents, the other parent
shall ad(inister the sa(e. 7n case both parents are absent or incapacitated, the order of
preference on parental a)thority as pro%ided for )nder the 2a(ily Code shall apply.
&ec. 1"-C. Tr)st 2)nd to Preser%e Part of the 3orkin# ChildOs 7nco(e. N The parent or le#al
#)ardian of a workin# child below ei#hteen A1E= years of a#e shall set )p a tr)st f)nd for at least
thirty percent A6>K= of the earnin#s of the child whose wa#es and salaries fro( work and other
inco(e a(o)nt to at least two h)ndred tho)sand pesos AP">>,>>>.>>= ann)ally, for which heBshe
shall render a se(i-ann)al acco)ntin# of the f)nd to the Depart(ent of Labor and 5(ploy(ent, in
co(pliance with the pro%isions of this Act. The child shall ha%e f)ll control o%er the tr)st f)nd )pon
reachin# the a#e of (a4ority.
&ec. 1"-D. Prohibition A#ainst 3orst 2or(s of Child Labor. N $o child shall be en#a#ed in the
worst for(s of child labor. The phrase Mworst for(s of child laborM shall refer to any of the followin#C
A1= All for(s of sla%ery, as defined )nder the MAnti-traffickin# in Persons Act of ">>6M, or practices
si(ilar to sla%ery s)ch as sale and traffickin# of children, debt bonda#e and serfdo( and forced or
co(p)lsory labor, incl)din# recr)it(ent of children for )se in ar(ed conflictJ or
A"= The )se, proc)rin#, offerin# or e'posin# of a child for prostit)tion, for the prod)ction of
porno#raphy or for porno#raphic perfor(ancesJ or
A6= The )se, proc)rin# or offerin# of a child for ille#al or illicit acti%ities, incl)din# the prod)ction
and traffickin# of dan#ero)s dr)#s and %olatile s)bstances prohibited )nder e'istin# lawsJ or
A= 3ork which, by its nat)re or the circ)(stances in which it is carried o)t, is ha;ardo)s or likely
to be har(f)l to the health, safety or (orals of children, s)ch that itC
a= Debases, de#rades or de(eans the intrinsic worth and di#nity of a child as a h)(an
bein#J or
b= 5'poses the child to physical, e(otional or se')al ab)se, or is fo)nd to be hi#hly stressf)l
psycholo#ically or (ay pre4)dice (oralsJ or
c= 7s perfor(ed )nder#ro)nd, )nderwater or at dan#ero)s hei#htsJ or
d= 7n%ol%es the )se of dan#ero)s (achinery, e<)ip(ent and tools s)ch as power-dri%en or
e'plosi%e power-act)ated toolsJ or
e= 5'poses the child to physical dan#er s)ch as, b)t not li(ited to the dan#ero)s feats of
balancin#, physical stren#th or contortion, or which re<)ires the (an)al transport of hea%y loadsJ or
f= 7s perfor(ed in an )nhealthy en%iron(ent e'posin# the child to ha;ardo)s workin#
conditions, ele(ents, s)bstances, co-a#ents or processes in%ol%in# ioni;in#, radiation, fire,
fla((able s)bstances, no'io)s co(ponents and the like, or to e'tre(e te(perat)res, noise le%els,
or %ibrationsJ or
#= 7s perfor(ed )nder partic)larly diffic)lt conditionsJ or
h= 5'poses the child to biolo#ical a#ents s)ch as bacteria, f)n#i, %ir)ses, proto;oans,
ne(atodes and other parasitesJ or
i= 7n%ol%es the (an)fact)re or handlin# of e'plosi%es and other pyrotechnic prod)cts.M
&ec. 1. Prohibition on the 5(ploy(ent of Children in Certain Ad%ertise(ents. N $o child shall be
e(ployed as a (odel in any ad%ertise(ent directly or indirectly pro(otin# alcoholic be%era#es,
into'icatin# drinks, tobacco and its byprod)cts, #a(blin# or any for( of %iolence or porno#raphy.M
:. +2 4o. 6(:)%- Series of "))%
DEPART$E*T +RDER *+. 65?44
.
R21es and Re-21a/,"ns Im1emen/,n-
Re2b1,% A%/ *". (2>1' Amend,n- R.A. 7614' as Amended
&5CT71$ 6. Definition of Ter(s ! As )sed in these *)les, the ter(C
Aa= PChildQ refers to any person )nder 1E years of a#e.
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Ab= PChild laborQ refers to any work or econo(ic acti%ity perfor(ed by a child that s)b4ects hi(Bher
to any for( of e'ploitation or is har(f)l to hisBher health and safety or physical, (ental or
psychosocial de%elop(ent.
Ac= P3orkin# ChildQ refers to any child en#a#ed as followsC
i. when the child is below ei#hteen A1E= years of a#e, in work or econo(ic acti%ity that is not child
labor as defined in the i((ediately precedin# s)b-para#raph, and
ii. when the child below fifteen A1,= years of a#e, Ai= in work where heBshe is directly )nder the
responsibility of hisBher parents or le#al #)ardian and where only (e(bers of the child8s fa(ily are
e(ployedJ or Aii=in p)blic entertain(ent or infor(ation.
Af= PMe(bers of the fa(ilyQ refers to the child8s parents, #)ardian, brothers or sisters whether of f)ll
or half blood, and other ascendants and descendants or collateral relati%es within the fo)rth ci%il
de#ree of consan#)inity.
A#= P5(ployerQ refers to any person, whether nat)ral or 4)ridical who, whether for %al)able
consideration or not, directly or indirectly proc)res, )ses, a%ails itself of, contracts o)t or otherwise
deri%es benefit fro( the work or ser%ices of a child in any occ)pation, )ndertakin#, pro4ect or
acti%ity, whether for profit or not. 7t incl)des any person actin# in the interest of the e(ployer.
A4= P3ork per(itQ refers to the per(it sec)red by the e(ployer, parent or #)ardian fro( the
Depart(ent for any child below 1, years of a#e in any work allowed )nder *ep)blic Act $o. 9"61.
Ak= P.o)rs of workQ incl)de A1= all ti(e d)rin# which a child is re<)ired to be at a prescribed
workplace, and A"= all ti(e d)rin# which a child 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.
Al= P3orkplaceQ refers to the office, pre(ises or worksite where a child is te(porarily or habit)ally
assi#ned. 3here there is no fi'ed or definite workplace, the ter( shall incl)de the place where the
child act)ally perfor(s work to render ser%ice or to take an assi#n(ent, to incl)de ho)seholds
e(ployin# children.
A<= P2orced labor and sla%eryQ refers to the e'traction of work or ser%ices fro( any person by
(eans of entice(ent, %iolence, inti(idation or threat, )se of force or coercion, incl)din# depri%ation
of freedo(, ab)se of a)thority or (oral ascendancy, debt bonda#e or deception.
Ar= PChild porno#raphyQ refers to any representation of a child en#a#ed in real or si()lated e'plicit
se')al acti%ities or any representation of the se')al parts of a child for pri(arily se')al p)rposes.
Chapter " ! Prohibition on the 5(ploy(ent of Children

&5CT71$ . Feneral Prohibition ! 5'cept as otherwise pro%ided in these *)les, no child below 1,
years of a#e shall be e(ployed, per(itted or s)ffered to work, in any p)blic or pri%ate
establish(ent.
&5CT71$ ,. Prohibition on the 5(ploy(ent of Children in 3orst 2or(s of Child Labor ! $o child
shall be en#a#ed in the worst for(s of child labor. The phrase Pworst for(s of child laborQ shall
refer to any of the followin#C
Aa= All for(s of sla%ery, as defined )nder the PAnti-traffickin# in Persons Act of ">>6Q, or practices
si(ilar to sla%ery s)ch as sale and traffickin# of children, debt bonda#e and serfdo( and forced or
co(p)lsory labor, incl)din# recr)it(ent children for )se in ar(ed conflict.
Ab= The )se, proc)rin#, offerin# or e'posin# of a child for prostit)tion, for the prod)ction of
porno#raphy or for porno#raphic perfor(ancesJ
Ac= The )se, proc)rin# or offerin# of a child for ille#al or illicit acti%ities, incl)din# the prod)ction or
traffickin# of dan#ero)s dr)#s or %olatile s)bstances prohibited )nder e'istin# lawsJ or
Ad= 3ork which, by its nat)re or the circ)(stances in which it is carried o)t, is ha;ardo)s or likely
to be har(f)l to the health, safety or (orals of children, s)ch that itC
i. Debases, de#rades or de(eans the intrinsic worth and di#nity of a child as a h)(an bein#J
or
ii. 5'poses the child to physical, e(otional or se')al ab)se, or is fo)nd to be hi#hly stressf)l
psycholo#ically or (ay pre4)dice (oralsJ or
iii. 7s perfor(ed )nder#ro)nd, )nderwater or at dan#ero)s hei#htsJ or
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i%. 7n%ol%es the )se of dan#ero)s (achinery, e<)ip(ent and tools s)ch as power-dri%en or
e'plosi%e power-act)ated toolsJ or
%. 5'poses the child to physical dan#er s)ch as, b)t not li(ited to the dan#ero)s feats of
balancin#, physical stren#th or contortion, or which re<)ires the (an)al transport of hea%y loadsJ or
%i. 7s perfor(ed in an )nhealthy en%iron(ent e'posin# the child to ha;ardo)s workin#
conditions, ele(ents, s)bstances, co-a#ents or processes in%ol%in# ioni;in#, radiation, fire,
fla((able s)bstances, no'io)s co(ponents and the like, or to e'tre(e te(perat)res, noise le%els
or %ibrationsJ or
%ii. 7s perfor(ed )nder partic)larly diffic)lt conditionsJ or
%iii. 5'poses the child to biolo#ical a#ents s)ch as bacteria, f)n#i, %ir)ses, proto;oa,
ne(atodes and other parasitesJ or
i'. 7n%ol%es the (an)fact)re or handlin# of e'plosi%es and other pyrotechnic prod)cts.
&5CT71$ +. Prohibition on the 5(ploy(ent of Children in Certain Ad%ertise(ents ! $o child below
1E years of a#e shall be e(ployed as a (odel in any ad%ertise(ent directly or indirectly pro(otin#
alcoholic be%era#es, into'icatin# drinks, tobacco and its byprod)cts, #a(blin# or any for( of
%iolence or porno#raphy.
Chapter 6 ! 5'ceptions to the Prohibition
&5CT71$ 7. 5'ceptions and Conditions ! The followin# shall be the only e'ceptions to the
prohibition on the e(ploy(ent of a child below 1, year of a#eC
Aa= 3hen the child works )nder the sole responsibility of hisBher parents or #)ardian, pro%ided that
only (e(bers of the child8s fa(ily are e(ployed.
Ab= 3hen the child8s e(ploy(ent or participation in p)blic entertain(ent or infor(ation is essential,
re#ardless of the e'tent of the child8s role.
&)ch e(ploy(ent shall be strictly )nder the followin# conditionsC
i. The total n)(ber of ho)rs worked shall be in accordance with &ection 1, of these *)lesJ
ii. The e(ploy(ent does not endan#er the child8s life, safety, health and (orals, nor i(pair
the child8s nor(al de%elop(entJ
iii. The child is pro%ided with at least the (andatory ele(entary or secondary ed)cationJ and
i%. The e(ployer sec)res a work per(it for the child in accordance with &ection E-1" of these
*)les.
Chapter ! *e<)ire(ents to A%ail of 5'ception To 5(ploy(ent Prohibition
&5CT71$ E. 3ork Per(it ! 5'cept as pro%ided is &ection 16, no child below 1, years of a#e shall
be allowed to co((ence work witho)t a work per(it. An e(ployer ()st first sec)re a work per(it
fro( the *e#ional 1ffice of the Depart(ent ha%in# 4)risdiction o%er the workplace of the child. 7n
cases where the work is done in (ore than one workplace fallin# )nder the 4)risdiction of (ore
than one *e#ional 1ffice, the application shall be (ade with the *e#ional 1ffice ha%in# 4)risdiction
o%er the principal office of the e(ployer. .owe%er, at least two days prior to the perfor(ance of the
work, the e(ployer shall infor( the *e#ional 1ffice ha%in# 4)risdiction o%er the workplace of the
acti%ities to be )nder taken in%ol%in# the child.
&5CT71$ 9. *e<)ire(ents for the 7ss)ance of 3ork Per(it ! The e(ployer shall s)b(it to the
appropriate *e#ional 1ffice the 2ollowin#C
Aa= A d)ly acco(plished and %erified application for work per(it containin# the followin#
infor(ationC
i. Ter(s and conditions of e(ploy(ent incl)din# ho)rs of work, n)(ber of workin# days,
re()neration, and rest period, which shall be in accordance with lawJ
ii. Meas)res to ens)re the protection, health, safety, (orals, and nor(al de%elop(ent of the
child, incl)din# b)t not li(ited to the followin#C
1. co(fortable workplace and ade<)ate <)artersJ
". break or rest periods in co(fortable day beds or co)chesJ
6. clean and separate dressin# roo(s and toilet facilities for boys and #irlsJ
. pro%ision for ade<)ate (eals and snacks and sanitary eatin# facilityJ
,. pro%ision of all the necessary assistance to ens)re the ade<)ate and i((ediate
(edical and dental attendance and treat(ent to an in4)red or sick child in case of
e(er#ency.
Ab= 5'cept when the child is below se%en years old,
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i. Proof that the child is enrolled and re#)larly attendin# ele(entary or secondary school
classes, consistin# of certificate of enrol(ent for the c)rrent year or c)rrent school identification or
report cardJ or
ii. 7f the child is not enrolled, a brief description of the pro#ra( for ed)cation, trainin# and skills
ac<)isition for the child, in accordance with &ection 19 Ab= of these *)les.
Ac= An a)thenticated copy of the child8s 0irth Certificate or a Certificate of late *e#istration of 0irth
iss)ed by the $&1 or the cityB()nicipal re#istrarJ
Ad= A (edical certificate iss)ed by a licensed physician statin# that heBshe has personally
e'a(ined the child for who( a work per(it is bein# sec)red, and that the child is fit to )ndertake
the work in which heBshe is to be en#a#ed. &)ch certificate ()st bear in print the certifyin#
physician8s f)ll na(e and hisBher license n)(berJ
Ae= Two passport si;e photo#raphs of the childJ
Af= 3hen the e(ployer is the parent, #)ardian, or a fa(ily (e(ber other than the parent of the
child, heBshe shall present any %alid doc)(ent s)ch as latest passport, latest postalBco(pany
identification card, and dri%er8s license establishin# hisBher identity. A le#al #)ardian is likewise
re<)ired to present a d)ly a)thenticated proof of le#al #)ardianship while a fa(ily (e(ber shall
present any proof of relationship to the childJ
A#= 3hen the e(ployer is in p)blic entertain(ent or infor(ation, heBshe shall s)b(it a certified tr)e
copy of the e(ployer8s b)siness per(it or certificate of re#istration and a written e(ploy(ent
contract to be appro%ed by the Depart(ent. An e'press a#ree(ent of the child to the pro%isions of
the contract is needed when s)ch child is between se%en and below 1, years of a#e.
&5CT71$ 1". /alidity of 3ork Per(it ! The work per(it shall state the period of its %alidity based
on the e(ploy(ent contract of the application for work per(it, as the case (ay be. .owe%er, the
period of %alidity shall in no case e'ceed one year.
&5CT71$ 16. 5(ploy(ent of &pot 5'tras ! 7n p)blic entertain(ent or infor(ation, the
re<)ire(ents for the iss)ance of work per(it stated in &ection E-1" shall not be applicable to the
e(ploy(ent of spot e'tras or those bein# cast o)tri#ht on the day of the fil(in# or tapin#. 7nstead,
the e(ployer shall file a notice with the *e#ional 1ffice where the work is to be perfor(ed that it
will )ndertake acti%ities in%ol%in# child work. The notice shall be in the for( prescribed by the
Depart(ent and shall state the appro'i(ate n)(ber of child workers to be e(ployed, the date,
place and ti(e the work is to be perfor(ed, and an )ndertakin# that the e(ploy(ent shall be in
confor(ity with *ep)blic Act $o. 9"61 and these *)les.
Chapter , ! .o)rs of 3ork
&5CT71$ 1,. .o)rs of 3ork of a 3orkin# Child ! The followin# ho)rs of work shall be obser%ed
for any child allowed to work )nder *ep)blic Act $o. 9"61 and these *)lesC
Aa= 2or a child below 1, years of a#e, the ho)rs of work shall not be (ore than twenty A">= ho)rs
as week, pro%ided that the work shall not be (ore than fo)r ho)rs at any #i%en dayJ
Ab= 2or a child 1, years of a#e, b)t below 1E, the ho)rs of work shall not be (ore than ei#ht ho)rs
a day, and in no case beyond > ho)rs a weekJ and
Ac= $o child below 1, year of a#e shall be allowed to work between ei#ht o8clock in the e%enin#
and si' o8clock in the (ornin# of the followin# day and no child 1, years of a#e b)t below 1E shall
be allowed to work between ten o8clock in the e%enin# and si' o8clock in the (ornin# of the
followin# day.
&leepin# ti(e as well tra%el ti(e of a child en#a#ed in p)blic entertain(ent or infor(ation fro(
hisBher residence to hisBher workplace shall not be incl)ded as ho)rs worked witho)t pre4)dice to
the application of e'istin# r)les on e(ployees co(pensation.
Chapter + ! 3orkin# Child8s 7nco(e
&5CT71$ 1+. 1wnership and :se of the 3orkin# Child8s 7nco(e ! The wa#es, salaries, earnin#s
and other inco(e of the workin# child belon# to hi(Bher in ownership and shall be set aside
pri(arily for hisBher s)pport, ed)cation, or skills ac<)isition and secondarily to the collecti%e needs
of the fa(ilyC Pro%ided, That not (ore than twenty percent A">K= of the child8s inco(e (ay be )sed
for the collecti%e needs of the fa(ily.
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&5CT71$ "". Fro)nds for &)spension and Cancellation of 3ork Per(it ! The *e#ional Director
shall s)spend or cancel the work per(it iss)ed to a workin# child )nder the followin# instancesC
Aa= 7f there is fra)d or (isrepresentation in the application for work per(it or any of its s)pportin#
doc)(entsJ
Ab= 7f the ter(s and conditions set forth in the child8s e(ploy(ent contract andBor e(ployer8s
)ndertakin# ha%e been %iolatedJ
Ac= 7f the e(ployer fails to instit)te (eas)res to ens)re the protection, health, safety, (orals, and
nor(al de%elop(ent of the child as re<)ired in &ection 7 Ab=iiJ
Ad= 7f the e(ployer fails to for()late and i(ple(ent a pro#ra( for the ed)cation, trainin# and skills
ac<)isition of the childJ or
Ae= 7f a child has been depri%ed access to for(al, non-for(al or alternati%e learnin# syste(s of
ed)cation.
;. RA ,&,, . Anti:Se;ual 6arassment Act/

&ec. 6. 3ork, 5d)cation or Trainin#-related &e')al .arass(ent Defined. ! 3ork, ed)cation or
trainin#-related se')al harass(ent is co((itted by an e(ployee, (ana#er, s)per%isor, a#ent of
the e(ployer, teacher, instr)ctor, professor, coach, trainer, or any other person who, ha%in#
a)thority, infl)ence or (oral ascendancy o%er another in a work or trainin# or ed)cation
en%iron(ent, de(ands, re<)ests or otherwise re<)ires any se')al fa%or fro( the other, re#ardless
of whether the de(and, re<)est or re<)ire(ent for s)b(ission is accepted by the ob4ect of said
Act.
Aa= 7n a work-related or e(ploy(ent en%iron(ent, se')al harass(ent is co((itted whenC
A1= The se')al fa%or is (ade as a condition in the hirin# or in the e(ploy(ent, re-
e(ploy(ent or contin)ed e(ploy(ent of said indi%id)al, or in #rantin# said indi%id)al fa%orable
co(pensation, ter(s, conditions, pro(otions, or pri%ile#esJ or the ref)sal to #rant the se')al fa%or
res)lts in li(itin#, se#re#atin# or classifyin# the e(ployee which in a way wo)ld discri(inate,
depri%e or di(inish e(ploy(ent opport)nities or otherwise ad%ersely affect said e(ployeeJ
A"= The abo%e acts wo)ld i(pair the e(ployee8s ri#hts or pri%ile#es )nder e'istin#
labor lawsJ or
A6= The abo%e acts wo)ld res)lt in an inti(idatin#, hostile, or offensi%e en%iron(ent
for the e(ployee.
3. Sec. 3(- RA &()% .Philiine Aids Prevention and *ontrol Ac of 1##&/
A* ACT PR+$5L;ATI*; P+LICIES A*D PRESCRIBI*; $EAS5RES 0+R THE
PRE:E*TI+* A*D C+*TR+L +0 HI:CAIDS I* THE PHILIPPI*ES' I*STIT5TI*; A
*ATI+*WIDE HI:CAIDS I*0+R$ATI+* A*D ED5CATI+*AL PR+;RA$' ESTABLISHI*; A
C+$PREHE*SI:E HI:CAIDS $+*IT+RI*; SASTE$' STRE*;THE*I*; THE PHILIPPI*E
*ATI+*AL AIDS C+5*CIL' A*D 0+R +THER P5RP+SES.
&5CT71$ 6,. Discri(ination in the 3orkplace - Discri(ination in any fro( pre-e(ploy(ent to post-
e(ploy(ent, incl)din# hirin#, pro(otion or assi#n(ent, based on the act)al, percei%ed or
s)spected .7/ stat)s of an indi%id)al is prohibited. Ter(ination fro( work on the sole basis of
act)al, percei%ed or s)spected .7/ stat)s is dee(ed )nlawf)l.
<. RA #")& .Anti:3raffic<ing in Persons Act of "))3= 5orced Labor/
A* ACT T+ I*STIT5TE P+LICIES T+ ELI$I*ATE TRA00ICDI*; I* PERS+*S ESPECIALLA
W+$ E* A*D CHILDRE*' ESTABLISHI*; THE *ECESSARA I*STIT5TI+*AL $ECHA*IS$S
0+R THE PR+TECTI+* A*D S5PP+RT +0 TRA00ICDED PERS+*S' PR+:IDI*;
PE*ALTIES 0+R ITS :I+LATI+*S' A*D 0+R +THER P5RP+SES
&5C.6. Definition of Ter(s. - As )sed in this Act
(d) 2orced Labor and &la%ery - refer to the e'traction of work or ser%ices fro( any person by
(eans of entice(ent, %iolence, inti(idation or threat, )se of force or coercion, incl)din#
depri%ation of freedo(, ab)se of a)thority or (oral ascendancy, debt-bonda#e or
deception.
=. Sec.3"- 3itle 3- *ha.1- RA ,",, .!agna *arta for +isabled Person/
Discri(ination on 5(ploy(ent. $o entity, p)blic or pri%ate, sho)ld discri(inate a#ainst <)alified
disabled person in ter(s of 4ob application proced)res, hirin#, pro(otion, dischar#e, co(pensation
and other benefits.
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>. Sec.((.%- RA &,#1 .7en. 8an<ing Laws of ")))/
$o bank shall e(ploy cas)al or non-re#)lar personnel or too len#thy probationary personnel in the
cond)ct of its b)siness in%ol%in# deposits.
?. Art. 1,)3- *ivil *ode .1nvoluntary Servitude/
Art. 17>6. $o contract which practically a(o)nts to in%ol)ntary ser%it)de, )nder any #)ise
whatsoe%er, shall be %alid.
@. Revised Penal *ode
Art. "7". S*(8"r0. N The penalty of prision (ayor and a fine of not e'ceedin# 1>,>>> pesos shall
be i(posed )pon anyone who shall p)rchase, sell, kidnap or detain a h)(an bein# for the p)rpose
of ensla%in# hi(.
7f the cri(e be co((itted for the p)rpose of assi#nin# the offended party to so(e i((oral traffic,
the penalty shall be i(posed in its (a'i()( period.
Art. "76. E9%*o#(#o& of $!#*+ *(1or. N The penalty of prision correccional in its (ini()( and
(edi)( periods and a fine not e'ceedin# ,>> pesos shall be i(posed )pon anyone who, )nder the
prete't of rei(b)rsin# hi(self of a debt inc)rred by an ascendant, #)ardian or person entr)sted
with the c)stody of a (inor, shall, a#ainst the latterOs will, retain hi( in his ser%ice.
Art. "7. S"r8#$"' r"&+"r"+ ,&+"r $om%,*'#o& #& %(0m"& of +"1. N The penalty of arresto (ayor
in its (a'i()( period to prision correccional in its (ini()( period shall be i(posed )pon any
person who, in order to re<)ire or enforce the pay(ent of a debt, shall co(pel the debtor to work
for hi(, a#ainst his will, as ho)sehold ser%ant or far( laborer.
Art. "7E. E9%*o#(#o& of m#&or' . N The penalty of prision correccional in its (ini()( and (edi)(
periods and a fine not e'ceedin# ,>> pesos shall be i(posed )ponC
1. Any person who shall ca)se any boy or #irl )nder si'teen years of a#e to perfor( any dan#ero)s
feat of balancin#, physical stren#th, or contortion.
". Any person who, bein# an acrobat, #y(nast, rope-walker, di%er, wild-ani(al ta(er or circ)s
(ana#er or en#a#ed in a si(ilar callin#, shall e(ploy in e'hibitions of these kinds children )nder
si'teen years of a#e who are not his children or descendants.
6. Any person en#a#ed in any of the callin#s en)(erated in the ne't para#raph precedin# who
shall e(ploy any descendant of his )nder twel%e years of a#e in s)ch dan#ero)s e'hibitions.
. Any ascendant, #)ardian, teacher or person entr)sted in any capacity with the care of a child
)nder si'teen years of a#e, who shall deli%er s)ch child #rat)ito)sly to any person followin# any of
the callin#s en)(erated in para#raph " hereof, or to any habit)al %a#rant or be##ar.
7f the deli%ery shall ha%e been (ade in consideration of any price, co(pensation, or pro(ise, the
penalty shall in e%ery case be i(posed in its (a'i()( period.
7n either case, the #)ardian or c)rator con%icted shall also be re(o%ed fro( office as #)ardian or
c)ratorJ and in the case of the parents of the child, they (ay be depri%ed, te(porarily or
perpet)ally, in the discretion of the co)rt, of their parental a)thority.
. Any person who shall ind)ce any child )nder si'teen years of a#e to abandon the ho(e of its
ascendants, #)ardians, c)rators, or teachers to follow any person en#a#ed in any of the
callin#s (entioned in para#raph " hereof, or to acco(pany any habit)al %a#rant or be##ar.
DEPART$E*T +RDERS
D+ *". 4' Se!,es ". 1(((and D+LE $em". C,!. *".2' Se!,es ". 1(()E
D+LE $em"!and2m C,!%21a! *". 2?1(()
Te%&n,%a1 ;2,de1,nes ."! C1ass,.y,n- Ha@a!d"2s and *"n?Ha@a!d"2s Es/ab1,s&men/s'
W"!=1a%es and W"!= P!"%esses.
&ec 6. Criteria for Classifyin# .a;ardo)s 5stablish(ents or 3orkplaces.
An establish(ent or workplace (ay be classified as ha;ardo)s if any of the conditions
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pro%ided )nder *)le 1>16 of the 1&.& has been confir(ed, as followsC
Aa= 3here the nat)re of the work e'poses the workers to dan#ero)s en%iron(ent ele(ents,
conta(inants or work conditions incl)din# ioni;in# radiations, che(icals, fire, fla((able
s)bstances, no'io)s co(ponents and the likeJ
Ab= 3here the workers are en#a#ed in constr)ction work, lo##in#, fire-fi#htin#, (inin#,
<)arryin#, blastin#, ste%edorin#, dock work, deep sea fishin# and (echani;ed far(in#J
Ac= 3here the workers are en#a#ed in the (an)fact)re or handlin# of e'plosi%es and other
pyrotechnic prod)ctsJ
Ad= 3here the workers )se or are e'posed to power-dri%en or e'plosi%e powder act)ated
toolsJ and
Ae= 3here the workers are e'posed to biolo#ic a#ents like bacteria and f)n#i, %ir)ses,
proto;oa, ne(atodes and other parasites.
D+ *". 65?44' Se!,es ". 2444 .See Right to 6ire on Prohibitions to 6iring/
H,!,n- ". Em1"yees
1. RA ,#") 4ew $lectrical $ngineering Law
A$ ACT P*1/7D7$F 21*, A M1*5 *5&P1$&7/5 A$D C1MP*5.5$&7/5 *5F:LAT71$ 21*
T.5 P*ACT7C5, L7C5$&7$F, A$D *5F7&T*AT71$ 12 5L5CT*7CAL 5$F7$55*& A$D
5L5CT*7C7A$&
&5C. 66. P"r'o&&"* R"5,#r"+ . 5'cept as otherwise pro%ided in this Act, e%ery electric
plant, ind)strial plant or factory, co((ercial establish(ent, instit)tional b)ildin#, watercraft,
electric loco(oti%e or in any other installation where persons and properties are e'posed to
electrical ha;ards shall not ha%e less than the followin# co(ple(ent of professional electrical
en#ineer, re#istered electrical en#ineer, and re#istered (aster electricianC
Ab= 7nd)strial plants or factories, co((ercial establish(ents, or instit)tional b)ildin#s
ha%in# a connected k/A load of any si;e and e(ployin# %olta#es of any standard ratin# -
one A1= professional electrical en#ineer or one A1= re#istered electrical en#ineer. .owe%er, for
connected loads )p to fi%e h)ndred kilo%olt a(peres A,>> k/A= and e(ployin# %olta#es )p
to si' h)ndred %olts A+>> /= one A1= re#istered (aster electricianJ

". RA &%#( Philiine !echanical $ngineering Act of 1##&

A* ACT RE;5LATI*; THE PRACTICE +0 $ECHA*ICAL E*;I*EERI*; I* THE
PHILIPPI*ES
&ec. 6. P"r'o&&"* R"5,#r"+ #& M"$!(&#$(* P*(&. N 5%ery (echanical work pro4ect or plant in
operation shall ha%e not less than the followin# co(ple(ent of resident licensed professional
(echanical en#ineer, (echanical en#ineer or certified plant (echanicC
Aa= 1>> kw or o%er b)t not (ore than 6>> kwC one A1= certified plant (echanic, or (ore (echanical
en#ineer or one A1= professional (echanic en#ineerC Pro%ided, That e%ery (echanical work,
pro4ect, or plant in this cate#ory operatin# in (ore than one shift e%ery twenty-fo)r ho)rs, shall
ha%e in addition to the (ini()( personnel herein re<)ired, one A1= certified plant (echanical, or
one A1= (echanical en#ineer, or one A1= professional (echanical en#ineer in-char#e of each and
e%ery additional shift.chan robles %irt)al law library
Ab= 6>> kw or o%er, b)t not (ore than ">>> kwC one A1= (echanical en#ineer or one A1= professional
(echanical en#ineer or one A1= professional (echanical en#ineerC Pro%ided, That e%ery
(echanical work, pro4ect, or plant in this cate#ory operatin# in (ore than one shift e%ery twenty-
fo)r A"= ho)rs shall ha%e, in addition to the (ini()( personnel herein re<)ired at least one A1=
(echanical en#ineer, or one A1= professional (echanical en#ineer in-char#e of each and e%ery
additional shift.
Ac= 1%er ">>> kwC one A1= professional (echanical en#ineerC Pro%ided, That e%ery (echanical
work, pro4ect or plant in this cate#ory operatin# in (ore than one shift e%ery twenty-fo)r A"= ho)rs
shall ha%e, in addition to the (ini()( personnel herein re<)ired at least one A1= professional
(echanical en#ineer in-char#e of each and e%ery additional shift.
4. WA;ES A*D WA;E RATI+*ALIFATI+* ACT
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Wa-e and Sa1a!y: C"n%e/ 6A!/.()7

WA;E? paid to any e(ployee shall (ean the re()neration or earnin#s, howe%er desi#nated,
capable of bein# e'pressed in ter(s of (oney, whether fi'ed or ascertained on a ti(e, task, piece, or
co((ission basis, or other (ethod of calc)latin# the sa(e, which is payable by an e(ployer to an
e(ployee )nder a written or )nwritten contract of e(ploy(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 by the
&ecretary of Labor and 5(ploy(ent, of board, lod#in# or other facilities c)sto(arily f)rnished by the
e(ployer to the e(ployee. M2air and reasonable %al)eM shall not incl)de any profit to the e(ployer or
to any person affiliated with the e(ployer.
As defined, the 3AF5 is re()neration for ser%ices rendered and incl)des the fair and reasonable
%al)e of facilities as (ay be deter(ined by the &ecretary of Labor. &o it is not li(ited to cash
pay(ent foran e(ployee8s ser%ices.
*"/e: Article 97 also defines the different Methods of 2i'in# Co(pensationC
1. Ti(e Adaily and (onthly paid workers=
". Co((ission
6. 9ob or task basis
. Piece-rate basis Apay(ent by res)lts=
These are %ery i(portant in relation to persons or e(ployees who are e'e(pted fro( en4oyin# the
benefits )nder the Labor Code. 0eca)se )nder Article E", workers paid by res)lts are e'e(pted fro(
o%erti(e pay, ser%ice incenti%e lea%e, etc
C+*CEPT +0 WA;E A*D SALARA
3AF5& as distin#)ished fro( &ALA*@ applies to the co(pensation for (an)al labor, skilled of
)nskilled paid at stated ti(es, and (eas)red by the day, week, (onth, or season, while &ALA*@
denotes a hi#her de#ree or e(ploy(ent or s)perior #rade of ser%ices and i(plies a position or office.
0y contrast, the ter( 3AF5& indicates considerable pay for a lower and less responsible character
of e(ploy(ent, while &ALA*@ is s)##esti%e of a lar#er and (ore per(anent of fi'ed co(pensation
for (ore i(portant ser%ice.
A!/,%1e (). A%%*#$(#o& of T#*".
This Title shall not apply to far( tenancy or leasehold, do(estic ser%ice and persons workin# in
heir respecti%e ho(es in needlework or in any cotta#e ind)stry d)ly re#istered in accordance with
law.
A!/,%1e (7. D"f#&##o&'.
Aa= MPersonM (eans an indi%id)al, partnership, association, corporation, b)siness tr)st, le#al
representati%e or any or#ani;ed #ro)p of person.
Af= M3a#eM paid to any e(ployee shall (ean the re()neration or earnin#s, howe%er
desi#nated, capable of bein# e'pressed in ter(s of (oney, whether fi'ed or ascertained on a ti(e,
task, piece, or co((ission basis, or other (ethod of calc)latin# the sa(e, which is payable by an
e(ployer to an e(ployee )nder a written or )nwritten contract of e(ploy(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 by the &ecretary of Labor and 5(ploy(ent, of board, lod#in# or other facilities
c)sto(arily f)rnished by the e(ployer to the e(ployee. M2air and reasonable %al)eM shall not
incl)de any profit to the e(ployer or to any person affiliated with the e(ployer.
P!,n%,1es ". G0a,! dayHs wa-e ."! a .a,! dayHs 1ab"!I
7f there is no work perfor(ed by the e(ployee there can be no wa#e or pay )nless the laborer was
able, willin# and ready to work b)t was pre%ented by (ana#e(ent or was ille#ally locked o)t,
s)spended or dis(issed.
GEB2a1 ay ."! eB2a1 w"!=I
7f they are perfor(in# si(ilar f)nctions and responsibilities )nder si(ilar workin# conditions, sho)ld
be paid.
R,-&/ /" a G1,#,n- wa-eI
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&ection 6, Art E, 19E7 Constit)tion
'''
&tate shall #)arantee the ri#hts of all workers to self-or#ani;ation, collecti%e bar#ainin# and
ne#otiations, and peacef)l concerted acti%ities, incl)din# the ri#ht to strike in accordance with law.
They shall be entitled to sec)rity of ten)re, h)(ane conditions of work, and a *#8#&. )(.". They
shall also participate in policy and decision-(akin# processes affectin# their ri#hts and benefits as
(ay be pro%ided by law. D''
0a%,1,/,es and S21emen/
0a%,1,/,es J are ite(s of e'pense necessary for the laborer8s and his fa(ily8s e'istence and
s)bsistence.
ReB2,s,/es:
1. M)st be c)sto(arily f)rnished by the e(ployer to the e(ployees
*ustomary > #' fo,&+"+ o& *o&.4"'(1*#'!"+ (&+ $o&'(& %r($#$" $o&&o#&. r".,*(r#0.
". M)st be char#ed at a fair and reasonable %al)e
6. The pro%ision on ded)ctible facilities ()st be %ol)ntarily accepted by the e(ployee in
writin#. AMabe;a %s. $L*C=
0a%,1,/,es .Section (- Rule ?11- 8oo< 111/: articles or ser%ices for the benefit of the e(ployee or his
fa(ily b)t shall not incl)de tools of the trade or articles or ser%ices pri(arily for the benefit of the
e(ployer or necessary to the cond)ct of the e(ployer8s b)siness.
S21emen/ J Constit)te e'tra re()neration or special pri%ile#es or benefits #i%en to or recei%ed by
the laborers o%er and abo%e their ordinary earnin#s or wa#es.
The classification of an ite( of e'pense as a facility or a s)pple(ent will depends on the %,r%o'" (&+
&o o& !" /#&+. &o, if it is principally or (ainly for the benefit of the e(ployee, classify as facilities,
and the fair and reasonable %al)e of that can be considered as ded)ctible fro( the e(ployee8s wa#e.
An e(ployer can %alidly pay the e(ployee in the for( of cash or in kind. And that kind refers to
facilities.
7f the re<)isites are all present, that facilities (ay take the place of the cash pay(ent of the
e(ployee8s wa#e. This is one e'ception to the re<)ire(ent that an e(ployee8s wa#e shall be paid in
le#al tenderJ yo) cannot pay it in kind.
7f it classifies )nder facilities, it shall incl)de the fair and reasonable %al)e of board, lod#in#, etc. as
lon# as it is (ainly and principally for the benefit of the e(ployee.
Em1"yee Bene.,/s
W"!=e!Hs 1,en 6A!/.1747' C,#,1 C"de7
Art. 17>7. The laborerOs wa#es shall be a lien on the #oods (an)fact)red or the work done.
EKem/,"n .!"m EKe%2/,"n "! a//a%&men/ 6A!/. 174)' C,#,1 C"de7
Art. 17>E. The laborerOs wa#es shall not be s)b4ect to e'ec)tion or attach(ent, e'cept for debts
inc)rred for food, shelter, clothin# and (edical attendance.
Art. 17>9. The e(ployer shall neither sei;e nor retain any tool or other articles belon#in# to the
laborer.
$e/&"ds ". 0,K,n- C"mensa/,"n
A!/,%1e (). A%%*#$(#o& of T#*". This Title shall not apply to far( tenancy or leasehold, do(estic
ser%ice and persons workin# in their respecti%e ho(es in needlework or in any cotta#e ind)stry
d)ly re#istered in accordance with law.
$e/&"ds ". 0,K,n- C"mensa/,"n 6A!/. (77:
1. Ti(e Adaily and (onthly paid workers=
". Co((ission
6. 9ob or task basis
. Piece-rate basis Apay(ent by res)lts=
A!/,%1e (7. D"f#&##o&'. As )sed in this TitleC
Aa= MPersonM (eans an indi%id)al, partnership, association, corporation, b)siness tr)st, le#al
representati%e or any or#ani;ed #ro)p of person.
Af= M3a#eM paid to any e(ployee shall (ean the re()neration or earnin#s, howe%er desi#nated,
capable of bein# e'pressed in ter(s of (oney, whether fi'ed or ascertained on a ti(e, task, piece,
or co((ission basis, or other (ethod of calc)latin# the sa(e, which is payable by an e(ployer to
Page 20 of 267
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an e(ployee )nder a written or )nwritten contract of e(ploy(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 by
the &ecretary of Labor and 5(ploy(ent, of board, lod#in# or other facilities c)sto(arily f)rnished
by the e(ployer to the e(ployee. M2air and reasonable %al)eM shall not incl)de any profit to the
e(ployer or to any person affiliated with the e(ployer.
RA 6727 P"1,%,es ". /&e S/a/e
&ec. ". 7t is hereby declared the policy of the &tate to rationali;e the fi'in# of (ini()( wa#es and
to pro(ote prod)cti%ity-i(pro%e(ent and #ain-sharin# (eas)res to ens)re a decent standard of
li%in# for the workers and their fa(iliesJ to #)arantee the ri#hts of labor to its 4)st share in the fr)its
of prod)ctionJ to enhance e(ploy(ent #eneration in the co)ntryside thro)#h ind)stry dispersalJ
and to allow b)siness and ind)stry reasonable ret)rns on in%est(ent, e'pansion and #rowth.
The &tate shall pro(ote collecti%e bar#ainin# as the pri(ary (ode of settin# wa#es and other
ter(s and conditions of e(ploy(entJ and, whene%er necessary, the (ini()( wa#e rates shall be
ad4)sted in a fair and e<)itable (anner, considerin# e'istin# re#ional disparities in the cost of li%in#
and other socio-econo(ic factors and the national econo(ic and social de%elop(ent plans.
;"#e!nmen/ A-en%,es ,n#"1#ed:
*a/,"na1 Wa-es and P!"d2%/,#,/y B"a!d
A!/ 124: There is hereby created a $ational 3a#es and Prod)cti%ity Co((ission, hereinafter
referred to as the Co((ission, which shall be attached to the Depart(ent of Labor and
5(ploy(ent AD1L5= for %o*#$0 (&+ %ro.r(m $oor+#&(#o&.
C"m"s,/,"n:
a= &ecretary of Labor and 5(ploy(ent as e'-officio chair(an
b= Director-Feneral of $5DA as %ice e'-officio chair(an
c= " (e(bers fro( worker8s sector
d= " (e(bers fro( e(ployee8s sector
Re-,"na1 T!,a!/,/e Wa-es and P!"d2%/,#,/y B"a!d
A!/ 122. There are hereby created *e#ional Tripartite 3a#es and Prod)cti%ity 0oards in all
re#ions, incl)din# a)tono(o)s re#ions as (ay be established by law. The Co((ission shall
deter(ine the officesBhead<)arters of the respecti%e *e#ional 0oards.
C"m"s,/,"n:
a= *e#ional Director of the D1L5 as chair(an
b= *e#ional Director of the $5DA and DT7 as %ice chair(an
c= " (e(bers each fro( the workers and e(ployers sector who shall be
appointed by the President of the Philippines, )pon reco((endation of the &ecretary of
the D1L5
d= 5ach *e#ional 0oard to be headed by its Chair(an shall be assisted
by a &ecretarial
P!"&,b,/,"n A-a,ns/ In32n%/,"n
RA 6727' Se%. 7. Pro!#1##o& A.(#&' I&A,&$#o&. $o preli(inary or per(anent in4)nction or
te(porary restrainin# order (ay be iss)ed by any co)rt, trib)nal or any other entity a#ainst any
proceedin# before the Co((ission or 0oard.
A!/. 1"+. Pro!#1##o& A.(#&' I&A,&$#o&. $o preli(inary or per(anent in4)nction or te(porary
restrainin# order (ay be iss)ed by any co)rt, trib)nal or any other entity a#ainst any proceedin#
before the Co((ission or 0oard.
*WPC ;2,de1,nes *".441?(5' Re#,sed R21es ". P!"%ed2!e "n $,n,m2m Wa-e 0,K,n-
*WPC ;2,de1,nes *". 441?(5
RE:ISED R5LES +0 PR+CED5RE +* $I*I$5$ WA;E 0I9I*;
P)rs)ant to Article 1"1Ac= of the Labor Code as a(ended by &ection 6 of *.A. +7"7, the
$ational 3a#es and Prod)cti%ity Co((ission hereby adopts and pro()l#ates the followin# re%ised
r)les of proced)re #o%ernin# the proceedin#s in the Co((ission and the *e#ional Tripartite
3a#es and Prod)cti%ity 0oards in the fi'in# of (ini()( wa#e rates by re#ion, pro%ince, or
ind)stry.
R5LE I
;E*ERAL PR+:ISI+*S
Se%/,"n >. &cope. This *)les shall #o%ern proceedin#s in the $ational 3a#es and Prod)cti%ity
Co((ission and the *e#ional Tripartite 3a#es and Prod)cti%ity 0oards in the fi'in# of (ini()(
wa#e rates.
Se%/,"n 4. Definition of Ter(s. As )sed in this *)lesC
Aa= MAct (eans *ep)blic $o. +7"7J
Ab= M0oardM (eans the *e#ional Tripartite 3a#es and Prod)cti%ity 0oardJ
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Ac= MCo((issionM (eans the $ational 3a#es and Prod)cti%ity Co((issionJ
Ad= MChair(anM (eans Chair(an of the Co((issionJ
Ae= MMe(berM refers to the (e(bers of the Co((ission or 0oard, incl)din# its Chair(anJ
Af= M*e#ional Chair(anM (eans the Chair(an of the 0oardJ
A#= MPartyM (eans any le#iti(ate or#ani;ation of workers or e(ployers with s)bstantial interest in
the re#ion, pro%ince or ind)stry therein as deter(ined by the 0oard, and who stands to be directly
affected by the Co((issionB0oard proceedin#s, order, decision or resol)tionsJ
Ah= M7nd)stryM refers to a trade, b)siness or a sector thereof, or #ro)p of b)sinesses in si(ilar or
allied acti%ities in which indi%id)als are #ainf)lly e(ployedJ
Ai= MLocalityM refers to a #eo#raphical area s(aller than a pro%ince and incl)des ind)strial
estatesBe'port processin# ;onesJ
A4= M*e#ionM refers to a #eo#raphical area co(posed of a #ro)p pro%inces andBor cities as defined
)nder Presidential Decree $o. 1, as a(ended, incl)din# those that (ay be s)bse<)ently
established by lawJ
Ak= M*e#ional Mini()( 3a#e *atesM refer to the lowest basic wa#e rates that an e(ployer can pay
his workers, as fi'ed by the 0oard which shall not be lower than the applicable stat)tory (ini()(
wa#e ratesJ
Al= M&tat)tory Mini()( 3a#esM refer to the lowest basic wa#es as pro%ided by lawJ
A(= M3a#e DistortionM 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 salary rates
between and a(on# e(ployee #ro)ps in an establish(ent as to effecti%ely 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 differentiationJ
An= M3a#e 1rderM refers to the 1rder pro()l#ated by the 0oard p)rs)ant to its wa#e
fi'in# a)thority.
R5LE II
$I*I$5$ WA;E 0I9I*;
Se%/,"n 1. Cond)ct of 3a#e and Prod)cti%ity &t)dies. The 0oard shall, s)b4ect to #)idelines
iss)ed by the Co((ission, cond)ct contin)in# st)dies of wa#e rates, prod)cti%ity and other
conditions in the re#ion, pro%inces or ind)stries therein. The 0oard shall in%esti#ate and st)dy all
pertinent facts, and based on standards and criteria prescribed )nder &ection " of this *)le, shall
deter(ine whether a wa#e order sho)ld be iss)ed.
Se%/,"n 2. &tandardsBCriteria for Mini()( 3a#e 2i'in#. The (ini()( wa#e rates to be
established by the 0oard shall be as nearly ade<)ate as is econo(ically feasible to (aintain the
(ini()( standards of li%in# necessary for the health, efficiency and #eneral well-bein# of the
workers within the fra(ework of national econo(ic and social de%elop(ent #oals. 7n the
deter(ination of re#ional (ini()( wa#es, the 0oard shall, a(on# other rele%ant factors, consider
the followin#C
Aa= $eeds for workers and their fa(ilies
1= De(and for li%in# wa#es
"= 3a#e ad4)st(ent %is-R-%is the cons)(er price inde'
6= Cost of li%in# and chan#es therein
= $eeds of workers and their fa(ilies
,= 7(pro%e(ents in standards of li%in#
Ab= Capacity to Pay
1= 2air ret)rn on capital in%ested and capacity to pay of e(ployers
"= Prod)cti%ity
Ac= Co(parable wa#es and inco(es
1= Pre%ailin# wa#e le%els
Ad= *e<)ire(ents of econo(ic and social de%elop(ent
1= $eed to ind)ce ind)stries to in%est in the co)ntryside
"= 5ffects on e(ploy(ent #eneration and fa(ily inco(e
6= 5<)itable distrib)tion of inco(e and wealth alon# the
i(perati%es of econo(ic and social de%elop(ent

Se%/,"n >. Proced)res in Mini()( 3a#e 2i'in#.
Aa= Mot) Proprio by the 0oard
3hene%er conditions in the re#ion, pro%ince or ind)stry so warrant, the 0oard (ay, (ot) propio or
as directed by the Co((ission, initiate action or in<)iry to deter(ine whether a wa#e order sho)ld
be iss)ed. The 0oard shall cond)ct p)blic hearin#s in the (anner prescribed )nder this *)le and
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*)le 777. The 0oard (ay also cond)ct cons)ltations with concerned sectorsB ind)stries.
Ab= 0y /irt)e of a Petition 2iled
1= 2or( and Content of Petition.
Any party (ay file a %erified petition for wa#e increase with the appropriate 0oard in ten A1>=
typewritten le#ible copies which shall contain the followin#C
Aa= na(eBs, and addressBes of petitionerBs and si#nat)reBs of a)thori;ed officialBsJ
Ab= #ro)nds relied )pon to 4)stify the increase bein# so)#htJ
Ac= a(o)nt of increase bein# so)#htJ
Ad= area andBor ind)stry co%ered.
"= 0oard Action.
7f the petition confor(s with the re<)ire(ents prescribed in the precedin# s)b-section b.1., the
0oard shall cond)ct p)blic hearin#s in the (anner prescribed )nder this *)le and *)le 777, to
deter(ine whether a wa#e order sho)ld be iss)ed. The 0oard (ay also cond)ct cons)ltations with
concerned sectorsBind)stries.
6= P)blication of $otice of PetitionBP)blic .earin#.
A notice of the petition andBor p)blic hearin# shall be p)blished in a newspaper of #eneral
circ)lation in the re#ion andBor posted in p)blic places as deter(ined by the 0oard. The notice shall
incl)de the na(eBs and addressBes of the petitionerBs, the s)b4ect of the petition and the dateBs,
placeBs and ti(e of the hearin#s. The p)blication or postin# shall be (ade at least fifteen A1,= days
before the date of initial hearin# and shall be in accordance with the s)##ested for( attached as
Anne' MAM.
= 1pposition.
Any party (ay file his opposition to the petition on or before the initial hearin#, copy f)rnished the
petitionerBs. The opposition shall be filed with the appropriate 0oard in ten A1>= typewritten le#ible
copies which shall contain the followin#C
Aa= na(eBs and addressBes of the oppositorBs and si#nat)reBs of a)thori;ed officialBsJ
Ab= reasons or #ro)nds for the oppositionJ and
Ac= relief so)#ht.
,= Consolidation of Petitions.
7f there is (ore than one petition filed, the 0oard (ay, (ot) proprio or on (otion of any party,
consolidate these for p)rposes of cond)ctin# 4oint hearin#s or proceedin#s to e'pedite resol)tions
of petitions. Petitions recei%ed after p)blication of an earlier petition need not #o thro)#h the
p)blicationBpostin# re<)ire(ent.
+= Assistance of 1ther Fo%ern(ent and Pri%ate 1r#ani;ations.
The 0oard (ay enlist the assistance and cooperation of any #o%ern(ent a#ency or pri%ate person
or or#ani;ation to f)rnish infor(ation in aid of its wa#e fi'in# f)nction.
R5LE III
C+*D5CT +0 HEARI*;S
Se%/,"n 1. P)blic .earin#s. Prior to the iss)ance of a wa#e order, p)blic hearin#s shall be
cond)cted #i%in# notices to e(ployeesO and e(ployersO #ro)ps, pro%incial, city and ()nicipal
officials and other interested parties.
Se%/,"n 2. 3ho May Cond)ct. .earin#s (ay be cond)cted by the 0oard en banc or by a d)ly
a)thori;ed co((ittee thereof wherein each sector shall be represented. The presence of the
*e#ional Chair(an or any of the /ice Chair(en shall be re<)ired. 7f )nable to attend, 0oard
Me(bers (ay send obser%ers. The 0oard shall deter(ine the dateBs, placeBs, and ti(e of the
hearin#s which shall open to the p)blic e'cept as otherwise re<)ested by a party and so
deter(ined by the 0oard.
Se%/,"n >. 1rder of .earin#. As ()ch as practicable, the petitionerBs shall present hisBtheir
e%idence first, followed by the oppositorBs. The 0oard (ay then call on other persons to present
their %iews and s)b(it position papers and other s)pportin# doc)(ents.
Se%/,"n 4. Manner and D)ration of .earin#s. P)blic hearin#s shall be cond)cted in a (anner
that shall ens)re that all sectors and parties who stand to be directly affected by the decisions and
orders of the 0oard are #i%en the widest opport)nity to be heard. P)rs)ant to this, the hearin#s
shall be cond)cted in each pro%ince in the re#ion as far as practicable.
.earin#s shall be cond)cted within forty fi%e A,= days fro( the date of initial hearin# e'cept
when conditions in the re#ion warrant otherwise.
Se%/,"n 5. *ecords of Proceedin#s. The 0oard &ecretariat shall keep recordsB(in)tes of all
0oard proceedin#s, d)ly noted by the Me(bers of the 0oard.
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Se%/,"n 6. $on-applicability of Technical *)les. The 0oard shall not be bo)nd strictly by
technical r)les e%idence and proced)res.
Se%/,"n 7. Prohibition A#ainst 7n4)nction. $o preli(inary or per(anent in4)nction or te(porary
restrainin# order (ay be iss)ed by any co)rt, trib)nal or any other entity a#ainst any proceedin#
before the Co((ission or 0oard.
R5LE I:
WA;E +RDER
Se%/,"n 1. 7ss)ance of 3a#e 1rder. 3ithin thirty A6>= days after concl)sion of the last hearin#,
the 0oard shall decide on the (erits of the petition, and where appropriate, iss)e a wa#e order
establishin# the re#ional (ini()( wa#e rates to be paid by e(ployers which shall in no case be
lower than the applicable stat)tory (ini()( wa#e rates. The 3a#e 1rder (ay incl)de wa#es by
ind)stry, pro%ince or locality as (ay be dee(ed necessary by the 0oard pro%ided, howe%er, that
s)ch wa#e rates shall not be lower than the re#ional (ini()( wa#e rates )nless e'pressly
specified in the 3a#e 1rder.
The 0oard shall f)rnish the Co((ission a copy of the decision on the petition or the 3a#e
1rder.
Se%/,"n 2. Contents of 3a#e 1rder. A 3a#e 1rder shall specify the re#ion, pro%ince, or
ind)stry to which the (ini()( wa#e rates prescribed )nder the 1rder shall apply and pro%ide
e'e(ptions, if any, s)b4ect to #)idelines iss)ed by the Co((ission.
Se%/,"n >. 2re<)ency of 3a#e 1rder. Any 3a#e 1rder iss)ed by the 0oard (ay not be
dist)rbed for a period of twel%e A1"= (onths fro( its effecti%ity, and no petition for wa#e increase
shall be entertained within the said period. 7n the e%ent, howe%er, that s)per%enin# conditions, s)ch
as e'traordinary increase in prices of petrole)( prod)cts and basic #oodsBser%ices, de(and a
re%iew of the (ini()( wa#e rates as deter(ined by the 0oard and confir(ed by the Co((ission,
the 0oard shall proceed to e'ercise its wa#e fi'in# f)nction e%en before the e'piration of the said
period.
Se%/,"n 4. 5ffecti%ity. A 3a#e 1rder shall take effect fifteen A1,= days after its p)blication in at
least one A1= newspaper of #eneral circ)lation in the re#ion.
Se%/,"n 5. 7(ple(entin# *)lesB *e#)lations. The 0oard shall prepare, for appro%al of the
&ecretary of Labor and 5(ploy(ent )pon reco((endation of the Co((ission, the necessary
7(ple(entin# *)les and *e#)lations not later than ten A1>= days fro( the iss)ance of a 3a#e
1rder.
The &ecretary of Labor and 5(ploy(ent shall act on the 7(ple(entin# *)les within a period of
twenty A">= days fro( receipt of the said 7(ple(entin# *)les by the Co((ission. 1nce appro%ed,
the 0oard shall ca)se the p)blication of the 7(ple(entin# *)les and *e#)lations in at least one A1=
newspaper of #eneral circ)lation in the re#ion.
Se%/,"n 6. *e%iew of 3a#e 1rder. The Co((ission (ay re%iew the 3a#e 1rder iss)ed by the
0oard (ot) propio or )pon appeal.
Se%/,"n 7. Correction of 5rror. The 0oard (ay, (ot) propio or )pon (anifestation of any party,
proceed to correct any patent error, errors in co(p)tation or typo#raphical errors in any 3a#e
1rder.
Se%/,"n ). A(end(ents to 3a#e 1rder. 7n case of s)bstanti%e chan#es in the 3a#e 1rder, the
0oard ()st co(ply with the re<)ired proced)res pro%ided )nder &ection 1 of *)le 77 and &ection
of *)le 7/.
R5LE :
APPEAL
Se%/,"n 1. Appeal to the Co((ission. Any party a##rie%ed by a 3a#e 1rder iss)ed by the
0oard (ay appeal s)ch 1rder to the Co((ission by filin# a %erified appeal with the 0oard in three
A6= typewritten le#ible copies, not later than ten A1>= days fro( the date of p)blication of the 1rder.
The appeal shall be acco(panied by a (e(orand)( of appeal which shall state the #ro)nds relied
)pon and the ar#)(ents in s)pport of the appeal.
The 0oard shall ser%e notice of the appeal to concerned parties.
2ail)re to file an appeal within the re#le(entary period fi'ed )nder this section or to s)b(it the
re<)ired doc)(ents shall be a #ro)nd for dis(issal of the appeal.
Se%/,"n 2. Fro)nds for Appeal. An appeal (ay be filed on the followin# #ro)ndsC
Aa= non-confor(ity with prescribed #)idelines andBor proced)resJ
Ab= <)estions of lawJ
Ac= #ra%e ab)se of discretion.
Se%/,"n >. Trans(ittal of *ecords. 7((ediately )pon receipt of the appeal, the 0oard
&ecretariat shall trans(it to the Co((ission &ecretariat the appeal and a copy of the s)b4ect 3a#e
1rder to#ether with the co(plete records of the case and all rele%ant doc)(ents.
Se%/,"n 4. Period to Act on Appeal. The Co((ission shall decide on the appeal within si'ty
A+>= days fro( the filin# of said appeal.
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Se%/,"n 5. 5ffect of Appeal. The filin# of the appeal does not operate to stay the 1rder )nless
the party appealin# s)ch 1rder shall file with the Co((ission an )ndertakin# with a s)rety or
s)reties satisfactory to the Co((ission for pay(ent to e(ployees affected by the 1rder of the
correspondin# increase, in the e%ent s)ch 1rder is affir(ed.
R5LE :I
L5+R5$
Se%/,"n 1. H)or)(. 2o)r A= (e(bers of the Co((ission or 0oard shall constit)te a <)or)( to
transact b)siness, pro%ided that the Chair(an or the /ice Chair(an is present and each sector is
represented. The Co((ission or 0oard (ay dispense with the pro%iso re<)irin# sectoral
representation if the two A"= representati%es of any sector fail to attend, witho)t 4)stifiable reason,
two A"= consec)ti%e sched)led (eetin#s with proper notice.
Se%/,"n 2. /otes *e<)ired. Any decision of the Co((ission or 0oard shall re<)ire the
affir(ati%e of not less than fo)r A= of its (e(bers.
R5LE :II
WA;E DIST+RTI+*
Se%/,"n 1. Correction of 3a#e Distortion. 3here the application of any prescribed wa#e
increase by %irt)e of a 3a#e 1rder iss)ed by the 0oard res)lts in distortions of the wa#e str)ct)re
within an establish(ent, the e(ployer and the )nion shall ne#otiate to correct the distortions. Any
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)ntary arbitration. :nless
otherwise a#reed by the parties in writin#, s)ch disp)te shall be decided by the %ol)ntary arbitrator
or panel of %ol)ntary arbitrators within ten A1>= days fro( the ti(e said disp)te was referred to
%ol)ntary arbitration.
7n cases where there are no collecti%e a#ree(ents or reco#ni;ed labor )nions, the e(ployers
and workers shall endea%or to correct s)ch distortions. Any disp)te arisin# therefro( shall be
settled thro)#h the $ational Conciliation and Mediation 0oard and, if it re(ains )nresol%ed after ten
A1>= days of conciliation, shall be referred to the appropriate branch of the $ational Labor *elations
Co((ission A$L*C=. 7t shall be (andatory for the $L*C to cond)ct contin)o)s hearin#s and
decide the disp)te within twenty A">= days fro( the ti(e said disp)te is s)b(itted for co(p)lsory
arbitration.
The pendency of a disp)te arisin# fro( a wa#e distortion shall not in any way delay the
applicability of any increase in prescribed wa#e rates p)rs)ant to the pro%isions of the 3a#e 1rder.
R5LE :III
E9E$PTI+*S
Se%/,"n 1. Application for 5'e(ption. 3hene%er a wa#e order pro%ides for e'e(ption, applications
for e'e(ption shall be filed with the appropriate 0oard which shall process these applications,
s)b4ect to #)idelines iss)ed by the Co((ission.
R5LE I9
E*0+RCE$E*T
Se%/,"n 1. 5nforce(ent of 3a#e 1rders. Co(pliance with the 3a#e 1rder iss)ed by the 0oard
shall be enforced by the appropriate *e#ional 1ffice of the Depart(ent of Labor and 5(ploy(ent
in accordance with enforce(ent proced)res )nder Articles 1"E and 1"9 of the Labor Code as
a(ended.
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DAILA $I*I$5$ WA;E RATES
RE;I+* :II' Cen/!a1 :,sayas
Pe! Wa-e +!de! *". R+:II?1>Ca
E..e%/,#e *"#embe! 11' 2447
I*D5STRACSECT+R
C1ass A C1ass B
Bas,% Wa-e
2nde! R+
:II?12
In%!ease
2nde! W.+.
*". R+ :II?1>
*ew $,n,m2m
Wa-e Ra/e
Bas,% Wa-e
2nde! R+
:II?12
In%!ease
2nde! W.+.
*". R+ :II?1>
*ew $,n,m2m
Wa-e Ra/e
*"n A-!,%21/2!e
P"1.>>
P9.>> P",>.>> P"",.>> ,.>> "6>.>>
A-!,%21/2!e
$on-&)#ar
""6.>> 9.>> "6".>> "1>.>> ,.>> "1,.>>
&)#ar
19,.>> ,.>> ">>.>> 19,.>> ,.>> ">>.>>
&)#ar Mills
"1,.>> ,.>> "">.>> "1,.>> ,.>> "">.>>
I*D5STRACSECT+R
C1ass C C1ass D
Bas,% Wa-e
2nde! R+
:II?12
In%!ease
2nde! W.+.
*". R+ :II?1>
*ew $,n,m2m
Wa-e Ra/e
Bas,% Wa-e
2nde! R+
:II?12
In%!ease
2nde! W.+.
*". R+ :II?1>
*ew $,n,m2m
Wa-e Ra/e
*"n A-!,%21/2!e P"1,.>> P,.>> P"">.>> P">>.>> P,.>> P">,.>>
A-!,%21/2!e
$on-&)#ar
19,.>> ,.>> ">>.>> 1E>.>> ,.>> 1E,.>>
&)#ar
19,.>> ,.>> ">>.>> 19,.>> ,.>> ">>.>>
&)#ar Mills
"1,.>> ,.>> ">>.>> "1,.>> ,.>> "">.>>

*lass A 4
C##"' of C"1,, M(&+(,", L(%,*(%,, D(&(o (&+ T(*#'(0B M,&#$#%(*##"' of M#&.*(&#**(, N(.(, S(& F"r&(&+o,
C(r$(r, L#*o(&, Co&'o*($#o&, Com%o'"*( (&+ Cor+o8(.
*lass 8 4
C#0 of To*"+o (&+ !" r"' of !" m,&#$#%(*##"' #& !" Pro8#&$" of C"1, "9$"% !"m,&#$#%(*##"' #& !"
I'*(&+' of B(&(0(& (&+ C(mo"'.
*lass * 4 A** !" $##"' #& !" Pro8#&$"' of Bo!o* (&+ N".ro' Or#"&(*.
*lass + 4 M,&#$#%(*##"' #& !" Pro8#&$" of S#5,#Aor (&+ !" m,&#$#%(*##"' #& !" I'*(&+' of B(&(0(& (&+ C(mo"'.

Gr(&' )(." #&$r"('" o (** m#&#m,m )(." )or/"r' #& !" r".#o& (' fo**o)' 6A** C*(''"'7-

P<.CC (&+ P@.CC #&$r"('" #& !" DMWD #& No&4A.r#$,*,r" S"$or
<.CC 4 @.CC #&$r"('" #& !" DMWD #& A.r#$,*,r" S"$or
<.CC #&$r"('" #& !" DMWD #& !" A.r#$,*,r" 6S,.(r (&+ S,.(r M#**'7
D D(#*0 m#&#m,m )(."
C"n%e/s: Bas,% Wa-e' S/a/2/"!y $,n,m2m Wa-e' Wa-e +!de!
*A +7"7,&ec. . Definition of Ter(s. As )sed in this *)lesC
Al= MS/a/2/"!y $,n,m2m Wa-esM refer to the lowest basic wa#es as pro%ided by lawJ
An= MWa-e +!de!M refers to the 1rder pro()l#ated by the 0oard p)rs)ant to its wa#e fi'in#
a)thority.
P2!"se ". $,n,m2m Wa-e
Ad#an/a-es ". $,n,m2m Wa-e
1. Protects the fair e(ployers a#ainst co(petition fro( the P)nfair8 ones
". The law acts as an incenti%e to the low-wa#e e(ployers to i(pro%e (ethods in their plants and
possibly to introd)ce technolo#ical chan#es to confor( to the de(and of (ini()( wa#e rate.
6. Pro(otes workers li%in# standards
. A national (ini()(-wa#e is an inde' to econo(ic stabilityJ the (ini()( wa#e lend help to
pro%ide the p)rchasin# power necessary to take all the #oods of the (arket
,. Pro(otes ind)strial peace and order in the sense that dissatisfactions are red)ced.
+. May be s)b4ect to increase at collecti%e bar#ainin# table
D,sad#an/a-e
1. May lead to )ne(ploy(ent
Prof"''or E#&. +"$*(r"+ # #' $*"(r !( !" "ff"$Fo !ro) o, "m%*o0m"& (** %"r'o&' )!o'"
5,(*#f#$(#o&' (r" &o ',$! !( "&(1*" !"m o "(r& mor" !(& !" *".(* m#&#m,m. If )(."' (r"
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for$"+ ,% o !" %o#& !#.!"r !(& )!( !" )or/"r #' "$o&om#$(**0 )or!, !" %o)"r )or/"r m(0 1"
+#'m#''"+ (&+ !" *() #' (&#4'o$#(*.
". 7t wo)ld pa)peri;e the worker, destroy their self-respect and
(ake the( (iserable
6. 0rin#s depression and th)s i(po%erish the nation
. Constit)tes infrin#e(ent to the worker8s ri#ht to labor as he
co)ld not dispose of the sa(e )nder ter(s and conditions he (ay see fit
,. 3ill tend to beco(e the (a'i()(.
Em1"ye!Hs R,-&/ /" a L,#,n- Wa-e #s. R,-&/ ".
Em1"ye! /" Reas"nab1e Re/2!n ,n In#es/men/
P"we! /" ,ss2e wa-e "!de!s
MArt. 1">. C!ea/,"n ". /&e *a/,"na1 Wa-es and P!"d2%/,#,/y C"mm,ss,"n. - There is hereby
created a $ational 3a#es and Prod)cti%ity Co((ission, hereinafter referred to as the Co((ission,
which shall be attached to the Depart(ent of Labor and 5(ploy(ent AD1L5= for policy and
pro#ra( coordination.M
MArt. 1"1. P"we!s and 02n%/,"ns ". /&e C"mm,ss,"n. - The Co((ission shall ha%e the
followin# powers and f)nctionsC
Aa= To act as the national cons)ltati%e and ad%isory body to the President of the Philippines and
Con#ress on (atters relatin# to wa#es, inco(es and prod)cti%ityJ
Ab= To for()late policies and #)idelines on wa#es, inco(es and prod)cti%ity i(pro%e(ent at the
enterprise, ind)stry and national le%elsJ
Ac= To prescribe r)les and #)idelines for the deter(ination of appropriate (ini()( wa#e and
prod)cti%ity (eas)res at the re#ional, pro%incial or ind)stry le%elsJ
Ad= To re%iew re#ional wa#e le%els set by the *e#ional Tripartite 3a#es and Prod)cti%ity 0oards to
deter(ine if these are in accordance with prescribed #)idelines and national de%elop(ent plansJ
Ae= To )ndertake st)dies, researches and s)r%eys necessary for the attain(ent of its f)nctions and
ob4ecti%es, and to collect and co(pile data and periodically disse(inate infor(ation on wa#es and
prod)cti%ity and other related infor(ation, incl)din#, b)t not li(ited to, e(ploy(ent, cost-of-li%in#,
labor costs, in%est(ents and ret)rnsJ
Af= To re%iew plans and pro#ra(s of the *e#ional Tripartite 3a#es and Prod)cti%ity 0oards to
deter(ine whether these are consistent with national de%elop(ent plansJ
A#= To e'ercise technical and ad(inistrati%e s)per%ision o%er the *e#ional Tripartite 3a#es and
Prod)cti%ity 0oardsJ
Ah= To call, fro( ti(e to ti(e, a national tripartite conference of representati%es of #o%ern(ent,
workers and e(ployers for the consideration of (eas)res to pro(ote wa#e rationali;ation and
prod)cti%ityJ and
Ai= To e'ercise s)ch powers and f)nctions as (ay be necessary to i(ple(ent this Act.
MThe Co((ission shall be co(posed of the &ecretary of Labor and 5(ploy(ent as e'-officio
chair(an, the Director-Feneral of the $ational 5cono(ic and De%elop(ent A)thority A$5DA= as
e'-officio %ice-chair(an, and two A"= (e(bers each fro( workers and e(ployers sectors who shall
be appointed by the President of the Philippines )pon reco((endation of the &ecretary of Labor
and 5(ploy(ent to be (ade on the basis of the list of no(inees s)b(itted by the workers and
e(ployers sectors, respecti%ely, and who shall ser%e for a ter( of fi%e A,= years. The 5'ec)ti%e
Director of the Co((ission &ecretariat shall also be a (e(ber of the Co((ission.M
MThe Co((ission shall be assisted by a &ecretariat to be headed by an 5'ec)ti%e Director and
two A"= Dep)ty Directors, who shall be appointed by the President of the Philippines, )pon
reco((endation of the &ecretary of Labor and 5(ploy(ent.M
MThe 5'ec)ti%e Director shall ha%e the sa(e rank, salary, benefits and other e(ol)(ents as that
of a Depart(ent Assistant &ecretary, while the Dep)ty Directors shall ha%e the sa(e rank, salary,
benefits and other e(ol)(ents as that of a 0)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 by law for labor and (ana#e(ent representati%es in the 5(ployeesO
Co(pensation Co((ission.M
RTWPB
Art. 1"". C!ea/,"n ". Re-,"na1 T!,a!/,/e Wa-es and P!"d2%/,#,/y B"a!ds. - There is hereby
created *e#ional Tripartite 3a#es and Prod)cti%ity 0oards, hereinafter referred to as *e#ional
0oards, in all re#ions, incl)din# a)tono(o)s re#ions as (ay be established by law. The
Co((ission shall deter(ine the officesBhead<)arters of the respecti%e *e#ional 0oards.
MThe *e#ional 0oards shall ha%e the followin# powers and f)nctions in their respecti%e territorial
4)risdictionC
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Aa= To de%elop plans, pro#ra(s and pro4ects relati%e to wa#es, inco(es and prod)cti%ity
i(pro%e(ent for their respecti%e re#ionsJ
Ab= To deter(ine and fi' (ini()( wa#e rates applicable in their re#ion, pro%inces or ind)stries
therein and to iss)e the correspondin# wa#e orders, s)b4ect to #)idelines iss)ed by the
Co((issionJ
Ac= To )ndertake st)dies, researches, and s)r%eys necessary for the attain(ent of their f)nctions,
ob4ecti%es and pro#ra(s, and to collect and co(pile data on wa#es, inco(es, prod)cti%ity and
other related infor(ation and periodically disse(inate the sa(eJ
Ad= To coordinate with the other *e#ional 0oards as (ay be necessary to attain the policy and
intention of this CodeJ
Ae= To recei%e, process and act on applications for e'e(ption fro( prescribed wa#e rates as (ay
be pro%ided by law or any 3a#e 1rderJ and
Af= To e'ercise s)ch other powers and f)nctions as (ay be necessary to carry o)t their (andate
)nder this Code.
M7(ple(entation of the plans, pro#ra(s and pro4ects of the *e#ional 0oards referred to in the
second para#raph, letter Aa= of this Article, shall be thro)#h the respecti%e re#ional offices of the
Depart(ent of Labor and 5(ploy(ent within their territorial 4)risdictionJ Pro%ided, howe%er, That
the *e#ional 0oards shall ha%e technical s)per%ision o%er the re#ional office of the Depart(ent of
Labor and 5(ploy(ent with respect to the i(ple(entation of said plans, pro#ra(s and pro4ects.
M5ach *e#ional 0oard shall be co(posed of the *e#ional Director of the Depart(ent of Labor
and 5(ploy(ent as chair(an, the *e#ional Directors of the $ational 5cono(ic and De%elop(ent
A)thority and Depart(ent of Trade and 7nd)stry as %ice-chair(en and two A"= (e(bers each fro(
workers and e(ployers sectors who shall be appointed by the President of the Philippines, )pon
reco((endation of the &ecretary of Labor and 5(ploy(ent, to be (ade on the basis of the list of
no(inees s)b(itted by the workers and e(ployers sectors, respecti%ely, and who shall ser%e for a
ter( of fi%e A,= years.
M5ach *e#ional 0oard to be headed by its chair(an shall be assisted by a &ecretariat.M
Aea1 P!"%ed2!e
&ec. 1. Aea1 /" /&e C"mm,ss,"n. Any party a##rie%ed by a 3a#e 1rder iss)ed by the 0oard
(ay appeal s)ch 1rder to the Co((ission by filin# a %erified appeal with the 0oard in three A6=
typewritten le#ible copies, not later than ten A1>= days fro( the date of p)blication of the 1rder. The
appeal shall be acco(panied by a (e(orand)( of appeal which shall state the #ro)nds relied
)pon and the ar#)(ents in s)pport thereof.
The 0oard shall ser%e notice of the appeal to concerned parties.
&ec. ". ;!"2nds ."! Aea1. An appeal (ay be filed on the followin# #ro)ndsC
1. non-confor(ity with prescribed #)idelines andBor proced)resJ
". <)estions of lawJ
6. #ra%e ab)se of discretion.
&ec. 6. T!ansm,//a1 ". Re%"!ds. 7((ediately )pon receipt of the appeal, the 0oard &ecretariat
shall trans(it to the Co((ission &ecretariat the appeal and a copy of the s)b4ect 3a#e 1rder
to#ether with all rele%ant doc)(ents.
&ec. . Pe!,"d /" A%/ "n Aea1. The Co((ission shall decide on the appeal within si'ty A+>=
days fro( the filin# thereof.
&ec. ,. E..e%/ ". Aea1. The filin# of the appeal does not operate to stay the 1rder )nless the
party appealin# s)ch 1rder shall file with the Co((ission an )ndertakin# with a s)rety or s)reties
satisfactory to the Co((ission for pay(ent to e(ployees affected by the 1rder of the
correspondin# increase, in the e%ent s)ch 1rder is affir(ed.
Wa-e +!de!s a1,%ab1e ,n Ceb2 C,/y' $anda2e
C,/y' La2?1a2 C,/y
Re#,sed ;2,de1,nes "n EKem/,"n .!"m Wa-e
+!de!s 6*WC ;2,de1,nes *".41' Se!,es ". 1((67
*WPC ;5IDELI*ES *+. 41
Se!,es ". 1((6
R5LES +* E9E$PTI+* 0R+$ C+$PLIA*CE WITH THE PRESCRIBED
WA;E I*CREASESCC+ST +0 LI:I*; ALL+WA*CES ;RA*TED BA
THE RE;I+*AL TRIPARTITE WA;ES A*D PR+D5CTI:ITA B+ARDS
P)rs)ant to &ection 6, Article 1"1 b of *A +7"7 and &ection 1, *)le /777 of the *e%ised *)les of
Proced)re on Mini()( 3a#e 2i'in#, the followin# r)les on e'e(ption are hereby iss)ed for strict
co(pliance by all concernedC
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SECTI+* 1. DE0I*ITI+* +0 TER$S
A. Co((ission - refers to the $ational 3a#es and Prod)cti%ity Co((ission.
0. 0oard - refers to the *e#ional Tripartite 3a#es and Prod)cti%ity 0oard.
C. 1rder - refers to the 3a#e 1rder pro()l#ated by the 0oard p)rs)ant to its wa#e- fi'in# a)thority.
D. 5stablish(ent - refers to an econo(ic )nit which en#a#es in one or predo(inantly one kind of
econo(ic acti%ity at a sin#le fi'ed location.
2or p)rposes of deter(inin# eli#ibility for e'e(ption, establish(ents )nder the sa(e ownerBs
b)t separately re#istered with the &ec)rities and 5'chan#e Co((ission A&5C=, Depart(ent of
Trade and 7nd)stry ADT7= or Cooperati%e De%elop(ent A)thority ACDA= as the case (ay be,
irrespecti%e of their location, shall be treated as indi%id)al and distinct establish(ents.
5. *etail 5stablish(ent - refers to one principally en#a#ed in the sale of #oods to end )sers for
personal or ho)sehold )se.
A retail establish(ent that re#)larly en#a#es in wholesale acti%ities loses its retail character.
2. &er%ice 5stablish(ent - refers to one principally en#a#ed in the sale of ser%ices to indi%id)als for
their own or ho)sehold )se and is #enerally reco#ni;ed as s)ch.
F. Distressed 5stablish(ent - refers to an establish(ent which (eets the criteria en)(erated in
&ection 6 A of these F)idelines.
.. Capital - refers to paid-)p capital at the end of the last f)ll acco)ntin# period, in the case of
corporations or total in%ested capital at the be#innin# of the period )nder re%iew, in the case of
partnerships and sin#le proprietorships.
7. 2)ll Acco)ntin# Period - refers to a period of twel%e A1"= (onths or one year of b)siness
operations.
9. Deficit - refers to the ne#ati%e balance of the retained earnin#s acco)nt of a corporation. *etained
earnin#s represent the c)()lati%e balance of periodic earnin#s, di%idend distrib)tions, prior period
ad4)st(ents and other capital ad4)st(ents.
I. &tock Corporation - refers to one or#ani;ed for profit and iss)es shares of stock to its (e(bers.
L. $on-stock $on-profit 1r#ani;ation - refers to one or#ani;ed principally for p)blic p)rposes s)ch as
charitable, ed)cational, c)lt)ral or si(ilar p)rposes and does not iss)e shares of stock to its
(e(bers.
M. Partnership - refers to an association of two or (ore persons who bind the(sel%es to contrib)te
(oney, property or ind)stry to a co((on f)nd with the intention of di%idin# the profits a(on#
the(sel%es or for the e'ercise of a profession.
$. &in#le Proprietorship - refers to a b)siness )nit owned and controlled by only one person.
1. Cooperati%e - refers to a d)ly re#istered association of persons who %ol)ntarily 4oin to#ether to for(
a b)siness establish(ent which they the(sel%es own, control and patroni;e and which (ay fall
)nder any of the followin# typesC credit, cons)(ers, prod)cers, (arketin#, ser%ice or ()lti-p)rpose.
P. $ew 0)siness 5nterprises - refer to establish(ents, incl)din# non-profit instit)tions, established
within two A"= years fro( effecti%ity of the 3a#e 1rder based on the latest re#istration with the
appropriate #o%ern(ent a#ency s)ch as &5C, DT7, CDA andMayorOs 1ffice.
H. H)asi-banks - refer to instit)tions s)ch as in%est(ent ho)ses and financin# co(panies perfor(in#
<)asi-bankin# f)nctions as defined by the 0an#ko &entral n# Pilipinas.
SECTI+* 2. CATE;+RIES +0 E9E$PTIBLE ESTABLISH$E*TS
5'e(ption of establish(ents fro( co(pliance with the wa#e increases and cost of li%in#
allowances prescribed by the 0oards (ay be #ranted in order to A1= assist establish(ents
e'periencin# te(porary diffic)lties d)e to losses (aintain the financial %iability of their b)sinesses
and contin)ed e(ploy(ent of their workersJ A"= enco)ra#e the establish(ent of new b)sinesses
and the creation of (ore 4obs, partic)larly in areas o)tside the $ational Capital *e#ion and 5'port
Processin# Gones, in line with the policy on ind)stry dispersalJ and A6= ease the b)rden of (icro
establish(ents, partic)larly in the retail and ser%ice sector, that ha%e a li(ited capacity to pay.
P)rs)ant to the abo%e, the followin# cate#ories of establish(ents (ay be e'e(pted )pon
application with and as deter(ined by the 0oard, in accordance with applicable criteria on
e'e(ption as pro%ided in these F)idelinesJ pro%ided f)rther that s)ch cate#ories are e'pressly
specified in the 1rder.
1. Distressed establish(ents
". $ew b)siness enterprises A$05s=
6. *etailB&er%ice establish(ents e(ployin# not (ore than ten A1>= workers
. 5stablish(ents ad%ersely affected by nat)ral cala(ities
5'e(ptible cate#ories o)tside of the abo%e(entioned list (ay be allowed only if they are in
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accord with the rationale for e'e(ption reflected in the first para#raph of this section. The
concerned *e#ional 0oard shall s)b(it stron# and 4)stifiable reasonBs for the incl)sion of s)ch
cate#ories which shall be s)b4ect to re%iewBappro%al by the Co((ission.
SECTI+* >. CRITERIA 0+R E9E$PTI+*
The followin# criteria shall be )sed to deter(ine whether the applicant-establish(ent is <)alified
for e'e(ptionC
Distressed 5stablish(ents
2or &tock CorporationsBCooperati%es

3hen deficit as of the last f)ll acco)ntin# period or interi( period, if any,
i((ediately precedin# the effecti%ity of the 1rder a(o)nts to ">K or (ore of
the paid-)p capital for the sa(e periodJ or

3hen an establish(ent re#isters capital deficiency i.e., ne#ati%e
stockholdersO e<)ity as of the last f)ll acco)ntin# period or interi( period, if
any, i((ediately precedin# the effecti%ity of the 1rder.
2or &in#le ProprietorshipsBPartnerships

&in#le proprietorshipsBpartnerships operatin# for at least two A"= years (ay
be #ranted e'e(ptionC

3hen the net acc)()lated losses for the last two A"= f)ll acco)ntin#
periods and interi( period, if any, precedin# the effecti%ity of the 1rder
a(o)nts to ">K or (ore of the total in%ested capital at the be#innin# of
the period )nder re%iewJ or

3hen an establish(ent re#isters capital deficiency i.e., ne#ati%e net
worth as of the last f)ll acco)ntin# period or interi( period, if any,
i((ediately precedin# the effecti%ity of the 1rder.

&in#le proprietorshipsBpartnerships operatin# for less than two A"= years (ay
be #ranted e'e(ption when the net acc)()lated losses for the period
the total in%ested capital at the be#innin# of the period )nder re%iew.
2or $on-stock $on-profit 1r#ani;ations
a.
$on-stock $on-profit or#ani;ations operatin# for at least two A"= years (ay
be #ranted e'e(ptionC

3hen the net acc)()lated losses for the last two A"= f)ll acco)ntin#
periods and interi( period, if any, i((ediately precedin# the effecti%ity
of the 1rder a(o)nts to ">K or (ore of the f)nd balanceB(e(bersO
contrib)tion at the be#innin# of the period )nder re%iewJ or

3hen an establish(ent re#isters capital deficiency i.e.,ne#ati%e f)nd
balanceB(e(bersO contrib)tion as of the last f)ll acco)ntin# period or
interi( period, if any, i((ediately precedin# the effecti%ity of the
1rder.

$on-stock non-profit or#ani;ations operatin# for less than two A"= years (ay
be #ranted e'e(ption when the net acc)()lated losses for the period
the f)nd balanceB(e(bersO contrib)tion at the be#innin# of the period )nder
re%iew.
2or 0anks and H)asi-banks
:nder recei%ershipBli<)idation

5'e(ption (ay be #ranted to a bank or <)asi-bank )nder recei%ership or
li<)idation when there is a certification fro( the 0an#ko &entral n# Pilipinas
that it is )nder recei%ership or li<)idation as pro%ided in &ection 6> of *A
7+,6, otherwise known as the $ew Central 0ank Act.
:nder controllershipBconser%atorship

A bank or <)asi-bank )nder controllershipBconser%atorship (ay apply for
e'e(ption as a distressed establish(ent )nder &ection 6 A of
this F)idelines.
$ew 0)siness 5nterprises

5'e(ption (ay be #ranted to $ew 0)siness 5nterprises established o)tside the
$ational Capital *e#ion A$C*= and 5'port Processin# Gones within two A"= years
fro( effecti%ity of the 1rder, classified )nder any of the followin#C
A#ric)lt)ral establish(ents whether plantation or non-plantation.

5stablish(ents with total assets after financin# of fi%e (illion pesos
AP,,>>>,>>>.>>= and below.
*etailB&er%ice 5stablish(ents *e#)larly 5(ployin# $ot More Than Ten A1>=
3orkers
5'e(ption (ay be #ranted to a retailBser%ice establish(ent whenC

7t is en#a#ed in tye retail sale of #oods andBor ser%ices to end )sers for personal
or ho)sehold )seJ and

". 7t is re#)larly e(ployin# not (ore than ten A1>= workers re#ardless of stat)s,
e'cept the ownerBs, for at least si' A+= (onths in any calendar year.
5stablish(ents Ad%ersely Affected by $at)ral Cala(ities

The establish(ent ()st be located in an area declared by a co(petent a)thority
as )nder a state of cala(ity.

The nat)ral cala(ities, s)ch as earth<)akes, lahar flow, typhoons, %olcanic
er)ptions, fire, floods and si(ilar occ)rrences, ()st ha%e occ)rred within +
(onths prior to the effecti%ity of the 3a#e 1rder.
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Losses s)ffered by the establish(ent as a res)lt of the cala(ity that
e'ceed the ins)rance co%era#e sho)ld a(o)nt to ">K or (ore of the
stockholdersO e<)ity as of the last f)ll acco)ntin# period in the case of
corporations and cooperati%es, total in%ested capital in the case of partnerships
and sin#le proprietorships and f)nd balanceB(e(bersO contrib)tion in the case
of non-stock non-profit or#ani;ations.

1nly losses or da(a#e to properties directly res)ltin# fro( the cala(ity and not
inc)rred as a res)lt of nor(al b)siness operations shall be considered.

3here necessary, the 0oard or its d)ly-a)thori;ed representati%e shall cond)ct
an oc)lar inspection of the establish(ent or en#a#e the ser%ices of e'perts to
%alidate the e'tent of da(a#es s)ffered.
SECTI+* 4. D+C5$E*TS REL5IRED
The followin# s)pportin# doc)(ents shall be s)b(itted to#ether with the applicationC
2or All Cate#ories of 5'e(ption
Proof of notice of filin# of the application to the President of the )nionBcontractin# party if one is
or#ani;ed in the establish(ent, or if there is no )nion, a copy of a circ)lar #i%in# #eneral notice of
the filin# of the application to all the workers in the establish(ent. The proof of notice, which (ay
be translated in the %ernac)lar, shall state that the workersO representati%e was f)rnished a copy of
the application with all the s)pportin# doc)(ents. The notice shall be posted in a conspic)o)s
place in the establish(ent.
A. 0"! D,s/!essed Es/ab1,s&men/s
1. 2or corporations, cooperati%es, sin#le proprietorships, partnerships, non-stock non-profit
or#ani;ations.
a. A)dited financial state(ents Ato#ether with the A)ditorOs opinion and the notes thereto= for the last
two A"= f)ll acco)ntin# periods precedin# the effecti%ity of the 1rder filed with and sta(ped
Mrecei%edM by the appropriate #o%ern(ent a#ency.
b. A)dited interi( <)arterly financial state(ents Ato#ether with the A)ditorOs opinion and the notes
thereto= for the period i((ediately precedin# the effecti%ity of the 1rder.
&)b(ission of a)dited interi( financial state(ents shall be in accordance with the followin#
sched)leC

E00ECTI:ITA
DATE +0
WA;E +RDER
I*TERI$ STATE$E*TS
REL5IRED

0,!s/ B2a!/e! ".
yea!
$o interi( state(ents
re<)iredJ only the a)dited
state(ent for the last two
f)ll acco)ntin# periods

Se%"nd B2a!/e! ".
yea!
Month 1
Month "
Month 6
$oneJ sa(e as first <)arter
$oneJ sa(e as first <)arter
2irst <)arter a)dited
state(ent

T&,!d B2a!/e! ".
yea!
Month 1
Month "
Month 6
state(ent
state(ent
2irst ? second <)arters
a)dited state(ents
0"2!/& B2a!/e! ".
yea!
Month 1
Month "
Month 6

&econd <)arter a)dited
state(ent
&econd <)arter a)dited
state(ent
2irst, second ? third
<)arters a)dited
state(ents
2or 0anks and H)asi-banks

Certification fro( 0an#ko &entral n# Pilipinas that it is )nder
recei%ershipBli<)idation.
2or $ew 0)siness 5nterprises
Affida%it fro( e(ployer re#ardin# the followin#C
Principal econo(ic acti%ity
Date of re#istration with appropriate #o%ern(ent a#ency
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A(o)nt of total assets
Certificate of re#istration fro( the appropriate #o%ern(ent a#ency.
2or *etailB&er%ice 5stablish(ents 5(ployin# not (ore than Ten A1>= 3orkersC
Affida%it fro( e(ployer statin# the followin#C
7t is a retailBser%ice establish(ent.
7t is re#)larly e(ployin# not (ore than ten A1>= workers for at least si'
(onths in any calendar year.
0)siness Per(it for the c)rrent year fro( the appropriate #o%ern(ent a#ency.
2or 5stablish(ents Ad%ersely Affected by $at)ral Cala(ities
Affida%it fro( the Feneral Mana#er or Chief 5'ec)ti%e 1fficer of the
establish(ent re#ardin# the followin#C
Date and type of cala(ity
A(o)nt of lossesBda(a#es s)ffered as a direct res)lt of the cala(ity
List of properties da(a#edBlost to#ether with esti(ated %al)ation
2or properties that are not ins)red, a state(ent that the sa(e are not
co%ered by ins)rance.
Copies of ins)rance policy contracts co%erin# the properties da(a#ed, if any.
Ad4)sterOs report for ins)red properties.
A)dited financial state(ents for the last f)ll acco)ntin# period precedin# the
effecti%ity of the 1rder sta(ped recei%ed by the appropriate #o%ern(ent a#ency.

The 0oard (ay re<)ire the s)b(ission of other pertinent doc)(ents to s)pport the
application for e'e(ption.
SECTI+* 5. ACTI+* +* APPLICATI+* 0+R E9E$PTI+*
:pon receipt of an application with co(plete doc)(ents, the 0oard shall take the
followin# stepsC
a. $otify the D1L5 *e#ional 1ffice ha%in# 4)risdiction o%er the workplace of the pendency of the
application re<)estin# that action on any co(plaint for non-co(pliance with the 1rder be deferred
pendin# resol)tion of the application by the 0oard.
b. *e<)est the D1L5 *e#ional 1ffice to cond)ct oc)lar inspection, if necessary, of establish(ents
applyin# for e'e(ption to %erify n)(ber of workers, nat)re of b)siness and other rele%ant
infor(ation.
c. Act and decide on the application for e'e(ption with co(plete doc)(ents, as ()ch as
practicable, within , days fro( the date of filin#. 7n case of contested application, the 0oard (ay
cond)ct conciliation or call hearin#s thereon.
d. Trans(it the decision of the 0oard to the applicant establish(ent, the workers or president of the
)nion, if any, and the Co((ission, for their infor(ationJ and the D1L5 *e#ional 1ffice concerned,
for their i(ple(entationBenforce(ent.
The 0oard (ay create a &pecial Co((ittee with one representati%e fro( each sector to
e'pedite processin# of applications for e'e(ption.
SECTI+* 6. APPLICATI+* 0+R PR+8ECTSCBRA*CHESCDI:ISI+*S
3here the e'e(ption bein# so)#ht is for a partic)lar pro4ectBbranchBdi%ision not separately
re#istered and licensed, the consolidated a)dited financial state(ents of the establish(ent shall be
)sed as basis for deter(inin# its distressed condition.
SECTI+* 7. DISTRESSED PRI*CIPAL
5'e(ption #ranted to a distressed principal shall not e'tend to its contractor in case of
contractAs= for constr)ction, sec)rity, 4anitorial andBor si(ilar ser%ices with respect to the e(ployees
of the latter assi#ned to the for(er.
&ECTI+* ). E9TE*T A*D D5RATI+* +0 E9E$PTI+*
A f)ll e'e(ption of one A1= year shall be #ranted to all cate#ories of establish(ents that (eet
the applicable criteria for e'e(ption )nder &ection 6 of this F)idelines.
.owe%er, a partial e'e(ption of ,>K with respect to the a(o)nt or period of e'e(ption shall be
#ranted only in the case of distressed establish(ents as followsC
a. 2or corporationsBcooperati%es
3hen deficit as of the last f)ll acco)ntin# period or interi( period, if any, i((ediately precedin#
the effecti%ity of the 1rder a(o)nts to less than ">K of the paid-)p capital of the sa(e period.
b. 2or sin#le proprietorshipsBpartnerships
3hen the net acc)()lated losses for the period )nder re%iew a(o)nts to at least 1,K b)t less
than ">K of the total in%ested capital at the be#innin# of the period )nder re%iew.
c. $on-stock non-profit or#ani;ations
3hen the net acc)()lated losses for the period )nder re%iew precedin# the effecti%ity of the
1rder a(o)nts to at least 1,K b)t less than ">K of the f)nd balanceB(e(bersO contrib)tion at the
be#innin# of the period )nder re%iew.
SECTI+* (. PR+CED5RES +* E9E$PTI+*
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A. 2or 2ilin# of Application
1. An application, in three A6= le#ible copies (ay be filed with the appropriate 0oard by the
ownerB(ana#er or d)ly a)thori;ed representati%e of an establish(ent, in person or by re#istered
(ail.
The date of (ailin# shall be dee(ed as the date of filin#.
". Applications for all cate#ories shall be filed not later than si'ty A+>= days fro( p)blication of
the appro%ed i(ple(entin# r)les of the 1rder.
7n the case of $05s, applications shall be filed not later than si'ty A+>= days fro( date of
re#istration.
6. The application shall be )nder oath and acco(panied by co(plete s)pportin# doc)(ents as
en)(erated )nder &ection of this F)idelines. 7n the case of an application with inco(plete
s)pportin# doc)(ents, the applicant shall be notified to co(plete the sa(e within ten A1>= days
fro( receipt of the noticeJ otherwise, the application shall be dis(issed.
0. 2or 2ilin# of 1pposition
Any worker or, if )nioni;ed, the )nion in the applicant establish(ent, (ay file with the
appropriate 0oard within fifteen A1,= days fro( receipt of the notice of the filin# of the application,
an opposition to the application for e'e(ption statin# the reasons why the sa(e sho)ld not be
appro%ed, f)rnishin# the applicant a copy thereof. The fifteen A1,= day period shall r)n only )pon
receipt of co(plete s)pportin# doc)(ents. The opposition shall be in three A6= le#ible copies, )nder
oath and acco(panied by pertinent doc)(ents, if any.
C. 2or 2ilin# of Motion for *econsideration
The a##rie%ed party (ay file with the 0oard a (otion for reconsideration of the decision on the
application for e'e(ption within ten A1>= days fro( its receipt and shall state the partic)lar #ro)nds
)pon which the (otion is based, copy f)rnished the other party and the D1L5 *e#ional 1ffice
concerned.
$o second (otion for reconsideration shall be entertained in any case. The decision of the
0oard shall be final and e'ec)tory )nless appealed to the Co((ission.
D. 2or 2ilin# of Appeal to the Co((ission
1. Appeal - Any party a##rie%ed by the decision of the 0oard (ay file an appeal to the Co((ission,
thro)#h the 0oard, in two A"= le#ible copies, not later than ten A1>= days fro( date of receipt of the
decision.
The appeal, with proof of ser%ice to the other party, shall be acco(panied with a (e(orand)( of
appeal which shall state the date appellant recei%ed the decision, the #ro)nds relied )pon and the
ar#)(ents in s)pport thereof.
The appeal shall not be dee(ed perfected if it is filed with any office or entity other than the 0oard.
". Fro)nds for Appeal - An appeal (ay be filed on the followin# #ro)ndsC
a. $on-confor(ity with the prescribed #)idelines andBor proced)res on e'e(ptionJ
b. Pri(a facie e%idence of #ra%e ab)se of discretion on the part of the 0oardJ or
c. H)estions of law.
6. 1pposition - The appellee (ay file with the 0oard his reply or opposition to the appeal within ten
A1>= days fro( receipt of the appeal. 2ail)re of the appellee to file his reply or opposition shall be
constr)ed as wai%er on his part to file the sa(e.
. Trans(ittal of records - 3ithin fi%e A,= days )pon receipt of the reply or opposition of the
appellee or after the e'piration of the period to file the sa(e, the entire records of the case which
shall be consec)ti%ely n)(bered, shall be trans(itted by the 0oard to the Co((ission.
SECTI+* 14. L5+R5$ A*D :+TES REL5IRED
2o)r A= (e(bers of the Co((ission or 0oard shall constit)te a <)or)( to decide on the
applications for or on appeals on e'e(ption, pro%ided each sector is represented. The Co((ission
or 0oard (ay dispense with the latter pro%iso if the two A"= representati%es of any sector fail to
attend two A"= consec)ti%e sched)led (eetin#s with proper notice. The affir(ati%e %ote of the
(a4ority of the (e(bers constit)tin# a <)or)( shall be necessary to carry a decision.
SECTI+* 11. E00ECT +0 DISAPPR+:ED APPLICATI+* 0+R E9E$PTI+*
7n the e%ent that the application for e'e(ption is not appro%ed, co%ered workers shall be paid
the (andated wa#e increaseBallowance as pro%ided for )nder the 1rder retroacti%e to the date of
effecti%ity of the 1rder pl)s si(ple interest of one percent A1K= per (onth.
SECTI+* 12. *+*?DI$I*5TI+* +0 BE*E0ITS
5'e(ption #ranted )nder these F)idelines shall not be constr)ed to red)ce e'istin# wa#es and
other benefits en4oyed by the workers )nder e'istin# laws, decrees, iss)ances or )nder any
contract of a#ree(ent between the workers and e(ployees.
SECTI+* 1>. S5PPLE$E*TARA ;5IDELI*ES +* E9E$PTI+*
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The 0oard (ay iss)e s)pple(entary #)idelines for e'e(ption in accordance with this
F)idelines, s)b4ect to re%iewBappro%al by the Co((ission.
SECTI+* 14. E00ECTI:ITA
This F)idelines shall take effect fifteen A1,= days after p)blication in a newspaper of #eneral
circ)lation.
SECTI+* 15. REPEAL
All Co((ission F)idelines pre%io)sly adopted and inconsistent herewith are hereby repealed.
EKem/,"n 2nde! /&e Lab"! C"de 6A!/.()7
A!/. (). A1,%a/,"n ". T,/1e. This Title shall not apply to far( tenancy or leasehold, do(estic
ser%ice and persons workin# in their respecti%e ho(es in needle work or in any cotta#e ind)stry
d)ly re#istered in accordance with law.
RA (17) 6Ba!an-ay $,%!" B2s,ness En/e!!,ses A%/ ". 24427
A* ACT T+ PR+$+TE THE ESTABLISH$E*T +0 BARA*;AA $ICR+ B5SI*ESS
E*TERPRISES 6B$BEs7' PR+:IDI*; I*CE*TI:ES A*D BE*E0ITS THERE0+R' A*D 0+R
+THER P5RP+SES.
Se%/,"n >. D"f#&##o& of T"rm'. As )sed in this Act, the followin# ter(s shall (eanC
Aa= M0aran#ay Micro 0)siness 5nterprise,M hereinafter referred to as 0M05, refers to any b)siness
entity or enterprise en#a#ed in the prod)ction, processin# or (an)fact)rin# of prod)cts or
co((odities, incl)din# a#ro-processin#, tradin# and ser%ices, whose total assets incl)din# those
arisin# fro( loans b)t e'cl)si%e of the land on which the partic)lar b)siness entityOs office, plant
and e<)ip(ent are sit)ated, shall not be (ore than Three Million Pesos AP6,>>>,>>>.>>= The
Abo%e definition shall be s)b4ected to re%iew and )pward ad4)st(ent by the &M5D Co)ncil, as
(andated )nder *ep)blic Act $o. +977, as a(ended by *ep)blic Act $o. E"E9.
2or the p)rpose of this Act, Mser%iceM shall e'cl)de those rendered by any one, who is d)ly licensed
#o%ern(ent after ha%in# passed a #o%ern(ent licens)re e'a(ination, in connection with the
e'ercise of oneOs profession.
Ac= MAssetsM refers to all kinds of properties, real or personal, owned by the 0M05 and )sed for the
cond)ct of its b)siness as defined by the &M5D Co)ncilC Pro8#+"+, That for the p)rpose of
e'e(ption fro( ta'es and fees )nder this Act, this ter( shall (ean all kinds of properties, real or
personal, owned andBor )sed by the 0M05 for the cond)ct of its b)siness as defined by the &M5D
Co)ncil.
I*CE*TI:ES A*D BE*E0ITS
Se%/,"n ). E9"m%#o& from !" Co8"r(." of !" M#&#m,m W(." L(). The 0M05s shall be e'e(pt
fro( the co%era#e of the Mini()( 3a#e LawC Pro8#+"+, That all e(ployees co%ered )nder this Act
shall be entitled to the sa(e benefits #i%en to any re#)lar e(ployee s)ch as social sec)rity and
healthcare benefits.
P"we! /" ,ss2e R21es "n eKem/,"n' *WPCE P"we! /" -!an/ eKem/,"ns'
RTWPB
MArt. 1">. Creation of the $ational 3a#es and Prod)cti%ity Co((ission. - There is hereby created a $ational
3a#es and Prod)cti%ity Co((ission, hereinafter referred to as the Co((ission, which shall be attached to the
Depart(ent of Labor and 5(ploy(ent AD1L5= for policy and pro#ra( coordination.M
MArt. 1"1. Powers and 2)nctions of the Co((ission. - The Co((ission shall ha%e the followin# powers and
f)nctionsC
Aa= To act as the national cons)ltati%e and ad%isory body to the President of the Philippines and Con#ress on
(atters relatin# to wa#es, inco(es and prod)cti%ityJ
Ab= To for()late policies and #)idelines on wa#es, inco(es and prod)cti%ity i(pro%e(ent at the enterprise,
ind)stry and national le%elsJ
Ac= To prescribe r)les and #)idelines for the deter(ination of appropriate (ini()( wa#e and prod)cti%ity
(eas)res at the re#ional, pro%incial or ind)stry le%elsJ
Ad= To re%iew re#ional wa#e le%els set by the *e#ional Tripartite 3a#es and Prod)cti%ity 0oards to deter(ine if
these are in accordance with prescribed #)idelines and national de%elop(ent plansJ
Ae= To )ndertake st)dies, researches and s)r%eys necessary for the attain(ent of its f)nctions and ob4ecti%es,
and to collect and co(pile data and periodically disse(inate infor(ation on wa#es and prod)cti%ity and other
related infor(ation, incl)din#, b)t not li(ited to, e(ploy(ent, cost-of-li%in#, labor costs, in%est(ents and
ret)rnsJ
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Af= To re%iew plans and pro#ra(s of the *e#ional Tripartite 3a#es and Prod)cti%ity 0oards to deter(ine
whether these are consistent with national de%elop(ent plansJ
A#= To e'ercise technical and ad(inistrati%e s)per%ision o%er the *e#ional Tripartite 3a#es and Prod)cti%ity
0oardsJ
Ah= To call, fro( ti(e to ti(e, a national tripartite conference of representati%es of #o%ern(ent, workers and
e(ployers for the consideration of (eas)res to pro(ote wa#e rationali;ation and prod)cti%ityJ and
MThe Co((ission shall be co(posed of the &ecretary of Labor and 5(ploy(ent as e'-officio chair(an, the
Director-Feneral of the $ational 5cono(ic and De%elop(ent A)thority A$5DA= as e'-officio %ice-chair(an, and
two A"= (e(bers each fro( workers and e(ployers sectors who shall be appointed by the President of the
Philippines )pon reco((endation of the &ecretary of Labor and 5(ploy(ent to be (ade on the basis of the list
of no(inees s)b(itted by the workers and e(ployers sectors, respecti%ely, and who shall ser%e for a ter( of
fi%e A,= years. The 5'ec)ti%e Director of the Co((ission &ecretariat shall also be a (e(ber of the
Co((ission.M
MThe Co((ission shall be assisted by a &ecretariat to be headed by an 5'ec)ti%e Director and two A"=
Dep)ty Directors, who shall be appointed by the President of the Philippines, )pon reco((endation of the
&ecretary of Labor and 5(ploy(ent.M
MThe 5'ec)ti%e Director shall ha%e the sa(e rank, salary, benefits and other e(ol)(ents as that of a
Depart(ent Assistant &ecretary, while the Dep)ty Directors shall ha%e the sa(e rank, salary, benefits and
other e(ol)(ents as that of a 0)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 by law
for labor and (ana#e(ent representati%es in the 5(ployeesO Co(pensation Co((ission.M
Art. 1"". Creation of *e#ional Tripartite 3a#es and Prod)cti%ity 0oards. - There is hereby created *e#ional
Tripartite 3a#es and Prod)cti%ity 0oards, hereinafter referred to as *e#ional 0oards, in all re#ions, incl)din#
a)tono(o)s re#ions as (ay be established by law. The Co((ission shall deter(ine the officesBhead<)arters
of the respecti%e *e#ional 0oards.
MThe *e#ional 0oards shall ha%e the followin# powers and f)nctions in their respecti%e territorial 4)risdictionC
Aa= To de%elop plans, pro#ra(s and pro4ects relati%e to wa#es, inco(es and prod)cti%ity i(pro%e(ent for their
respecti%e re#ionsJ
Ab= To deter(ine and fi' (ini()( wa#e rates applicable in their re#ion, pro%inces or ind)stries therein and to
iss)e the correspondin# wa#e orders, s)b4ect to #)idelines iss)ed by the Co((issionJ
Ac= To )ndertake st)dies, researches, and s)r%eys necessary for the attain(ent of their f)nctions, ob4ecti%es
and pro#ra(s, and to collect and co(pile data on wa#es, inco(es, prod)cti%ity and other related infor(ation
and periodically disse(inate the sa(eJ
Ad= To coordinate with the other *e#ional 0oards as (ay be necessary to attain the policy and intention of this
CodeJ
Ae= To recei%e, process and act on applications for e'e(ption fro( prescribed wa#e rates as (ay be pro%ided
by law or any 3a#e 1rderJ and
Af= To e'ercise s)ch other powers and f)nctions as (ay be necessary to carry o)t their (andate )nder this
Code.
M7(ple(entation of the plans, pro#ra(s and pro4ects of the *e#ional 0oards referred to in the second
para#raph, letter Aa= of this Article, shall be thro)#h the respecti%e re#ional offices of the Depart(ent of Labor
and 5(ploy(ent within their territorial 4)risdictionJ Pro%ided, howe%er, That the *e#ional 0oards shall ha%e
technical s)per%ision o%er the re#ional office of the Depart(ent of Labor and 5(ploy(ent with respect to the
i(ple(entation of said plans, pro#ra(s and pro4ects.
M5ach *e#ional 0oard shall be co(posed of the *e#ional Director of the Depart(ent of Labor and
5(ploy(ent as chair(an, the *e#ional Directors of the $ational 5cono(ic and De%elop(ent A)thority and
Depart(ent of Trade and 7nd)stry as %ice-chair(en and two A"= (e(bers each fro( workers and e(ployers
sectors who shall be appointed by the President of the Philippines, )pon reco((endation of the &ecretary of
Labor and 5(ploy(ent, to be (ade on the basis of the list of no(inees s)b(itted by the workers and
e(ployers sectors, respecti%ely, and who shall ser%e for a ter( of fi%e A,= years.
Wa-e D,s/"!/,"nE C"n%e/ 6A!/.1247
The definition of 3a#e Distortion as abo%e <)oted, shows that s)ch distortion can so e'ist when,
as a res)lt of an increase in the prescribed wa#e rate, an Peli(ination or se%ere contraction of
intentional <)antitati%e differences in wa#e or salary ratesQ wo)ld occ)r Pbetween and a(on#
e(ployee #ro)ps in an establish(ent as to effecti%ely 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.Q
W&en d"es wa-e d,s/"!/,"n &aenM
7t happens when the e(ployer #rants an increase only to a certain #ro)p of e(ployees drastically
red)cin# or eli(inatin# the nor(al salary differential or #ap.
P"ss,b1e Ca2ses ". Wa-e D,s/"!/,"n:
17 ;"#e!nmen/ de%!eed ,n%!eases /&!"2-& ,ss2an%e ". wa-e "!de!s
" Iinds of wa#e ordersC
Aa= The Con#ress pro%ides for a stat)tory (ini()( wa#e Ad)rin# the (artial law era=
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and an increase is #i%en and added to the daily wa#e
Ab= 3ith the passa#e of *A +7"7, instead of pro%idin# for a fi'ed a(o)nt for an increase,
the wa#e order now fi'es a (ini()( wa#e below which the wa#es cannot fall.
27 $e!-e! ". /w" es/ab1,s&men/s w&e!eby /&e em1"yees ". /&e d,ss"1#ed %"many a!e
abs"!bed by /&e s2!#,#,n- %"many
EKam1e:
Ma#nolia $estle
Cas)al P1+> P19>
Per(anent P19> P">>
Ma#nolia-$estle
Cas)al ! P19>
Per(anent ! P19>
There will be wa#e distortion.
>7 Em1"ye! -!an/ed ,n%!eases /" /&e w"!=e!s ". an es/ab1,s&men/
The e(ployer #rants an increase affectin# only a certain #ro)p of e(ployees thereby
red)cin# drastically or totally eli(inatin# the salary #ap between s)ch #ro)p and the ne't
hi#her le%el.
47 Passa-e ". RA 6727
5'a(pleC &M Co(pany
Cas)al ! P1, a wa#e order is passed ! Cas)al ! P19>
Per(anent ! P1E> Apartic)larly 3a#e 1rder SE, creasin# the (ini()( wa#e to P19> -
Per(anent ! P19,
3a#e distortion now e'ists.
E..e%/s "n EK,s/,n- Wa-e S/!2%/2!e. 6Se%/,"n 16' IRR ". RA 67277
3here the application of the wa#e increase prescribed herein res)lts in D7&T1*T71$& in the
wa#e str)ct)re within an establish(ent which #i%es rise to disp)te therein, s)ch disp)te shallC
Aa= 2irst be settled %ol)ntarily between the parties
Ab= 7n the e%ent of deadlock, s)ch disp)te shall be finally resol%ed thro)#h co(p)lsory
arbitration by the *e#ional Arbitration 0ranch of the $L*C ha%in# 4)risdiction in the workplace.
E1emen/s
$e/&"ds +. Res"1#,n- Wa-e D,s/"!/,"n
The co)rt has pointed o)t that thro)#h Art.1", the law reco#ni;es the %alidity of *E;+TIATED
WA;E I*CREASES to correct wa#e distortion.
A. P!"%ed2!e ."! Res"1#,n- Wa-e D,s/"!/,"n ,n an 5*+R;A*IFED ESTABLISH$E*T
5*+R;A*IFED ESTABLISH$E*T Jwhere there is no reco#ni;ed )nion or collecti%e bar#ainin#
a#ree(ent
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6G7 T!" "m%*o0"r' (&+ !" )or/"r' '!o,*+ &".o#(" for !" (+A,'m"& of !" )(." r("'
&ho)ld the e(ployer ref)se to #rant an ad4)st(ent, then 0 sho)ld file a
co(plaint with the $CM0 on the #ro)nd of wa#e distortion.
6:7 T!" +#'%," '!o,*+ 1" r"f"rr"+ o !" NCMB for $o&$#*#(#o&
a. This proced)re is initiated by the filin# of a co(plaint with the $CM0 on the #ro)nd of
wa#e distortion.
b. 9)st fill )p the co(plaint for( pro%ided by the $CM0.
c. The *e#ional Director of the $CM0 will now iss)e a $1T7C5 12 .5A*7$F directed to
the e(ployer in%itin# hi( to (eet with the( at a desi#nated ti(e, date and place.
d. At the $CM0, the co(plainant 0 and the e(ployer will ha%e to be present. This
proceedin# will be s)per%ised by an $CM0 .earin# 1fficer.
-This is entirely different fro( the first step beca)se the third person A$CMD .earin#
1fficer= now interferes and asks the e(ployers-
P .ow ()ch can yo) affordTQ
And to the e(ployees-
P .ow ()ch increase do yo) wantTQ
7n so doin#, it takes into consideration the financial capacity of the e(ployer and the need of
the workers.
e. The $CM0 will try to settle the disp)te thro)#h AM7CA0L5 &5TTL5M5$T.
5'a(pleC 5(ployer wants to pay P1 increase.
5(ployee wants P, increase
$CM0 will settle for P6 and s)##ests this sol)tion to both parties.
f. &ho)ld the e(ployer ref)se to accede to the re(edy s)##ested by the $CM0, the $CM0
cannot (ake ne#otiations to bind both parties beca)se the (ain p)rpose of $CM0 is to
conciliate and it will s)##est that the parties s)b(it to /1L:$TA*@ A*07T*AT71$.
6= If &o '"*"m"& #' (rr#8"+ (, !"& !" +#'%," '!(** 1" r"f"rr"+ o !" R".#o&(* Br(&$! of !"
NLRC for COMPULSORY ARBITRATION.
This is presided o%er by Labor Arbiters AArticle "17=
The proceedin# id )s)ally ad%ersarial in character beca)se it is initiated by a
co(plaint before the Labor Arbiter and the other party is re<)ired to answer.
&o, there will be a f)ll-blown hearin# to resol%e wa#e distortion
Any decision co(in# o)t of the Labor Arbiter shall be bindin# on both parties,
whether they like it or not.
*+TE: 7n the case of :$1*FA$7G5D 5&TA0L7A.M5$T&-
Prior to the ti(e the parties s)b(it their disp)te to the $CM0, they co)ld resort to
/1L:7$TA*@ A*07T*AT71$.
/1L:$TA*@ A*07T*AT71$ is not co(p)lsoryJ the parties will ha%e to #i%e their consent if
they want to s)b(it their disp)te to %ol)ntary arbitration.
They will be #i%en a L7&T of %ol)ntary arbitrators fro( which they will pick o)t those which
they ha%e chosen to be the arbitrators.
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.owe%er, (ost often then not, the parties do not s)b(it their disp)te to %ol)ntary arbitration
beca)se (ost of the( do not tr)st the /ol)ntary Arbitrators.
The decision of the /ol)ntary Arbitrator is 07$D7$F )pon the parties. 3hyT This is a
contract)al proceedin# and the contract is the law of the parties.
7n resol%in# wa#e distortions, yo) do not always consider (onetary (atters. @o) also ha%e to
take into consideration the len#th of ser%ice, the skills.
7s the decision of the %ol)ntary Arbitrator appealable to the $L*CT $o, )nless it beco(es
final and e'ec)tory.
THE LE;AL RE$EDA T+ THE DECISI+* +0 THE :+L5*TARA ARBITRAT+R
A1= To the Co)rt of Appeals by way of Petion for *e%iew )nder *)le 6 AH)asi-9)dicial A#ency=
within 1, days
L);on &te%edorin# 5(ployees :nion. 7f appeal, will that stay the decision of the %ol)ntary
arbitrationT
$o, beca)se the decision of the /ol)ntary Arbitrator is final and not appealable, b)t
Te(porary *estrainin# 1rder and a 3rit of Preli(inary 7n4)nction (ay be applied for.
&o )se Petition for *e%iew with Motion for &tay, beca)se of its final and e'ec)tory nat)re.
A"= Then to the &)pre(e Co)rt )nder *)le , on <)estions of law AAppeal by Certiorari= 1, days
fro( receipt of the decision of the Co)rt of Appeals or receipt of the denial of the (otion for
reconsideration.
B7. P!"%ed2!e ."! Res"1#,n- ,n an +R;A*IFED ESTABLISH$E*T
6G7 T!" "m%*o0"r (&+ !" ,&#o& '!(** &".o#(" o $orr"$ !" )(." +#'or#o&.
6:7 If &".o#(#o& f(#*, !"& !" +#'%," #' '"*"+ !ro,.! !" .r#"8(&$" %ro$"+,r" ,&+"r !"#r
CBA.
;RIE:A*CE $ACHI*ERA J is si(ply a detailed proced)re of how the parties wo)ld resol%e a
disp)te arisin# fro(C
6a7 The interpretation or i(ple(entation of the C0A and
6b7 Thos arisin# fro( the interpretation or enforce(ent of co(pany personnel policies.
6;7 If !" +#'%," #& ,&r"'o*8"+, !" m("r #' ',1m#"+ for VOLUNTARY ARBITRATION 6)!#$!
#' &o (*)(0' !" $('" 1"$(,'" %(r#"' $(&&o 1" $om%"**"+ o ',1m# o #.
637 T!" m("r #' (*'o r"'o*8"+ !ro,.! !" NCMB 10 f#*#&. ( $om%*(#&B MEDIATION #' +o&" 10
!" NCMB !ro,.! #' H"(r#&. Off#$"r, (+8#'#&. !" %(r#"' o ',1m# !"#r +#'%," o (
8o*,&(r0 (r1#r(or.
7f both or one of the parties is )nwillin# to s)b(it to /ol)ntary Arbitrator, then the (atter beco(es
)nresol%ed.
6<7 T!" m("r #' ',1m#"+ o !" R".#o&(* Ar1#r(or Br(&$! of !" NLRC for COMPULSORY
ARBITRATION.
.ow is this doneT
0y filin# a co(plaint with the *e#ional Arbitration 0ranch
The decision will be bindin# )pon the parties
2ro( the decision of the Labor Arbiter, the (atter wo)ld be bro)#ht to the $L*C, then the CA,
and e%en )p to the &C.
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C+$$+* PR+CED5RE I* 5*+R;A*IFED A*D +R;A*IFED ESTABLISH$E*TS
7f ne#otiations fail, the (atter shall be referred to the $ational Conciliation and Mediation
0oard A$CM0=.
$ow, the .earin# 1fficer of the $CM0 will try to conciliate and (ediate between the
parties so that they will reach an AM7CA0L5 &5TTL5M5$T.
7f an a(icable settle(ent is not reached, the .earin# 1fficer of the $CM0 will ad%ise the
parties to s)b(it the (atter to /1L:$TA*@ A*07T*AT71$. &o, there is /ol)ntary Arbitration for
both or#ani;ed and )nor#ani;ed establish(ents.
A!/,%1e 124. S(&+(r+'HCr#"r#( for M#&#m,m W(." F#9#&.. The re#ional (ini()( wa#es to be
established by the *e#ional 0oard shall be as nearly ade<)ate as is econo(ically feasible to
(aintain the (ini()( standards of li%in# necessary for the health, efficiency and #eneral well-
bein# of the e(ployees within the fra(ework of the national econo(ic and social de%elop(ent
pro#ra(. 7n the deter(ination of s)ch re#ional (ini()( wa#es, the *e#ional 0oard shall, a(on#
other rele%ant factors, consider the followin#C
Aa= The de(and for li%in# wa#esJ
Ab= 3a#e ad4)st(ent %is-a-%is the cons)(er price inde'J
Ac= The cost of li%in# and chan#es or increases thereinJ
Ad= The needs of workers and their fa(iliesJ
Ae= The need to ind)ce ind)stries to in%est in the co)ntrysideJ
Af= 7(pro%e(ents in standards of li%in#J
A#= The pre%ailin# wa#e le%elsJ
Ah= 2air ret)rn of the capital in%ested and capacity to pay of e(ployersJ
Ai= 5ffects in e(ploy(ent #eneration and fa(ily inco(eJ and
A4= 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%ery re#ion. These wa#es shall incl)de wa#es %aryin# with
ind)stries, pro%inces or localities if in the 4)d#(ent of the *e#ional 0oard conditions (ake s)ch
local differentiation proper and necessary to effect)ate the p)rpose of this Title.
Any person, co(pany, corporation, partnership or any other entity en#a#ed in b)siness shall file
and re#ister ann)ally with the appropriate *e#ional 0oard, Co((ission and the $ational &tatistics
1ffice an ite(i;ed listin# of their labor co(ponent, specifyin# the na(es of their workers and
e(ployees below the (ana#erial le%el, incl)din# learners, apprentices and disabledBhandicapped
workers who were hired )nder the ter(s prescribed in the e(ploy(ent contracts, and their
correspondin# salaries and wa#es.
3here the application of any prescribed wa#e increase by %irt)e of a law or 3a#e 1rder iss)ed by
any *e#ional 0oard res)lts in distortions of the wa#e str)ct)re within an establish(ent, the
e(ployer and the )nion shall ne#otiate to correct the distortions. Any 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)ntary arbitration. :nless otherwise a#reed by
the parties in writin#, s)ch disp)te shall be decided by the %ol)ntary arbitrator or panel fro( the
ti(e said disp)te was referred to %ol)ntary arbitration.
7n cases where there are no collecti%e a#ree(ents or reco#ni;ed labor )nions, the e(ployers and
workers shall endea%or to correct s)ch distortions. Any disp)te arisin# therefro( shall be settled
thro)#h the $ational Conciliation and Mediation 0oard and, if it re(ains )nresol%ed after ten A1>=
calendar days of conciliation, shall be referred to the appropriate branch of the $ational Labor
*elations Co((ission A$L*C=. 7t shall be (andatory for the $L*C to cond)ct contin)o)s hearin#s
and decide the disp)te within twenty A">= calendar days fro( the ti(e said disp)te is s)b(itted for
co(p)lsory arbitration.
As )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 salary rates between and a(on# e(ployee #ro)ps in an establish(ent as to effecti%ely
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.
The pendency of a disp)te arisin# fro( a wa#e distortion shall not in any way delay the applicability
of any increase in prescribed wa#e rates p)rs)ant to the pro%isions of law or wa#e order.
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All workers paid by res)lt, incl)din# those who are paid on piecework, takay, pakyaw, or task basis,
shall recei%e not less than the prescribed wa#e rates per ei#ht AE= ho)rs of work a day, or a
proportion thereof for workin# less than ei#ht AE= ho)rs.
All reco#ni;ed learnership and apprenticeship a#ree(ents shall be considered a)to(atically
(odified insofar as their wa#e cla)ses are concerned to reflect the prescribed wa#e rates. AAs
a(ended by *A +7"7=
RA 6727'Se%. 4. De.,n,/,"n ". Te!ms. As 2sed ,n /&,s R21es:
A(= M3a#e DistortionM 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 salary rates
between and a(on# e(ployee #ro)ps in an establish(ent as to effecti%ely 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 differentiationJ
Tw" $e/&"ds ". De/e!m,n,n- Wa-es
82!,sd,%/,"n "#e! wa-e d,s/"!/,"n d,s2/es
6a7 C"m21s"!y A!b,/!a/,"n
6b7 :"12n/a!y A!b,/!a/,"n
6%7 Aea1 P!"%ed2!e
Se%,a1 C,#,1 A%/,"n 6R21e 65' 1((7 R21es ". C,#,1 P!"%ed2!e7
R5LE 65
CERTI+RARI' PR+HIBITI+* A*D $A*DA$5S
&5CT71$ 1. P"##o& for $"r#or(r#.N3hen any trib)nal, board or officer e'ercisin# 4)dicial or <)asi-4)dicial
f)nctions has acted witho)t or in e'cess of its or his 4)risdiction, or with #ra%e ab)se of discretion a(o)ntin# to
lack or e'cess of 4)risdiction, and there is no appeal, or any plain, speedy, and ade<)ate re(edy in the ordinary
co)rse of law, a person a##rie%ed thereby (ay file a %erified petition in the proper co)rt, alle#in# the facts with
certainty and prayin# that 4)d#(ent be rendered ann)llin# or (odifyin# the proceedin#s of s)ch trib)nal, board
or officer, and #rantin# s)ch incidental reliefs as law and 4)stice (ay re<)ire.
The petition shall be acco(panied by a certified tr)e copy of the 4)d#(ent, order or resol)tion s)b4ect
thereof, copies of all pleadin#s and doc)(ents rele%ant and pertinent thereto, and a sworn certification of non-
for)( shoppin# as pro%ided in the third para#raph of section 6, *)le +.

A1a=
&5C. ". P"##o& for %ro!#1##o&.I3hen the proceedin#s of any trib)nal, corporation, board, officer or
person, whether e'ercisin# 4)dicial, <)asi-4)dicial or (inisterial f)nctions, are witho)t or in e'cess of its or his
4)risdiction, or with #ra%e ab)se of discretion a(o)ntin# to lack or e'cess of 4)risdiction, and there is no appeal
or any other plain, speedy, and ade<)ate re(edy in the ordinary co)rse of law, a person a##rie%ed thereby (ay
file a %erified petition in the proper co)rt, alle#in# the facts with certainty and prayin# that 4)d#(ent be rendered
co((andin# the respondent to desist fro( f)rther proceedin#s in the action or (atter specified therein, or
otherwise #rantin# s)ch incidental reliefs as law and 4)stice (ay re<)ire.
The petition shall likewise be acco(panied by a certified tr)e copy of the 4)d#(ent, order or resol)tion
s)b4ect thereof, copies of all pleadin#s and doc)(ents rele%ant and pertinent thereto, and a sworn certification
of non-for)( shoppin# as pro%ided in the third para#raph of section 6, *)le +. A"a=
&5C. 6. P"##o& for m(&+(m,'.I3hen any trib)nal, corporation, board, officer or person )nlawf)lly
ne#lects the perfor(ance of an act which the law specifically en4oins as a d)ty res)ltin# fro( an office, tr)st, or
station, or )nlawf)lly e'cl)des another fro( the )se and en4oy(ent of a ri#ht or office to which s)ch other is
entitled, and there is no other plain, speedy and ade<)ate re(edy in the ordinary co)rse of law, the person
a##rie%ed thereby (ay file a %erified petition in the proper co)rt, alle#in# the facts with certainty and prayin#
that 4)d#(ent be rendered co((andin# the respondent, i((ediately or at so(e other ti(e to be specified by
the co)rt, to do the act re<)ired to be done to protect the ri#hts of the petitioner, and to pay the da(a#es
s)stained by the petitioner by reason of the wron#f)l acts of the respondent.
The petition shall also contain a sworn certification of non-for)( shoppin# as pro%ided in the third
para#raph of section 6, *)le +. A6a=
&5C. . W!"& (&+ )!"r" %"##o& f#*"+.IThe petition (ay be filed not later than si'ty A+>= days fro(
notice of the 4)d#(ent, order or resol)tion. 7n case a (otion for reconsideration or new trial is ti(ely filed,
whether s)ch (otion is re<)ired or not, the si'ty A+>= day period shall be co)nted fro( notice of the denial of
said (otion.
The petition shall be filed in the &)pre(e Co)rt or, if it relates to the acts or o(issions of a lower co)rt or
of a corporation, board, officer or person, in the *e#ional Trial Co)rt e'ercisin# 4)risdiction o%er the territorial
area as defined by the &)pre(e Co)rt. 7t (ay also be filed in the Co)rt of Appeals whether or not the sa(e is
in aid of its appellate 4)risdiction, or in the &andi#anbayan if it is in aid of its appellate 4)risdiction. 7f it in%ol%es
the acts or o(issions of a <)asi-4)dicial a#ency, and )nless otherwise pro%ided by law or these r)les, the
petition shall be filed in and co#ni;able only by the Co)rt of Appeals.
$o e'tension of ti(e to file the petition shall be #ranted e'cept for co(pellin# reason and in no case
Page 40 of 267
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e'ceedin# fifteen A1,= days.
&5C. ,. R"'%o&+"&' (&+ $o'' #& $"r(#& $('"'I3hen the petition filed relates to the acts or o(issions
of a 4)d#e, co)rt, <)asi-4)dicial a#ency, trib)nal, corporation, board, officer or person, the petitioner shall 4oin, as
pri%ate respondent or respondents with s)ch p)blic respondent or respondents, the person or persons
interested in s)stainin# the proceedin#s in the co)rtJ and it shall be the d)ty of s)ch pri%ate respondents to
appear and defend, both in his or their own behalf and in behalf of the p)blic respondent or respondents
affected by the proceedin#s, and the costs awarded in s)ch proceedin#s in fa%or of the petitioner shall be
a#ainst the pri%ate respondents only, and not a#ainst the 4)d#e, co)rt, <)asi-4)dicial a#ency, trib)nal,
corporation, board, officer or person i(pleaded as p)blic respondent or respondents.
:nless otherwise specifically directed by the co)rt where the petition is pendin#, the p)blic respondents
shall not appear in or file an answer or co((ent to the petition or any pleadin# therein. 7f the case is ele%ated
to a hi#her co)rt by either party, the p)blic respondents shall be incl)ded therein as no(inal parties. .owe%er,
)nless otherwise specifically directed by the co)rt, they shall not appear or participate in the proceedin#s
therein. A,a=
&5C. +. Or+"r o $omm"&.4 7f the petition is s)fficient in for( and s)bstance to 4)stify s)ch process, the
co)rt shall iss)e an order re<)irin# the respondent or respondents to co((ent on the petition within ten A1>=
days fro( receipt of a copy thereof. &)ch order shall be ser%ed on the respondents in s)ch (anner as the
co)rt (ay direct, to#ether with a copy of the petition and any anne'es thereto.
7n petitions for certiorari before the &)pre(e Co)rt and the Co)rt of Appeals, the pro%isions of section ",
*)le ,+, shall be obser%ed. 0efore #i%in# d)e co)rse thereto, the co)rt (ay re<)ire the respondents to file their
co((ent to, and not a (otion to dis(iss, the petition. Thereafter, the co)rt (ay re<)ire the filin# of a reply and
s)ch other responsi%e or other pleadin#s as it (ay dee( necessary and proper. A+a=
&5C. 7. E9%"+##&. %ro$""+#&.'B #&A,&$#8" r"*#"f.IThe co)rt in which the petition is filed (ay iss)e
orders e'peditin# the proceedin#s, and it (ay also #rant a te(porary restrainin# order or a writ of preli(inary
in4)nction for the preser%ation of the ri#hts of the parties pendin# s)ch proceedin#s. The petition shall not
interr)pt the co)rse of the principal case )nless a te(porary restrainin# order or a writ of preli(inary in4)nction
has been iss)ed a#ainst the p)blic respondent fro( f)rther proceedin# in the case. A7a=
&5C. E. Pro$""+#&.' (f"r $omm"& #' f#*"+.IAfter the co((ent or other pleadin#s re<)ired by the co)rt
are filed, or the ti(e for the filin# thereof has e'pired, the co)rt (ay hear the case or re<)ire the parties to
s)b(it (e(oranda. 7f after s)ch hearin# or s)b(ission of (e(oranda or the e'piration of the period for the
filin# thereof the co)rt finds that the alle#ations of the petition are tr)e, it shall render 4)d#(ent for the relief
prayed for or to which the petitioner is entitled.
The co)rt, howe%er, (ay dis(iss the petition if it finds the sa(e to be patently witho)t (erit, prosec)ted
(anifestly for delay, or that the <)estions raised therein are too )ns)bstantial to re<)ire consideration. AEa=
&5C. 9. S"r8#$" (&+ "&for$"m"& of or+"r or A,+.m"&.IA certified copy of the 4)d#(ent rendered in
accordance with the last precedin# section shall be ser%ed )pon the co)rt, <)asi-4)dicial a#ency, trib)nal,
corporation, board, officer or person concerned in s)ch (anner as the co)rt (ay direct, and disobedience
thereto shall be p)nished as conte(pt. An e'ec)tion (ay iss)e for any da(a#es or costs awarded in
accordance with section 1 of *)le 69.
Pe/,/,"n ."! Re#,ew
R5LE 4>
APPEALS 0R+$ THE C+5RT +0 TA9 APPEALS A*D L5ASI?85DICIAL A;E*CIES T+ THE C+5RT +0
APPEALS
&5CT71$ 1. S$o%".IThis *)le shall apply to appeals fro( 4)d#(ents or final orders of the Co)rt of Ta'
Appeals and fro( awards, 4)d#(ents, final orders or resol)tions of or a)thori;ed by any <)asi-4)dicial a#ency in
the e'ercise of its <)asi-4)dicial f)nctions. A(on# these a#encies are the Ci%il &er%ice Co((ission, Central
0oard of Assess(ent Appeals, &ec)rities and 5'chan#e Co((ission, 1ffice of the President, Land
*e#istration A)thority, &ocial &ec)rity Co((ission, Ci%il Aerona)tics 0oard, 0)rea) of Patents, Trade(arks
and Technolo#y Transfer, $ational 5lectrification Ad(inistration, 5ner#y *e#)latory 0oard, $ational
Teleco(()nications Co((ission, Depart(ent of A#rarian *efor( )nder *ep)blic Act $o. ++,7, Fo%ern(ent
&er%ice 7ns)rance &yste(, 5(ployees Co(pensation Co((ission, A#ric)lt)ral 7n%entions 0oard, 7ns)rance
Co((ission, Philippine Ato(ic 5ner#y Co((ission, 0oard of 7n%est(ents, Constr)ction 7nd)stry Arbitration
Co((ission, and %ol)ntary arbitrators a)thori;ed by law. An=
&5C. ". C('"' &o $o8"r"+.NThis *)le shall not apply to 4)d#(ents or final orders iss)ed )nder the
Labor Code of the Philippines. An=
&5C. 6. W!"r" o (%%"(*.IAn appeal )nder this *)le (ay be taken to the Co)rt of Appeals within the
period and in the (anner herein pro%ided, whether the appeal in%ol%es <)estions of fact, of law, or (i'ed
<)estions of fact and law. An=
&5C. . P"r#o+ of (%%"(*.IThe appeal shall be taken within fifteen A1,= days fro( notice of the award,
4)d#(ent, final order or resol)tion, or fro( the date of its last p)blication, if p)blication is re<)ired by law for its
effecti%ity, or of the denial of petitioner8s (otion for new trial or reconsideration d)ly filed in accordance with the
#o%ernin# law of the co)rt or a#ency a 5,o. 1nly one A1= (otion for reconsideration shall be allowed. :pon
proper (otion and the pay(ent of the f)ll a(o)nt of the docket fee before the e'piration of the re#le(entary
period, the Co)rt of Appeals (ay #rant an additional period of fifteen A1,= days only within which to file the
petition for re%iew. $o f)rther e'tension shall be #ranted e'cept for the (ost co(pellin# reason and in no case
to e'ceed fifteen A1,= days. An=
&5C. ,. Ho) (%%"(* (/"&..IAppeal shall be taken by filin# a %erified petition for re%iew in se%en A7=
le#ible copies with the Co)rt of Appeals, with proof of ser%ice of a copy thereof on the ad%erse party and on the
co)rt or a#ency ( 5,o. The ori#inal copy of the petition intended for the Co)rt of Appeals shall be indicated as
s)ch by the petitioner.
:pon the filin# of the petition, the petitioner shall pay to the clerk of co)rt of the Co)rt of Appeals the
docketin# and other lawf)l fees and deposit the s)( of P,>>.>> for costs. 5'e(ption fro( pay(ent of
Page 41 of 267
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docketin# and other lawf)l fees and the deposit for costs (ay be #ranted by the Co)rt of Appeals )pon a
%erified (otion settin# forth %alid #ro)nds therefor. 7f the Co)rt of Appeals denies the (otion, the petitioner shall
pay the docketin# and other lawf)l fees and deposit for costs within fifteen A1,= days fro( notice of the denial.
An=
&5C. +. Co&"&' of !" %"##o&.IThe petition for re%iew shall Aa= state the f)ll na(es of the parties to the
case, witho)t i(pleadin# the co)rt or a#encies either as petitioners or respondentsJ Ab= contain a concise
state(ent of the facts and iss)es in%ol%ed and the #ro)nds relied )pon for the re%iewJ Ac= be acco(panied by a
clearly le#ible d)plicate ori#inal or a certified tr)e copy of the award, 4)d#(ent, final order or resol)tion
appealed fro(, to#ether with certified tr)e copies of s)ch (aterial portions of the record referred to therein and
other s)pportin# papersJ and Ad= contain a sworn certification a#ainst for)( shoppin# as pro%ided in the last
para#raph of section ", *)le ". The petition shall state the specific (aterial dates showin# that it was filed
within the period fi'ed herein. A"a=
&5C. 7. Eff"$ of f(#*,r" o $om%*0 )#! r"5,#r"m"&'.IThe fail)re of the petitioner to co(ply with any of
the fore#oin# re<)ire(ents re#ardin# the pay(ent of the docket and other lawf)l fees, the deposit for costs,
proof of ser%ice of the petition, and the contents of and the doc)(ents which sho)ld acco(pany the petition
shall be s)fficient #ro)nd for the dis(issal thereof. An=
&5C. E. A$#o& o& !" %"##o&.IThe Co)rt of Appeals (ay re<)ire the respondent to file a co((ent on
the petition, not a (otion to dis(iss, within ten A1>= days fro( notice, or dis(iss the petition if it finds the sa(e
to be patently witho)t (erit, prosec)ted (anifestly for delay, or that the <)estions raised therein are too
)ns)bstantial to re<)ire consideration. A+a=
&5C. 9. Co&"&' of $omm"&.IThe co((ent shall be filed within ten A1>= days fro( notice in se%en A7=
le#ible copies and acco(panied by clearly le#ible certified tr)e copies of s)ch (aterial portions of the record
referred to therein to#ether with other s)pportin# papers. The co((ent shall Aa= point o)t ins)fficiencies or
inacc)racies in petitioner8s state(ent of facts and iss)esJ and Ab= state the reasons why the petition sho)ld be
denied or dis(issed. A copy thereof shall be ser%ed on the petitioner, and proof of s)ch ser%ice shall be filed
with the Co)rt of Appeals. A9a=
&5C. 1>. D," $o,r'".I7f )pon the filin# of the co((ent or s)ch other pleadin#s or doc)(ents as (ay
be re<)ired or allowed by the Co)rt of Appeals or )pon the e'piration of the period for the filin# thereof, and on
the basis of the petition or the records the Co)rt of Appeals finds %r#m( f($#" that the co)rt or a#ency concerned
has co((itted errors of fact or law that wo)ld warrant re%ersal or (odification of the award, 4)d#(ent, final
order or resol)tion so)#ht to be re%iewed, it (ay #i%e d)e co)rse to the petitionJ otherwise, it shall dis(iss the
sa(e. The findin#s of fact of the co)rt or a#ency concerned, when s)pported by s)bstantial e%idence, shall be
bindin# on the Co)rt of Appeals. An=
&5C. 11. Tr(&'m#(* of record.N3ithin fifteen A1,= days fro( notice that the petition has been #i%en d)e
co)rse, the Co)rt of Appeals (ay re<)ire the co)rt or a#ency concerned to trans(it the ori#inal or a le#ible
certified tr)e copy of the entire record of the proceedin# )nder re%iew. The record to be trans(itted (ay be
abrid#ed by a#ree(ent of all parties to the proceedin#. The Co)rt of Appeals (ay re<)ire or per(it s)bse<)ent
correction of or addition to the record. AEa=
&5C. 1". Eff"$ of (%%"(*IThe appeal shall not stay the award, 4)d#(ent, final order of resol)tion so)#ht
to be re%iewed )nless the Co)rt of Appeals shall direct otherwise )pon s)ch ter(s as it (ay dee( 4)st. A1>a=
&5C. 16. S,1m#''#o& for +"$#'#o&.I7f the petition is #i%en d)e co)rse, the Co)rt of Appeals (ay set the
case for oral ar#)(ent or re<)ire the parties to s)b(it (e(oranda within a period of fifteen A1,= days fro(
notice. The case shall be dee(ed s)b(itted for decision )pon the filin# of the last pleadin# or (e(orand)(
re<)ired by these *)les or by the Co)rt of Appeals. An=
R5LE 45
APPEAL BA CERTI+RARI T+ THE S5PRE$E C+5RT
&5CT71$ 1. F#*#&. of %"##o& )#! S,%r"m" Co,r.IA party desirin# to appeal by certiorari fro( a
4)d#(ent or final order or resol)tion of the Co)rt of Appeals, the &andi#anbayan, the *e#ional Trial Co)rt or
other co)rts whene%er a)thori;ed by law, (ay file with the &)pre(e Co)rt a %erified petition for re%iew on
certiorari. The petition shall raise only <)estions of law which ()st be distinctly set forth. A1a, "a=
&5C. ". T#m" for f#*#&.B "9"&'#o&.IThe petition shall be filed within fifteen A1,= days fro( notice of the
4)d#(ent or final order or resol)tion appealed fro(, or of the denial of the petitioner8s (otion for new trial or
reconsideration filed in d)e ti(e after notice of the 4)d#(ent. 1n (otion d)ly filed and ser%ed, with f)ll pay(ent
of the docket and other lawf)l fees and the deposit for costs before the e'piration of the re#le(entary period,
the &)pre(e Co)rt (ay for 4)stifiable reasons #rant an e'tension of thirty A6>= days only within which to file the
petition. A1a, ,a=
&5C. 6. Do$/" (&+ o!"r *()f,* f""'B %roof of '"r8#$" of %"##o&.I:nless he has theretofore done so,
the petitioner shall pay the correspondin# docket and other lawf)l fees to the clerk of co)rt of the &)pre(e
Co)rt and deposit the a(o)nt of P,>>.>> for costs at the ti(e of the filin# of the petition. Proof of ser%ice of a
copy thereof on the lower co)rt concerned and on the ad%erse party shall be s)b(itted to#ether with the
petition. A1a=
&5C. . Co&"&' of %"##o&IThe petition shall be filed in ei#hteen A1E= copies, with the ori#inal copy
intended for the co)rt bein# indicated as s)ch by the petitioner, and shall Aa= state the f)ll na(e of the appealin#
party as the petitioner and the ad%erse party as respondent, witho)t i(pleadin# the lower co)rts or 4)d#es
thereof either as petitioners or respondentsJ Ab= indicate the (aterial dates showin# when notice of the
4)d#(ent or final order or resol)tion s)b4ect thereof was recei%ed, when a (otion for new trial or
reconsideration, if any, was filed and when notice of the denial thereof was recei%edJ Ac= set forth concisely a
state(ent of the (atters in%ol%ed, and the reasons or ar#)(ents relied on for the allowance of the petitionJ Ad=
be acco(panied by a clearly le#ible d)plicate ori#inal, or a certified tr)e copy of the 4)d#(ent or final order or
resol)tion certified by the clerk of co)rt of the co)rt ( 5,o and the re<)isite n)(ber of plain copies thereof, and
s)ch (aterial portions of the record as wo)ld s)pport the petitionJ and Ae= contain a sworn certification a#ainst
Page 42 of 267
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for)( shoppin# as pro%ided in the last para#raph of section ", *)le ". A"a=
&5C. ,. D#'m#''(* or +"&#(* of %"##o&.IThe fail)re of the petitioner to co(ply with any of the fore#oin#
re<)ire(ents re#ardin# the pay(ent of the docket and other lawf)l fees, deposit for costs, proof of ser%ice of
the petition, and the contents of and the doc)(ents which sho)ld acco(pany the petition shall be s)fficient
#ro)nd for the dis(issal thereof.
The &)pre(e Co)rt (ay on its own initiati%e deny the petition on the #ro)nd that the appeal is witho)t
(erit, or is prosec)ted (anifestly for delay, or that the <)estions raised therein are too )ns)bstantial to re<)ire
consideration. A6a=
&5C. +. R"8#") +#'$r"#o&(r0.IA re%iew is not a (atter of ri#ht, b)t of so)nd 4)dicial discretion, and will
be #ranted only when there are special and i(portant reasons therefor. The followin#, while neither controllin#
nor f)lly (eas)rin# the co)rt8s discretion, indicate the character of the reasons which will be consideredC
Aa= 3hen the co)rt a <)o has decided a <)estion of s)bstance, not theretofore deter(ined by
the &)pre(e Co)rt, or has decided it in a way probably not in accord with law or with the applicable decisions of
the &)pre(e Co)rtJ or
Ab= 3hen the co)rt a <)o has so far departed fro( the accepted and )s)al co)rse of 4)dicial
proceedin#s, or so far sanctioned s)ch depart)re by a lower co)rt, as to call for an e'ercise of the power of
s)per%ision. Aa=
&5C. 7. P*"(+#&.' (&+ +o$,m"&' !( m(0 1" r"5,#r"+B '(&$#o&'.I2or p)rposes of deter(inin#
whether the petition sho)ld be dis(issed or denied p)rs)ant to section , of this *)le, or where the petition is
#i%en d)e co)rse )nder section E hereof, the &)pre(e Co)rt (ay re<)ire or allow the filin# of s)ch pleadin#s,
briefs, (e(oranda or doc)(ents as it (ay dee( necessary within s)ch periods and )nder s)ch conditions as it
(ay consider appropriate, and i(pose the correspondin# sanctions in case of non-filin# or )na)thori;ed filin# of
s)ch pleadin#s and doc)(ents or nonco(pliance with the conditions thereof. An=
&5C. E. D," $o,r'"B "*"8(#o& of r"$or+'.I7f the petition is #i%en d)e co)rse, the &)pre(e Co)rt (ay
re<)ire the ele%ation of the co(plete record of the case or specified parts thereof within fifteen A1,= days fro(
notice. A"a=
&5C. 9. R,*" (%%*#$(1*" o 1o! $#8#* (&+ $r#m#&(* $('"'.IThe (ode of appeal prescribed in this *)le
shall be applicable to both ci%il and cri(inal cases, e'cept in cri(inal cases where the penalty i(posed is
death, r"$*,'#o& %"r%",( or life i(prison(ent.
5. :I+LATI+* +0 WA;E +RDERS

D"2b1e ,ndemn,/y and ,m!,s"nmen/

REP5BLIC ACT *+. )1))

A* ACT I*CREASI*; THE PE*ALTA A*D I*CREASI*; D+5BLE I*DE$*ITA 0+R
:I+LATI+* +0 THE PRESCRIBED I*CREASES +R AD85ST$E*T I* THE WA;E RATES'
A$E*DI*; 0+R THE P5RP+SE SECTI+* TWEL:E +0 REP5BLIC ACT *5$BERED SI9TA?
SE:E* H5*DRED TWE*TA?SE:E*' +THERWISE D*+W* AS THE WA;E
RATI+*ALIFATI+* ACT

&5CT71$ 1. &ection 1" of *ep)blic Act $)(bered &i'ty-se%en h)ndred twenty-se%en is hereby
a(ended to read to as followsC
M&ection 1". Any person, corporation, tr)st, fir(, partnership, association or entity which ref)ses
or fails to pay any of the prescribed increases or ad4)st(ents in the wa#e rates (ade in
accordance with this Act shall be p)nished by a fine not less than Twenty-fi%e tho)sand pesos
AP",, >>>= nor (ore than 1ne h)ndred tho)sand pesos AP1>>, >>>= or i(prison(ent of not less
than two A"= years nor (ore than fo)r A= years, or both s)ch fine and i(prison(ent at the
discretion of the co)rtC Pro8#+"+, That any person con%icted )nder this Act shall not be entitled
to the benefits pro%ided for )nder the Probation Law.
MThe e(ployer concerned shall be ordered to pay an a(o)nt e<)i%alent to do)ble the )npaid
benefits owin# to the e(ployeesC Pro%ided, That pay(ent of inde(nity shall not absol%e the
e(ployer fro( the cri(inal liability i(posable )nder this Act.
M7f the %iolation is co((itted by a corporation, tr)st or fir(, partnership, association or any other
entity the penalty of i(prison(ent shall be i(posed )pon the entityOs responsible officers,
incl)din#, b)t not li(ited to, the president, %ice-president, chief e'ec)ti%e officer, #eneral (ana#er,
(ana#in# director or partner.M
82!,sd,%/,"n: Re-21a! C"2!/s
REP5BLIC ACT *+. 76(1

A* ACT E9PA*DI*; THE 85RISDICTI+* +0 THE $ETR+P+LITA* TRIAL C+5RTS'
$5*ICIPAL TRIAL C+5RTS' A*D $5*ICIPAL CIRC5IT TRIAL C+5RTS' A$E*DI*; 0+R
THE P5RP+SE BATAS PA$BA*SA' BL;. 12(' +THERWISE D*+W* AS THE <85DICIARA
RE+R;A*IFATI+* ACT +0 1()4< .
Page 43 of 267
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&ection 1. &ection 19 of 0atas Pa(bansa 0l#. 1"9, otherwise known as the M9)diciary
*eor#ani;ation Act of 19E>M , is hereby a(ended to read as followsC
M&ec. 19. J,r#'+#$#o& #& $#8#* $('"'. N *e#ional Trial Co)rts shall e'ercise e'cl)si%e ori#inal
4)risdictionC

MA1= 7n all ci%il actions in which the s)b4ect of the liti#ation is incapable of pec)niary esti(ationJ
MA"= 7n all ci%il actions which in%ol%e the title to, or possession of, real property, or any interest
therein, where the assessed %al)e of the property in%ol%ed e'ceeds Twenty tho)sand pesos
AP">,>>>,>>= or, for ci%il actions in Metro Manila, where s)ch %al)e e'ceeds 2ifty tho)sand pesos
AP,>, >>>.>>= e'cept actions for forcible entry into and )nlawf)l detainer of lands or b)ildin#s,
ori#inal 4)risdiction o%er which is conferred )pon the Metropolitan Trial Co)rts, M)nicipal Trial
Co)rts, and M)nicipal Circ)it Trial Co)rtsJ
MA6= 7n all actions in ad(iralty and (ariti(e 4)risdiction where the de(and or clai( e'ceeds 1ne
h)ndred tho)sand pesos AP1>>, >>>.>>= or, in Metro Manila, where s)ch de(and or clai( e'ceeds
Two h)ndred tho)sand pesos AP">>,>>>.>>=J
MA= 7n all (atters of probate, both testate and intestate, where the #ross %al)e of the estate
e'ceeds 1ne h)ndred tho)sand pesos AP1>>, >>>.>>= or, in probate (atters in Metro Manila,
where s)ch #ross %al)e e'ceeds Two .)ndred tho)sand pesos AP">>,>>>.>>=J
MA,= 7n all actions in%ol%in# the contract of (arria#e and (arital relationsJ
MA+= 7n all cases not within the e'cl)si%e 4)risdiction of any co)rt, trib)nal, person or body e'ercisin#
4)risdiction of any co)rt, trib)nal, person or body e'ercisin# 4)dicial or <)asi-4)dicial f)nctionsJ
MA7= 7n all ci%il actions and special proceedin#s fallin# within the e'cl)si%e ori#inal 4)risdiction of a
9)%enile and Do(estic *elations Co)rt and of the Co)rt of A#rarian *elations as now pro%ided by
lawJ and
MAE= 7n all other cases in which the de(and, e'cl)si%e of interest, da(a#es of whate%er kind,
attorneyOs fees, liti#ation e'penses, and costs or the %al)e of the property in contro%ersy e'ceeds
1ne h)ndred tho)sand pesos AP1>>, >>>.>>= or, in s)ch other cases in Metro Manila, where the
de(and e'cl)si%e of the abo%e-(entioned ite(s e'ceeds Two .)ndred tho)sand pesos
AP">>,>>>.>>=.M
&ec. ". &ection 6" of the sa(e law is hereby a(ended to read as followsC
M&ec. 6". J,r#'+#$#o& of M"ro%o*#(& Tr#(* Co,r', M,&#$#%(* Tr#(* Co,r' (&+ M,&#$#%(* C#r$,# Tr#(*
Co,r' #& Cr#m#&(* C('"'. N 5'cept in cases fallin# within the e'cl)si%e ori#inal 4)risdiction of
*e#ional Trial Co)rts and of the &andi#anbayan, the Metropolitan Trial Co)rts, M)nicipal Trial
Co)rts, and M)nicipal Circ)it Trial Co)rts shall e'erciseC

MA1= 5'cl)si%e ori#inal 4)risdiction o%er all %iolations of city or ()nicipal ordinances co((itted within
their respecti%e territorial 4)risdictionJ and
MA"= 5'cl)si%e ori#inal 4)risdiction o%er all offenses p)nishable with i(prison(ent not e'ceedin# si'
A+= years irrespecti%e of the a(o)nt of fine, and re#ardless of other i(posable accessory or other
penalties, incl)din# the ci%il liability arisin# fro( s)ch offenses or predicated thereon, irrespecti%e of
kind, nat)re, %al)e or a(o)nt thereofC Pro%ided, howe%er, That in offenses in%ol%in# da(a#e to
property thro)#h cri(inal ne#li#ence, they shall ha%e e'cl)si%e ori#inal 4)risdiction thereof.M
&ec. 6. &ection 66 of the sa(e law is hereby a(ended to read as followsC
M&ec. 66. J,r#'+#$#o& of M"ro%o*#(& Tr#(* Co,r', M,&#$#%(* Tr#(* Co,r' (&+ M,&#$#%(* C#r$,# Tr#(*
Co,r' #& C#8#* C('"'. N Metropolitan Trial Co)rts, M)nicipal Trial Co)rts, and M)nicipal Circ)it
Trial Co)rts shall e'erciseC

MA1= 5'cl)si%e ori#inal 4)risdiction o%er ci%il actions and probate proceedin#s, testate and intestate,
incl)din# the #rant of pro%isional re(edies in proper cases, where the %al)e of the personal
property, estate, or a(o)nt of the de(and does not e'ceed 1ne h)ndred tho)sand pesos AP1>>,
>>>.>>= or, in Metro Manila where s)ch personal property, estate, or a(o)nt of the de(and does
not e'ceed Two h)ndred tho)sand pesos AP">>,>>>.>>=, e'cl)si%e of interest, da(a#es of
whate%er kind, attorneyOs fees, liti#ation e'penses, and costs, the a(o)nt of which ()st be
specifically alle#edC Pro8#+"+, That interest, da(a#es of whate%er kind, attorneyOs fees, liti#ation
e'penses, and costs shall be incl)ded in the deter(ination of the filin# feesC Pro8#+"+, f,r!"r, That
where there are se%eral clai(s or ca)ses of actions between the sa(e or different parties,
e(bodied in the sa(e co(plaint, the a(o)nt of the de(and shall be the totality of the clai(s in all
the ca)ses of action, irrespecti%e of whether the ca)ses of action arose o)t of the sa(e or different
transactionsJ
MA"= 5'cl)si%e ori#inal 4)risdiction o%er cases of forcible entry and )nlawf)l detainerC Pro%ided, That
when, in s)ch cases, the defendant raises the <)estions of ownership in his pleadin#s and the
<)estion of possession cannot be resol%ed witho)t decidin# the iss)e of ownership, the iss)e of
ownership shall be resol%ed only to deter(ine the iss)e of possessionJ and
MA6= 5'cl)si%e ori#inal 4)risdiction in all ci%il actions which in%ol%e title to, or possession of, real
property, or any interest therein where the assessed %al)e of the property or interest therein does
not e'ceed Twenty tho)sand pesos AP">, >>>.>>= or, in ci%il actions in Metro Manila, where s)ch
assessed %al)e does not e'ceed 2ifty tho)sand pesos AP,>,>>>.>>= e'cl)si%e of interest, da(a#es
of whate%er kind, attorneyOs fees, liti#ation e'penses and costsC Pro8#+"+, That in cases of land not
declared for ta'ation p)rposes, the %al)e of s)ch property shall be deter(ined by the assessed
%al)e of the ad4acent lots.M
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&ec. . &ection 6 of the sa(e law is hereby a(ended to read as followsC
M&ec. 6. D"*".("+ J,r#'+#$#o& #& C(+('r(* (&+ L(&+ R".#'r(#o& C('"'. N Metropolitan Trial
Co)rts, M)nicipal Trial Co)rts, and M)nicipal Circ)it Trial Co)rts (ay be assi#ned by the &)pre(e
Co)rt to hear and deter(ine cadastral or land re#istration cases co%erin# lots where there is no
contro%ersy or opposition, or contested lots where the %al)e of which does not e'ceed 1ne
h)ndred tho)sand pesos AP1>>, >>>.>>=, s)ch %al)e to be ascertained by the affida%it of the
clai(ant or by a#ree(ent of the respecti%e clai(ants if there are (ore than one, or fro( the
correspondin# ta' declaration of the real property. Their decisions in these cases shall be
appealable in the sa(e (anner as decisions of the *e#ional Trial Co)rts.M

&ec. ,. After fi%e A,= years fro( the effecti%ity of this Act, the 4)risdictional a(o)nts (entioned in
&ec. 19A6=, A=, and AE=J and &ec. 66A1= of 0atas Pa(bansa 0l#. 1"9 as a(ended by this Act, shall
be ad4)sted to Two h)ndred tho)sand pesos AP">>, >>>.>>=. 2i%e A,= years thereafter, s)ch
4)risdictional a(o)nts shall be ad4)sted f)rther to Three h)ndred tho)sand pesos AP6>>,>>>.>>=C
Pro8#+"+, !o)"8"r, That in the case of Metro Manila, the abo%e-(entioned 4)risdictional a(o)nts
shall be ad4)sted after fi%e A,= years fro( the effecti%ity of this Act to 2o)r h)ndred tho)sand pesos
AP>>, >>>.>>=.
&ec. +. All laws, decrees, and orders inconsistent with the pro%isions of this Act shall be considered
a(ended or (odified accordin#ly. $!(& ro1*"' 8#r,(* *() *#1r(r0
&ec. 7. The pro%isions of this Act shall apply to all ci%il cases that ha%e not yet reached the pre-trial
sta#e. .owe%er, by a#ree(ent of all the parties, ci%il cases co#ni;able by ()nicipal and
(etropolitan co)rts by the pro%isions of this Act (ay be transferred fro( the *e#ional Trial Co)rts
to the latter. The e'ec)ti%e 4)d#e of the appropriate *e#ional Trial Co)rts shall define the
ad(inistrati%e proced)re of transferrin# the cases affected by the redefinition of 4)risdiction to the
Metropolitan Trial Co)rts, M)nicipal Trial Co)rts, and M)nicipal Circ)it Trial Co)rts.

82!,sd,%/,"n: Re-,"na1 D,!e%/"!
A!/,%1e 12). V#'#or#(* (&+ "&for$"m"& %o)"r'. Aa= The &ecretary of Labor and 5(ploy(ent or his
d)ly a)thori;ed representati%es, incl)din# labor re#)lations officers, shall ha%e access to
e(ployerOs records and pre(ises at any ti(e of the day or ni#ht whene%er work is bein#
)ndertaken therein, and the ri#ht to copy therefro(, to <)estion any e(ployee and to in%esti#ate
any fact, condition or (atter which (ay be necessary to deter(ine %iolations or which (ay aid in
the enforce(ent of this Code and of any labor law, wa#e order or r)les and re#)lations iss)ed
p)rs)ant thereto.
Ab= The pro%isions of Article "17 of this Code to the contrary notwithstandin# and in cases
where the relationship of e(ployer-e(ployee still e'ists, the &ecretary of Labor and 5(ploy(ent or
his d)ly a)thori;ed representati%es shall ha%e the power to order and ad(inister, after d)e notice
and hearin#, co(pliance with the labor standards pro%isions of this Code and other labor le#islation
based on the findin#s of labor re#)lation officers or ind)strial safety en#ineers (ade in the co)rse
of inspection, and to iss)e writs of e'ec)tion to the appropriate a)thority for the enforce(ent of
their order, e'cept in cases where the e(ployer contests the findin#s of the labor re#)lation officer
and raises iss)es which cannot be resol%ed witho)t considerin# e%identiary (atters that are not
%erifiable in the nor(al co)rse of inspection.
Ac= The &ecretary of Labor and 5(ploy(ent (ay likewise order stoppa#e of work or
s)spension of operations of any )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
safety of workers in the workplace. 3ithin twenty-fo)r ho)rs, a hearin# shall be cond)cted to
deter(ine whether an order for the stoppa#e of work or s)spension of operations shall be lifted or
not. 7n case the %iolation is attrib)table to the fa)lt of the e(ployer, he shall pay the e(ployees
concerned their salaries or wa#es d)rin# the period of s)ch stoppa#e of work or s)spension of
operation.
Ad= 7t shall be )nlawf)l for any person or entity to obstr)ct, i(pede, delay or otherwise render
ineffecti%e the order of the &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed
representati%es iss)ed p)rs)ant to the a)thority #ranted )nder this Article, and no inferior co)rt or
entity shall iss)e te(porary or per(anent in4)nction or restrainin# order or otherwise ass)(e
4)risdiction o%er any case in%ol%in# the enforce(ent orders iss)ed in accordance with this Article.
Ae= Any #o%ern(ent e(ployee fo)nd #)ilty of %iolation of, or ab)se of a)thority )nder this
Article shall, after appropriate ad(inistrati%e in%esti#ation, be s)b4ect to s)((ary dis(issal fro(
the ser%ice.
Af= The &ecretary of Labor and 5(ploy(ent (ay by appropriate re#)lations re<)ire e(ployers
to keep and (aintain s)ch e(ploy(ent records as (ay be necessary in aid of his %isitorial and
enforce(ent powers )nder this Code.
82!,sd,%/,"n: Lab"! A!b,/e!
A!/,%1e 217. J,r#'+#$#o& of L(1or Ar1#"r' (&+ !" Comm#''#o&. Aa= 5'cept as otherwise pro%ided
)nder this Code, the Labor Arbiters shall ha%e ori#inal and e'cl)si%e 4)risdiction to hear and
decide, within thirty A6>= calendar days after the s)b(ission of the case by the parties for decision
Page 45 of 267
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witho)t e'tension, 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)ralC
A1= :nfair labor practice casesJ
A"= Ter(ination disp)tesJ
A6= 7f acco(panied with a clai( for reinstate(ent, those cases that workers (ay file
in%ol%in# wa#es, rate of pay, ho)rs of work and other ter(s and conditions of
e(ploy(entJ
A= Clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es arisin# fro( the
e(ployer-e(ployee relationsJ
A,= Cases arisin# fro( any %iolation of Article "+ of this Code, incl)din# <)estions
in%ol%in# the le#ality of strikes and locko)tsJ and
A+= 5'cept clai(s for e(ployees co(pensation, social sec)rity, (edicare and (aternity
benefits, all other clai(s arisin# fro( e(ployer-e(ployee relations, incl)din# those of persons in
do(estic or ho)sehold ser%ice, in%ol%in# an a(o)nt e'ceedin# fi%e tho)sand pesos AP,, >>>.>>=,
whether or not acco(panied with a clai( for reinstate(ent.
Ab= The Co((ission shall ha%e e'cl)si%e appellate 4)risdiction o%er all cases decided by Labor
Arbiters.
Ac= 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(pany personnel policies shall be
disposed of by the Labor Arbiter by referrin# the sa(e to the #rie%ance (achinery and %ol)ntary
arbitration as (ay be pro%ided in said a#ree(ents. AAs a(ended by *A +71,=
6. WA;E E*0+RCE$E*T A*D REC+:ERA
En."!%emen/ P!"%ess
Aa= There is a report on the non-co(pliance of the e(ployer with the (ini()( wa#e law.
Ab= :pon receipt of the *e#ional Director of this 7nfor(ation, there will be an 1*D5* 12 7$&P5CT71$.
The &1L5 or the *e#ional Director.
The order of 7nspection will si(ply state that this person 7s a)thori;ed to cond)ct an 7nspection on this
date, place and ti(e.
Ac= This 7nspection a)thority will then be i(ple(ented by a Labor and 5(ploy(ent 1fficer of the D1L5. And
this person will %isit the e(ployerOs pre(ises and then cond)ct an 7nspection.
.e will 7nspect the payroll to deter(ine if indeed there was )nderpay(ent of wa#es, inspect the
e(ployerOs pre(ises, inter%iew and ask the e(ployees the(sel%es if they are indeed paid s)ch a(o)nt
of wa#es, co(pare the pay(ent records and confer with the e(ployees.
Ad= 7f the inspector finds that there 7s a %iolation or )nderpay(ent of wa#es, he will (ake an 7$&P5CT71$
*5P1*T
:s)ally e(bodied in a $1T7C5 12 7$&P5CT71$ *5&:LT&.
All %iolations that the Labor 5(ploy(ent 1fficer will find in the e(ployerOs pre(ises will be en)(erated
and placed as his findin#s in the notice.
Ae= The e(ployer 7s first infor(ed of the res)lts of the 7nspection.
Af= The e(ployer 7s #i%en the opport)nity to co(ply within 7 days or
A#= The e(ployer (ay contest the notice of inspection res)lts and raise iss)es which cannot be resol%ed
witho)t considerin# e%identiary (atters that are not %erifiable in the nor(al co)rse of inspection.
U .13 &11$T The e(ployer shall raise s)ch ob4ections d)rin# the hearin# of the case or at any ti(e after
the receipt of the notice of inspection res)lts.
Ah= 7f on the other hand, the e(ployer does not or fails to contest the notice of inspection res)lt, or fails to
co(ply with s)ch noticeC
The *e#ional Director will iss)e an 1*D5* 12 C1MPL7A$C5
The order of co(pliance will basically be based on the notice of 7nspection res)lts, so if the 7nspection
says that yo) are )nderpayin# 1> workers or 4)st payin# the( P1>>, the *D will iss)e an order of
co(pliance orderin# this ti(e the e(ployer to pay the followin# workers the followin# s)(s of (oney.
Ai= *e(edy of the e(ployer fro( the order of co(plianceC
The order of co(pliance can be <)estioned wfthin 1> calendar days.
Then the e(ployer will file a (otion for reconsideration with the *D within 7 calendar days.
7f the e(ployer files it beyond 7 days b)t not beyond 1> days, that will be considered an appeal fro( the
*D to the &1L5.
A4= 7f the e(ployer will not file a (otion for reconsideration, what will happen to the order of co(plianceT 7t
beco(es final and e'ec)tory.
The &1L5 or *D can iss)e a 3*7T 12 5D5C:T71$, then it will le%y.
P)rs)ant to *)le 69 in Ci%il Proced)re, the final 4)d#(ent can be s)b4ect of e'ec)tion and the *D can
le%y on the properties of the e(ployer to satisfy the 4)d#(ent or the order of co(pliance.
$oteC that this is if there is no obedience to the order of co(pliance or there is no contestin# done or no
(otion for reconsideration resorted to by the e(ployer in that re#ard.
Ak= 1n the other hand, if the e(ployer %alidly contests by raisin# iss)es s)pported by doc)(entary proofs
which were not considered in the co)rse of inspection ! what will happenT
Can the *D still proceed with the caseT $1.
The *D will endorse the case to the appropriate Arbitration 0ranch of the $L*C
3hyT 7t is no lon#er a s)((ary proceedin#V 7t now beco(es an ad%ersarial proceedin# which die *D is
not e<)ipped to handle. *D has no other reco)rse b)t to endorse it to the Arbitration 0ranch of the
$L*C.
No"- I #' 8"r0 #m%or(& !( 0o, 1" (1*" o $o&"' !" &o#$" of #&'%"$#o& r"',*' )#!#& !" #m" fr(m" (,!or#2"+
10 !" RULES ON DISPOSITION OF LABOR STANDARDS CASES. B"$(,'" #f 0o, f(#* or #f 0o, $o&"' 1, !"
Page 46 of 267
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)ro&. )(0, or 0o, f(#* o $o&"' # ( (**, !"& !" RD )#** !(8" &o r"$o,r'" 1, o #''," (& or+"r of $om%*#(&$". A&+
!"& 0o,r r"m"+0 !"r"for" #' &o *o&."r o $o&"' 1, o ( mo#o& for r"$o&'#+"r(#o& or %ro1(1*0 (& (%%"(* o !"
SOLE. I& $('" 0o, '#** f(#* o +o !(, !"& !( or+"r of $om%*#(&$" )#** 1"$om" f#&(* (&+ "9"$,or0 for )!#$! !"
SOLE or !" R+ for !( m("r #' &o) (,!or#2"+ o I''," ( )r# of "9"$,#o&. T!"& !( #' !" "&+ of !" $('".
:ISIT+RIAL A*D E*0+RCE$E*T P+WER
$452R*$!$43 P2W$R 24 6$AL36@SA5$3A 25 W2RB$RS
Article 1"&. ?isitorial and $nforcement Power:
6a7 T&e Se%!e/a!y ". Lab"! "! &,s d21y a2/&"!,@ed !e!esen/a/,#es' ,n%12d,n- 1ab"! !e-21a/,"n "..,%e!s'
s&a11 &a#e /" em1"ye!Ns !e%"!ds and !em,ses a/ any /,me ". /&e day "! n,-&/ w&ene#e! w"!= ,s
be,n- 2nde!/a=en /&e!e,n' and
/&e !,-&/ /" %"y /&e!e.!"m'
/" B2es/,"n any em1"yee and
In#es/,-a/e any .a%/' %"nd,/,"n "! ma//e! w&,%& may be ne%essa!y /" de/e!m,ne #,"1a/,"ns "!
w&,%& may a,d In /&e en."!%emen/ ". /&,s C"de and re#)lations iss)ed p)rs)ant thereto.
Ab= $otwithstandin# the pro%isions of Articles 1"9 and "17 of this Code to the contrary, and in cases where the
relationship of e(ployer-e(ployee still e'ists, the &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed
representati%es shall ha%e the "we! /" ,ss2e %"m1,an%e "!de!s to #i%e effect to the labor standards
pro%isions of this Code and other labor le#islation based "n /&e .,nd,n-s ". 1ab"! em1"ymen/ and
en."!%emen/ "..,%e!s "! Ind2s/!,a1 sa.e/y en-,nee!s (ade 7n the co)rse of 7nspection. The &ecretary or
his d)ly a)thori;ed representati%es shall Iss2e w!,/s ". eKe%2/,"n to the appropriate a)thority for the
enforce(ent of their orders, eK%e/ in cases where tJhe e(ployer contests the findin#s of the labor
e(ploy(ent and enforce(ent officer and raises the 7ss)es s)pported by doc)(entary proofs which were
not Considered 7n the co)rse of 7nspection. -5DC5PT71$ CLA:&5
An order 7ss)ed by the d)ly a)thori;ed representati%e of the &ecretary of Labor and 5(ploy(ent W*e#ional
DirectorX )nder this Article (ay be aea1ed to the latter. 7n case said order in%ol%es a m"ne/a!y awa!d' an
appeal by the e(ployer (ay be perfected only )pon the postin# of a cash or s)rety bond iss)ed by a
rep)table bondin# co(pany d)ly accredited by the &1L5 in the a(o)nt e<)i%alent to the (onetary award 7n
the order appealed fro(.
Ac= The &1L5 (ay likewise order s/"a-e ". w"!= or s2sens,"n ". "e!a/,"ns ". any 2n,/ "! dea!/men/
". an es/ab1,s&men/ 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 safety of workers 7n the workplace. 3ithin " ho)rs, a &ea!,n- shall
be cond)cted to deter(ine whether an order for stoppa#e of work or s)spension of operations shall be lifted
or not. 7n case the %iolation is attrib)table to the e(ployer, he shall pay the e(ployees concerned their
salaries or wa#es d)rin# the period of s)ch stoppa#e or work or s)spension of operation. X - C*1&&
*525* T1 A*T7CL5 "E+ 1$ C1$&5H:5$C5 12 &:&P5$&71$ 12 1P5*AT71$&
Ad= 7t shall be 2n1aw.21 for any person or entity to obstr)ct, i(pede, delay or otherwise render 7neffecti%e the
orders of the &1L5 or his d)ly a)thori;ed representati%es iss)ed p)rs)ant to the a)thority #ranted )nder
this Article, and no inferior co)rt or entity shall iss)e te(porary or per(anent in4)nction or !es/!a,n,n- "!de!
"! "/&e!w,se ass2me 32!,sd,%/,"n "#e! any %ase ,n#"1#,n- /&e en."!%emen/ "!de!s ,ss2ed ,n
a%%"!dan%e w,/& /&,s A!/,%1e.
6e7 Any -"#e!nmen/ em1"yee ."2nd -2,1/y ". #,"1a/,"n ".' "! ab2se ". a2/&"!,/y' 2nde! /&,s A!/,%1e s&a11'
a./e! a!"!,a/e adm,n,s/!a/,#e ,n#es/,-a/,"n' be s2b3e%/ /" s2mma!y d,sm,ssa1 .!"m /&e se!#,%e.
6.7 T&e S+LE may' by a!"!,a/e !e-21a/,"ns' !eB2,!e em1"ye!s /" =ee and ma,n/a,n s2%&
em1"ymen/ !e%"!ds as may be ne%essa!y In a,d ". &,s #,s,/"!,a1 and en."!%emen/ "we!s 2nde! /&,s
C"de.
S%"e ". /&e :,s,/"!,a1 P"we! ". /&e Se%!e/a!y ". Lab"!
:nder the %isitorial power, the &1L5 or his d)ly a)thori;ed representati%e is #i%en the ri#ht toC
617 inspect and copy pertinent records and doc)(ents,
627 inter%iew any e(ployee and
6>7 7n%esti#ate any fact, condition or (atters at the pre(ises of an e(ployer, at any ti(e of the day or ni#ht,
whene%er work is )ndertaken therein, for the p)rpose of deter(inin# whether an e(ployer is co(plyin# with
labor standards.
L: D"es /&e Lab"! C"de %"n.e! /&,s :,s,/"!,a1 P"we! /" be eKe!%,sed by /&e Re-,"na1 D,!e%/"!M
AC AES. The *e#ional Director is the d)ly a)thori;ed representati%e of the &1L5.
5nforce(ent Power on .ealthB&afety of 3orkers
Ar#$*" G:?. V#'#or#(* (&+ "&for$"m"& %o)"r. 4
Ac= The &ecretary of Labor and 5(ploy(ent (ay likewise order stoppa#e of work or s)spension of operations of any
)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 safety of workers in the workplace. 3ithin twenty-fo)r ho)rs, a
hearin# shall be cond)cted to deter(ine whether an order for the stoppa#e of work or s)spension of operations shall
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be lifted or not. 7n case the %iolation is attrib)table to the fa)lt of the e(ployer, he shall pay the e(ployees concerned
their salaries or wa#es d)rin# the period of s)ch stoppa#e of work or s)spension of operation.
This pro%ision does not refer to %iolation of (ini()( wa#e laws. 7t refers to the instance that when the
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 safety of workers in the workplace, the &1L5 can iss)e an order for the stoppa#e of
work or the s)spension of operations of any )nit or depart(ent 7n an establish(ent
I112s/!a/,"n:
W&en /&e!e ,s a 1ea= ,n a %&em,%a1 1an/' /&e!e Is &a@a!d /" /&e em1"yees. T&e S+LE %an "!de! s2sens,"n
". "e!a/,"n.
L: Is /&e "we! ". S+LE to "!de! s2sens,"n ". "e!a/,"n s,m,1a! /" A!/,%1e 2)6 "n b"na .,de
s2sens,"n ". "e!a/,"nsM
A- $1. They are +#ff"r"&. 7n Article "E+, it is the e(ployer who s)spends the operations while on the other
hand, Article 1"E speaks of s)spension by the &ecretary of Labor.
5'a(ple, for ca)ses attrib)table to the e(ployer and in the 7nterest of health and safety of the workers, the *e#ional
Director orders the s)spension of the co(panyOs operation. The lo#ical <)estion there is -3hat is the conse<)ence of
thatT 3ill the e(ployees be paid their wa#esT
7n Article "E+, for e'a(ple, if the e(ployer decides to s)spend his operations )nilaterally, will the e(ployees be
entitled to their daily wa#esT
3hat 7s bein# in<)ired in Article 1"E fe whether or not the e(ployer co(plies with labor standards laws,
r)les and re#)lations, as well as social le#islations. The power to %isit the e(ployerOs pre(ises is so
broad eno)#h as to enable the &1L5 or his d)ly a)thori;ed representati%e to (ake a findin# after
(akin# s)ch inspection. &ince what will be in%ol%ed wo)ld be in<)irin# on %iolations of labor standard
laws as well as wa#e orders, it wo)ld be i(portant for )s to know the step-by-step proced)re in the
cond)ct of inspection )nder Article 1"E. And since what is in%ol%ed wo)ld be labor standard pro%isions
s)ch as the (ini()( wa#es laws or r)les - is the e(ployer obli#ed to (aintain a payrollT @5&. The
e(ployer is obli#ed to (aintain a payroll p)rs)ant to the power of the &1L5 )nder Article 1"E Af= to
iss)e s)ch r)les and re#)lations pertinent thereto. :nder i(ple(entin# r)les, see &ection +, *)le D,
0ook 777.
HC 7n the e'ercise of the %isitorial power, can the &1L5 be interfered with by the co)rtsT
AC $1. This is p)rs)ant to Article 1"E fd=. 7f the &1L5 or the *e#ional Director, for that (atter, decides to
inspect the e(ployerOs pre(ises, then no entity can lawf)lly interfere, obstr)ct or delay the e'ercise of that a)thorityJ
otherwise they wo)ld be penali;ed )nder that pro%ision of the LC. That is how co(prehensi%e and that is how stron#
the %isitorial and enforce(ent power of the &1L5 is.
824A 51+$ S5SPE*SI+* +0 +PERATI+*S
ART. 2)6. When emloyment not deemed terminated. - The 1o&(4f/*" s)spension of the operation of a b)siness
or )ndertakin# for a period not e'ceedin# si' A+= (onths, or the f)lfill(ent by the e(ployee of a (ilitary or ci%ic d)ty
shall not ter(inate e(ploy(ent. 7n all s)ch cases, the e(ployer shall reinstate the e(ployee to his for(er position
witho)t loss of seniority ri#hts if he indicates his desire to res)(e his work not later than one A1= (onth fro( the
res)(ption of operations of his e(ployer or fro( his relief fro( the (ilitary or ci%ic d)ty.
Article "E6 speaks of a per(anent retrench(ent as opposed to a te(porary lay-off. There is no specific
pro%ision of law which treats of a te(porary retrench(ent or lay-off. To re(edy this sit)ation or fill the
hiat)s, Article "E+ (ay be applied b)t only by analo#y to set a specific period that e(ployees (ay
re(ain te(porarily laid-off or in floatin# stat)s. &i' (onths is the period set by law that the operation of
a b)siness or )ndertakin# (ay be s)spended thereby s)spendin# the e(ploy(ent of the e(ployees
concerned. The te(porary lay-off wherein the e(ployees likewise cease to work sho)ld also not last
lon#er than si' (onths. After si' (onths, the e(ployees sho)ld either be recalled to work or
per(anently retrenched followin# the re<)ire(ents of the law. 2ailin# to co(ply with this wo)ld be
tanta(o)nt to dis(issin# the e(ployees and the e(ployer wo)ld th)s be liable for s)ch dis(issal,
6S"1,.,"ro," (L 8'. NLRC, G.T.L S%or')"(r Cor%., "(H, G.R. No. GG<;@3, S"%"m1"r :>, G@@<.7
3hen the Mfloatin# stat)sM of the e(ployees lasts (ore than si' A+= (onths, they (ay be considered to
ha%e been constr)cti%ely dis(issed fro( the ser%ice. Th)s, they are entitled to the correspondin#
benefits for their separation. 6A.ro Comm"r$#(* S"$,r#0 &er%ices A."&$0, I&$. 8'. N(#o&(* L(1or
R"*(#o&' Comm#''#o&, G.R. No'. ?:?:;4:3, J,*0 ;G, G@?@.7
Disposition of Labor &tandard Cases
A Labor &tandard Case is processed ad(inistrati%ely )nder Articles 1"E and 1"9 of the LC, as
a(ended
Lab"! S/anda!ds refer to the (ini()( re<)ire(ents prescribed by e'istin# laws, r)les arid re#)lations relatin# to
wa#es, ho)rs of work, cost-of-fi%in# allowance and other (onetary and welfare benefits incl)din# occ)pational,
safety, and health standards.
:nder the present r)les, a *e#ional Director e'ercises both %isitorial and enforce(ent power o%er labor
standard cases, and is, therefore, e(powered to ad4)dicate (oney clai(s, pro%ided there still e'ists an
e(ployer-e(ployee relationship, and the findin#s of the re#ional office are not contested by the
e(ployer concerned. 6M("r&#0 C!#*+r"&J' Ho'%#(* 8'. S"$r"(r0 of L(1or (&+ R".#o&(* D#r"$or of
L(1or, G.R. No. >?@C@, J,&" ;C, G@?@.7
P)rs)ant to the pro%isions of Article ,, in relation to Article 1"EWbX of the Labor Code, the &ecretary of
Labor and 5(ploy(ent iss)ed on &epte(ber 1+, 19E7 the *)les on the Disposition of Labor &tandards
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Cases in the *e#ional 1ffices to #o%ern the enforce(ent of labor standards at the re#ional le%el. After
the 7ss)ance of those *)les, Article 1"YWbX was a(ended by *ep)blic Act $o, 776> on 9)ne ", 19:1
whose Z[7on\ are now reflected in the present Article 1"E,
Re#,sed R21es "n D,s"s,/,"n ". Lab"! S/anda!d Cases' Se!,es ". 1()7
U &ee f)ll te't AAppendi' A=
Depart(ent 1rder $o. 7-A series of 199,
U &ee f)ll te't AAppendi' 0= .*annot be found even after e;ercise of reasonable diligence/
D1L5 Me(o Circ)lar $o. >"-A series of 199"
U &ee f)ll te't AAppendi' C=
Aea1 P!"%ed2!e
An order 7ss)ed )nder this Article is appealable to the D1L5 secretary, the ad(inistrati%e s)perior of
the re#ional director.
2ollowin# the rationale of &t, Martin r)lin#, decisions of the &ecretary of Labor, s)ch as those in Articles
1"E, "69, ",9, and "+6 (aybe ele%ated initially to the CA thro)#h certiorari. W$ational 2ederation of
Labor %s. La#)es(aX
Anti-in4)nction
AR3. 1"&. ?isitorial and enforcement ower. :
Ad= 7t shall be )nlawf)l for any person or entity to obstr)ct, i(pede, delay or otherwise render 7neffecti%e the orders of
the &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%es 7ss)ed p)rs)ant to the a)thority
#ranted )nder this Article, and no 7nferior co)rt or entity shall iss)e te(porary or per(anent 7n4)nction or restrainin#
order or otherwise ass)(e 9)risdiction o%er any case 7n%ol%in# the enforce(ent orders iss)ed in accordance with
this Article.
$AI*TE*A*CE +0 E$PL+A$E*T REC+RDS
AR3. 1"&. ?isitorial and enforcement ower. :
Af= The &ecretary of Labor and 5(ploy(ent (ay, by appropriate re#)lations, re<)ire e(ployers to keep and (aintain
s)ch e(ploy(ent records as (ay be necessary in aid of his %isitorial and enforce(ent powers )nder this Code.
SI$PLE $+*EA CLAI$S A*D 85RISDICTI+*
AR3. 1"#. Recovery of wages- simle money claims and other benefits. - :pon co(plaint of any interested
party, the *e#ional Director of the Depart(ent of Labor and 5(ploy(ent or any of the d)ly a)thori;ed hearin#
officers of the Depart(ent is e(powered, thro)#h s)((ary proceedin# and after d)e notice, to hear and decide any
(atter in%ol%in# the reco%ery of wa#es and other (onetary clai(s and benefits, 7ncl)din# le#al interest, owin# to an
e(ployee or person e(ployed in do(estic or ho)sehold ser%ice or ho)sehelper )nder this Code, arisin# fro(
e(ployer-e(ployee relationsC Pro%ided, That s)ch co(plaint does not incl)de a clai( for reinstate(entC Pro%ided
f)rther, That the a##re#ate (oney clai(s of each e(ployee or ho)sehelper does not e'ceed 2i%e tho)sand pesos
AP,,>>>.>>=. The *e#ional Director or hearin# officer shall decide or resol%e the co(plaint within thirty A6>= calendar
days fro( the date of the filin# of the sa(e. Any s)( th)s reco%ered on behalf of any e(ployee or ho)sehelper
p)rs)ant to this Article shall be held 7n a special deposit acco)nt by, and shall be paid on order of, the &ecretary of
Labor and 5(ploy(ent or the *e#ional Director directly to the e(ployee or ho)sehelper concerned. Any s)ch s)(
not paid to the e(ployee or ho)sehelper beca)se he cannot be located after dili#ent and reasonable effort to locate
hi( within a period of three A6= years, shall be hdd as a special f)nd of the Depart(ent of Labor and 5(ploy(ent to
be )sed e'cl)si%ely for the a(elioration and benefit of workers.
Any decision or resol)tion of the *e#ional Director or hearin# officer p)rs)ant to this pro%ision (ay be appealed on
the sa(e #ro)nds pro%ided 7n Article ""6 of this Code, within fi%e A,= calendar days fro( receipt of a copy of said
decision or resol)tion, to the $ational Labor *elations Co((ission which shall resol%e the appeal within ten A1>=
calendar days fro( the s)b(ission of the last pleadin# re<)ired or allowed )nder its r)les.
The &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%e (ay s)per%ise the pay(ent of )npaid
wa#es and other (onetary clai(s and benefits, incl)din# le#al 7nterest, fo)nd owin# to any e(ployee or ho)sehelper
)nder this Code. AAs a(ended by &ection :, *ep)blic Act $o. +71,, March "1, 19E9=.
This is the second (ethod of the enforce(ent and reco%ery of (ini()( wa#e pro%isions, which refers
to si(ple (oney clai(s.
A!/,%1es 12) and 12( %"ma!ed
Fenerally, Art. 1"9 is (ore li(ited in scope than Art. 1"E
Art 1"& Art 1"#
e(powers the &ecretary of Labor or any Md)ly
a)thori;ed representati%e
e(powers only the re#ional director or a)thori;ed hearin#
officers
co%ers all (atters affected by the Labor Code or any
labor law
refers only to (oney clai(s and benefits
9)risdictional li(its in Art 1"9 do not apply to the
e'ercise of powers )nder Art 1"E. Par 0 of Art 1"E was
chan#ed to its present wordin# by *A 776> p)rposely to
stren#then tlie %isitorial enforce(ent power by freein# it
The re#ional directorOs a)thority )nder Art, 1"9 is s)b4ect
to fo)r re<)isitesC
1. The clai( is presented by an e(ployee or a
person e(ployed 7n do(estic or ho)sehold
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fro( the li(itations of Art 1"9, ser%ice, or a ho)sehelper.
". The clai( arises fro( e(ployer-e(ployee
relations.
6. The clai(ant does not seek reinstate(ent.
. The a##re#ate (oney clai( of each
e(ployee or ho)sehelper does not e'ceed
P,.>>>.>>.
A decision )nder Art. 1"E, on the other hand, is
ad(inistrati%e and therefore appealable to the &ecretary
of Labor who is the ad(inistrati%e s)perior of all re#ional
directors of the Depart(ent.
A decision )nder this Article, bein# ad4)dicatory in nat)re,
is appealable to the $ational Labor *elations
Co((ission A$L*C=
*ead pa#e 619 of A;)cena for elaborated e'planations of the distinctions
7f there is <)estion of reinstate(ent or if the clai(antOs de(and e'ceeds P,,>>>.>>, the labor arbiter
has 9)risdiction o%er the case, p)rs)ant to Art "17, para#raph +, e'cept clai(s for e(ployeesO
co(pensation, social sec)rity, Medicare APhilhealth= and (aternity benefits. 5%en as re#ards labor
arbiter, howe%er, e(ployer-e(ployee relation is a prere<)isite as basis of the clai(.
Articles 1"E and 1"9 are operati%e only in the conte't of e(ploy(ent relationship. A re#)lar co)rtJ not
D1L5 or $L*C, has 9)risdiction o%er clai( of an independent contractor to ad4)st contract)al fee.
Proced)re )nder Article 1"9C
a. The e(ployee files a pro-for(a co(plaint with the *e#ional Director.
b. The *e#ional Director dockets the co(plaint as si(ple (oney clai(.
c. The *e#ional Director iss)es s)((ons ser%ed )pon e(ployer Arespondent=, to#ether with the copy of the
co(pliant, and sends a $o%0 of the sa(e to the respondent.
d. The e(ployer-respondent is #i%en , calendar days to answer the co(plaint. The e(ployer can either ad(it the
alle#ations or deny it
e. After recei%in# the answer, the *e#ional Director calls for a s)((ary hearin# and decides on the (atter within
6> calendar days fro( the date of filin# of the co(plaint
f. 7f the decision is ad%erse, the e(ployer (ay appeal the decision to the $L*C within , calendar days fro( the
receipt of the copy of said decision or resol)tion. The appeal ()st confor( to the re<)ire(ents pro%ided for
)nder Article "17 and the $L*C *)les. To perfect the appeal, the e(ployer ()st post a cash or sec)rity bond.
7n the appeal fro( the *D decision to the $L*C, the a##rie%ed party has , calendar days, while in the appeal
fro( LA decision to the $L*CJ the a##rie%ed party has 1> days.
#. 2ro( the ad%erse decision of the $L*C, the e(ployer can then file a (otion for reconsideration.
h. 7f said (otion is denied, the e(ployer (ay still file a &pecial Ci%il Action for Certiorari with the Co)rt of Appeals
)nder *)le +, of the *)les of Co)rt within a period of +> days fro( receipt of the decision.
U The *e#ional Tripartite 3a#es and Prod)cti%ity 0oard A*T3P0= do not ha%e the power to pro()l#ate r)les
pro%idin# who is e'e(pted fro( (ini()( wa#e. 7t is the $ational 3a#es and Prod)cti%ity 0oard A$3PC= that
has the r)le-(akin# power to pro()l#ate r)les on e'e(ption and (ini()( wa#e fi'in#, and not the *T3P0.
Art "1,. Curisdiction of the Labor Arbiters and the *ommission. ?
O As a1!eady d,s%2ssed 2nde! #,"1a/,"n ". wa-e "!de!s
C+$PR+$ISE +0 LAB+R STA*DARD CASES
AR3. "",. *omromise a-!eemen/s. ? Any co(pro(ise settle(ent, incl)din# those in%ol%in# labor standard laws,
%ol)ntarily a#reed )pon by the parties with the assistance of the 0)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 any co)rt, shall not
ass)(e 4)risdiction o%er iss)es in%ol%ed therein e'cept in case of non-co(pliance thereof or if there is %r#m( f(+"
e%idence that the settle(ent was obtained thro)#h fra)d, (isrepresentation, or coercion.
Disp)te resol)tion thro)#h co(pro(ise is a per%adin# philosophy of Philippine labor laws. This is
e(phasi;ed 7n this Art. ""7 and it confor(s with the state(ent of basic policy in Art. "11 Aa= and the
second para#raph of Art. ""1.
The law looks with disfa%or )pon <)itclai(s and releases by e(ployees who are in%ei#led or press)red
into si#nin# the( by )nscr)p)lo)s e(ployers seekin# to e%ade their le#al responsibilities. 1n the other
hand, there are le#iti(ate wai%ers that represent a %ol)ntary settle(ent of a laborerOs clai(s that sho)ld
be respected by the co)rts as the law between the parties.
$ot all wai%ers and <)itclai(s are 7n%alid as a#ainst p)blic policy. 7f the a#ree(ent was %ol)ntarily
entered into and represents a reasonable settle(ent, it is bindin# on the parties and (ay not later be
disowned si(ply beca)se of a chan#e of (ind.
A 4)d#(ent rendered 7n accordance with a co(pro(ise a#ree(ent is not appealable and is i((ediately
e'ec)tory, )nless a (otion is filed to set aside the a#ree(ent on the #ro)nd of fra)d, (istake, or
d)ress, in which case an appeal (ay be taken a#ainst the order denyin# the (otion, 6M('"r To,r' (&+
Tr(8"* Cor%. 8'. CA, "19 &C*A 6"1J U&#"+ Ho,'#&. Cor%. 8'. D(0r#, G?G &C*A "6,.=
A co(pro(ise a#ree(ent by )nion officers ()st be a)thori;ed by the )nion (e(bers. The a)thority
()st be prod)ced in e%idence. 5ach laborer ()st a)thori;e the )nion officers to enter into a
co(pro(ise before the laborerOs ri#ht (ay be affected. 6E(#'(!(& &. m.( Man##a#awa sa L(
C(m%(&( 8'. S(rm"&o, 166 &C*A ""> W19EX,= &ee f)rther disc)ssion )nder Art. "".
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Art ")"& **. A %"m!"m,se is a contract where the parties, by (akin# reciprocal concessions, a%oid a liti#ation or
p)t an end to one already co((enced.
APPEAL PR+CED5RE
AR3. ""3. Aeal. - Decisions, awards, or orders of the Labor Arbiter are final and e'ec)tory )nless appealed to the
Co((ission by any or both parties within ten A1>= calendar days fro( receipt of s)ch decisions, awards, or orders.
&)ch appeal (ay be entertained only on any of the followin# #ro)ndsC
Aa= 7f there 7s %r#m( f(+" e%idence of ab)se of discretion on the part of the Labor ArbiterJ
Ab= 7f the decision, order or award was sec)red thro)#h fra)d or coercion, incl)din# #raft and corr)ptionJ
Ac= 7f (ade p)rely on <)estions of lawJ and
Ad= 7f serio)s errors in the findin#s of facts are raised which wo)ld ca)se #ra%e or irreparable da(a#e or in4)ry to the
appellant.
7n case of a 9)d#(ent 7n%ol%in# a (onetary award, an appeal by the e(ployer (ay be perfected only )pon the
postin# of a cash or s)rety bond iss)ed by a rep)table bondin# co(pany d)ly accredited by the Co((ission in the
a(o)nt e<)i%alent to the (onetary award 7n the 9)d#(ent appealed fro(.
7n any e%ent, the decision of the Labor Arbiter reinstatin# a dis(issed or separated enployee, insofar as the
reinstate(ent aspect is concerned, shall i((ediately be e'ec)tory, e%en pendin# appeal. The e(ployee shall either
be ad(itted back to work )nder th\ sa(e t\r(a and conditions pro%ailin# prior to hli dis(issal or separation or, at the
option of the e(ployer, (erely reinstated 7n the payroll. The postin# of a bond by the e(ployer shall not stay the
e'ec)tion for reinstate(ent pro%ided herein.
To disco)ra#e fri%olo)s or dilatory appeals, the Co((ission or the Labor Arbiter shall i(pose reasonable
penalty, incl)din# fines or cens)res, )pon the errin# parties.
7n all cases, the appellant shall f)rnish a copy of the (e(orand)( of appeal to the other party who shall file an
answer not later than ten A1>= calendar days fro( receipt thereof.
The Co((ission shall decide all cases within twenty A">= calendar days fro( receipt of the answer of the appellee.
The decision of the Co((ission shall be final and e'ec)tory after ten A1>= calendar days fro( receipt thereof by the
parties.
Any law enforce(ent a#ency (ay be dep)ti;ed by the &ecretary of Labor and 5(ploy(ent or the Co((ission in the
enforce(ent of decisions, awards or orders. AAs a(ended by &ection 1", *ep)blic Act $o. +71,, March "1, 19E9=.
U Aea1 (eans the ele%ation by an a##rie%ed party of any decision, order or award of a lower body to a hi#her
body, by (eans of a pleadin# which incl)des the assi#n(ent of errors, ar#)(ents in s)pport thereof, and the reliefs
prated for, A. (ere notice of appeal, therefore, does not constit)te the appeal as herein defined and )nderstood, and
shall not stop the r)nnin# of the period for perfectin# an appeal. A7(ple(entin# *)les, 0ook /, *)le 7, &ec. 1=
U <Pe!.e%/,"n ". an Aea1I incl)des the filin#, within the prescribed period, of the (e(orand)( of appeal
containin#, a(on# others, the assi#n(ent of errorBs, ar#)(ents in s)pport thereof, the relief so)#ht and, in
appropriate cases, postin# of an appeal bond.
PERI+DS
The 1>-day period pro%ided in Article ""6 refers o ten calendar days, not workin# days. This (eans that
&at)rdays, &)ndays and Le#al .olidays are not to be e'cl)ded, b)t incl)ded, 7n co)ntin# the 1>-day period.
3here the 1>th day is a &)nday or Le#al .oliday, the appeal can be filed on the ne't b)siness day. A&M A.r
(&+ G"&"r(* M($!#&"r#"' 8'. N(#o&(* L(1or R"*(#o&' Comm#''#o&, F.*. $o. 7E9>+, J(&,(r0 @, G@=@.7
7f the tenth day to perfect an appeal fro( the decision of the Labor Arbiter to the $L*C falls on a &at)rday, the
appeal shall be (ade on the ne't workin# day. 6A5,#&o 8K NLRC (&+ Ro1/ I&+,'r#(* Co&'r,$#o&, I&$., G.R.
No. @?GCG, S"%"m1"r', G@@;.7
There is a dear distinction between the filin# of an appeal within the re#le(entary period and its perfection. The
appeal fro( the Labor Arbiter to the Co((ission ()st b] fifed within the re#le(entary period. 0)t the appeal
(ay be perfected after that period. A&tar A&."* H(&+#$r(f 8'. $L*C and S%o,'"' Fr#1(M(', F.*. $o. 1>E91,
&epte(ber ">,199.=
The pay(ent of the appeal fee 7s by no (eans a (ere technicality b)t is an essential re<)ire(ent in the
perfection of an appeal. .owe%er, where the fee had been paid belatedly, the broader interest of 4)stice and the
desired ob4ecti%e in decidin# the case on the (erits de(and that the appeal be #i%en d)e co)rse. AC.3. Tan
Mf#. %s. $ational Labor *elations Co((ission, F.*. $o. 79,9+, 2ebr)ary 1>, 19E9.=
*)les of technicality ()st yield to the broader 7nterests of s)bstantial 9)stice. The dis(issal of an appeal on
p)rely technical #ro)nds 7s frowned )pon, AMode( 2ishin# G"(r L(1or :nion %s. $L*C, F.*. $o. ,69>7, M(40
+, 19EE.=
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ISS5ES +* APPEALE RE$EDIES
:nder &ection , Ac= of the *)les of Proced)re of the $ational Labor *elations Co((ission, the Co((ission
shall, in cases of perfected appeals, li(it 7tself to re%iewin# those 7ss)es which are raised on appeal. Those
which are not raised shall be final and e'ec)tory. The iss)es raised on appeal, howe%er, shall be open for re%iew
and any actions taken thereon by the Co((ission are within the para(eters of its 4)risdiction. 6Ro$!"
Philippines %s. $ational Labor\ *elations Co((ission, F.*. $o. E666,, 1ctober ,, 19E9.=
A party who failed to appeal on ti(e fro( the decision of Labor Arbiter (ay still file a (otion for reconsideration
of the $L*C decision. ASo+o* 8'. F#*#%#&o' Eoo, I&$., R"5,#o V".(, B"*"& Gom"2, Ar,ro Gom"2, $L*C, F.*.
$o, E7,6>, 9)ne 16, 199>.=
The decision of the Co((ission shall be final and e'ec)tory after ten calendar days fro( receipt by the parties.
The losin# party, howe%er, is not witho)t reco)rse. :nder the $ew *)les of the $ational Labor *elations
Co((ission, a party is allowed to file a (otion for reconsideration of any order, resol)tion or decision of the
Co((ission based on palpable or patent errors, pro%ided that the (otion is )nder oath and filed within ten A1>=
calendar days fro( receipt of the order, resol)tion or decision. 6P,r" Foo+' Corporation %s. $ational Labor
*elations Co((ission, F.*. $o. 7E,91, March :G,G@?@.7
7n addition, the party (ay also seasonably a%ail of the special ci%il action for certiorari )nder R,*" =< of !" R,*"'
of Co,r. The action is allowed if the trib)nal, board or officer e'ercisin# 4)dicial f)nctions has acted witho)t or in
e'cess of its 4)risdiction, or with #ra%e ab)se of discretion.
W&en and W&e!e /" 0,1e Pe/,/,"n
:nder the 1997 *)les of Ci%il Proced)re, effecti%e 9)ly 1, 1997, the petition for certiorari (ay be filed not later
than si'ty A+>= days fro( notice of the 4)d#(ent, order of resol)tion so)#ht to be assailed in the &)pre(e Co)rt '
' '. 7t (ay also be filed in the Co)rt of Appeals whether or not the sa(e is in the aid of its appellate 4)risdiction,
or in the &andi#anbayan i7f it is in aid of its 4)risdiction. A&ec. , *)le +,, *)les of Co)rt.=
0)t the sa(e &ection and *)le pro%ide that Mif Wthe petitionX in%ol%es the acts or o(issions of a <)asi-9)dicial
a#ency, and )nless otherwise pro%ided by law or WtheX *)les, the petition shall be filed and co#ni;able only by
the Co)rt of Appeals,M
&olidly b)ttressin# the CAOs 4)risdiction is the &)pre(e Co)rt r)lin# in the &t. Martin case After a discreet
analysis of the le#islati%e 7ntent 7n delineatin# 4)dicial 4)risdictions, the Co)rt Athro)#h Mr. 9)stice *e#alado=
declared that both the &)pre(e Co)rt and the Co)rt of Appeals ha%e the power to re%iew $L*C decisions.
.owe%er, the petition by certiorari sho)ld initially be filed with the Co)rt of Appeals, in line with the Principle of
hierarchy of co)rts. AS. M(r#& F,&"r(* Hom"' 8'. NLRC, G.R. No. G;C?==, S"%"m1"r G=, G@@?.=
2)rther(ore, in $ational 2ederation of Labor A$2L= %s. La#)es(a, F.*. $o. 1"6"+, March 1>, 1999, the
&)pre(e Co)rt held that challen#es a#ainst r)lin#s of the labor secretary and those actin# on his behalf, like the
director of labor relations, shall be acted )pon by the Co)rt of Appeals, which has conc)rrent 4)risdiction with the
&)pre(e Co)rt o%er petitions for certiorari.
0I*DI*;S +0 0ACTS' 0I*AL
H)asi-4)dicial a#encies like the $ational Labor *elations Co((ission ha%e ac<)ired e'pertise beca)se their
9)risdiction is confined to specific (atters. .ence, their findin#s of facts are #enerally accorded not only respect b)t
at ti(es e%en finality 7f s)ch findin#s are s)pported by s)bstantial e%idence. AM(&#*( M(&+(r#& Em%!0""' U&#o& 8'.
N(#o&(* L(1or R"*(#o&' Comm#''#o&, G.R. No. >=@?@, S"%"m1"r:G, G@?>.=
EK%e/,"ns
.owe%er, the &)pre(e Co)rt has ne%er hesitated to e'ercise its correcti%e powers and to re%erse ad(inistrati%e
decisions in the followin# casesC
A1= the concl)sion is a findin# #ro)nded on spec)lations, s)r(ises and con4ect)resJ
A"= the inferences (ade are (anifestly (istaken, abs)rd or i(possibleJ
A6= there is a #ra%e ab)se of discretionJ
A= there is a (isapprehension of factsJ
A,= the co)rt Wor <)asi-4)dicial bodyX in arri%in# at its findin#s went beyond the iss)es of the case and
the sa(e are contrary to the ad(issions of the parties or the e%idence presentedJ
A+= where respondent co((ission has s)stained irre#)lar proced)res and thro)#h the in%ocation of
s)((ary (ethods, incl)din# r)les on appeal, has affir(ed an order which tolerates a %iolation of
d)e processJ and
A7= where the ri#hts of a party were pre4)diced beca)se the ad(inistrati%e findin#s, concl)sions or
decisions were in %iolation of constit)tional pro%isions, in e'cess of stat)tory a)thority, or
9)risdiction, (ade )pon 7rre#)lar proced)re, %itiated by fra)d, 7(position or (istake, not s)pported
by s)bstantial e%idence add)ced at the hearin# or contained in the records or disclosed to the
parties, or arbitrary, or capricio)s. 6I&+,'r#(* T#m1"r Cor%. 8'. NLRC, Co&$or+#( Do' P,"1*o', "
aB% G.R. $o. S;=G=, J(&,(r0 :C, G@?@.7
*e#ardin# co(pro(ise a#ree(ents and <)itclai(s the pro%isions of and the notes to Art. ""7 are pertinent.
Le-a1 Remed,es
&pecial Ci%il Action A*)le +,, 1997 *)les of Ci%il Proced)re=
U &ee Appendi' D
Petition for *e%iew A*)le 6 and *)le ,, 1997 *)les of Ci%il Proced)re=
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U &ee Appendi' 5 ? 2
APPE*DI9 A
&epte(ber 1+, 19E7
R5LES +* THE DISP+SITI+* +0 LAB+R STA*DARDS CASES I* THE RE;I+*AL +00ICES
P)rs)ant to the pro%isions of Article , of Presidential Decree $o. ", otherwise known as the Labor Code of the Philippines, as
a(ended, the followin# r)les are hereby pro()l#ated to #o%ern the enforce(ent of labor standards pro%isions in the *e#ional
1ffices.
*:L5 7
Title, Constr)ction and Definition
&5CT71$ 1. Title of the *)les. N These *)les shall be known as the *)les on the Disposition of Labor &tandards Cases in
the *e#ional 1ffices.
&5CT71$ ". 5nforce(ent a)thority N The stat)tory basis of the a)thority of the *e#ional 1ffices to ad(inister and enforce
labor standards is fo)nd in Article 1"E Ab= of the Labor Code, as a(ended, which pro%ides thatC
MThat pro%isions of Article "17 of this Code to the contrary notwithstandin# and in cases where the relationship of e(ployer-
e(ployee still e'ists, the &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%es shall ha%e the power to order
and ad(inister, after d)e notice and hearin#, co(pliance with the labor standards pro%isions of this Code and other labor
le#islations based on the findin#s of labor re#)lations officers or ind)strial safety en#ineers (ade in the co)rse of inspection, and to
iss)e writs of e'ec)tion to the appropriate a)thority for the enforce(ent of their orders, e'cept in cases where the e(ployer contests
the findin#s of the labor re#)lations officer and raises iss)es which cannot be resol%ed witho)t considerin# e%identiary (atters that
are not %erifiable in the nor(al co)rse of inspection.M
&5CT71$ 6. A)thori;ed representati%es of the &ecretary of Labor and 5(ploy(ent. N The *e#ional Directors shall be the
d)ly a)thori;ed representati%es of the &ecretary of Labor and 5(ploy(ent in the ad(inistration and enforce(ent of labor standards
within their respecti%e territorial 4)risdictions.
&5CT71$ . /isitorial Power. N The *e#ional Directors or their a)thori;ed representati%es, shall ha%e access to e(ployersO
records and pre(ises all the ti(e of the day or ni#ht whene%er work is bein# )ndertaken therein, and the ri#ht to copy therefro(, to
<)estion any e(ployee and in%esti#ate any fact, condition or (atter which (ay be necessary to deter(ine %iolation or (ay aid in
the enforce(ent of the Labor Code and of any labor law, wa#e order or r)les and re#)lations iss)ed p)rs)ant thereto. cd
&5CT71$ ,. Constr)ction. N 7n order to carry o)t the ob4ecti%es of the Constit)tion and the Labor Code and to aid the
parties in arri%in# at a fair, 4)st, e'peditio)s and econo(ical settle(ent of labor disp)tes, these *)les shall be liberally constr)ed.
&5CT71$ +. &)ppletory application of *)les of Co)rt. N 7n the absence of any applicable pro%ision in these *)les, the
pertinent pro%isions of the *)les of Co)rt (ay be applied in a s)ppletory character.
&5CT71$ 7. Labor standardsJ definition. N As )sed in these *)les Mlabor standardsM shall refer to the Mini()(
re<)ire(ents prescribed by e'istin# laws, r)les and re#)lations and other iss)ances relatin# to wa#es, ho)rs of work, cost of li%in#
allowances and other (onetary and welfare benefits, incl)din# those set by occ)pational safety and health standards.
*:L5 77
Money Clai(s Arisin# fro( Co(plaintB*o)tine 7nspection
&5CT71$ 1. Title and caption. N The title and caption of co(plaints in%ol%in# (oney clai(s bro)#ht to the *e#ional 1ffice
arisin# fro( alle#ed %iolations of labor standards shall s)bstantially co(ply with the for( prescribed by the *e#ional 1ffice.
&5CT71$ ". Co(plaint inspection. N All s)ch co(plaints shall i((ediately be forwarded to the *e#ional Director who shall
refer the case to the appropriate )nit in the *e#ional 1ffice for assi#n(ent to a Labor &tandards and 3elfare 1fficer AL&31= for
field inspection. 3hen the field inspection does not prod)ce the desired res)lts, the *e#ional Director shall s)((on the parties for
s)((ary in%esti#ation to e'pedite the disposition of the case. The in%esti#ation shall be concl)ded within fifteen A1,= calendar days
fro( the date of the first hearin# and a proposed 1rder disposin# of the case shall be s)b(itted to the *e#ional Director within three
A6= calendar days fro( the concl)sion of the in%esti#ation.
&5CT71$ 6. Co(plaints where no e(ployer-e(ployee relationship act)ally e'ists. N 3here e(ployer-e(ployee
relationship no lon#er e'ists by reason of the fact that it has already been se%ered, clai(s for pay(ent of (onetary benefits fall
within the e'cl)si%e and ori#inal 4)risdiction of the labor arbiters. Accordin#ly, if on the face of the co(plaint, it can be ascertained
that e(ployer-e(ployee relationship no lon#er e'ists, the case whether or not acco(panied by an alle#ation of ille#al dis(issal,
shall i((ediately be endorsed by the *e#ional Director to the appropriate 0ranch of the $ational Labor *elations Co((ission.
A$L*C=.
&5CT71$ . &er%ice of notices and orders. N $otices and copies of orders shall be ser%ed on the parties or their d)ly
a)thori;ed representati%es at their last known office or ho(e addresses or if they are represented by co)nsel, thro)#h the latter.
7n case of personal ser%ice, the process ser%er shall s)b(it his ret)rn within se%enty-two A7"= ho)rs fro( date of ser%ice statin#
le#ibly in the ret)rn his na(e, the (ode of ser%ice, the na(es of the a)thori;ed persons ser%ed and the date of act)al receipt of
doc)(ent. 7f no ser%ice was effected, the ser%in# officer shall state in ret)rn the reason therefor. The ret)rn shall for( part o the
records of the case.
&5CT71$ ,. 7nspection report. N 3here the case is assi#ned to a L&31 for inspection, the latter shall cond)ct the
necessary in%esti#ation and s)b(it a report thereof to the *e#ional Director, thro)#h the Chief of the Labor &tandards 5nforce(ent
Di%ision AL&5D=, within twenty-fo)r A"= ho)rs after the in%esti#ation or within a reasonable period as (ay be deter(ined by the
*e#ional Director. The report shall specify the %iolations disco%ered, if any, to#ether with his reco((endations and co(p)tation of
the a(o)nt d)e each worker.
&5CT71$ +. Co%era#e of co(plaint inspection. N A co(plaint inspection shall not be li(ited to the specific alle#ations or
%iolations raised by the co(plainantsBworkers b)t shall be a thoro)#h in<)iry into and %erification of the co(pliance by e(ployer
with e'istin# labor standards and shall co%er all workers si(ilarly sit)ated.
&5CT71$ 7. *estit)tion. N
a= 3here the e(ployer has a#reed to (ake the necessary restit)tion of %iolations disco%ered in the co)rse of inspection,
s)ch restit)tion (ay be effected at the plant-le%el within A,= calendar days fro( receipt of the inspection res)lts by the e(ployer or
his a)thori;ed representati%eJ
b= Plant-le%el restit)tionOs (ay be effected for (oney clai(s not e'ceedin# 2ifty Tho)sand AP,>,>>>.>>=. A report of the
restit)tion shall be i((ediately s)b(itted to the *e#ional Director for %erification and confir(ation. 7n case the *e#ional Director
finds that the restit)tion effected at the plant-le%el are not in order, he (ay direct the L&5D Chief to check on the correctness of the
restit)tion reportJ
c= *estit)tion in e'cess of the afore(entioned a(o)nt shall be effected at the *e#ional 1ffice or at the worksite s)b4ect to
the prior appro%al of the *e#ional Director.
&5CT71$ E. Co(pro(ise a#ree(ent. N &ho)ld the parties arri%e at an a#ree(ent as to the whole or part of the disp)te,
said a#ree(ent shall be red)ced in writin# and si#ned by the parties in the presence of the *e#ional Director or his d)ly a)thori;ed
representati%e.
&5CT71$ 9. :nclai(ed a(o)nt. N The *e#ional Director shall hold in tr)st )nder a special acco)nt any )nclai(ed a(o)nt
for and in behalf of the workers. Any a(o)nt not clai(ed or collected by the workers within a period of two A"= years fro( the ti(e of
restit)tion shall be held as a special f)nd of the Depart(ent of Labor and 5(ploy(ent to be )sed e'cl)si%ely in the ad(inistration
and enforce(ent of labor laws pro%ided in Article 1"9 of the Labor Code.
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&5CT71$ 1>. 2ollow-)p inspection. N After the e(ployer has s)b(itted proof of co(pliance with reported %iolations, a follow-
)p %erification inspection shall forthwith be cond)cted if restit)tion is effected in the absence of the L&31.
&5CT71$ 11. .earin#. N 3here no proof of co(pliance is s)b(itted by the e(ployer after se%en A7= calendar days fro(
receipt of the inspection res)lts, the *e#ional Director shall s)((on the e(ployer and the co(plainants to a s)((ary in%esti#ation.
7n re#)lar ro)tine inspection cases howe%er, s)ch in%esti#ation shall be cond)cted where no co(plete field in%esti#ation can be
(ade for reasons attrib)table to the fa)lt of the e(ployer or his representati%es, s)ch as those b)t not li(ited to instances when the
field inspectors are denied access to the pre(ises, e(ploy(ent records, or workers of the e(ployer.
&5CT71$ 1". $at)re of proceedin#s. N The proceedin#s before the *e#ional 1ffice shall be s)((ary and non-liti#io)s in
nat)re. &)b4ect to the re<)ire(ents of d)e process, the technicalities of law and proced)re and the r)les #o%ernin# ad(issibility and
s)fficient of e%idence obtainin# in the co)rts of law shall not strictly apply thereto. The *e#ional 1ffice (ay, howe%er, a%ail itself of
all reasonable (eans to ascertain the facts of the contro%ersy speedily and ob4ecti%ely, incl)din# oc)lar inspection and e'a(ination
of well infor(ed persons. &)bstantial e%idence, whene%er necessary shall be s)fficient to s)pport a decision or order.
&5CT71$ 16. Prohibited acts. N 7t shall be )nlawf)l for any person or entity to obstr)ct, i(pede, delay or otherwise render
ineffecti%e the 1rder of the &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%es iss)ed p)rs)ant to the
a)thority #ranted )nder these *)les, and no interior co)rt or entity shall iss)e te(porary or per(anent in4)nction or restrainin# order
or otherwise ass)(e 4)risdiction o%er any case in%ol%in# the enforce(ent orders iss)ed in accordance with these *)les.
The fore#oin# notwithstandin#, the responsible party, be it the worker, )nion, e(ployer, or the a)thori;ed representati%es of any of
the fore#oin# shall be s)b4ect to ad(inistrati%e, sanctions as deter(ined by the &ecretary or the *e#ional Director.
&5CT71$ 1. 2ail)re to appear. N 3here the e(ployer or the co(plainant fails or ref)ses to appear d)rin# the in%esti#ation,
despite proper notice, for two A"= consec)ti%e hearin#s witho)t 4)stifiable reasons, the hearin# officer (ay reco((end to the
*e#ional Director the iss)ance of a co(pliance order based on the e%idence at hand or an order of dis(issal of the co(plaint, as
the case (ay be.
&5CT71$ 1,. Postpone(ent of hearin#. N The parties and their co)nsel or representati%es appearin# before the *e#ional
1ffice shall be prepared for contin)o)s hearin#s. Postpone(ents shall be allowed only )pon (eritorio)s #ro)nds and shall be
li(ited to not (ore than two A"= postpone(ents b)t in no case to e'ceed a total of ten A1>= calendar days. 7n the e%ent of s)ch
postpone(ents, the *e#ional 1ffice shall set two (ore dates of hearin# in ad%ance.
&5CT71$ 1+. *ecords of proceedin#s. N The proceedin#s before the *e#ional 1ffice need not be recorded by
steno#raphers. The hearin# officer shall, howe%er, (ake a written s)((ary of the proceedin#s incl)din# the s)bstance of the
positions of the parties and the e%idence presented which shall for( part of the records of the case. The written s)((ary shall be
si#ned by the parties.
&5CT71$ 17. Motion to dis(iss. N Any (otion to dis(iss a co(plaint on the #ro)nds that the *e#ional 1ffice has no
4)risdiction o%er the co(plaint or that the ca)se of action is barred by prior 4)d#(ent or by prescription, shall be i((ediately acted
)pon by the *e#ional Director if the facts stron#ly indicate dis(issal. Any (otion to dis(iss with no s)ch indication shall be
disposed of only in the final deter(ination of the case on the (erits.
&5CT71$ 1E. Co(pliance order. N 7f the *e#ional Director finds after hearin# that %iolations ha%e been co((itted, he shall
iss)e an 1rder directin# the e(ployer to restit)te the a(o)nt d)e the workers or instit)te other correcti%e (eas)res within ten A1>=
calendar days )pon receipt of the 1rder and to s)b(it proof of co(pliance. The 1rder shall specify the a(o)nt d)e each worker
shall be incl)de the co(p)tations on which the 1rder was based.
&5CT71$ 19. Motion for reconsideration. N The a##rie%ed party (ay file a (otion for reconsideration of the 1rder of the
*e#ional 1ffice within se%en A7= calendar days fro( receipt by hi( of a copy of said 1rder.
The *e#ional Director shall resol%e the (otion for reconsideration within ten A1>= calendar days fro( receipt thereof. A (otion for
reconsideration filed beyond the se%en-day re#le(entary period shall be treated as an appeal if filed within the ten-day re#le(entary
period for appeal, b)t s)b4ect to the re<)ire(ents for the perfection of an appeal.
$o second (otion for reconsideration shall be entertained in any case.
&5CT71$ ">. Disposition of ro)tine inspection cases. N The disposition of re#)lar ro)tine inspection cases shall s)bstantially
confor( with the pro%isions of this *)le.
*:L5 777
5ndorse(ent of Cases to the $ational Labor *elations Co((ission A$L*C=
&5CT71$ 1. Contested cases. N
a= 7n cases where the e(ployer contests the findin#s of the Labor &tandards and 3elfare 1fficers and the iss)es cannot be
resol%ed witho)t considerin# e%identiary (atters that are not %erifiable in the nor(al co)rse of inspection, the *e#ional Director shall
endorse s)ch case to the appropriate Arbitration 0ranch of the $ational Labor *elations Co((issionJ
b= The e(ployer shall raise s)ch ob4ections d)rin# the hearin# of the case or at any ti(e after receipt of the notice of
inspection res)lts. The iss)e of whether or not the case shall be endorsed to the $L*C shall be resol%ed by the *e#ional Director in
the final disposition of the case.
&5CT71$ ". Labor &tandards and 3elfare 1fficers AL&31s= as witnesses. N 7n cases that ha%e been endorsed to the
$L*C, the L&31s who participated in the in%esti#ation shall (ake the(sel%es a%ailable as witness in the proceedin#s before the
Labor Arbiters concerned.
*:L5 7/
Appeals
&5CT71$ 1. Appeal. N The 1rder of the *e#ional Director shall be final and e'ec)tory )nless appealed to the &ecretary of
Labor and 5(ploy(ent within ten A1>= calendar days fro( receipt thereof.
&5CT71$ ". Fro)nds for appeal. N The a##rie%ed party (ay appeal to the &ecretary the 1rder of the *e#ional Director on
any of the followin# #ro)ndsC
a= there is a pri(a facie e%idence of ab)se of discretion on the part of the *e#ional DirectorJ
b= the 1rder was sec)red thro)#h fra)d, coercion or #raft and corr)ptionJ
c= the appeal is (ade p)rely on <)estions of lawJ or
d= serio)s errors in the findin#s of facts were co((itted which, if not corrected, wo)ld ca)se #ra%e and irreparable da(a#e
or in4)ry to the appellant.
&5CT71$ 6. 3here to file. N The appeal shall be filed in fi%e A,= le#ibly typewritten copies with the *e#ional 1ffice which
iss)ed the 1rder. &)b4ect to the i((ediately s)cceedin# section, the appeal shall not be dee(ed perfected if it is filed with any
other office or entity.
&5CT71$ . *e<)isites of appeal. N
a= The appeal shall be filed within the re#le(entary period as pro%ided in &ection 1 of this *)le. 7t shall be )nder oath with
proof of ser%ice of a copy thereof to the other party and shall be acco(panied by a Me(orand)( of Appeal which shall state the
date appellant recei%ed the 1rder and the #ro)nds relied )pon and ar#)(ents in s)pport thereofJ
b= The appellee (ay file with the *e#ional 1ffice his reply or opposition to the appeal within ten A1>= calendar days fro(
receipt thereof. 2ail)re on the part of the appellee to file his reply or opposition within the said period shall be constr)ed as a wai%er
on his part to file the sa(e.
&5CT71$ ,. Trans(ittal of records on appeal. N 3ithin three A6= calendar days after the filin# of the reply or opposition of
the appellee or after the e'piration of the period to file the sa(e, the entire records of the case, to#ether with the Me(orand)( of
Appeal, shall be trans(itted by the *e#ional 1ffice concerned to the 1ffice of the &ecretary of Labor and 5(ploy(ent.
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&5CT71$ +. *ecords of case. N The records of the case shall contain, a(on# others, a co(plete narration of what
transpired in the conferenceBhearin# in the for( of (in)tes incl)din# all ori#inal pleadin#s, notices, proof of ser%ice of the decision or
order and other papers which shall all be consec)ti%ely n)(bered. 1nly records of cases on appeal, properly n)(bered with
co(plete (in)tes, shall be accepted by the 1ffice of the &ecretary of Labor and 5(ploy(ent.
&5CT71$ 7. 2ri%olo)sBdilatory appeals. N To disco)ra#e fri%olo)s or dilatory appeals, the &ecretary of Labor and
5(ploy(ent (ay i(pose a reasonable penalty, incl)din# fine or cens)re, )pon the errin# parties.
*:L5 /
5'ec)tion
&5CT71$ 1. 7ss)ance of writ. N
a= 7f no appeal is perfected within the re#le(entary period as pro%ided in *)le / of these *)les, as e%idenced by proof of
ser%ice, the *e#ional Director shall, (ot) proprio or )pon proper (otion by any interested party, iss)e the writ of e'ec)tion which
shall be ser%ed by the *e#ional &heriff. 7n the enforce(ent of the writ of e'ec)tion, the assistance of the law enforce(ent
a)thorities (ay be so)#htJ
b= A writ of e'ec)tion (ay be recalled s)bse<)ent to its iss)ance, if it is shown that an appeal has been perfected in
accordance with these *)les.
&5CT71$ ". 5'ec)tion before perfection of appeal or pendin# appeal. N D)rin# the period of appeal and before an appeal is
perfected, or d)rin# the pendency of an appeal, e'ec)tion (ay, )pon proper (otion, also iss)e where it is shown that co(pliance
with the order of the *e#ional Director cannot be sec)red )nless this is done. The writ (ay be stayed at the instance of the losin#
party by the filin# of a s)persedeas bond in an a(o)nt which is ade<)ate to protect the interests of the pre%ailin# party, s)b4ect to
the appro%al of the *e#ional Director before the perfection of the appeal, or the &ecretary of Labor and 5(ploy(ent d)rin# the
pendency of the appeal.
&5CT71$ 6. 5'ec)tion after (otion for reconsideration. N 3here a (otion for the *econsideration of the co(pliance order
is filed in accordance with *)le 77 of these *)les, the co(pliance order shall be e'ec)tory after ten A1>= calendar days fro( receipt
of the resol)tion of s)ch Motion.
&5CT71$ . 5nforce(ent of writ. N 7n enforcin# a writ of e'ec)tion, the sheriff or other officer actin# as s)ch shall be #)ided
by the pro%isions of *)le 69 of the *)les of Co)rt or the &heriffOs Man)al and (ay a%ail of s)ch other (eans as (ay be necessary
in the e'ec)tion thereof.
&5CT71$ ,. 2inality of decisions of the &ecretary of Labor and 5(ploy(ent. N The decisions, orders or resol)tions of the
&ecretary of Labor and 5(ploy(ent shall beco(e final and e'ec)tory after ten A1>= calendar days fro( receipt thereof. 3ithin three
A6= calendar days fro( receipt of the records of the case, the *e#ional Director shall iss)e a writ of e'ec)tion to enforce the order or
decision of the &ecretary.
The filin# of a petition for certiorari before the &)pre(e Co)rt shall not stay the e'ec)tion of the order or decision )nless the
a##rie%ed party sec)res a te(porary restrainin# order fro( the Co)rt within fifteen A1,= calendar days fro( the date of finality of the
order or decision or posts a s)persedeas bond in an a(o)nt which is ade<)ate to protect the interests of the pre%ailin# party s)b4ect
to the appro%al of the &ecretary.
*:L5 /7
.ealth and &afety Cases
&5CT71$ 1. 7nspection report. N 7n occ)pational safety and health inspection, the L&31 shall i((ediately or within twenty-
fo)r A"= ho)rs after the inspectionBin%esti#ation s)b(it his report to the *e#ional Director thr) the L&5D Chief specifyin# the
%iolations disco%ered and his reco((endations, e'cept when the s)b(ission of a report within the period cannot be (ade of
reasons beyond the control of the L&31.
&5CT71$ ". Correction in i((inent dan#er cases. N 3hen the e(ployer is willin# to (ake the necessary rectification, the
sa(e (ay be effected at the plant-le%el within twenty-fo)r A"= ho)rs in cases where the conditions obtainin# in the workplace pose
#ra%e and i((inent dan#er to the li%es and health of the workers andBor property of the e(ployer, e.#., boiler t)be leaka#eJ
defecti%e safety %al%esJ press)re #a)#es and water col)(nJ weak (achinery fo)ndationsJ and other analo#o)s circ)(stances.
&5CT71$ 6. $on-i((inent dan#er cases. N 3here the condition is not of the type fallin# )nder &ection " of this *)le, e. #.,
poor %entilation, ho)sekeepin#, inade<)ate personnel protecti%e e<)ip(ent and other analo#o)s circ)(stances, the L&31 shall
deter(ine reasonable periods of co(pliance dependin# on the #ra%ity of the ha;ards needin# corrections or the period deter(ine
reasonable periods of co(pliance dependin# on the #ra%ity of the ha;ards needin# corrections or the period needed to co(e into
co(pliance with occ)pational safety and health standards.
&5CT71$ . 3ork &toppa#e. N
a= The L&31 shall incl)de in his report a reco((endation for the iss)ance of an 1rder of stoppa#e of work or s)spension
of operation of any )nit or depart(ent of the establish(ent if there e'ists in the workplace a condition that poses #ra%e and
i((inent dan#er to the health and safety of the workers which cannot be corrected. 5%en before he s)b(its his reco((endation to
the *e#ional Director, the L&31 shall notify and confer with the e(ployer re#ardin# the res)lts of the inspection and reco((end
the instit)tion of re(edial (eas)resJ
b= The *e#ional Director (ay, )pon the reco((endation of the L&31 and the L&5D Chief, i((ediately iss)e the
appropriate 1rder of stoppa#e or s)spension of operation to#ether with the notice of hearin#.
&5CT71$ ,. .earin#. N 7((ediately or within twenty-fo)r A"= ho)rs fro( the iss)ance of the 1rder of stoppa#e of
operation or s)spension, a hearin# shall be cond)cted with the assistance of the L&31 concerned to deter(ine whether the 1rder
for the stoppa#e of work or s)spension shall be lifted or not. The proceedin#s shall be ter(inated within se%en-two A7"= ho)rs and
copy of s)ch 1rder or resol)tion shall be i((ediately f)rnished the &ecretary of Labor and 5(ploy(ent. 7n case the %iolation is
attrib)table to the fa)lt of the e(ployer, the latter shall pay his workers all the (onetary benefits to which they are entitled d)rin# the
period of s)ch stoppa#e or s)spension of work.
&5CT71$ +. *e%iew by the &ecretary.
a= The &ecretary at his own initiati%e or )pon the re<)est of the e(ployer andBor e(ployee, (ay re%iew the order of the
*e#ional Director which shall be i((ediately final and e'ec)tory )nless stayed by the &ecretary )pon postin# by the e(ployer of a
reasonable cash or perfor(ance bond as fi'ed by the *e#ional DirectorJ
b= 7n aid of his re%iew powers, the &ecretary (ay direct the 0)rea) of 3orkin# Conditions to e%al)ate the findin#s or order of
the *e#ional Director. The 1rder of the &ecretary shall be final and e'ec)tory.
&5CT71$ 7. 1ther (eas)res to sec)re co(pliance. N The *e#ional Director, in addition to (eas)res a%ailable to hi( to
sec)re co(pliance with labor standards, partic)larly those in%ol%in# technical safety and #eneral occ)pational safety standards,
(ay f)rnish a copy of the inspection findin#s to the ins)rance co(pany of the e(ployer, the power co(pany, the ()nicipal
a)thorities which iss)e b)siness licensesBper(its, the labor )nion in the enterprise concerned, and to other #o%ern(ent offices to
f)rther pers)ade %ol)ntary co(pliance with e'istin# labor standards.
*:L5 /77
Feneral Pro%isions
&5CT71$ 1. 2inal co(pliance order. N 3here a co(pliance order iss)ed by a *e#ional Director on a case has beco(e
final, no entity or official of the Depart(ent shall entertain or re-open s)ch case for the p)rpose of re-liti#atin# the sa(e case.
&5CT71$ ". *epeal of prior inconsistent iss)ances. N The pro%isions of e'istin# r)les, re#)lations, policy instr)ctions, and
other iss)ances which are inconsistent with these *)les are hereby repealed or a(ended accordin#ly.
Page 55 of 267
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BATCH 2008 (Rm.228)
&5CT71$ 6. 5ffecti%ity. N These *)les shall take effect fifteen A1,= days after anno)nce(ent of their adoption in
newspapers of #eneral circ)lation.
Aend,K C
$E$+RA*D5$ CIRC5LAR *+. 42?A
S5B8ECT : D,s"s,/,"n ". Lab"! S/anda!ds Lab"! Cases 5nde! A!/,%1e 12)6b7 ". /&e Lab"! C"de #,s?a?#,s
Se!#and"sN In%. #s. Se%!e/a!y ". Lab"!' e/ a1.' 6;.R' *". L?)5)447' 82ne 5' 1((1
2)rther to Me(orand)( Circ)lar $o. >" iss)ed on "6 9)ly 1991 and, in order to (ini(i;e proced)ral delays and other technical
i(pedi(ents in the resol)tion of labor standard cases, the followin# additional #)idelines are hereby iss)ed.
1. 7n ro)tine inspection cases when endorse(ent or referral to the appropriate *e#ional Arbitration 0ranch A*A0= of the
$ational *elations Co((ission A$L*C= is warranted p)rs)ant to the decision of the &)pre(e Co)rt in the &5*/A$D1
case, the re#ional 1ffice shall e'ert all efforts in ha%in# the workers in%ol%ed instit)te a co(plaint either by the(sel%es if
they are not or#ani;ed or thro)#h their )nion if they are or#ani;ed before the endorse(ent or referral is (ade. The
co(plaint, s)fficient in for( and s)bstance shall be attached to the referral.
". 7f the workers or the )nion is not willin# to instit)te a co(plaint the *e#ional 1ffice shall endea%or to identify so(e of the
workers who (ay be s)((oned by the *A0 and who can represent the workers s)b4ect of the ro)tine inspection. The
na(es and addresses of said workers shall be attached to the referral.
6. 7n all cases, the referral shall be acco(panied by the findin#s of the *e#ional 1ffice as contained in the narrati%e report of
the inspection proceedin# by the Labor and 5(ploy(ent 1fficer concerned incl)din# an indication of the e(ploy(ent
records e'a(ined by the L51, 7.5., payrolls, payslips, ti(e records, etc.J the basis of co(p)tation, s)((ary of inter%iews,
if any as well as the na(es and address of the worker in%ol%ed. cdt
. 7n case of an appeal fro( the order of the *e#ional Director or d)ly a)thori;ed hearin# officer #rantin# a (onetary award
to the workers, )nder Art. 1"9 of the Labor Code of the Philippines, as a(ended, the trans(ittal of the case record to the
$L*C shall be acco(panied by a state(ent of the a(o)nt of the award, which shall be the basis of the co(p)tation of
the cash or s)rely bond that is re<)ired to be posted by the e(ployer in order to perfect the appeal.
,. A (otion for reconsideration shall be treated as an appeal.
+. :pon filin# of the appeal the *e#ional Director or the d)ly a)thori;ed .earin# 1fficer loses 4)risdiction on the case and is
witho)t a)thority to r)le or act in any (anner on the appeal or (otion for reconsideration filed by the a##rie%ed party
e'cept to trans(it forth with the case record to the $L*C.
2or strict co(pliance by all concerned.
Aend,K D
*:L5 +, Certiorari, Prohibition and Manda()s
&5CT71$ 1. Petition for certiorari. N 3hen any trib)nal, board or officer e'ercisin# 4)dicial or <)asi-4)dicial f)nctions has
acted witho)t or in e'cess of its or his 4)risdiction, or with #ra%e ab)se of discretion a(o)ntin# to lack or e'cess of 4)risdiction, and
/&e!e ,s n" aea1' "! any 1a,n' seedy' and adeB2a/e !emedy ,n /&e "!d,na!y %"2!se ". 1aw' a person a##rie%ed thereby (ay
file a %erified petition in the proper co)rt, alle#in# the facts with certainty and prayin# that 4)d#(ent be rendered ann)llin# or
(odifyin# the proceedin#s of s)ch trib)nal, board or officer, and #rantin# s)ch incidental reliefs as law and 4)stice (ay re<)ire.
The petition shall be acco(panied by a certified tr)e copy of the 4)d#(ent, order or resol)tion s)b4ect thereof, copies of all
pleadin#s and doc)(ents rele%ant and pertinent thereto, and a sworn certification of non-for)( shoppin# as pro%ided in the
para#raph of section 6, *)le +. A1a=
&5CT71$ ". Petition for prohibition. N 3hen the proceedin#s of any trib)nal, corporation, board, officer or person, whether
e'ercisin# 4)dicial, <)asi-4)dicial or (inisterial f)nctions, are witho)t or in e'cess of its or his 4)risdiction, or with #ra%e ab)se of
discretion a(o)ntin# to lack or e'cess of 4)risdiction, and there is no appeal or any other plain, speedy, and ade<)ate re(edy in the
ordinary co)rse of law, a person a##rie%ed thereby (ay file a %erified petition in the proper co)rt, alle#in# the facts with certainty
and prayin# that 4)d#(ent be rendered co((andin# the respondent to desist fro( f)rther proceedin#s in the action or (atter
specified therein, or otherwise #rantin# s)ch incidental reliefs as law and 4)stice (ay re<)ire.
The petition shall likewise be acco(panied by a certified tr)e copy of the 4)d#(ent, order or resol)tion s)b4ect thereof, copies of all
pleadin#s and doc)(ents rele%ant and pertinent thereto, and a sworn certification of non-for)( shoppin# as pro%ided in the third
para#raph of section 6, *)le +. A"a=
&5CT71$ 6. Petition for (anda()s. N 3hen any trib)nal, corporation, board, officer or person )nlawf)lly ne#lects the
perfor(ance of an act which the law specifically en4oins as a d)ty res)ltin# fro( an office, tr)st, or station, or )nlawf)lly e'cl)des
another fro( the )se and en4oy(ent of a ri#ht or office to which s)ch other is entitled, and there in no other plain, speedy and
ade<)ate re(edy in the ordinary co)rse of law, the person a##rie%ed thereby (ay file a %erified petition in the proper co)rt, alle#in#
the facts with certainty and prayin# that 4)d#(ent be rendered co((andin# the respondent, i((ediately or at so(e other specified
by the co)rt, to do the act re<)ired to be done to protect the ri#hts of the petitioner, and to pay the da(a#es s)stained by the
petitioner by reason of the wron#f)l acts of the respondent.
The petition shall also contain a sworn certification of non-for)( shoppin# as pro%ided in the third para#raph of section 6, *)le +.
A6a=
&5CT71$ . 3here petition filed. N The petition (ay be filed n"/ 1a/e! /&an s,K/y 6647 days .!"m n"/,%e ". /&e 32d-men/'
"!de! "! !es"12/,"n s"2-&/ /" be assa,1ed in the &)pre(e Co)rt or, if it relates to the acts or o(issions of a lower co)rt or of a
corporation, board, officer or person, in the *e#ional Trial Co)rt e'ercisin# 4)risdiction o%er the territorial area as defined by the
&)pre(e Co)rt. 7t (ay also be filed in the Co)rt of Appeals whether or not the sa(e is in aid of its appellate 4)risdiction, or in the
&andi#anbayan if it is in aid of its 4)risdiction. 7f it in%ol%es the acts or o(issions of a <)asi-4)dicial a#ency, and )nless otherwise
pro%ided by law or these *)les, the petition shall be filed in and co#ni;able only by the Co)rt of Appeals. Aa=
&5CT71$ ,. *espondents and costs in certain cases. N 3hen the petition filed relates to the acts or o(issions of a 4)d#e,
co)rt, <)asi-4)dicial a#ency, trib)nal, corporation, board, officer or person, the petitioner shall 4oin, as pri%ate respondent or
respondents with s)ch p)blic respondent or respondents, the person or persons interested in s)stainin# the proceedin#s in the
co)rtJ and it shall be the d)ty of s)ch pri%ate respondents to appear and defend, both in his or their own behalf and in behalf of the
p)blic respondent or respondents affected by the proceedin#s, and the costs awarded in s)ch proceedin#s in fa%or of the petitioner
shall be a#ainst the pri%ate respondents only, and not a#ainst the 4)d#e, co)rt, <)asi-4)dicial a#ency, trib)nal, corporation, board,
officer or person i(pleaded as p)blic respondent or respondents.
:nless otherwise specifically directed by the co)rt where the petition is pendin#, the p)blic respondents shall not appear in or file an
answer or co((ent to the petition or any pleadin# therein. 7f the case is ele%ated to a hi#her co)rt by either party, the p)blic
respondents shall be incl)ded therein as no(inal parties. .owe%er, )nless otherwise specifically directed by the co)rt, they shall not
appear or participate in the proceedin#s therein. A,a=
&5CT71$ +. 1rder to co((ent. N 7f the petition is s)fficient in for( and s)bstance to 4)stify s)ch process, the co)rt shall
iss)e an order re<)irin# the respondent or respondents to co((ent on the petition within ten A1>= days fro( the receipt of a copy
thereof. &)ch order shall be ser%ed on the respondents in s)ch (anner as the co)rt (ay direct, to#ether with a copy of the petition
and any anne'es thereto.
7n petitions for certiorari before the &)pre(e Co)rt and the Co)rt of Appeals, the pro%isions if section ", *)le ,+, shall be obser%ed.
0efore #i%in# d)e co)rse thereto, the co)rt (ay re<)ire the respondents to file their co((ent to, and not a (otion to dis(iss, the
Page 56 of 267
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BATCH 2008 (Rm.228)
petition. Thereafter, the co)rt (ay re<)ire the filin# of a reply and s)ch other responsi%e or other pleadin#s as it (ay dee(
necessary and proper. A+a=
&5CT71$ 7. 5'peditin# proceedin#sJ in4)ncti%e relief . N The co)rt in which the petition is filed (ay iss)e orders e'peditin#
the proceedin#s, and it may a1s" -!an/ a /em"!a!y !es/!a,n,n- "!de! "! a w!,/ ". !e1,m,na!y ,n32n%/,"n ."! /&e !ese!#a/,"n
". /&e !,-&/s ". /&e a!/,es pendin# s)ch proceedin#s. The petition shall not interr)pt the co)rse of the principal case )nless a
te(porary restrainin# order or a writ of preli(inary in4)nction has been iss)ed a#ainst the p)blic respondent fro( f)rther proceedin#
in the case. A7a=
&5CT71$ E. Proceedin#s after co((ent is filed. N After the co((ent or other pleadin#s re<)ired by the co)rt are filed, or
the ti(e for the filin# thereof has e'pired, the co)rt (ay hear the case or re<)ire the parties to s)b(it (e(oranda. 7f after s)ch
hearin# or s)b(ission of (e(oranda or the e'piration of the period for the filin# thereof the co)rt finds that the alle#ations of the
petition are tr)e, it shall render 4)d#(ent for the relief prayed for or to which the petitioner is entitled.
T&e %"2!/' &"we#e!' may d,sm,ss /&e e/,/,"n ,. ,/ .,nds /&e same /" be a/en/1y w,/&"2/ me!,/' !"se%2/ed man,.es/1y ."!
de1ay' "! /&a/ /&e B2es/,"ns !a,sed /&e!e,n a!e /"" 2ns2bs/an/,a1 /" !eB2,!e %"ns,de!a/,"n. AEa=
&5CT71$ 9. &er%ice and enforce(ent of order or 4)d#(ent. N A certified copy of the 4)d#(ent rendered in accordance with
the last precedin# section shall be ser%ed )pon the co)rt, <)asi-4)dicial a#ency, trib)nal, corporation, board, officer or person
concerned in s)ch (anner as the co)rt (ay direct, and disobedience thereto shall be p)nished as conte(pt. An e'ec)tion (ay
iss)e for any da(a#es or costs awarded in accordance with section 1 of *)le 69. A9a=
Aend,K E
*:L5 6
Appeals fro( the Co)rt of Ta' Appeals and H)asi-9)dicial A#encies to the Co)rt of Appeals
&5CT71$ 1. &cope. N This *)le shall apply to appeals fro( 4)d#(ents or final orders of the Co)rt of Ta' Appeals and fro(
awards, 4)d#(ents, final orders or resol)tions of or a)thori;ed by any <)asi-4)dicial a#ency in the e'ercise of its <)asi-4)dicial
f)nctions. A(on# these a#encies are the Ci%il &er%ice Co((ission, Central 0oard of Assess(ent Appeals, &ec)rities and
5'chan#e Co((ission, 1ffice of the President, Land *e#istration A)thority, &ocial &ec)rity Co((ission, Ci%il Aerona)tics 0oard,
0)rea) of Patents, Trade(arks and Technolo#y Transfer, $ational 5lectrification Ad(inistration, 5ner#y *e#)latory 0oard, $ational
Teleco(()nications Co((ission, Depart(ent of A#rarian *efor( )nder *ep)blic Act $o. ++,7, Fo%ern(ent &er%ice 7ns)rance
&yste(, 5(ployees Co(pensation Co((ission, A#ric)lt)ral 7n%entions 0oard, 7ns)rance Co((ission, Philippine Ato(ic 5ner#y
Co((ission, 0oard of 7n%est(ents, Constr)ction 7nd)stry Arbitration Co((ission, and %ol)ntary arbitrators a)thori;ed by law. An=
&5CT71$ ". Cases not co%ered. N This *)le shall not apply to 4)d#(ents or final orders iss)ed )nder the Labor Code of the
Philippines. An=
&5CT71$ 6. 3here to appeal. N An appeal )nder this *)le (ay be taken to the Co)rt of Appeals within the period and in
the (anner herein pro%ided, whether the appeal in%ol%es <)estions of fact, of law, or (i'ed <)estions of fact and law. An=
&5CT71$ . Period of appeal. N The appeal shall be taken within fifteen A1,= days fro( notice of the award, 4)d#(ent, final
order or resol)tion, or fro( the date of its last p)blication, if p)blication is re<)ired by law for its effecti%ity, or of the denial of
petitionerOs (otion for new trial or reconsideration d)ly filed in accordance with the #o%ernin# law of the co)rt or a#ency a <)o. 1nly
one A1= (otion for reconsideration shall be allowed. :pon proper (otion and the pay(ent of the f)ll a(o)nt of the docket fee before
the e'piration of the re#le(entary period, the Co)rt of Appeals (ay #rant an additional period of fifteen A1,= days only within which
to file the petition for re%iew. $o f)rther e'tension shall be #ranted e'cept for the (ost co(pellin# reason and in no case to e'ceed
fifteen A1,= days. An=
'''
&5CT71$ 1>. D)e co)rse. N 7f )pon the filin# of the co((ent or s)ch other pleadin#s or doc)(ents as (ay be re<)ired or
allowed by the Co)rt of Appeals or )pon the e'piration of the period for the filin# thereof, and on the basis of the petition or the
records the Co)rt of Appeals finds pri(a facie that the co)rt or a#ency concerned has co((itted errors of fact or law that wo)ld
warrant re%ersal or (odification of the award, 4)d#(ent, final order or resol)tion so)#ht to be re%iewed, it (ay #i%e d)e co)rse to
the petitionJ otherwise, it shall dis(iss the sa(e. The findin#s of fact of the co)rt or a#ency concerned, when s)pported by
s)bstantial e%idence, shall be bindin# on the Co)rt of Appeals. An=
D''
&5CT71$ 1". 5ffect of appeal. N The appeal shall not stay the award, 4)d#(ent, final order or resol)tion so)#ht to be
re%iewed )nless the Co)rt of Appeals shall direct otherwise )pon s)ch ter(s as it (ay dee( 4)st. A1>a=
Aend,K 0
*:L5 ,
Appeal by Certiorari to the &)pre(e Co)rt
&5CT71$ 1. 2ilin# of petition with &)pre(e Co)rt. N A party desirin# to appeal by certiorari fro( a 4)d#(ent or final order or
resol)tion of Appeals, the &andi#anbayan, the *e#ional Trial Co)rt or other co)rts whene%er a)thori;ed by law, (ay file with the
&)pre(e Co)rt a %erified petition for re%iew on certiorari. T&e e/,/,"n s&a11 !a,se "n1y B2es/,"ns ". 1aw which ()st be distinctly
set forth. A1a, "a=
&5CT71$ ". Ti(e for filin#J e'tension. N The petition shall be filed w,/&,n .,./een 6157 days .!"m n"/,%e ". /&e 32d-men/
"! .,na1 "!de! "! !es"12/,"n aea1ed .!"m' "! ". /&e den,a1 ". /&e e/,/,"ne!Ns m"/,"n ."! new /!,a1 "! !e%"ns,de!a/,"n .,1ed ,n
d2e /,me a./e! n"/,%e ". /&e 32d-ment. 1n (otion d)ly filed and ser%ed, with f)ll pay(ent of the docket and other lawf)l fees and
the deposit for costs before the e'piration of the re#le(entary period, the &)pre(e Co)rt (ay for 4)stifiable reasons #rant an
e'tension of thirty A6>= days only within which to file the petition. A1a, ,a=
&5CT71$ 6. Docket and other lawf)l feesJ proof of ser%ice of petition. N :nless he has theretofore done so, the petitioner
shall pay the correspondin# docket and other lawf)l fees to the clerk of co)rt of the &)pre(e Co)rt and deposit the a(o)nt of
P,>>.>> for costs at the ti(e of the filin# of the petition. Proof of ser%ice of a copy thereof on the lower co)rt concerned and on the
ad%erse party shall be s)b(itted to#ether with the petition. A1a=
&5CT71$ . Contents of petition. N A1(itted=
&5CT71$ ,. Dis(issal or denial of petition. N The fail)re of the petitioner to co(ply with any of the fore#oin# re<)ire(ents
re#ardin# the pay(ent of the docket and other lawf)l fees, deposit for costs, proof of ser%ice of the petition, and the contents of and
the doc)(ents which sho)ld acco(pany the petition shall be s)fficient #ro)nd for the dis(issal thereof.
The &)pre(e Co)rt (ay on its own initiati%e deny the petition on the #ro)nd that the appeal is witho)t (erit, or is prosec)ted
(anifestly for delay, or that the <)estions raised therein are too )ns)bstantial to re<)ire consideration. A6a=
&5CT71$ +. *e%iew discretionary. P A !e#,ew ,s n"/ a ma//e! ". !,-&/' b2/ ". s"2nd 32d,%,a1 d,s%!e/,"n' and will be
#ranted only when there are special and i(portant reasons therefor. The followin#, while neither controllin# nor f)lly (eas)rin# the
co)rtOs discretion, indicate the character of reasons which will be consideredC
Aa= 3hen the co)rt a <)o has decided a <)estion of s)bstance, not theretofore deter(ined by the &)pre(e Co)rt, or has
decided it in a way probably not in accord with law or with the applicable decisions of the &)pre(e Co)rtJ or
Ab= 3hen the co)rt a <)o has so far departed fro( the accepted and )s)al co)rse of 4)dicial proceedin#s, or so far
sanctioned s)ch depart)re by a lower co)rt, as to call for an e'ercise of the power of s)per%ision. Aa=
&5CT71$ 7. Pleadin#s and doc)(ents that (ay be re<)iredJ sanctions. N A1(itted=
&5CT71$ E. D)e co)rseJ ele%ation of records. N 7f the petition is #i%en d)e co)rse, the &)pre(e Co)rt (ay re<)ire the
ele%ation of the co(plete record of the case or specified parts thereof within fifteen A1,= days fro( notice. A"a=
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&5CT71$ 9. *)le applicable to both ci%il and cri(inal cases. N The (ode of appeal prescribed in this *)le shall be
applicable to both ci%il and cri(inal cases, e'cept in cri(inal cases where the penalty i(posed is death, recl)sion perpet)a or life
i(prison(ent. An=
7. WA;E PR+TECTI+* PR+:ISI+*S Q PR+HIBITI+*S RE;ARDI*; WA;ES
*+*?I*TER0ERE*CE I* THE DISP+SAL +0 WA;ES
A*T. 11". No&4#&"rf"r"&$" #& +#'%o'(* of )(."'. - $o e(ployer shall li(it or otherwise interfere with the freedo( of
any e(ployee to dispose of his wa#es. .e shall not in any (anner force, co(pel, or obli#e his e(ployees to
p)rchase (erchandise, co((odities or other property fro( any other person, or otherwise (ake )se of any store or
ser%ices of s)ch e(ployer or any other person.
Art. "EE A*PC=. O!"r '#m#*(r $o"r$#o&'B 6Com%,*'or0 %,r$!('" of m"r$!(&+#'" (&+ %(0m"& of )(."' 10 m"(&' of
o/"&'.7 I The penalty of arresto (ayor or a fine ran#in# fro( ">> to ,>> pesos, or both, shall be i(posed )pon any
person, a#ent or officer, of any association or corporation who shall force or co(pel, directly or indirectly, or shall
knowin#ly per(it any laborer or e(ployee e(ployed by hi( or by s)ch fir( or corporation to be forced or co(pelled,
to p)rchase (erchandise or co((odities of any kind.
The sa(e penalties shall be i(posed )pon any person who shall pay the wa#es d)e a laborer or e(ployee e(ployed
by hi(, by (eans of tokens or ob4ects other than the le#al tender c)rrency of the laborer or e(ployee.
WA;E DED5CTI+*
A*T. 116. W(." +"+,$#o&. - $o e(ployer, in his own behalf or in behalf of any person, shall (ake
any ded)ction fro( the wa#es of his e(ployees, e'ceptC
Aa= 7n cases where the worker is ins)red with his consent by the e(ployer, and the ded)ction is to
reco(pense the e(ployer for the a(o)nt paid by hi( as !em,2m "n /&e ,ns2!an%eJ
Ab= 2or )nion d)es, in cases where the ri#ht of the worker or his 2n,"n to %&e%=-".. has been
reco#ni;ed by the e(ployer or a)thori;ed ,n w!,/,n- by the indi%id)al worker concernedJ and
Ac= 7n cases where the em1"ye! ,s a2/&"!,@ed by 1aw "! !e-21a/,"ns iss)ed by the &ecretary of
Labor and 5(ploy(ent.
A*T. 11. D"%o'#' for *o'' or +(m(.". - $o e(ployer shall re<)ire his worker to (ake deposits
fro( which ded)ctions shall be (ade for the rei(b)rse(ent of loss of or da(a#e to tools,
(aterials, or e<)ip(ent s)pplied by the e(ployer, eK%e/ when the e(ployer is en#a#ed in s)ch
trades, occ)pations or b)siness where the practice of (akin# ded)ctions or re<)irin# deposits is a
reco#ni;ed one, or is necessary or desirable as deter(ined by the &ecretary of Labor and
5(ploy(ent in appropriate r)les and re#)lations.
DEP+SITS 0+R L+SSCDA$A;E
A*T. 11,. L#m#(#o&'. - $o ded)ction fro( the deposits of an e(ployee for the act)al a(o)nt of
the loss or da(a#e shall be (ade )nless the e(ployee has been heard thereon, and his
responsibility has been clearly shown.
WITH+LDI*;CDICDBACDS
A*T. 11+. W#!!o*+#&. of )(."' (&+ /#$/1($/' %ro!#1#"+. - 7t shall be )nlawf)l for any person,
directly or indirectly, to withhold any a(o)nt fro( the wa#es of a worker or ind)ce hi( to #i%e )p
any part of his wa#es by force, stealth, inti(idation, threat or by any other (eans whatsoe%er
witho)t the worker8s consent.
DED5CTI+* T+ E*S5RE E$PL+A$E*T
A*T. 117. D"+,$#o& o "&',r" "m%*o0m"&. - 7t shall be )nlawf)l to (ake any ded)ction fro( the
wa#es of any e(ployee for the benefit of the e(ployer or his representati%e or inter(ediary as
consideration of a pro(ise of e(ploy(ent or retention in e(ploy(ent.
RETALIAT+RA $EAS5RES
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A*T. 11E. R"(*#(or0 m"(',r"'. - 7t shall be )nlawf)l for an e(ployer to ref)se to pay or red)ce
the wa#es and benefits, dischar#e or in any (anner discri(inate a#ainst any e(ployee who has
filed any co(plaint or instit)ted any proceedin# )nder this Title or has testified or is abo)t to testify
in s)ch proceedin#s.
0ALSE REP+RTI*;
A*T. 119. F(*'" r"%or#&.. - 7t shall be )nlawf)l for any person to (ake any state(ent, report, or
record filed or kept p)rs)ant to the pro%isions of this Code knowin# s)ch state(ent, report or
record to be false in any (aterial respect.
WITH+LDI*; +0 WA;ES 60R+$ THE CI:IL C+DE7
Art. 17>,. The laborerOs wa#es shall be paid in 1e-a1 %2!!en%y.
Art. 17>+. 3ithholdin# of the wa#es, eK%e/ ."! a deb/ d2e, shall not be (ade by the e(ployer. 6(*'o /&o)& ('
$om%"&'(#o& ,&+"r $#8#* *()7
Art. 17>7. The laborerOs wa#es shall be a 1,en on the #oods (an)fact)red or the work done.
Art. 17>E. The laborerOs wa#es shall not be s)b4ect to e'ec)tion or attach(ent, e'cept for debts inc)rred for food,
shelter, clothin# and (edical attendance.
Art. 17>9. The e(ployer shall neither sei;e nor retain any tool or other articles belon#in# to the laborer.
PRI*CIPLE +0 R*+*?DI$I*5TI+* +0 BE*E0ITSH
A*T. 1>>. Pro!#1##o& (.(#&' "*#m#&(#o& or +#m#&,#o& of 1"&"f#'. - $othin# in this 0ook shall be constr)ed to
eli(inate or in any way di(inish s)pple(ents, or other e(ployee benefits bein# en4oyed at the ti(e of pro()l#ation
of this Code.
A*T. 1"7. No&4+#m#&,#o& of 1"&"f#'. - $o wa#e order iss)ed by any re#ional board shall pro%ide for wa#e rates
lower than the stat)tory (ini()( wa#e rates prescribed by Con#ress. AAs a(ended by *ep)blic Act $o. +7"7, 9)ne
9, 19E9=.
). PAA$E*T +0 WA;ES
0+R$: LE;AL TE*DER
A*T. 1>". Form' of %(0m"&. - $o e(ployer shall pay the wa#es of an e(ployee by (eans of pro(issory notes,
%o)chers, co)pons, tokens, tickets, chits, or any ob4ect other than le#al tender, e%en when e'pressly re<)ested by
the e(ployee.
Pay(ent of wa#es by check or (oney order shall be allowed when s)ch (anner of pay(ent is c)sto(ary on the
date of effecti%ity of this Code, or is necessary beca)se of special circ)(stances as specified in appropriate
re#)lations to be iss)ed by the &ecretary of Labor and 5(ploy(ent or as stip)lated in a collecti%e bar#ainin#
a#ree(ent.
Art. 17>, ACC=. The laborerOs wa#es shall be paid in le#al c)rrency.
Art. "EE A*PC=. O!"r '#m#*(r $o"r$#o&'B 6Com%,*'or0 %,r$!('" of m"r$!(&+#'" (&+ %(0m"& of )(."' 10 m"(&' of
o/"&'.7 I The penalty of arresto (ayor or a fine ran#in# fro( ">> to ,>> pesos, or both, shall be i(posed )pon any
person, a#ent or officer, of any association or corporation who shall force or co(pel, directly or indirectly, or shall
knowin#ly per(it any laborer or e(ployee e(ployed by hi( or by s)ch fir( or corporation to be forced or co(pelled,
to p)rchase (erchandise or co((odities of any kind.
The sa(e penalties shall be i(posed )pon any person who shall pay the wa#es d)e a laborer or e(ployee e(ployed
by hi(, by (eans of tokens or ob4ects other than the le#al tender c)rrency of the laborer or e(ployee.
E9CEPTI+*S:
RULE VIII, BOOE, SEC :
&5CT71$ ". Pay(ent by check. N Pay(ent of wa#es by bank checks, postal checks or (oney orders is allowed
where s)ch (anner of wa#e pay(ent is c)sto(ary on the date of the effecti%ity of the Code, where it is so stip)lated
in a collecti%e a#ree(ent, or where all of the followin# conditions are (etC
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Aa= There is a bank or other facility for encash(ent within a radi)s of one A1= kilo(eter fro( the workplaceJ
Ab= The e(ployer or any of his a#ents or representati%es does not recei%e any pec)niary benefit directly or indirectly
fro( the arran#e(entJ
Ac= The e(ployees are #i%en reasonable ti(e d)rin# bankin# ho)rs to withdraw their wa#es fro( the bank which ti(e
shall be considered as co(pensable ho)rs worked if done d)rin# workin# ho)rsJ and
Ad= The pay(ent by check is with the written consent of the e(ployees concerned if there is no collecti%e a#ree(ent
a)thori;in# the pay(ent of wa#es by bank checks.
PLACE +0 PAA$E*T
A*T. 1>. P*($" of %(0m"&. - Pay(ent of wa#es shall be (ade at or near the place of )ndertakin#, e'cept as
otherwise pro%ided by s)ch re#)lations as the &ecretary of Labor and 5(ploy(ent (ay prescribe )nder conditions to
ens)re #reater protection of wa#es.
E9CEPTI+*S:
&5CT71$ . Place of pay(ent. N As a #eneral r)le, the place of pay(ent shall be at or near the place of
)ndertakin#. Pay(ent in a place other than the work place shall be per(issible only )nder the followin#
circ)(stances- 6A&0 of !" fo**o)#&.7
Aa= 3hen pay(ent cannot be effected at or near the place of work by reason of the deterioration of peace and order
conditions, or by reason of act)al or i(pendin# e(er#encies ca)sed by fire, flood, epide(ic or other cala(ity
renderin# pay(ent thereat i(possibleJ
Ab= 3hen the e(ployer pro%ides free transportation to the e(ployees back and forthJ and
Ac= :nder any other analo#o)s circ)(stancesJ Pro%ided, That the ti(e spent by the e(ployees in collectin# their
wa#es shall be considered as co(pensable ho)rs workedJ
Ad= $o e(ployer shall pay his e(ployees in any bar, ni#ht or day cl)b, drinkin# establish(ent, (assa#e clinic, dance
hall, or other si(ilar places or in places where #a(es are played with stakes of (oney or thin#s representin# (oney
e'cept in the case of persons e(ployed in said places.
RA 6727?PAA$E*T THR5 BA*DS
SECTI+* 7.
:pon written per(ission of the (a4ority of the e(ployees or workers concerned, all pri%ate establish(ents,
co(panies, b)sinesses, and other entities with twenty fi%e A",= or (ore e(ployees and located within one A1=
kilo(eter radi)s to a co((ercial, sa%in#s or r)ral bank shall pay the wa#es and other benefits of their e(ployees
thro)#h any of said banks and within the period of pay(ent of wa#es fi'ed by Presidential Decree $o. "", as
a(ended, otherwise known as the Labor Code of the Philippines.
&1, the followin# conditions ()st conc)r for the %alid pay(ent of wa#es thr) banksC
1. )pon written per(ission of the (a4ority of the e(ployees or workers concernedJ
". all pri%ate establish(ents, co(panies, b)sinesses, and other entities with at least ", or (ore e(ployeesJ
6. located within 1 kilo(eter radi)s to a co((ercial, sa%in#s or r)ral banks shall pay wa#es or benefits of their
e(ployees thro)#h any of the banksJ
. within the period of pay(ent of wa#es fi'ed by PD ", the Labor Code, as a(endedJ 6'"" 1"*o)-
#m"Hfr"5,"&$0 of %(0m"&7
THR5 AT$ 6D+LE Lab"! Ad#,s"!y "n Paymen/ ". Sa1a!,es T&!2 AT$' Se!,es ". 1((6
The followin# conditions ()st conc)rC
1. The ATM syste( of pay(ent is within the written consent of the e(ployees concernedJ
". The e(ployees are #i%en reasonable ti(e to withdraw their wa#es fro( the bank facilities which ti(e, if
done d)rin# workin# ho)rs, shall be considered as co(pensable ho)rsJ
6. The syste( shall allow workers to recei%e their wa#es within the period or fre<)ency and in the a(o)nt
prescribed )nder the Labor Code.
. There is a bank or ATM facility within the radi)s of 1 kilo(eter to the place of work.
,. :pon the re<)est of the concerned e(ployeeBs, the e(ployer shall iss)e a record of pay(ent of wa#es,
benefits, and ded)ctions for a partic)lar period.
+. There shall be no additional e'penses and no di(in)tion of benefits and pri%ile#es as a res)lt of the ATM
syste( of pay(ent.
7. The e(ployer shall ass)(e responsibility in case the wa#e protection pro%isions of law and re#)lations are
not co(plied with )nder the arran#e(ent.
PAAEE
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A*T. 1>,. D#r"$ %(0m"& of )(."'. - 3a#es shall be paid directly to the workers to who( they are d)e, e'ceptC
Aa= 7n cases of for$" m(A",r" renderin# s)ch pay(ent i(possible or )nder other special circ)(stances to be
deter(ined by the &ecretary of Labor and 5(ploy(ent in appropriate re#)lations, in which case, the worker (ay be
paid thro)#h another person )nder written a)thority #i%en by the worker for the p)rposeJ or
Ab= 3here the worker has died, in which case, the e(ployer (ay pay the wa#es of the deceased worker to the heirs
of the latter witho)t the necessity of intestate proceedin#s. The clai(ants, if they are all of a#e, shall e'ec)te an
affida%it attestin# to their relationship to the deceased and the fact that they are his heirs, to the e'cl)sion of all other
persons. 7f any of the heirs is a (inor, the affida%it shall be e'ec)ted on his behalf by his nat)ral #)ardian or ne't-of-
kin. The affida%it shall be presented to the e(ployer who shall (ake pay(ent thro)#h the &ecretary of Labor and
5(ploy(ent or his representati%e. The representati%e of the &ecretary of Labor and 5(ploy(ent shall act as referee
in di%idin# the a(o)nt paid a(on# the heirs. The pay(ent of wa#es )nder this Article shall absol%e the e(ployer of
any f)rther liability with respect to the a(o)nt paid.
E9CEPTI+*S
From Ar#$*" GC< (1o8"-
1. in case of force (a4e)re renderin# s)ch pay(ent i(possible
". )nder special circ)(stances to be deter(ined by the &1L5 in appropriate re#)lations
6. where the worker has died
R,*" VIII, Boo/ III, S"$#o& <
&5CT71$ ,. Direct pay(ent of wa#es. N Pay(ent of wa#es shall be (ade direct to the e(ployee entitled thereto
eK%e/ in the followin# casesC
Aa= 3here the e(ployer is a)thori;ed in writin# by the e(ployee to pay his wa#es to a (e(ber of his fa(ilyJ
Ab= 3here pay(ent to another person of any part of the e(ployeeOs wa#es is a)thori;ed by e'istin# law, incl)din#
pay(ents for the ins)rance pre(i)(s of the e(ployee and )nion d)es where the ri#ht to check-off has been
reco#ni;ed by the e(ployer in accordance with a collecti%e a#ree(ent or a)thori;ed in writin# by the indi%id)al
e(ployees concernedJ or
Ac= 7n case of death of the e(ployee as pro%ided in the s)cceedin# &ection.
&5CT71$ +. 3a#es of deceased e(ployee. N The pay(ent of the wa#es of a deceased e(ployee shall be
(ade to his heirs witho)t the necessity of intestate proceedin#s. 3hen the heirs are of a#e, they shall
e'ec)te an affida%it attestin# to their relationship to the deceased and the fact that they are his heirs to the
e'cl)sion of all other persons. 7n case any of the heirs is a (inor, s)ch affida%it shall be e'ec)ted in his
behalf by his nat)ral #)ardian or ne't of kin. :pon presentation of the affida%it to the e(ployer, he shall
(ake pay(ent to the heirs as representati%e of the &ecretary of Labor and 5(ploy(ent.
Also a %alid pay(entC when the pay(ent of the e(ployees8 wa#e thro)#h any of the a)thori;ed ded)ctions, s)ch as
by %irt)e of a check-off pro%ision, then that is also a %alid for( of pay(ent. &o if there is a C0A where there is a
check-off pro%ision for )nion d)es, the e(ployer will pay a portion of yo)r salary directly to the )nion and it will no
lon#er pass thro)#h yo), and this is a %alid for( of pay(ent.
TI$EC0REL5E*CA +0 PAA$E*T
A*T. 1>6. T#m" of %(0m"&. - 3a#es shall be paid at least once e%ery two A"= weeks or twice a (onth at inter%als not
e'ceedin# si'teen A1+= days. 7f on acco)nt of for$" m(A",r" or circ)(stances beyond the e(ployer8s control,
pay(ent of wa#es on or within the ti(e herein pro%ided cannot be (ade, the e(ployer shall pay the wa#es
i((ediately after s)ch for$" m(A",r" or circ)(stances ha%e ceased. $o e(ployer shall (ake pay(ent with less
fre<)ency than once a (onth.
The pay(ent of wa#es of e(ployees en#a#ed to perfor( a task which cannot be co(pleted in two A"= weeks shall be
s)b4ect to the followin# conditions, in the absence of a collecti%e bar#ainin# a#ree(ent or arbitration awardC
A1= That pay(ents are (ade at inter%als not e'ceedin# si'teen A1+= days, in proportion to the
a(o)nt of work co(pletedJ
A"= That final settle(ent is (ade )pon co(pletion of the work.
R,*" VIII, Boo/ III, S"$ ;
&5CT71$ 6. Ti(e of pay(ent. N Aa= 3a#es shall be paid not less than once e%ery two A"= weeks or twice a (onth at
inter%als not e'ceedin# si'teen A1+= days, )nless pay(ent cannot be (ade with s)ch re#)larity d)e to force (a4e)re
or circ)(stances beyond the e(ployerOs control in which case the e(ployer shall pay the wa#es i((ediately after
s)ch force (a4e)re or circ)(stances ha%e ceased.
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b= 7n case of pay(ent of wa#es by res)lts in%ol%in# work which cannot be finished in two A"= weeks, pay(ent shall be
(ade at inter%als not e'ceedin# si'teen days in proportion to the a(o)nt of work co(pleted. 2inal settle(ent shall be
(ade i((ediately )pon co(pletion of the work.
R,*"- at least e%ery " weeks or twice a (onth at inter%als not e'ceedin# 1+ days.
E9$"%#o&- in cases of force (a4e)re or in circ)(stances beyond the e(ployer8s control, wherein the pay(ent of
wa#es on or within the ti(e herein pro%ided cannot be (ade, the e(ployer shall pay the wa#es i((ediately after
s)ch force (a4e)re or circ)(stance ha%e ceased.

(. C+*DITI+*S +0 E$PL+A$E*T
H+5RS +0 W+RD:
*"!ma1 H"2!s ". W"!=
Art. E6. $1*MAL .1:*& 12 31*I ! The nor(al ho)rs of work of any e(ployee shall not e'ceed ei#ht AE= ho)rs a
day.
'''
RA (2>16C&,1d Lab"!7
&ec. 1"-A. .1:*& 12 31*I 12 A 31*I7$F C.7LD ! :nder the e'ceptions pro%ided in &ection 1" of this Act, as
a(endedC
A1= A child below fifteen A1,= years of a#e (ay be allowed to work for not (ore than twenty A">= ho)rs a weekC
Pro8#+"+, that the work shall not be (ore than fo)r A= ho)rs at any #i%en dayJ
A"= A child fifteen A1,= years of a#e b)t below ei#hteen A1E= shall not be allowed to work for (ore than ei#ht AE=
ho)rs a day, and in no case beyond forty A>= ho)rs a weekJ
A6= $o child below fifteen A1,= of a#e shall be allowed to work between ei#ht o8clock in the e%enin# and si'
o8clock in the (ornin# of the followin# day and no child fifteen A1,= years of a#e b)t below ei#hteen A1E=
shall be allowed to work between ten o8clock in the e%enin# and si' o8clock in the (ornin# of the followin#
day.
D+ *". 65?44' Se!,es ". 2444
R21es and Re-21a/,"ns Im1emen/,n- RA (2>1' Amend,n- RA 7614' as Amended
&ection 1,. .1:*& 12 31*I 12 A 31*I7$F C.7LD ! The followin# ho)rs of work shall be obser%ed for any
child allowed to work )nder *ep)blic Act $o. 9"61 and these *)lesC
Aa= 2or a child below 1, years of a#e, the ho)rs of work shall not be (ore than twenty A">= ho)rs a week,
pro%ided that the work shall not be (ore than fo)r ho)rs at any #i%en dayJ
Ab= 2or a child 1, years of a#e, b)t below 1E, the ho)rs of work shall not be (ore than ei#ht ho)rs a day, and in
no case beyond > ho)rs a weekJ and
Ac= $o child below 1, year of a#e shall be allowed to work between ei#ht o8clock in the e%enin# and si' o8clock
in the (ornin# of the followin# day and no child 1, years of a#e b)t below 1E shall be allowed to work
between ten o8clock in the e%enin# and si' o8clock in the (ornin# of the followin# day.
&leepin# ti(e as well tra%el ti(e of a child en#a#ed in p)blic entertain(ent or infor(ation fro( his or her
residence to his or her workplace shall not be incl)ded as ho)rs worked witho)t pre4)dice to the application of
e'istin# r)les on e(ployees co(pensation.
H+5RS W+RDED:
$ean,n-
Art. E. .1:*& 31*I5D ! .o)rs worked shall incl)de Aa= all ti(e d)rin# which an e(ployee is re<)ired to be on
d)ty or to be at a prescribed workplace, and Ab= all ti(e d)rin# which an e(ployee is s)ffered or per(itted to work.
*est periods of short d)rations d)rin# workin# ho)rs shall be co)nted as ho)rs worked.
7MPL5M5$T7$F *:L5& 12 011I 777C *)le 7
&ec. ,. 3A7T7$F T7M5 ! Aa= 3aitin# ti(e spent by an e(ployee shall be considered as workin# ti(e if waitin# is an
inte#ral part of his work or the e(ployee is re<)ired or en#a#ed by the e(ployer to wait.
Ab= An e(ployee who is re<)ired to re(ain on call in the e(ployer8s pre(ises or so close thereto that he
cannot )se the ti(e effecti%ely and #ainf)lly for his own p)rpose shall be considered as workin# while on call. An
e(ployee who is not re<)ired to lea%e word at his ho(e or with co(pany officials where he (ay be reached is not
workin# while on call.
REST PERI+DS:
$ea1 Pe!,"d
Art. E,. M5AL P5*71D& ! &)b4ect to s)ch re#)lations as the &ecretary of Labor (ay prescribe, it shall be the d)ty of
e%ery e(ployer to #i%e his e(ployees not less than si'ty A+>= (in)tes ti(e-off for their re#)lar (eals.
S&"!/ened $ea1 Pe!,"d
7MPL5M5$T7$F *:L5& 12 011I 777C *)le 7
&ec. 7. 5%ery e(ployer shall #i%e his e(ployees, re#ardless of se', not less that one A1= ho)r ti(e-off for re#)lar
(eals, e'cept in the followin# cases when a (eal period of not less than twenty A">= (in)tes (ay be #i%en by the
e(ployer pro%ided that s)ch shorter (eal period is credited as co(pensable ho)rs worked of the e(ployeeC
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Aa= 3here the work is non-(an)al work in nat)re or does not in%ol%e stren)o)s physical e'ertionJ
Ab= 3here the establish(ent re#)larly operates not less than si'teen ho)rs a dayJ
Ac= 7n cases of act)al or i(pendin# e(er#encies or there is )r#ent work to be perfor(ed on (achineries,
e<)ip(ent or installation to a%oid serio)s loss which the e(ployer wo)ld otherwise s)fferJ and
Ad= 3here the work is necessary to pre%ent serio)s loss of perishable #oods.
'''
C"..ee B!ea=
7MPL5M5$T7$F *:L5& 12 011I 777C *)le 7
&ec. 7. ^ *est periods or coffee breaks r)nnin# fro( fi%e A,= to twenty A">= (in)tes shall be considered as
co(pensable workin# ti(e.
W+RDWEED:
*"!ma1 and C"m!essed 6D+LE De/. Ad#,s"!y *". 2' Se!,es ". 24447
DEPART$E*T AD:IS+RA *+. 42
Se!,es ". 2444
I$PLE$E*TATI+* +0 C+$PRESSED W+RDWEED SCHE$ES
I. P5RP+SE A*D C+:ERA;E
This Ad%isory is bein# iss)ed to #)ide e(ployers and workers who (ay opt to adopt a ()t)ally acceptable
co(pressed workweek AC33= sche(e s)itable to the re<)ire(ents of the fir(.
This Ad%isory (ay be )sed in all establish(ents e'cept those in the constr)ction ind)stry, in health ser%ices, in
occ)pations re<)irin# hea%y (an)al labor, or in occ)pations or workplaces in which workers are e'posed to airborne
conta(inants, h)(an carcino#ens, s)bstances, che(icals or noise that e'ceed threshold li(it %al)es or tolerance
le%els for an ei#ht-ho)r workday as prescribed )nder e'istin# 1cc)pational &afety and .ealth &tandards A1&.&=.
II. P+LICA
As a (atter of policy, and takin# into acco)nt the e(er#ence of new technolo#y and the contin)in# restr)ct)rin# and
(oderni;ation of the work process, the Depart(ent of Labor and 5(ploy(ent AD1L5= enco)ra#es e(ployers and
workers to enter into %ol)ntary a#ree(ents adoptin# C33 sche(es based on the followin# ob4ecti%esC
1. To pro(ote b)siness co(petiti%eness and prod)cti%ity, i(pro%e efficiency by lower operatin# costs, and
red)ce work-related e'penses of e(ployeesJ

". To #i%e e(ployers and workers fle'ibility in fi'in# ho)rs of work co(patible with b)siness re<)ire(ents and
the e(ployees8 need for a balanced work lifeJ and

6. To ens)re the safety and health of e(ployees at the workplace at all ti(es.
2or p)rposes of ad(inisterin# or enforcin# e'istin# laws and r)les on work ho)rs, o%erti(e co(pensation and other
rele%ant labor standards, D1L5 shall reco#ni;e only those C33 sche(es that ha%e been entered into consistent
with this Ad%isory.
III. C+*CEPT A*D DE0I*ITI+*
The Labor Code pro%ides that the nor(al work ho)rs per day shall be ei#ht ho)rs. 3ork (ay be perfor(ed beyond
ei#ht ho)rs a day pro%ided the e(ployee is paid for the o%erti(e work. 1n the other hand, the nor(al n)(ber of
workdays per week shall be si' days, or a total of forty-ei#ht AE= ho)rs based on the nor(al workday of ei#ht ho)rs.
This is witho)t pre4)dice to fir(s whose nor(al workweek is fi%e days, or a total of forty A>= ho)rs based on the
nor(al workday of ei#ht ho)rs.
2or p)rposes of this Ad%isory, a C33 sche(e is an alternati%e arran#e(ent whereby the nor(al workweek is
red)ced to less than si' days b)t the total n)(ber of nor(al work ho)rs per week shall re(ain at E ho)rs. The
nor(al workday is increased to (ore than ei#ht ho)rs witho)t correspondin# o%erti(e pre(i)(. This concept can be
ad4)sted accordin#ly in cases where the nor(al workweek of the fir( is fi%e days.
I:. SPECI0IC ;5IDELI*ES
C"nd,/,"ns. D1L5 shall reco#ni;e C33 sche(es adopted in accordance with the followin#C
1. The C33 sche(e is )ndertaken as a res)lt of an e'press and %ol)ntary a#ree(ent of (a4ority of the
co%ered e(ployees or their d)ly a)thori;ed representati%es. This a#ree(ent (ay be e'pressed thro)#h
collecti%e bar#ainin# or other le#iti(ate workplace (echanis(s of participation s)ch as labor-(ana#e(ent
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co)ncils, e(ployee asse(blies or referenda.

". 7n fir(s )sin# s)bstances, che(icals and processes or operatin# )nder conditions where there are airborne
conta(inants, h)(an carcino#ens or noise prolon#ed e'pos)re to which (ay pose ha;ards to the
e(ployees8 health and safety, there ()st be a certification fro( an accredited health and safety or#ani;ation
or practitioner or fro( the fir(8s safety co((ittee that work beyond ei#ht ho)rs is within threshold li(its or
tolerable le%els of e'pos)re, as set in the 1&.&.

6. The e(ployer shall notify D1L5, thro)#h the *e#ional 1ffice ha%in# 4)risdiction o%er the workplace, of the
adoption of the C33 sche(e. The notice shall be in D1L5 C33 *eport 2or( attached to this Ad%isory.
E..e%/s. A C33 sche(e which co(plies with the fore#oin# conditions shall ha%e the followin# effectsC
1. :nless there is a (ore fa%orable practice e'istin# in the fir(, work beyond ei#ht ho)rs will not be
co(pensable by o%erti(e pre(i)( pro%ided the total n)(ber of ho)rs worked per day shall not e'ceed
twel%e A1"= ho)rs. 7n any case, any work perfor(ed beyond 1" ho)rs a day or E ho)rs a week shall be
s)b4ect to o%erti(e pre(i)(.

". Consistent with Articles E, of the Labor Code, e(ployees )nder a C33 sche(e are entitled to (eal
periods of not less than si'ty A+>= (in)tes. $othin# herein shall i(pair the ri#ht of e(ployees to rest days as
well as to holiday pay, rest day pays or lea%es in accordance with law or applicable collecti%e bar#ainin#
a#ree(ent or co(pany practice.

6. Adoption of the C33 sche(e shall in no case res)lt in di(in)tion of e'istin# benefits. *e%ersion to the
nor(al ei#ht-ho)r workday shall not constit)te a di(in)tion of benefits. The re%ersion shall be considered a
le#iti(ate e'ercise of (ana#e(ent prero#ati%e, pro%ided that the e(ployer shall #i%e the e(ployees prior
notice of s)ch re%ersion within a reasonable period of ti(e.
Adm,n,s/!a/,"n ". CWW S%&eme. The parties to the C33 sche(e shall be pri(arily responsible for its
ad(inistration. 7n case of differences of interpretation, the followin# shall be obser%edC
1. The differences shall be treated as #rie%ances )nder the applicable #rie%ance (echanis( of the fir(.

2. 7f there is no #rie%ance (echanis( or if this (echanis( is inade<)ate, the #rie%ance shall be referred to the
*e#ional 1ffice which shall cond)ct a trainin# and assistance %isit ATA/= p)rs)ant to &ection 6 of
Depart(ent 1rder $o. ,7->.

6. The p)rpose of the TA/ is to ascertain, thro)#h the (ost practical and least liti#io)s way possible, whether
or not the sche(e is the res)lt of a %ol)ntary a#ree(ent or is s)pported by the appropriate certification fro(
an accredited safety and health or#ani;ation or practitioner. 3here appropriate, the TA/ (ay incl)de the
cond)ct, as (ay be appropriate, of a referend)( or work en%iron(ent (eas)re(ent A35M= to deter(ine
act)al work conditions.
To facilitate the resol)tion of #rie%ances, e(ployers are re<)ired to keep and (aintain, as part of their
records, the doc)(entary re<)ire(ents pro%in# that the C33 sche(e was %ol)ntarily adopted and the
certification that the sche(e is consistent with 1&.&.
. 7n the absence of proof of %ol)ntary a#ree(ent or safety and health certification, the e(ployer shall pay the
e(ployees concerned any o%erti(e pay that (ay be owin# to the( as if the C33 sche(e did not e'ist. 7f it
t)rns o)t that work beyond ei#ht ho)rs is not consistent with 1&.&, the parties shall i((ediately re%ert to a
nor(al ei#ht-ho)r workday.
:. P5BLICATI+* A*D P+STI*;
This Ad%isory shall be p)blished in two newspapers of #eneral circ)lation and henceforth shall be part of the labor
ed)cation (an)als to be de%eloped by D1L5. 5%ery fir( adoptin# a C33 sche(e shall ens)re that a copy of this
ad%isory is posted in a conspic)o)s location in the workplace.
Hea1/& Pe!s"nne1
Art. E6. .1:*& 12 31*I ! The nor(al ho)rs of work of any e(ployee shall not e'ceed ei#ht AE= ho)rs a day.
.ealth personnel in cities and ()nicipalities with a pop)lation of at least one (illion A1,>>>,>>>= or in
hospitals and clinics with a bed capacity of at least one h)ndred A1>>= shall hold re#)lar office ho)rs for ei#ht AE=
ho)rs a day for fi%e A,= days a week, e'cl)si%e of ti(e for (eals, eK%e/ where the e'i#encies of the ser%ice re<)ire
that s)ch personnel work for si' A+= days or forty-ei#ht AE= ho)rs which case they shall be entitled to an additional
co(pensation of at least thirty percent A6>K= of their re#)lar wa#e for work on the si'th day. 2or p)rposes of this
Article, Phealth personnelQ shall incl)de resident physicians, n)rses, n)tritionists, dieticians, phar(acists, social
workers, laboratory technicians, para(edical technicians psycholo#ists, (idwi%es, attendants and all other hospital or
clinic personnel. 6No"- #&"r&' (r" &o #&$*,+"+. T!"0 (r" ,',(**0 &o "m%*o0""' of !" !o'%#(*7
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WEEDLA REST DAA:
Art. 91. *7F.T T1 355IL@ *5&T DA@ ! Aa= 7t shall be the d)ty of e%ery e(ployer, whether operatin# for profit or
not, to pro%ide each of his e(ployees a rest period of not less than twenty-fo)r A"= consec)ti%e ho)rs after e%ery si'
A+= consec)ti%e nor(al work days.
Ab= The e(ployer shall deter(ine and sched)le the weekly rest day of his e(ployees s)b4ect to collecti%e
bar#ainin# a#ree(ent and to s)ch r)les and re#)lations as the &ecretary of Labor (ay pro%ide. .owe%er, the
e(ployer shall respect the preference of e(ployees as to their weekly rest day when s)ch preference is based on
reli#io)s #ro)nds. 6o ($$ommo+(" m"m1"r' of !" >
!
+(0 A+8"&#'' (&+ o!"r'7
$ETH+DS +0 0I9I*; C+$PE*SATI+*:
Art 97. D527$7T71$ !
Af= PWa-eQ paid to any e(ployee shall (ean the re()neration or earnin#s, howe%er desi#nated, capable of
bein# e'pressed in ter(s of (oney, whether fi'ed or ascertained on a ti(e, tasks, piece, or co((ission basis, or
other (ethod of calc)latin# the sa(e, which is payable by an e(ployer to an e(ployee )nder a written contract of
e(ploy(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 by the &ecretary of Labor, of board, lod#in# and other facilities c)sto(arily
f)rnished by the e(ployer to the e(ployee. P2air and reasonable %al)eQ shall not incl)de any profit to the e(ployer or
to any person affiliated with the e(ployer.
S0a%,1,/,es #s. S21emen/s
5acilities L incl)de articles or ser%ices As)ch as board and lod#in#= for the benefit of the e(ployee and his fa(ily.
0)t the ter( does not incl)de tools of the trade or articles or ser%ices pri(arily for the benefit of the e(ployer or
necessary for the cond)ct pf the e(ployer8s b)siness.
- are wa#e ded)ctible
- are ite(s of e'pense necessary for the laborer8s and his fa(ily8s e'istence and s)bsistence, so that by
e'press pro%ision of lay, they for( part of the wa#e and when f)rnished by the e(ployer are ded)ctible
therefro(, since if they are not f)rnished, the laborer wo)ld spend and pay for the( 4)st the sa(e.
Sulements ! constit)te e'tra re()neration or special pri%ile#es or benefits #i%en to or recei%ed by the laborers
o%er and abo%e their ordinary earnin#s or wa#es.
- are not wa#e ded)ctible

PART TI$E E$PL+A$E*T 6D+LE EK1ana/"!y B211e/,n da/ed 8an2a!y 2' 1((67:
1((( W+RDERHS STAT5T+RA $+*ETARA BE*E0ITS:
2444 D+LE B2!ea2 ". W"!=,n- C"nd,/,"ns $an2a1 "n Lab"! S/anda!ds
14. $I*I$5$ LAB+R STA*DARDS BE*E0ITS
- 5(ployees e'e(pted
A!/,%1e )2' LC. C"#e!a-e
The pro%ision of this title Aworkin# conditions and rest periods= shall apply to e(ployees in all
establish(ents and )ndertakin#s whether for profit or not, b)t not to #o%ern(ent e(ployees, (ana#erial
e(ployees, field personnel, (e(bers of the fa(ily of the e(ployer who are dependent on hi( for s)pport,
do(estic helpers, persons in the personal ser%ice of another, and workers who are paid by res)lts as
deter(ined by the &ecretary of Labor in appropriate re#)lations.
'''
- 5'cl)ded 55s fro( the co%era#e of the prescribed workin# conditions and rest periodsC
1. Go8"r&m"& Em%*o0""'. 0)t this e'cl)sion does not refer to e(ployees of #o%ern(ent a#encies and
#o%ern(ent corporation that are incorporated )nder the Corporation Code. As re#ards p)blic health
workers, *A $o. 76>, applies to the(.
". M(&(."r#(* Em%*o0""' . 7ncl)des s)per%isors.
6. O,'#+" or F#"*+ S(*"' P"r'o&&"* ! those whose perfor(ance of their 4obBser%ice is not s)per%ised by
the e(ployer or his representati%e, the workplace bein# away fro( the principal office and whose ho)rs
and days of work cannot be deter(ined with reasonable certaintyJ hence, they are paid specific a(o)nt
for renderin# specific ser%ice or perfor(in# specific work.
. Em%*o0"rM' f(m#*0 m"m1"r' ! dependent on hi( for s)pport.
,. Dom"'#$ !"*%"r (&+ %"r'o&' r"&+"r#&. %"r'o&(* '"r8#$". ! if they perfor( s)ch ser%ices in the
e(ployer8s ho(e, which are )s)ally necessary or desirable for the (aintenance or the en4oy(ent
thereof, or (inister to the personal co(fort, con%enience or safety of the e(ployer, as well as the
(e(bers of the 5*8s ho)sehold.
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+. Wor/"r' %(#+ 10 r"',* ! they are paid by res)lts and not on the basis of the ti(e spent in workin#, s)ch
as those bein# paid strai#ht wa#es by the ho)r, day, week or (onth.

Ar#$*" ?>. LC. OVERTIME WORE
3ork (ay be perfor(ed beyond ei#ht AE= ho)rs a day pro%ided that the 55 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 ",K thereof. 3ork perfor(ed
beyond ei#ht ho)rs on a holiday or rest day shall be paid an additional co(pensation e<)i%alent to the rate
of the first ei#ht ho)rs on a holiday or rest day pl)s at least 6>K thereof.
A!/,%1e )(. Em"r."&$0 o8"r#m" )or/. Any e(ployee may be reDuired by the e(ployer to perfor( o%erti(e
work in any of the followin# casesC
Aa= 3hen the co)ntry is at war or when any other national or local e(er#ency has been declared by
Con#ress or the Chief 5'ec)ti%eJ
Ab= 3hen it is necessary to pre%ent loss of life or property or in case of i((inent dan#er to p)blic safety d)e
to an act)al or i(pendin# e(er#ency in the locality ca)sed by serio)s accidents, fire, flood, typhoon,
earth<)ake, epide(ic or other disaster or cala(ityJ
Ac= 3hen there is )r#ent work to be perfor(ed on (achines, installation or e<)ip(ent, in order to a%oid
serio)s loss or da(a#e to the e(ployer or so(e other ca)se of si(ilar nat)reJ
Ad= 3hen the work is necessary to pre%ent loss or da(a#e to perishable #oodsJ
Ae= 3here the co(pletion or contin)ation of the work started before the Eth ho)r is necessary to pre%ent
serio)s obstr)ction or pre4)dice to the b)siness or operations of the e(ployer.
Any e(ployee re<)ired to render o%erti(e work )nder this Article shall be paid additional co(pensation
re<)ired in this Chapter.
2or p)rposes of Article E7, LC, a PdayQ Aor PdailyQ= is )nderstood to be the " ho)r period, which
co((ences fro( the ti(e the 55 re#)larly starts to work. 7t is not necessarily the ordinary calendar
day fro( 1" o8 clock (idni#ht to 1" o8clock (idni#ht )nless the 55 starts workin# at 1" (idni#ht,
which is )nlikely in which case the start of the "-ho)r period in co(p)tin# his work day coincides
with the start of the calendar day.
A!/,%1e )). U&+"r#m" &o off'" 10 o8"r#m". :nderti(e work on any partic)lar day shall not be offset by o%erti(e
work on any other day. Per(ission #i%en to the e(ployee to #o on lea%e on so(e other day of the week shall not
e'e(pt the e(ployer fro( payin# the additional co(pensation re<)ired in this Chapter.
A!/,%1e (5. R#.! o '"r8#$" #&$"&#8" *"(8". Aa= 5%ery e(ployee who has rendered at least one year of ser%ice shall
be entitled to a yearly ser%ice incenti%e lea%e of fi%e days with pay.
Ab= T&,s !"#,s,"n s&a11 n"/ a1y to those who are already en4oyin# the benefit herein pro%ided, those
en4oyin# %acation lea%e with pay at least fi%e days and those e(ployed in establish(ents re#)larly
e(ployin# less than ten e(ployees or in establish(ents e'e(pted fro( #rantin# this benefit by the
&ecretary of Labor after considerin# the %iability or financial condition of s)ch establish(ent.
Ac= The #rant of benefit in e'cess of that pro%ided herein shall not be (ade a s)b4ect of arbitration or any
co)rt or ad(inistrati%e action.
A!/,%1e (4. R#.! o !o*#+(0 %(0. Aa= 5%ery worker shall be paid his re#)lar daily wa#e d)rin# re#)lar holidays, e'cept
in retail and ser%ice establish(ent re#)larly e(ployin# less than ten workersJ
Ab= The e(ployer (ay re<)ire an e(ployee to work on any holiday b)t s)ch e(ployee shall be paid a
co(pensation e<)i%alent to twice his re#)lar rateJ and
Ac= As )sed in this Article, MholidayM incl)desC $ew @earOs Day, Ma)ndy Th)rsday, Food 2riday, the ninth of
April, the first of May, the twelfth of 9)ne, last &)nday of A)#)st, first of $o%e(ber, the thirtieth of
$o%e(ber, the twenty-fifth and the thirtieth of Dece(ber, thirty-first of Dece(ber, and the day desi#nated by
law for holdin# a #eneral election.
E+ 2(2 Re#,sed Adm,n,s/!a/,#e C"de ". /&e P&,1,,nes
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CHAPTER 7
RE;5LAR H+LIDAAS A*D *ATI+*WIDE SPECIAL DAAS
Se%/,"n 26. R".,*(r Ho*#+(0' (&+ N(#o&)#+" S%"$#(* D(0'. -
:nless otherwise (odified by law, order or procla(ation, the followin# re#)lar holidays and special days shall be
obser%ed in this co)ntryC
AA= *e#)lar .olidays
$ew @earOs Day 9an)ary 1
Ma)ndy Th)rsday Mo%able date
Food 2riday Mo%able date
Araw n# Ia#itin#an A0ataan and
Corre#idor Day=
April 9
Labor Day May 1
7ndependence Day 9)ne 1"
$ational .eroes Day Last &)nday of A)#)st
0onifacio Day $o%e(ber 6>
Christ(as Day Dece(ber ",
*i;al Day Dece(ber 6>
A0= $ationwide &pecial Days
All &aints Day $o%e(ber 1
Last Day of the @ear Dece(ber 61
A"= The ter(s Mle#al or re#)lar holidayM and Mspecial holidayM, as )sed in laws, orders, r)les and re#)lations or other
iss)ances shall be referred to as Mre#)lar holidayM and Mspecial dayM, respecti%ely.
Re2b1,% A%/ *". (177
A* ACT DECLARI*; THE 0IRST DAA +0 S6AWWAL' THE TE*TH $+*TH +0 THE ISLA$IC CALE*DAR' A
*ATI+*AL H+LIDAA 0+R THE +BSER:A*CE +0 $1+'L 513R A*D THE TE*TH DAA +0 E6'L+ 61CCA. THE
TWEL0TH $+*TH +0 THE ISLA$IC CALE*DAR' A RE;I+*AL H+LIDAA I* THE A5T+$*+$+5S RE;I+*
I* $5SLI$ $I*DA*A+ 6AR$$7 0+R THE +BSER:A*CE +0 $1+'L A+6A' A$E*DI*; 0+R THE P5RP+SE
SECTI+* 26' CHAPTER 7 +0 E9EC5TI:E +RDER *+. 2(2. +THERWISE D*+W* AS THE AD$I*ISTRATI:E
C+DE +0 1()7' A*D 0+R +THER P5RP+SES.
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Se%/,"n 2. &ection "+, Chapter 7 of 5'ec)ti%e 1rder $o "9", otherwise known as the *e%ised Ad(inistrati%e Code of
19E7 is hereby a(ended to read as followsC
&ec. "+. R".,*(r Ho*#+(0' (&+ N(#o&)#+" S%"$#(* D(0' A1= :nless otherwise (odified by law, order or procla(ation,
the followin# re#)lar holidays and special days shall obser%ed in the co)ntry.
a= *e#)lar .olidays
$ew @earOs Day - 9an)ary 1
Ma)ndy Th)rsday - Mo%able Date
Food 2riday - Mo%able Date
5id)l 2itr - Mo%able Date
Araw n# Ia#itin#an
A0ataan and Corre#idor Day=
- April 9
Labor Day - May 1
7ndependence Day - 9)ne 1"
$ational .eroes Day - Last &)nday of A)#)st
0onifacio Day - $o%e(ber 6>
Christ(as Day - Dece(ber ",
*i;al Day - Dece(ber 6>
b= $ationwide &pecial .olidays
All &aints Day - $o%e(ber 1
Last Day of the @ear - Dece(ber 61
Pro8#+"+, !o)"8"r That E#+,* A+!( shall be celebrated as a re#ional holiday in A)tono(o)s *e#ion in M)sli(
Mindanao.M
Re2b1,% A%/ *". (4(2 821y 25' 2447
A* ACT RATI+*ALIFI*; THE CELEBRATI+* +0 *ATI+*AL H+LIDAAS A$E*DI*; 0+R THE P5RP+SE
SECTI+* 26' CHAPTER 7' B++D I +0 E9EC5TI:E +RDER *+. 2(2' AS A$E*DED' +THERWISE D*+W* AS
THE AD$I*ISTRATI:E C+DE +0 1()7
SECTI+* 1. &ection "+, Chapter 7, 0ook 7 of 5'ec)ti%e 1rder $o. "9", as a(ended, otherwise known as the
Ad(inistrati%e Code of 19E7, is hereby a(ended to read as followsC
M&ec. "+, *e#)lar .olidays and $ationwide &pecial Days. T A1= :nless otherwise (odified by law, and or
procla(ation, the followin# re#)lar holidays and special days shall be obser%ed in the co)ntryC
a= *e#)lar .olidays
$ew years Day - 9an)ary 1
Ma)ndy Th)rsday - Mo%able date
Food 2riday - Mo%able date
E,d21 0,/! - Mo%able date
Araw n# Ia#itin#an
A0ataaan and Corre#idor Day=
- Monday nearest April 9
Labor Day - Monday nearest May 1
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7ndependence Day - Monday nearest 9)ne 1"
$ational .eroes Day - Last Monday of A)#)st
0onifacio Day - Monday nearest $o%e(ber 6>
Christ(as Day - Dece(ber ",
*i;al Day - Monday nearest Dece(ber 6>
b= $ationwide &pecial .olidaysC
$inoy A<)ino Day - Monday nearest A)#)st "1
All &aints Day - $o%e(ber 1
Last Day of the @ear - Dece(ber 61
c= 7n the e%ent the holiday falls on a 3ednesday, the holiday will be obser%ed on the Monday of the
week. 7f the holiday falls on a &)nday, the holiday will be obser%ed on the Monday that followsC
Pro%ided, That for (o%able holidays, the President shall iss)e a procla(ation, at least si'
(onths prior to the holiday concerned, the specific date that shall be declared as a
nonworkin# dayC
Pro%ided, howe%er, The 5id)l Adha shall be celebrated as a re#ional holiday in the
A)tono(o)s *e#ion in M)sli( Mindanao.M

A!/,%1e )6. N#.! '!#f +#ff"r"&#(*. 5%ery e(ployee shall be paid a ni#ht shift differential of not less than ten percent of
his re#)lar wa#e for each ho)r of work perfor(ed between ten oOclock in the e%enin# and si' oOclock in the (ornin#.
Ra/,"na1e:
P$i#ht work cannot be re#arded as desirable, either fro( the point of %iew of the 5* or the wa#e earner. 7t is
)necono(ical )nless o%erhead costs are )n)s)ally hea%y. 2re<)ently the scale of wa#es is hi#her an ind)ce(ent to
e(ploy(ent on the ni#ht shift, and the rate of prod)ction is #enerally lowerQ A&hell Co. %s. $L:=
\ $i#ht shift differential not wai%able.
The Pwai%erQ r)le is not applicable in ni#ht shift differential. The additional co(pensation for ni#htti(e work
is fo)nded on p)blic policy, hence the sa(e cannot be wai%ed AArtcle +, $CC.= ! WMerc)ry Dr)# Co., 7nc. %s. $ardo
DayaoX
A!/,%1e (6. S"r8#$" $!(r."'. All ser%ice char#es collected by hotels, resta)rants and si(ilar establish(ents shall be
distrib)ted at the rate of E, percent for all co%ered e(ployees and 1, percent for (ana#e(ent. The share of the
e(ployees shall be e<)ally distrib)ted a(on# the(. 7n case the ser%ice char#e is abolished, the share of the co%ered
e(ployees shall be inte#rated into their wa#es.
\ &er%ice char#e applies only to establish(ents collectin# ser%ice char#es, s)ch as hotels, resta)rants, lod#in#
ho)ses, ni#ht cl)bs, cocktail lo)n#es, (assa#e clinics, bars, casinos and #a(blin# ho)ses, and si(ilar enterprises,
incl)din# those entities operatin# pri(arily as pri%ate s)bsidiaries of the #o%ern(ent. A&ection 1, *)le /7, 0ook 777,
1(nib)s *)les=
11. +THER SPECIAL BE*E0ITS
P*5&7D5$T7AL D5C*55 E,1
1>
TH
$+*TH PAA
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Se%.1 All e(ployers are hereby re<)ired to pay all their rank-file e(ployees a 16
th
(onth pay not later than
Dece(ber " of e%ery year. 3ith the re(o%al of the ceilin# P1, >>>.>> all rank-and-file e(ployees are now entitled to
a 16
th
(onth pay re#ardless of the a(o)nt of basic salary that they recei%ed in a (onth, s)ch e(ployees as entitled
to the benefit re#ardless of their desi#nation or e(ploy(ent stat)s and irrespecti%e of (ethod by which their wa#es
are paid pro%ided that they ha%e worked for at least 1 (onth d)rin# the calendar year.
5D5MPT5D 5MPL1@5*
a. #o%ern(ent and any of its political s)bdi%isions incl)din# F1CC
b. e(ployers already payin# their e(ployees a 16
th
(onth pay or its e<)i%alent
c. e(ployers of ho)sehold helpers and persons in the personal ser%ice of another in relation to s)ch
workers
d. e(ployers of those who are paid on p)rely co((ission, bo)ndary or task basis and those who are paid
a fi'ed a(o)nt for perfor(in# specific work
\ The ter( P#' "5,#8(*"&Q shall incl)de Christ(as bon)s, (id-year bon)s, cash bon)ses and other pay(ents
a(o)ntin# to not less than 1B1" of the basic salary.

Se%. 4 The (ini()( of the 16
th
(onth pay re<)ired by law shall not be less than 1B1" of the total basic salary "(r&"+
by an e(ployee within a calendar year. 5arned beca)se it is possible that the e(ployee has )sed his %acation lea%e,
lea%e witho)t pay which sho)ld not be co)nted. The e(ployer can pro%ide for (ore if he so desire.
Ti(e of pay(ent: T&e !eB2,!ed 1>
/&
m"n/& Tay s&a11 be a,d n"/ 1a/e! /&an De%embe! 24 ". e#e!y yea!. An
em1"ye!' &"we#e! may -,#e /" &,s em1"yee U ". /&e !eB2,!ed 1>
/&
m"n/& ay be."!e /&e "en,n- ".
/&e !e-21a! s%&""1 yea! and /&e "/&e! &a1. "n "! be."!e /&e 24
/&
". De%embe! ". e#e!y yea!.
1>
/&
m"n/& ay ". !es,-ned "! sea!a/ed em1"yeeC An e(ployee who has resi#ned or whose ser%ices were
ter(inated at anyti(e before the ti(e for pay(ent of the 16
th
(onth pay is entitled to this (onetary benefit on
proportion to the len#th of ti(e he worked d)rin# the year, )p to the ti(e of his resi#nation or ter(ination fro( the
ser%ice, the pay(ent (aybe de(anded by the e(ployee )pon the cessation of 5*-55 relationship. The benefits
#ranted shall not be credited as part of the e(ployees and other benefits.
3orkers paid by res)lt are not entitled to this benefit only those who are paid on apiece rate basis are
specifically (entioned by e'press pro%isions of the law.
0asic salary shall incl)de all re()neration or earnin#s paid by an e(ployer to an e(ployee for ser%ices
rendered b)t does not incl)de allowances and (onetary benefits which are not considered or inte#rated as
part of the re#)lar or basic salary, s)ch as the cash e<)i%alent of )n)sed %acation and sick lea%e credits,
o%erti(e pre(i)(, ni#ht shift differential and holiday pay and cost-of-li%in#- allowance. .owe%er these
salary related benefits sho)ld be incl)ded as part of the basic salary related benefits sho)ld be incl)ded as
part of the basic salary in the co(p)tation of the 16
th
(onth pay if by indi%id)al or collecti%e a#ree(ent,
co(pany practice or policy, the sa(e are treated as part of the basic salary of the e(ployees.
The law pro%ides that the only re<)ire(ent is that the e(ployee ()st ha%e at least rendered 1 (onth of
ser%ice d)rin# the calendar year. The does not forfeit or there is no forfeit)re pro%ision )nder the law.

PATER*ITA LEA:E ACT +0 1((6?R.A )1)7
&ec. " e%ery (arried (ale e(ployee in the pri%ate and p)blic sector shall be entitled to a paternity lea%e of 7 days
with f)ll pay for the first fo)r deli%eries of the le#iti(ate spo)se with who( he is cohabitin#. The (ale e(ployee shall
notify his e(ployer of the pre#nancy of his spo)se within reasonable ti(e and the e'pected date of deli%ery.
Paternity lea%e refers to the benefit #ranted to a (arried (ale e(ployee allowin# hi( not to report for work for se%en
days b)t contin)es to earn co(pensation therefor, on the condition that his spo)se deli%ered a child or s)ffered
(iscarria#e for p)rposes of enablin# hi( to effecti%ely lend s)pport to his wife in the period of reco%ery andBor
n)rsin# of a newly born child.
C1$D7T71$& 21* 5$T7TL5M5$T 12 PAT5*$7T@ L5A/5
1. he is e(ployed at the ti(e of deli%ery of the child
". he has notified his e(ployer of the pre#nancy of his wife and her e'pected date of deli%ery
6. his wife has #i%en birth s)ffers (iscarria#e or abortion
The e(ployee shall acco(plish a Paternity $otification 2or( to be pro%ided for by the e(ployer and s)b(it
the sa(e to the latter to#ether with a copy of his (arria#e contract or if not any proof of (arria#e contract
who has a%ailed of the paternity lea%e benefits shall with in reasonable period of ti(e s)b(it a copy of birth
certificate of the newly-born child, death or (edical certificate in case of (iscarria#e or abortion. 7n case
s)ch paternity lea%e benefit is not a%ailed, said lea%e shall not con%ertible to cash.
7f the e(ployer does not co(ply with what is (andated in *.A. E1E7 )nder section , the e(ployer (aybe
s)b4ect to a fine not e'ceedin# P",, >>>.>> or i(prison(ent of not less than 6> days nor (ore than +>(
days.
D+$ESTIC AD+PTI+* ACT +0 1(() J R.A. )552 SEC. 12
&)per%ised Trial Co)rt

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$o person for adoption shall be finally #ranted )ntil the adopterAs= has been #i%en by the co)rt s)per%ised trail
c)stody period for at least + (onths within which parties are e'pected to ad4)st psycholo#ically and e(otionally to
each other and establish a bondin# relationship. D)rin# said period, te(porary parental a)thority shall be %ested in
the adopterAs=.
The co)rt (ay (ot) propio or )pon (otion of any party red)ce the trial period if it finds the sa(e to be in the best
interest of the adoptee, statin# the reasons for the red)ction of the period. .owe%er for alien adopters heBshe ()st
co(plete the si' (onth trial c)stody.
7f the child is below se%en years of a#e and is placed with the prospecti%e adopterAs= thro)#h a pre-adoption
place(ent a)thority iss)ed by the depart(ent the prospecti%e adopter shall en4oy all the benefits to which biolo#ical
parents is entitled fro( the date the adoptee is placed with the prospecti%e adopters.
APlease insert new retire(ent law, *A 7+1 and *A E,EE-CA$T 27$D T.7& 1$5. &1*7=
LAB+R AD:IS+RA +* RETIRE$E*T PAA LAW
Co%era#e:
The *etire(ent Pay Law shall apply to all e(ployees in the pri%ate sector, re#ardless of their position, desi#nation or
stat)s, and irrespecti%e of the (ethod by which their wa#es are paid. They shall incl)de part-ti(e e(ployees,
e(ployees of ser%ice and other 4ob contractors and do(estic helpers or persons in the Wpersonal ser%ice and
a#ric)lt)ral establish(ent or operations e(ployin# not (ore than 1> e(ployees or workers and e(ployees of the
$ational Fo%ern(ent and its political s)bdi%isions incl)din# #o%ern(ent-owned and controlled corporations, if they
are co%ered by the Ci%il &er%ice Law and re#)lations.

ART.1>2 0ACILITIES 0+R W+$E*
The &ecretary of labor shall establish standards that will ins)re the safety and health of wo(en e(ployees in
appropriate cases, he shall by re#)lations, re<)ire e(ployers toC
1. pro%ide seats proper for wo(en and per(it the( to )se s)ch seat when they are free fro( work and d)rin#
workin# # ho)rs, pro%ided they can perfor( their d)ties ion this position witho)t detri(ent to efficiency
". to establish separate toilet and la%atories for (en and wo(en and pro%ide at least dressin# roo( for wo(en
6. to establish a n)rsery in a workplace for the benefit of the wo(en e(ployees therein
. 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
S+L+ PARE*T WEL0ARE ACT?R.A.()72
Definition of ter(sC
&olo Parent- any indi%id)al who falls )nder any of the followin# cate#oriesC
1= a wo(an who #i%es birth as a res)lt of rape final con%iction of the offenderC pro%ided that the (other keeps
and raises the childJ
"= parent left solo or alone with the responsibility of parenthood d)e to death or spo)seJ
6= parent left solo or alone with the responsibility of parenthood while the spo)se is detained or is ser%in#
sentence for a cri(inal con%iction for at least 1 year
= parent left solo or alone with the responsibility of parenthood d)e to physical andBor (ental incapacity of a
spo)se as certified by a p)blic (edical practitioner
,= parent left solo or alone with the responsibility of parenthood d)e to le#al separation or de facto separation
for( spo)se fro at least 1 year, as lon# as sheBhe is entr)sted with the c)stody of the children
+= parent left solo or alone with the responsibility of parenthood d)e to declaration of n)llity or ann)l(ent of
(arria#e as decreed by a co)rt or by a ch)rch as lon# as heBshe is entr)sted with the c)stody of the
children
7= parent left solo or alone with the responsibility of parenthood d)e to abandon(ent of a spo)se for at least 1
year
E= )n(arried fatherB(other who has preferred keep and rear herBhis childB children instead of ha%in# others
care for the( or #i%e the( )p to a written welfare instit)tionJ
9= any other person who solely pro%ides parental care and s)pport to a( child or childrenJ
1>= any fa(ily (e(ber who ass)(es the responsibility of head of fa(ily as res)lt of the death, abandon(ent,
disappearance or prolon#ed absence of the parents or solo parent
\ A chan#e in the stat)s or circ)(stance of the parent clai(in# benefits )nder this Act, s)ch that heBshe is no
lon#er left alone with the responsibility of parenthood shall ter(inate hisBher eli#ibility for these benefits

Parental Lea%e shall (ean lea%e benefits #ranted to solo parent to enable hi(Bher to perfor( parental d)ties and
responsibilities where physical presence is re<)ired
2le'ible 3ork &ched)le is the ri#ht #ranted to a solo parent e(ployee to %ary hisBher arri%al and depart)re ti(e
witho)t affectin# the core work ho)rs as defined by the e(ployer

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Se%. 6 The e(ployer shall pro%ide for fle'ible workin# sched)le for solo parentsC Pro%ided that the sa(e shall not
affect indi%id)al and co(pany prod)cti%ityJ pro%ided f)rther that any e(ployer (ay re<)est e'e(ption fro( the abo%e
re<)ire(ents fro( the D1L5 on certain (eritorio)s #ro)nds.

Se%. ) in addition to lea%e pri%ile#es )nder e'istin# laws, parental lea%e of not (ore than 7 workin# days e%ery year
shall be #ranted to any solo parent e(ployee who has rendered ser%ice of at least 1 year.

A*TI?:I+LE*CE A;AI*ST W+$E* Q THEIR CHILDRE* ACT +0 2444? R.A (262
Sec." +eclaration of olicy4 # #' !"r"10 +"$*(r"+ !( !" '(" 8(*,"' !" +#.&#0 of )om"& (&+ $!#*+r"& (&+
.,(r(&""' f,** r"'%"$ for !,m(& r#.!'. T!" '(" r"$o.&#2"' !" &""+ o %ro"$ !" f(m#*0 (&+ #'
m"m1"r' %(r#$,*(r*0 )om"& (&+ $!#*+r"& form 8#o*"&$" (&+ !r"(' o !"#r %"r'o&(* '(f"0 (&+
'"$,r#0.
To)(r+' !#' "&+, !" '(" '!(** "9"r "ffor' o (++r"'' 8#o*"&$" $omm#"+ (.(#&' )om"& (&+
$!#*+r"& #& /""%#&. )#! !" f,&+(m"&(* fr""+om' .,(r(&""+ ,&+"r !" Co&'#,#o& (&+ !" Pro8#'#o&'
of !" U&#8"r'(* +"$*(r(#o& of H,m(& r#.!', !" Co&8"&#o& o& !" E*#m#&(#o& of (** form' of
+#'$r#m#&(#o& (.(#&' )om"&, Co&8"&#o& o& !" r#.!' of !" C!#*+ (&+ !" o!"r #&"r&(#o&(* !,m(&
r#.!' #&'r,m"&' of )!#$! !" P!#*#%%#&"' #' ( %(r0.
Sec.& Protection 2rder > A N%ro"$#o& or+"r #' (& or+"r #'',"+ ,&+"r !#' ($ for !" %,r%o'" of %r"8"&#&. f,r!"r
($' of 8#o*"&$" (.(#&' ( )om"& or !"r $!#*+ '%"$#f#"+ #& '"$#o& < of !"'" A$< (&+ .r(&#&. o!"r
&"$"''(r0 r"*#"f. T!" r"*#"f .r(&"+ ,&+"r ( %ro"$#o& or+"r '"r8" !" %,r%o'" of '(f".,(r+#&. !"
8#$#m from f,r!"r !(rm, m#&#m#2#&. (&0 +#'r,%#o& #& !" 8#$#m'M +(#*0 *#f", (&+ f($#*#(#&. !"
o%%or,&#0 (&+ (1#*#0 of !" 8#$#m o #&+"%"&+"&*0 r".(#& $o&ro* o8"r !"r *#f". T!" %ro8#'#o&' of !"
%ro"$#o& or+"r '!(** "&for$"+ 10 *() "&for$"m"& (."&$#"'. T!" %ro"$#o& or+"r' !( m(0 1" #'',"+
,&+"r !#' A$ (r" !" 1(r(&.(0 %ro"$#o& or+"r 6BPO7, "m%or(r0 %ro"$#o& or+"r 6TPO7, (&+
%"rm(&"& %ro"$#o& or+"r.
S$*. %" 3raining of Persons 1nvolved in the Resonding to ?iolence Against Women and their *hildren
*ases: A** (."&$#"' #&8o*8"+ #& r"'%o&+#&. o 8#o*"&$" (.(#&' )om"& (&+ !"#r $!#*+r"& $('"' '!(** 1"
r"5,#r"+ o ,&+"r.o "+,$(#o& (&+ r(#&#&. o ($5,(#& !"m )#!-
(. !" &(,r", "9"&+ (&+ $(,'"' of 8#o*"&$" (.(#&' )om"& (&+ !"#r $!#*+r"& B
b. the le#al ri#hts of, and re(edies a%ailable to, %icti(s of %iolence a#ainst wo(en and their children
c. the ser%ices and facilities a%ailable to %icti(s or s)r%i%ors
d. the le#al d)ties i(posed on police officers to (ake arrest and to offer protection and assistance, and
e. techni<)es for handlin# incidents of %iolence a#ainst wo(en and their children that (ini(i;e the
likelihood of in4)ry to the offender and pro(ote the safety of the %icti( or s)r%i%or.
The P$P, in coordination with LF:8s shall establish an ed)cation and trainin# pro#ra( for police officers
and baran#ay officials to enable the( to properly handle cases of %iolence a#ainst wo(en and their children

12. RI;HT T+ SEC5RITA +0 TE*5RE
SEC5RITA +0 TE*5RE
ARTICLE :>@. S"$,r#0 of T"&,r". I I& $('"' of r".,*(r "m%*o0m"&, !" "m%*o0"r '!(** &o
"rm#&(" !" '"r8#$"' of (& "m%*o0"" "9$"% for ( A,' $(,'" or )!"& (,!or#2"+ 10 !#' T#*". A&
"m%*o0"" )!o #' ,&A,'*0 +#'m#''"+ from )or/ '!(** 1" "&#*"+ o r"#&'("m"& )#!o, *o'' of
'"&#or#0 r#.!' (&+ o !#' 1($/)(."' $om%,"+ from !" #m" !#' $om%"&'(#o& )(' )#!!"*+ from
!#m ,% o #m" of !#' ($,(* r"#&'("m"&. 6A' (m"&+"+ 10 RA =>G<7
C1$C5PT
&ec)rity of Ten)re ! is the ri#ht of the e(ployee to contin)e work )ntil ter(inated for a 4)st or a)thori;ed ca)se 6('
%ro8#+"+ 10 *()7.
C1$&T7T:T71$AL 0A&7& AArt. 16, &ec. 6, 19E7 Constit)tion=
3he State '!(** (ffor+ f,** %ro"$#o& o *(1or, *o$(* (&+ o8"r'"(', or.(&#2"+ (&+
,&or.(&#2"+, (&+ %romo" f,** "m%*o0m"& (&+ "5,(*#0 of "m%*o0m"& o%%or,&##"' for (**.
I shall guarantee the rights of all wor<ers o '"*f4or.(&#2(#o&', (&+ %"($"f,*
$o&$"r"+ ($#8##"', #&$*,+#&. !" r#.! o 'r#/" #& ($$or+(&$" )#! *(). 3hey shall be entitled to
security of tenure, !,m(&" $o&+##o&' of )or/, (&+ ( *#8#&. )(.". T!"0 '!(** (*'o %(r#$#%(" #&
%o*#$0 (&+ +"$#'#o&4m(/#&. %ro$"''"' (ff"$#&. !"#r r#.!' (&+ 1"&"f#' (' m(0 1" %ro8#+"+ 10
*().
T!" S(" '!(** %romo" !" %r#&$#%*" of '!(r"+ r"'%o&'#1#*#0 1")""& )or/"r' (&+
"m%*o0"r' (&+ !" %r"f"r"&#(* ,'" of 8o*,&(r0 mo+"' #& '"*#&. +#'%,"', #&$*,+#&. $o&$#*#(#o&,
(&+ '!(** "&for$" !"#r m,,(* $om%*#(&$" !"r")#! o fo'"r #&+,'r#(* %"($".
T!" S(" '!(** r".,*(" !" r"*(#o&' 1")""& )or/"r' (&+ "m%*o0"r', r"$o.&#2#&. !"
r#.! of *(1or o #' A,' '!(r" #& !" fr,#' of %ro+,$#o& (&+ !" r#.! of "&"r%r#'"' o r"('o&(1*"
r",r&' o& #&8"'m"&', (&+ o "9%(&'#o& (&+ .ro)!.
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&TAT:T1*@ 0A&7& AArt. "79, Labor Code \shown abo%e=
MA*H:5G : Altho)#h Art. "79 starts with PI& $('"' of r".,*(r "m%*o0m"& 999, 4)rispr)dence will show that sec)rity
of ten)re is #)aranteed not only to re#)lar e(ployees, non-re#)lar e(ployees also en4oy sec)rity of ten)re, b)t only
to a li(ited sense.
CLASSI0ICATI+* +0 E$PL+A$E*T A*D DI*DS +0 E$PL+AEES
ARTICLE :?C. R".,*(r (&+ $(',(* "m%*o0m"&. I T!" %ro8#'#o&' of )r#"& (.r""m"& o !"
$o&r(r0 &o)#!'(&+#&. (&+ r".(r+*"'' of !" or(* (.r""m"&' of !" %(r#"', (& "m%*o0m"& '!(**
1" +""m"+ o 1" r".,*(r )!"r" !" "m%*o0"" !(' 1""& "&.(."+ o %"rform ($#8##"' )!#$! (r"
,',(**0 &"$"''(r0 or +"'#r(1*" #& !" ,',(* 1,'#&"'' or r(+" of !" "m%*o0"r "9$"% )!"r" !"
"m%*o0m"& !(' 1""& f#9"+ for ( '%"$#f#$ %roA"$ or ,&+"r(/#&., !" $om%*"#o& or "rm#&(#o& of
)!#$! !(' 1""& +""rm#&"+ ( !" #m" of !" "&.(."m"& of !" "m%*o0"" or )!"r" !" )or/ or
'"r8#$" o 1" %"rform"+ #' '"('o&(* #& &(,r" (&+ !" "m%*o0m"& #' for !" +,r(#o& of !" '"('o&.
A& "m%*o0m"& '!(** 1" +""m"+ o 1" $(',(* #f # #' &o $o8"r"+ 10 !" %r"$"+#&. %(r(.r(%!-
Pro8#+"+, T!( (&0 "m%*o0"" )!o !(' r"&+"r"+ ( *"(' o&" 0"(r of '"r8#$", )!"!"r ',$! '"r8#$"
#' $o&#&,o,' or 1ro/"&, '!(** 1" $o&'#+"r"+ ( r".,*(r "m%*o0"" )#! r"'%"$ o !" ($#8#0 #&
)!#$! !" #' "m%*o0"+ (&+ !#' "m%*o0m"& '!(** $o&#&," )!#*" ',$! ($#8#0 "9#''.
MA*H:5G : Do not for#et that Art. "E> is $1T the yardstick in deter(inin# e(ployer-e(ployee relationship. 3hat is
controllin# is the fo)r-fold test and Anow= the econo(ic reality test. Art. "E> applies only when the e'istence of
e(ployer-e(ployee relationship is not in disp)te.
I7$D& 12 5MPL1@M5$T:
:$D5* T.5 LA01* C1D5
1. *e#)lar 5(ploy(ent - an e(ploy(ent shall be dee(ed to be re#)lar where the e(ployee has been en#a#ed to
perfor( acti%ities which are )s)ally necessary or desirable in the )s)al b)siness or trade of the e(ployer.
-A *e#)lar 5(ployee (ay either be:
a. Per(anent ! one who has an indefinite e(ploy(ent, whether passin# the probationary sta#e or not
b. Probationary ! one who is placed in a trial period whose perfor(ance is assessed whether satisfactory or
not. 7f perfor(ance is satisfactory, it is followed by a re#)lar e(ploy(ent, if not, the
e(ploy(ent is ter(inated.
\ An e(ployer has the prero#ati%e whether to s)b4ect the e(ployee with probationary e(ploy(ent or not. Th)s,
an e(ployee (ay be considered as a per(anent e(ployee on his first day of work.
". Cas)al 5(ploy(ent - An e(ploy(ent shall be dee(ed to be cas)al if it is not co%ered by the precedin#
para#raph Are#)lar e(ploy(ent=
- does not ha%e sec)rity of ten)re before reachin# the one-year period, howe%er, if he has rendered at least one
year of ser%ice, whether s)ch ser%ice is contin)o)s or broken, he shall be considered a re#)lar e(ployee with
respect to the acti%ity in which he is e(ployed and his e(ploy(ent shall contin)e while s)ch acti%ity e'ists.
6. .Pro4ect 5(ploy(ent ! is one where the e(ploy(ent has been fi'ed for a specific pro4ect 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(ployee
. &easonal 5(ploy(ent - is one where the work or ser%ice to be perfor(ed is seasonal in nat)re and the
e(ploy(ent is for the d)ration of the season.
- Co)rt decisions consider seasonal e(ployees as re#)lar e(ployees, as their e(ploy(ent relationship is ne%er
se%ered b)t only s)spended. AManila .otel, &epte(ber 6>, 19+6; Phil. Tobacco 2l)e-c)rin#, Dece(ber 1>,
199E=
ARTICLE :?G. Pro1(#o&(r0 "m%*o0m"&. I Pro1(#o&(r0 "m%*o0m"& '!(** &o "9$""+ '#9
mo&!' from !" +(" !" "m%*o0"" '(r"+ )or/#&., ,&*"'' # #' $o8"r"+ 10 (& (%%r"&#$"'!#%
(.r""m"& '#%,*(#&. ( *o&."r %"r#o+. T!" '"r8#$"' of (& "m%*o0"" )!o !(' 1""& "&.(."+ o& (
%ro1(#o&(r0 1('#' m(0 1" "rm#&("+ for ( A,' $(,'" or )!"& !" f(#*' o 5,(*#f0 (' ( r".,*(r
"m%*o0"" #& ($$or+(&$" )#! r"('o&(1*" '(&+(r+' m(+" /&o)& 10 !" "m%*o0"r o !" "m%*o0""
( !" #m" of !#' "&.(."m"&. A& "m%*o0"" )!o #' (**o)"+ o )or/ (f"r ( %ro1(#o&(r0 %"r#o+
'!(** 1" $o&'#+"r"+ ( r".,*(r "m%*o0"".

,. Probationary 5(ploy(ent ! is one who is on tentati%e e(ploy(ent d)rin# which the e(ployer deter(ines
whether he Ae(ployee= is <)alified for per(anent e(ploy(ent.
- LC pro%ides that the d)ration of probation is + (onths. The e'ceptions are the followin#: Aa= 999 )nless it is
co%ered by an apprenticeship a#ree(ent stip)latin# a lon#er period; and Ab= the Man)al of *e#)lations for
Pri%ate &chool pro%ides a lon#er probationary period. *ationale: MA*H:5G : 5d)cation is the #rass root of all
profession.
- &ec)rity of ten)re is still a%ailable to probationary e(ployees, b)t only for a li(ited period.
1T.5* CLA&&727CAT71$ A&pecial Laws=
1. Constr)ction 7nd)stry ADepart(ent 1rder $o. 19, &eries of 1996=
a. Pro4ect
b. $on-Pro4ect
b.1. probationary
b.". re#)lar
b.6. cas)al
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". 0roadcast 7nd)stry AD1L5 Policy 7nstr)ction $o. >=
\&a(e classification as in the Labor Code. Policy 7nstr)ction $o. > has been declared to be of $1 effect in the
case of &on;a %s. A0&-C0$ AF.*. 16E>,1, 9)ne 1>, ">>=
6. 7n Pri%ate 5d)cational 7nstit)tions AMan)al of *e#)lations for Pri%ate &chool=
\ as si(ply classified by Mar<)e;
a. Acade(ic Personnel
a.1. Acade(ic teachin#
a.". Acade(ic non-teachin# 6"9. T!" *#1r(r#(&7
b. $on-Acade(ic Personnel ! those staff who perfor( ad(inistrati%e f)nctions b)t are not in%ol%ed in
acade(ic work
\ Their e(ploy(ent is $1T co%ered by the M*P& or by the T/5T Man)al b)t by the Labor Code.
. 7n .ospitals
H: Are *esident Physicians considered e(ployees of hospitalsT
A: MA*H:5G : 7t depends. 7f )nder#oin# trainin#, he is $1T an e(ployee of the hospital. 7f not )nder#oin#
trainin#, he is an e(ployee, b)t only on a ter( basis.
0A&7&: 1(nib)s *)les, 0ook 777, *)le D-A, &ec.1,
R"'#+"&' #& r(#&#&.. I T!"r" #' "m%*o0"r4"m%*o0"" r"*(#o&'!#% 1")""& r"'#+"& %!0'#$#(&' (&+
!" r(#&#&. !o'%#(*', UNLESS:
6G7 !"r" #' ( r(#&#&. (.r""m"& 1")""& !"m; (&+
6:7 !" r(#&#&. %ro.r(m #' +,*0 ($$r"+#"+ or (%%ro8"+ 10 !" (%%ro%r#("
.o8"r&m"& (."&$0. D''
E9CEPTI+*S T+ RE;5LAR E$PL+A$E*T
7$ T.5 LA01* C1D5
1. &easonal 5(ploy(ent
". Pro4ect 5(ploy(ent
6. Cas)al 5(ploy(ent
9:*7&P*:D5$C5 A0rent &chool %s. Ga(ora, 2ebr)ary 9, 199>=
. 2i'ed Ter(BPeriod 5(ploy(ent ! an e(ploy(ent that will last only for a definite period, as a#reed by the parties.
-This kind of e(ploy(ent is not per se ille#al or a#ainst p)blic policy, e%en if this kind of e(ploy(ent is not
(entioned in Art. "E> of the Code. &)ch kind of e(ploy(ent contract (ay be 4)stified in the Ci%il Code.
- MA*H:5G : Art. "E> does not prohibit a#ree(ents %ol)ntarily a#reed )pon by the e(ployer A$D e(ployee,
pro%ided that it is not )sed to circ)(%ent the ri#ht of sec)rity of ten)re.
1>. $A*A;E$E*T PRER+;ATI:E
C+*CEPT
U The ri#ht of an e(ployer to re#)late, #enerally witho)t restraint, accordin# to its own discretion and
4)d#(ent, e%ery aspect of its b)siness, s)b4ect to li(itations of the law.
U 7t sho)ld be e'ercised in #ood faith.
U This pri%ile#e is inherent in the ri#ht of e(ployers to control and (ana#e their enterprise effecti%ely.
SC+PE
$;tent of !anagement Prerogative to Prescribe Wor<ing !ethods- 3ime- Place- !anner and 2ther
Asects of Wor<
U 5(ployers ha%e the freedo( and prero#ati%e, accordin# to their discretion and best 4)d#(ent, to re#)late
and control all aspects of e(ploy(ent in their b)siness or#ani;ations. &)ch aspects of e(ploy(ent incl)de
hirin#, work assi#n(ents, workin# (ethods, ti(e, place and (anner of work, tools to be )sed, processes to
be followed, s)per%ision of workers, workin# re#)lations, transfer of e(ployees, work s)per%ision, lay-off of
workers and the discipline, dis(issal and recall of workers. APhilippine Airlines, 7nc. %s. $L*C, F. *. $o.
11,7E,, A)#. , ">>>=.
U Th)s, as held in one case, (ana#e(ent retains the prero#ati%e, whene%er e'i#encies of the ser%ice so
re<)ire, to chan#e the workin# ho)rs of its e(ployees.
LI$ITATI+*S +* THE E9ERCISE +0 $A*A;E$E*T PRER+;ATI:ES
The e'ercise of (ana#e(ent prero#ati%e is not absol)te b)t s)b4ect to the li(itations i(posed by law or by C0A,
e(ploy(ent contract, e(ployer policy or practice and #eneral principles of fair play and 4)stice.
1. R,-&/ /" H,!e -This is inherently a (ana#e(ent ri#ht beca)se it is not fo)nd in the Labor Code. .ence, it is
not a stat)tory ri#ht.
". R,-&/ /" P!"m"/e - Pro(otion is the Mad%ance(ent fro( one position to another with an increase in d)ties
and responsibilities as a)thori;ed by law, and )s)ally acco(panied by an increase in salary.M
U Consent here is re<)ired.
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6. R,-&/ /" Dem"/e - De(otion (eans the (o%e(ent fro( one position to another with a di(in)tion in d)ties
andBor stat)s or rank, not necessarily with a red)ction in salary. De(otion necessitates the iss)ance of a
notification for de(otion for ca)se.
U 7t (ay be e'ercised by an e(ployer when the interests of the e(ployer reasonably de(and s)b4ect to
the followin# li(itationsC
a.= 7t ()st not be e'ercised arbitrarily, capricio)sly or whi(sically.
b.= 7t ()st be for a ca)se
c.= 7t ()st pass the test of reasonableness, e<)ity and #ood faith.
U 2ail)re on these re<)ire(ents (ay a(o)nt to ille#al or constr)cti%e dis(issal, as the case (ay be. 7t is
e%en (ore so if the de(otion is not part of the co(pany policy.
. R,-&/ /" T!ans.e! - Transfer is a M(o%e(ent fro( one position to another which is of e<)i%alent rank, le%el
or salary, witho)t break in ser%ice.
U This ri#ht can be challen#ed if it is e'ercised arbitrarily or capricio)sly or in the absence of #ood faith.
U Consent here on the part of the e(ployee is not re<)ired since this can only be e'ercised by the
(ana#e(ent in accordance with best interest of the co(pany by tryin# to see where a partic)lar
e(ployee can be best (a'i(i;ed.
U Transfer is reasonable if there is a need to a)#(ent work force beca)se of a work assi#n(ent.
ReB2,s,/es ."! a :a1,d T!ans.e!:
a.= *easonable or it ()st ha%e a so)nd p)rpose.
b.= Con%enience or welfare of the e(ployee.
c.= $ot pre4)dicial to the e(ployee
d.= $ot in%ol%e a de(otion of rank or stat)s or a di(in)tion of the e(ployee8s salary, benefits and other
benefits.
/iolation of the abo%e re<)ire(ents a(o)nts to constr)cti%e dis(issal.
,. R,-&/ /" D,sm,ss
U 7t is a ri#ht to on the (ana#e(ent as a (eas)re of self-protection on the part of the e(ployer a#ainst all
acts ini(ical to its interest. 7t is not si(ply a prero#ati%e b)t a ri#ht beca)se it is fo)nd in the Labor
Code.
+THERS:
a. *eor#ani;ation and abolition of positions
b. 5arly retire(ent pro#ra(
c. /ol)ntary resi#nation pro#ra(
d. 9ob e%al)ation pro#ra(
E$PL+A$E*T P+LICIES and STIP5LATI+*S
a. *estricti%e co%enant cla)ses
b. $on-co(petin# cla)se and co(petiti%e e(ploy(ent ban -
c. $o spo)se e(ploy(ent policy ! to a%oid conflict of interest
14. TER$I*ATI+* +0 E$PL+A$E*T
E$PL+AERHS RI;HT T+ DISCIPLI*E

U *i#ht to Discipline.
The e(ployer8s ri#ht to cond)ct the affairs of his b)siness, accordin# to its own discretion and 4)d#(ent,
incl)des the prero#ati%e to instill discipline in its e(ployees and to i(pose penalties, incl)din# dis(issal, )pon
errin# e(ployees. This is a (ana#e(ent prero#ati%e where the free will of (ana#e(ent to cond)ct its own
affairs to achie%e its p)rpose takes for(. The only criterion to #)ide the e'ercise of its (ana#e(ent prero#ati%e
is that the policies, r)les and re#)lations on work-related acti%ities of the e(ployees ()st always be fair and
reasonable and the correspondin# penalties, when prescribed, co((ens)rate to the offense in%ol%ed and to the
de#ree of the infraction. A&t. Michael8s 7nstit)te %s. &antos, F. *. $o. 1,"E>, Dec. , ">>1J Consolidated 2ood
Corporation %s. $*LC, 61, &C*A 1"9, 169 W1999X=.
7nstillin# discipline a(on# its e(ployees is a basic (ana#e(ent ri#ht and prero#ati%e. Mana#e(ent (ay
lawf)lly i(pose reasonable penalties s)ch as dis(issal )pon an e(ployee who trans#resses the co(pany r)les
and re#)lations. ADeles, 9r. %s. $L*C, F. *. $o. 1"16E, March 9, ">>>=.
The e(ployer cannot be co(pelled to (aintain in his e(ploy the )ndeser%in#, if not )ndesirable,
e(ployees. A&hoe(art, 7nc. %s. $L*C, F. *. $o. 7""9, A)#. 11, 19E9=.
DIS$ISSAL
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A.= A%/2a1 D,sm,ssa1
0.= C"ns/!2%/,#e D,sm,ssa1 - act of <)ittin# beca)se contin)ed e(ploy(ent is rendered i(possible,
)nreasonable or )nlikely as in the case of an offer in%ol%in# a de(otion in rank and a di(in)tion in pay.
;R+5*DS 0+R TER$I*ATI+* +0 E$PL+A$E*T
A./ C'S3 *A'S$S .Art. "&"/
1. &erio)s Miscond)ct
". 3illf)l disobedience B Fross and habit)al ne#lect of d)ties
6. 2ra)d and 3illf)l breach or offense
. Co((ission of a cri(e or offense
,. 1ther analo#o)s ca)ses
Se!,"2s $,s%"nd2%/
U The act co(plained of ()st be related to the perfor(ance of the d)ties of the e(ployee s)ch as wo)ld
show that the e(ployee concerned is )nfit to contin)e workin# with the e(ployer.
The i(portant ele(ent is that the act ()st be co((itted in relation to the e(ployee8s work.
5le(entsC
a. an i(proper act
b. willf)l in nat)re
c. of a #ra%e and a##ra%ated character
d. work related
W,11.21 D,s"bed,en%e
U To constit)te disobedience, the e(ployee8s cond)ct ()st be willf)l or intentional.
7t is characteri;ed by a wron#f)l and per%erse (ental attit)de renderin# the e(ployee8s act inconsistent with
the proper s)bordination.
The orders, re#)lation or instr)ction of the e(ployer a#ainst which the e(ployee willf)lly disobeys ()st beC
a. reasonable and lawf)l
b. refers both to the kinds and character of the direction and co((ands and the (anner in
which they are (ade of #i%en
c. s)fficiently known to the e(ployee
d. in connection with the d)ties which the e(ployee has been en#a#ed to dischar#e
;!"ss *e-1e%/ ! (eans an absence of that dili#ence which an ordinary (an wo)ld )se in his own affairs. 7t
()st be both and habit)al b)t in 2)entes %s. nlrc, the &C held that #ross ne#li#ence s)ffices.
0!a2d and W,11.21 B!ea%& ". T!2s/
0!a2d - any act or o(ission or conceal(ent which in%ol%es a breach of le#al d)ty, tr)st and confidence
4)stly reposed, and is in4)rio)s to another.
M)st be co((itted a#ainst the e(ployer or representati%e and in connection with the e(ployee8s work.
The position i(posed ()st be i(posed with tr)st and confidence.
The breach co((itted by an e(ployee a#ainst third persons not in connection with his work and which does
not in%ol%e his e(ployer is not a #ro)nd for the dis(issal. 7t i(plies willf)lness or wron#f)l intent, an
innocent non-disclos)re of facts by the e(ployee done to the e(ployee will not constit)te 4)st ca)se for the
dis(issal.
5le(entsC
a. the breach ()st be work-relatedJ and
b. the position ()st be i(pressed with tr)st and confidence Ae(ployee has c)stody o%er the f)nds, (oney or
other property of the co(pany=
Im"!/an/: Mana#e(ent has wider discretion in ter(inatin# e(ployees holdin# position i(pressed with tr)st
and confidence.
0reach is said to be willf)l if intentional, if done knowin#ly, deliberately and witho)t 4)stifiable e'c)se.
C"mm,ss,"n ". a C!,me "! an +..ense
U Con%iction is not necessary to effect ter(ination on this #ro)nd.
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U The <)ant)( of e%idence is (erely s)bstantial e%idence.
+/&e! Ana1"-"2s Ca2ses
U These are ca)ses that are in one or (ore respects si(ilar to the abo%e-(entioned ca)ses, and ha%e been
deli%ered by the &C. The followin# were held to be 4)st ca)ses.
1. Aband"nmen/ - prolon#ed absence is not alone a s)fficient basis to say that an e(ployee has abandoned
his work. Absences ()st also fall )nder #ross and habit)al ne#lect. The i((ediate filin# of a co(plaint for ille#al
dis(issal a#ainst an e(ployer, with a prayer for reinstate(ent ne#ates the e(ployees8 intent to abandon his 4ob.
*e<)isitesC
a. 2ail)re to report for work or absence witho)t any %alid or 4)stifiable reasonJ and
b. Clear intention to se%er the e(ployee-e(ployer relationship.
". &e')al .arass(ent
6. Fross 7nefficiency or Poor Perfor(ance
. Dr)# :se or Ab)se A*A 91+,=
,. Attit)de Proble( AAnalo#o)s to breach of tr)st reposed=
+. Conflict of 7nterest
7. Lack of Co((on &ense
8./ A'362R1E$+ *A'S$S .Art. "&3/
1. 7nstallation of Labor-&a%in# De%ices
". *ed)ndancy
6. *etrench(ent to Pre%ent Losses
. Closin# or Cessation of 1peration of the 5stablish(ent or :ndertakin# :$L5&& the closin# is for the
p)rpose of circ)(%entin# the pro%isions of law.
+THER A5TH+RIFED CA5SES:
,. Total and Per(anent Disability of An 5(ployee
+. Disease $ot C)rable in &i' Months
7. /alid Application of a :nion &ec)rity Cla)se
E. 5'piration of Period in Ter( 5(ploy(ent
9. Co(pletion of Pro4ect in Pro4ect 5(ploy(ent
1>. 2ail)re in Probation
11. &ale A(o)ntin# to Clos)re of 0)siness
1". *elocation of 0)siness to a Distant Place
16. Defiance of *et)rn-to-3ork 1rder
1. Co((ission of 7lle#al Acts in a &trike
1,. $on-feasible *einstate(ent
1+. 2loatin# &tat)s or 1ff-Detail 0eyond &i' Months
17. *esi#nation
1E. /iolation of a Contract)al Co((it(ent e.#. bein# a cons)ltant to a co(petitor
19. *etire(ent
">. Death of e(ployee
Ins/a11a/,"n ". Lab"!?Sa#,n- De#,%es

U *ed)ction of the n)(ber of workers in a co(pany8s factory (ade necessary by the introd)ction of
(achinery in the (an)fact)re of its prod)cts is 4)stified. There can be no <)estion as to the ri#ht of the
(an)fact)rer to )se new labor-sa%in# de%ices with a %iew to effectin# (ore econo(y and efficiency in its
(ethod of prod)ction.
Red2ndan%y
U *ed)ndancy e'ists where the ser%ices of an e(ployee are in e'cess of what is reasonably de(anded by
the act)al re<)ire(ent of the enterprise.
U The followin# are the ca)ses of red)ndancyC
o 1%er-hirin# of workers
o Decreased %ol)(e of b)siness
o Droppin# of a partic)lar prod)ct line
o &trea(linin# of operations
o Lack of de(and for prod)cts
Re/!en%&men/ /" P!e#en/ L"sses
ReB2,s,/es ."! a :a1,d Re/!en%&men/:
a. The retrench(ent is necessary to pre%ent losses and s)ch losses are pro%enJ
b. 3ritten notice to the e(ployees and to the Depart(ent of Labor and 5(ploy(ent at least one (oth prior to
the intended date of retrench(entJ and
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c. Pay(ent of separation pay e<)i%alent to one (oth pay or at least L (onth pay for e%ery year of ser%ice,
whiche%er is hi#her.
0"2! S/anda!ds ". Re/!en%&men/:

a. The losses e'pected sho)ld be s)bstantial and not (erely de (ini(is in e'tent.
b. The s)bstantial loss apprehended ()st be reasonably i((inent, as s)ch i((inence can be percei%ed
ob4ecti%ely and in #ood faith by the e(ployer.
c. *etrench(ent ()st be reasonably necessary and likely to effecti%ely pre%ent the e'pected losses.
d. Alle#ed losses, if already reali;ed, and the e'pected i((inent losses so)#ht to be forestalled, ()st be
pro%en by s)fficient and con%incin# e%idence.
C1"s2!e ". B2s,ness
U Clos)re of b)siness is allowed whether or not the b)siness is losin#. 7f the b)siness is not losin# b)t its
owner, for reasons of his own, wants to #et o)t of the b)siness, he in #ood faith can lawf)lly do so anyti(e.
9)st as no law forces anyone to #o into b)siness, no law co(pels anybody to stay in b)siness.
U The pre%ailin# r)le now is that in case of clos)re d)e to serio)s b)siness losses, then the e(ployer is not
)nder any obli#ation to #i%e its e(ployees separation pay.
A,1men/ "! D,sease
ReB2,s,/es:

a. The e(ployee s)ffers fro( a disease and his contin)ed e(ploy(ent is prohibited by law or pre4)dicial to his
health or to the health of his co-e(ployees.
b. There is a certification by a co(petent p)blic health a)thority that the disease is of s)ch nat)re or at s)ch a
sta#e that is cannot be c)red within a period of si' (onths e%en with proper (edical treat(ent.
TER$I*ATI+* +0 ACADE$IC PERS+**EL AMan)al of *e#)lation of Pri%ate &chools shall #o%ern and
s)ppletorily by the Labor Code=
U &ection 9 A"= of the Man)al of *e#)lation of Pri%ate &choolsC
1. Dis#racef)l or 7((oral Cond)ct
7((oral Cond)ct - any act that is ini(ical to the p)blic welfare and policy as e'pressed in law.
Dis#racef)l Cond)ct - that which is sha(ef)l, scandalo)s, or dishonorable.
". Fross 7nefficiency and 7nco(petence in the Perfor(ance of D)ties
6. $e#li#ence in Ieepin# &chool and &t)dent *ecords or Ta(perin# with or 2alsification of These *ecords
. 0ein# $otorio)sly :ndesirable.
,. &ellin# of Tickets or Collection of Any Contrib)tion in Any 2or( or for Any P)rpose or Pro4ects 3hatsoe%er,
whether %ol)ntary or otherwise 5DC5PT Firl or 0oy &co)t Me(bership 2ees a(on# others
REL5ISITES 0+R :ALID TER$I*ATI+*
1. Proced)ral *e<)ire(entsJ A$D
". &)bstantial *e<)ire(ents s)ch as the e'istence of a 4)st or a)thori;ed ca)se
85ST CA5SES 6D.+. *". ( Iss2ed 82ne 21' 1((77
1. 3ritten notice ser%ed on the e(ployee specifyin# the #ro)nd for ter(ination, and #i%in# to s)ch e(ployee
reasonable opport)nity within which to e'plain his side. Wr)le DD777, section 1 Aa= X
". 3ritten notice of ter(ination ser%ed on the e(ployee indicatin# that )pon d)e consideration of all the
circ)(stances, #ro)nds ha%e been established to 4)stify his ter(ination. Wr)le DD777, section " A1= Ab=X
There ()st be a hearin# or conference d)rin# which the e(ploy(ent concerned, with the assistance of
co)nsel if the e(ployee so desires, so that he (ay be #i%en an opport)nity to respond to the char#e, present his
e%idence or reb)t the e%idence presented a#ainst hi(.
As lon# as the s)bstanti%e re<)ire(ents are co(plied with, the ter(ination is %alid, b)t defecti%e. The
e(ployer (ay be held liable for inde(nity in the for( da(a#es, for not ha%in# co(plied with the proced)ral
aspect of d)e process. 7f only the proced)ral re<)ire(ents and not the s)bstantial re<)ire(ents are co(plied
with, the dis(issal is in%alid and ille#al. 7t is a depri%ation of an e(ployee of his ri#ht to d)e process.
A5TH+RIFED CA5SES
1. &er%e a written notice )pon the worker at least one (onth before the intended date of the ter(ination. D.1.
$o. 9 states P6> days.Q
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This is to infor( the e(ployee of the i(pendin# loss of his e(ploy(ent, th)s enable hi( to look for a
fallback position at the earliest opport)nity.
". &er%e a written notice )pon the Depart(ent of Labor and 5(ploy(ent at least one (onth or 6> days before
the intended date thereof.
This is in order for the D1L5 toC
a. Deter(ine the %alidity of the dis(issalJ and
b. To inter%ene for a possible conciliation or (ediation
6. To #i%e &eparation Pay where warranted or applicable.
PRE:E*TI:E S5SPE*SI+*
U The ri#ht to i(pose pre%enti%e s)spension is a (ana#e(ent prero#ati%e altho)#h it is not fo)nd in the LC. 7t
is fo)nd in its i(ple(entin# and re#)lations.
:a1,d S2sens,"n:
7f the e(ployees contin)ed e(ploy(ent poses a serio)s and i((inent threat to the life and or property of
the e(ployer or of his co-workers. Asection 6, r)le D7/, book /=
7t is not a for( of penaltyJ it is (ore of a protecti%e (eas)re )ndertaken by the e(ployer. 1ne cannot
i(pose a penalty beca)se the e(ployee cannot be p)nished witho)t d)e process. 7n practice, pre%enti%e
s)spension notice sho)ld be in writin#.
Ma'i()( PeriodC 6> days
The e(ployer shall thereafter
a= *einstate the worker in his for(er or in a s)bstantially e<)i%alent positionJ or
b= The e(ployer (ay e'tend the period of s)spension, pro%ided that d)rin# the period of e'tension,
he pays the wa#es and other benefits d)e to the worker concerned. 7n s)ch a case, the worker
shall not be bo)nd to rei(b)rse the a(o)nt paid to hi( d)rin# the e'tension if the e(ployer
decides, after co(pletion of the hearin#, to dis(iss the worker.
D5E PR+CESS
1. A!/,%1e 277 6b7
&)b4ect to the constit)tional ri#ht of workers to sec)rity of ten)re and their ri#ht to be protected a#ainst
dis(issal e'cept for a 4)st and a)thori;ed ca)se and witho)t pre4)dice to the re<)ire(ent of notice )nder Article
"E6 of this Code, the e(ployer shall f)rnish the worker whose e(ploy(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)nity to be
heard and to defend hi(self with the assistance of his representati%e if he so desires in accordance with
co(pany r)les and re#)lations pro()l#ated p)rs)ant to #)idelines set by the Depart(ent of Labor and
5(ploy(ent. Any decision taken by the e(ployer shall be witho)t pre4)dice to the ri#ht of the workers to contest
the %alidity or le#ality of his dis(issal by 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(ployer.
The &ecretary of the Depart(ent of Labor and 5(ploy(ent (ay 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# by the appropriate official of the Depart(ent
of Labor and 5(ploy(ent before who( s)ch disp)te is pendin# that the ter(ination (ay ca)se a serio)s labor
disp)te or is in i(ple(entation of a (ass layoff.
2. Se%/,"n 1' A!/,%1e III' 1()7 C"ns/,/2/,"n
$o person shall be depri%ed of life, liberty and property witho)t d)e process of law.
E00ECT +R C+*SEL5E*CES +0 :ALID DIS$ISSAL
Feneral *)leC 3hen an e(ployee is dis(issed and the dis(issal co(plies with both s)bstanti%e and proced)ral d)e
process, separation pay is not #i%en.
5'ceptionC 7f one is dis(issed based on a 4)st ca)se, and s)ch ca)se does not constit)te serio)s (iscond)ct nor
reflect the e(ployees8 (oral character, &eparation pay (ay be %alidly awarded to the e(ployee concern. This is
called the D7&C5*$7$F C1MPA&&71$ D1CT*7$5.
U The award of &eparation Pay is called a 27$A$C7AL A&&7&TA$C5 and is awarded based on e<)ity. 7t is a
(eas)re of social 4)stice where the e(ployee is %alidly dis(issed for ca)ses not constit)tin# serio)s
(iscond)ct or those reflectin# on his (oral character.
U 7n (ost cases, the &)pre(e Co)rt awarded financial assistance e<)i%alent to one-half (onth pay for e%ery
year of ser%ice.
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U 85ST CA5SE - &eparation pay, in lie) of reinstate(ent, shall incl)de the a(o)nt e<)i%alent at least to one
A1= (onth salary or to one A1= (onth salary for e%ery year of ser%ice, whiche%er is hi#her, a fraction of at
least si' A+= (onths bein# considered as one A1= whole year incl)din# re#)lar allowances. 7f not re#)lar, not
incl)ded.
U A5TH+RIFED CA5SE ! &eparation pay is as followsC
a= 7n case of ter(ination d)e to the installation of labor-sa%in# de%ices or red)ndancy, the worker
affected thereby shall be entitled to a separation pay e<)i%alent to at least one A1= (onth pay
or to at least one A1= (onth pay for e%ery year of ser%ice, whiche%er is hi#her.
b= 7n 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 pay shall be e<)i%alent to one A1= (onth pay or at least one-half A1B"= (onth pay for
e%ery year of ser%ice, whiche%er is hi#her. A fraction of at least si' A+= (onths shall be
considered one A1= whole year.
c= 7n cases of clos)res or cessation of operations of establish(ent or )ndertakin# d)e to serio)s
b)siness losses or financial re%erses, there shall be no separation pay.
E00ECT +R C+*SEL5E*CES +0 ILLE;AL DIS$ISSAL
U Article "79, LCC 7n cases of re#)lar e(ploy(ent, the e(ployer shall not ter(inate the ser%ices of an
e(ployee e'cept for a 4)st ca)se or when a)thori;ed by this Title. An e(ployee who is )n4)stly dis(issed
fro( work shall be entitled to reinstate(ent witho)t loss of seniority ri#hts and other pri%ile#es and to his f)ll
backwa#es, incl)si%e of allowances, and to his other benefits to their (onetary e<)i%alent co(p)ted fro(
the ti(e his co(pensation was withheld fro( hi( )p to the ti(e of his act)al reinstate(ent.
U 7n a host of cases, the co)rt has )pheld the e(ployee8s ri#ht to sec)rity of ten)re in the face of oppressi%e
(ana#e(ent beha%ior and (ana#e(ent prero#ati%e. &ec)rity of ten)re is a ri#ht which (ay not be denied
on (ere spec)lation of any )nclear and neb)lo)s basis.
RI;HTS +0 A* ILLE;ALLA DIS$ISSED E$PL+AEE
1. 0ackwa#es - the salary that the e(ployee wo)ld ha%e earned had he no been ille#ally dis(issed. 7t is
co(p)ted fro( the date of the ille#al dis(issal )p to the date of the ille#al dis(issal )p to the date of the
e(ployee8s act)al reinstate(ent.
". *einstate(ent or separation pay incase reinstate(ent is no lon#er feasible
Feneral *)leC *estoration of the e(ployee to his pre%io)s position or to a s)bstantially e<)i%alent position
witho)t loss of seniority ri#hts and other pri%ile#es.
5'ceptionsC
a. strained relationship
b. it is le#ally or physically i(possible
c. beca)se of s)per%enin# e%ents
d. when e(ployee %ol)ntarily opts to be awarded separation pay
6. Da(a#es partic)larly (oral and e'e(plary where warranted
C+RP+RATE +00ICERS
U Three A6= officers which a corporation ()st ha%e )nder the stat)teC president, secretary, and treas)rer.
.owe%er, the law does not li(it corporate officers to these three. &ection ", of the Corporation Code #i%es
corporations the widest latit)de to pro%ide for s)ch other offices, as they (ay dee( necessary. The by-laws
(ay and )s)ally do pro%ide for s)ch other officers, e.#., %ice president, cashier, a)ditor, and #eneral
(ana#er. Conse<)ently, the &)pre(e Co)rt has held that one who is incl)ded in the by-laws of a
corporation in its roster of corporate officers is an officer of said corporation and not a (ere e(ployee.
Persons LiableC

Art. "E9. 3ho are liable when co((itted by other than nat)ral person. - 7f the offense is co((itted by a
corporation, tr)st, fir(, partnership, association or any other entity, the penalty shall be i(posed )pon the
#)ilty officer or officers of s)ch corporation, tr)st, fir(, partnership, association or entity.
0P +E ACorporation Code of the Philippines=
S"$. ;G. L#(1#*#0 of +#r"$or', r,'""' or off#$"r'. 4 D#r"$or' or r,'""' )!o )#**f,**0 (&+ /&o)#&.*0 8o" for or (''"& o
%("&*0 ,&*()f,* ($' of !" $or%or(#o& or )!o (r" .,#*0 of .ro'' &".*#."&$" or 1(+ f(#! #& +#r"$#&. !" (ff(#r' of !"
$or%or(#o& or ($5,#r" (&0 %"r'o&(* or %"$,&#(r0 #&"r"' #& $o&f*#$ )#! !"#r +,0 (' ',$! +#r"$or' or r,'""' '!(** 1"
*#(1*" Ao#&*0 (&+ '"8"r(**0 for (** +(m(."' r"',*#&. !"r"from ',ff"r"+ 10 !" $or%or(#o&, #' 'o$/!o*+"r' or m"m1"r'
(&+ o!"r %"r'o&'.
Feneral *)leC 1fficers of a corporation are not personally liable for their official acts )nless it is shown that they ha%e
e'ceeded their a)thority.
5'ceptionsC
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a= M3here the incorporators and directors belon# to a sin#le fa(ily, the corporation and its (e(bers
can be considered as one in order to a%oid its bein# )sed as an instr)(ent to co((it in4)stice,M or to f)rther
an end s)b%ersi%e of 4)stice.
b= 7n the case of Claparols %s. C7* in%ol%in# al(ost si(ilar facts as in this case, it was also held that
the shield of corporate fiction sho)ld be pierced when it is deliberately and (alicio)sly desi#ned to e%ade
financial obli#ations to e(ployees.
:nless they ha%e e'ceeded their a)thority, corporate officers are, as a #eneral r)le, not personally liable for
their official acts, beca)se a corporation, by le#al fiction, has a personality separate and distinct fro( its officers,
stockholders and (e(bers. .owe%er, this fictional %eil (ay be pierced whene%er the corporate personality is
)sed as a (eans of perpet)atin# a fra)d or an ille#al act, e%adin# an e'istin# obli#ation, or conf)sin# a
le#iti(ate iss)e. 7n cases of ille#al dis(issal, corporate directors and officers are solidarily liable with the
corporation, where ter(inations of e(ploy(ent are done with (alice or in bad faith. A0o#o-Medellin &)#arcane
Planters Association %. $L*C, F.*. $o. 97E+ &epte(ber ",, 199E=
15. S5SPE*SI+* +0 B5SI*ESS +PERATI+*S
BASIS
U Article "E+C 5(ploy(ent is dee(ed not ter(inated when there isC
1. 0ona-fide s)spension by the e(ployer of the operation of his b)siness or )ndertakin# for a period not
e'ceedin# si' A+= (onthsJ
". 2)lfill(ent by the e(ployee of a (ilitary d)tyJ or
6. 2)lfill(ent by the e(ployee of a ci%ic d)ty.
U &ec .1", *)le, 0ook /7C
The e(ployer-e(ployee relationship shall be dee(ed s)spended in case of s)spension of operation of the
b)siness or )ndertakin# of the e(ployer for a period not e'ceedin# si' A+= (onths, )nless the s)spension is for
the p)rpose of defeatin# the ri#hts of the e(ployees )nder the Code, and in case of (andatory f)lfill(ent by the
e(ployee of a (ilitary or ci%ic d)ty.
The pay(ent of wa#es of the e(ployee as well as the #rant of other benefits and pri%ile#es while he is on a
(ilitary or ci%ic d)ty shall be s)b4ect to special laws and decrees and to the applicable indi%id)al or collecti%e
bar#ainin# a#ree(ent and %ol)ntary e(ployer practice or policy.
E00ECT +* E$PL+A$E*T STAT5S
Co(pensation of 5(ployees d)rin# the &i'-(onth &)spension
U 5(ployees are not entitled to their wa#es and benefits d)rin# the +-(onth period. The reason is, within the
said period, the e(ployer-e(ployee relationship is dee(ed s)spended. The e(ploy(ent relationship bein#
s)spended, both the e(ployer and the e(ployees cease to be bo)nd, at least te(porarily, by the basic
ter(s and conditions of their e(ploy(ent contract - the e(ployer re#ardin# his obli#ation to pro%ide salary
to his workersJ and on the part of the workers, to pro%ide their ser%ices to the for(er.
5ffect of &)spension of 3ork 5'ceedin# + Months
U 7n the ">>, case of Mayon .otel ? *esta)rant %s. Adana, WF. *. $o. 1,7+6, May 1+, ">>,X, the .i#h Co)rt
declared that Article "E+ is clear - there is ter(ination of e(ploy(ent when an otherwise bona fide
s)spension of work e'ceeds si' A+= (onths. Moreo%er, e%en ass)(in# ar#)endo that the cessation of
e(ploy(ent on April 1997 was (erely te(porary when hotel operations were s)spended d)e to the
ter(ination of the lease of the old pre(ises, it beca(e dis(issal by operation of law when petitioners failed
to reinstate respondents after the lapse of si' A+= (onths, p)rs)ant to Article "E+. And e%en ass)(in# that
the clos)re was d)e to a reason beyond the control of the e(ployer, it still has to accord its e(ployees
so(e relief in the for( of se%erance pay.
5ffect of 5(ploy(ent of the 5(ployee in 1ther 5stablish(ents d)rin# +-Month Period
U 7n the ">>, case of 9PL Marketin# Pro(otions %s. CA, WF. *. $o. 1,19++, 9)ly E, ">>,X, it was established
that pri%ate respondent-e(ployees so)#ht e(ploy(ent fro( other establish(ents e%en before the
e'piration of the si' A+=-(onth period pro%ided by law. They ad(itted that all three of the( applied for and
were e(ployed by another establish(ent after they recei%ed the notice fro( 9PL. Conse<)ently, it was held
that petitioner 9PL cannot be said to ha%e ter(inated their e(ploy(ent for it was they the(sel%es who
se%ered their relations with 9PL. Th)s, they are not entitled to separation pay, e%en on the #ro)nd of
co(passionate 4)stice. Clearly, the principle in the law which #rants separation pay applies only when the
e(ployee is dis(issed by the e(ployer, which is not the case in this instance. 7n seekin# and obtainin#
e(ploy(ent elsewhere, pri%ate respondents effecti%ely ter(inated their e(ploy(ent with 9PL.
A*AL+;+5S SIT5ATI+*
U There is no law on te(porary retrench(ent or lay-off, Article "E+ applies only by analo#y.
U &)spension of operation (ay in%ol%e only a section or depart(ent of the co(pany and not necessarily the
entire operations.
U The b)rden to pro%e bona-fide s)spension of operation is on the e(ployer.
DISTI*;5ISH .!"m ST+PPA;E ". W+RD +R S5SPE*SI+* ". +PERATI+*
U Art. 1"EAc=
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The &ecretary of Labor and 5(ploy(ent (ay likewise order stoppa#e of work or s)spension of operations
of any )nit or depart(ent of an establish(ent when there is non-co(pliance with the law or i(ple(entin# r)les
and re#)lations poses #ra%e and i((inent dan#er to the health and safety of workers in the workplace.
3ithin twenty-fo)r ho)rs, a hearin# shall be cond)cted to deter(ine whether an order for the stoppa#e of
work or s)spension of operations shall be lifted or not.
7n case the %iolation is attrib)table to the fa)lt of the e(ployer, he shall pay the e(ployees concerned their
salaries or wa#es d)rin# the period of s)ch stoppa#e of work or s)spension of operation.
TE$P+RARA +R PERI+DIC SH5TD+W* and TE$P+RARA CESSATI+* +0 W+RD
U &ection 7, *)le 7/, 0ook 777
Te(porary or periodic sh)tdown and te(porary cessation of work.
Aa= 7n cases of te(porary or periodic sh)tdown and te(porary cessation of work of an establish(ent, as
when a yearly in%entory or when the repair or cleanin# of (achineries and e<)ip(ent is )ndertaken, the
re#)lar holidays fallin# within the period shall be co(pensated in accordance with this *)le.
Ab= The re#)lar holiday d)rin# the cessation of operation of an enterprise d)e to b)siness re%erses as
a)thori;ed by the &ecretary of Labor and 5(ploy(ent (ay not be paid by the e(ployer.
NTo%#$' No. G=4G? (r" m#''#&.O
1(. 85RISDICTI+* +0 THE LAB+R ARBITER
+RI;I*AL and E9CL5SI:E 85RISDICTI+* +0 LA
U Art. "17 9)risdiction of Labor Arbiters and the Co((ission. !
Aa= 5'cept as otherwise pro%ided )nder this Code, the Labor Arbiters shall ha%e ori#inal and e'cl)si%e
4)risdiction to hear and decide, within thirty A6>= calendar days after the s)b(ission of the case by the
parties for decision witho)t e'tension, 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)ralC
1. :nfair labor practice casesJ
". Ter(ination disp)tesJ
6. 7f acco(panied with a clai( for reinstate(ent, those cases that workers (ay file in%ol%in# wa#es,
rate of pay, ho)rs of work and other ter(s and conditions of e(ploy(entJ
. Clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es arisin# fro( the e(ployer-e(ployee
relationsJ
,. Cases arisin# fro( any %iolation of Article "+ of this Code, incl)din# <)estions in%ol%in# the le#ality
of strikes and locko)tsJ and
+. 5'cept clai(s for e(ployees co(pensation, social sec)rity, (edicare and (aternity benefits, all
other clai(s arisin# fro( e(ployer-e(ployee relations, incl)din# those of persons in do(estic or
ho)sehold ser%ice, in%ol%in# an a(o)nt e'ceedin# fi%e tho)sand pesos AP,,>>>.>>=, whether or not
acco(panied with a clai( for reinstate(ent.
Ab= The Co((ission shall ha%e e'cl)si%e appellate 4)risdiction o%er all cases decided by Labor Arbiters.
Ac= 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(pany personnel policies shall be disposed of by the
Labor Arbiter by referrin# the sa(e to the #rie%ance (achinery and %ol)ntary arbitration as (ay be
pro%ided in said a#ree(ents. AAs a(ended by *A +71,=
U AppealC $L*C, then CA A&pecial Ci%il Action )nder *)le +,=, then &C ACertiorari )nder *)le ,=
SC+PE +0 85RISDICTI+* 6!e.e! /" a 1?6 ab"#e7
C+*C5RRE*T 85RISDICTI+* ". +THER A;E*CIES
U Art. 1"EC /isitorial and enforce(ent powers. !
Aa= The &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%es, incl)din# labor
re#)lations officers, shall ha%e access to e(ployerOs records and pre(ises at any ti(e of the day or
ni#ht whene%er work is bein# )ndertaken therein, and the ri#ht to copy therefro(, to <)estion any
e(ployee and to in%esti#ate any fact, condition or (atter which (ay be necessary to deter(ine
%iolations or which (ay aid in the enforce(ent of this Code and of any labor law, wa#e order or r)les
and re#)lations iss)ed p)rs)ant thereto.
Ab= The pro%isions of Article "17 of this Code to the contrary notwithstandin# and in cases where the
relationship of e(ployer-e(ployee still e'ists, the &ecretary of Labor and 5(ploy(ent or his d)ly
a)thori;ed representati%es shall ha%e the power to order and ad(inister, after d)e notice and hearin#,
co(pliance with the labor standards pro%isions of this Code and other labor le#islation based on the
findin#s of labor re#)lation officers or ind)strial safety en#ineers (ade in the co)rse of inspection, and
to iss)e writs of e'ec)tion to the appropriate a)thority for the enforce(ent of their order, e'cept in
cases where the e(ployer contests the findin#s of the labor re#)lation officer and raises iss)es which
cannot be resol%ed witho)t considerin# e%identiary (atters that are not %erifiable in the nor(al co)rse
of inspection.
Ac= The &ecretary of Labor and 5(ploy(ent (ay likewise order stoppa#e of work or s)spension of
operations of any )nit or depart(ent of an establish(ent when non-co(pliance with the law or
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i(ple(entin# r)les and re#)lations poses #ra%e and i((inent dan#er to the health and safety of
workers in the workplace. 3ithin twenty-fo)r ho)rs, a hearin# shall be cond)cted to deter(ine whether
an order for the stoppa#e of work or s)spension of operations shall be lifted or not. 7n case the %iolation
is attrib)table to the fa)lt of the e(ployer, he shall pay the e(ployees concerned their salaries or wa#es
d)rin# the period of s)ch stoppa#e of work or s)spension of operation.
Ad= 7t shall be )nlawf)l for any person or entity to obstr)ct, i(pede, delay or otherwise render ineffecti%e the
order of the &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%es iss)ed p)rs)ant
to the a)thority #ranted )nder this Article, and no inferior co)rt or entity shall iss)e te(porary or
per(anent in4)nction or restrainin# order or otherwise ass)(e 4)risdiction o%er any case in%ol%in# the
enforce(ent orders iss)ed in accordance with this Article.
Ae= Any #o%ern(ent e(ployee fo)nd #)ilty of %iolation of, or ab)se of a)thority )nder this Article shall, after
appropriate ad(inistrati%e in%esti#ation, be s)b4ect to s)((ary dis(issal fro( the ser%ice.
Af= The &ecretary of Labor and 5(ploy(ent (ay by appropriate re#)lations re<)ire e(ployers to keep and
(aintain s)ch e(ploy(ent records as (ay be necessary in aid of his %isitorial and enforce(ent powers
)nder this Code.
U Art. 1"9C *eco%ery of wa#es, si(ple (oney clai(s and other benefits. !
:pon co(plaint of any interested party, the *e#ional Director of the Depart(ent of Labor and
5(ploy(ent or any of the d)ly a)thori;ed hearin# officers of the Depart(ent is e(powered, thro)#h
s)((ary proceedin# and after d)e notice, to hear and decide any (atter in%ol%in# the reco%ery of wa#es
and other (onetary clai(s and benefits, incl)din# le#al interest, owin# to an e(ployee or person e(ployed
in do(estic or ho)sehold ser%ice or ho)sehelper )nder this Code, arisin# fro( e(ployer-e(ployee
relationsC Pro%ided, That s)ch co(plaint does not incl)de a clai( for reinstate(entC Pro%ided, f)rther, That
the a##re#ate (oney clai(s of each e(ployee or ho)sehelper do not e'ceed fi%e tho)sand pesos AP,,>>>=.
The *e#ional Director or hearin# officer shall decide or resol%e the co(plaint within thirty A6>= calendar days
fro( the date of the filin# of the sa(e. Any s)( th)s reco%ered on behalf of any e(ployee or ho)sehelper
p)rs)ant to this Article shall be held in a special deposit acco)nt, and shall be paid, on order of the
&ecretary of Labor and 5(ploy(ent or the *e#ional Director directly to the e(ployee or ho)sehelper
concerned. Any s)ch s)( not paid to the e(ployee or ho)sehelper, beca)se he cannot be located after
dili#ent and reasonable effort to locate hi( within a period of three A6= years, shall be held as a special f)nd
of the Depart(ent of Labor and 5(ploy(ent to be )sed e'cl)si%ely for the a(elioration and benefit of
workers.
ELE$E*TS ". ART. 12(:
1. The clai( is presented by an e(ployee or person e(ployed in do(esticB ho)sehold ser%ice or ho)se helperJ
". Clai( arises fro( e(ployer-e(ployee relationsJ
6. Clai(ant does not ask for reinstate(ent Aif there is reinstate(ent, LA=Jand
. The a##re#ate clai( of each e(ployee or ho)se helper does not e'ceed P,,>>>. Aif it e'ceeds, LA=.
U Art. "+1. 9)risdiction of %ol)ntary arbitrators and panel of %ol)ntary arbitrators. !
The %ol)ntary arbitrator or panel of %ol)ntary arbitrators shall ha%e ori#inal and e'cl)si%e 4)risdiction to
hear and decide all )nresol%ed #rie%ances arisin# fro( the interpretation or i(ple(entation of the collecti%e
bar#ainin# a#ree(ent and those arisin# fro( the interpretation or enforce(ent of co(pany personnel
policies referred to in the i((ediately precedin# Article.
Accordin#ly, %iolations of a collecti%e bar#ainin# a#ree(ent, e'cept 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
bar#ainin# a#ree(ent.
2or p)rposes of this Article, #ross %iolations of a collecti%e bar#ainin# a#ree(ent shall (ean fla#rant
andBor (alicio)s ref)sal to co(ply with the econo(ic pro%isions of s)ch a#ree(ent.
The Co((ission, its *e#ional 1ffices and the *e#ional Directors of the Depart(ent of Labor and
5(ploy(ent shall not entertain disp)tes, #rie%ances or (atters )nder the e'cl)si%e and ori#inal 4)risdiction
of the %ol)ntary arbitrator or panel of %ol)ntary arbitrators and shall i((ediately dispose and refer the sa(e
to the #rie%ance (achinery or %ol)ntary arbitration pro%ided in the collecti%e bar#ainin# a#ree(ent. AAs
added by *A +71,=
U Art. "+". 9)risdiction o%er other labor disp)tes. !
The %ol)ntary arbitrator or panel of %ol)ntary arbitrators, )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. AAs added by
*A +71,=
AppealC CA APetition for *e%iew )nder *)le 6=, then &C ACertiorari )nder *)le ,=
U Art. "+6.
A#= 3hen, in his opinion, there e'ists a labor disp)te ca)sin# or likely to ca)se a strike or locko)t in an
ind)stry indispensable to the national interest, the &ecretary of Labor and 5(ploy(ent (ay ass)(e
4)risdiction o%er the disp)te and decide it or certify the sa(e to the Co((ission for co(p)lsory arbitration.
&)ch ass)(ption or certification shall ha%e the effect of a)to(atically en4oinin# the intended or i(pendin#
strike or locko)t as specified in the ass)(ption or certification order. 7f one has already taken place at the
ti(e of ass)(ption or certification, all strikin# or locked o)t e(ployees shall i((ediately ret)rn to work and
the e(ployer shall i((ediately 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 &ecretary of Labor and 5(ploy(ent or the
Co((ission (ay 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 (ay iss)e to enforce the sa(e.
7n 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%ery e'tent possible, be
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a%oided, and all serio)s efforts, not only by labor and (ana#e(ent b)t #o%ern(ent as well, be e'ha)sted to
s)bstantially (ini(i;e, if not pre%ent, their ad%erse effects on s)ch life and health, thro)#h the e'ercise, howe%er
le#iti(ate, by labor of its ri#ht to strike and by (ana#e(ent to locko)t. 7n labor disp)tes ad%ersely affectin# the
contin)ed operation of s)ch hospitals, clinics or (edical instit)tions, it shall be the d)ty of the strikin# )nion or
lockin#-o)t e(ployer 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 necessary to ins)re the
proper and ade<)ate protection of the life and health of its patients, (ost especially e(er#ency cases, for the
d)ration of the strike or locko)t. 7n s)ch cases, therefore, the &ecretary of Labor and 5(ploy(ent (ay
i((ediately ass)(e, within twenty fo)r A"= ho)rs fro( knowled#e of the occ)rrence of s)ch a strike or locko)t,
4)risdiction o%er the sa(e or certify it to the Co((ission for co(p)lsory arbitration. 2or this p)rpose, the
contendin# parties are strictly en4oined to co(ply with s)ch orders, prohibitions andBor in4)nctions as are iss)ed
by the &ecretary of Labor and 5(ploy(ent or the Co((ission, )nder pain of i((ediate disciplinary action,
incl)din# dis(issal or loss of e(ploy(ent stat)s or pay(ent by the lockin#-o)t e(ployer 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 any ti(e and
ass)(in# 4)risdiction o%er any labor disp)te in s)ch ind)stries in order to settle or ter(inate the sa(e.
$I;RA*T W+RDERS A*D +:ERSEAS 0ILIPI*+ ACT 6RA )4427
&ec. 1>. Money Clai(s. ! $otwithstandin# any pro%ision of law to the contrary, the Labor Arbiters of the
$ational Labor *elations Co((ission A$L*C= shall ha%e the ori#inal and e'cl)si%e 4)risdiction to hear and
decide, within ninety A9>= calendar days after the filin# of the co(plaint, the clai(s arisin# o)t of an e(ployer-
e(ployee relationship or by %irt)e of any law or contract in%ol%in# 2ilipino workers for o%erseas deploy(ent
incl)din# clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es.
CI:IL DISP5TE :S LAB+R DISP5TE :S I*TRA?C+RP+RATE DISP5TE
U C7/7L D7&P:T5 A*5F:LA* C1:*T&=
7t is settled 4)rispr)dence that a ca)se of action has three ele(ents, to witC
1. a ri#ht in fa%or of the plaintiff by whate%er (eans and )nder whate%er law it arises or is createdJ
". an obli#ation on the part of the na(ed defendant to respect or not to %iolate s)ch ri#htJ and
6. an act or o(ission on the part of s)ch defendant %iolati%e of the ri#ht of the plaintiff or constit)tin# a
breach of the obli#ation of the defendant to the plaintiff.
LAB+R DISP5TE 6LA7
Art. "1" C
Al= MLabor disp)teM incl)des any contro%ersy or (atter concernin# ter(s or conditions of e(ploy(ent
or the association or representation of persons in ne#otiatin#, fi'in#, (aintainin#, chan#in# or arran#in# the
ter(s and conditions of e(ploy(ent, re#ardless of whether the disp)tants stand in the pro'i(ate relation of
e(ployer and e(ployee.
I*TRA?C+RP+RATE DISP5TE 6RTC7
7ntra-Corporate Disp)te - one which arises between a stockholder or corporate officers and a corporation.
Corporate 1fficer - are the president, %ice-president, secretary, treas)rer.
o Labor Arbiters ha%e no 4)risdiction o%er ter(ination of corporate officers and stockholders which, )nder
the law, is considered intra-corporate disp)te.
o 7t ()st be e(phasi;ed that a corporate officer8s dis(issal is always a corporate act andBor intra-
corporate contro%ersy and that nat)re is not altered by the reason or wisdo( which the 0oard of
Directors (ay ha%e in takin# s)ch action.
o The *e#ional Trial Co)rts Anot &5C= now ha%e 4)risdiction )nder *. A. E799 A&ec)rities *e#)lation Act
of ">>>=. 9)risdiction of *TC incl)des ad4)dication of (onetary clai(s of the corporate officer who was
dis(issed, As)ch as )npaid salaries, lea%es, 16th (onth pay, bon)ses, etc.=, da(a#es and attorneyOs
fees. ALo;on %s. $L*C, F. *. $o. 1>7++>, 9an. >", 199,, "> &C*A 1=
Case Law:
Article "+1 of the Labor Code accordin#ly pro%ides for e'cl)si%e ori#inal 4)risdiction of s)ch %ol)ntary
arbitrator or panel of arbitrators o%er A1= the interpretation or i(ple(entation of the C0A and A"= the interpretation
or enforce(ent of co(pany personnel policies. Article "+" a)thori;es the(, b)t only )pon a#ree(ent of the
parties, to e'ercise 4)risdiction o%er other labor disp)tes.
1n the other hand, a labor arbiter )nder Article "17 of the Labor Code has 4)risdiction o%er the followin#
en)(erated casesC
. . . Aa= 5'cept as otherwise pro%ided )nder this Code the Labor Arbiters shall ha%e ori#inal and e'cl)si%e
4)risdiction to hear and decide, within thirty A6>= calendar days after the s)b(ission of the case by the parties for
decision witho)t e'tension, 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)ralC
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6. 7f acco(panied with a clai( for reinstate(ent, those cases that workers (ay file in%ol%in# wa#es, rates
of pay, ho)rs of work and other ter(s and conditions of e(ploy(entJ
. Clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es arisin# fro( the e(ployer-e(ployee
relationsJ
,. Cases arisin# fro( any %iolation of Article "+ of this Code, incl)din# <)estions in%ol%in# the le#ality of
strikes and locko)tsJ
+. 5'cept clai(s for 5(ployees Co(pensation, &ocial &ec)rity, Medicare and (aternity benefits, all other
clai(s, arisin# fro( e(ployer-e(ployee relations, incl)din# those of persons in do(estic or ho)sehold
ser%ice, in%ol%in# an a(o)nt e'ceedin# fi%e tho)sand pesos AP,,>>>.>>= re#ardless of whether
acco(panied with a clai( for reinstate(ent.
_A fortiori, the decision or award of the %ol)ntary arbitrator or panel of arbitrators sho)ld likewise be
appealable to the Co)rt of Appeals, in line with the proced)re o)tlined in *e%ised Ad(inistrati%e Circ)lar $o. 1-
9,, 4)st like those of the <)asi-4)dicial a#encies, boards and co((issions en)(erated therein.
24. 2445 RE:ISED R5LES +0 PR+CED5RE +0 THE *LRC
1. C"m1a,n/
A co(plaint or petition is a pleadin# alle#in# the ca)se or ca)ses of action of the co(plainant or petitioner. The
na(es and addresses of all co(plainants or petitioners and respondents ()st be stated in the co(plaint or petition.
7t shall be si#ned )nder oath by the co(plainant or petitioner, with a declaration of non-for)( shoppin#. A*)le 777,
&ection 1, Letter a, ">>, $L*C *)les=
2. Ca2se ". A%/,"n
A ca)se of action is the act or o(ission by which a party %iolates a ri#ht of another A*)le 77, &ection ", *)les of
Co)rt=. A party ha%in# (ore than one ca)se of action a#ainst the other party, arisin# o)t of the sa(e relationship,
shall incl)de all of the( in one co(plaint or petition A*)le 777, &ection 1, Letter b, ">>, $L*C *)les=.
>. Rea1 Pa!/,es ,n In/e!es/
A real party in interest is the party who stands to be benefited or in4)red by the 4)d#(ent in the s)it, or the party
entitled to the a%ails of the s)it A*)le 777, &ection ", *)les of Co)rt=. The f)ll na(es of all the real parties in interest,
whether nat)ral or 4)ridical persons or entities a)thori;ed by law, shall be stated in the caption of the co(plaint or
petition, as well as in the decisions, resol)tions or orders of the Labor Arbiter or the Co((ission A*)le 777, &ection ",
">>, $L*C *)les=.
4. Amendmen/ ". C"m1a,n/:
$o a(end(ent of the co(plaint or petition shall be allowed after the filin# of position papers, )nless with lea%e of the
Labor Arbiter or the Co((ission A*)le 777, &ection 1, Letter c, ">>, $L*C *)les=.
5. :en2e Q 82!,sd,%/,"nC
A!/. 12( ". /&e Lab"! C"de
:pon co(plaint of any interested party, the *e#ional Director of the Depart(ent of Labor and 5(ploy(ent or any of
the d)ly a)thori;ed hearin# officers of the Depart(ent is e(powered, thro)#h s)((ary proceedin# and after d)e
notice, to hear and decide any (atter in%ol%in# the reco%ery of wa#es and other (onetary clai(s and benefits,
incl)din# le#al interest, owin# to an e(ployee or person e(ployed in do(estic or ho)sehold ser%ice or ho)sehelper
)nder this Code, arisin# fro( e(ployer-e(ployee relationsC Pro%ided, That s)ch co(plaint does not incl)de a clai(
for reinstate(entC Pro%ided f)rther, That the a##re#ate (oney clai(s of each e(ployee or ho)sehelper does not
e'ceed 2i%e tho)sand pesos AP,,>>>.>>=. The *e#ional Director or hearin# officer shall decide or resol%e the
co(plaint within thirty A6>= calendar days fro( the date of the filin# of the sa(e. Any s)( th)s reco%ered on behalf of
any e(ployee or ho)sehelper p)rs)ant to this Article shall be held in a special deposit acco)nt by, and shall be paid
on order of, the &ecretary of Labor and 5(ploy(ent or the *e#ional Director directly to the e(ployee or ho)sehelper
concerned. Any s)ch s)( not paid to the e(ployee or ho)sehelper beca)se he cannot be located after dili#ent and
reasonable effort to locate hi( within a period of three A6= years, shall be held as a special f)nd of the Depart(ent of
Labor and 5(ploy(ent to be )sed e'cl)si%ely for the a(elioration and benefit of workers.
Any decision or resol)tion of the *e#ional Director or hearin# officer p)rs)ant to this pro%ision (ay be appealed on
the sa(e #ro)nds pro%ided in Article ""6 of this Code, within fi%e A,= calendar days fro( receipt of a copy of said
decision or resol)tion, to the $ational Labor *elations Co((ission which shall resol%e the appeal within ten A1>=
calendar days fro( the s)b(ission of the last pleadin# re<)ired or allowed )nder its r)les.
The &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%e (ay s)per%ise the pay(ent of )npaid
wa#es and other (onetary clai(s and benefits, incl)din# le#al interest, fo)nd owin# to any e(ployee or ho)sehelper
)nder this Code.Q AAs a(ended by &ection ", *ep)blic Act $o. +71,, March "1, 19E9=
A!/. 217 ". /&e Lab"! C"de
a. P5'cept as otherwise pro%ided )nder this Code, the Labor Arbiters shall ha%e ori#inal and e'cl)si%e
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rates of pay, ho)rs of work and other ter(s and conditions of e(ploy(entJ

. Clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es arisin# fro( the e(ployer-
e(ployee relationsJ

,. Cases arisin# fro( any %iolation of Article "+ of this Code, incl)din# <)estions in%ol%in# the
le#ality of strikes and locko)tsJ and

+. 5'cept clai(s for 5(ployees Co(pensation, &ocial &ec)rity, Medicare and (aternity benefits, all
other clai(s arisin# fro( e(ployer-e(ployee relations, incl)din# those of persons in do(estic or
ho)sehold ser%ice, in%ol%in# an a(o)nt e'ceedin# fi%e tho)sand pesos AP,,>>>.>>= re#ardless of
whether acco(panied with a clai( for reinstate(ent.

b. The Co((ission shall ha%e e'cl)si%e appellate 4)risdiction o%er all cases decided by Labor Arbiters.
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(pany personnel policies shall be disposed of by the Labor Arbiter by referrin#
the sa(e to the #rie%ance (achinery and %ol)ntary arbitration as (ay be pro%ided in said a#ree(ents.Q AAs a(ended
by &ection 9, *ep)blic Act $o. +71,, March "1, 19E9=
R21e I:' Se%/,"n 1 ". /&e 2445 *LRC R21es
Pa= All cases which Labor Arbiters ha%e a)thority to hear and decide (ay be filed in the *e#ional Arbitration 0ranch
ha%in# 4)risdiction o%er the workplace of the co(plainant or petitioner.
2or p)rposes of %en)e, the workplace shall be )nderstood as the place or locality where the e(ployee is re#)larly
assi#ned at the ti(e the ca)se of action arose. 7t shall incl)de the place where the e(ployee is s)pposed to report
back after a te(porary detail, assi#n(ent, or tra%el. 7n case of field e(ployees, as well as a(b)lant or itinerant
workers, their workplace is where they are re#)larly assi#ned, or where they are s)pposed to re#)larly recei%e their
salaries and wa#es or work instr)ctions fro(, and report the res)lts of their assi#n(ent to, their e(ployers.
b= 3here two A"= or (ore *e#ional Arbitration 0ranches ha%e 4)risdiction o%er the workplace of the co(plainant or
petitioner, the 0ranch that first ac<)ired 4)risdiction o%er the case shall e'cl)de the others.
c= 3hen %en)e is not ob4ected to before the fillin# of position papers s)ch iss)e shall be dee(ed wai%ed.
d= The %en)e of an action (ay be chan#ed or transferred to a different *e#ional Arbitration 0ranch other than where
the co(plaint was filed by written a#ree(ent of the parties or when the Co((ission or Labor Arbiter before who(
the case is pendin# so orders, )pon (otion by the proper party in (eritorio)s cases.
e= Cases in%ol%in# o%erseas 2ilipino workers (ay be filed before the *e#ional Arbitration 0ranch ha%in# 4)risdiction
o%er the place where the co(plainant resides or where the principal office of any of the respondents is sit)ated, at
the option of the co(plainant.Q
R21e :' Se%/,"n 1 ". /&e 2445 *LRC R21es
P9)risdiction of Labor Arbiters. - Labor Arbiters shall ha%e ori#inal and e'cl)si%e 4)risdiction to hear and decide the
followin# cases in%ol%in# all workers, whether a#ric)lt)ral or non-a#ric)lt)ralC
a= :nfair labor practice casesJ
b= Ter(ination disp)tesJ
c= 7f acco(panied with a clai( for reinstate(ent, those cases that workers (ay file in%ol%in#
wa#es, rates of pay, ho)rs of work and other ter(s and conditions of e(ploy(entJ
d= Clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es arisin# fro( e(ployer-
e(ployee relationsJ
e= Cases arisin# fro( any %iolation of Article "+ of the Labor Code, as a(ended, incl)din#
<)estions in%ol%in# the le#ality of strikes and locko)tsJ
f= 5'cept clai(s for e(ployees co(pensation not incl)ded in the ne't s)cceedin# para#raph, social
sec)rity, (edicare, and (aternity benefits, all other clai(s arisin# fro( e(ployer-e(ployee
relations, incl)din# those of persons in do(estic or ho)sehold ser%ice, in%ol%in# an a(o)nt
e'ceedin# 2i%e Tho)sand Pesos AP,,>>>.>>=, whether or not acco(panied with a clai( for
reinstate(entJ
#= Money clai(s arisin# o)t of e(ployer-e(ployee relationship or by %irt)e of any law or contract,
in%ol%in# 2ilipino workers for o%erseas deploy(ent, incl)din# clai(s for act)al, (oral, e'e(plary
and other for(s of da(a#esJ
h= 3a#e distortion disp)tes in )nor#ani;ed establish(ents not %ol)ntarily settled by the parties
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p)rs)ant to *ep)blic Act $o.+7"7J
i= 5nforce(ent of co(pro(ise a#ree(ents when there is non-co(pliance by any of the parties
p)rs)ant to Article ""7 of the Labor Code, as a(endedJ and
4= 1ther cases as (ay be pro%ided by law.
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(pany personnel policies shall be disposed of by the Labor Arbiter by referrin#
the sa(e to the #rie%ance (achinery and %ol)ntary arbitration, as (ay be pro%ided in said a#ree(ents.Q
6. $"ney C1a,ms ". +0W:
Cases in%ol%in# o%erseas 2ilipino workers (ay be filed before the *e#ional Arbitration 0ranch ha%in# 4)risdiction o%er
the place where the co(plainant resides or where the principal office of any of the respondents is sit)ated, at the
option of the co(plainant. A*)le 7/, &ection 1, letter e, ">>, $L*C *)les=
7. Se!#,%e ". S2mm"ns
R21e III' Se%/,"n 6' 2445 *LRC R21es
a= $otices or s)((ons and copies of orders, shall be ser%ed on the parties to the case personally by the 0ailiff or
d)ly a)thori;ed p)blic officer within three A6= days fro( receipt thereof or by re#istered (ailJ Pro%ided that in special
circ)(stances, ser%ice of s)((ons (ay be effected in accordance with the pertinent pro%isions of the *)les of
Co)rtJ Pro%ided f)rther, that in cases of decisions and final awards, copies thereof shall be ser%ed on both parties
and their co)nsel or representati%e by re#istered (ailJ Pro%ided f)rther that in cases where a party to a case or his
co)nsel on record personally seeks ser%ice of the decision )pon in<)iry thereon, ser%ice to said party shall be
dee(ed effected )pon act)al receipt thereofJ Pro%ided finally, that where parties are so n)(ero)s, ser%ice shall be
(ade on co)nsel and )pon s)ch n)(ber of co(plainants, as (ay be practicable, which shall be considered
s)bstantial co(pliance with Article "" Aa= of the Labor Code, as a(ended.
2or p)rposes of appeal, the period shall be co)nted fro( receipt of s)ch decisions, resol)tions, or orders by the
co)nsel or representati%e of record.
b= The 0ailiff or officer ser%in# the notice, order, resol)tion or decision shall s)b(it his ret)rn within two A"= days fro(
date of ser%ice thereof, statin# le#ibly in his ret)rn his na(e, the na(es of the persons ser%ed and the date of receipt,
which ret)rn shall be i((ediately attached and shall for( part of the records of the case. 7n case of ser%ice by
re#istered (ail, the 0ailiff or officer shall write in the ret)rn, the na(es of persons ser%ed and the date of (ailin# of
the resol)tion or decision. 7f no ser%ice was effected, the ser%ice officer shall state the reason therefor in the ret)rn.
). *a/2!a1 Q 82!,d,%a1 En/,/,es
R21e III' Se%/,"n 2' 2445 *LRC R21es
The f)ll na(es of all the real parties in interest, whether nat)ral or 4)ridical persons or entities a)thori;ed by law, shall
be stated in the caption of the co(plaint or petition, as well as in the decisions, resol)tions or orders of the Labor
Arbiter or the Co((ission.
(. Ra..1e and Ass,-nmen/ ". Cases
R21e I:' Se%/,"n 2' 2445 *LRC R21es
a= All co(plaints and petitions filed with the docket )nit of the *e#ional Arbitration 0ranch shall be i((ediately raffled
and assi#ned to a Labor Arbiter fro( receipt thereof.
b= The 5'ec)ti%e Labor Arbiter shall be responsible for the i((ediate raffle and assi#n(ent of all co(plaints and
petitions filed with his *e#ional Arbitration 0ranch, and the i((ediate forwardin# of all s)bse<)ent pleadin#s and
(otions.
c= All pleadin#s and (otions s)bse<)ent to the filin# of the co(plaint shall be forwarded to the Labor Arbiter before
who( the case is pendin# within twenty-fo)r A"= ho)rs fro( receipt thereof.
14. Aea!an%es ". Lawye!s and *"n?Lawye!s
R21e III' Se%/,"ns ) and (' 2445 *LRC R21es
P&ection E. A%%"(r(&$"'. !
a= A lawyer appearin# for a party is pres)(ed to be properly a)thori;ed for that p)rpose. 7n e%ery case, he shall
indicate in his pleadin#s and (otions his AttorneyOs *oll $)(ber, as well as his PT* and 70P n)(bers for the c)rrent
year.
b= A non-lawyer (ay appear as co)nsel in any of the proceedin#s before the Labor Arbiter or Co((ission only )nder
the followin# conditionsC
A1= he represents hi(self as party to the caseJ
A"= he represents a le#iti(ate labor or#ani;ation, as defined )nder Article "1" and "" of the Labor
Code, as a(ended, which is a party to the caseC Pro%ided, that he presentsC Ai= a certification fro(
the 0)rea) of Labor *elations A0L*= or *e#ional 1ffice of the Depart(ent of Labor and
5(ploy(ent attestin# that the or#ani;ation he represents is d)ly re#istered and listed in the roster
of le#iti(ate labor or#ani;ationsJ Aii= a %erified certification iss)ed by the secretary and attested to
by the president of the said or#ani;ation statin# that he is a)thori;ed to represent the said
or#ani;ation in the said caseJ and Aiii= a copy of the resol)tion of the board of directors of the said
or#ani;ation #rantin# hi( s)ch a)thorityJ
A6= he represents a (e(ber or (e(bers of a le#iti(ate labor or#ani;ation that is e'istin# within the
e(ployerOs establish(ent, who are parties to the caseC Pro%ided, that he presentsC Ai= a %erified
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certification attestin# that he is a)thori;ed by s)ch (e(ber or (e(bers to represent the( in the
caseJ and Aii= a %erified certification iss)ed by the secretary and attested to by the president of the
said or#ani;ation statin# that the person or persons he is representin# are (e(bers of their
or#ani;ation which is e'istin# in the e(ployerOs establish(entJ
A= he is a d)ly-accredited (e(ber of any le#al aid office reco#ni;ed by the Depart(ent of 9)stice
or 7nte#rated 0ar of the PhilippinesC Pro%ided, that he Ai= presents proof of his accreditationJ and Aii=
represents a party to the caseJ
A,= he is the owner or president of a corporation or establish(ent which is a party to the caseC
Pro%ided, that he presentsC Ai= a %erified certification attestin# that he is a)thori;ed to represent said
corporation or establish(entJ and Aii= a copy of the resol)tion of the board of directors of said
corporation, or other si(ilar resol)tion or instr)(ent iss)ed by said establish(ent, #rantin# hi(
s)ch a)thority.
c= A non-lawyer who appears in contra%ention of this &ection shall not be reco#ni;ed in any proceedin#s before the
Labor Arbiter or the Co((ission.
d= Appearances (ay be (ade orally or in writin#. 7n both cases, the co(plete na(e and office address of both
parties shall be (ade on record and the ad%erse party or his co)nsel or representati%e properly notified.
e= Any chan#e in the address of co)nsel or representati%e sho)ld be filed with the records of the case and f)rnished
the ad%erse party or co)nsel.
f= Any chan#e or withdrawal of co)nsel or representati%e shall be (ade in accordance with the *)les of Co)rt.
&ection 9. A,!or#0 o B#&+ P(r0.
Attorneys and other representati%es of parties shall ha%e a)thority to bind their clients in all (atters of proced)reJ b)t
they cannot, witho)t a special power of attorney or e'press consent, enter into a co(pro(ise a#ree(ent with the
opposin# party in f)ll or partial dischar#e of a clientOs clai(.Q
11. ;!"2nds /" D,sm,ss C"m1a,n/:
R21e III' Se%/,"n 4' 1e//e! a' ". /&e 2445 *LRC R21es
A co(plaint (ay be dis(issed on the #ro)nd ofC
1. lack of 4)risdiction o%er the s)b4ect (atter
". i(proper %en)e
6. res ad4)dicate
. prescription
,. for)( shoppin#
12. P!es%!,/,"n ". $"ney C1a,msC
A!/. 2(1 ". /&e Lab"! C"de
All (oney clai(s arisin# fro( e(ployer-e(ployee relations accr)in# d)rin# the effecti%ity of this Code shall be filed
within three A6= years fro( the ti(e the ca)se of action accr)edJ otherwise they shall be fore%er barred.
1>. P!"&,b,/ed P1ead,n-s and $"/,"ns
R21e III' Se%/,"n 4' 2445 *LRC R21es
a= Motion to dis(iss the co(plaint e'cept on the #ro)nd of lack of 4)risdiction o%er the s)b4ect (atter, i(proper
%en)e, res ad4)dicata, prescription and for)( shoppin#J
b= Motion for a bill of partic)larsJ
c= Motion for new trialJ
d= Petition for relief fro( 4)d#(ent when filed with the Labor ArbiterJ
e= Petition for certiorari, (anda()s or prohibitionJ
f= Motion to declare respondent in defa)ltJ
#= Motion for reconsideration or appeal fro( any interloc)tory order of the Labor Arbiter.
14. C"n%,1,a/,"n and $ed,a/,"n C"n.e!en%e
R21e :' Se%/,"ns >' 4' 5' and 6' ". /&e 2445 *LRC R21es
P&ection 6. M(&+(or0 Co&$#*#(#o& (&+ M"+#(#o& Co&f"r"&$". - a= The (andatory conciliation and (ediation
conference shall be called for the p)rpose of A1= a(icably settlin# the case )pon a fair co(pro(iseJ A"= deter(inin#
the real parties in interestJ A6= deter(inin# the necessity of a(endin# the co(plaint and incl)din# all ca)ses of actionJ
A= definin# and si(plifyin# the iss)es in the caseJ A,= enterin# into ad(issions or stip)lations of factsJ and A+=
threshin# o)t all other preli(inary (atters. The Labor Arbiter shall preside and take f)ll control of the proceedin#s.
b= Conciliation and (ediation efforts shall be e'erted by the Labor Arbiters all thro)#ho)t the proceedin#s. &ho)ld the
parties arri%e at any a#ree(ent as to the whole or any part of the disp)te, the sa(e shall be red)ced to writin# and
si#ned by the parties and their respecti%e co)nsel or a)thori;ed representati%e, if any, before the Labor Arbiter.
c= 7n any case, the co(pro(ise a#ree(ent shall be appro%ed by the Labor Arbiter, if after e'plainin# to the parties,
partic)larly to the co(plainants, the ter(s, conditions and conse<)ences thereof, he is satisfied that they )nderstand
the a#ree(ent, that the sa(e was entered into freely and %ol)ntarily by the(, and that it is not contrary to law,
(orals, and p)blic policy.
d= A co(pro(ise a#ree(ent d)ly entered into in accordance with this &ection shall be final and bindin# )pon the
parties and shall ha%e the force and effect of a 4)d#(ent rendered by the Labor Arbiter.
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e= The (andatory conciliation and (ediation conference shall, e'cept for 4)stifiable #ro)nds, be ter(inated within
thirty A6>= calendar days fro( the date of the first conference.
f= $o (otion for postpone(ent shall be entertained e'cept on (eritorio)s #ro)nds.
&ection . Eff"$ of F(#*,r" of Co&$#*#(#o& (&+ M"+#(#o&. - &ho)ld the parties fail to a#ree )pon an a(icable
settle(ent, either in whole or in part, d)rin# the (andatory conciliation and (ediation conference, the Labor Arbiter
shall ter(inate the conciliation and (ediation sta#e and proceed to p)rs)e the other p)rposes of the said conference
as en)(erated in the i((ediately precedin# &ection. Thereafter, the Labor Arbiter shall direct the parties to
si()ltaneo)sly file their respecti%e position papers on the iss)es a#reed )pon by the parties and as reflected in the
(in)tes of the proceedin#s.
&ection ,. No&4A%%"(r(&$" of P(r#"'. - The non-appearance of the co(plainant or petitioner d)rin# the two A"=
settin#s for (andatory conciliation and (ediation conference sched)led in the s)((ons, despite d)e notice thereof,
shall be a #ro)nd for the dis(issal of the case witho)t pre4)dice.
7n case of non-appearance by the respondent d)rin# the first sched)led conference, the second conference shall
proceed as sched)led in the s)((ons. 7f the respondent still fails to appear at the second conference despite bein#
d)ly ser%ed with s)((ons, the Labor Arbiter shall i((ediately ter(inate the (andatory conciliation and (ediation
conference. The Labor Arbiter shall thereafter allow the co(plainant or petitioner to file his %erified position paper and
s)b(it e%idence in s)pport of his ca)ses of action, and there)pon render his decision on the basis of the e%idence on
record.
&ection +. Mo#o& o D#'m#''. - 1n or before the date set for the (andatory conciliation and (ediation conference, the
respondent (ay file a (otion to dis(iss. Any (otion to dis(iss on the #ro)nd of lack of 4)risdiction, i(proper %en)e,
or that the ca)se of action is barred by prior 4)d#(ent, prescription, or for)( shoppin#, shall be i((ediately resol%ed
by the Labor Arbiter thro)#h a written order. An order denyin# the (otion to dis(iss, or s)spendin# its resol)tion )ntil
the final deter(ination of the case, is not appealable.Q
15. C"m!"m,se be."!e Re-,"na1 D,!e%/"! and Lab"! A!b,/e!
A!/. 227 ". /&e Lab"! C"de
Any co(pro(ise settle(ent, incl)din# those in%ol%in# labor standard laws, %ol)ntarily a#reed )pon by the parties with
the assistance of the 0)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 any co)rt, shall not ass)(e 4)risdiction o%er iss)es in%ol%ed
therein e'cept 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.
A!/. 242) ". /&e C,#,1 C"de
A co(pro(ise is a contract whereby the parties, by (akin# reciprocal concessions, a%oid a liti#ation or p)t an end to
one already co((enced.
16. S2bm,ss,"n ". P"s,/,"n Pae! and C"n/en/s ". P"s,/,"n Pae!
R21e :' Se%/,"n 7 ". /&e 2445 *LRC R21es
a= &)b4ect to &ections and , of this *)le, the Labor Arbiter shall direct the parties to s)b(it si()ltaneo)sly their
%erified position papers with s)pportin# doc)(ents and affida%its, if any, within an ine'tendible period of ten A1>=
calendar days fro( the date of ter(ination of the (andatory conciliation and (ediation conference.
b= The position papers of the parties shall co%er only those clai(s and ca)ses of action raised in the co(plaint or
a(ended co(plaint, e'cl)din# those that (ay ha%e been a(icably settled, and acco(panied by all s)pportin#
doc)(ents, incl)din# the affida%its of witnesses, which shall take the place of their direct testi(ony.
c= A reply (ay be filed by any party within ten A1>= calendar days fro( receipt of the position paper of the ad%erse
party.
d= 7n their position papers and replies, the parties shall not be allowed to alle#e facts, or present e%idence to pro%e
facts and any ca)se or ca)ses of action not referred to or incl)ded in the ori#inal or a(ended co(plaint or petition.
17. L2an/2m ". E#,den%e and B2!den ". P!"".
The <)ant)( of e%idence re<)ired is s)bstantial e%idenceJ while the b)rden of proof is )pon the co(plainant or
petitioner.
1). Te%&n,%a1 R21es ". P!"%ed2!e
A!/. 221 ". /&e Lab"! C"de
P7n any proceedin# before the Co((ission or any of the Labor Arbiters, the r)les of e%idence pre%ailin# in co)rts of
law or e<)ity 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 Arbiters shall )se e%ery and all reasonable (eans to ascertain the facts in each case
speedily and ob4ecti%ely and witho)t re#ard to technicalities of law or proced)re, all in the interest of d)e process. 7n
any proceedin# before the Co((ission or any Labor Arbiter, the parties (ay be represented by le#al co)nsel b)t it
shall be the d)ty of the Chair(an, any Presidin# Co((issioner or Co((issioner or any Labor Arbiter to e'ercise
co(plete control of the proceedin#s at all sta#es.
1(. Aea1 P!"%ed2!e' Aea1 0ee and P"s/,n- ". B"nd' 0!,#"1"2s "! D,1a/"!y Aea1s
A!/. 22> ". /&e Lab"! C"de
Decisions, awards, or orders of the Labor Arbiter are final and e'ec)tory )nless appealed to the Co((ission by any
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or both parties within ten A1>= calendar days fro( receipt of s)ch decisions, awards, or orders. &)ch appeal (ay be
entertained only on any of the followin# #ro)ndsC
a. 7f there is pri(a facie e%idence of ab)se of discretion on the part of the Labor ArbiterJ
b. 7f the decision, order or award was sec)red thro)#h fra)d or coercion, incl)din# #raft and
corr)ptionJ

c. 7f (ade p)rely on <)estions of lawJ and

d. 7f serio)s errors in the findin#s of facts are raised which wo)ld ca)se #ra%e or irreparable da(a#e
or in4)ry to the appellant.
7n case of a 4)d#(ent in%ol%in# a (onetary award, an appeal by the e(ployer (ay be perfected only )pon the
postin# of a cash or s)rety bond iss)ed by a rep)table bondin# co(pany d)ly accredited by the Co((ission in the
a(o)nt e<)i%alent to the (onetary award in the 4)d#(ent appealed fro(.
7n any e%ent, the decision of the Labor Arbiter reinstatin# a dis(issed or separated e(ployee, insofar as the
reinstate(ent aspect is concerned, shall i((ediately be e'ec)tory, e%en pendin# appeal. The e(ployee 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(ployer, (erely reinstated in the payroll. The postin# of a bond by the e(ployer shall not stay the
e'ec)tion for reinstate(ent pro%ided herein.
To disco)ra#e fri%olo)s or dilatory appeals, the Co((ission or the Labor Arbiter shall i(pose reasonable penalty,
incl)din# fines or cens)res, )pon the errin# parties.
7n all cases, the appellant shall f)rnish a copy of the (e(orand)( of appeal to the other party who shall file an
answer not later than ten A1>= calendar days fro( receipt thereof.
The Co((ission shall decide all cases within twenty A">= calendar days fro( receipt of the answer of the appellee.
The decision of the Co((ission shall be final and e'ec)tory after ten A1>= calendar days fro( receipt thereof by the
parties.
Any law enforce(ent a#ency (ay be dep)ti;ed by the &ecretary of Labor and 5(ploy(ent or the Co((ission in the
enforce(ent of decisions, awards or orders.Q AAs a(ended by &ection 1", *ep)blic Act $o. +71,, March "1, 19E9=
R21e :I ". /&e 2445 *LRC R21es
P&ection 1. P"r#o+' of A%%"(*. - Decisions, resol)tions or orders of the Labor Arbiter shall be final and e'ec)tory
)nless appealed to the Co((ission by any or both parties within ten A1>= calendar days fro( receipt thereofJ and in
case of decisions, resol)tions or orders of the *e#ional Director of the Depart(ent of Labor and 5(ploy(ent
p)rs)ant to Article 1"9 of the Labor Code, within fi%e A,= calendar days fro( receipt thereof. 7f the 1>th or ,th day, as
the case (ay be, falls on a &at)rday, &)nday or holiday, the last day to perfect the appeal shall be the first workin#
day followin# s)ch &at)rday, &)nday or holiday.
$o (otion or re<)est for e'tension of the period within which to perfect an appeal shall be allowed.
&ection ". Gro,&+'. - The appeal (ay be entertained only on any of the followin# #ro)ndsC
a= 7f there is pri(a facie e%idence of ab)se of discretion on the part of the Labor Arbiter or *e#ional
DirectorJ
b= 7f the decision, resol)tion or order was sec)red thro)#h fra)d or coercion, incl)din# #raft and
corr)ptionJ
c= 7f (ade p)rely on <)estions of lawJ andBor
d= 7f serio)s errors in the findin#s of facts are raised which, if not corrected, wo)ld ca)se #ra%e or
irreparable da(a#e or in4)ry to the appellant.
&ection 6. W!"r" F#*"+. - The appeal shall be filed with the *e#ional Arbitration 0ranch or *e#ional 1ffice where the
case was heard and decided.
&ection . *"5,#'#"' For P"rf"$#o& Of A%%"(*. - a= The appeal shall beC 1= filed within the re#le(entary period
pro%ided in &ection 1 of this *)leJ "= %erified by the appellant hi(self in accordance with &ection , *)le 7 of the
*)les of Co)rt, as a(endedJ 6= in the for( of a (e(orand)( of appeal which shall state the #ro)nds relied )pon
and the ar#)(ents in s)pport thereof, the relief prayed for, and with a state(ent of the date the appellant recei%ed
the appealed decision, resol)tion or orderJ = in three A6= le#ibly typewritten or printed copiesJ and ,= acco(panied by
i= proof of pay(ent of the re<)ired appeal feeJ ii= postin# of a cash or s)rety bond as pro%ided in &ection + of this
*)leJ iii= a certificate of non-for)( shoppin#J and i%= proof of ser%ice )pon the other parties.
b= A (ere notice of appeal witho)t co(plyin# with the other re<)isites aforestated shall not stop the r)nnin# of the
period for perfectin# an appeal.
c= The appellee (ay file with the *e#ional Arbitration 0ranch or *e#ional 1ffice where the appeal was filed, his
answer or reply to appellantOs (e(orand)( of appeal, not later than ten A1>= calendar days fro( receipt thereof.
2ail)re on the part of the appellee who was properly f)rnished with a copy of the appeal to file his answer or reply
within the said period (ay be constr)ed as a wai%er on his part to file the sa(e.
d= &)b4ect to the pro%isions of Article "1E of the Labor Code, once the appeal is perfected in accordance with these
*)les, the Co((ission shall li(it itself to re%iewin# and decidin# only the specific iss)es that were ele%ated on
appeal.
&ection ,. A%%"(* F"". - The appellant shall pay an appeal fee of 1ne .)ndred 2ifty Pesos AP1,>.>>= to the *e#ional
Arbitration 0ranch or *e#ional 1ffice of ori#in, and the official receipt of s)ch pay(ent shall for( part of the records
of the case.
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&ection +. Bo&+. - 7n case the decision of the Labor Arbiter or the *e#ional Director in%ol%es a (onetary award, an
appeal by the e(ployer (ay be perfected only )pon the postin# of a bond, which shall either be in the for( of cash
deposit or s)rety bond e<)i%alent in a(o)nt to the (onetary award, e'cl)si%e of da(a#es and attorneyOs fees.
7n case of s)rety bond, the sa(e shall be iss)ed by a rep)table bondin# co(pany d)ly accredited by the Co((ission
or the &)pre(e Co)rt, and shall be acco(panied by ori#inal or certified tr)e copies of the followin#C
a= a 4oint declaration )nder oath by the e(ployer, his co)nsel, and the bondin# co(pany, attestin#
that the bond posted is #en)ine, and shall be in effect )ntil final disposition of the case.
b= an inde(nity a#ree(ent between the e(ployer-appellant and bondin# co(panyJ
c= proof of sec)rity deposit or collateral sec)rin# the bondC pro%ided, that a check shall not be
considered as an acceptable sec)rityJ
d= a certificate of a)thority fro( the 7ns)rance Co((issionJ
e= certificate of re#istration fro( the &ec)rities and 5'chan#e Co((issionJ
f= certificate of a)thority to transact s)rety b)siness fro( the 1ffice of the PresidentJ
#= certificate of accreditation and a)thority fro( the &)pre(e Co)rtJ and
h= notari;ed board resol)tion or secretaryOs certificate fro( the bondin# co(pany showin# its
a)thori;ed si#natories and their speci(en si#nat)res.
A cash or s)rety bond shall be %alid and effecti%e fro( the date of deposit or postin#, )ntil the case is finally decided,
resol%ed or ter(inated, or the award satisfied. This condition shall be dee(ed incorporated in the ter(s and
conditions of the s)rety bond, and shall be bindin# on the appellants and the bondin# co(pany.
The appellant shall f)rnish the appellee with a certified tr)e copy of the said s)rety bond with all the abo%e-(entioned
s)pportin# doc)(ents. The appellee shall %erify the re#)larity and #en)ineness thereof and i((ediately report any
irre#)larity to the Co((ission.
:pon %erification by the Co((ission that the bond is irre#)lar or not #en)ine, the Co((ission shall ca)se the
i((ediate dis(issal of the appeal, and cens)re or cite in conte(pt the responsible parties and their co)nsels, or
s)b4ect the( to reasonable fine or penalty.
$o (otion to red)ce bond shall be entertained e'cept on (eritorio)s #ro)nds, and only )pon the postin# of a bond in
a reasonable a(o)nt in relation to the (onetary award.
The (ere filin# of a (otion to red)ce bond witho)t co(plyin# with the re<)isites in the precedin# para#raphs shall
not stop the r)nnin# of the period to perfect an appeal.
&ection 7. R"$or+' of C('" o& A%%"(*. - The records of a case shall ha%e a correspondin# inde' of its contents which
shall incl)de the followin#C a= the ori#inal copy of the co(plaintJ b= other pleadin#s and (otionsJ c= (in)tes of the
proceedin#s, notices, transcripts of steno#raphic notes, if anyJ d= decisions, orders, and resol)tions as well as proof
of ser%ice thereof, if a%ailableJ e= the co(p)tation of the awardJ f= (e(orand)( of appeal and the reply or answer
thereto, if any, and proof of ser%ice, if a%ailableJ #= official receipt of the appeal feeJ and h= the appeal bond, if any.
The records shall be chronolo#ically arran#ed and pa#ed pro(inently.
&ection E. Tr(&'m#(* Of R"$or+' Of C('" O& A%%"(*. - 3ithin forty-ei#ht AE= ho)rs after the filin# of the appeal, the
records of the case shall be trans(itted by the *e#ional Arbitration 0ranch or office of ori#in to the Co((ission.
&ection 9. P"rf"$#o& Of A%%"(*B Eff"$. - 3itho)t pre4)dice to i((ediate reinstate(ent pendin# appeal )nder
&ection + of *)le D7, once an appeal is filed, the Labor Arbiter loses 4)risdiction o%er the case. All pleadin#s and
(otions pertainin# to the appealed case shall thereafter be addressed to and filed with the Co((ission.
&ection 1>. Fr#8o*o,' or D#*(or0 A%%"(*'. - $o appeal fro( an interloc)tory order shall be entertained. To disco)ra#e
fri%olo)s or dilatory appeals, incl)din# those taken fro( interloc)tory orders, the Co((ission (ay cens)re or cite in
conte(pt the errin# parties and their co)nsels, or s)b4ect the( to reasonable fine or penalty.
&ection 11. A%%"(*' from D"$#'#o& of O!"r A."&$#"'. - The *)les pro%ided herein #o%ernin# appeals fro( the
decisions or orders of Labor Arbiters shall apply to appeals to the Co((ission fro( decisions or orders of the other
offices or a#encies appealable to the Co((ission accordin# to law.Q
24. *ew S%&ed21e ". Le-a1 0ees: Aplease see $L*C 5n 0anc *esol)tion $o. >E->7, &eries of ">>7=
21. *LRC: %"m"s,/,"n' "we!s and .2n%/,"ns 2!s2an/ /" RA (>47E Adm,n,s/!a/,#e S2e!#,s,"n ". Se%!e/a!y
". Lab"!
REP5BLIC ACT *+. (>47
A* ACT RATI+*ALIFI*; THE C+$P+SITI+* A*D 05*CTI+* +0 THE *LRC' A$E*DI*; ARTICLES 21>'
214' 215 A*D 216 +0 P.D. *+. 442' AS A$E*DED' +THERWISE D*+W* AS THE LAB+R C+DE +0 THE
PHILIPPI*ES
A*T. "16. N(#o&(* L(1or R"*(#o&' Comm#''#o&. - There shall be a $ational Labor *elations Co((ission which
shall be attached to the Depart(ent of Labor and 5(ploy(ent &1L5L@ for pro#ra( and policy coordination only,
co(posed of a Chair(an and T35$T@-T.*55 A"6= Me(bers.
57F.T AE= (e(bers each shall be chosen 1$L@ fro( a(on# the no(inees of the workers and e(ployers
or#ani;ations, respecti%ely. The Chair(an and the &5/5$ A7= re(ainin# (e(bers shall co(e fro( the p)blic sector,
with the latter to be chosen P*525*A0L@ fro( a(on# the 7$C:M05$T LA01* A*07T5*&.
:pon ass)(ption into office, the (e(bers no(inated by the workers and e(ployers or#ani;ations shall di%est
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the(sel%es of any affiliation with or interest in the federation or association to which they belon#.
The Co((ission (ay sit en banc or in 57F.T AE= di%isions, each co(posed of three A6= (e(bers. The Co((ission
shall sit en banc only for p)rposes of pro()l#atin# r)les and re#)lations #o%ernin# the hearin# and disposition of
cases before any of its di%isions and re#ional branches and for()latin# policies affectin# its ad(inistration and
operations. The Co((ission shall e'ercise its ad4)dicatory and all other powers, f)nctions, and d)ties thro)#h its
di%isions. 1f the 57F.T AE= di%isions, the first, second third, 21:*T., 272T. A$D &7DT. di%isions shall handle
cases co(in# fro( the $ational Capital *e#ion and other parts of L);onJ and the &5/5$T., A$D 57F.T di%isions,
cases fro( the /isayas and Mindanao, respecti%elyC Pro8#+"+, That the Co((ission sittin# "& 1(&$ (ay, on
te(porary or e(er#ency basis, allow cases within the 4)risdiction of any di%ision to be heard and decided by any
other di%ision whose docket allows the additional workload and s)ch transfer will not e'pose liti#ants to )nnecessary
additional e'penses. The di%isions of the Co((ission shall ha%e e'cl)si%e appellate 4)risdiction o%er cases within
their respecti%e territorial 4)risdiction.
The conc)rrence of two A"= Co((issioners of a di%ision shall be necessary for the prono)nce(ent of a 4)d#(ent or
resol)tion. 3hene%er the re<)ired (e(bership in a di%ision is not co(plete and the conc)rrence of two A"=
Co((issioners to arri%e at a 4)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 (ay be necessary.
The concl)sions of a di%ision on any 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. 7t shall be (andatory for the di%ision to (eet for p)rposes of
the cons)ltation ordained therein. A certification to this effect si#ned by the Presidin# Co((issioner of the di%ision
shall be iss)ed, and a copy 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 &5/5$ A7= other (e(bers fro( the
p)blic sector shall be the Presidin# Co((issioners of the second, third, fo)rth, fifth, si'th, se%enth and ei#ht
di%isions, respecti%ely. 7n case of the effecti%e absence or incapacity of the Chair(an, the Presidin# Co((issioner of
the second di%ision shall be the Actin# Chair(an.
The Chair(an, aided by the 5'ec)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 Labor Arbiters.
The Co((ission, when sittin# en banc, shall be assisted by the sa(e 5'ec)ti%e Clerk, and, when actin# thr) its
Di%isions, by said 5'ec)ti%e Clerk for its first di%ision and &5/5$ A7= other Dep)ty 5'ec)ti%e Clerks for the second,
third, fo)rth fifth, si'th, se%enth and ei#ht di%isions, respecti%ely, in the perfor(ance of s)ch si(ilar or e<)i%alent
f)nctions and d)ties as are dischar#ed by the Clerk of Co)rt and Dep)ty Clerks of Co)rt of the Co)rt of Appeals.
The Co((ission and its ei#ht AE= di%isions shall be assisted by the Co((ission Attorneys in its Appellate and
ad4)dicatory f)nctions whose ter( shall be coter(ino)s with the Co((issioners with who( they are assi#ned. The
Co((ission Attorneys shall be (e(bers of the Philippine 0ar with at least one A1= year e'perience or e'pos)re in
the field of labor-(ana#e(ent relations. They shall recei%e ann)al salaries and shall be entitled to the sa(e
allowances and benefits as those fallin# )nder &alary Frade twenty-si' A&F "+=. There shall be as (any Co((ission
Attorneys as (ay be necessary for the effecti%e and efficient operations of the Co((ission b)t in no case (ore than
three A6= assi#ned to the 1ffice of the Chair(an and each Co((issioner.
$o Labor Arbiter shall be assi#ned to perfor( the f)nctions of the Co((ission Attorney nor detailed to the office of
any Co((issioner.
A*T. "1. H"(+5,(r"r', Br(&$!"' (&+ Pro8#&$#(* E9"&'#o& U&#'. - The Co((ission and its first, second, third,
fo)rth, fifth and si'th di%isions shall ha%e their (ain offices in Metropolitan Manila, and the se%enth and ei#ht di%isions
in the cities of Ceb) and Ca#ayan de 1ro, respecti%ely. The Co((ission shall establish as (any re#ional branches
as there are re#ional offices of the Depart(ent of Labor and 5(ploy(ent, s)b-re#ional branches or pro%incial
e'tension )nits. There shall be as (any Labor Arbiters as (ay be necessary for the effecti%e and efficient operation
of the Co((ission.
A*T. "1,. A%%o#&m"& (&+ P,(*#f#$(#o&'. - The Chair(an and other Co((issioners shall be (e(bers of the
Philippine 0ar and ()st ha%e been en#a#ed in the practice of law in the Philippines for at least fifteen A1,= years, with
at least fi%e A,= years e'perience or e'pos)re in the field of labor-(ana#e(ent relations, and shall preferably be
residents of the re#ion where they &.ALL hold office. The Labor Arbiters shall likewise be (e(bers of the Philippine
0ar and ()st ha%e been en#a#ed in the practice of law in the Philippines for at least ten A1>= years, with at least fi%e
A,= years e'perience or e'pos)re in T.5 275LD 12 labor-(ana#e(ent relations.
The Chair(an, and the other Co((issioners and the Labor Arbiters shall hold office d)rin# #ood beha%ior )ntil they
reach the a#e of si'ty-fi%e A+,= years, )nless sooner re(o%ed for ca)se as pro%ided by law or beco(e incapacitated
to dischar#e the d)ties of their office. Pro8#+"+, !o)"8"r, That the President of the *ep)blic of the Philippines (ay
e'tent the ser%ices of the Co((issioners and Labor Arbiters )p to the (a'i()( a#e of se%enty A7= years )pon the
reco((endation of the Co((ission "& 1(&$.
The Chair(an, the Di%ision Presidin# Co((issioners and other Co((issioners shall all be appointed by the
President. Appoint(ent to any %acancy in a specific di%ision shall co(e only fro( the no(inees of the sector which
no(inated the predecessor. The Labor Arbiters shall also be appointed by the President, )pon reco((endation of
the Co((ission en banc to a specific arbitration branch, preperably in the re#ion where they are residents, and shall
be s)b4ect to the Ci%il &er%ice Law, r)les and re#)lationsC Pro8#+"+, that the labor arbiters who are presently holdin#
office in the re#ion where they are residents shall be dee(ed appointed thereat.
The Chair(an and the Co((ission, shall appoint the staff and e(ployees of the Co((ission, and its re#ional
branches as the needs of the ser%ice (ay re<)ire, s)b4ect to the Ci%il &er%ice Law, r)les and re#)lations, and
)p#rade their c)rrent salaries, benefits and other e(ol)(ents in accordance with law.
A*T. "1+. S(*(r#"', 1"&"f#' (&+ o!"r "mo*,m"&'. The Chair(an and (e(bers of the Co((ission shall ha%e the
sa(e rank, recei%e an ann)al salary e<)i%alent to, and be entitled to the sa(e allowances, retire(ent and benefits
as, those of the Presidin# 9)stice and Associate 9)stices of the Co)rt of Appeals, respecti%ely. Labor Arbiters shall
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ha%e the sa(e rank, recei%e an ann)al salary e<)i%alent to and be entitled to the sa(e allowances, retire(ent and
other benefits and pri%ile#es as those of the 4)d#es of the re#ional trial co)rts. 7n no case, howe%er, shall the
pro%ision of this Article res)lt in the di(in)tion of the e'istin# salaries, allowances and benefits of the afore(entioned
officials.
22. Adm,n,s/!a/,#e S2e!#,s,"n ". Se%!e/a!y ". Lab"!
E9EC5T:E +RDER 244
DELE;ATI*; T+ THE SECRETARA +0 LAB+R A*D E$PL+A$E*T THE P+WER T+ E9ERCISE
AD$I*ISTRATI:E S5PER:ISI+* +:ER THE *ATI+*AL LAB+R RELATI+*S C+$$ISSI+*
W!"r"(', 5'ec)ti%e power is %ested in the President )nder &ection 1, Article /77 of the Constit)tion and )nder
&ection 11 Chapter 6, 0ook 77 of 5'ec)ti%e 1rder $o. "9", otherwise known as the M*e%ised Ad(inistrati%e Code of
19E7M.
W!"r"(', &ection 17, Article /77 of the Constit)tion pro%ides that the President shall ha%e control of all e'ec)ti%e
depart(ents, b)rea)s and offices and shall ens)re that the laws be faithf)lly e'ec)tedJ
W!"r"(', the $ational Labor *elations Co((ission A$L*C= which was created by %ir)ed of Presidential Decree $o.
", otherwise known as the MLabor Code of the Philippines,M is an a#ency )nder the 5'ec)ti%e Depart(ent and was
ori#inally en%isa#ed as bein# a inte#ral part of the Depart(ent Athen Ministry= of Labor and 5(ploy(ent AD1L5=
)nder the ad(inistrati%e s)per%ision of the &ecretary of Labor and 5(ploy(entJ
W!"r"(', )pon the iss)ance of the Ad(nistrati%e Code, the $L*C, by %irt)e of &ection ",, Chapter +, Title /77, 0ook
7/ thereof, beca(e an a#ency attached to the D1L5 for policy and pro#ra( coordination and ad(inistarti%e
s)per%isionJ
W!"r"(', Article "16 of the Labor Code and &ection ",, Chapter +, Title /77, 0ook 7/ of the Ad(istrati%e Code were
a(ended by *ep)blic Act $o. +71, appro%ed on March ", 19E9, which pro%ides that the $L*C shall be attached to
the D1L5 for pro#ra( and policy coordination only and transferred ad(inistrati%e s)per%ision o%er the $L*C, all its
re#ional branches and personnel to the $L*C Char(enJ
W!"r"(', &ection 1+, Article 777 of the Constit)tion #)arantees the ri#ht of all persons to a speedy disposition of their
cases before all 4)dicial, <)asi-4)dicial and ad(inistrati%e bodiesJ
W!"r"(', after the cons)ltations with the rele%ant sectors, the &ecretary of Labor has reco((ended that the
President, p)rs)ant to her powers )nder the Constit)tion and e'istin# laws, dele#ate to the &ecretay of Labor the
power to e'ercise ad(inistrati%e s)per%ision o%er the $L*C and all its re#ional and s)b-re#ional branches or
pro%incial e'tension )nits within the ob4ecti%e of corr)ption within the said a#encyJ
$13, T.5*521*5, 7, FL1*7A MACAPAFAL-A**1@1, President of the *ep)blic of the Philippines, by %irt)e of
the powers %ested in (e by the Constit)ion and e'istin# laws, do hereby order
&5CT71$ 1. D"*".(#o& o !" S"$r"(r0 of L(1or4 The power of the President )nder &ection 17, Article /77 of the
Constit)tion and as the ad(inistrati%e head of the Fo%ern(ent to e'ercise ad(inistrati%e s)per%ision o%er the $L*C,
its re#ional branches and all its personnel, incl)din# the e'ec)ti%e Labor Arbiters, is hereby dele#ated to the
&ecretary of LAbor, with the ob4ecti%e of f)rther i(pro%in# the rate of disposition of cases pendin# before it and its
re#ional and s)b-re#ional branches or pro%incial e'tension )nits and to enhance e'istin# (eas)res for the pre%ention
of #raft and corr)ption within the said a#ency.
2or this p)rpose, the &ecretary of Labor, in the e'ercise of s)ch dele#ated a)thority, shall, a(on# othersC
a. Fenerally o%ersee the operations of the $L*C and its re#ional and s)b-re#ional branches or pro%incial
e'tension )nits for the p)ropse of ins)rin# that cases pendin# befire the( are decided or reso%led e'peditio)slyJ
b. 5nhance e'istin# (eas)res within the a#ency, or initiate new ones, to pre%ent #raft and corr)ption,
incl)din# b)t not li(ited to, the cond)ct of (ana#e(ent a)dits, perfor(ance e%al)ations and inspection to deter(ine
co(pliance with established policies, standards and #)idelinesJ
c. To take s)ch action as (ay be necessary for the proper perfor(ance of official f)nctions, incl)din#
rectification of %iolations, ab)ses, and other for(s of (alad(inistrationJ and
d. 7n%esti#ate, on its own or on co(plaint, (atters in%ol%in# disciplinary action a#ainst any of the
Presidential appointees in the $L*C, in accordance with e'istin# laws, r)les and re#)lations. After co(pletin# hisBher
in%esti#ation, the &ecretary of Labor shall s)b(it a report to the President on the in%esti#ation cond)cted with a
reco((endation as to the penalty to be i(posed or other action to be taken, incl)din# referral to the Presidential
Anti-Fraft Co((ission APAFC=, the 1ffice of the 1(b)ds(an or any other office, co((ittee, co((ission, a#ency,
depart(ent, instr)(entality or branch of the #o%ern(ent for appropriate action.
The dele#ation of a)thority conferred herein )pon the &ecretary of Labor shall not e'tend to the power to re%iew,
re%erse, re%ise, or (odify the decisions of the $L*C in the e'ercise of its <)asi-4)dicial f)nctions.
&5CT71$ ". R"%or o !" Pr"'#+"&4 The $L*C, thro)#h its Chair(an, shall s)b(it a report to the President,
thro)#h the &5cretary of LAbor, within thirty AS== days fro( iss)ance of this 5'ec)ti%e 1reder, on the followin#
(attersC
a. Perfor(ance *eportB A)dit for the last fi%e A,= years, incl)din# list of pendin# cases and cases disposed
of within the said period by the $L*C en banc, by Di%ision and by the Labor Arbiters in each of its re#ional and s)b-
re#ional branches or pro%incial e'tension )nitsJ
b. Detailed Master Plan on how to li<)idate its backlo# of cases with clear ti(etables to clean )p its dockets
with si' A+= (onths fro( the iss)ance hereofJ
c. Co(plete in%entory of its assets and list of personnel indicatin# their present positions and stationsJ and
&)ch other (atters as (ay be re<)ired by the President )pon the reco((endation of the &ecretary Labor.
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&5CT71$ 6. R,*"' (&+ R".,*(#o&4 The &ecretary of Labor, in cons)ltation with the Chair(an of the $L*C, is hereby
a)thori;ed to iss)e r)les and re#)lations for the effecti%e i(ple(entation of the pro%isions of this 5'ec)ti%e 1rder,
s)b4ect to the appro%al by the President.
&5CT71$ . R"%"(*#&. C*(,'"4 5'ec)ti%e 1rder $o. 1E, iss)ed on March 1>, ">>6 is hereby re%oked. All other
e'ec)ti%e iss)ances, r)les and re#)lations or parts thereof which are inconsistent with the pro%isions of this
5'ec)ti%e 1rder are hereby repealed, a(ended, or (odified accordin#ly.
&5CT71$ ,. Eff"$#8#04 This 5'ec)ti%e 1rder shall take effect i((ediately )pon the co(pletion of its p)blication in
the 1fficial Fa;ette or in a newspaper of #eneral circ)lation in the co)ntry.
2>. 0,na1,/y ". *LRC and Lab"! A!b,/e!Hs De%,s,"n
R21e :I' Se%/,"n 1 ". /&e 2445 *LRC R21es
Decisions, resol)tions or orders of the Labor Arbiter shall be final and e'ec)tory )nless appealed to the Co((ission
by any or both parties within ten A1>= calendar days fro( receipt thereofJ and in case of decisions, resol)tions or
orders of the *e#ional Director of the Depart(ent of Labor and 5(ploy(ent p)rs)ant to Article 1"9 of the Labor
Code, within fi%e A,= calendar days fro( receipt thereof.7f the 1>th or ,th day, as the case (ay be, falls on a
&at)rday, &)nday or holiday, the last day to perfect the appeal shall be the first workin# day followin# s)ch &at)rday,
&)nday or holiday. $o (otion or re<)est for e'tension of the period within which to perfect an appeal shall be
allowed.
R21e :II' Se%/,"n 14' 2445 *LRC R21es
Pa= 5'cept as pro%ided in &ection 9 of *)le D, the decisions, resol)tions or orders of the Co((ission shall beco(e
final and e'ec)tory after ten A1>= calendar days fro( receipt thereof by the parties.
b= :pon the e'piration of the ten A1>= calendar day period pro%ided in para#raph Aa= of this &ection, the decision,
resol)tion, or order shall be entered in a book of entries of 4)d#(ent.
The 5'ec)ti%e Clerk or Dep)ty 5'ec)ti%e Clerk shall consider the decision, resol)tion or order as final and e'ec)tory
after si'ty A+>= calendar days fro( date of (ailin# in the absence of ret)rn cards, certifications fro( the post office, or
other proof of ser%ice to parties.Q
24. EKe%2/,"n ". $"ne/a!y 82d-men/
THE *LRC $A*5AL +* E9EC5TI+* +0 85D;$E*T
AAs a(ended by *esol)tion $o. >"->", &eries of ">>"=
P)rs)ant to the pro%isions of Art. "1E Aa= of the Labor Code, as a(ended, in relation to &ection 7, *)le /777 of the
*)les of Proced)re of the $ational Labor *elations Co((ission, the followin# $L*C Man)al on 5'ec)tion of
9)d#(ent is hereby adopted and pro()l#atedC
*:L5 7
313L$ A4+ *24S3R'*3124
&5CT71$ 1. Title of the Man)al. T This Man)al shall be known as the $L*C MA$:AL 1$ 5D5C:T71$ 12
9:DFM5$T A&heriffTs Man)al=, hereafter referred to si(ply as the Man)al.
&5CT71$ ". Constr)ction. T This Man)al shall be constr)ed in a (anner that shall attain a 4)st, e'peditio)s and
ine'pensi%e e'ec)tion of a 4)d#(ent as defined herein.
&5CT71$ 6. &)ppletory Application of *)les of Co)rt and 9)rispr)dence. T 7n the absence of any applicable
pro%ision in this Man)al, and in order to carry o)t its ob4ecti%es, the pertinent pro%isions of the *e%ised *)les of Co)rt
of the Philippines and pre%ailin# 4)rispr)dence (ay, in the interest of e'peditio)s e'ec)tion of a 4)d#(ent, and
whene%er practicable and con%enient, be applied by analo#y or in a s)ppletory character and effect.
&5CT71$ . Definition of Ter(s. T 2or p)rposes of this Man)al, the followin# ter(s are defined as followsC
a= &.5*722 T any p)blic officer tasked with the ser%ice or enforce(ent of writs and processes, incl)din# any
4)d#(ent as defined herein, perfor(in# the d)ties of a sheriff, and shall incl)de one who has been desi#nated as T
special sheriffT in accordance with lawJ
b= 3*7T 12 5D5C:T71$ T an 1rder directin# the sheriff to enforce, i(ple(ent or satisfy the final decisions, orders
or awards of the $ational Labor *elations Co((ission or any of its Labor Arbiters. The writ of e'ec)tion is %alid only
for a period of +*E H5*DRED EI;HTA 61)47 days fro( receipt thereof by the sheriff or d)ly desi#nated officerJ
c= L5/@ T the act of takin# possession, act)al or constr)cti%e, by the sheriff or d)ly desi#nated officer, of s)fficient
property of the losin# party +R +0 THE APPEAL B+*D P+STED BA THE LATTER to satisfy the decision, order or
award.
d= FA*$7&.M5$T T the le%y of (oney, #oods or chattels andBor an interest thereon, belon#in# or owin# to a losin#
party in the possession or control of a third partyJ
e= 9:DFM5$T T as )sed in this Man)al, any order, resol)tion, award or decision of the $ational Labor *elations
Co((ission or any of its Labor ArbitersJ
f= T.7*D PA*T@ CLA7M T a clai( whereby a person, not a party to the case, asserts title or ri#ht to the possession
of the property le%ied )pon.
*:L5 77
36$ S6$R155
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&5CT71$ 1. D)ties. T The sheriff ser%es all writs, e'ec)tes all processes and carries into effect any 4)d#(ent as
defined herein.
&5CT71$ ". *esponsibility and 0ond. T 1nly bonded sheriffs (ay ser%e writs of e'ec)tion in%ol%in# the takin#,
holdin# or deli%erin# of (oney or property in tr)st for the pre%ailin# party. The bond of the sheriff as re<)ired by law
shall be deter(ined by the Co((ission conditioned, a(on# others, for the deli%ery or pay(ent to the #o%ern(ent or
to the persons entitled thereto of all properties, real or personal, that (ay officially co(e into his control and c)stody.
&5CT71$ 6. $or( of Cond)ct. T The sheriff of the Co((ission ()st cond)ct hi(self at all ti(es in an )pri#ht
(anner. .is first and pri(ary d)ty is to i(ple(ent the writ of e'ec)tion and, in acco(plishin# the sa(e, e%ery
reasonable effort sho)ld be e'ercised to achie%e the p)rpose of the writ.
*:L5 777
36$ WR13 25 $9$*'3124
&5CT71$ 1. 5'ec)tion :pon 2inal 9)d#(ent or 1rder. T 5'ec)tion shall iss)e only )pon a 4)d#(ent or order that
finally disposes of an action or proceedin#, e'cept in specific instances where the law pro%ides for e'ec)tion pendin#
appeal.
&5CT71$ ". 7ss)ance, 2or( and Contents of a 3rit of 5'ec)tion. T The writ of e'ec)tion ()st iss)e in the na(e of
the *ep)blic of the Philippines fro( the $ational Labor *elations Co((ission or any of its Labor Arbiters, re<)irin#
the sheriff or d)ly desi#nated officer to e'ec)te their 4)d#(entJ ()st contain the dispositi%e portion of the decision,
order or award so)#ht to be e'ec)tedJ and ()st re<)ire the sheriff or d)ly desi#nated officer to who( it is directed
s)bstantially as followsC
a= 7f the e'ec)tion be for the pay(ent of a s)( of (oney by the losin# party, the writ shall be ser%ed by the sheriff
)pon the losin# party or )pon any other person re<)ired by law to obey the sa(e before proceedin# to satisfy the
4)d#(ent o)t of the personal property of s)ch party and, if no s)fficient personal property can be fo)nd, then o)t of
his real propertyJ
b= 7f the e'ec)tion be for the reinstate(ent of any person to any position, office or e(ploy(ent, s)ch writ shall be
ser%ed by the sheriff )pon the losin# party or )pon any other person re<)ired by law to obey the sa(e. &)ch party or
person (ay be p)nished for conte(pt if he disobeys s)ch decision or order for reinstate(ent, I*CL5DI*;
PAA$E*T +0 SALARA AS A C+*SEL5E*CE +0 REI*STATE$E*T PE*DI*; APPEALJ
c= THE P+STI*; +0 A B+*D BA THE E$PL+AER SHALL *+T STAA THE E9EC5TI+* +0 A* +RDER 0+R
REI*STATE$E*T.
&5CT71$ 6. 5'ec)tion in Case of Death of Party. T 3here a party dies after the finality of the decisionBentry of
4)d#(ent or order, e'ec)tion thereon (ay iss)e or one already iss)ed (ay be enforced in the followin# casesC
a= 7n case of death of the pre%ailin# party, )pon 0ILI*; +0 $+TI+* 0+R S5BSTIT5TI+* +0 PARTA BA THE
HEIRS' S5CCESS+RS?I*?I*TEREST' E9EC5T+R +R AD$I*ISTRAT+RJ
b= 7n case of death by the losin# party, A0TER APPR+PRIATE TESTATE +R I*TESTATE PR+CEEDI*;S
A;AI*ST his s)ccessors-in-interest, e'ec)tor or ad(inistratorJ
c= 7n case of death of the losin# party after e'ec)tion A*D ACT5AL LE:A )pon any of his property, the sa(e (ay
be sold for the satisfaction thereof, and the sheriff (akin# the sale shall acco)nt to his HEIRS, s)ccessors-in-interest,
e'ec)tor or ad(inistrator for any s)rpl)s in his hands.
&5CT71$ . 7ss)ance of a 3rit. T 5'ec)tion shall iss)e )pon an order, resol)tion or decision that finally disposes of
the actions or proceedin#s and A2T5* the co)nsel of record and the parties ha%e been d)ly f)rnished with the
copies of the sa(e in accordance with the $L*C *)les of Proced)re, pro%idedC
a= The Co((ission or Labor Arbiter shall, (ot) propio or )pon (otion of any interested party, iss)e a writ of
e'ec)tion on a 4)d#(ent only within fi%e A,= years fro( the date it beco(es final and e'ec)tory. $o (otion for
e'ec)tion shall be entertained nor a writ be iss)ed )nless the Co((ission or Labor Arbiter is in possession of the
records of the case which shall incl)de an entry of 4)d#(ent where the case has been appealed E9CEPT I* CASES
+0 REI*STATE$E*T PE*DI*; APPEAL A*D I* TH+SE CASES WHERE PARTIAL E9EC5TI+* IS ALL+WED
BA LAW' WHERE THE LAB+R ARBITER SHALL RETAI* D5PLICATE +RI;I*AL C+PIES +0 THE DECISI+*
T+ BE I$PLE$E*TED A*D PR++0 +0 SER:ICE THERE+0 0+R THE P5RP+SE +0 ITS I$$EDIATE
E*0+RCE$E*T.
b= The &ecretary of Labor and 5(ploy(ent +R the Chair(an of the Co((ission (ay desi#nate special sheriffs and
take any (eas)re )nder e'istin# laws to ens)re co(pliance of their decisions, orders or awards and those of the
Labor Arbiters, incl)din# the i(position of ad(inistrati%e fines, which shall not be less than fi%e h)ndred pesos
AP,>>.>>= nor (ore than ten tho)sand pesos AP1>,>>>.>>=.
c= The &ecretary of Labor and 5(ploy(ent, +R the Co((ission, +R any Labor Arbiter, in appropriate cases, (ay
dep)ti;e the Philippine $ational Police or any law enforce(ent a#encies T+ ASSIST in the enforce(ent of final
awards, orders or decisions.
&5CT71$ ,. RES+L5TI+* +0 $+TI+* T+ L5ASH. ? I* CASE THE A;;RIE:ED PARTA 0ILES A $+TI+* T+
L5ASH' SAID $+TI+* SHALL BE RES+L:ED BA THE LAB+R ARBITER WITHI* TE* 6147 DAAS 0R+$
S5B$ISSI+* +0 SAID $+TI+* 0+R RES+L5TI+*. A* APPEAL 0R+$ THE +RDER +0 THE LAB+R
ARBITER RES+L:I*; THE $+TI+* T+ L5ASH $AA BE TREATED AS A PETITI+* 0+R I*85*CTI+*
5*DER PARA;RAPH 6e7 +0 ARTICLE 21) I0 THE LAB+R C+DE' AS A$E*DED' I0 THE SA$E SATIS0IES
THE REL5IRE$E*TS PR+:IDED 0+R BA LAW.
&5CT71$ +. 5'ec)tion by 7ndependent Action. T A 4)d#(ent, after the lapse of fi%e A,= years fro( the date it
beco(es final and e'ec)tory and before it is barred by prescription, (ay only be enforced by A* I*DEPE*DE*T
action.
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&5CT71$ 7. Control and &)per%ision 1%er the &heriff. T The Co((ission or Labor Arbiter iss)in# the writ shall ha%e
f)ll control and s)per%ision o%er the sheriff assi#ned to enforce the sa(e.
*:L5 7/
$9$*'3124
&5CT71$ 1. Properties 5'e(pt fro( 5'ec)tion. T 1nly the properties of the losin# party shall be the s)b4ect of
e'ec)tion, e'ceptC
a= The losin# partyTs fa(ily ho(e, constit)ted in accordance with law and, in the absence thereof, the ho(estead in
which he resides, and land necessarily )sed in connection therewith, s)b4ect to the li(its fi'ed by lawJ
b= .is necessary clothin#, and that of his fa(ilyJ
c= .o)sehold f)rnit)res and )tensils necessary for ho)sekeepin#, and )sed for that p)rpose by the losin# party s)ch
as he (ay select, of a %al)e not e'ceedin# the a(o)nt fi'ed by lawJ
d= Pro%isions for indi%id)al or fa(ily )se s)fficient for three A6= (onthsJ
e= The professional libraries of attorneys, 4)d#es, physicians, phar(acists, dentists, en#ineers, s)r%eyors, cler#y(en,
teachers, and other professionals, not e'ceedin# the a(o)nt fi'ed by lawJ
f= &o ()ch of the earnin#s of the losin# party for his personal ser%ices within the (onth precedin# the le%y as are
necessary for the s)pport of his fa(ilyJ
#= All (oneys, benefits, pri%ile#es or ann)ities accr)in# or, in any (atter, #rowin# o)t of any life ins)ranceJ
h= Tools and instr)(ents necessarily )sed by hi( in his trade or e(ploy(ent of a %al)e not e'ceedin# three
tho)sand pesos AP6,>>>.>>=J
i= 1ther properties especially e'e(pted by law.
&5CT71$ ". 5'ec)tion of Money 9)d#(ent. T The sheriff or d)ly desi#nated officer shall enforce the e'ec)tion of a
(oney 4)d#(ent by le%yin# on all the properties, real and personal, of the losin# party of whate%er na(e and nat)re
whatsoe%er, and which (ay be disposed of for %al)e, not e'e(pt fro( e'ec)tion, or on a s)fficient a(o)nt of s)ch
property, if there be s)fficient and sellin# the sa(e at p)blic a)ction to the hi#hest bidder, and depositin# the
proceeds thereof with the cashier of the $ational Labor *elations Co((ission and that the sa(e shall be released
only )pon orders fro( the Co((ission or Labor Arbiter concerned. 3here pay(ents are (ade in checks, the sa(e
shall be iss)ed in the na(e of the $ational Labor *elations Co((ission. Any e'cess in the proceeds of the sale o%er
the 4)d#(ent and the accr)in# costs shall be deli%ered by the proper cashier to the losin# party who owns the
property sold )nless otherwise directed by the 4)d#(ent or order. 3hen there is (ore property of the losin# party
than is s)fficient to satisfy the 4)d#(ent or award and accr)in# costs, within the %iew of the officer, he shall le%y only
on s)ch part of the property as is a(ply s)fficient to satisfy the 4)d#(ent and costs.
&5CT71$ 6. /ol)ntary &atisfaction of Money 9)d#(ent. T Any %ol)ntary tender of pay(ent by the losin# party shall
be effected by depositin# the sa(e with the cashier of the $ational Labor *elations Co((ission and shall be
released only )pon orders fro( the Co((ission or Labor Arbiter who iss)ed the writ.
*:L5 /
L$?A
&5CT71$ 1. Le%y on Personal Property. - To constit)te a %alid le%y on personal property, the sheriff ()st take
possession and control of the sa(e in the followin# (annerC
a= Personal property capable of (an)al deli%ery, by takin# and safely keepin# it in his capacity as sheriff after iss)in#
the correspondin# receipt thereforJ
b= &tocks shares, or an interest in stocks or shares, of any corporation or co(pany, by lea%in# with the president or
(ana#in# a#ent thereof, a copy of the decision, order or award, and a notice statin# that the stock or interest of the
party a#ainst who( the le%y is iss)ed, is le%ied p)rs)ant theretoJ
c= Debts and credits, and other personal property not capable of (an)al deli%ery, by lea%in# with the person owin#
s)ch debts, or ha%in# in his possession or )nder his control, s)ch credits or other personal property, or with his
a#ent, a copy of the decision, order or award, and notice that the debts owin# by hi( to the party a#ainst who( the
le%y is iss)ed, and the credits and other personal property in his possession, or )nder his control, belon#in# to said
party are le%ied in p)rs)ance of s)ch decisions, order or awardJ
d= The interest of the pre%ailin# party a#ainst who( le%y is iss)ed in property belon#in# to the estate of a decedent,
whether as heir le#atee or de%isee, by ser%in# to the e'ec)tor or ad(inistrator or other personal representati%e of the
decedent a copy of the decision, order or award and a notice that said interest is le%ied. A copy of said decision,
order or award, and notice shall also be filed with the 1ffice of the Clerk of Co)rt in which said estate is bein# settled
and ser%ed )pon the heir, le#atee or de%isee concerned.
7f the property so)#ht to be le%ied is in c)stodia le#is, a copy of the decision, order or award, and notice shall be filed
with the proper co)rt, and notice of le%y ser%ed )pon the c)stodian of s)ch property.
&5CT71$ ". 5ffect of Farnish(ent. - Farnish(ent is effected by the sheriff or a)thori;ed officer by ser%in# a notice
thereof to the third party who has possession or control of s)ch (oney, #oods, chattels andBor any interest therein,
belon#in# or owin# to the losin# party directin# or re<)irin# hi( A#arnishee= to hold the sa(e s)b4ect to f)rther orders
fro( the Co((ission or Labor Arbiter who iss)ed the writ. 3here the property #arnished consists of (oney
deposited with a bank or third party, the Co((ission or Labor Arbiter shall order that the sa(e shall only be released
to the cashier of the $L*C.
&5CT71$ 6. Le%y on *eal Property. T *eal property or any interest therein (ay be le%ied in the followin# (annerC
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a= *eal property, or #rowin# crops thereon, standin# )pon the records of the re#ister of deeds of the pro%ince or city
in the na(e of the party a#ainst who( le%y is iss)ed, not appearin# at all )pon s)ch records, by filin# with the
re#ister of deeds a copy of the decision, order, or award, to#ether with a description of the property le%ied, and a
notice that it is le%ied )pon and by lea%in# a copy of s)ch decision, order or award, description, and notice with the
occ)pant of the property, if there is any. 3hen the property has been bro)#ht )nder the operation of the land
re#istration syste(, the notice shall contain a reference to the n)(ber of the certificate of title and the %ol)(e and
pa#e in the re#istration book where the certificate is re#istered. The re#ister of deeds ()st inde' le%ies filed )nder
this para#raph in the na(e of both the pre%ailin# party and the losin# partyJ
b= *eal property, or #rowin# crops thereon or any interest therein, belon#in# to the party a#ainst who( le%y is iss)ed,
and held by any other person or standin# on the records of the re#ister of deeds in the na(e of any other person, by
filin# with the re#ister of deeds a copy of the decision, order or award, to#ether with a description of the property, and
a notice that s)ch real property, and any interest therein of said property, held or standin#, in the na(e of s)ch other
persons, na(in# hi( are le%ied by lea%in# with the occ)pant of the property, if any, and with s)ch other persons, or
his a#ents, if fo)nd within the pro%ince or city or at the residence of either, if within the pro%ince or city, a copy of s)ch
decision, order or award, description and notice. 3hen the property has been bro)#ht )nder the operation of the land
re#istration syste(, the notice shall contain a reference to the n)(ber of the certificate of title and the %ol)(e and
pa#e in the re#istration book where the certificate is re#istered. The re#ister of deeds ()st inde' le%ies filed )nder
this para#raph in the na(e of the pre%ailin# party, the losin# party and of the person who( the property is held or in
whose na(e it stands on the records.
&5CT71$ . 5ffect of Le%y. T The le%y on e'ec)tion shall create a lien in fa%or of the pre%ailin# party o%er the ri#ht,
title or interest of the losin# party in s)ch property at the sa(e ti(e of the le%y.
&5CT71$ ,. 5ffect of Le%y on Debts and Credits. T All persons ha%in# in their possession or )nder their control any
credit or other si(ilar personal property belon#in# to the party a#ainst who( le%y is iss)ed, or owin# any debt to the
latter, at the ti(e of ser%ice )pon the( a copy of the decision, order or award, and notice, shall be liable to the
pre%ailin# party for the a(o)nt of s)ch credits, debts or other property, )ntil the le%y is dischar#ed, or any 4)d#(ent
reco%ered by hi( is satisfied, )nless s)ch property is deli%ered or transferred, or s)ch debts are paid, to the sheriff or
d)ly desi#nated officer of the $ational Labor *elations Co((ission.
*:L5 /7
361R+ PAR3A *LA1!
&5CT71$ 1. Proceedin#s. T SH+5LD A THIRD PARTA CLAI$ BE 0ILED D5RI*; E9EC5TI+* +0 THE
85D;$E*T AWARD' THE THIRD PARTA CLAI$A*T shall E9EC5TE an affida%it STATI*; his title T+
PR+PERTA or possession thereof WITH S5PP+RTI*; E:IDE*CE and shall file the sa(e with the sheriff and
copies thereof ser%ed )pon the Co((ission or Labor Arbiter who iss)ed the writ and )pon the pre%ailin# party. :pon
receipt of the third party clai(, all proceedin#s, with respect to the e'ec)tion of the property s)b4ect of the third party
clai(, shall a)to(atically be s)spended. The Co((ission or Labor Arbiter who iss)ed the writ $AA REL5IRE THE
THIRD PARTA CLAI$A*T T+ ADD5CE ADDITI+*AL E:IDE*CE I* S5PP+RT +0 HIS A00IDA:IT +0 THIRD
PARTA CLAI$ A*D T+ P+ST A CASH +R S5RETA B+*D EL5I:ALE*T T+ THE A$+5*T +0 HIS CLAI$ AS
PR+:IDED 0+R I* SECTI+* 6' R5LE :I' +0 THE *LRC R5LES +0 PR+CED5RE' WITH+5T PRE85DICE T+
THE P+STI*; BA THE PRE:AILI*; PARTA +0 A S5PERSEDEAS B+*D I* A* A$+5*T EL5I:ALE*T T+
THAT P+STED BA THE THIRD PARTA CLAI$A*T. The PR+PRIETA of the THIRD PARTA clai( SHALL BE
RES+L:ED within ten A1>= workin# days fro( S5B$ISSI+* +0 THE CLAI$ 0+R RES+L5TI+*. The decision +0
the Labor Arbiter is appealable to the Co((ission within ten A1>= workin# days fro( notice A*D the Co((ission
shall resol%e the appeal within the sa(e period.
*:L5 /77
SAL$ 25 PR2P$R3A 24 $9$*'3124
&5CT71$ 1. $otice of &ale. T $o sale of property on e'ec)tion shall proceed witho)t notice of sale describin# the
property to be sold, its location, the date, ti(e and place of sale and ter(s and conditions thereof.
a= 7n case of perishable property, by postin# written notice of the ti(e and place of the sale in three A6= p)blic places
in the ()nicipality or city, where the sale is to take place, for s)ch ti(e as the sheriff (ay dee( reasonable,
considerin# the character and condition of the propertyJ
b= 7n case of other personal property, by postin# a si(ilar notice in three A6= p)blic places in the ()nicipality or city
where the sale is to take place, for not less than fi%e A,= nor (ore than ten A1>= daysJ
c= 7n case of real property, by postin# for twenty A">= days a notice in three A6= p)blic places in the ()nicipality or city
where the property is sit)ated, a si(ilar notice partic)larly describin# the property and statin# where the property is to
be sold, and, if the assessed %al)e of the property e'ceeds fifty tho)sand pesos AP,>,>>>.>>=, by p)blishin# a copy
of the notice once a week for two A"= consec)ti%e weeks, in a newspaper of #eneral circ)lation in the pro%ince or city,
if there be one. 7f there are newspapers p)blished in the pro%ince or city in 5n#lish andBor 2ilipino, then the
p)blication shall be (ade in one s)ch newspaperJ
d= 7n all cases, written notice of the sale shall be #i%en to the losin# partyJ
e= An officer sellin# witho)t the notice prescribed in the precedin# sections shall forfeit fi%e tho)sand pesos
AP,,>>>.>>= to any party in4)red thereby, in addition to his act)al da(a#es, both to be reco%ered in a sin#le proper
actionJ and a person willf)lly re(o%in# or defacin# the notice posted, if done before the sale, shall forfeit fi%e
tho)sand pesos AP,,>>>.>>= to any person in4)red by reason thereof, to be reco%ered in any proper action.
An e'ec)tion sale witho)t the %alid le%y and notice of sale as herein pro%ided is n)ll and %oid and %ests no title in the
p)rchaser.
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&5CT71$ ". $o &ale if 9)d#(ent and Costs Paid. T At any ti(e before the sale of property on e'ec)tion, the losin#
party (ay pre%ent the sale by payin# the a(o)nt re<)ired by the e'ec)tion and the costs that ha%e been inc)rred
therein.
&5CT71$ 6. .ow Property &old on 5'ec)tion. T All sales of property )nder e'ec)tion shall be (ade at p)blic
a)ction, to the hi#hest bidder, between the ho)rs of nine in the (ornin# and fi%e in the afternoon. After s)fficient
property has been sold to satisfy the e'ec)tion, no (ore shall be sold. 3hen the sale is of real property, consistin# of
se%eral known lots, they shall be sold separatelyJ or when a portion of s)ch real property is clai(ed by a third person,
he (ay re<)ire it to be sold separately. 3hen the sale is of personal property capable of (an)al deli%ery, it shall be
sold within the %iew of those attendin# the sale and in s)ch parcels as are likely to brin# the hi#hest price. The losin#
party, if present at the sale, (ay direct the order in which property, real or personal, shall be sold, when s)ch property
consists of se%eral known lots or parcels which can be sold to ad%anta#e separately. $either the sheriff or d)ly
desi#nated officer holdin# the e'ec)tion can beco(e a p)rchaser, nor be interested directly or indirectly in any
p)rchase at s)ch sale.
&5CT71$ . *ef)sal of P)rchaser to Pay. T 7f a p)rchaser ref)ses to pay the a(o)nt bid by hi( for property str)ck
off to hi( at a sale )nder e'ec)tion, the sheriff (ay a#ain sell the property to the hi#hest bidder and shall not be
responsible for any loss occasioned therebyJ b)t the Co((ission or Labor Arbiter who iss)ed the writ of e'ec)tion
(ay order the ref)sin# p)rchaser to pay to the for(er the a(o)nt of s)ch loss, with costs, and (ay p)nish hi( for
conte(pt if he disobeys the order. The a(o)nt of s)ch pay(ent shall be for the benefit of the person entitled to the
proceeds of the e'ec)tion, )nless the e'ec)tion has been f)lly satisfied, in which e%ent, s)ch proceeds shall be for
the benefit of the losin# party. 3hen a p)rchaser ref)ses to pay, the sheriff (ay thereafter re4ect any s)bse<)ent bid
of s)ch person.
&5CT71$ ,. Pre%ailin# Party as P)rchaser. T 3hen the p)rchaser is the pre%ailin# party, and no third party clai( has
been filed, he need not pay the a(o)nt of the bid if it does not e'ceed the a(o)nt of the 4)d#(ent. 7f it does, he shall
pay only the e'cess.
&5CT71$ +. Ad4o)rn(ent of &ale. T 0y written consent of the pre%ailin# party and losin# party, the sheriff (ay
ad4o)rn any sale on e'ec)tion to any date a#reed )pon in writin# by the parties. 3itho)t s)ch a#ree(ent, he (ay
ad4o)rn the sale fro( day to day, if it beco(es necessary to do so for lack of ti(e to co(plete the sale on the day
fi'ed in the notice.
&5CT71$ 7. Con%eyance to P)rchaser of Personal Property Capable of Man)al Deli%ery. T 3hen the p)rchaser of
any personal property capable of (an)al deli%ery pays the p)rchase price, the sheriff (akin# the sale shall deli%er
the property to the p)rchaser and, if desired, e'ec)te and deli%er to hi( a certificate of sale. The sale con%eys to the
p)rchaser all the ri#hts which the losin# party has in s)ch property on the day of its le%y.
&5CT71$ E. Con%eyance to P)rchaser of Personal Property $ot Capable of Man)al Deli%ery. T 3hen the p)rchaser
of any personal property not capable of (an)al deli%ery pays the p)rchase price, the sheriff (akin# the sale shall
e'ec)te and deli%er to the p)rchaser a certificate of sale. &)ch certificate con%eys to the p)rchaser all the ri#hts
which the losin# party has in s)ch property on the day of its le%y.
&5CT71$ 9. Con%eyance of *eal Property. Certificate Thereof Fi%en to P)rchaser and 2iled with the *e#ister of
Deeds. T :pon a sale of real property, the sheriff shall #i%e to the p)rchaser a certificate of sale containin#C
a= A partic)lar description of the real property soldJ
b= The price paid for each distinct lot or parcelJ
c= The whole price paid by hi(.
A d)plicate of s)ch certificate shall be filed by the sheriff with the 1ffice of the *e#ister of Deeds of the pro%ince or
city where the property is located.
&5CT71$ 1>. Certificate of &ale 3hen Property is Clai(ed by Third Party. T 3hen a property sold by %irt)e of a writ
of e'ec)tion is clai(ed by a third party, the certificate of sale to be iss)ed by the sheriff p)rs)ant to precedin#
sections 7, E and 9 shall indicate therein s)ch third party clai(.
&5CT71$ 11. *ede(ption of *eal Property &oldJ 3ho (ay *edee(. T *eal property sold as pro%ided in the last
precedin# section or any part thereof separately, (ay be redee(ed in the (anner hereinafter pro%ided, by the
followin# partiesBpersonsC
a= The losin# party, or his s)ccessor in interest in the whole or any part of the propertyJ
b= A creditor ha%in# a lien by attach(ent, 4)d#(ent or (ort#a#e on the property sold, or on so(e part thereof,
s)bse<)ent to the 4)d#(ent )nder which the property was sold. &)ch redee(in# creditor is ter(ed a rede(ptioner.
&5CT71$ 1". Ti(e and Manner of, and A(o)nts Payable on, &)ccessi%e *ede(ptions. $otice to be Fi%en and
2iled. T The losin# party, or rede(ptioner, (ay redee( the property fro( the p)rchaser, at any ti(e within twel%e
A1"= (onths after the sale, by payin# the p)rchaser the a(o)nt of his p)rchase, with one per cent)( per (onth
interest thereon, in addition, )p to the ti(e of rede(ption, to#ether with the a(o)nt of any assess(ents or ta'es
which the p)rchaser (ay ha%e paid thereon after p)rchase and interest on s)ch last-na(ed a(o)nt at the sa(e rateJ
and if the p)rchaser be also a creditor ha%in# a prior lien to that of the rede(ptioner, other than the 4)d#(ent )nder
which s)ch p)rchase was (ade, the a(o)nt of s)ch other lien, with interest. Property so redee(ed (ay a#ain be
redee(ed within si'ty A+>= days after the last rede(ption )pon pay(ent of the s)( paid in the last rede(ption, with
two per cent)( thereon in addition, and the a(o)nt of any assess(ents or ta'es which the last rede(ptioner (ay
ha%e paid thereon after rede(ption by hi(, with interest on s)ch last-na(ed a(o)nt, and in addition, the a(o)nt of
any liens held by said last rede(ptioner prior to his own, with interest. The property (ay be a#ain, and as often as a
rede(ptioner is so disposed, redee(ed fro( any pre%io)s rede(ptioner within si'ty A+>= days after the last
rede(ption, by payin# the s)( paid on the last pre%io)s rede(ption, with two per cent)( thereon in addition, and the
a(o)nt of any assess(ents or ta'es which the last pre%io)s rede(ptioner paid after the rede(ption thereon, with
interest thereon, and the a(o)nt of any liens held by the last rede(ptioner prior to his own, with interest.
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3ritten notice of any rede(ption ()st be #i%en to the sheriff who (ade the sale a d)plicate filed with the *e#ister of
Deeds of the pro%ince or city, and if any assess(ents or ta'es are paid by the rede(ptioner or if he has or ac<)ires
any lien other than that )pon which the rede(ption was (ade, notice thereof ()st in like (anner be #i%en to the
sheriff and filed with the re#ister of deedsJ if s)ch notice be not filed, the property (ay be redee(ed witho)t payin#
s)ch assess(ents, ta'es or liens.
&5CT71$ 16. 5ffect of *ede(ption by Losin# Party, and a Certificate to be Deli%ered and *ecorded There)pon. To
3ho( Pay(ents on *ede(ption Made. T 7f the losin# party redee(s, he shall (ake the sa(e pay(ents as are
re<)ired to effect a rede(ption by a rede(ptioner, where)pon the effect of the sale is ter(inated and he is restored
to his estate, and the person to who( the pay(ent is (ade shall e'ec)te and deli%er to hi( a certificate of
rede(ption acknowled#ed or appro%ed before a notary p)blic or other officer a)thori;ed to take acknowled#(ents of
con%eyances of real property. &)ch certificate ()st be filed and recorded in the office of the *e#ister of Deeds of the
pro%ince or city in which the property is sit)ated, and the *e#ister of Deeds ()st note the record thereof on the
(ar#in of the record of the certificate of sale. The pay(ents (entioned in this and the last precedin# sections (ay be
(ade to the p)rchaser or rede(ptioner, or for hi( to the sheriff or d)ly desi#nated officer who (ade the sale.
&5CT71$ 1. Proof *e<)ired of *ede(ptioner. T A rede(ptioner shall prod)ce to the sheriff, or person fro( who(
he seeks to redee(, and ser%e with his notice to the sheriffC
a= A copy of the 4)d#(ent or order )nder which he clai(s the ri#ht to redee(, certified by the proper officer wherein
the 4)d#(ent is docketedJ or, if he redee(s )pon a (ort#a#e or other liens, a (e(orand)( of the record thereof,
certified by the *e#ister of DeedsJ
b= A copy of any assi#n(ent necessary to establish his clai(, %erified by the affida%it of hi(self, or of a s)bscribin#
witness theretoJ
c= An affida%it by hi(self or his a#ent, showin# the a(o)nt then act)ally d)e on the lien.
&5CT71$ 1,. Deed and Possession to be Fi%en at 5'piration of *ede(ption Period. 0y 3ho( 5'ec)ted or Fi%en. T
7f no rede(ption be (ade within twel%e A1"= (onths after the sale, the p)rchaser, or his assi#nee, is entitled to a
con%eyance and possession of the propertyJ or, if so redee(ed whene%er si'ty A+>= days ha%e elapsed and no other
rede(ption has been (ade, and notice thereof #i%en, and the ti(e of rede(ption has e'pired, the last rede(ptioner,
or his assi#nee, is entitled to the con%eyance and possessionJ b)t in all cases, the losin# party shall ha%e the entire
period of twel%e A1"= (onths fro( date of the re#istration of the sale to redee( the property. The deed shall be
e'ec)ted by the sheriff (akin# the sale or by his s)ccessor in office, and in the latter case, shall ha%e the sa(e
%alidity as tho)#h the sheriff (akin# the sale has contin)ed in office and e'ec)ted it.
:pon the e'ec)tion and deli%ery of said deed, the p)rchaser, or rede(ptioner, or his assi#nee, shall be s)bstit)ted to
and ac<)ire all the ri#hts, title, interest and clai( of the losin# party to the property as of the ti(e of le%y, e'cept as
a#ainst the losin# party in possession, in which case, the s)bstit)tion shall be effecti%e as of the date of the deed.
The possession of the property shall be #i%en to the p)rchaser or last rede(ptioner by the sa(e sheriff )nless a third
party is act)ally holdin# the property ad%ersely to the losin# party.
&5CT71$ 1+. *eco%ery of Price 7f &ale $ot 5ffecti%eJ *e%i%al of 9)d#(ent. T 7f the p)rchaser of real property sold on
e'ec)tion, or his s)ccessor in interest fails to reco%er the possession thereof, or is e%icted therefro( in conse<)ence
of irre#)larities in the proceedin#s concernin# the sale, or beca)se the property sold was e'e(pt fro( e'ec)tion, or
beca)se a third party has %indicated his clai( to the property, he (ay, in a proper action, reco%er fro( the pre%ailin#
party the price paid, with interest, or so ()ch thereof as has not been deli%ered to the losin# partyJ or he (ay, on
(otion after notice, ha%e the ori#inal 4)d#(ent re%i%ed in his na(e for the whole price with interest, or so ()ch
thereof as has been deli%ered to the losin# party. The 4)d#(ent so re%i%ed shall ha%e the sa(e force and effect as an
ori#inal 4)d#(ent wo)ld ha%e as of the date of the re%i%al.
*:L5 /777
S6$R155FS R$3'R4
&5CT71$ 1. *et)rn of 3rit of 5'ec)tion. T The writ of e'ec)tion shall be (ade ret)rnable to the Co((ission or
Labor Arbiter who iss)ed it at any ti(e not less than ten A1>= nor (ore than +*E H5*DRED EI;HTA 61)47 days
after its receipt by the sheriff who shall set forth in writin# the whole proceedin#s and file it with the Co((ission or
Labor Arbiter to for( part of the records of the case. 2ail)re to (ake the ret)rn within the stated period shall s)b4ect
the sheriff to a fine of not less than fi%e h)ndred pesos AP,>>.>>=, or s)spension for fifteen A1,= days witho)t pay or
both.
&5CT71$ ". Prohibition. T 7n the e%ent the 4)d#(ent or order is ret)rned )nsatisfied, either wholly or partially, the
sheriff shall no lon#er e'ec)te the 4)d#(ent or order )nless an alias writ of e'ec)tion is d)ly iss)ed.
&5CT71$ 6. 0reak 1pen 1rderJ 3hen 7ss)ed. T &ho)ld the L+SI*; PARTA, his a#ent or representati%e ref)se or
prohibit the sheriff or his a)thori;ed representati%e entry to the place where the property s)b4ect of e'ec)tion is
located or kept, the PRE:AILI*; PARTA (ay apply for a break open order to the Co((ission or Labor Arbiter
concerned 3.1, after d)e notice and hearin#, SHALL ISS5E S5CH +RDER WHICH IS I$$EDIATELA
E9EC5T+RA.
*:L5 7D
!1S*$LLA4$2'S PR2?1S124S
&5CT71$ 1. .o)rs and Days 3hen 3rit &hall 0e &er%ed. T 3rit of 5'ec)tion shall be ser%ed at any day, e'cept
&at)rdays, &)ndays, and holidays, between the ho)rs of ei#ht in the (ornin# and fi%e in the afternoon. 7f, by nat)re
of the losin# partyTs b)siness, it re<)ires the i(ple(entation of the sa(e beyond the period pro%ided herein, a
written a)thori;ation ()st be sec)red by the sheriff or d)ly desi#nated officer fro( the Co((ission or Labor Arbiter
who iss)ed the writ.
&5CT71$ ". &heriffTs *eport. - The &heriff enforcin# the writ of e'ec)tion shall (ake a RE;5LAR stat)s report on
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its i(ple(entation to the Co((ission or Labor Arbiter who iss)ed the sa(e. &tandard for(s shall be (ade a%ailable
to the sheriff in co(pliance with this pro%ision.
&5CT71$ 6. Assi#n(ent of 3rits of 5'ec)tion. T The Co((ission or Labor Arbiters iss)in# the writs of e'ec)tion, in
coordination with the 5'ec)ti%e Labor Arbiter, shall cond)ct a raffle for p)rposes of assi#nin# writs of e'ec)tion to the
sheriffBs.
&5CT71$ . ST+RA;E of Le%ied Property. T To a%oid pilfera#e or da(a#e to le%ied property, the sa(e shall be
in%entoried and stored in a bonded wareho)se, where%er a%ailable, or in a sec)red place as (ay be deter(ined by
the LAB+R ARBITER +R THE C+$$ISSI+* with notice to the losin# party or third party clai(ant. 2or this p)rpose,
the sheriff shall infor( the Co((ission or Labor Arbiter concerned of the correspondin# stora#e fees,
CHAR;EABLE T+ THE PRE:AILI*; PARTA.
&5CT71$ ,. *eferral of H)estions *elati%e to 3rit 5nforce(ent. T H)estions relati%e to writ of enforce(ent shall be
referred to the Co((ission or Labor Arbiter who iss)ed the writ for resol)tion.
&5CT71$ +. CASH AD:A*CE A*D 5'ec)tion 2eesT &heriffs or d)ly desi#nated officers shall be pro%ided at the
be#innin# of the (onth with a cash ad%ance not e'ceedin# TW+ TH+5SA*D PES+S AP",>>>.>>= for transportation
e'penses which shall be li<)idated at the end of the (onth with a state(ent of e'penses and itinerary of tra%el d)ly
appro%ed by the Co((ission or Labor Arbiter iss)in# the writ.
The sheriff or d)ly desi#nated officer shall collect the followin# e'ec)tion fees which shall be char#ed a#ainst the
losin# partyC
A1=2or awards less than P,,>>>.>>
-P">>.>>J
A"= P,,>>>.>> or (ore b)t less than
P">,>>>.>> -P>>.>>J
A6= P">,>>>.>> or (ore b)t less than
P,>,>>>.>> -P+>>.>>J
A= P,>,>>>.>> or (ore b)t not less than
P1>>,>>>.>> -PE>>.>>J
A,= P1>>,>>>.>> or (ore b)t not e'ceedin#
P1,>,>>>.>> -P1,>>>.>>J
A+= P1,>,>>>.>> the fee is pl)s P1>.>>
for e%ery P1,>>>.>> in e'cess of P1,>,>>>.>>
*:L5 D
$55$*31?13A A4+ R$P$AL147 *LA'S$
&5CT71$ 1. 5ffecti%ity. T This Man)al shall take effect fifteen A1,= days after its p)blication in two A"= newspapers of
#eneral circ)lation.
&5CT71$ ". *epealin# Cla)se. T The e'istin# &heriffs Man)al of the $L*C shall be dee(ed s)perseded )pon the
effecti%ity thereof.
25. P!e?EKe%2/,"n C"n.e!en%e
R21e 9I' Se%/,"n 2 ". /&e 2445 *LRC R21es
Pr"4E9"$,#o& Co&f"r"&$". - 3ithin two A"= workin# days fro( receipt of a (otion for the iss)ance of a writ of
e'ec)tion, and s)b4ect to &ection 1, para#raph Ab= of this *)le, the Labor Arbiter shall sched)le a pre-e'ec)tion
conference or hearin# to thresh o)t (atters rele%ant to e'ec)tion, incl)din# the co(p)tation of the award.Q
26. L2as&a1 ". W!,/ ". EKe%2/,"n:
R,*" QI, S"$#o& GG of !" :CC< NLRC R,*"' pro%idesC PR"'o*,#o& of Mo#o& o P,('!. - The (ere filin# of a (otion
to <)ash shall not stay e'ec)tion proceedin#s.A (otion to <)ash shall be resol%ed by the Labor Arbiter within ten A1>=
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workin# days fro( s)b(ission of said (otion for resol)tion.Q
27. T&,!d Pa!/y C1a,ms:
R,*" QI, S"$#o& G: of !" :CC< NLRC R,*"' pro%idesC PT!#r+ P(r0 C*(#m. - A third party clai( shall be filed within
fi%e A,= days fro( the last day of postin# or p)blication of the notice of e'ec)tion saleJ otherwise the clai( shall be
fore%er barred. The third party clai(ant shall e'ec)te an affida%it statin# his title to the property or ri#ht to possession
thereof with s)pportin# e%idence, and shall file the sa(e with the &heriff and the Co((ission or Labor Arbiter who
iss)ed the writ of e'ec)tion. :pon receipt of the third party clai(, all proceedin#s, with respect to the e'ec)tion of the
property s)b4ect of s)ch clai(, shall a)to(atically be s)spended. The Labor Arbiter who iss)ed the writ (ay re<)ire
the third party clai(ant to add)ce additional e%idence in s)pport of his third party clai( and to post a cash or s)rety
bond e<)i%alent to the a(o)nt of his clai(, as pro%ided for in &ection + of *)le /7, witho)t pre4)dice to the postin# by
the pre%ailin# party of a s)persedeas bond in an a(o)nt e<)i%alent to that posted by the third party clai(ant.The
Labor Arbiter shall resol%e the propriety of s)ch third party clai( within ten A1>= workin# days fro( s)b(ission of said
clai( for resol)tion.Q
2). R21e 65' R21es ". C,#,1 P!"%ed2!eC
&ection 1. Petition for certiorari.
3hen any trib)nal, board or officer e'ercisin# 4)dicial or <)asi-4)dicial f)nctions has acted witho)t or in e'cess of its
or his 4)risdiction, or with #ra%e ab)se of discretion a(o)ntin# to lack or e'cess of 4)risdiction, and there is no appeal,
or any plain, speedy, and ade<)ate re(edy in the ordinary co)rse of law, a person a##rie%ed thereby (ay file a
%erified petition in the proper co)rt, alle#in# the facts with certainty and prayin# that 4)d#(ent be rendered ann)llin#
or (odifyin# the proceedin#s of s)ch trib)nal, board or officer, and #rantin# s)ch incidental reliefs as law and 4)stice
(ay re<)ire.
The petition shall be acco(panied by a certified tr)e copy of the 4)d#(ent, order or resol)tion s)b4ect thereof, copies
of all pleadin#s and doc)(ents rele%ant and pertinent thereto, and a sworn certification of non-for)( shoppin# as
pro%ided in the third para#raph of section 6, *)le +.
&ec. ". Petition for prohibition.
3hen the proceedin#s of any trib)nal, corporation, board, officer or person, whether e'ercisin# 4)dicial, <)asi-4)dicial
or (inisterial f)nctions, are witho)t or in e'cess of its or his 4)risdiction, or with #ra%e ab)se of discretion a(o)ntin#
to lack or e'cess of 4)risdiction, and there is no appeal or any other plain, speedy, and ade<)ate re(edy in the
ordinary co)rse of law, a person a##rie%ed thereby (ay file a %erified petition in the proper co)rt, alle#in# the facts
with certainty and prayin# that 4)d#(ent be rendered co((andin# the respondent to desist fro( f)rther proceedin#s
in the action or (atter specified therein, or otherwise #rantin# s)ch incidental reliefs as law and 4)stice (ay re<)ire.
The petition shall likewise be acco(panied by a certified tr)e copy of the 4)d#(ent, order or resol)tion s)b4ect
thereof, copies of all pleadin#s and doc)(ents rele%ant and pertinent thereto, and a sworn certification of non-for)(
shoppin# as pro%ided in the third para#raph of section 6, *)le +.
&ec. 6. Petition for (anda()s.
3hen any trib)nal, corporation, board, officer or person )nlawf)lly ne#lects the perfor(ance of an act which the law
specifically en4oins as a d)ty res)ltin# fro( an office, tr)st, or station, or )nlawf)lly e'cl)des another fro( the )se and
en4oy(ent of a ri#ht or office to which s)ch other is entitled, and there is no other plain, speedy and ade<)ate re(edy
in the ordinary co)rse of law, the person a##rie%ed thereby (ay file a %erified petition in the proper co)rt, alle#in# the
facts with certainty and prayin# that 4)d#(ent be rendered co((andin# the respondent, i((ediately or at so(e
other ti(e to be specified by the co)rt, to do the act re<)ired to be done to protect the ri#hts of the petitioner, and to
pay the da(a#es s)stained by the petitioner by reason of the wron#f)l acts of the respondent.
The petition shall also contain a sworn certification of non-for)( shoppin# as pro%ided in the third para#raph of
section 6, *)le +.
&ec. . 3here petition filed.
The petition (ay be filed not later than si'ty A+>= days fro( notice of the 4)d#(ent, order or resol)tion so)#ht to be
assailed in the &)pre(e Co)rt or, if it relates to the acts or o(issions of a lower co)rt or of a corporation, board,
officer or person, in the *e#ional Trial Co)rt e'ercisin# 4)risdiction o%er the territorial area as defined by the &)pre(e
Co)rt. 7t (ay also be filed in the Co)rt of Appeals whether or not the sa(e is in aid of its appellate 4)risdiction, or in
the &andi#anbayan if it is in aid of its 4)risdiction. 7f it in%ol%es the acts or o(issions of a <)asi-4)dicial a#ency, and
)nless otherwise pro%ided by law or these *)les, the petition shall be filed in and co#ni;able only by the Co)rt of
Appeals.
&ec. ,. *espondents and costs in certain cases.
3hen the petition filed relates to the acts or o(issions of a 4)d#e, co)rt, <)asi-4)dicial a#ency, trib)nal, corporation,
board, officer or person, the petitioner shall 4oin, as pri%ate respondent or respondents with s)ch p)blic respondent or
respondents, the person or persons interested in s)stainin# the proceedin#s in the co)rtJ and it shall be the d)ty of
s)ch pri%ate respondents to appear and defend, both in his or their own behalf and in behalf of the p)blic respondent
or respondents affected by the proceedin#s, and the costs awarded in s)ch proceedin#s in fa%or of the petitioner
shall be a#ainst the pri%ate respondents only, and not a#ainst the 4)d#e, co)rt, <)asi-4)dicial a#ency, trib)nal,
corporation, board, officer or person i(pleaded as p)blic respondent or respondents.
:nless otherwise specifically directed by the co)rt where the petition is pendin#, the p)blic respondents shall not
appear in or file an answer or co((ent to the petition or any pleadin# therein. 7f the case is ele%ated to a hi#her co)rt
by either party, the p)blic respondents shall be incl)ded therein as no(inal parties. .owe%er, )nless otherwise
specifically directed by the co)rt, they shall not appear or participate in the proceedin#s therein.
&ec. +. 1rder to co((ent.
7f the petition is s)fficient in for( and s)bstance to 4)stify s)ch process, the co)rt shall iss)e an order re<)irin# the
respondent or respondents to co((ent on the petition within ten A1>= days fro( receipt of a copy thereof. &)ch order
shall be ser%ed on the respondents in s)ch (anner as the co)rt (ay direct, to#ether with a copy of the petition and
any anne'es thereto.
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7n petitions for certiorari before the &)pre(e Co)rt and the Co)rt of Appeals, the pro%isions of section ", *)le ,+,
shall be obser%ed. 0efore #i%in# d)e co)rse thereto, the co)rt (ay re<)ire the respondents to file their co((ent to,
and not a (otion to dis(iss, the petition. Thereafter, the co)rt (ay re<)ire the filin# of a reply and s)ch other
responsi%e or other pleadin#s as it (ay dee( necessary and proper.
&ec. 7. 5'peditin# proceedin#sJ in4)ncti%e relief.
The co)rt in which the petition is filed (ay iss)e orders e'peditin# the proceedin#s, and it (ay also #rant a te(porary
restrainin# order or a writ of preli(inary in4)nction for the preser%ation of the ri#hts of the parties pendin# s)ch
proceedin#s. The petition shall not interr)pt the co)rse of the principal case )nless a te(porary restrainin# order or a
writ of preli(inary in4)nction has been iss)ed a#ainst the p)blic respondent fro( f)rther proceedin# in the case.
&ec. E. Proceedin#s after co((ent is filed.
After the co((ent or other pleadin#s re<)ired by the co)rt are filed, or the ti(e for the filin# thereof has e'pired, the
co)rt (ay hear the case or re<)ire the parties to s)b(it (e(oranda. 7f after s)ch hearin# or s)b(ission of
(e(oranda or the e'piration of the period for the filin# thereof the co)rt finds that the alle#ations of the petition are
tr)e, it shall render 4)d#(ent for the relief prayed for or to which the petitioner is entitled.
The co)rt, howe%er, (ay dis(iss the petition if it finds the sa(e to be patently witho)t (erit, prosec)ted (anifestly
for delay, or that the <)estions raised therein are too )ns)bstantial to re<)ire consideration.
&ec. 9. &er%ice and enforce(ent of order or 4)d#(ent.
A certified copy of the 4)d#(ent rendered in accordance with the last precedin# section shall be ser%ed )pon the
co)rt, <)asi-4)dicial a#ency, trib)nal, corporation, board, officer or person concerned in s)ch (anner as the co)rt
(ay direct, and disobedience thereto shall be p)nished as conte(pt. An e'ec)tion (ay iss)e for any da(a#es or
costs awarded in accordance with section 1 of *)le 69.
2(. R21e 4>' R21es ". C,#,1 P!"%ed2!e:
&ection 1. &cope.
This *)le shall apply to appeals fro( 4)d#(ents or final orders of the Co)rt of Ta' Appeals and fro( awards,
4)d#(ents, final orders or resol)tions of or a)thori;ed by any <)asi-4)dicial a#ency in the e'ercise of its <)asi-4)dicial
f)nctions. A(on# these a#encies are the Ci%il &er%ice Co((ission, Central 0oard of Assess(ent Appeals,
&ec)rities and 5'chan#e Co((ission, 1ffice of the President, Land *e#istration A)thority, &ocial &ec)rity
Co((ission, Ci%il Aerona)tics 0oard, 0)rea) of Patents, Trade(arks and Technolo#y Transfer, $ational
5lectrification Ad(inistration, 5ner#y *e#)latory 0oard, $ational Teleco(()nications Co((ission, Depart(ent of
A#rarian *efor( )nder *ep)blic Act $o. ++,7, Fo%ern(ent &er%ice 7ns)rance &yste(, 5(ployees Co(pensation
Co((ission, A#ric)lt)ral 7n%entions 0oard, 7ns)rance Co((ission, Philippine Ato(ic 5ner#y Co((ission, 0oard of
7n%est(ents, Constr)ction 7nd)stry Arbitration Co((ission, and %ol)ntary arbitrators a)thori;ed by law.
&ec. ". Cases not co%ered.
This *)le shall not apply to 4)d#(ents or final orders iss)ed )nder the Labor Code of the Philippines.
&ec. 6. 3here to appeal.
An appeal )nder this *)le (ay be taken to the Co)rt of Appeals within the period and in the (anner herein pro%ided,
whether the appeal in%ol%es <)estions of fact, of law, or (i'ed <)estions of fact and law.
&ec. . Period of appeal.
The appeal shall be taken within fifteen A1,= days fro( notice of the award, 4)d#(ent, final order or resol)tion, or fro(
the date of its last p)blication, if p)blication is re<)ired by law for its effecti%ity, or of the denial of petitioner8s (otion
for new trial or reconsideration d)ly filed in accordance with the #o%ernin# law of the co)rt or a#ency a <)o. 1nly one
A1= (otion for reconsideration shall be allowed. :pon proper (otion and the pay(ent of the f)ll a(o)nt of the docket
fee before the e'piration of the re#le(entary period, the Co)rt of Appeals (ay #rant an additional period of fifteen
A1,= days only within which to file the petition for re%iew. $o f)rther e'tension shall be #ranted e'cept for the (ost
co(pellin# reason and in no case to e'ceed fifteen A1,= days.
&ec. ,. .ow appeal taken.
Appeal shall be taken by filin# a %erified petition for re%iew in se%en A7= le#ible copies with the Co)rt of Appeals, with
proof of ser%ice of a copy thereof on the ad%erse party and on the co)rt or a#ency a <)o. The ori#inal copy of the
petition intended for the Co)rt of Appeals shall be indicated as s)ch by the petitioner.
:pon the filin# of the petition, the petitioner shall pay to the clerk of co)rt of the Co)rt of Appeals the docketin# and
other lawf)l fees and deposit the s)( of P,>>.>> for costs. 5'e(ption fro( pay(ent of docketin# and other lawf)l
fees and the deposit for costs (ay be #ranted by the Co)rt of Appeals )pon a %erified (otion settin# forth %alid
#ro)nds therefor. 7f the Co)rt of Appeals denies the (otion, the petitioner shall pay the docketin# and other lawf)l
fees and deposit for costs within fifteen A1,= days fro( notice of the denial.
&ec. +. Contents of the petition.
The petition for re%iew shall Aa= state the f)ll na(es of the parties to the case, witho)t i(pleadin# the co)rt or
a#encies either as petitioners or respondentsJ Ab= contain a concise state(ent of the facts and iss)es in%ol%ed and
the #ro)nds relied )pon for the re%iewJ Ac= be acco(panied by a clearly le#ible d)plicate ori#inal or a certified tr)e
copy of the award, 4)d#(ent, final order or resol)tion appealed fro(, to#ether with certified tr)e copies of s)ch
(aterial portions of the record referred to therein and other s)pportin# papersJ and Ad= contain a sworn certification
a#ainst for)( shoppin# as pro%ided in the last para#raph of section ", *)le ". The petition shall state the specific
(aterial dates showin# that it was filed within the period fi'ed herein.
&ec. 7. 5ffect of fail)re to co(ply with re<)ire(ents.
The fail)re of the petitioner to co(ply with any of the fore#oin# re<)ire(ents re#ardin# the pay(ent of the docket and
other lawf)l fees, the deposit for costs, proof of ser%ice of the petition, and the contents of and the doc)(ents which
sho)ld acco(pany the petition shall be s)fficient #ro)nd for the dis(issal thereof.
&ec. E. Action on the petition.
The Co)rt of Appeals (ay re<)ire the respondent to file a co((ent on the petition, not a (otion to dis(iss, within ten
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A1>= days fro( notice, or dis(iss the petition if it finds the sa(e to be patently witho)t (erit, prosec)ted (anifestly for
delay, or that the <)estions raised therein are too )ns)bstantial to re<)ire consideration.
&ec. 9. Contents of co((ent.
The co((ent shall be filed within ten A1>= days fro( notice in se%en A7= le#ible copies and acco(panied by clearly
le#ible certified tr)e copies of s)ch (aterial portions of the record referred to therein to#ether with other s)pportin#
papers. The co((ent shall Aa= point o)t ins)fficiencies or inacc)racies in petitioner8s state(ent of facts and iss)esJ
and Ab= state the reasons why the petition sho)ld be denied or dis(issed. A copy thereof shall be ser%ed on the
petitioner, and proof of s)ch ser%ice shall be filed with the Co)rt of Appeals.
&ec. 1>. D)e co)rse.
7f )pon the filin# of the co((ent or s)ch other pleadin#s or doc)(ents as (ay be re<)ired or allowed by the Co)rt of
Appeals or )pon the e'piration of the period for the filin# thereof, and on the basis of the petition or the records the
Co)rt of Appeals finds pri(a facie that the co)rt or a#ency concerned has co((itted errors of fact or law that wo)ld
warrant re%ersal or (odification of the award, 4)d#(ent, final order or resol)tion so)#ht to be re%iewed, it (ay #i%e
d)e co)rse to the petitionJ otherwise, it shall dis(iss the sa(e. The findin#s of fact of the co)rt or a#ency concerned,
when s)pported by s)bstantial e%idence, shall be bindin# on the Co)rt of Appeals.
&ec. 11. Trans(ittal of record.
3ithin fifteen A1,= days fro( notice that the petition has been #i%en d)e co)rse, the Co)rt of Appeals (ay re<)ire the
co)rt or a#ency concerned to trans(it the ori#inal or a le#ible certified tr)e copy of the entire record of the proceedin#
)nder re%iew. The record to be trans(itted (ay be abrid#ed by a#ree(ent of all parties to the proceedin#. The Co)rt
of Appeals (ay re<)ire or per(it s)bse<)ent correction of or addition to the record.
&ec. 1". 5ffect of appeal.
The appeal shall not stay the award, 4)d#(ent, final order or resol)tion so)#ht to be re%iewed )nless the Co)rt of
Appeals shall direct otherwise )pon s)ch ter(s as it (ay dee( 4)st.
&ec. 16. &)b(ission for decision.
7f the petition is #i%en d)e co)rse, the Co)rt of Appeals (ay set the case for oral ar#)(ent or re<)ire the parties to
s)b(it (e(oranda within a period of fifteen A1,= days fro( notice. The case shall be dee(ed s)b(itted for decision
)pon the filin# of the last pleadin# or (e(orand)( re<)ired by these *)les or by the Co)rt of Appeals.
>4. R21e 45' R21es ". C,#,1 P!"%ed2!e:
&ection 1. 2ilin# of petition with &)pre(e Co)rt.
A party desirin# to appeal by certiorari fro( a 4)d#(ent or final order or resol)tion of the Co)rt of Appeals, the
&andi#anbayan, the *e#ional Trial Co)rt or other co)rts whene%er a)thori;ed by law, (ay file with the &)pre(e
Co)rt a %erified petition for re%iew on certiorari. The petition shall raise only <)estions of law which ()st be distinctly
set forth.
&ec. ". Ti(e for filin#J e'tension.
The petition shall be filed within fifteen A1,= days fro( notice of the 4)d#(ent or final order or resol)tion appealed
fro(, or of the denial of the petitioner8s (otion for new trial or reconsideration filed in d)e ti(e after notice of the
4)d#(ent. 1n (otion d)ly filed and ser%ed, with f)ll pay(ent of the docket and other lawf)l fees and the deposit for
costs before the e'piration of the re#le(entary period, the &)pre(e Co)rt (ay for 4)stifiable reasons #rant an
e'tension of thirty A6>= days only within which to file the petition.
&ec. 6. Docket and other lawf)l feesJ proof of ser%ice of petition.
:nless he has theretofore done so, the petitioner shall pay the correspondin# docket and other lawf)l fees to the
clerk of co)rt of the &)pre(e Co)rt and deposit the a(o)nt of P,>>.>> for costs at the ti(e of the filin# of the
petition. Proof of ser%ice of a copy thereof on the lower co)rt concerned and on the ad%erse party shall be s)b(itted
to#ether with the petition.
&ec. . Contents of petition.
The petition shall be filed in ei#hteen A1E= copies, with the ori#inal copy intended for the co)rt bein# indicated as s)ch
by the petitioner, and shall Aa= state the f)ll na(e of the appealin# party as the petitioner and the ad%erse party as
respondent, witho)t i(pleadin# the lower co)rts or 4)d#es thereof either as petitioners or respondentsJ Ab= indicate
the (aterial dates showin# when notice of the 4)d#(ent or final order or resol)tion s)b4ect thereof was recei%ed,
when a (otion for new trial or reconsideration, if any, was filed and when notice of the denial thereof was recei%edJ
Ac= set forth concisely a state(ent of the (atters in%ol%ed, and the reasons or ar#)(ents relied on for the allowance
of the petitionJ Ad= be acco(panied by a clearly le#ible d)plicate ori#inal, or a certified tr)e copy of the 4)d#(ent or
final order or resol)tion certified by the clerk of co)rt of the co)rt a <)o and the re<)isite n)(ber of plain copies
thereof, and s)ch (aterial portions of the record as wo)ld s)pport the petitionJ and Ae= contain a sworn certification
a#ainst for)( shoppin# as pro%ided in the last para#raph of section ", *)le ".
&ec. ,. Dis(issal or denial of petition.
The fail)re of the petitioner to co(ply with any of the fore#oin# re<)ire(ents re#ardin# the pay(ent of the docket and
other lawf)l fees, deposit for costs, proof of ser%ice of the petition, and the contents of and the doc)(ents which
sho)ld acco(pany the petition shall be s)fficient #ro)nd for the dis(issal thereof.
The &)pre(e Co)rt (ay on its own initiati%e deny the petition on the #ro)nd that the appeal is witho)t (erit, or is
prosec)ted (anifestly for delay, or that the <)estions raised therein are too )ns)bstantial to re<)ire consideration.
&ec. +. *e%iew discretionary.
A re%iew is not a (atter of ri#ht, b)t of so)nd 4)dicial discretion, and will be #ranted only when there are special and
i(portant reasons therefor. The followin#, while neither controllin# nor f)lly (eas)rin# the co)rt8s discretion, indicate
the character of the reasons which will be consideredC
Aa= 3hen the co)rt a <)o has decided a <)estion of s)bstance, not theretofore deter(ined by the &)pre(e Co)rt, or
has decided it in a way probably not in accord with law or with the applicable decisions of the &)pre(e Co)rtJ or
Ab= 3hen the co)rt a <)o has so far departed fro( the accepted and )s)al co)rse of 4)dicial proceedin#s, or so far
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sanctioned s)ch depart)re by a lower co)rt, as to call for an e'ercise of the power of s)per%ision.
&ec. 7. Pleadin#s and doc)(ents that (ay be re<)iredJ sanctions.
2or p)rposes of deter(inin# whether the petition sho)ld be dis(issed or denied p)rs)ant to section , of this *)le, or
where the petition is #i%en d)e co)rse )nder section E hereof, the &)pre(e Co)rt (ay re<)ire or allow the filin# of
s)ch pleadin#s, briefs, (e(oranda or doc)(ents as it (ay dee( necessary within s)ch periods and )nder s)ch
conditions as it (ay consider appropriate, and i(pose the correspondin# sanctions in case of non-filin# or
)na)thori;ed filin# of s)ch pleadin#s and doc)(ents or non-co(pliance with the conditions therefor.
&ec. E. D)e co)rseJ ele%ation of records.
7f the petition is #i%en d)e co)rse, the &)pre(e Co)rt (ay re<)ire the ele%ation of the co(plete record of the case or
specified parts thereof within fifteen A1,= days fro( notice.
&ec. 9. *)le applicable to both ci%il and cri(inal cases.
The (ode of appeal prescribed in this *)le shall be applicable to both ci%il and cri(inal cases, e'cept in cri(inal
cases where the penalty i(posed is death, recl)sion perpet)a or life i(prison(ent.
?S2!eme C"2!/ P!"%ed2!e 6R21e 45' C,#,1 P!"%ed2!e7 T1ease see !e%ed,n- !"#,s,"nV
21. RI;HT T+ SEL0 +R;A*IFATI+*
1. S%"e and na/2!e ". em1"yeeHs !,-&/
2. C"ns/,/2/,"na1 Bas,s
A!/,%1e III Se%/,"n ) 61()7 C"ns/,/2/,"n7
The ri#ht of the people in the p)blic and pri%ate sectors to for( )nions, associations or societies for
p)rposes not contrary to law shall not be abrid#ed.
A!/,%1e 9III Se%/,"n > 61()7 C"ns/,/2/,"n7
The &tate shall afford f)ll protection to labor, local and o%erseas, or#ani;ed and )nor#ani;ed, and pro(ote
f)ll e(ploy(ent and e<)ality of e(ploy(ent opport)nities for all.
7t shall #)arantee the ri#hts of all workers to self-or#ani;ation, collecti%e bar#ainin# and ne#otiations, and
peacef)l concerted acti%ities, incl)din# the ri#ht to strike in accordance with law. They shall be entitled to sec)rity of
ten)re, h)(ane conditions of work, and a li%in# wa#e. They shall also participate in policy and decision-(akin#
processes affectin# their ri#hts and benefits as (ay be pro%ided by law.
The &tate shall pro(ote the principle of shared responsibility between workers and e(ployers and the
preferential )se of %ol)ntary (odes in settlin# disp)tes, incl)din# conciliation, and shall enforce their ()t)al
co(pliance therewith to foster ind)strial peace.
The &tate shall re#)late the relations between workers and e(ployers, reco#ni;in# the ri#ht of labor to its
4)st share in the fr)its of prod)ction and the ri#ht of enterprises to reasonable ret)rns to in%est(ents, and to
e'pansion and #rowth.
>. S/a/2/"!y Bas,s
A!/,%1e 24> C"#e!a-e and Em1"yeesH R,-&/ /" Se1. +!-an,@a/,"n
All persons e(ployed 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( 4oin or assist labor or#ani;ations of their own choosin# for p)rposes of collecti%e bar#ainin#. A(b)lant,
inter(ittent and itinerant workers, self-e(ployed people, r)ral workers and those witho)t any definite e(ployers (ay
for( labor or#ani;ations for their ()t)al aid and protection.
A!/,%1e 244 R,-&/ ". /&e Em1"yees ,n /&e P2b1,% Se!#,%e
5(ployees of #o%erned corporations established )nder the Corporation Code shall ha%e the ri#ht to
or#ani;e and to bar#ain collecti%ely with their respecti%e e(ployers. All other e(ployees in the ci%il ser%ice shall ha%e
the ri#ht to for( associations for p)rposes not contrary to law.
D+. *". 44?4> Se!,es ". 244>' D+. *". 44?A?>' 44?B?4> and 44?C?45 are the i(ple(entin# r)les iss)ed by
the D1L5 to enforce the ri#ht to association.
*ecently Con#ress enacted RA (4)1 otherwise known as PA$ ACT &T*5$FT.5$7$F T.5 31*I5*&O
C1$&T7T:T71$AL *7F.T T1 &5L2-1*FA$7GAT71$, AM5$D7$F 21* T.5 P:*P1&5 P*5&7D5$T7AL
D5C*55 $1. ", A& AM5$D5D, 1T.5*37&5 I$13$ A& T.5 LA01* C1D5 12 T.5 P.7L7PP7$5&Q
4. Tw" C"n%e/s ". /&e R,-&/ /" Ass"%,a/,"n
1.7 *i#ht to for(, 4oin or assist labor or#ani;ation.
2.7 *i#ht to en#a#e in lawf)l concerted acti%ities.
TW+ BR+AD *+TI+*S +* THE RI;HT T+ 8+I* +R 0+R$ ASS+SCIATI+*S
1.7 L,be!/y "! .!eed"m ! the absence of le#al restraint whereby an e(ployee (ay act for hi(self witho)t bein#
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circ)(%ented by law.
2.7 P"we! /" 3",n "! n"/ /" 3",n J a person (ay choose to 4oin and (ay not be co(pelled to 4oin a labor or#ani;ation
or he (ay disassociate hi(self if he is already a (e(ber A$0VV There are li(itations s)ch as a C*o'"+4S!o%
A.r""m"&.
5n,"n Se%2!,/y %1a2se "! C1"sed S&" A-!eemen/
A!/,%1e 24) 6e7
$othin# in this Code or in any other law shall stop the parties fro( re<)irin# (e(bership in the reco#ni;ed
collecti%e bar#ainin# a#ent as a condition for e(ploy(ent e'cept those e(ployees who are already (e(bers of
another )nion at the ti(e of the collecti%e bar#ainin# a#ree(ent.
No"-.owe%er in *A 66,> otherwise known as the 1ndustrial Peace Act ?Pb2/ s2%& a-!eemen/ s&a11 n"/ %"#e!
membe!s ". any !e1,-,"2s se%/s w&,%& !"&,b,/ a..,1,a/,"n ". /&e,! membe!s ,n any s2%& 1ab"! "!-an,@a/,"n.IW
The free e'ercise of reli#io)s profession or belief is s)perior to contract ri#hts. 7n case of conflicts the latter ()st yield
to the for(er 6:,%/"!,an" #s. E1,@a1de R"e W"!=e!Hs 5n,"n e/ a17
5. Tw"?0"1d P2!"se ". EKe!%,se ". R,-&/
1.= Collecti%e 0ar#ainin#- PC0AQ refers to the contract between the le#iti(ate labor )nion and the e(ployer
concernin# wa#es, ho)rs of work and all other ter(s and conditions in the bar#ainin# )nit.
".= M)t)al Aid and Protection-
6. Re2b1,% A%/ (4)1
REP5BLIC ACT *+. (4)1
A* ACT STRE*;THE*I*; THE W+RDERSN C+*STIT5TI+*AL RI;HT T+ SEL0?+R;A*IFATI+*' A$E*DI*;
0+R THE P5RP+SE PRESIDE*TIAL DECREE *+. 442' AS A$E*DED' +THERWISE D*+W* AS THE LAB+R
C+DE +0 THE PHILIPPI*ES
SECTI+* 1. Article "6 of Presidential Decree $o. ", as a(ended, otherwise known as the Labor Code of the
Philippines, is hereby f)rther a(ended to read as followsC
MA*T. "6. R"5,#r"m"&' of R".#'r(#o&. - A federation, national )nion or ind)stry or trade )nion center or an
independent )nion shall ac<)ire le#al personality and shall be entitled to the ri#hts and pri%ile#es #ranted by law
to le#iti(ate labor or#ani;ations )pon iss)ance of the certificate of re#istration based on the followin#
re<)ire(entsC
Aa= 2ifty pesos AP,>.>>= re#istration feeJ
Ab= The na(es of its officers, their addresses, the principal address of the labor or#ani;ation, the (in)tes of
the or#ani;ational (eetin#s and the list of the workers who participated in s)ch (eetin#sJ
Ac= 7n case the applicant is an independent )nion, the na(es of all its (e(bers co(prisin# at least twenty
percent A">K= of all the e(ployees in the bar#ainin# )nit where it seeks to operateJ
Ad= 7f the applicant )nion has been in e'istence for one or (ore years, copies of its ann)al financial reportsJ
and
Ae= 2o)r copies of the constit)tion and by-laws of the applicant )nion, (in)tes of its adoption or ratification,
and the list of the (e(bers who participated in it.M
SEC. 2. A new pro%ision is hereby inserted into the Labor Code as Article "6-A to read as followsC
MA*T. "6-A. C!(r"r#&. (&+ Cr"(#o& of ( Lo$(* C!(%"r. - A d)ly re#istered federation or national )nion (ay
directly create a local chapter by iss)in# a charter certificate indicatin# the establish(ent of the local chapter.
The chapter shall ac<)ire le#al personality only for p)rposes of filin# a petition for certification election fro( the
date it was iss)ed a charter certificate.
The chapter shall be entitled to all other ri#hts and pri%ile#es of a le#iti(ate labor or#ani;ation only )pon the
s)b(ission of the followin# doc)(ents in addition to its charter certificateC
Aa= The na(es of the chapterOs officers, their addresses, and the principal office of the chapterJ and
Ab= The chapterOs constit)tion and by-lawsC Pro8#+"+, That where the chapterOs constit)tion and by-laws are
the sa(e as that of the federation or the national )nion, this fact shall be indicated accordin#ly.
The additional s)pportin# re<)ire(ents shall be certified )nder oath by the secretary or treas)rer of the chapter
and attested by its president.M
SEC. >. Article "6E of the Labor Code is hereby a(ended to read as followsC
MA*T. "6E. C(&$"**(#o& of R".#'r(#o&. - The certificate of re#istration of any le#iti(ate labor or#ani;ation,
whether national or local, (ay be cancelled by the 0)rea), after d)e hearin#, only on the #ro)nds specified in
Article "69 hereof.M
SEC. 4. A new pro%ision is hereby inserted into the Labor Code as Article "6E-A t o read as followsC
MA*T. "6E-A. Eff"$ of ( P"##o& for C(&$"**(#o& of R".#'r(#o&. - A petition for cancellation of )nion re#istration
shall not s)spend the proceedin#s for certification election nor shall it pre%ent the filin# of a petition for
certification election.
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7n case of cancellation, nothin# herein shall restrict the ri#ht of the )nion to seek 4)st and e<)itable re(edies in
the appropriate co)rts.M
SEC. 5. Article "69 of the Labor Code is a(ended to read as followsC
MA*T. "69. Gro,&+' for C(&$"**(#o& of U&#o& R".#'r(#o&. - The followin# (ay constit)te #ro)nds for
cancellation of )nion re#istrationC
Aa= Misrepresentation, false state(ent or fra)d in connection with the adoption or ratification of the
constit)tion and by-laws or a(end(ents thereto, the (in)tes of ratification, and the list of (e(bers who
took part in the ratificationJ
Ab= Misrepresentation, false state(ents or fra)d in connection with the election of officers, (in)tes of the
election of officers, and the list of %otersJ
Ac= /ol)ntary dissol)tion by the (e(bers.M
SEC. 6. A new pro%ision, Article "69-A is inserted into the Labor Code to read as followsC
MA*T. "69-A. Vo*,&(r0 C(&$"**(#o& of R".#'r(#o&. - The re#istration of a le#iti(ate labor or#ani;ation (ay be
cancelled by the or#ani;ation itself. Pro8#+"+, That at least two-thirds of its #eneral (e(bership %otes, in a
(eetin# d)ly called for that p)rpose to dissol%e the or#ani;ationC Pro8#+"+, f,r!"r, That an application to cancel
re#istration is thereafter s)b(itted by the board of the or#ani;ation, attested to by the president thereof.M
SEC. 7. A new pro%ision, Article ""-A is hereby inserted into the Labor Code to read as followsC
MA*T. ""-A. R"%oror#(* R"5,#r"m"&'. - The followin# are doc)(ents re<)ired to be s)b(itted to the 0)rea)
by the le#iti(ate labor or#ani;ation concernedC
Aa= 7ts constit)tion and by-laws, or a(end(ents thereto, the (in)tes of ratification, and the list of (e(bers
who took part in the ratification of the constit)tion and by-laws within thirty A6>= days fro( adoption or
ratification of the constit)tion and by-la( or a(end(ents theretoJ
Ab= 7ts list of officers, (in)tes of the election of officers, and list of %oters within thirty A6>= days fro( electionJ
Ac= 7ts ann)al financial report within thirty A6>= days after the close of e%ery fiscal yearJ and
Ad= 7ts list of (e(bers at least once a year or whene%er re<)ired by the 0)rea).
2ail)re to co(ply with the abo%e re<)ire(ents shall not be a #ro)nd for cancellation of )nion re#istration b)t
shall s)b4ect the errin# officers or (e(bers to s)spension, e'p)lsion fro( (e(bership, or any appropriate
penalty.M
SEC. ). Article ", of the Labor Code is hereby a(ended to read as followsC
MA*T. ",. I&"*#.#1#*#0 of M(&(."r#(* Em%*o0""' o Jo#& (&0 L(1or Or.(&#2(#o&B R#.! of S,%"r8#'or0
Em%*o0""'. - Mana#erial e(ployees are not eli#ible to 4oin, assist or for( any labor or#ani;ation. &)per%isory
e(ployees shall not be eli#ible for (e(bership in the collecti%e bar#ainin# )nit of the rank-and-file e(ployees
b)t (ay 4oin, assist or for( separate collecti%e bar#ainin# )nits andBor le#iti(ate labor or#ani;ations of their own.
The rank and file )nion and the s)per%isorsO )nion operatin# within the sa(e establish(ent (ay 4oin the sa(e
federation or national )nion.M
SEC. (. A new pro%ision, Article ",-A is inserted into the Labor Code to read as followsC
MA*T. ",-A. Eff"$ of I&$*,'#o& (' M"m1"r' of Em%*o0""' O,'#+" !" B(r.(#&#&. U&#. - The incl)sion as )nion
(e(bers of e(ployees o)tside the bar#ainin# )nit shall not be a #ro)nd for the cancellation of the re#istration of
the )nion. &aid e(ployees are a)to(atically dee(ed re(o%ed fro( the list of (e(bership of said )nion.M
SEC. 14. Article ",+ of the Labor Code is hereby a(ended to read as followsC
MA*T. ",+. R"%r"'"&(#o& I''," #& Or.(&#2"+ E'(1*#'!m"&'. - 7n or#ani;ed establish(ents, when a %erified
petition <)estionin# the (a4ority stat)s of the inc)(bent bar#ainin# a#ent is filed by any le#iti(ate labor
or#ani;ation incl)din# a national )nion or federation which has already iss)ed a charter certificate to its local
chapter participatin# in the certification election or a local chapter which has been iss)ed a charter certificate by
the national )nion or federation before the Depart(ent of Labor and 5(ploy(ent within the si'ty A+>=-day period
before the e'piration of the collecti%e bar#ainin# a#ree(ent, the Med-Arbiter shall a)to(atically order an election
by secret ballot when the %erified petition is s)pported by the written consent of at least twenty-fi%e percent
A",K= of all the e(ployees in the bar#ainin# )nit to ascertain the will of the e(ployees in the appropriate
bar#ainin# )nit. To ha%e a %alid election, at least a (a4ority of all eli#ible %oters in the )nit ()st ha%e cast their
%otes. The labor )nion recei%in# the (a4ority of the %alid %otes cast shall be certified as the e'cl)si%e bar#ainin#
a#ent of all the workers in the )nit. 3hen an election which pro%ides for three or (ore choices res)lts in no
choice recei%in# a (a4ority 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 %otesC Pro8#+"+, That the total n)(ber of %otes for all contendin# )nions is
at least fifty percent A,>K= of the n)(ber of %otes cast. 7n cases where the petition was filed by a national )nion
or federation, it shall not be re<)ired to disclose the na(es of the local chapterOs officers and (e(bers.
At the e'piration of the freedo( period, the e(ployer shall contin)e to reco#ni;e the (a4ority stat)s of the
inc)(bent bar#ainin# a#ent where no petition for certification election is filed.M
SEC. 11. Article ",7 of the Labor Code is hereby a(ended to read as followsC
MA*T. ",7. P"##o&' #& U&or.(&#2"+ E'(1*#'!m"&'. - 7n any establish(ent where there is no certified
bar#ainin# a#ent, a certification election shall a)to(atically be cond)cted by the Med-Arbiter )pon the filin# of a
petition by any le#iti(ate labor or#ani;ation, incl)din# a national )nion or federation which has already iss)ed a
charter certificate to its 1ocalBchapter participatin# in the certification election or a localBchapter which has been
iss)ed a charter certificate by the national )nion or federation. 7n cases where the petition was filed by a national
)nion or federation, it shall not be re<)ired to disclose the na(es of the local chapterOs officers and (e(bers.M
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SEC. 12. A new pro%ision, Article ",E-A is hereby inserted into the Labor Code to read as followsC
MA*T. ",E-A. Em%*o0"r (' B0'(&+"r. - 7n all cases, whether the petition for certification election is filed by an
e(ployer or a le#iti(ate labor or#ani;ation, the e(ployer shall not be considered a party thereto with a
conco(itant ri#ht to oppose a petition for certification election. The e(ployerOs participation in s)ch proceedin#s
shall be li(ited toC A1= bein# notified or infor(ed of petitions of s)ch nat)reJ and A"= s)b(ittin# the list of
e(ployees d)rin# the pre-election conference sho)ld the Med-Arbiter act fa%orably on the petition.M
SEC. 1>. Searability *lause. - 7f any part, section or pro%ision of this Act shall be held in%alid or )nconstit)tional,
the other pro%isions shall not be affected thereby.
SEC. 14. Reealing *lause. - Presidential Decree $o. ", as a(ended, otherwise known as the Labor Code of the
Philippines, and all other acts, laws, presidential iss)ances, r)les and re#)lations are hereby repealed, (odified or
a(ended accordin#ly.
SEC. 15. $ffectivity *lause. - This Act shall take effect fifteen A1,= days after its p)blication in the 1fficial Fa;ette or
in at least two newspapers of #eneral circ)lation.
,. A!/,%1e 246 *"n Ab!,d-emen/ ". R,-&/ /" Se1.? +!-an,@a/,"n
7t shall be )nlawf)l for any person to restrain, coerce, discri(inate a#ainst or )nd)ly interfere with
e(ployees and workers in their e'ercise of the ri#ht to self-or#ani;ation. &)ch ri#ht shall incl)de the ri#ht to for(, 4oin
or assist labor or#ani;ation 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 or for their ()t)al aid or protection s)b4ect to the
pro%ision in Article "+ of this code
No"-This ri#ht to self or#ani;ation is protected by law and sho)ld not be abrid#ed or c)rtailed. The code says that an
act tendin# to weaken or defeat this ri#ht is )nlawf)l and is considered as an P:nfair Labor PracticeQ and shall be
dealt with by law.
). 5,n"n $embe!s&, and 0"!ma/,"n ". 5n,"n
ART. 245. Ine1,-,b,1,/y ". $ana-e!,a1 Em1"yees /" 8",n any Lab"! +!-an,@a/,"nE R,-&/ ". S2e!#,s"!y
Em1"yees.
Mana#erial e(ployees are not eli#ible to 4oin, assist or for( any labor or#ani;ation. &)per%isory e(ployees
shall not be eli#ible for (e(bership in the collecti%e bar#ainin# )nit of the rank-and-file e(ployees b)t (ay 4oin,
assist or for( separate collecti%e bar#ainin# )nits andBor le#iti(ate labor or#ani;ations of their own.
A$ew pro%ision in *A 9E1=
The rank and file )nion and the s)per%isors8 )nion operatin# within the sa(e establish(ent (ay 4oin the
sa(e federation or national )nion.Q
$oteC AAlso a new pro%ision ",-A is inserted in the Labor Code which pro%ides=
ART. 245?A. E..e%/ ". In%12s,"n as $embe!s ". Em1"yees +2/s,de /&e Ba!-a,n,n- 5n,/.
The incl)sion as )nion (e(bers of e(ployees o)tside the bar#ainin# )nit shall not be a #ro)nd for the
cancellation of the re#istration of the )nion. &aid e(ployees are a)to(atically dee(ed re(o%ed fro( the list of
(e(bership of said )nion.
WH+ ARE L5ALI0IED T+ BE 5*I+* $E$BERSM6 D1 >->6J >-A->6J >-0->6=
1.= All persons e(ployed in co((ercial, ind)strial and a#ric)lt)ral enterprises incl)din#
".= 5(ployees of #o%ern(ent owned or controlled corporations witho)t ori#inal charters established )nder the
Corporation Code.
6.= 5(ployees of reli#io)s, charitable (edical or ed)cation instit)tions operatin# for profit or not
.= Alien e(ployees with %alid workin# per(its iss)ed by the Depart(ent if they are nationals of a co)ntry which
#rants the sa(e or si(ilar ri#hts to 2ilipino workers as certified by the Depart(ent of 2orei#n Affairs. A*eciprocity
r)le=
,.= All other workers incl)din# a(b)lant, inter(ittent and other workers, the self-e(ployed people, r)ral workers and
those witho)t any definite e(ployers (ay for( labor or#ani;ations for their ()t)al aid and protection and other
le#iti(ate p)rposes e'cept collecti%e bar#ainin#.
$oteC 5%erybody can e'ercise their ri#ht to association whether in the p)blic or pri%ate sector.
DISL5ALI0ICATI+*S:
1.7 Em1"yees ". ;"#e!nmen/ %"!"!a/,"ns es/ab1,s&ed /&!"2-& se%,a1 %&a!/e!s
$oteC 1nly insofar as collecti%e bar#ainin# is concerned
2.7 $ana-e!,a1 em1"yees
The rationale for this inhibition has been state to be beca)se if these (ana#erial e(ployees will belon# to or
be affiliated with a :nion, the latter (i#ht not be ass)red of their loyalty to the )nion in %iew of e%ident Co&f*#$ #&
#&"r"'. The :nion can also be co(pany-do(inated with the presence of (ana#erial e(ployees in )nion
(e(bership. A:nited Pepsi-Cola &)per%isory :nion %s. La#)es(a=

$oteC 1nly insofar as )nions for collecti%e bar#ainin# is concerned.
>.7 C"n.,den/,a1 em1"yees AD"%/!,ne ". *e%essa!y Im1,%a/,"n=
They are those who by reason of their positions or nat)re of work are re<)ired to assist or act in a fid)ciary
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(anner to (ana#erial e(ployees and hence are likewise pri%y to sensiti%e and hi#hly confidential records. AMetro
Lab 7nd)stries %s. Confessor et al=
They assist and act in a confidential capacity to or ha%e access to confidential (atters or persons who
e'ercise (ana#erial f)nctions in the field of labor relations. As s)ch the rationale behind the ineli#ibility of
(ana#erial e(ployees to for(, assist or 4oin a labor )nion e<)ally applies to the( APhilips 7nd)strial De%elop(ent %s.
$L*C.=
D"%/!,ne ". *e%essa!y Im1,%a/,"n- what is i(plied in a stat)te is as ()ch a part thereof as that which is
e'pressed.
1ne entr)sted with confidence on delicate (atters or with the c)stody, handlin#, care and protection of the
e(ployer8s property.
4.7 $embe!s 6%"?"wne!s ". a %""e!a/,#e7
An owner cannot bar#ain with hi(self or his co-owners A&an 9ose 5lectric &er%ice Corporation 7nc. %s.
Ministry of Labor=
5.7 $embe!s ". In/e!na/,"na1 +!-an,@a/,"ns
0y the D"%/!,ne ". In%"!"!a/,"n, they are i(()ne fro( s)it and cannot be s)b4ect to local 4)risdiction.
A7nternational Catholic Mi#ration Co((ission %s. Calle4aJ Iapisanan n# (#a Man##a#awa at TAC sa 7**71LAL7A
%s. &ecretary of Labor and 5(ploy(ent=
6.7 Se%2!,/y ;2a!ds
:nder *A +71,, they (ay now freely 4oin a labor or#ani;ation of the rank-and !file or that of the s)per%isory
)nion dependin# on their rank in reco#nition of their constit)tional ri#ht to self or#ani;ation
THREE?TIERED CLASSI0ICATI+* +0 E$PL+AEES I* LAB+R RELATI+*
1.7 $ana-e!,a1? refers to an e(ployee who is %ested with powers or prero#ati%es to lay down and e'ec)te
(ana#e(ent policies or to hire, transfer, s)spend, layoff, dischar#e, assi#n or discipline e(ployees. 6Abs"12/e
D,sB2a1,.,%a/,"n7
2.7 S2e!#,s"!y? refers to an e(ployee who in the interest of the e(ployer effecti%ely reco((ends (ana#erial
actions and the e'ercise of s)ch a)thority is not (erely ro)tinary or clerical b)t re<)ires the )se of independent
4)d#(ent 6Re1a/,#e D,sB2a1,.,%a/,"n7
>.7 Ran= and 0,1e? refers to an e(ployee whose f)nctions are neither (ana#erial nor s)per%isory in nat)re
(?11. Re-,s/!a/,"n ". a 5n,"n and P2!"seE 82!,sd,%/,"n and P!"%ed2!eE 82!,d,%a1 Pe!s"na1,/y
ART. 2>4. ReB2,!emen/s ". Re-,s/!a/,"n AAs a(ended by *A 9E1=
A federation, national )nion or ind)stry or trade )nion center or an independent )nion shall be iss)ed a
certificate of re#istration )pon co(pliance with the followin# re<)ire(entsC
Aa= 2ifty pesos AP,>.>>= re#istration feeJ
Ab= 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#sJ
Ac= 7n case the applicant is an independent )nion, the na(es of all its (e(bers co(prisin# at least twenty
percent A">K= of all the e(ployees in the bar#ainin# )nit where it seeks to operateJ
Ad= 7f the applicant )nion has been in e'istence for one or (ore years, copies of its ann)al financial reportsJ
and
Ae= 2o)r copies of the constit)tion and by-laws of the applicant )nion, (in)tes of its adoption or ratification,
and the list of the (e(bers who participated in it.
P2!"se: to ac<)ire le#al personality and shall be entitled to the ri#hts and pri%ile#es #ranted by law to le#iti(ate
labor or#ani;ations )pon iss)ance of the certificate of re#istration
ART. 2>4?A. C&a!/e!,n- and C!ea/,"n ". a L"%a1 C&a/e!.AAs a(ended by *A 9E1= ? A d)ly re#istered federation
or national )nion (ay directly create a local chapter by iss)in# a charter certificate indicatin# the establish(ent of the
local chapter. The chapter shall ac<)ire le#al personality only for p)rposes of filin# a petition for certification election
fro( the date it was iss)ed a charter certificate.

$oteC 0efore the effecti%ely of *A 9E1, the d)ly re#istered federation or national )nion iss)es a charter to a )nion in
an enterprise and re#isters the sa(e with the *e#ional 1ffice or the 0)rea) of Labor *elations before the chapter,
local or chartered local ac<)ires personality. 7n this new law, the charter shall ac<)ire le#al personality for p)rposes
of certification election by (ere iss)ance of a charter certificate by the d)ly re#istered federation or national )nion.
Accordin# to &ir AMar<)e;=, there is no need to pro%e the ">K e(ployees in the bar#ainin# )nit.
The chapter shall be entitled to all other ri#hts and pri%ile#es of a le#iti(ate labor or#ani;ation only )pon the
s)b(ission of the followin# doc)(ents in addition to its charter certificateC
Aa= The na(es of the chapter8s officers, their addresses, and the principal office of the chapterJ and
Ab= The chapter8s constit)tion and by-lawsC Pro%ided, That where the chapter8s constit)tion and by-laws are
the sa(e as that of the federation or the national )nion, this fact shall be indicated accordin#ly.
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The additional s)pportin# re<)ire(ents shall be certified )nder oath by the secretary or treas)rer of the
chapter and attested by its president.Q
A!/. 2>5. A%/,"n "n a1,%a/,"n. The 0)rea) shall act on all applications for re#istration within thirty A6>= days fro(
filin#.
All re<)isite doc)(ents and papers shall be certified )nder oath by the secretary or the treas)rer of the or#ani;ation,
as the case (ay be, and attested to by its president.
A!/. 2>6. Den,a1 ". !e-,s/!a/,"nE aea1. The decision of the Labor *elations Di%ision in the re#ional office denyin#
re#istration (ay be appealed by the applicant )nion to the 0)rea) within ten A1>= days fro( receipt of notice thereof.
A!/. 2>7. Add,/,"na1 !eB2,!emen/s ."! .ede!a/,"ns "! na/,"na1 2n,"ns. &)b4ect to Article "6E, 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# Articles, s)b(it
the followin#C
Proof of the affiliation of at least ten A1>= locals or chapters, each of which ()st be a d)ly reco#ni;ed collecti%e
bar#ainin# a#ent in the establish(ent or ind)stry in which it operates, s)pportin# the re#istration of s)ch
applicant federation or national )nionJ and
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(pany in%ol%ed.
ART. 2>). Can%e11a/,"n ". Re-,s/!a/,"n.AAs a(ended by *A 9E1= - The certificate of re#istration of any le#iti(ate
labor or#ani;ation, whether national or local, (ay be cancelled by the 0)rea), after d)e hearin#, only on the
#ro)nds specified in Article "69 hereof.M
ART. 2>)?A. E..e%/ ". a Pe/,/,"n ."! Can%e11a/,"n ". Re-,s/!a/,"n.AAs a(ended by *A 9E1= - A petition for
cancellation of )nion re#istration shall not s)spend the proceedin#s for certification election nor shall it pre%ent
the filin# of a petition for certification election.
7n case of cancellation, nothin# herein shall restrict the ri#ht of the )nion to seek 4)st and e<)itable re(edies in the
appropriate co)rts.M
ART. 2>(. ;!"2nds ."! Can%e11a/,"n ". 5n,"n Re-,s/!a/,"n.AAs a(ended by *A 9E1= ? The followin# (ay
constit)te #ro)nds for cancellation of )nion re#istrationC
Aa= Misrepresentation, false state(ent or fra)d in connection with the adoption or ratification of the constit)tion and
by-laws or a(end(ents thereto, the (in)tes of ratification, and the list of (e(bers who took part in the
ratificationJ
Ab= Misrepresentation, false state(ents or fra)d in connection with the election of officers, (in)tes of the election of
officers, and the list of %otersJ
Ac= /ol)ntary dissol)tion by the (e(bers.M
ART. 2>(?A. :"12n/a!y Can%e11a/,"n ". Re-,s/!a/,"n.AAs a(ended by *A 9E1= - The re#istration of a le#iti(ate
labor or#ani;ation (ay be cancelled by the or#ani;ation itself. Pro8#+"+, That at least two-thirds of its #eneral
(e(bership %otes, in a (eetin# d)ly called for that p)rpose to dissol%e the or#ani;ationC Pro8#+"+, f,r!"r, That
an application to cancel re#istration is thereafter s)b(itted by the board of the or#ani;ation, attested to by the
president thereof.M
A!/. 244. EB2,/y ". /&e ,n%2mben/. All e'istin# 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 e'istin#
affiliates re#ardless of the nat)re of the ind)stry and the location of the affiliates.
12. Tw"?0"1d P!"%ed2!e ,n C!ea/,n- a C&a/e! "! L"%a1
1.= 7ss)ance of a charter certificate by the d)ly re#istered federation or national )nion.
".= &)b(ission of the additional s)pportin# doc)(ents by the chapter.
Te!m,n"1"-,es
1. Ba!-a,n,n- 5n,/ Jrefers to a #ro)p of e(ployees sharin# ()t)al interest within a #i%en e(ployer )nit, co(prises
of all or less than all of the entire body of e(ployees in the e(ployer )nit or any specific occ)pational or #eo#raphical
#ro)pin# within s)ch e(ployer )nit.
Deter(ination of bar#ainin# )nitC
a.= Co(()nality B M)t)ality of interest
b.= Pre%io)s history
2.7 Lab"! +!-an,@a/,"n Jrefers to any labor or#ani;ation in the pri%ate sector whether re#istered or not.
>.7 Le-,/,ma/e Lab"! +!-an,@a/,"n J refers to any labor or#ani;ation in the pri%ate sector re#istered or reported with
the depart(ent.
4.7 *a/,"na1 5n,"n "! 0ede!a/,"n J refers to a #ro)p of le#iti(ate labor )nions in pri%ate establish(ent or#ani;ed for
collecti%e bar#ainin# or for dealin# with e(ployers concernin# ter(s and conditions of e(ploy(ent for their (e(ber
)nions or for participatin# in the for()lation of social and e(ploy(ent policies.
7t is co(posed of at least 1> le#iti(ate labor or#ani;ations whether independent labor )nions or chartered
locals each of which ()st be d)ly certified or reco#ni;ed bar#ainin# a#ent in the establish(ent where it seeks to
operate.
*"/e:0efore *A +71,, there was this one co(pany-one )nion policy. After the effecti%ity of the .errera
/eloso Doctrine on March "1 19E9, it was abandoned with the 6-tiered classification of e(ployees. There (ay be two
or (ore certified bar#ainin# a#ents ser%in# different interests.
5.7 A..,1,a/e? refers to an independent )nion affiliated with a federation, national )nion or to a chartered local which
was s)bse<)ently #ranted independent re#istration b)t did not disaffiliate fro( its federation, reported to the *e#ional
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1ffice and the 0)rea) in accordance with the r)les.
7t is i(portant to #ain or increase the bar#ainin# power %is-R-%is the e(ployer.
6.7 Indeenden/ 5n,"n? refers to a labor or#ani;ation operatin# at the enterprise le%el that ac<)ired le#al personality
thro)#h independent re#istration.
7.7 C&a!/e!ed L"%a1 J refers to a labor or#ani;ation in the pri%ate sector operatin# at the enterprise le%el that
ac<)ired le#al personality thro)#h the iss)ance of a charter certificate by a d)ly re#istered federation or national
)nion.
).7 Re-,s/!a/,"n -refers to the process of deter(inin# whether the application for re#istration of a )nion or worker8s
association and collecti%e bar#ainin# a#ree(ent co(plies with the doc)(entary re<)ire(ents for re#istration
prescribed by the r)les.
7t is necessary to <)alify as le#iti(ate labor or#ani;ation that can a%ail of the benefits pro%ided by law.
0+R$ATI+* +0 5*I+* A*D RE;ISTRATI+*
1.7 Re%!2,/men/
2or p)rposes of re#istration, at least ">K of the e(ployees in the bar#ainin# )nit
H)alification of a (e(ber- he ()st be an e(ployee of the sa(e bar#ainin# )nit.
A!/,%1e 277 6%7
Any e(ployee, whether e(ployed for a definite period or not, shall, be#innin# on his first day of ser%ice, be
considered as an e(ployee for p)rposes of (e(bership in any labor )nion.
2.7 D!a./,n- ". /&e C"ns/,/2/,"n and by?1aws.
The for(er refers to the #eneral principles and the latter to the detailed (atters as d)ties and
responsibilities.
>.7 Ra/,.,%a/,"n J (a4ority %ote is re<)ired.
4.7 Re-,s/!a/,"n
A.7A%%"many,n- D"%2men/s
Indeenden/ Lab"! 5n,"n A..,1,a/,"n C&a!/e!,n-
1.= The na(e of the applicant labor
)nion, its principal address, the
na(e of its officers and their
respecti%e addresses, appro'i(ate
n)(ber of e(ployees in the
bar#ainin# )nit where it seeks to
operate, with a state(ent that it is
not reported as charted local of any
federation or national )nion.
".= The (in)tes of the or#ani;ational
(eetin#s and the list of e(ployees
who participated in said (eetin#s.
6.= The na(e of all its (e(bers
co(prisin# at least ">K of the
e(ployees in the bar#ainin# )nit.
.= The ann)al financial reports if the
applicant has been in e'istence for
one or (ore years, )nless it has not
collected any a(o)nt fro( its
(e(bers, in which case a state(ent
to this effect shall be incl)ded in the
application.
,.= The applicant8s constit)tion and
by laws, (in)tes of its adoption or
ratification, and the list of the
(e(bers who participated in it. The
list of the ratifyin# (e(bers shall be
dispensed with where the
constit)tion and by laws was ratified
or adopted d)rin# the or#ani;ational
(eetin#. 7n s)ch case the fact)al
circ)(stances of the ratification shall
be recorded in the (in)tes of the
or#ani;ational (eetin#.
The report of affiliation of
independently re#istered labor
)nions with a federation or national
)nion shall be acco(panied byC
1.= *esol)tion of the labor )nion8s
board of directors appro%in# the
affiliation.
".= Min)tes of the #eneral
(e(bership (eetin# appro%in# the
affiliation.
6.= The total n)(ber of (e(bers
co(prisin# the labor )nion and the
na(es of the (e(bers who
appro%ed the affiliation.
.= The certificate of affiliation iss)ed
by the federation in fa%or of the
independently re#istered labor )nion.
,.= 3ritten notice to the e(ployer
concerned if the affiliatin# )nion is
the inc)(bent bar#ainin# a#ent.
A d)ly re#istered federation or
national )nion (ay directly create a
local chapter by iss)in# a charter
certificate indicatin# the
establish(ent of the local chapter.
A therefore no need to s)b(it
acco(panyin# doc)(ents howe%er
the chapter8s ri#hts is only li(ited to
certification election =
To be entitled to all other
ri#hts of a le#iti(ate labor
or#ani;ation' the chapter shall s)b(it
the followin# doc)(ents in addition
to its charter certificateC
Aa= The na(es of the chapter8s
officers, their addresses, and the
principal office of the chapterJ and
Ab= The chapter8s constit)tion and by-
lawsC Pro%ided, That where the
chapter8s constit)tion and by-laws
are the sa(e as that of the
federation or the national )nion, this
fact shall be indicated accordin#ly.
The additional s)pportin#
re<)ire(ents shall be certified )nder
oath by the secretary or treas)rer of
the chapter and attested by its
president.Q
-Also there are a//es/a/,"n !eB2,!emen/s needed ACertification )nder oath by the &ecretary or Treas)rer as the case
(ay be and attested by the President= ! it is also needed in case of chan#e of na(e (er#er, consolidation and
affiliation.
-Pay(ent of re#istration fees
B. W&e!e /" .,1e
a.7 Re-,"na1 +..,%e? 2or the re#istration of
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\independent labor )nions
\Chartered locals Aas a(ended by *A 9E1= the law says that A d)ly re#istered federation or national )nion (ay
directly create a local chapter by iss)in# a charter certificate indicatin# the establish(ent of the local chapter. A7
belie%e that there is still a need to re#ister altho)#h the federation (ay first iss)e a charter certificate so that a
chapter (ay be able to file a certification election and then later on re#ister the sa(e and then acco(pany the
additional s)pportin# doc)(ents ne%ertheless let )s wait for what sir is to say. = 3rite yo)r notes on the space
pro%ided.
\3orker8s association
b.7B2!ea2 ". Lab"! Re1a/,"ns AManila= !for the re#istration ofC
\ 2ederations
\$ational :nions
C.7 W&en Re-,s/e!ed
- The labor )nion or worker8s association shall be dee(ed re#istered and %ested with le#al personality on
the date of iss)ance of its certificate of re#istration or certificate of creation of chartered local. A&ec E D1 >-66= &ee
*A 9E1 beca)se chapter ac<)ires personality )pon iss)ance by federation of charter certificate to the chapter.
D.7 Assa,1men/ ". Re-,s/!a/,"n
&)ch le#al personality (ay be <)estioned only thro)#h an independent petition for cancellation of )nion
re#istration Ano collateral attack=
E.7 DE*IAL +0 APPLICATI+*
7t shall be in writin# statin# in clear ter(s the reasons thereof.
0.7 APPEAL 0R+$ THE DE*IAL
T" w&"mC
-7f denial is (ade by the re#ional office ! appeal to the 0)rea)
-7f denial is (ade by the 0)rea) ! appeal to the &ecretary of Labor
P!es%!,/,#e Pe!,"d
-within 1> days fro( receipt of s)ch notice of denial
;!"2nds:
?#ra%e ab)se of discretion
-%iolation of the r)les
Pe!,"d /" de%,de
-within "> days fro( receipt of the records of the case.
;.7 CA THR5 R5LE 65 THE* SC R5LE 45
1>. R,-&/s ". Le-,/,ma/e Lab"! +!-an,@a/,"ns
ART. 242. R,-&/s ". 1e-,/,ma/e 1ab"! "!-an,@a/,"ns. - A le#iti(ate labor or#ani;ation shall ha%e the ri#htC
1.7 R,-&/ ". Re!esen/a/,"n
a.= To act as the representati%e of its (e(bers for the p)rpose of collecti%e bar#ainin#
Ab= To be certified as the e'cl)si%e representati%e of all the e(ployees in an appropriate bar#ainin# )nit for p)rposes
of collecti%e bar#ainin#
2.7 R,-&/ /" ,n."!ma/,"n
Ac= To be f)rnished by the e(ployer, )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 thirty A6>= calendar days fro( the date of receipt of the
re<)est, after the )nion has been d)ly reco#ni;ed by the e(ployer or certified as the sole and e'cl)si%e bar#ainin#
representati%e of the e(ployees in the bar#ainin# )nit, or within si'ty A+>= calendar days before the e'piration of the
e'istin# collecti%e bar#ainin# a#ree(ent, or d)rin# the collecti%e bar#ainin# ne#otiationE
>.7 R,-&/ e!/a,n,n- /" a 32!,d,%a1 e!s"nCP!"e!/y R,-&/s
Ad= To own property, real or personal, for the )se and benefit of the labor or#ani;ation and its (e(bers
Ae= To s)e and be s)ed in its re#istered na(eJ and
Af= 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 pro4ects not contrary to law.
4.7 EKem/,"n .!"m /aKes
7nco(e and properties recei%ed incl)din# donations that are act)ally, directly and e'cl)si%ely )sed for their
lawf)l p)rposes shall be free fro( ta'es, d)ties and other assess(ents. AMay be withdrawn by state=
5.7 R,-&/ /" %"11e%/ 2n,"n d2es' e/%.
ART. 277. $,s%e11ane"2s !"#,s,"ns. - Aa= All )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.
14. R,-&/s and D2/,es ". 5n,"n $embe!s and *"n 5n,"n $embe!s
RI;HTS:
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1.7 P"1,/,%a1 !,-&/s
The (e(bers shall directly elect their officers, incl)din# those of the national )nion or federation, to which
they or their )nion is affiliated, by secret ballot at inter%als of fi%e A,= years.
L2a1,.,%a/,"n ". %and,da/es: (e(bership in #ood standin#.
D,sB2a1,.,%a/,"n:
1.= $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 any position in the )nion.
".= M)st be an e(ployee.
$o labor or#ani;ation shall knowin#ly ad(it as (e(bers or contin)e in (e(bership any indi%id)al who
belon#s to a s)b%ersi%e or#ani;ation or who is en#a#ed directly or indirectly in any s)b%ersi%e acti%ity Anot only for
candidacy b)t also (e(bership=
6.= $oteC Additional re<)ire(ents (ay be (ade as lon# as it is reasonable and does not )nder(ine the ri#ht to self
or#ani;ation
Ter( of office is , years.
2.7 R,-&/ /" ,n."!ma/,"n
7t shall be the d)ty of any labor or#ani;ation and its officers to infor( its (e(bers on the pro%isions of its
constit)tion and by-laws, collecti%e bar#ainin# a#ree(ent, the pre%ailin# labor relations syste( and all their ri#hts and
obli#ations )nder e'istin# labor laws.
>.7 De1,be!a/,#e and de%,s,"n?ma=,n- !,-&/
The (e(bers shall deter(ine by secret ballot, after d)e deliberation, any <)estion of (a4or policy affectin#
the entire (e(bership of the or#ani;ation, )nless the nat)re of the or#ani;ation or force (a4e)re renders s)ch secret
ballot i(practical, in which case, the board of directors of the or#ani;ation (ay (ake the decision in behalf of the
#eneral (e(bershipJ
4.7 R,-&/s "#e! m"ney ma//e!s
A.7 R,-&/ a-a,ns/ eK%ess,#e .ees
$o arbitrary or e'cessi%e initiation fees shall be re<)ired of the (e(bers of a le#iti(ate labor
or#ani;ation nor shall arbitrary, e'cessi%e or oppressi%e fine and forfeit)re be i(posedJ
B.7 R,-&/ a-a,ns/ 2na2/&"!,@ed %"11e%/,"n "! d,sb2!semen/s
$o officer, a#ent or (e(ber of a labor or#ani;ation shall collect any fees, d)es, or other
contrib)tions in its behalf or (ake any disb)rse(ent of its (oney or f)nds )nless he is d)ly a)thori;ed p)rs)ant to its
constit)tion and by-laws
The f)nds of the or#ani;ation shall not be applied for any p)rpose or ob4ect other than those
e'pressly pro%ided by its constit)tion and by-laws or those e'pressly a)thori;ed by written resol)tion adopted by the
(a4ority of the (e(bers at a #eneral (eetin# d)ly called for the p)rpose
C.7 R,-&/ /" !eB2,!e adeB2a/e !e%"!ds ". ,n%"me and eKenses and !,-&/ /" a%%ess .,nan%,a1 !e%"!ds
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 by-laws of the or#ani;ation.
5%ery pay(ent of fees, d)es or other contrib)tions by a (e(ber shall be e%idenced by a receipt
si#ned by 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.
5%ery inco(e or re%en)e of the or#ani;ation shall be e%idenced by a record showin# its so)rce,
and e%ery e'pendit)re of its f)nds shall be e%idenced by a receipt fro( the person to who( the pay(ent is (ade,
which shall state the date, place and p)rpose of s)ch pay(ent. &)ch record or receipt shall for( part of the
financial records of the or#ani;ation.
The books of acco)nts and other records of the financial acti%ities of any labor or#ani;ation shall be
open to inspection by any officer or (e(ber thereof d)rin# office ho)rsJ
D.7 R,-&/ /" #"/e "n "..,%e!Hs %"mensa/,"n
The officers of any labor or#ani;ation shall not be paid any co(pensation other than the salaries
and e'penses d)e to their positions as specifically pro%ided for in its constit)tion and by-laws, or in a written
resol)tion d)ly a)thori;ed by a (a4ority of all the (e(bers at a #eneral (e(bership (eetin# d)ly called for
the p)rpose.
E.7 R,-&/ /" #"/e "n !""sed se%,a1 assessmen/s "! /&e membe!Hs w!,//en a2/&"!,@a/,"n
$o special assess(ent or other e'traordinary fees (ay be le%ied )pon the (e(bers of a labor
or#ani;ation )nless a)thori;ed by a written resol)tion of a (a4ority of all the (e(bers in a #eneral (e(bership
(eetin# d)ly called for the p)rpose.
1ther than for (andatory acti%ities )nder the Code, no special assess(ents, attorney8s fees,
ne#otiation fees or any other e'traordinary fees (ay be checked off fro( any a(o)nt d)e to an e(ployee witho)t an
indi%id)al written a)thori;ation d)ly si#ned by the e(ployee. The a)thori;ation sho)ld specifically state the
a(o)nt, p)rpose and beneficiary of the ded)ction
D5TIES:
1.Paymen/ ". 2n,"n d2es Aapplies both to )nion and non )nion (e(bers=
A!/ 24)6e7 Em1"yees ". an a!"!,a/e ba!-a,n,n- 2n,/ w&" a!e n"/ membe!s ". /&e !e%"-n,@ed %"11e%/,#e
ba!-a,n,n- a-en/ may be assessed a !eas"nab1e .ee eB2,#a1en/ /" /&e d2es and "/&e! .ees a,d by membe!s
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". /&e !e%"-n,@ed %"11e%/,#e ba!-a,n,n- a-en/' ,. s2%& n"n?2n,"n membe!s a%%e/ /&e bene.,/s 2nde! /&e
%"11e%/,#e ba!-a,n,n- a-!eemen/.
5n,"n d2es J re#)lar (andatory contrib)tion to )nion f)nds
0,nes and 0"!.e,/2!es J disciplinary (eas)res i(posed by the )nion to errin# (e(bers
Me(bers of a le#iti(ate labor or#ani;ation has the d)ty to contrib)te f)nds b)t s)b4ect to the ca%eat of
e'cessi%e fees, fines or forfeit)res.
$anne! ". C"11e%/,"n
1.7 Personal
2.7 Check-off
15. E1e%/,"n ". 5n,"n +..,%e!s
ART. 241
Ac= The (e(bers shall directly elect their officers, incl)din# those of the national )nion or federation, to which they or
their )nion is affiliated, by secret ballot at inter%als of fi%e A,= years. $o <)alification re<)ire(ents for candidacy to any
position shall be i(posed other than (e(bership in #ood standin# in s)b4ect labor or#ani;ation. The secretary or any
other responsible )nion officer shall f)rnish the &ecretary of Labor and 5(ploy(ent with a list of the newly-elected
officers, to#ether with the appointi%e officers or a#ents who are entr)sted with the handlin# of f)nds, within thirty A6>=
calendar days after the election of officers or fro( the occ)rrence of any chan#e in the list of officers of the labor
or#ani;ationJ
A&ee r)le D77 D1 >-66=
A.7 I. /&e!e ,s an a-!eemen/ am"n- /&e membe!s "! any !"#,s,"n ,n /&e C"ns/,/2/,"n and by?1aws !"#,d,n-
."! /&e !"%ed2!es ,n /&e e1e%/,"n ". 2n,"n "..,%e!s J the a#ree(ent or the constit)tion or the by-laws shall be
followed.
B.7 I. /&e!e ,s n"ne? The followin# #)idelines shall be followedC
I.7 WHERE THERE IS *+ DISP5TE +:ER C+*D5CT
+0 ELECTI+* +0 +00ICERS
77.7WHERE THERE IS DISP5TE +:ER C+*D5CT +0
ELECTI+* +0 +00ICERS
1./ *onstitution of a *ommittee on $lection
W&" s&a11 %"ns/,/2/eM President of the Labor
or#ani;ation.
W&en s&a11 /&e %"ns/,/2/,"n be madeM 3ithin +> days
before the e'piration of the ter(s of the inc)(bent
officers.
C"m"s,/,"n: at least 6 (e(bers who are not r)nnin#
for any position. 7f there are identifiable parties within the
or#ani;ation, each shall ha%e e<)al representation.
"./ $lection or designation of chairman of the
*ommittee
The (e(bers shall elect their chair(an a(on#
the(sel%es and in case of disa#ree(entJ the president
shall desi#nate the chair(an.
P"we!s and d2/,es ". /&e %"mm,//ee
- set the date, ti(e and %en)e of the election
- prescribe the r)les on the <)alification and eli#ibility of
candidates and %oters
- prepare and post the %oter8s list and the list of <)alified
candidates
- accredit the a)thori;ed representati%es of the
contendin# parties
-s)per%ise the act)al cond)ct of election and can%ass
the %otes to ens)re the sanctity of the ballot.
-keep (in)tes of the proceedin#s
- be the final arbiter of all election protests
-proclai( winners
-prescribe s)ch other r)les as (ay facilitate the orderly
cond)ct of election.
3./ Raffle of an election officer 6Comm#"" o&
"*"$#o&'7
%./ Pre:election *onference
- 7ss)ance by the election officer of notice of pre election
conference )pon the contendin# candidates which shall
be sched)led within 1> days fro( receipt of assi#n(ent.
-the pre-election conference shall set the (echanics for
the election and shall deter(ineC
a.= date, ti(e and place of the election, which shall not
be later than , days fro( the date of the first pre-
election conference and shall be on a re#)lar workin#
day and within the e(ployer8s pre(ises )nless
circ)(stances otherwise re<)ire.
b.= list of eli#ible and challen#ed %oters
c.= n)(ber and location of the pollin# places or booths
1./ 5iling of Petition
A.7 W&e!e /" .,1eC
*e#ional 1fficeC independent labor )nion or chartered
local
0)rea) or *e#ional 1ffice - federations, national or
ind)stry )nions and trade )nion centers
-0)t shall be heard and resol%ed by the 0)rea).
B.7 ;!"2nds:
a.= 5'piration of officer8s ter( and their ne#lect or fail)re
to call an election of new officers.
b.= The labor or#ani;ation8s constit)tion and by laws
don not pro%ide for the (anner by which said election be
cond)cted and the inter%ention of the Depart(ent is
necessary.
C.7 $anne!
- 2ilin# of petition for the cond)ct of election by at least
6>K of the (e(bers of the labor or#ani;ation
$0VV &a(e r)le applies where there is n)llification of
election of officers, i(peach(ent, e'p)lsion, etc...
D.7 0"!ma1 !eB2,!emen/s ". /&e %"m1a,n/ "! e/,/,"n.
7n writin#, %erified )nder oath containin# the followin#C
a.= na(e, address and other personal circ)(stances
of the co(plainants or petitioner
b.= na(e, address and other personal circ)(stances
of the respondents or the persons char#ed.
c.= nat)re of the co(plaint or petition.
d.= facts and circ)(stances s)rro)ndin# the co(plaint
or petition.
e.= ca)ses of action or specific %iolations co((itted
f.= a state(ent that the ad(inistrati%e re(edies
pro%ided for in the constit)tion and by laws ha%e been
e'ha)sted or s)ch re(edies are not readily a%ailable to
the co(plainants or petitioners thro)#h no fa)lt of his
own or co(pliance with s)ch ad(inistrati%e re(edies
does not apply to co(plainants or petitioners.
#.=*eliefs prayed for
h.= certificate of non-for)( shoppin# and
i= 1ther rele%ant (atters
"./ Raffle of case L for deter(inin# the Med-Arbiter or
.earin# 1fficer who shall be assi#ned to the case in case
it is filed with the re#ional office.
>.7 4otice of Preliminary *onference
The Med-Arbiter or .earin# officer shall prepare notice
of preli(inary conference. 7t shall be sched)led within 1>
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and the n)(ber of ballots to be prepared with
appropriate translations if necessary.
d.= na(e of watchers or representati%es and their
alternates for each of the parties d)rin# election
e.= (echanics and #)idelines
2ail)re of the party to appear in the pre-election
conference despite notice shall be considered as wai%er
of the ri#ht to be heard. .owe%er not to s)bse<)ent
notices.
There shall be (in)tes of pre election conference
acknowled#ed by the parties by their si#nat)res.
6NBRR S#&$" !" Comm#"" o& E*"$#o&' #' 8"'"+ )#!
!" %o)"r', !" "*"$#o& off#$"r #' ,&+"r !"#r ',%"r8#'#o&
(&+ $o&ro*.7
(./ Gualifications of voters
All e(ployees who are (e(bers of the said le#iti(ate
labor or#ani;ation shall be eli#ible to %ote.
An e(ployee dis(issed fro( work b)t has contested
the le#ality of the dis(issal in appropriate for)( at the
ti(e of the iss)ance of the order for the cond)ct of
election of officers shall be a <)alified %oter )nless there
is a dis(issal by final 4)d#(ent at the ti(e of the cond)ct
of the election.
All contested %oters are allowed to %ote in case of
disa#ree(ent o%er the %oter8s list b)t their %otes shall be
se#re#ated. 6NBRR T!" $omm#"" o& "*"$#o& m(0
%ro8#+" for (++##o&(* 5,(*#f#$(#o&'7
6./ Posting of 4otices
The election officer shall ca)se the postin# of notice of
election at least 1> days before the act)al date in "
conspic)o)s in the co(pany pre(ises.
,./ Secrecy and sanctity of the ballot
The 5lection 1fficer to#ether with the a)thori;ed
representati%es of the contendin# candidates and the
e(ployers shall before the start of the act)al %otin#,
inspect the pollin# place, the ballot bo'es and the pollin#
booths. To ens)re secrecy of the ballot.
&./ Prearation of ballot
The election officer shall prepare the ballots in 5n#lish,
2ilipino or the local dialect correspondin# to the n)(ber
of %oters and a reasonable n)(ber of e'tra ballots.
#./?oting
1)./ *hallenging of votes
Any a)thori;ed representati%e of the candidates (ay
challen#e a %ote before deposited in the ballot bo' on the
followin# #ro)ndsC
Aa= $o e(ployer-e(ployee relationship e'ists between
the %oter and the co(pany.
Ab= That the %oter is not a (e(ber of the appropriate
bar#ainin# )nit.
11./ Procedure in the *hallenge of ?otes
7f a %ote is properly challen#ed, the election officer
shall place the ballot in an en%elope sealed in the
presence of the %oter, contendin# candidates and
e(ployer. The election officer shall note all the
challen#es in the (in)tes of the election. 7f the n)(ber of
se#re#ated %oters will (aterially affect the res)lts of the
election, the en%elopes shall be opened and <)estion of
eli#ibility shall be passed )pon.
1"./ 2n the sot Duestions
The election officer shall r)le on any <)estion relatin#
to and raised d)rin# the cond)ct of election. A5'a(ple
appreciation of ballots= b)t not if the #ro)nd is absence
an e(ployer-e(ployee relationship or if %oter is not a
(e(ber of an appropriate bar#ainin# )nit.
NBRR T!" Comm#"" o& E*"$#o& #' !" f#&(* Ar1#"r
13./ Protest= when erfected
Any party in interest (ay file a protest based on the
cond)ct or (echanics of the election. 7t shall be recorded
in the (in)tes of the election proceedin#s otherwise it is
wai%ed.
7t shall be for(ali;ed with the Co((ittee on 5lection
within , days after the close of the election proceedin#s.
7f not recorded or for(ali;ed, it shall be dee(ed
days fro( receipt of the co(plaint or petition.
The Med Arbiter or .earin# 1fficer shall ca)se the
ser%ice of s)((ons to the respondents na(ed directin#
hi( to answer before the preli(inary conference and to
appear on the preli(inary conference.
4.7C"nd2%/ ". P!e1,m,na!y C"n.e!en%e
5'ertion of effort by the Med- arbiter or .earin# officer
for a(icable settle(ent.
7f there is a(icable settle(ent- decision based on
co(pro(ise shall be iss)ed by the MA or .1.
7f none- The MA or .1 shall proceed with stip)lation of
facts, li(itation of iss)es, clarificatory <)estionin# and
s)b(ission of laws and 4)rispr)dence to s)pport each
clai(.
(./ 6earing
6./Affirmation of testimonial $vidence
Any affida%it s)b(itted by a party to pro%e his clai( or
defenses shall be affir(ed by his presentation before the
Med-Arbiter or .earin# officer otherwise s)ch e%idence is
inad(issible )nless the party a#ainst who( s)ch affida%it
is )sed ad(its the alle#ation.
,./5iling of Pleadings and Position Paers
3ithin ", day period prescribed for the hearin#. 7f the
case is already s)b(itted for decision, no other pleadin#
is allowed
&./6earing
#./ +ecision
The 0)rea), Med-Arbiter or *e#ional Director as the
case shall ha%e "> days to decide co(plaint or petition.
The decision shall state facts, findin#s concl)sion and
relief #ranted.
1)./Aeal
aea1 /" /&e B2!ea2- decision of Med-Arbiter and
*e#ional Director within 1>
Days fro( receipt thereof.
Aea1 /" /&e S+LE! decision of the 0)rea) director
-7t shall be %erified )nder oath and consists of
(e(orand)( on appeal statin# #ro)nds relied )pon with
s)pportin# ar#)(ents and e%idence.
-$o appeal- decision beco(es final after 1> days fro(
receipt by the parties of the decision.
-only 1 Motion for reconsideration is allowed
7f the decision calls for election of candidates then follow
the Constit)tion and by-laws if there is a proced)re for
election of officers stated therein. 7f there is no s)ch
proced)re, then follow the o(nib)s r)les. 6'"" o!"r '#+"
of !" (1*"7
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dropped.
W!0 )#! !" $omm#"" (&+ &o !" M"+ Ar1#"r ('
%ro8#+"+ #& !" r,*"'S B"$(,'" T!" Comm#"" o&
E*"$#o& (r" !" o&"' 8"'"+ )#! !" %o)"r o %ro$*(#m
!" )#&&"r' 6#m%*#"+ %o)"r'7. T!" M"+4Ar1#"r' %o)"r o
%ro$*(#m %"r(#&' o !" $o&+,$ of $"r#f#$(#o& "*"$#o&'
1%./ *anvassing of ?otes
/otes shall be co)nted and tab)lated by the election
officer in the presence of the representati%es of the
contendin# )nions. The 5lection officer shall #i%e each
representati%e a copy of the (in)tes of election
proceedin#s and the res)lts of the election. The ballots
and the tally sheet shall be sealed in an en%elope si#ned
by the 5lection officer and the representati%es of
contendin# )nion and trans(itted to the Co((ittee on
5lections to#ether with the (in)tes and res)lts of the
election within " ho)rs fro( co(pletion of can%ass.
1(./ *onduct of $lection and *anvass of ?otes
The election precincts shall open and close on the date
and ti(e a#reed )pon d)rin# the pre-election
conference. The openin# and can%ass shall proceed
after the precincts ha%e closed.
16./ 5ailure of $lection
3here the n)(ber of %otes cast shall be in the election
is less than the (a4ority of the n)(ber of eli#ible %oters
and there are no (aterial challen#ed %otes, the election
officer shall declare fail)re of election. NBRR T!"
Comm#"" o& E*"$#o& #' !" f#&(* Ar1#"r
1,./ $ffect of 5ailure of $lection
A fail)re of election shall not bar the filin# of a (otion
for the i((ediate holdin# of another election within +
(onths fro( declaration of fail)re of election.
1&./Action on the !otion
3ithin " hrs fro( receipt of the (otion, the 5lection
1fficer shall i((ediately sched)le the cond)ct of
another election within 1, days fro( receipt of the (otion
and ca)se the postin# of the notice of election at least 1>
days prior to the sched)led date in " conspic)o)s places
in the establish(ent. The sa(e #)idelines and list of
%oters shall be )sed in the election.
6NBRR ',1A"$ o !" $o&form#0 of !" Comm#"" o&
E*"$#o&7
1#./ Proclamation and *ertification of the result of
the $lection
W&" s&a11 !"%1a,mM Co((ittee on 5lections
The 5lection officer shall trans(it the res)lts to the(.
16. C&e%=?+..
A (ethod a#reed between the (ana#e(ent and the representati%e )nion of ded)ctin# fro( an e(ployee8s
pay at prescribed period, the a(o)nts d)e the )nion for fees, fines or assess(ent.
R21e 99: Se%/,"n 4 ? the e(ployer shall check- fro( non-)nion (e(bers with the collecti%e bar#ainin# )nit
the sa(e reasonable fee e<)i%alent to the d)es and other fees nor(ally paid by )nion (e(bers witho)t the need for
indi%id)al check-off a)thori;ations.
A!/,%1e 11> 6b7
$o e(ployer, in his own behalf or in behalf of any person shall (ake any ded)ction fro( the wa#es of his
e(ployees e'ceptC
Ab= 2or )nion d)es in cases where the ri#ht of the worker or his )nion to check-off has been reco#ni;ed by the
e(ployer or a)thori;ed in writin# by the indi%id)al worker concernedJ
17. A..,1,a/,"n and D,sa..,1,a/,"n
A..,1,a/,"n
An independent )nion who wants to affiliate with a federation or national )nion s)b(its the iss)e to its
(e(bers. 3hen (a4ority of the( %ote affir(ati%ely, a resol)tion or re<)est to affiliate is presented to the chosen
federation or national )nion.
7f the federation or national )nion accepts the affiliation it offers a contract of affiliation. The relationship
between the P(otherQ andQda)#hterQ )nion is therefore %"n/!a%/2a1, bindin# both sides. The (other assists in
bar#ainin# with the e(ployer or (annin# the picket line. The da)#hter in t)rn re(its parts of the )nion d)es )s)ally
fifty percent.
Affiliation by a d)ly re#istered )nion with a national )nion or federation does not ca)se the local )nion to
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lose its le#al personality.
D,sa..,1,a/,"n
The affiliate (ay disaffiliate b)t ()st obser%e the ter(s of the contract. 7t is not prohibited b)t can be
restricted by the contract of affiliation. A5#.. The n)(ber of %otes needed to a)thori;e disaffiliation to the ti(e
disaffiliation (ay be done=
7n disaffiliatin#, the local )nion was (erely e'ercisin# its pri(ary ri#ht to self or#ani;ation for the effecti%e
enhance(ent and protection of co((on interest. 7n the absence of enforceable pro%isions in the federation8s
constit)tion pre%entin# disaffiliation of a local )nion, a local (ay se%ere its relationship with its parents.
The ri#ht of the affiliate to disaffiliate (ay be e'ercised only when circ)(stances so warrant. Fenerally, a
labor )nion (ay disaffiliate fro( the (other )nion to for( a local or independent )nion only d)rin# the +>-day
freedo( period i((ediately precedin# the e'piration of the C0A. 7t ()st be effected by the (a4ority of the (e(bers
of the bar#ainin# )nit.
3hen a )nion which is not independently re#istered disaffiliates fro( the federation, it is not #ranted the
ri#hts and pri%ile#es to a le#iti(ate labor or#ani;ation.
3hen a local )nion disaffiliates fro( a national )nion or federation, the latter ceases to be entitled to check-
off d)es.
1). In/!a?5n,"n and In/e!?5n,"n D,s2/es
In/!a?5n,"n D,s2/e J refers to any conflict between and a(on# )nion (e(bers, incl)din# #rie%ances arisin# fro(
any %iolation of the ri#hts and conditions of (e(bership, %iolation of a#ree(ent o%er any pro%ision of the )nion8s
constit)tion and by-laws, or disp)tes arisin# fro( charterin# or affiliation of )nion.
In/e!?5n,"n D,s2/e J refers to any conflict between and a(on# le#iti(ate labor )nions in%ol%in# representation
<)estion for p)rposes of collecti%e bar#ainin# or to any other conflict or disp)te between le#iti(ate labor )nions.
W&a/ a!e /&e %ases ". ,n/e!CIn/!a? 2n,"n d,s2/eM
1.= Cancellation of re#istration of labor or#ani;ation filed by its (e(bers or by another labor or#ani;ationJ
".= Cond)ct of election of )nion and worker8s association officersB n)llification of election of )nion and worker8s
associationJ
6.= A)ditB acco)nts e'a(ination of )nion or worker8s association f)ndsJ
.= Dere#istration of Collecti%e bar#ainin# a#ree(entsJ
,.= /alidityB in%alidity of )nion affiliation or disaffiliationJ
+.= /alidityB in%alidity of acceptanceB non-acceptance for )nion (e(bershipJ
7.= /alidityB in%alidity of i(peach(entB e'p)lsion of )nion and worker8s association officers and (e(bersJ
E.= /alidityB in%alidity of %ol)ntary reco#nitionJ
9.= 1pposition to application for )nion and C0A re#istrationJ
1>.= /iolations of or a#ree(ents o%er any pro%ision in a )nion or worker8s association constit)tion and by-lawsJ
11.= Disa#ree(ents o%er charterin# or re#istration of labor or#ani;ations and C0A8s
1".= /iolations of the ri#hts and conditions of workers8 association (e(bershipJ
16.= /iolations of the ri#hts of le#iti(ate labor or#ani;ations e'cept interpretation of C0AJ
1.= &)ch other disp)tes or conflicts in%ol%in# the ri#hts to self-or#ani;ation, )nion (e(bership and collecti%e
bar#ainin#C
-between and a(on# le#iti(ate labor or#ani;ation
-between and a(on# (e(bers of a )nion or worker8s association.
1ther related labor relations disp)tes shall incl)de any conflict between labor )nion and the e(ployer or any
indi%id)al, entity or #ro)p that is not a labor or#ani;ation or worker8s association. This incl)desC 1.= cancellation of
re#istration of )nions and worker8s associationJ and ".= petition for interpleader.
1(. 82!,sd,%/,"n ". B2!ea2 ". Lab"! Rea1/,"ns
ART. 226. B2!ea2 ". Lab"! Re1a/,"ns.
The 0)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 e'cl)si%e a)thority 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, e'cept those arisin# fro( the
i(ple(entation or interpretation of collecti%e bar#ainin# a#ree(ents which shall be the s)b4ect of #rie%ance
proced)re andBor %ol)ntary arbitration.
Re1a/ed 1ab"! !e1a/,"ns d,s2/e? 7t shall be filed with the 0L* b)t where there is a #rie%ance proced)re in
the C0A, in%ol%in# its i(ple(entation or interpretation, the %ol)ntary arbitrator is the one a)thori;ed. 7t incl)des
cancellation of re#istration of a LL1.
The Med-Arbiter refers to the officer of the D1L5 *e#ional office or the 0)rea) of Labor relations officer
a)thori;ed to hear and decide representation cases, interBintra-)nion disp)tes and other related labor disp)tes e'cept
cancellation of re#istration d)es.
7f the iss)e in%ol%es conflict between the labor )nion and the e(ployer, or any indi%id)al, entity or #ro)p that
is not a labor or#ani;ation of workers, the 0L* is bereft of any a)thority to hear the sa(e.
PR+CED5RE: sa(e as that of cancellation of )nion re#istration
E..e%/s ". .,1,n-Cenden%y ". ,n/e!C,n/!a?2n,"n and "/&e! 1ab"! !e1a/ed !e1a/,"ns d,s2/es
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The ri#hts, relationship and obli#ations of the parties liti#ants a#ainst each other and other parties-in-interest
prior to the instit)tion of the petition shall contin)e to re(ain d)rin# the pendency of the petition and )ntil the date of
the finality of the decision rendered therein. Thereafter, the ri#hts, relationships and obli#ations of the parties liti#ants
a#ainst each other and other parties-in-interest shall be #o%erned by the decisions so ordered.
The filin# or pendency of any interBintra-)nion disp)te and other related labor relations disp)te is not a
pre4)dicial <)estion to any petition for certification election and shall not be a #ro)nd for the dis(issal of a petition for
certification election or s)spension of proceedin#s for certification election.
24?21. Can%e11a/,"n ". 5n,"n Re-,s/!a/,"nE ;!"2nds' 82!,sd,%/,"n and P!"%ed2!e
ART. 2>). Can%e11a/,"n ". Re-,s/!a/,"n. - The certificate of re#istration of any le#iti(ate labor or#ani;ation, whether
national or local, (ay be cancelled by the 0)rea), after d)e hearin#, only on the #ro)nds specified in Article "69
hereof.Q A*A 9E1=
A.7T" w&"m /&e e/,/,"n ,s .,1ed
Re-,"na1 D,!e%/"!? for cancellation of
1.= 7ndependent labor )nion
".= Chartered local
6.= 3orker8s association
B2!ea2 D,!e%/"!- for cancellation of
1.= 2ederations
".= $ational or ind)stry )nions
6.= Trade )nion centers
B.7W&" %an .,1e /&e e/,/,"nM
1.= Me(bers of the labor or#ani;ation concerned !for actions in%ol%in# %iolation of article "1
".= Any party in interest- all other #ro)nds
D.7;!"2nds: 6D+ 44?>>7
6a7 Misrepresentation, false state(ent or fra)d in connection with the adoption or ratification of the constit)tion and
by-laws or a(end(ents thereto, the (in)tes of ratification, and the list of (e(bers who took part in the ratificationJ
6b7 2ail)re to s)b(it the doc)(ents (entioned in the precedin# para#raph within 6> days fro( adoption or ratification
of the constit)tion and by-laws or a(end(ents thereto.
6%7 Misrepresentation, false state(ents or fra)d in connection with the election of officers, (in)tes of the election of
officers, and the list of %otersJ
6d7 2ail)re to s)b(it these doc)(ents to#ether with the list of newly elected or appointed officers and their postal
address within 6> days fro( election.
6e7 /ol)ntary dissol)tion by the (e(bers A new )nder *A 9E1=
ART. 2>(?A. :"12n/a!y Can%e11a/,"n ". Re-,s/!a/,"n. - The re#istration of a le#iti(ate labor or#ani;ation
(ay be cancelled by the or#ani;ation itself. Pro%ided, that at least two-thirds of its #eneral (e(bership %otes, in a
(eetin# d)ly called for that p)rpose to dissol%e the or#ani;ationC Pro%ided, f)rther, That an application to cancel
re#istration is thereafter s)b(itted by the board of the or#ani;ation, attested to by the president thereof.Q
6.7 2ail)re to s)b(it the ann)al report to the 0)rea) within 6> days after the close of e%ery fiscal year and
(isrepresentation, false entries or fra)d in the preparation of financial report.
6-7 Actin# as labor contractor or en#a#in# in the PcaboQ syste( or otherwise en#a#in# in any acti%ity prohibited by
law.
6&7 5nterin# into C0A which pro%ides for ter(s and conditions of e(ploy(ent below the (ini()( standards
established by law
6,7 Co((ission of any acts en)(erated )nder Article "1 based on this #ro)nd (ay be #ranted )nless s)pported by
at least 6>K of all (e(bers of the respondent labor or#ani;ationJ
637 Askin# for or acceptin# attorney8s fees or ne#otiation fees fro( the e(ployerE
6=7 1ther than for (andatory acti%ities )nder the labor code checkin# off special assess(ents or any other fees
witho)t d)ly si#ned indi%id)al written a)thori;ations of the (e(bersJ
617 2ail)re to s)b(it list of indi%id)al (e(bers to the b)rea) once a year or whene%er re<)ired by the 0)rea)
6m7 2ail)re to co(ply with the re<)ire(ent of re#istration prescribed )nder the r)les.
7n addition, a federation or national )nion or worker8s association (ay re%oke the charter on the #ro)nd ofC
1.= Disloyalty
".= 1ther s)ch #ro)nd as (ay be specified in the constit)tion and by-laws of the federation, national )nion or worker8s
association.
*"/e:Pars b, d f and l or those with asterisks are no lon#er #ro)nds for cancellation of re#istration b)t are #ro)nds to
e'pel, s)spend or fine errin# officers or (e(bers.
5nde! RA (4)1 w&,%& !"#,des /&a/:
GART. 242?A. Re"!/"!,a1 ReB2,!emen/s. - The followin# are doc)(ents re<)ired to be s)b(itted to the 0)rea) by
the le#iti(ate labor or#ani;ation concernedC
6a7 7ts constit)tion and by-laws, or a(end(ents thereto, the (in)tes of ratification, and the list of (e(bers who took
part in the ratification of the constit)tion and by-laws within thirty A6>= days fro( adoption or ratification of the
constit)tion and by-la( or a(end(ents theretoJ
6b7 7ts list of officers, (in)tes of the election of officers, and list of %oters within thirty A6>= days fro( electionJ
6%7 7ts ann)al financial report within thirty A6>= days after the close of e%ery fiscal yearJ and
6d7 7ts list of (e(bers at least once a year or whene%er re<)ired by the 0)rea).
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2ail)re to co(ply with the abo%e re<)ire(ents shall not be a #ro)nd for cancellation of )nion re#istration b)t
shall s)b4ect the errin# officers or (e(bers to s)spension, e'p)lsion fro( (e(bership, or any appropriate penalty.Q
ART. 245?A. E..e%/ ". In%12s,"n as $embe!s ". Em1"yees "2/s,de /&e Ba!-a,n,n- 5n,/. - The incl)sion
as )nion (e(bers of e(ployees o)tside the bar#ainin# )nit shall not be a #ro)nd for the cancellation of the
re#istration of the )nion. &aid e(ployees are a)to(atically dee(ed re(o%ed fro( the list of (e(bership of said
)nion.Q
E.7 E00ECT +0 CA*CELLATI+*
?it shall operate to di%est the localBchapter of their stat)s as le#iti(ate labor or#ani;ation
-it shall di%est the local chapter of its le#al personality
-distin#)ish fro( 5ffect of a Petition for Cancellation of *e#istrationC

7n case of cancellation of re#istrationC
ART. 2>)?A. E..e%/ ". a Pe/,/,"n ."! Can%e11a/,"n ". Re-,s/!a/,"n. - A petition for cancellation of )nion
re#istration shall not s)spend the proceedin#s for certification election nor shall it pre%ent the filin# of a petition for
3hile, in case of cancellation, nothin# herein shall restrict the ri#ht of the )nion to seek 4)st and e<)itable
re(edies in the appropriate co)rts.
0: PRE+CED5RE
$oteCCancellation of re#istration is considered an inter or intra-)nion disp)te
1.7 C"m1a,n/ or e/,/,"n filed before the 0)rea) or *e#ional office. A&ee where to file=
2.7 0"!ma1 !eB2,!emen/s ". /&e %"m1a,n/ "! e/,/,"n.
7n writin#, %erified )nder oath containin# the followin#C
a.= na(e, address and other personal circ)(stances of the co(plainants or petitioner
b.= na(e, address and other personal circ)(stances of the respondents or the persons char#ed.
c.= nat)re of the co(plaint or petition.
d.= facts and circ)(stances s)rro)ndin# the co(plaint or petition.
e.= ca)ses of action or specific %iolations co((itted
f.= a state(ent that the ad(inistrati%e re(edies pro%ided for in the constit)tion and by laws ha%e been e'ha)sted
or s)ch re(edies are not readily a%ailable to the co(plainants or petitioners thro)#h no fa)lt of his own or
co(pliance with s)ch ad(inistrati%e re(edies does not apply to co(plainants or petitioners.
#.=*eliefs prayed for
h.= certificate of non-for)( shoppin# and
i= 1ther rele%ant (atters
2.7 Ra..1e ". %ase L for deter(inin# the Med-Arbiter or .earin# 1fficer who shall be assi#ned to the case in case it is
filed with the re#ional office.
>.7 *"/,%e ". P!e1,m,na!y C"n.e!en%e
The Med-Arbiter or .earin# officer shall prepare notice of preli(inary conference. 7t shall be sched)led within 1>
days fro( receipt of the co(plaint or petition.
The Med Arbiter or .earin# 1fficer shall ca)se the ser%ice of s)((ons to the respondents na(ed directin# hi( to
answer before the preli(inary conference and to appear on the preli(inary conference.
4.7 C"nd2%/ ". P!e1,m,na!y C"n.e!en%e
5'ertion of effort by the Med-Arbiter or .earin# officer for a(icable settle(ent.
7f there is a(icable settle(ent- decision based on co(pro(ise shall be iss)ed by the Med- arbiter or .earin#
officer.
7f none- The Med-Arbiter or .earin# officer shall proceed with stip)lation of facts, li(itation of iss)es, clarificatory
<)estionin# and s)b(ission of laws and 4)rispr)dence to s)pport each clai(.
5.7 Hea!,n-
6.7 A..,!ma/,"n ". /es/,m"n,a1 E#,den%e
Any affida%it s)b(itted by a party to pro%e his clai( or defenses shall be affir(ed by his presentation before the
Med-Arbiter or .earin# officer otherwise s)ch e%idence is inad(issible )nless the party a#ainst who( s)ch affida%it
is )sed ad(its the alle#ation.
7.7 0,1,n- ". P1ead,n-s and P"s,/,"n Pae!s
3ithin ", day period prescribed for the hearin#. 7f the case is already s)b(itted for decision, no other pleadin# is
allowed
).7 Hea!,n-
(.7 De%,s,"n
The 0)rea), Med-Arbiter or *e#ional Director as the case shall ha%e "> days to decide co(plaint or petition. The
decision shall state facts, findin#s concl)sion and relief #ranted.
14.7 Aea1
Aea1 /" /&e B2!ea2- decision of Med-Arbiter and
*e#ional Director within 1>
Days fro( receipt thereof.
Aea1 /" /&e S+LE! decision of the 0)rea) director
11 7t shall be %erified )nder oath and consists of (e(orand)( on appeal statin# #ro)nds relied )pon with
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s)pportin# ar#)(ents and e%idence.
-$o appeal- decision beco(es final after 1> days fro( receipt by the parties.
-only 1 Motion for reconsideration is allowed fro( decision of 0)rea) or &1L5 in its appellate 4)risdiction.
22. InB2,!y In/" 5n,"nNs 0,nan%,a1 A%/,#,/,es 6:,s,/"!,a1 P"we!7
A!/,%1e 274 :,s,/"!,a1 P"we!
W&": The &ecretary of Labor and 5(ploy(ent or his d)ly a)thori;ed representati%e is hereby e(powered to in<)ire
into the financial acti%ities of le#iti(ate labor or#ani;ation and to e'a(ine their book of acco)nts and other records.
W&en: :pon the filin# of a co(plaint )nder oath and d)ly s)pported by the written consent of at least ">K of the total
(e(bership of the labor or#ani;ation concerned.
P2!"se: To deter(ine co(pliance or non co(pliance with the law and to prosec)te any %iolations of the laws and of
the )nion8s constit)tion and by-laws.
L,m,/a/,"ns: 7n<)iry or e'a(ination shall not be cond)cted d)rin# the +>- day freedo( period nor within 6> days
i((ediately precedin# the date of election of )nion officials.
2>. +/&e! P"we!s ". /&e Se%!e/a!y ". Lab"!
ART. 27>. S/2dy ". 1ab"!?mana-emen/ !e1a/,"ns.
The &ecretary of Labor shall ha%e the power and it shall be his d)ty to in<)ire intoC
Aa= The e'istin# relations between e(ployers and e(ployees in the PhilippinesJ
Ab= The #rowth of associations of e(ployees and the effect of s)ch associations )pon e(ployer-e(ployee relationsJ
Ac= The e'tent and res)lts of the (ethods of collecti%e bar#ainin# in the deter(ination of ter(s and conditions of
e(ploy(entJ
Ad= The (ethods which ha%e been tried by e(ployers and associations of e(ployees for (aintainin# ()t)ally
satisfactory relationsJ
Ae= Desirable ind)strial practices which ha%e been de%eloped thro)#h collecti%e bar#ainin# and other %ol)ntary
arran#e(entsJ
Af= The possible ways of increasin# the )sef)lness and efficiency of collecti%e bar#ainin# for settlin# differencesJ
A#= The possibilities for the adoption of practical and effecti%e (ethods of labor-(ana#e(ent cooperationJ
Ah= Any other aspects of e(ployer-e(ployee relations concernin# the pro(otion of har(ony and )nderstandin#
between the partiesJ
Ai= The rele%ance of labor laws and labor relations to national de%elop(ent.
The &ecretary of Labor shall also in<)ire into the ca)ses of ind)strial )nrest and take all the necessary steps
within his power as (ay be prescribed by 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 4)d#(ent (ay be desirable for the (aintenance and pro(otion of
ind)strial peace.
The &ecretary of Labor thereby is #ranted the power to (ake feasibility st)dies, research and other powers
necessary to carry o)t the powers e'pressly #i%en in order to i(pro%e the relations between e(ployers, e(ployees,
associations and (ethods e(ployed by these parties s)ch as those in the C0A, etc. As there is a tripartis( in
decision and policy (akin# bodies of the #o%ern(ent, these st)dies shall then be s)b(itted for le#islation for the
pro(otion of ind)strial peace.
22. RI;HTS +0 LE;ITI$ATE LAB+R +R;A*IFATI+*
1. In -ene!a1
1= A)tono(y and #o%ernance of its affairs, partic)larlyC
a= to draw )p their constit)tionJ
b= freely elect their representati%esJ
c= to or#ani;e their acti%ities and for()late pro#ra(sJ
d= dissol%e or s)spend the or#ani;ationJ
"= *i#ht to its f)nds or propertyJ
6= *i#ht to protection fro( )nfair labor practices.
5nde! /&e Lab"! C"de
ART. 242. R,-&/s ". 1e-,/,ma/e 1ab"! "!-an,@a/,"ns. - A le#iti(ate labor or#ani;ation shall ha%e the ri#htC
Aa= To act as the representati%e of its (e(bers for the p)rpose of collecti%e
bar#ainin#J
Ab= To be certified as the e'cl)si%e representati%e of all the e(ployees in an
appropriate bar#ainin# )nit for p)rposes of collecti%e bar#ainin#J
Ac= To be f)rnished by the e(ployer, )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 thirty A6>= calendar days fro( the date of receipt of the re<)est, after
the )nion has been d)ly reco#ni;ed by the e(ployer or certified as the sole and
e'cl)si%e bar#ainin# representati%e of the e(ployees in the bar#ainin# )nit, or within
si'ty A+>= calendar days before the e'piration of the e'istin# collecti%e bar#ainin#
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a#ree(ent, or d)rin# the collecti%e bar#ainin# ne#otiationJ
Ad= To own property, real or personal, for the )se and benefit of the labor
or#ani;ation and its (e(bersJ
Ae= To s)e and be s)ed in its re#istered na(eJ and
Af= 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 pro4ects not contrary to
law.
$otwithstandin# any pro%ision of a #eneral or special law to the contrary, the
inco(e and the properties of le#iti(ate labor or#ani;ations, incl)din# #rants,
endow(ents, #ifts, donations and contrib)tions they (ay recei%e fro( fraternal and
si(ilar or#ani;ations, local or forei#n, which are act)ally, directly and e'cl)si%ely )sed
for their lawf)l p)rposes, shall be free fro( ta'es, d)ties and other assess(ents. The
e'e(ptions pro%ided herein (ay be withdrawn only by a special law e'pressly
repealin# this pro%ision. AAs a(ended by &ection 17, *ep)blic Act $o. +71,, March
"1, 19E9=.
This pres)pposes that the labor or#ani;ation has been d)ly re#istered.
2. EK%12s,#e Ba!-a,n,n- A-en/
E9CL5SI:E BAR;AI*I*; REPRESE*TATI:E
- refers to a le#iti(ate labor )nion d)ly reco#ni;ed or certified as the sole and e'cl)si%e bar#ainin#
representati%e or a#ent of all the e(ployees in a bar#ainin# )nit.
- P)rpose AArticle "", LC=C
Aa= To act as the representati%e of its (e(bers for the p)rpose of
collecti%e bar#ainin#J
>. Ce!/,.,%a/,"n P!"%ess: E1e%/,"n and :"12n/a!y Re%"-n,/,"n
De/e!m,na/,"n ". Re!esen/a/,"n S/a/2s
:+L5*TARA REC+;*ITI+* ! refers to the process by which a le#iti(ate labor )nion is reco#ni;ed by the
e(ployer as the e'cl)si%e bar#ainin# representati%e or a#ent in a bar#ainin# )nit.
*e<)ire(entsC Ain an )nor#ani;ed establish(ent=
1. A 4oint state(ent )nder oath of %ol)ntary reco#nition attestin# to the fact of %ol)ntary reco#nitionJ
". Certificate of postin# of the 4oint state(ent of %ol)ntary reco#nition for A1,= consec)ti%e days in at
least A"= conspic)o)s places in the establish(ent or bar#ainin# )nit where the )nion seeks to
operateJ
6. The appro'i(ate n)(ber of e(ployees in the bar#ainin# )nit, acco(panied by the na(es of
those who s)pport the %ol)ntary reco#nition co(prisin# at least a (a4ority of the (e(bers of the
bar#ainin# )nitJ and
. A state(ent that the labor )nion is the only le#iti(ate labor or#ani;ation within the bar#ainin# )nit.
$oteCCertified )nder oath by the e(ployer representati%e and president of the reco#ni;ed labor )nion.
Date of 5ffecti%ity ! ti(e of recordin# of %ol)ntary reco#nition.
5ffects of *e#istration !
1. 5n4oy(ent of the ri#hts, pri%ile#es and obli#ations of an e'istin# bar#ainin# a#ent of all the
e(ployees in the bar#ainin# )nit.
". 0ar the filin# of a petition for a certification election by any labor or#ani;ation for a period of A1= year
fro( the date of entry of %ol)ntary reco#nition.
$oteCDirect Certification is no lon#er allowed as the will of the (a4ority is fr)strated.
CERTI0ICATI+* +0 ELECTI+* ! refers to the process of deter(inin# thro)#h secret ballot the sole and e'cl)si%e
representati%e of the e(ployees in a bar#ainin# )nit for p)rposes of collecti%e bar#ainin#Bne#otiation ordered by
D1L5.
PETITI+* 5n"!-an,@ed Es/ab1,s&men/ +!-an,@ed Es/ab1,s&men/
3ho (ay file 1= Any le#iti(ate labor or#ani;ation
"= 3hen re<)ested to bar#ain collecti%ely, an
e(ployer
1= The petitioner is not listed in the
Depart(ent8s re#istry of le#iti(ate labor
)nionsJ
"= The petitioner8s le#al personality has been
re%oked or cancelled with finality in
accordance with *)le D7/ of the *)les.
3here to file *e#ional 1ffice which iss)ed the petitionin#
)nion8s certificate of re#istrationBcertificate of
creation of chartered local.
*e#ional 1ffice which iss)ed the petitionin#
)nion8s certificate of re#istrationBcertificate of
creation of chartered local.
3hen to file Anyti(e
*"/e:3here there is no certified bar#ainin#
a#ent, it shall be a)to(atically cond)cted )pon
the filin# of a petition by a le#iti(ate labor
or#ani;ation.
;ene!a1 R21e: Anyti(e
EK%e/,"ns:
1= 3hen a fact of %ol)ntary reco#nition has
been entered or a %alid certification, consent
or r)n-off election has been cond)cted
within the bar#ainin# )nit within A1= year
prior to the filin# of the petition for
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certification electionJ
*"/e: 3here an appeal has been filed fro( the
order of the Med-Arbiter certifyin# the res)lts of
the election, the r)nnin# of the 1-year period shall
be s)spended )ntil the decision on the appeal
has beco(e final and e'ec)tory.
"= 3hen the d)ly certified )nion has
co((enced and s)stained ne#otiations in
#ood faith with the e(ployer in accordance
with Article ",> of the LC within the 1-year
period referred in the i((ediately precedin#
para#raphJ
6= 3hen a bar#ainin# deadlock to which an
inc)(bent or certified bar#ainin# a#ent is a
party, had been s)b(itted to conciliation or
arbitration or had beco(e the s)b4ect of a
%alid notice of strike or locko)tJ
= 3hen the C0A between the 5* and a d)ly
reco#ni;ed or certified bar#ainin# a#ent has
been re#istered in accordance with Article
"61 of the LC. 3here s)ch C0A is
re#istered, the petition (ay be filed only
within A+>= days prior to its e'piry.
.earin# 1fficer Med-Arbiter Med-Arbiter
2or(s and Contents
of Petition
1= The na(e of petitioner, its address, and
affiliation if appropriate, the date and
n)(ber of its certificate of re#istration. 7f
the petition is filed by a federation or
national )nion, the date and n)(ber of the
certificate of re#istration or certificate of
creation of chartered localJ
"= The na(e, address, and nat)re of
e(ployer8s b)sinessJ
6= The description of the bar#ainin# )nitJ
= The appro'i(ate n)(ber of e(ployees in
the bar#ainin# )nitJ
,= The na(es and addresses of other
le#iti(ate labor )nions in the bar#ainin#
)nitJ
+= A state(ent indicatin# any of the followin#C
a. that the bar#ainin# )nit is
)nor#ani;ed or that there is no
re#istered collecti%e bar#ainin#
a#ree(ent co%erin# the e(ployees
in the bar#ainin# )nitJ
b. if there e'ists a d)ly re#istered
collecti%e bar#ainin# a#ree(ent,
that the petition is filed within the
+>-day freedo( period of s)ch
a#ree(entJ or
c. if another )nion had been
pre%io)sly reco#ni;ed %ol)ntarily or
certified in a %alid certification,
consent or r)n-off election, that the
petition is filed o)tside the 1-year
period fro( entry of %ol)ntary
reco#nition or cond)ct of
certification or r)n-off election and
no appeal pendin# thereon.
7= 1ther rele%ant facts.
*.B. Petition ()st (e %erified )nder oath by
the president of the petitionin# labor
or#ani;ation or its d)ly a)thori;ed
representati%e.
1= The na(e of petitioner, its address, and
affiliation if appropriate, the date and
n)(ber of its certificate of re#istration. 7f the
petition is filed by a federation or national
)nion, the date and n)(ber of the certificate
of re#istration or certificate of creation of
chartered localJ
"= The na(e, address, and nat)re of
e(ployer8s b)sinessJ
6= The description of the bar#ainin# )nitJ
= The appro'i(ate n)(ber of e(ployees in
,= The na(es and addresses of other
le#iti(ate labor )nions in the bar#ainin#
)nitJ
+= A state(ent indicatin# any of the followin#C
a. that the bar#ainin# )nit is
)nor#ani;ed or that there is no
re#istered collecti%e bar#ainin#
a#ree(ent co%erin# the e(ployees in
b. if there e'ists a d)ly re#istered
collecti%e bar#ainin# a#ree(ent, that
the petition is filed within the +>-day
freedo( period of s)ch a#ree(entJ or
c. if another )nion had been pre%io)sly
reco#ni;ed %ol)ntarily or certified in a
%alid certification, consent or r)n-off
election, that the petition is filed
o)tside the 1-year period fro( entry
of %ol)ntary reco#nition or cond)ct of
certification or r)n-off election and no
appeal pendin# thereon.
7= The si#nat)re of at least A",K= of all
e(ployees in the appropriate bar#ainin#
)nitJ
E= 1ther rele%ant facts.
Proced)re 1= *affle of the case to deter(ine the Med-
Arbiter to be assi#ned to the caseJ
"= 3ithin A6= days fro( receipt of petition, the
Med-Arbiter shall ca)se the ser%ice of
notice of preli(inary conference )pon the
e(ployer and inc)(bent bar#ainin# a#ent
which shall be within A1>= days fro(
receipt of the petitionJ
*"/e: A copy of the notice of preli(inary
conference and petition for certification election
shall be posted in at least A"= conspic)o)s
1= *affle of the case to deter(ine the Med-
Arbiter to be assi#ned to the caseJ
"= 3ithin A6= days fro( receipt of petition, the
Med-Arbiter shall ca)se the ser%ice of notice
of preli(inary conference )pon the e(ployer
and inc)(bent bar#ainin# a#ent which shall
be within A1>= days fro( receipt of the
petitionJ
*"/e: A copy of the notice of preli(inary
conference and petition for certification election
shall be posted in at least A"= conspic)o)s places
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places in the establish(ent.
6= Motion for inter%ention by any le#iti(ate
labor )nion other than the inc)(bent
bar#ainin# a#ent shall be filed ( (&0 #m"
%r#or o !" +"$#'#o& of !" M"+4Ar1#"r.
in the establish(ent.
6= Motion for inter%ention by any le#iti(ate
labor )nion other than the inc)(bent
bar#ainin# a#ent shall be filed +,r#&. !"
fr""+om %"r#o+ of !" CBA o M"+4Ar1#"r.
Preli(inary
Conference and
.earin#
Deter(ination ofC
1= The bar#ainin# )nit to be representedJ
"= Contendin# labor )nionsJ
6= &)ch other (atters as (ay be rele%ant for
Deter(ination ofC
1= The bar#ainin# )nit to be representedJ
"= Contendin# labor )nionsJ
6= 5'istence of any of the bars to certification
electionJ
= &)ch other (atters as (ay be rele%ant for
.earin#s $ot e'ceed A1,= days fro( the date of the
sched)led preli(inary conference. 5'tensions
of ti(e shall not be entertained.
*"/e: 2ail)re to appear shall be dee(ed a
wai%er of its ri#ht to be heard.
$ot e'ceed A1,= days fro( the date of the
sched)led preli(inary conference. 5'tensions of
ti(e shall not be entertained.
*"/e: 2ail)re to appear shall be dee(ed a
wai%er of its ri#ht to be heard.
1rderBDecision 3ithin A1>= days fro( the date of the last
hearin#.
3ithin A1>= days fro( the date of the last
hearin#.
*"/e: $o order or decision shall be iss)ed d)rin#
the freedo( period.
Contents of 1rder
Frantin# the Petition
1= The na(e of the e(ployer or
establish(entJ
"= The description of the bar#ainin# )nitJ
6= A state(ent that none of the #ro)nds for
dis(issal e'istsJ
= The na(es of the contendin# labor
)nionsJ
,= A directi%e )pon the 5* and the
contendin# )nionAs= to s)b(it within A1>=
days fro( receipt of order, the certified list
of e(ployees in the bar#ainin# )nit, or
where necessary, the payrolls co%erin#
the (e(bers of the bar#ainin# )nit for the
last A6= (onths prior to the iss)ance of the
order.
1= The na(e of the e(ployer or
establish(entJ
"= The description of the bar#ainin# )nitJ
6= A state(ent that none of the #ro)nds for
dis(issal e'istsJ
= The na(es of the contendin# labor )nionsJ
,= A directi%e )pon the 5* and the
contendin# )nionAs= to s)b(it within A1>=
days fro( receipt of order, the certified list
of e(ployees in the bar#ainin# )nit, or
where necessary, the payrolls co%erin# the
(e(bers of the bar#ainin# )nit for the last
A6= (onths prior to the iss)ance of the
order.
Fro)nds for Denial
of Petition
)nionsJ
accordance with *)le D7/ of the *)les.
)nionsJ
accordance with *)le D7/ of the *)lesJ
*"/e: 7f petition for cancellation is still pendin#,
the petition for certification election cannot be
denied or s)spended on s)ch #ro)nd. :ntil
s)ch ti(e that the re#istration has been
cancelled, the labor )nion en4oys le#al
personality.
6= The petition was filed before or after the
freedo( period of a d)ly re#istered C0AJ
pro%ided that the si'ty-day period based on
the ori#inal C0A shall not be affected by
any a(end(ent, e'tension or renewal of
the C0A- C+*TRACT BAR R5LE.
*"/e: The C0A has to be re#istered in
accordance with Art."61 of the LC.
= The petition was filed within A1= year fro(
entry of %ol)ntary reco#nition, or a %alid
certification, consent or r)n-off election and
no appeal on the res)lts of the certification,
consent, or r)n-off election is pendin# !
CERTI0ICATI+* AEAR BAR R5LE.
,= A d)ly certified )nion has co((enced and
s)stained ne#otiations with the 5* in
accordance with Art.",> of the LC within
the 1-year period referred to in the
precedin# para#raph 6 *E;+TIATI+*
BAR R5LE7 or there e'ists a bar#ainin#
deadlock which had been s)b(itted to
conciliation or arbitration or had beco(e
the s)b4ect of a %alid notice of strike or
locko)t to which an inc)(bent or certified
bar#ainin# a#ent is a party 6DEADL+CD
BAR R5LE7J
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+= 2ail)re to s)b(it the A",K= s)pport
re<)ire(ent for the filin# of the petition for
C+*D5CT +0
ELECTI+*
:nor#ani;ed 1r#ani;ation 1r#ani;ed 1r#ani;ation
.earin# 1fficer 5lection 1fficer 5lection 1fficer
Proced)re 1= 3ithin " ho)rs fro( receipt of the notice
of entry of final 4)d#(ent, the case shall
be raffled to an 5lection 1fficer who shall
ha%e control of the pre-election
conference and election proceedin#s.
"= 3ithin " ho)rs fro( receipt of the
assi#n(ent, the 5lection 1fficer shall
ca)se the iss)ance of notice of pre-
election conference )pon the contendin#
)nions and the e(ployer, which shall be
sched)led within 1> days fro( receipt of
assi#n(ent.
1= 3ithin " ho)rs fro( receipt of the notice of
entry of final 4)d#(ent, the case shall be
raffled to an 5lection 1fficer who shall ha%e
control of the pre-election conference and
election proceedin#s.
6= 3ithin " ho)rs fro( receipt of the
assi#n(ent, the 5lection 1fficer shall ca)se
the iss)ance of notice of pre-election
conference )pon the contendin# )nions and
the e(ployer, which shall be sched)led
within 1> days fro( receipt of assi#n(ent.
Pre-election
Conference
*"/e: The role of
the 5* is a (ere
bystander while the
representati%e of the
D1L5 is a (ere
obser%er in
Certification
5lection. They are
not parties. 1nly the
e(ployees are
parties the(sel%es.
&et Mechanics and Deter(ination ofC
1= Date, ti(e and place of the election, which
shall not be later than , days fro( the
date of first pre-election conference, and
shall be on a re#)lar workin# day and
within the e(ployerOs pre(ises, )nless
circ)(stances re<)ire otherwiseJ
"= List of eli#ible and challen#ed %otersJ
6= $)(ber and location of pollin# places or
booths and the n)(ber of ballots to be
prepared with appropriate translations, if
necessaryJ
= $a(e of watchers or representati%es and
their alternati%es for each of the parties
d)rin# the electionJ
,= Mechanics and #)idelines of election.
*"/e: 2ail)re to appear shall be considered as a
wai%er to be present and to <)estion or ob4ect to
any of the a#ree(ents. .owe%er, it shall not be
depri%ed of the ri#ht to be f)rnished notices of
s)bse<)ent pre-election conferences and to
attend the sa(e.
&et Mechanics and Deter(ination ofC
1= Date, ti(e and place of the election, which
shall not be later than , days fro( the date
of first pre-election conference, and shall be
on a re#)lar workin# day and within the
e(ployerOs pre(ises, )nless circ)(stances
re<)ire otherwiseJ
1= List of eli#ible and challen#ed %otersJ
"= $)(ber and location of pollin# places or
booths and the n)(ber of ballots to be
prepared with appropriate translations, if
necessaryJ
6= $a(e of watchers or representati%es and
their alternati%es for each of the parties
d)rin# the electionJ
= Mechanics and #)idelines of election.
*"/e: 2ail)re to appear shall be considered as a
wai%er to be present and to <)estion or ob4ect to
any of the a#ree(ents. .owe%er, it shall not be
depri%ed of the ri#ht to be f)rnished notices of
s)bse<)ent pre-election conferences and to
attend the sa(e.
2ail)re of 5lection
- it is where the
n)(ber of %otes
cast in a certification
or consent election
is less than the
(a4ority of the
n)(ber of eli#ible
%oters and there are
no (aterial
challen#ed %otes.
7t shall not bar the filin# of a (otion for the
i((ediate holdin# of another certification or
consent election within A+= (onths fro( date of
declaration of fail)re of election.
7t shall not bar the filin# of a (otion for the
i((ediate holdin# of another certification or
consent election within A+= (onths fro( date of
declaration of fail)re of election.
Procla(ation and
Certification of
*es)lt
The Med-Arbiter fro( receipt of the (in)tes and
res)lts of election, shall iss)e an order
proclai(in# the res)lts of the elections and
certifyin# the )nion which obtained a (a4ority of
the %alid %otes cast as the sole and e'cl)si%e
bar#ainin# )nit )nder any of the followin#
conditionsC
1= $o protest was filed or e%en if one was
filed, sa(e was not perfected within the ,-
day period for perfection of the protestJ
"= $o challen#e or eli#ibility iss)e was raised
or, e%en if one was raised, the resol)tion
of the sa(e will not (aterially chan#e the
res)lts of the election.
*"/e: 3here (a4ority of the %alid %otes cast
res)lts in P$o :nionQ obtainin# the (a4ority, the
Med-Arbiter shall declare s)ch fact in the
order.
The Med-Arbiter fro( receipt of the (in)tes and
res)lts of election, shall iss)e an order
proclai(in# the res)lts of the elections and
certifyin# the )nion which obtained a (a4ority of
the %alid %otes cast as the sole and e'cl)si%e
bar#ainin# )nit )nder any of the followin#
conditionsC
6= $o protest was filed or e%en if one was filed,
sa(e was not perfected within the ,-day
period for perfection of the protestJ
= $o challen#e or eli#ibility iss)e was raised
or, e%en if one was raised, the resol)tion of
the sa(e will not (aterially chan#e the
res)lts of the election.
*"/e: 3here (a4ority of the %alid %otes cast
res)lts in P$o :nionQ obtainin# the (a4ority, the
Med-Arbiter shall declare s)ch fact in the order.
Appeal or *e(edies Any party to an election (ay appeal the res)lts
of the election as deter(ined by the Med-Arbiter
directly to the &1L5 on the #ro)nd that the r)les
and re#)lations or parts thereof for the cond)ct
of certification election ha%e been %iolated.
Any party to an election (ay appeal the res)lts of
the election as deter(ined by the Med-Arbiter
directly to the &1L5 on the #ro)nd that the r)les
and re#)lations or parts thereof for the cond)ct of
certification election ha%e been %iolated.
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*"/e: +R;A*IFED ESTABLISH$E*T ! refers to an enterprise where there e'ists a reco#ni;ed or certified sole and
e'cl)si%e bar#ainin# )nit.
C+*SE*T ELECTI+* ! refers to the process of deter(inin# thro)#h secret ballot the sole and e'cl)si%e
representati%e of the e(ployees in an appropriate bar#ainin# )nit for p)rposes of collecti%e bar#ainin# or
ne#otiation %ol)ntarily a#reed )pon by the parties, with or witho)t the inter%ention
of the D1L5.
1= - 7n case the contendin# )nions a#ree to a consent election, the Med-Arbiter shall not iss)e a
for(al order callin# for the cond)ct of certification election, b)t shall enter the fact of the a#ree(ent
in the (in)tes of the hearin# of the preli(inary conference si#ned by the parties and attested by
the Med-Arbiter.
"= - 7t shall constit)te a bar to the holdin# of a certification election for A1= year fro( the holdin# of
s)ch consent election.
6=
R5*?+00 ELECTI+* ! refers to an election between the labor )nions recei%in# the A"= hi#hest n)(ber of
%otes in a certification or consent election with A6= or (ore choices, where s)ch certified or consent election
res)lts in none of the A6= or (ore choices recei%in# the (a4ority of the %alid %otes castJ
pro%ided that the total n)(ber of %otes for all contendin# )nions is at least A,>K= of the n)(ber of %otes
cast.
*"/e: P$1 :$71$Q shall not be a choice in the r)n-off election.
4. Ba!-a,n,n- 5n,/
0A*FA7$7$F :$7T ! refers to a #ro)p of e(ployees sharin# ()t)al interests within a #i%en e(ployer )nit,
co(prised of all or less than all of the entire body of e(ployees in the e(ployer )nit or any specific occ)pational or
#eo#raphical #ro)pin# within s)ch e(ployer )nit. AD1 >->6=
5. 82!,sd,%/,"na1 P!e%"nd,/,"ns /" C"11e%/,#e Ba!-a,n,n-
1= Possession of the stat)s of (a4ority representation of the e(ployee8s representati%eJ
"= Proof of (a4ority representationJ
6= A de(and to bar#ain.
6. D2/y /" Ba!-a,n
S,/2a/,"n +ne Awitho)t C0AJ Art.",1 LC=
- 7t is the ()t)al obli#ation of the e(ployer and the e(ployee8s (a4ority )nion to (eet and con%ene for
the p)rpose ofC
1= ne-"/,a/,n- an a#ree(ent on the s)b4ects ofC
a. wa#esJ
b. ho)rs of workJ and
c. all other ter(s and conditions of e(ploy(ent incl)din# proposals for ad4)stin#
#rie%ances or <)estions arisin# )nder s)ch a#ree(entJ and
"= eKe%2/,n- a contract incorporatin# s)ch a#ree(ent if re<)ested by either party.
- Iind of Co(plianceC A1= pro(ptJ A"= e'peditio)sJ and A6= in #ood faith.
- Li(itations of the d)ty are that it does not co(pel any partyC
A1= to a#ree to a proposalJ or
A"= to (ake a concession.
S,/2a/,"n Tw" Awith C0AJ Art.",6 LC=
- The d)ty to bar#ain (eans all of the abo%e and, additionallyC
''' ''' '''
6= n"/ /" /e!m,na/e "! m"d,.y the C0A d)rin# its lifeti(e.
- 0)t A+>= days before the C0A e'pires, either party (ay notify the other, in writin# that it
desires to ter(inate or (odify the ne#otiable pro%isions of the a#ree(ent. D)rin# the +>-day period and
)ntil a new a#ree(ent is reached, the C0A re(ains in f)ll force and effect and the parties are d)ty-bo)nd to
keep the stat)s <)o.
7. :,"1a/,"ns ". R,-&/ /" Ba!-a,n
A(o)nts to :LPJ is co((itted in the followin# for(sC
1. fail)re or ref)sal to (eet and con%eneJ
". e%adin# the p)rposes of bar#ainin#J
6. not obser%in# #ood faith in bar#ainin#J andBor
. #rossly %iolatin# the econo(ic pro%isions of the C0A.
). R,-&/ /" C"11e%/,#e Ba!-a,n,n-
S,n-1e En/e!!,se Ba!-a,n,n-CDe%en/!a1,@ed Ba!-a,n,n-
` 3hen a%ailableC
- any %ol)ntarily reco#ni;ed or certified labor )nion (ay de(and ne#otiations with its e(ployer for
ter(s and conditions of work co%erin# e(ployees in the bar#ainin# )nit concerned.
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` Proced)reC
- a reco#ni;ed or certified labor )nion that desires to ne#otiate with its e(ployer shall s)b(it s)ch
intention in writin# to the e(ployer, to#ether with its proposals for collecti%e bar#ainin#J
- the reco#ni;ed or certified labor )nion and its e(ployer (ay adopt s)ch proced)res and processes
they dee( appropriate and necessary for the early ter(ination of their ne#otiationsJ
- they shallC
1= na(e their respecti%e representati%esJ
"= sched)le the n)(ber and fre<)ency of (eetin#sJ
6= a#ree on wa#es, benefits and other ter(s and conditions of work for all e(ployees
co%ered in the bar#ainin# )nit.
$21/,?Em1"ye! Ba!-a,n,n-
`3hen a%ailableC
- a le#iti(ate labor )nionAs= and e(ployers (ay a#ree in writin# to co(e to#ether for the p)rpose
of collecti%e bar#ainin#, pro%idedC
1= only le#iti(ate labor )nions who are inc)(bent e'cl)si%e bar#ainin# a#ents (ay
participate and ne#otiate in ()lti-e(ployer bar#ainin#J
"= only e(ployers with co)nterpart le#iti(ate labor )nions who are inc)(bent bar#ainin#
a#ents (ay participate and ne#otiate in ()lti-e(ployer bar#ainin#J and
6= only those le#iti(ate labor )nions who pertain to e(ployer )nits who consent to ()lti-
e(ployer bar#ainin# (ay participate in ()lti-e(ployer bar#ainin#.
` Proced)reC
A1= Le#iti(ate labor )nions who desire to ne#otiate with their e(ployers collecti%ely shall e'ec)te a
written a#ree(ent a(on# the(sel%es, which shall contain the followin#C
a. the na(es of the labor )nions who desire to a%ail of ()lti-e(ployer
bar#ainin#J
b. each labor )nion in the e(ployer )nitJ
c. the fact that each of the labor )nions are the inc)(bent e'cl)si%e
bar#ainin# a#ent of their respecti%e e(ployer )nitsJ
d. the d)ration of the collecti%e bar#ainin# a#ree(ents, if any, entered into
by each labor )nion with their respecti%e e(ployers.
*"/e: Le#iti(ate labor )nions who are (e(bers of the sa(e re#istered
federation, national, or ind)stry )nion are e'e(pt fro( e'ec)tion of this written
a#ree(ent.
A"= The le#iti(ate labor )nions who desire to bar#ain with ()lti-e(ployers shall send a
written notice to this effect to each e(ployer concerned. The written a#ree(ent stated
in the precedin# para#raph, or the certificates of re#istration of the federation, national,
or ind)stry )nion, shall acco(pany said notice.
5(ployers who a#ree to #ro)p the(sel%es or )se their e'istin# associations to
en#a#e in ()lti-e(ployer bar#ainin# shall send a written notice to each of their
co)nterpart le#iti(ate labor )nions indicatin# their desire to en#a#e in ()lti-e(ployer
bar#ainin# and shall indicate the followin#C
a. the na(es of the e(ployers who desire to a%ail of ()lti-e(ployer
bar#ainin#J
b. their correspondin# le#iti(ate labor or#ani;ationsJ
c. the fact that each correspondin# le#iti(ate )nion is any inc)(bent
e'cl)si%e bar#ainin# a#entJ
d. the d)ration of the c)rrent C0A, if any, entered into by each e(ployer
with the co)nterpart le#iti(ate labor )nion.
A6= 5ach e(ployer or concerned labor )nion shall e'press its willin#ness or ref)sal to
participate in ()lti-e(ployer bar#ainin# in writin#, addressed to its correspondin#
e'cl)si%e bar#ainin# a#ent or e(ployer.
*"/e:$e#otiations (ay co((ence only with re#ard to respecti%e e(ployers and
labor )nions who consent to participate in ()lti-e(ployer bar#ainin#.
A= D)rin# the co)rse of the ne#otiations, consentin# e(ployers and the correspondin#
le#iti(ate labor )nions shall disc)ss and a#ree on the followin#C
a. the (anner by which ne#otiations shall proceedJ
b. the scope and co%era#e of the ne#otiations and the a#ree(entJ and
c. where appropriate, the effect of the ne#otiations on c)rrent a#ree(ents
or conditions of e(ploy(ent a(on# the parties
(. W&en /" Ba!-a,n
? if the 4)risdictional preconditions are present, the collecti%e bar#ainin# sho)ld be#in within the A1"=
(onths followin# the deter(ination and certification of the e(ployees8 e'cl)si%e bar#ainin# representati%e
6CERTI0ICATI+* AEAR7.
14. C"n/en/s ". CBA
The s)b4ects of pro%isions co((only fo)nd in collecti%e bar#ainin# a#ree(ents areC
1. 5n)(eration or reser%ation of (ana#e(ent ri#hts
". :nion reco#nition and sec)rity
6. 3a#e and frin#e benefits and their ad(inistration
. Physical workin# conditions
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,. &elected personnel (ana#e(ent and plant operation practices
+. Frie%ance and arbitration
7. D)ration of contract
E. Pro#ra(s to pro(ote dr)#-free workplace Are<)ired )nder *A 91+,=
11. ;!,e#an%e ma%&,ne!y
A!/. 264. ;!,e#an%e ma%&,ne!y and #"12n/a!y a!b,/!a/,"n. The parties to a Collecti%e 0ar#ainin#
A#ree(ent shall incl)de therein pro%isions that will ens)re the ()t)al obser%ance of its ter(s and conditions.
They shall establish a (achinery for the ad4)st(ent and resol)tion of #rie%ances arisin# fro( the interpretation
or i(ple(entation of their Collecti%e 0ar#ainin# A#ree(ent and those arisin# fro( the interpretation or
enforce(ent of co(pany personnel policies.
All #rie%ances s)b(itted to the #rie%ance (achinery which are not settled within se%en A7= calendar
days fro( the date of its s)b(ission shall a)to(atically be referred to %ol)ntary arbitration prescribed in the
Collecti%e 0ar#ainin# A#ree(ent.
2or this p)rpose, parties to a Collecti%e 0ar#ainin# A#ree(ent shall na(e and desi#nate in ad%ance a
/ol)ntary Arbitrator or panel of /ol)ntary Arbitrators, or incl)de in the a#ree(ent a proced)re for the selection of
s)ch /ol)ntary Arbitrator or panel of /ol)ntary Arbitrators, preferably fro( the listin# of <)alified /ol)ntary
Arbitrators d)ly accredited by the 0oard. 7n case the parties fail to select a /ol)ntary Arbitrator or panel of
/ol)ntary Arbitrators, the 0oard shall desi#nate the /ol)ntary Arbitrator or panel of /ol)ntary Arbitrators, as (ay
be necessary, p)rs)ant to the selection proced)re a#reed )pon in the Collecti%e 0ar#ainin# A#ree(ent, which
shall act with the sa(e force and effect as if the Arbitrator or panel of Arbitrators has been selected by the
parties as described abo%e.
De.,n,/,"n ". Te!ms:
;!,e#an%e- is any <)estion by either the e(ployer or the )nion re#ardin# the interpretation or application of the
collecti%e bar#ainin# a#ree(ent or co(pany personnel policies or any clai( by either party that the other party is
%iolatin# any pro%ision of the C0A or co(pany personnel policies. 7t is a co(plaint or dissatisfaction arisin# fro( the
interpretation or i(ple(entation of the C0A and those arisin# fro( interpretation or enforce(ent of personnel
policies.
C"manyCPe!s"nne1 P"1,%,es- are #)idin# principles stated in broad, lon#-ran#e ter(s that e'press the
philosophy or beliefs of an or#ani;ations8 top a)thority re#ardin# personnel (atters. They deal with (atters
affectin# efficiency and well-bein# of e(ployees and incl)de, a(on# others, the proced)res in the ad(inistration
of wa#es, benefits, pro(otions, transfer and other personnel (o%e(ents which are )s)ally not spelled o)t in the
collecti%e bar#ainin# a#ree(ent.
;!,e#an%e $a%&,ne!y- refers to the (echanis( for the ad4)st(ent and resol)tion of #rie%ances arisin# fro(
the interpretation or i(ple(entation of a C0A and those arisin# fro( the interpretation or enforce(ent of co(pany
personnel policies. 7t is part of the contin)in# process of collecti%e bar#ainin#.

12. 5n,"n Se%2!,/y C1a2se
A _)nion sec)rity cla)se8 is a stip)lation in the C0A whereby the (ana#e(ent reco#ni;es that the
(e(bership of e(ployees in the )nion which ne#otiated said a#ree(ent sho)ld be (aintained and contin)ed as
a condition for e(ploy(ent or retention of e(ploy(ent. The ob%io)s p)rpose is to safe#)ard and ens)re the
contin)ed e'istence of the )nion.
TypesC
1. Closed shop a#ree(ent
". Maintenance of (e(bership a#ree(ent
6. :nion shop a#ree(ent
. Modified )nion shop a#ree(ent
,. 5'cl)si%e bar#ainin# a#ree(ent
+. 0ar#ainin# for (e(bers only a#ree(ent
7. A#ency shop a#ree(ent
E. Preferential hirin# a#ree(ent
1>. D!2-?0!ee W"!=1a%e
Re2b1,% A%/ *". (165
C"m!e&ens,#e Dan-e!"2s D!2-s A%/ ". 2442
82ne 47' 2442
A!/,%1e :. Promo#o& of ( N(#o&(* Dr,.4Fr"" Wor/%*($" Pro.r(m )#! !" P(r#$#%(#o& of Pr#8(" (&+ L(1or S"$or'
(&+ !" D"%(rm"& of L(1or (&+ Em%*o0m"&
&ection 7. +rug:5ree Wor<lace.- 7t is dee(ed a policy of the &tate to pro(ote dr)#-free
workplaces )sin# a tripartite approach. 3ith the assistance of the 0oard, the Depart(ent of Labor and 5(ploy(ent
AD1L5= shall de%elop, pro(ote and i(ple(ent a national dr)# ab)se pre%ention pro#ra( in the workplace to be
adopted by pri%ate co(panies with ten A1>= or (ore e(ployees. &)ch pro#ra( shall incl)de the (andatory draftin#
and adoption of co(pany policies a#ainst dr)# )se in the workplace in close cons)ltation and coordination with the
D1L5, labor and e(ployer or#ani;ations, h)(an reso)rce de%elop(ent (ana#ers and other s)ch pri%ate sector
or#ani;ations.
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&ection E. 7uidelines for the 4ational +rug:5ree Wor<lace Program. - The 0oard and
the D1L5 shall for()late the necessary #)idelines for the i(ple(entation of the national dr)#-free workplace
pro#ra(. The a(o)nt necessary for the i(ple(entation of which shall be incl)ded in the ann)al Feneral
Appropriations Act.
A!/,%1e :I. P(r#$#%(#o& of !" Pr#8(" (&+ L(1or S"$or' #& !" E&for$"m"& of !#' A$
&ection 9. Labor 2rganiHations and the Private Sector. - All labor )nions,
federations, associations, or or#ani;ations in cooperation with the respecti%e pri%ate sector partners shall incl)de in
their collecti%e bar#ainin# or any si(ilar a#ree(ents, 4oint contin)in# pro#ra(s and infor(ation ca(pai#ns for the
laborers si(ilar to the pro#ra(s pro%ided )nder &ection 7 of this Act with the end in %iew of achie%in# a dr)# free
workplace.
&ection ,>. 7overnment Assistance. - The labor sector and the respecti%e partners (ay, in
p)rs)it of the pro#ra(s (entioned in the precedin# &ection, sec)re the technical assistance, s)ch as b)t not li(ited
to, se(inars and infor(ation disse(ination ca(pai#ns of the appropriate #o%ern(ent and law enforce(ent a#encies.
14. $anda/"!y S2b3e%/s ". Ba!-a,n,n-
1. Pro%ision on wa#e increasesJ
". Pro%ision on #rie%ance (achinery and %ol)ntary arbitrationJ
6. A Pno strike, no locko)tQ cla)se
A!/. 252. $ean,n- ". d2/y /" ba!-a,n %"11e%/,#e1y. The d)ty to bar#ain collecti%ely (eans the
perfor(ance of a ()t)al obli#ation to (eet and con%ene pro(ptly and e'peditio)sly in #ood faith for the p)rpose
of ne#otiatin# an a#ree(ent with respect to wa#es, ho)rs of work and all other ter(s and conditions of
e(ploy(ent incl)din# proposals for ad4)stin# any #rie%ances or <)estions arisin# )nder s)ch a#ree(ent and
e'ec)tin# a contract incorporatin# s)ch a#ree(ents if re<)ested by either party b)t s)ch d)ty does not co(pel
any party to a#ree to a proposal or to (ake any concession.
15. Imasse
-A point at which no f)rther pro#ress can be (ade.
-A sit)ation that is so diffic)lt that no pro#ress can be (adeJ a deadlock or a stale(ateC i.e. r"($!"+ (&
#m%(''" #& !" &".o#(#o&'.
16. B"21wa!,sm
7t is an )nfair labor practice to (ake a proposal which is not s)b4ect to bar#ainin#. 7n a :& case, the
e(ployer8s Pfir( and finalQ offer, acco(panied by a take-it-or-lea%e-it strate#y, was presented thro)#h a barra#e of
p)blicity praisin# the PfairnessQ of the packa#e and pict)rin# the co(pany Anot the )nion= as the e(ployees8 Ptr)eQ
representati%e. 7n effect, there was to be no bar#ainin# and the )nion was rendered ineffecti%e or irrele%ant. The
co(pany dealt with the )nion thro)#h the e(ployees rather than with the e(ployees thro)#h the )nion. This
strate#y, called 0o)lwaris( beca)se if was first )sed by a Mr. 0o)lware, is constr)ed by a :& co)rt as bad-faith
bar#ainin#, hence an )nfair labor practice.
17. Ra/,.,%a/,"n ". CBA: w&en neededM
-The a#ree(ent ne#otiated by the e(ployees8 bar#ainin# a#ent sho)ld be ratified or appro%ed by the
(a4ority of all the workers in the bar#ainin# )nit, as pro%ided )nder Article "61of the Labor Code.
The ratification and the way to do it are (andatory. The C0A sho)ld be posted for at least fi%e A,= days in
two A"= conspic)o)s places in the establish(ent before ratification, to enable the workers to infor( the(sel%es of its
pro%isions. Moreo%er, the C0A to be s)b(itted to the D1L5 sho)ld carry the sworn state(ent of the )nion secretary,
attested to be the )nion president, that the C0A had been d)ly posted and ratified. There re<)ire(ents are
(andatoryJ non-co(pliance (akes the C0A ineffecti%e.
A!/. 2>1. Re-,s/!y ". 2n,"ns and .,1e ". %"11e%/,#e ba!-a,n,n- a-!eemen/s. The 0)rea) shall keep a
re#istry of le#iti(ate labor or#ani;ations. The 0)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)ntary arbitrators. The file shall be open and accessible to interested parties )nder conditions prescribed by the
&ecretary of Labor and 5(ploy(ent, pro%ided that no specific infor(ation s)b(itted in confidence shall be disclosed
)nless a)thori;ed by the &ecretary, or when it is at iss)e in any 4)dicial liti#ation, or when p)blic interest or national
sec)rity so re<)ires.
3ithin thirty A6>= days fro( the e'ec)tion of a Collecti%e 0ar#ainin# A#ree(ent, the parties shall s)b(it
copies of the sa(e directly to the 0)rea) or the *e#ional 1ffices of the Depart(ent of Labor and 5(ploy(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 by the (a4ority of all the workers in the bar#ainin# )nit. The 0)rea) or *e#ional 1ffices shall act )pon the
application for re#istration of s)ch Collecti%e 0ar#ainin# A#ree(ent within fi%e A,= calendar days fro( receipt thereof.
The *e#ional 1ffices shall f)rnish the 0)rea) with a copy of the Collecti%e 0ar#ainin# A#ree(ent within fi%e A,= days
fro( its s)b(ission.
The 0)rea) or *e#ional 1ffice shall assess the e(ployer for e%ery Collecti%e 0ar#ainin# A#ree(ent a
re#istration fee of not less than one tho)sand pesos AP1,>>>.>>= or in any other a(o)nt as (ay be dee(ed
appropriate and necessary by the &ecretary of Labor and 5(ploy(ent for the effecti%e and efficient ad(inistration of
the /ol)ntary Arbitration Pro#ra(. Any a(o)nt collected )nder this pro%ision shall accr)e to the &pecial /ol)ntary
Arbitration 2)nd.
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The 0)rea) shall also (aintain a file and shall )ndertake or assist in the p)blication of all final decisions,
orders and awards of the &ecretary of Labor and 5(ploy(ent, *e#ional Directors and the Co((ission. AAs
a(ended by &ection 1,, *ep)blic Act $o. +71,, March "1, 19E9=
1). Ra/,.,%a/,"n ". CBA: w&en *+T neededM
-*atification of the C0A by the e(ployees in the bar#ainin# )nit is not needed when the C0A is a prod)ct of
an arbitral award by appropriate #o%ern(ent a)thority or a %ol)ntary arbitrator.
1(. Re-,s/!a/,"n ". CBA
-The collecti%e a#ree(ent, ha%in# been properly ratified, sho)ld be re#istered with the D1L5 *e#ional
1ffice where the bar#ainin# )nion is re#istered or where it principally operates. Art. "61 re<)ires the re#istration
within thirty A6>= calendar days fro( the e'ec)tion of the a#ree(ent. M)lti-e(ployer collecti%e bar#ainin# a#ree(ent
shall be filed with the 0)rea).
*e<)ire(ents for *e#istration
&ec. ", *)le D/77, D1 $o. >->6 pro%idesC
PThe application for C0A re#istration shall be acco(panied by the ori#inal and two A"= d)plicate copies of
the followin# doc)(ents which ()sh be certified )nder oath by the representati%eAs= of the e(ployerAs= and labor
)nionAs= concernedC
Aa= the collecti%e bar#ainin# a#ree(entJ
Ab= a state(ent that the collecti%e bar#ainin# a#ree(ent was posted in at least two A"= conspic)o)s places
in the establish(entBs concerned for at least fi%e A,= days before its ratificationJ and
Ac= a state(ent that the collecti%e bar#ainin# a#ree(ent was ratified by the (a4ority of the e(ployees in the
bar#ainin# )nit of the e(ployer or e(ployers concerned.
$o other doc)(ent shall be re<)ired in the re#istration of collecti%e bar#ainin# a#ree(ent.Q
24. Te!m ". CBA
-A C0A lasts for fi%e A,= years for the Prepresentation aspectQ and not (ore than three A6= years for Pall other
pro%isionsQ. The Prepresentation aspectQ refers to the identity and (a4ority stat)s of the )nion that ne#otiated the
C0A as the e'cl)si%e bar#ainin# representati%e. PAll other pro%isionsQ si(ply refers to the rest of the C0A, econo(ic
as well as non-econo(ic, e'cept representational, pro%isions.
Re!esen/a/,"n ase%/ 6s"1e and eK%12s,#e s/a/2s ". %e!/,.,ed 2n,"n7:
- The ter( is 5 yea!s which (eans that no petition <)estionin# the (a4ority stat)s of the inc)(bent
bar#ainin# a#ent shall be entertained by D1L5 and no certification election shall be cond)cted o)tside of the +>-day
freedo( period.
A11 "/&e! !"#,s,"ns
6w&,%& !e.e! /" b"/& e%"n"m,% and n"n?e%"n"m,% !"#,s,"ns eK%e/ !e!esen/a/,"n7:
" &hall be rene#otiated not later than three A6= years after its e'ec)tion.
A!/. 25>?A. Te!ms ". a %"11e%/,#e ba!-a,n,n- a-!eemen/. Any Collecti%e 0ar#ainin# A#ree(ent that the
parties (ay enter into shall, insofar as the representation aspect is concerned, be for a ter( of fi%e A,= years. $o
petition <)estionin# the (a4ority stat)s of the inc)(bent bar#ainin# a#ent shall be entertained and no certification
election shall be cond)cted by the Depart(ent of Labor and 5(ploy(ent o)tside of the si'ty-day period i((ediately
before the date of e'piry of s)ch fi%e-year ter( of the Collecti%e 0ar#ainin# A#ree(ent. All other pro%isions of the
Collecti%e 0ar#ainin# A#ree(ent shall be rene#otiated not later than three A6= years after its e'ec)tion. Any
a#ree(ent on s)ch other pro%isions of the Collecti%e 0ar#ainin# A#ree(ent entered into within si' A+= (onths fro(
the date of e'piry of the ter( of s)ch other pro%isions as fi'ed in s)ch Collecti%e 0ar#ainin# A#ree(ent, shall retroact
to the day i((ediately followin# s)ch date. 7f any s)ch a#ree(ent is entered into beyond si' (onths, the parties shall
a#ree on the d)ration of retroacti%ity thereof. 7n case of a deadlock in the rene#otiation of the Collecti%e 0ar#ainin#
A#ree(ent, the parties (ay e'ercise their ri#hts )nder this Code. AAs a(ended by &ection "1, *ep)blic Act $o.
+71,, March "1, 19E9=
21. Rene-"/,a/,"n C Re/!"a%/,#,/y ". CBA
7f the C0A is the %ery first for the bar#ainin# )nit, the Code does not state any r)le on the C0A8s effecti%ity
date. The parties ha%e to decide it for the(sel%es. 0)t if the ens)in# C0A is renewal, (odification or rene#otiation
of an e'pirin# one, the Code offers a for()la for the effecti%ity date. Art. ",6-A pro%ides that the ens)in# a#ree(ent,
if entered into within si' A+= (onths fro( e'piry of the old one, shall retroact to the date followin# s)ch e'piry date.
2or e'a(ple, if the C0A e'pired on Dece(ber 61 and the new one is concl)ded on, say, March 61, its effecti%ity date
is 9an)ary 1. 7f on the other hand, the new a#ree(ent is concl)ded after 9)ne 6>, then the (atter of retroaction and
the possible retroacti%e date are left to the parties.
The deter(inin# point is the date the parties a#reed, not the date they si#ned.
a. *)le in%ol%in# C0As concl)ded by the parties thro)#h ne#otiation Anot concl)ded thro)#h arbitral award=.
1. The collecti%e bar#ainin# a#ree(ent or other pro%isions of s)ch a#ree(ent entered into within si' A+=
(onths fro( the date of e'piry of the ter( of s)ch other pro%isions as fi'ed in the collecti%e bar#ainin# a#ree(ent
shall retroact to the day i((ediately followin# s)ch date.
". 7f any s)ch a#ree(ent is entered into beyond si' A+= (onths, the parties shall a#ree on the date of
effecti%ity thereof.
b. *)le in%ol%in# C0As concl)ded thro)#h arbitral awards by D1L5 &ecretary, $L*C or /ol)ntary Arbitrator
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A9)rispr)dence %aries=.
7n case of arbitral awards, the retroacti%ity of the C0A pro%ided )nder Article ",6-A of the Labor Code
Aen)(erated abo%e= has no application. Th)s, the &)pre(e Co)rt r)ledC
7n S. L,/"J' M"+#$(* C"&"r, I&$. 8'. Torr"', N::; SCRA >>@ 6G@@;7O, the effecti%ity date was (ade
retroacti%e to the date of the e'piration of the pre%io)s C0A.
7n P#"r ? Arr('r" (&+ S"8"+or#&. S"r8#$"', I&$. 8'. Ro*+(&4Co&f"'or, N:3G SCRA :@3, ;C> 6G@@<7O, the
effecti%e date of the new C0A sho)ld be the date the &ecretary of Labor and 5(ploy(ent has resol%ed the labor
disp)te.
7n M(&#*( E*"$r#$ Com%(&0 8'. P,#',m1#&., NG. R. No. G:><@?, J(&,(r0 :>, G@@@, ;C: SCRA G>;, :C@O , the
effecti%ity date was (ade prospecti%e per its 9an)ary "7, 1999 r)lin#. Later, per its 2ebr)ary "", ">>> r)lin# in the
sa(e case which was rendered )pon (otion for reconsideration, the effecti%ity of the C0A was (ade retroacti%e. 0)t
later, in its A)#)st 1, ">>> r)lin# which was rendered after a Motion for Partial *econsideration was filed by Meralco,
the &)pre(e Co)rt finally chan#ed the effecti%ity date thereof. 7t held that the arbitral award sho)ld retroact to the first
day after the si'-(onth period followin# the e'piration of the last day of the C0A, i.e., fro( 9)ne 1, 199+ to May 61,
199E.
LATEST R5LI*;: 7n the case of LMF Che(icals Corporation %s. &ecretary of D1L5, AF. *. $o. 1"7"",
April 17, ">>1=, the &)pre(e Co)rt r)led that retroacti%ity of C0A in arbitral awards is s)b4ect to the discretion of the
D1L5 &ecretary.
.old-1%er Principle
7n the absence of a new C0A, the parties ()st (aintain the stat)s <)o and ()st contin)e in f)ll
force and effect the ter(s and conditions of the e'istin# a#ree(ent )ntil a new a#ree(ent is reached. Aa)to(atic
renewal cla)se=
3hat are the re(edies in case of C0A deadlockT
7n case of a deadlock in the ne#otiation or rene#otiation of the collecti%e bar#ainin# a#ree(ent, the
parties (ay e'ercise the followin# ri#hts )nder the Labor CodeC
1. Conciliation and (ediation by the $CM0, D1L5.
". Declaration of a strike or locko)t, as the case (ay be.
6. *eferral of case to co(p)lsory or %ol)ntary arbitration.
22. R,-&/ /" .,nan%,a1 s/a/emen/s
A!/. 242. R,-&/s ". 1e-,/,ma/e 1ab"! "!-an,@a/,"ns. A le#iti(ate labor or#ani;ation shall ha%e the ri#htC
Ac= To be f)rnished by the e(ployer, )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 thirty A6>= calendar days fro( the date of receipt
of the re<)est, after the )nion has been d)ly reco#ni;ed by the e(ployer or certified as the sole and e'cl)si%e
bar#ainin# representati%e of the e(ployees in the bar#ainin# )nit, or within si'ty A+>= calendar days before the
e'piration of the e'istin# collecti%e bar#ainin# a#ree(ent, or d)rin# the collecti%e bar#ainin# ne#otiationJ
\\To better e<)ip the )nion in preparin# for or in ne#otiatin# with the e(ployer, the law AArt. "" WcX= #i%es it
the ri#ht to be f)rnished with the e(ployer8s a)dited financial state(ents. There are fo)r A= points in ti(e when the
)nion (ay ask in writin# for these state(entsC
1. After the )nion has been reco#ni;ed by the e(ployer as sole bar#ainin# representati%e of the
e(ployees in the bar#ainin# )nitJ or
". After the )nion is certified by the D1L5 as s)ch sole bar#ainin# representati%eJ or
6. 3ithin the last +> days of the li%e of the C0AJ or
. D)rin# the collecti%e bar#ainin# ne#otiation.
The a)dited financial state(ents, incl)din# the balance sheet and the profit and loss state(ent, sho)ld be
pro%ided by the e(ployer within 6> calendar days after receipt of the )nion8s re<)est.
2>. R,-&/ /" "1,%y and de%,s,"n ma=,n- !"%ess
A!/. 255. EK%12s,#e ba!-a,n,n- !e!esen/a/,"n and w"!=e!sH a!/,%,a/,"n ,n "1,%y and de%,s,"n?ma=,n-. The
labor or#ani;ation desi#nated or selected by the (a4ority of the e(ployees in an appropriate collecti%e bar#ainin# )nit
shall be the e'cl)si%e representati%e of the e(ployees in s)ch )nit for the p)rpose of collecti%e bar#ainin#. .owe%er,
an indi%id)al e(ployee or #ro)p of e(ployees shall ha%e the ri#ht at any ti(e to present #rie%ances to their
e(ployer.
Any pro%ision of law to the contrary notwithstandin#, workers shall ha%e the ri#ht, s)b4ect to s)ch r)les and
re#)lations as the &ecretary of Labor and 5(ploy(ent (ay pro()l#ate, to participate in policy and decision-(akin#
processes of the establish(ent where they are e(ployed insofar as said processes will directly affect their ri#hts,
benefits and welfare. 2or this p)rpose, workers and e(ployers (ay for( labor-(ana#e(ent co)ncilsC Pro%ided, That
the representati%es of the workers in s)ch labor-(ana#e(ent co)ncils shall be elected by at least the (a4ority of all
e(ployees in said establish(ent. AAs a(ended by &ection "", *ep)blic Act $o. +71,, March "1, 19E9=
\\only a%ailable on (atters directly affectin# the e(ployees
24. R,-&/ /" en-a-e ,n ea%e.21 %"n%e!/ed a%/,#,/,es
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A!/. 26>. S/!,=es' ,%=e/,n- and 1"%="2/s.
a. 7t is the policy of the &tate to enco)ra#e free trade )nionis( and free collecti%e bar#ainin#.
b. 3orkers 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(ployers to locko)t, consistent with the national interest, shall contin)e to be reco#ni;ed and respected.
.owe%er, no labor )nion (ay strike and no e(ployer (ay declare a locko)t on #ro)nds in%ol%in# inter-)nion
and intra-)nion disp)tes.
c. 7n case of bar#ainin# deadlocks, the d)ly certified or reco#ni;ed bar#ainin# a#ent (ay file a notice of strike
or the e(ployer (ay file a notice of locko)t with the Ministry at least 6> day before the intended date thereof.
7n cases of )nfair labor practice, the period of notice shall be 1, days and in the absence of a d)ly certified
or reco#ni;ed bar#ainin# a#ent, the notice of strike (ay be filed by any le#iti(ate labor or#ani;ation in
behalf of its (e(bers. .owe%er, in case of dis(issal fro( e(ploy(ent of )nion officers d)ly elected in
accordance with the )nion constit)tion and by-laws, which (ay constit)te )nion b)stin#, where the
e'istence of the )nion is threatened, the 1,-day coolin#-off period shall not apply and the )nion (ay take
action i((ediately. AAs a(ended by 5'ec)ti%e 1rder $o. 111, Dece(ber ", 19E+=
d. The notice ()st be in accordance with s)ch i(ple(entin# r)les and re#)lations as the Minister of Labor and
5(ploy(ent (ay pro()l#ate.
e. D)rin# the coolin#-off period, it shall be the d)ty of the Ministry to e'ert all efforts at (ediation and
conciliation to effect a %ol)ntary settle(ent. &ho)ld the disp)te re(ain )nsettled )ntil the lapse of the
re<)isite n)(ber of days fro( the (andatory filin# of the notice, the labor )nion (ay strike or the e(ployer
(ay declare a locko)t.
f. A decision to declare a strike ()st be appro%ed by a (a4ority of the total )nion (e(bership in the
bar#ainin# )nit concerned, obtained by secret ballot in (eetin#s or referenda called for that p)rpose. A
decision to declare a locko)t ()st be appro%ed by a (a4ority of the board of directors of the corporation or
association or of the partners in a partnership, obtained by 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)bstantially the sa(e #ro)nds
considered when the strike or locko)t %ote was taken. The Ministry (ay, at its own initiati%e or )pon the
re<)est of any affected party, s)per%ise the cond)ct of the secret ballotin#. 7n e%ery case, the )nion or the
e(ployer shall f)rnish the Ministry the res)lts of the %otin# at least se%en days before the intended strike or
locko)t, s)b4ect to the coolin#-off period herein pro%ided. AAs a(ended by 0atas Pa(bansa 0ilan# 16>,
A)#)st "1, 19E1 and f)rther a(ended by 5'ec)ti%e 1rder $o. 111, Dece(ber ", 19E+=
#. 3hen, in his opinion, there e'ists a labor disp)te ca)sin# or likely to ca)se a strike or locko)t in an ind)stry
indispensable to the national interest, the &ecretary of Labor and 5(ploy(ent (ay ass)(e 4)risdiction o%er
the disp)te and decide it or certify the sa(e to the Co((ission for co(p)lsory arbitration. &)ch ass)(ption
or certification shall ha%e the effect of a)to(atically en4oinin# the intended or i(pendin# strike or locko)t as
specified in the ass)(ption or certification order. 7f one has already taken place at the ti(e of ass)(ption or
certification, all strikin# or locked o)t e(ployees shall i((ediately ret)rn-to-work and the e(ployer shall
i((ediately 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 &ecretary of Labor and 5(ploy(ent or the Co((ission (ay 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 (ay iss)e to enforce the sa(e.
7n 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%ery e'tent
possible, be a%oided, and all serio)s efforts, not only by labor and (ana#e(ent b)t #o%ern(ent as well, be
e'ha)sted to s)bstantially (ini(i;e, if not pre%ent, their ad%erse effects on s)ch life and health, thro)#h the
e'ercise, howe%er le#iti(ate, by labor of its ri#ht to strike and by (ana#e(ent to locko)t. 7n labor disp)tes
ad%ersely affectin# the contin)ed operation of s)ch hospitals, clinics or (edical instit)tions, it shall be the
d)ty of the strikin# )nion or lockin#-o)t e(ployer 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 necessary to ins)re the proper and ade<)ate protection of the life and health of its patients, (ost
especially e(er#ency cases, for the d)ration of the strike or locko)t. 7n s)ch cases, therefore, the &ecretary
of Labor and 5(ploy(ent (ay i((ediately ass)(e, within twenty fo)r A"= ho)rs fro( knowled#e of the
occ)rrence of s)ch a strike or locko)t, 4)risdiction o%er the sa(e or certify it to the Co((ission for
co(p)lsory arbitration. 2or this p)rpose, the contendin# parties are strictly en4oined to co(ply with s)ch
orders, prohibitions andBor in4)nctions as are iss)ed by the &ecretary of Labor and 5(ploy(ent or the
Co((ission, )nder pain of i((ediate disciplinary action, incl)din# dis(issal or loss of e(ploy(ent stat)s or
pay(ent by the lockin#-o)t e(ployer 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 any ti(e and
ass)(in# 4)risdiction o%er any s)ch labor disp)te in order to settle or ter(inate the sa(e.
h. 0efore or at any sta#e of the co(p)lsory arbitration process, the parties (ay opt to s)b(it their disp)te to
%ol)ntary arbitration.
i. The &ecretary of Labor and 5(ploy(ent, the Co((ission or the %ol)ntary arbitrator shall decide or resol%e
the disp)te, as the case (ay be. The decision of the President, the &ecretary of Labor and 5(ploy(ent, the
Co((ission or the %ol)ntary arbitrator shall be final and e'ec)tory ten A1>= calendar days after receipt
thereof by the parties. AAs a(ended by &ection "7, *ep)blic Act $o. +71,, March "1, 19E9=
\\ri#ht to en#a#e in lawf)l concerted acti%itiesC
-constit)tional ri#ht of a labor or#ani;ation
-a%ailable to a le#iti(ate labor or#ani;ation which has not been certified or reco#ni;ed bar#ainin# )nion on
#ro)nd of :LP
\\if a certified or reco#ni;ed bar#ainin# )nion, (ay strike on #ro)nds ofC
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1. :LP
". 0ar#ainin# deadlock
25. 0"!ms ". %"n%e!/ed a%/,#,/,es
O& !" %(r of !" EMPLOYEES-
1. &trike
-any te(porary stoppa#e of work by the concerted action of the e(ployees as a res)lt of an
ind)strial or labor disp)te. 7t consists not only of concerted work stoppa#es b)t also slowdowns, (ass
lea%es, sitdowns, atte(pts to da(a#e, destroy or sabota#e plant e<)ip(ent and facilities and si(ilar
acti%ities.
". Picketin#
-or P%"($"f,* %#$/"#&.Q is the ri#ht of workers to peacef)lly (arch to and fro before an
establish(ent in%ol%ed in a labor disp)te #enerally acco(panied by the carryin# and display of si#ns,
placards and banners intended to infor( the p)blic abo)t the disp)te.
6. 0oycott
-the concerted ref)sal to patroni;e an e(ployer8s #oods or ser%ices and to pers)ade other to a like
ref)sal.
O& !" %(r of !" EMPLOYER-
1. Locko)t
-any te(porary ref)sal of an e(ployer to f)rnish work as a res)lt of an ind)strial or labor disp)te.
3hat is an ind)strial or labor disp)teT
An industrial or labor disute incl)des any contro%ersy or (atter concernin# ter(s and conditions of
e(ploy(ent or the association or representation of persons in ne#otiatin#, fi'in# (aintainin#, chan#in# or
arran#in# the ter(s and conditions of e(ploy(ent, r".(r+*"'' of )!"!"r !" +#'%,(&' '(&+ #& !" %ro9#m("
r"*(#o& of "m%*o0"r (&+ "m%*o0"".
26. S/!,=e and 1"%="2/: %"ns/,/2/,"na1 and s/a/2/"!y bas,s
*i#ht to &trike and Locko)t
The ri#ht to strike is a constit)tional and le#al ri#ht of the workers as e(ployers ha%e the ri#ht to locko)t, all
within the conte't of labor relations and collecti%e bar#ainin#. &)b4ect to the enact(ent by Con#ress of a(end(ents
or a new law on labor relations, the pro%isions of e'istin# laws shall #o%ern the e'ercise of those ri#hts.
C"ns/,/2/,"na1 Bas,s
&ection 6, Article D777, 19E7 Constit)tion
Se%/,"n >. The &tate shall afford f)ll protection to labor, local and o%erseas, or#ani;ed and
)nor#ani;ed, and pro(ote f)ll e(ploy(ent and e<)ality of e(ploy(ent opport)nities for all.
7t shall #)arantee the ri#hts of all workers to self-or#ani;ation, collecti%e bar#ainin# and
ne#otiations, and peacef)l concerted acti%ities, incl)din# the ri#ht to strike in accordance with law. They
shall be entitled to sec)rity of ten)re, h)(ane conditions of work, and a li%in# wa#e. They shall also
participate in policy and decision-(akin# processes affectin# their ri#hts and benefits as (ay be pro%ided by
law.
The &tate shall pro(ote the principle of shared responsibility between workers and e(ployers and
the preferential )se of %ol)ntary (odes in settlin# disp)tes, incl)din# conciliation, and shall enforce their
()t)al co(pliance therewith to foster ind)strial peace.
The &tate shall re#)late the relations between workers and e(ployers, reco#ni;in# the ri#ht of
labor to its 4)st share in the fr)its of prod)ction and the ri#ht of enterprises to reasonable ret)rns to
in%est(ents, and to e'pansion and #rowth.
S/a/2/"!y Bas,s
&ee Article "+6, Labor Code of the Philippines APD "=
27. D,nds and 0"!ms ". S/!,=e
1. A& T1 5DT5$T
a. F5$5*AL &T*7I5 ! e'tends o%er a whole co(()nity, pro%ince, state or co)ntry.
b. L1CAL 1* PA*T7C:LA* &T*7I5 ! one )ndertaken by workers in a partic)lar enterprise, locality,
or occ)pation.
". A& T1 T.5 $AT:*5 12 T.5 ACT
c. &T*7I5 P*1P5*
d. &7T-D13$ &T*7I5 ! when a #ro)p of e(ployees or others interested in obtainin# a certain
ob4ecti%e in a partic)lar b)siness establish the(sel%es within the plant, stop its prod)ction and
ref)se access to the owners or to others desirin# to work.
e. PA*T7AL 1* H:7CI75 &T*7I5 ! inter(ittent, )nanno)nced work stoppa#e, incl)din# slowdowns,
)na)thori;ed e'tension of rest periods, and walko)ts for portions of a shift or for entire shifts.

6. A& T1 T.5 D5F*55 12 5MPL1@55 7$T5*5&T
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f. P*7MA*@ &T*7I5 ! one declared by the e(ployees who ha%e a direct and i((ediate interest,
whether econo(ic or otherwise, in the s)b4ect of the disp)te which e'ists between the( and the
e(ployer.
#. &5C1$DA*@ &T*7I5 ! a coerci%e (eas)re adopted by workers a#ainst an e(ployer connected
by prod)ct or e(ploy(ent with alle#ed )nfair labor conditions or practices.
h. &@MPAT.5T7C &T*7I5 ! one in which the strikin# e(ployees ha%e no de(ands or #rie%ances of
their own, b)t strike for the p)rpose of directly or indirectly aidin# others, witho)t direct relation to
the ad%ance(ent of the interest of the strikers.
. A& T1 $AT:*5 1* P:*P1&5 12 5MPL1@55 7$T5*5&T
i. 5C1$1M7C &T*7I5 ! intended to force wa#e and other concessions fro( the e(ployer which he
is not re<)ired by law to #rant.
4. :LP &T*7I5 ! called a#ainst the )nfair labor practice of the e(ployer.
2). Ca/e-"!,es ". I11e-a1 S/,=e
1. /iolation of a le#al prohibition
-it is ille#al for #o%ern(ent e(ployees to sta#e a strike.
". $on-obser%ance of proced)ral re<)ire(ents
-proced)ral re<)isites that ()st be obser%ed areC filin# of notice of strike, obser%ance of coolin#-off period,
takin# of strike %ote, and obser%ance of the se%en-day strike-%ote report period.
6. &trike based on non-strikeable #ro)nds
-the Labor Code reco#ni;es only " strikeable #ro)ndsC collecti%e bar#ainin# deadlock and )nfair labor
practice.
. The (eans e(ployed are ille#al.
-)se of threats, coercion or %iolence are ille#al.
-e%en if the p)rpose of a strike is %alid, the strike (ay still be held in%alid where the (eans e(ployed are
ille#al.
-howe%er, where %iolence was co((itted on both sides d)rin# a strike, s)ch %iolence cannot be a #ro)nd
for declarin# the strike as ille#al.
,. &trike after ass)(ption of 4)risdiction by the President or the &ecretary of Labor or after certification or
s)b(ission of the disp)te to co(p)lsory or %ol)ntary arbitration.
+. /iolation of the a#ree(ent of the parties or the no strike B no locko)t cla)se in the C0A.
2(. *C$B $A*5AL +0 PR+CED5RE 0+R C+*CILIATI+* A*D PRE:E*TI:E $EDIATI+* A&ee Anne'=
>4. S/!,=e
Any te(porary stoppa#e of work by the concerted action of e(ployees as a res)lt of an ind)strial or labor disp)te.
>1. *"/,%e ". S/,=e
$otification filed by a d)ly re#istered labor )nion with the appropriate $CM0 re#ional branch infor(in# the latter of its
intention to #o on strike beca)se of alle#ed co((ission by the e(ployer of :LP actBs or beca)se of deadlock in
collecti%e bar#ainin# ne#otiations.
>2. S/!,=e A!ea
The establish(ent, wareho)ses, depots, plants or office, incl)din# the sites or pre(ises )sed as r)n-away shops of
the e(ployer str)ck a#ainst, as well as the %icinity act)ally )sed by picketin# strikers in (o%in# to and fro before all
points of entrance to an e'it of said establish(ent.
>>. W&e!e /" 0,1e
*e#ional branch of the $CM0 ha%in# 4)risdiction o%er the workplace of the )nion (e(bers.
>4. W&" $ay 0,1e
a. any certified or d)ly reco#ni;ed bar#ainin# representati%e.
b. 7f there is none, any le#iti(ate labor or#ani;ation Afor :LP only=
>5. ;!"2nds 0"! S/!,=eand L"%=?"2/
c. 0ar#ainin# deadlocksJ
d. :LPJ
e. 2la#rant ?Bor (alicio)s ref)sal to co(ply with the econo(ic pro%isions of the collecti%e bar#ainin#
a#ree(ent.
>6. :a1,d,/y ". <*" S/!,=e< C1a2se
A no strike B no locko)t cla)se in the C0A is :ALID beca)se parties (ay freely stip)late as lon# as s)ch stip)lation is
not contrary to law, (orals and p)blic policy. 7t is applicable only to e%"n"m,% s/!,=es. 7f the strike is fo)nded on a
:LP of the e(ployer, a strike declared by the )nion cannot be considered a %iolation of the no strike cla)se.

>7. S/!,=eab1e Iss2es
a. bar#ainin# deadlock
b. )nfair labor practice
>). *"n?S/!,=eab1e Iss2es
a. 7ntra-)nion disp)tes
b. 7nter-)nion disp)tes
c. 7ss)es s)b(itted to arbitration
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d. Political pro%isions of the C0A
e. 3a#e distortion
f. 7nterpretation and i(ple(entation of the pro%isions of the C0A
\ in the absence of strikeable iss)es, the labor disp)te is con%erted into a Pre%enti%e Mediation Case.
>(. 0"!m *"/,%e ". S/!,=e and C"n/ens
3ritten notification filed by a d)ly re#istered labor )nion with the appropriate $CM0 re#ional branch infor(in# the
latter of its intention to #o on strike beca)se of alle#ed co((ission by the e(ployer of :LP actBs or beca)se of
deadlock in collecti%e bar#ainin# ne#otiations. Copy f)rnished the e(ployer or the )nion as the case (ay be.
C"n/en/s !
a. The na(es and addresses of the e(ployer and the )nion in%ol%edJ
b. The nat)re of the ind)stry to which the e(ployer belon#sJ
c. The n)(ber of )nion (e(bers in the bar#ainin# )nitJ
d. The n)(ber of workers in the bar#ainin# )nitJ
e. &)ch other rele%ant data as (ay facilitate the settle(ent of the disp)teJ
f. The )nresol%ed iss)es in the bar#ainin# ne#otiations acco(panied by the written proposals of the )nion, the
co)nter-proposals of the e(ployer and proof of a re<)est for conference to settle the differences Acollecti%e
bar#ainin# deadlock=J
#. Acts co(plained of and the efforts taken to resol%e the disp)te a(icably A:LP=J
A&ec.E, *)le DD77, 0ook /, 7(ple(entin# *)les, as a(ended by D.1. >->6=
44. P!"&,b,/ed A%/,#,/,es
A!/. 264' Lab"! C"de
a.= 1n the part of both the 5(ployer ? 5(ployee !
1. Declarin# a strike or locko)tC
1 witho)t first ha%in# bar#ained collecti%ely, 1*
" witho)t first filin# the re<)ired notice, 1*
6 witho)t first obtainin# ? reportin# the necessary strike or locko)t %ote.
". Declarin# a strike or locko)tC
1 after ass)(ption of 4)risdiction by the President or the &ecretary, 1*
" after certification or s)b(ission of the disp)te to co(p)lsory or %ol)ntary arbitration, 1*
6 d)rin# the pendency of cases in%ol%in# the sa(e #ro)nds for the strikeBlocko)t.

b.= 1n the part of the e(ployer !

1. 1bstr)ctin#, i(pedin# or interferin# with by force, %iolence, coercion, threats
or inti(idation any peacef)l picketin# by e(ployees d)rin# any labor
contro%ersy or in the e'ercise of their ri#hts to self-or#ani;ation or collecti%e
bar#ainin#, or aidin# or abettin# s)ch obstr)ction or interferenceJ
". 5(ployin# any strike breakerJ
c= 1n the part of the e(ployees !
1. &tationary picket and the )se of (eans like placin# of ob4ects to constit)te per(anent blockade or to
effecti%ely close points of entry or e'it in co(pany pre(isesJ
". Any act of %iolence, coercion or inti(idation by any picksterJ
6. 1bstr)ction of the free in#ress or e#ress fro( the e(ployer8s pre(ises for
lawf)l p)rposesJ
. 1bstr)ction of p)blic thoro)#hfares while en#a#ed in picketin#J
41. Ass2m/,"n ". 82!,sd,%/,"n by /&e S+LE
A!/. 26>. STRIDES' PICDETI*;' A*D L+CD+5TS
#= 3hen, in his opinion, there e'ists a labor disp)te ca)sin# or likely to ca)se a strike or locko)t in an ind)stry
indispensable to the national interest, the &1L5 (ay ass)(e 4)risdiction o%er the disp)te and decide it 1* certify the
sa(e to the $L*C for co(p)lsory arbitration. &)ch ass)(ption of 4)risdiction shall ha%e the effect of a)to(atically
en4oinin# the intended or i(pendin# strikeBlocko)t. 7f one has already taken place at the ti(e of ass)(ption or
certification, all strikin# or locked o)t e(ployees shall i((ediately ret)rn to work and the e(ployer shall i((ediately
res)(e operations and read(it all workers )nder the sa(e ter(s and conditions pre%ailin# before the strike or
locko)t. '''

42. Im!"#ed +..e! Ba11"/,n-
A!/. 265- 7n an effort to settle a strike, the D1L5 shall cond)ct a referend)( by secret ballotin# on the i(pro%ed
offer of the e(ployer Ared)ced offer of the )nion in case of a locko)t= on or before the 6>
th
day of the strike. 3hen at
least a (a4ority of the )nion (e(bers Aor if locko)tC board of directorsBtr)steesBpartners holdin# the controllin#
interest in case of a partnership %ote to accept the red)ced offer=, %ote to accept the i(pro%ed offer, the strikin# Aor
locked o)t= workers shall i((ediately ret)rn to work and the e(ployer shall read(it the( )pon the si#nin# of the
a#ree(ent.
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- this is a de%ice to shorten, if not a%ert, a strike. 7t opens a #racef)l e'it to break a stale(ate.
4>. C"nseB2en%es ". Le-a1 and I11e-a1 S/!,=e
a.= 2or :nion Me(bersC

-Mere participation in a lawf)l strike does $1T constit)te s)fficient #ro)nd for
ter(ination of e(ploy(ent. 5%en participation in a strike which t)rned o)t to be
ille#al does not necessarily res)lt in loss of 4ob.
- 0)t anyone who co((its an ille#al act Ae.#., destr)ction of property= d)rin# a
strike (ay be dis(issed fro( e(ploy(ent, re#ardless of whether the strike itself
is le#al or not.
b.= 2or :nion 1fficersC
- Any )nion officer who knowin#ly participates in an ille#al strike or in the co((ission of ille#al acts d)rin# a
strike, e%en if it is le#al, (ay be declared to ha%e lost his e(ploy(ent stat)s. This is beca)se the responsibility of
)nion officers is #reater than that of the (e(bers.
44. A!!es/ and de/en/,"n ". 2n,"n membe!s
A!/. 266. REL5IRE$E*T 0+R ARREST A*D DETE*TI+*.- 5'cept on #ro)nds of national sec)rity and p)blic
peace, or in case of co((ission of a cri(e, $1 )nion (e(bers or )nion or#ani;ers (ay be arrested or detained for
)nion acti%ities witho)t pre%io)s cons)ltation with the &1L5.
45. Le-a1 Remed,es ". Em1"ye! Q 5n,"n ,n %ase ". S/!,=eCL"%="2/
- the parties (ay resort to pre%enti%e (ediation or alternati%e (odes of disp)te resol)tion incl)din# %ol)ntary
arbitration.
- The re#ional branch of the $CM0 shall e'ert all efforts at (ediation and conciliation to enable the parties to settle
a(icably. The re#ional branch of the board (ay, )pon a#ree(ent of the parties, treat a notice as a pre%enti%e
(ediation case. 7t shall also enco)ra#e the parties to s)b(it the disp)te to %ol)ntary arbitration. A&ec. 9, 0ook /,
*)le DD77, 7(ple(entin# *)les, as a(ended by D.1. >->6=
- At any sta#e of a co(p)lsory arbitration process, the parties (ay opt to s)b(it their disp)te to %ol)ntary arbitration.
AArt. "+6 WhX, Art. "11WaX, Art."+".=
\ P!e#en/,#e $ed,a/,"n Case- refers to the potential labor disp)tes which are the s)b4ect of a for(al or infor(al
re<)est for conciliation and (ediation assistance so)#ht by either or both parties or )pon the initiati%e of the $CM0 to
a%oid the occ)rrence of act)al labor disp)tes.
\ Lab"! d,s2/e incl)des any contro%ersy or (atter concernin# ter(s or conditions of e(ploy(ent or the association
or representation of persons in ne#otiatin# the fi'in#, (aintainin#, chan#in# or arran#in# the ter(s and conditions of
e(ploy(ent, re#ardless of whether or not the disp)tants stand in the pro'i(ate relationship of e(ployer and
e(ployee. AArt. "1" WlX=
\ 82!,sd,%/,"n Q !"%ed2!e be."!e /&e Lab"! A!b,/e! Q /&e Se%!e/a!y ". Lab"!
- The &1L5, the $L*C ALA= or the %ol)ntary arbitrator shall decide or resol%e the disp)te within 6> calendar days
fro( the ass)(ption of 4)risdiction or the certification or s)b(ission of the disp)te, as the case (ay be. The decision
of the President, the &1L5, the Co((ission or the /ol)ntary Arbitrator shall be final and e'ec)tory 1> calendar days
after receipt thereof by the parties. AArt. "+6 WiX=
- the &1L58s 4)risdiction o%er national interest labor disp)tes e'tends to all <)estions arisin# fro( that disp)te.
.owe%er, e'cepted fro( this r)le is the sit)ation where in their C0A, the parties cate#orically a#reed that disp)tes
between the( shall be referred to the #rie%ance (achinery which ends in %ol)ntary arbitration. AU&#8"r'#0 of S(&
A.,'#&, M(r. :?, :CC=7

46. Inn"%en/ By?S/ande! R21e
- while peacef)l picketin# is entitled to protection as an e'ercise of free speech, the co)rts are e(powered to
confine or locali;e the sphere of co(()nication or the de(onstration to the parties to the labor disp)te. The co)rt
(ay ins)late establish(ents or persons with no ind)strial connection or ha%in# interest totally forei#n to the conte't of
the disp)te. Th)s, the ri#ht (ay be re#)lated at the instance of third persons or Pinnocent by-standers.Q
- accordin# to Mar<)e;, third parties cannot be disr)pted by a labor disp)te and they ha%e a ri#ht to file for in4)nction.
47. An/,?,n32n%/,"n ban

;ene!a1 R21e: $o te(porary or per(anent in4)nction or restrainin# order in any case in%ol%in# or #rowin# o)t of
labor disp)tes shall be iss)ed by any co)rt or other entity.
- this is to protect the freedo( of labor and (ana#e(ent to bar#ain and settle disp)tes in the workplace on their own
accord.
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EK%e/,"ns:
1.= Article "+ ! co((ission of the prohibited acti%ities
".= Article "1E ! pls. see Art. "1E Ae=
6.= nat8l. interest cases
- strikesBlocko)ts in%ol%in# ind)stries indispensable to national interestJ ass)(ption of &1L5 or certification to the
$L*C has the effect of a)to(atically en4oinin# the strikeBlocko)t.
2>. 5*0AIR LAB+R PRACTICE
REL5ISITES
E1emen/s
2irst C There is e(ployer-e(ployee relationship between the offender and the
offended
&econdC The act done is e'pressly defined in the Code as an act of )nfair labor practice
C"nd,/,"ns:
2irst C The in4)red party co(es within the definition of e(ployee as that ter( is defined by
the Code
&econdC The act char#ed as :LP ()st fall )nder the prohibitions of Art. "E Aacts of the e(ployer= or "9 Aacts of
the )nion=
ACTS +0 5LP
A!/. 24). 5n.a,! Lab"! P!a%/,%es ". Em1"ye!s
7t shall be )nlawf)l for an e(ployer to co((it any of the followin# )nfair labor practicesC
Aa= To interfere with, restrain or coerce e(ployees in the e'ercise of their ri#ht to self-or#ani;ationJ
Ab= To re<)ire as a condition of e(ploy(ent that a person or an e(ployee shall not 4oin a labor
or#ani;ation or shall withdraw fro( one to which he belon#s.
Ac= To contract o)r ser%ices or f)nctions bein# perfor(ed by )nion (e(bers when s)ch will interfere
with, restrain or coerce e(ployees in the e'ercise of their ri#ht to self-or#ani;ationJ
Ad= To initiate, do(inate, assist or otherwise interfere with the for(ation or ad(inistration of any labor
or#ani;ation, incl)din# the #i%in# of financial or other s)pport to it or its or#ani;ers or s)pportersJ
Ae= To discri(inate in re#ard to wa#ers, ho)rs of work, and other ter(s and conditions of e(ploy(ent
in order to enco)ra#e or disco)ra#e (e(bership in any labor or#ani;ation. $othin# in this Code or
in any 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 of e(ploy(ent, e'cept those e(ployees who are already (e(bers
of another )nion at the ti(e of the si#nin# of the collecti%e bar#ainin# a#ree(ent. 5(ployees of an
appropriate collecti%e bar#ainin# )nit who are not (e(bers of the reco#ni;ed collecti%e bar#ainin#
a#ent (ay be assessed a reasonable fee e<)i%alent to the d)es and other fees paid by (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 a#ree(ent. Pro8#+"+, That the indi%id)al a)thori;ation re<)ired )nder Article "",
para#raph Ao= of this Code shall not apply to the non(e(bers of the reco#ni;ed collecti%e
bar#ainin# a#entJ
Af= To dis(iss, dischar#e, or otherwise pre4)dice or discri(inate a#ainst an e(ployee for ha%in# #i%en
or bein# abo)t to #i%e testi(ony )nder this CodeJ
A#= To %iolate the d)ty to bar#ain collecti%ely as prescribed by this CodeJ
Ah= To pay ne#otiation or attorney8s fees to the )nion or its officers or a#ents as part of the settle(ent
of any iss)e in collecti%e bar#ainin# or any other disp)teJ or
Ai= To %iolate a collecti%e bar#ainin# a#ree(ent.
The pro%isions of the precedin# para#raph notwithstandin#, only the officers and a#ents of corporations,
associations or partnerships who ha%e act)ally participated in, a)thori;ed or ratified )nfair labor practices shall be held
cri(inally liable.
A!/. 24( 5n.a,! Lab"! P!a%/,%es ". Lab"! +!-an,@a/,"ns
7t shall be )nfair labor practice for a labor or#ani;ation, its officers, a#ents or representati%esC
Aa= To restrain or coerce e(ployees in the e'ercise of their ri#ht to self-or#ani;ation. .owe%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(bershipJ
Ab= To ca)se or atte(pt to ca)se an e(ployer to discri(inate a#ainst an e(ployee, incl)din# discri(ination
a#ainst an e(ployee with respect to who( (e(bership in s)ch or#ani;ation has been denied or to
ter(inate an e(ployee on any #ro)nd other than the )s)al ter(s and conditions )nder (e(bership or
contin)ation of (e(bership is (ade a%ailable to other (e(bersJ
Ac= To %iolate the d)ty, or ref)se to bar#ain collecti%ely with the e(ployer, pro%ided it is the representati%e
of the e(ployeesJ
Ad= To ca)se or atte(pt to ca)se an e(ployer to pay or deli%er or a#ree to pay or deli%er any (oney or
other thin#s of %al)e, in the nat)re of the e'action, for ser%ices which are not perfor(ed or not to be
perfor(ed, incl)din# the de(and for fee for )nion ne#otiationsJ
Ae= To ask for or accept ne#otiations or attorney8s fees fro( e(ployers as part of the settle(ent of any
iss)e in collecti%e bar#ainin# or any other disp)teJ or
Af= To %iolate a collecti%e bar#ainin# a#ree(ent
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The pro%isions of the precedin# para#raph notwithstandin#, only the officers, (e(bers of #o%ernin# board,
representati%es or a#ents or (e(bers of labor associations or or#ani;ations who ha%e act)ally participated in,
a)thori;ed or ratified )nfair labor practices shall be held cri(inally liable.
TER$S
S2!.a%e Ba!-a,n,n- - an e(ployer8s proposal which co)ld not be offered with any reasonable e'pectation that they
wo)ld be accepted by the )nion
B12e S=y Ba!-a,n,n- - an )nrealistic and )nreasonable de(ands in ne#otiations by either or both labor and
(ana#e(ent, where neither concedes anythin# and de(and the i(possible. 7t act)ally is not collecti%e bar#ainin# at all.
0ea/&e!bedd,n- - na(e #i%en to e(ployee practices which create or spread e(ploy(ent by P)nnecessarilyQ (aintainin#
or increasin# the n)(ber of e(ployees )sed, or the a(o)nt of ti(e cons)(ed, to work on a partic)lar 4ob.
Ae11"w D"- C"n/!a%/ - is a pro(ise e'acted fro( workers as a condition of e(ploy(ent that they are not to belon# to,
or atte(pt to foster, a )nion d)rin# their period of e(ploy(ent.
R2n?away S&" - an ind)strial plant (o%ed by its owners fro( one location to another to escape )nion labor re#)lations
or state laws. 0)t the ter( is also )sed to describe a plant re(o%ed to a new location in order to discri(inate a#ainst
e(ployees at the old plant beca)se of their )nion acti%ities.
PRESCRIPTI:E PERI+D
A!/. 2(4. +..enses
1ffenses prescribed )nder this Code and the r)les and re#)lations iss)ed p)rs)ant thereto shall prescribe in
three A6= years.

A** ,&f(#r *(1or %r($#$"' (r#'#&. from Boo/ V '!(** 1" f#*"+ )#! !" (%%ro%r#(" (."&$0 )#!#& o&" 6G7 0"(r from
($$r,(* of ',$! ,&f(#r *(1or %r($#$"B o!"r)#'", !"0 '!(** for"8"r 1" 1(rr"+.
PE*AL PR+:ISI+*
A!/. 2)) Pena1/,es
5'cept as otherwise pro%ided in this Code, or )nless the acts co(plained of hin#es on a <)estion of interpretation
or i(ple(entation of a(bi#)o)s pro%isions of an e'istin# collecti%e bar#ainin# a#ree(ent, any %iolation of this pro%ision of
this Code declared to be )nlawf)l or penal in nat)re shall be p)nished with a fine of not less than 1ne Tho)sand Pesos
A1,>>>.>>= nor (ore than Ten Tho)sand Pesos A1>,>>>.>>=, or i(prison(ent of not less than three (onths nor (ore than
three years, or both s)ch fine and i(prison(ent at the discretion of the co)rt.
7n addition to s)ch penalty, any alien fo)nd #)ilty shall be s)((arily deported )pon co(pletion of ser%ice of
sentence.
Any pro%ision of law to the contrary notwithstandin# any cri(inal offense p)nished in this Code shall be )nder the
conc)rrent 4)risdiction of the M)nicipal or City Co)rts and the Co)rts of 2irst 7nstance.
85RISDICTI+*
A!/. 217. 82!,sd,%/,"n ". Lab"! A!b,/e!s and /&e C"mm,ss,"n
Aa= 5'cept as otherwise pro%ided )nder this Code the Labor Arbiters shall ha%e ori#inal and e'cl)si%e
rates of pay, ho)rs of work and other ter(s and conditions or e(ploy(entJ
. Clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es arisin# fro( the e(ployer-
e(ployee relationsJ
,. Cases arisin# fro( any %iolation of Article "+ of this Code, incl)din# <)estions in%ol%in# the
le#ality of strikes and locko)tsJ
+. 5'cept clai(s for 5(ployees Co(pensation, &ocial &ec)rity, Medicare and (aternity benefits, all
other clai(s, arisin# fro( e(ployer-e(ployee relations, incl)din# those of persons in do(estic or
ho)sehold ser%ice, in%ol%in# an a(o)nt e'ceedin# fi%e tho)sand pesos A,,>>>= re#ardless of
whether acco(panied with a clai( for reinstate(ent.
Ab= The Co((ission shall ha%e e'cl)si%e appellate 4)risdiction o%er all cases decided by the Labor
Arbiters.
Ac= Cases arisin# fro( the interpretation of collecti%e bar#ainin# a#ree(ents and those arisin# fro( the
interpretation or enforce(ent of co(pany personnel policies shall be disposed of the Labor Arbiter by
referrin# the sa(e to the #rie%ance (achinery and %ol)ntary arbitration as (ay be pro%ided in said
a#ree(ents.
PR+CED5RE
A!/. 247. C"n%e/ ". 2n.a,! 1ab"! !a%/,%e and !"%ed2!e ."! !"se%2/,"n /&e!e".
:nfair labor practices %iolate the constit)tional ri#ht and workers and e(ployees 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%ely 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
healthy and stable labor-(ana#e(ent relations.
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Conse<)ently, )nfair labor practices are not only %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)b4ect to prosec)tion and p)nish(ent as herein pro%ided.
&)b4ect to the e'ercise by the President or by the &ecretary of Labor 5(ploy(ent of the powers %ested in the(
by Articles "+6 and "+ of this Code, the ci%il aspects of all cases in%ol%in# )nfair labor practices, which (ay incl)de
clai(s for act)al, (oral, e'e(plary and other for(s of da(a#es, attorney8s fees and other affir(ati%e relief, shall be )nder
the 4)risdiction of the Labor Arbiters. The Labor Arbiters shall #i%e )t(ost priority to the hearin# and resol)tion of all cases
in%ol%in# )nfair labor practices. They shall resol%e s)ch cases within thirty A6>= calendar days fro( the ti(e they are
s)b(itted for decision.
*eco%ery of ci%il liability in the ad(inistrati%e proceedin#s shall bar reco%ery )nder the Ci%il Code.
$o cri(inal prosec)tion )nder this Title (ay be instit)ted witho)t a final 4)d#(ent, findin# that an )nfair labor
practice was co((itted, ha%in# been first obtained in the precedin# para#raph. D)rin# the pendency of s)ch ad(inistrati%e
proceedin#s, the r)nnin# of the period of prescription of the cri(inal offense herein penali;ed shall be considered
interr)ptedC Pro8#+"+, !o)"8"r, That the final 4)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 (erely as proof of co(pliance of the re<)ire(ents herein set forth.
RELIE0 A;AI*ST 5LP
1. Cease and Des,s/ +!de!
7f the Co)rt after in%esti#ation finds that the person na(ed in the co(plaint has en#a#ed or is en#a#in# in any )nfair
labor practice, the Co)rt shall state its findin# of fact and shall iss)e or ca)se to be ser%ed )pon s)ch person an order
re<)irin# hi( to cease and desist fro( s)ch )nfair labor practice.
2. A..,!ma/,#e +!de!
The Co)rt does not only ha%e the power to iss)e ne#ati%e or prohibiti%e orders b)t also affir(ati%e or positi%e orders.
The Co)rt in addition to a cease and desist order (ay iss)e an affir(ati%e order to the respondent to reinstate the said
e(ployee with back pay fro( the date of the discri(ination.
>. +!de! /" Ba!-a,nE $anda/ed CBA
3hen an e(ployee has failed or ref)sed to bar#ain with the proper bar#ainin# a#ent of his e(ployees, the Co)rt (ay,
in addition to the )s)al cease and desist orders, iss)e an affir(ati%e order to co(pel the respondent to Pbar#ainQ with
the bar#ainin# a#ent.
4. D,ses/ab1,s&men/
3here the e(ployer had initiated, do(inated or assisted in or interfered with the for(ation or establish(ent of any
labor or#ani;ation or contrib)ted financial or other s)pport to it, the Co)rt (ay iss)e, in addition to a cease and desist
order, an order directin# the e(ployer to withdraw all reco#nition fro( the do(inated labor )nion and to disestablish
the sa(e.
24. +THER I$P+RTA*T LAB+R PR+:ISI+*S
A. C+*TRACTI*; ARRA*;E$E*T
A!/. 146. C"n/!a%/"! "! s2b%"n/!a%/"!. 3hene%er an e(ployer enters into a contract with another person for the
perfor(ance of the for(er8s work, the e(ployees of the contractor and of the latter8s s)bcontractor, if any, shall be
paid in accordance with the pro%isions of this Code.
7n the e%ent that the contractor or s)bcontractor fails to pay the wa#es of his e(ployees in accordance with this
Code, the e(ployer shall be 4ointly and se%erally liable with his contractor or s)bcontractor to s)ch e(ployees to the
e'tent of the work perfor(ed )nder the contract, in the sa(e (anner and e'tent that he is liable to e(ployees
directly e(ployed by hi(.
The &ecretary of Labor and 5(ploy(ent (ay, by appropriate re#)lations, restrict or prohibit the contractin#-o)t of
labor to protect the ri#hts of workers established )nder this Code. 7n so prohibitin# or restrictin#, he (ay (ake
appropriate distinctions between labor-only contractin# and 4ob contractin# as well as differentiations within these
types of contractin# and deter(ine who a(on# the parties in%ol%ed shall be considered the e(ployer for p)rposes of
this Code, to pre%ent any %iolation or circ)(%ention of any pro%ision of this Code.
There is Mlabor-onlyM contractin# where the person s)pplyin# workers to an e(ployer 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 by s)ch person are perfor(in# acti%ities which are directly related to the principal b)siness of
s)ch e(ployer. 7n s)ch cases, the person or inter(ediary shall be considered (erely as an a#ent of the e(ployer
who shall be responsible to the workers in the sa(e (anner and e'tent as if the latter were directly e(ployed by hi(.
A!/. 147. Ind,!e%/ em1"ye!. The pro%isions of the i((ediately precedin# article shall likewise apply to any person,
partnership, association or corporation which, not bein# an e(ployer, contracts with an independent contractor for the
perfor(ance of any work, task, 4ob or pro4ect.
A!/. 14). P"s/,n- ". b"nd. An e(ployer or indirect e(ployer (ay 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(ployees sho)ld the contractor or s)bcontractor, as the case (ay be, fail to pay the sa(e.
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A!/. 14(. S"1,da!y 1,ab,1,/y. The pro%isions of e'istin# laws to the contrary notwithstandin#, e%ery e(ployer or indirect
e(ployer shall be held responsible with his contractor or s)bcontractor for any %iolation of any pro%ision of this Code.
2or p)rposes of deter(inin# the e'tent of their ci%il liability )nder this Chapter, they shall be considered as direct
e(ployers.
??8"b %"n/!a%/,n- #s G1ab"!?"n1y %"n/!a%/,n-
8+B C+*TRACTI*;
There is contractin# or s)bcontractin# when an e(ployer, referred to as the principal, far(s o)t the
perfor(ance of a part of its b)siness to another, referred to as the contractor or s)bcontractor. 2or
the p)rpose of )ndertakin# the principalOs b)siness that is far(ed o)t, the contractor or
s)bcontractor then e(ploysits own e(ployees.

Contractin# and s)bcontractin# are synony(o)s )nder Philippine labor law. The ter( that is (ore
co((only )sed is s)bcontractin#.
7n s)bcontractin#, there are /&!ee a!/,es in%ol%edC
a. The !,n%,a1 which decides to far( o)t a 4ob or ser%ice to a s)bcontractorJ
b. The s2b%"n/!a%/"! which has the capacity to independently )ndertake the
perfor(ance of the 4ob or ser%iceJ and
c. The em1"yees en#a#ed by the s)bcontractor to acco(plish the 4ob or
ser%ice.
7n s)bcontractin#, the fo)r-fold test of e(ployer-e(ployee relationship sho)ld be satisfied by the
s)bcontractor in relation to the e(ployees it en#a#es to acco(plish the s)bcontracted 4ob or
ser%ice. 7n s)ch cases, the s)bcontractor is also referred to as independent contractor.
7f the fo)r-fold test is satisfied not by the s)bcontractor b)t by the principal, the principal then
beco(es the e(ployer of the e(ployees en#a#ed to acco(plish the 4ob or ser%ice. 3hat e'ists is
not s)bcontractin# b)t a direct e(ployer-e(ployee relationship between the principal and the
e(ployees.
\\The followin# are !eB2,s,/es ". a L5F7T7MAT5 contractin# or s)bcontractin#C
1. The contractor or s)bcontractor carries on a distinct and independent b)siness and )ndertakes to
perfor( the 4ob, work or ser%ice on its own acco)nt and )nder its own responsibilityJ accordin# to
its own (anner and (ethod, and free fro( the control and directions of the principal in all (atters
connected with the perfor(ance of the work, e'cept as to the res)lts thereofJ A$1 55-5* relations
e'ists=
". The contractor or s)bcontractor has s)bstantial capital or in%est(ent.
\\shown byC
Ade<)acy of reso)rces act)ally and directly )sed
May refer to s)bscribed capital stocks for corporations
Tools, e<)ip(ents, i(ple(ents, (achineries, )nifor(s, protecti%e #ear or safety
de%ises
1peratin# costs s)ch as trainin# and o%erhead costs
6. The a#ree(ent between the principal and contractor or s)bcontractor ass)res the contract)al
e(ployees to entitle(ent to all labor and occ)pational safety standards, free e'ercise of the ri#ht to
self-or#ani;ation, sec)rity of ten)re, and social and welfare benefits.
LAB+R?+*LA C+*TRACTI*;
-refers to an arran#e(ent where the contractor or s)bcontractor (erely recr)its, s)pplies or places
workers to perfor( a 4ob, work or ser%ice for a principal, and any of the followin# ele(ents are presentC
Ai= The contractor or s)bcontractor does not ha%e s)bstantial capital or
in%est(ent which relates to the 4ob, work or ser%ice to be perfor(ed and the
e(ployees recr)ited, s)pplied or placed by s)ch contractor or s)bcontractor are
perfor(in# acti%ities which are directly related to the (ain b)siness of the
principalJ or
Aii= the contractor does not e'ercise the ri#ht to control o%er the perfor(ance of
the work of the contract)al e(ployee.
-prohibited practice
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??S%"e and *a/2!e ". L,ab,1,/y ". P!,n%,a1 and C"n/!a%/"!
7n 910 C1$T*ACT7$F Afirst two para#raphsof Article 1>+=
The contractor is the e(ployer directly responsible to the e(ployees
The principal has 1,m,/ed 1,ab,1,/y. &ho)ld the contractor fail to pay the wa#es, the principal is
liable only to the e'tent of the work perfor(ed and only with respect to the pay(ent of wa#es.
the principal is 4ointly and se%erally liable with the s)bcontractor for pay(ent of the e(ployeesO
wa#es to the e'tent of the work perfor(ed )nder the contract.
The principal cannot be acc)sed of ille#al dis(issal insofar as the contract)al e(ployees are
concerned beca)se there is no e(ployee-e(ployer relationship.
7n LA01*-1$L@ C1$T*ACT7$F A6
rd
and
th
para#raphs of Art 1>+.=
The contractor is (erely an a#ent of the e(ployer. The principal and contractor will be solidarily
treated as the e(ployer.
The principal8s liability is %"m!e&ens,#e. The liability pertains not only to )npaid wa#es b)t
e'tends to any and all liability )nder the Labor laws.
The e(ployer is dee(ed to ha%e directly hired the contract)al e(ployees and is therefore liable for
any and all %iolations of the Labor Code.
??D2/,es and "b1,-a/,"ns ". P!,n%,a1 and C"n/!a%/"!
:$D5* A LAB+R?+*LA C1$T*ACT7$F A**A$F5M5$T
The followin# are the effectsC
a. The s2b%"n/!a%/"! will be treated as the a#ent of the principal. &ince the act
of an a#ent is the act of the principal, representations (ade by the s)bcontractor
to the e(ployees will bind the principal.
b. The !,n%,a1 will beco(e the e(ployer as if it directly e(ployed the workers
en#a#ed to )ndertake the s)bcontracted 4ob or ser%ice. 7t will be responsible to
the( for a11 their entitle(ents and benefits )nder the labor laws.
c. The principal and the s)bcontractor will be s"1,da!,1y treated as the e(ployer.
d. The e(ployees will beco(e e(ployees of the principal, s)b4ect to the
classifications of e(ployees )nder Article "E of the Labor Code.
7f the labor-only contractin# acti%ity is )ndertaken by a le#iti(ate labor or#ani;ation, a petition for cancellation of
)nion re#istration (ay be filed a#ainst it, p)rs)ant to Article "69Ae=.
??R,-&/s ". C"n/!a%/2a1 Em1"yees
The contract)al e(ployee shall be entitled to all the ri#hts and pri%ile#es d)e a re#)lar e(ployee
as pro%ided for in the Labor Code, as a(ended, to incl)de the followin#C
Aa= &afe and healthf)l workin# conditionsJ
Ab= Labor standards s)ch as ser%ice incenti%e lea%e, rest days, o%erti(e pay,
holiday pay, 16th (onth pay and separation payJ
Ac= &ocial sec)rity and welfare benefitsJ
Ad= &elf-or#ani;ation, collecti%e bar#ainin# and peacef)l concerted actionJ and
Ae= &ec)rity of ten)re.
The contractor8s e(ployee8s ten)re (ay end when the contract between the principal and
the contractor ends.
??I*DI:ID5AL I*DEPE*DE*T C+*TRACT+R
7ndi%id)als with special skills, e'pertise or talent en4oy the freedo( to offer their ser%ices as independent
contractors. The ri#ht to life and li%elihood #)arantees this freedo( to contract as independent contractors. The ri#ht
of labor to sec)rity of ten)re cannot operate to depri%e an indi%id)al to contract as an independent contractor.
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Are those who e'ercise independent e(ploy(ent, contractin# to do a piece of work accordin# to their own
(ethods and witho)t bein# s)b4ected to the control of their e(ployer e'cept as to the res)lt of their work.
??+mn,b2s R21es' as amended by D+ *". 1)?42' Se!,es ". 2442
*:L5& 7MPL5M5$T7$F A*T7CL5& 1>+ T1 1>9
12 T.5 LA01* C1D5, A& AM5$D5D
0y %irt)e of the power %ested in the &ecretary of Labor and 5(ploy(ent )nder Articles , A*)le-(akin#= and 1>+
AContractor or &)bcontractor= of the Labor Code of the Philippines, as a(ended, the followin# re#)lations #o%ernin#
contractin# and s)bcontractin# arran#e(ents are hereby iss)edC
Se%/,"n 1. 7uiding rinciles. - Contractin# and s)bcontractin# arran#e(ents are e'pressly
allowed by law and are s)b4ect to re#)lation for the pro(otion of e(ploy(ent and the obser%ance
of the ri#hts of workers to 4)st and h)(ane conditions of work, sec)rity of ten)re, self-or#ani;ation,
and collecti%e bar#ainin#. Labor-only contractin# as defined herein shall be prohibited.
Se%/,"n 2 . *overage. - These *)les shall apply to all parties of contractin# and s)bcontractin#
arran#e(ents where e(ployer-e(ployee relationship e'ists. Place(ent acti%ities thro)#h pri%ate
recr)it(ent and place(ent a#encies as #o%erned by Articles ", to 69 of the Labor Code are not
co%ered by these *)les.
Se%/,"n >. 3rilateral Relationshi in *ontracting Arrangements. 4 7n le#iti(ate contractin#,
there e'ists a trilateral relationship )nder which there is a contract for a specific 4ob, work or ser%ice
between the principal and the contractor or s)bcontractor, and a contract of e(ploy(ent between
the contractor or s)bcontractor and its workers. .ence, there are three parties in%ol%ed in these
arran#e(ents, the principal which decides to far( o)t a 4ob or ser%ice to a contractor or
s)bcontractor, the contractor or s)bcontractor which has the capacity to independently )ndertake
the perfor(ance of the 4ob, work or ser%ice, and the contract)al workers en#a#ed by the contractor
or s)bcontractor to acco(plish the 4ob work or ser%ice.
Se%/,"n 4. +efinition of 8asic 3erms. - The followin# ter(s as )sed in these *)les, shall (eanC
Aa= TCo&r($#&.T or T',1$o&r($#&.T refers to an arran#e(ent whereby a
principal a#rees to p)t o)t or far( o)t with a contractor or s)bcontractor the
perfor(ance or co(pletion of a specific 4ob, work or ser%ice within a definite or
predeter(ined period, re#ardless of whether s)ch 4ob, work or ser%ice is to be
perfor(ed or co(pleted within or o)tside the pre(ises of the principal.
Ab= TCo&r($or or ',1$o&r($orT refers to any person or entity en#a#ed in a
le#iti(ate contractin# or s)bcontractin# arran#e(ent.
Ac= TCo&r($,(* "m%*o0""T incl)des one e(ployed by a contractor or
s)bcontractor to perfor( or co(plete a 4ob, work or ser%ice p)rs)ant to an
arran#e(ent between the latter and a principal.
Ad= TPr#&$#%(*T refers to any e(ployer who p)ts o)t or far(s o)t a 4ob, ser%ice or
work to a contractor or s)bcontractor.
Se%/,"n 5. Prohibition against labor:only contracting. 4 Labor-only contractin# is hereby
declared prohibited. 2or this p)rpose, labor-only contractin# shall refer to an arran#e(ent where
the contractor or s)bcontractor (erely recr)its, s)pplies or places workers to perfor( a 4ob, work or
ser%ice for a principal, and any of the followin# ele(ents are presentC
Ai= The contractor or s)bcontractor does not ha%e s)bstantial capital or
in%est(ent which relates to the 4ob, work or ser%ice to be perfor(ed and the
e(ployees recr)ited, s)pplied or placed by s)ch contractor or s)bcontractor are
perfor(in# acti%ities which are directly related to the (ain b)siness of the
principalJ or
Aii= the contractor does not e'ercise the ri#ht to control o%er the perfor(ance of
the work of the contract)al e(ployee.
The fore#oin# pro%isions shall be witho)t pre4)dice to the application of Article "E AC = of the Labor
Code, as a(ended.
TS,1'(&#(* $(%#(* or #&8"'m"&T refers to capital stocks and s)bscribed capitali;ation in the case
of corporations, tools, e<)ip(ent, i(ple(ents, (achineries and work pre(ises, act)ally and
directly )sed by the contractor or s)bcontractor in the perfor(ance or co(pletion of the 4ob, work or
ser%ice contracted o)t.
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The Tr#.! o $o&ro*T shall refer to the ri#ht reser%ed to the person for who( the ser%ices of the
contract)al workers are perfor(ed, to deter(ine not only the end to be achie%ed, b)t also the
(anner and (eans to be )sed in reachin# that end.
Se%/,"n 6. Prohibitions. - $otwithstandin# &ection , of these *)les, the followin# are hereby
declared prohibited for bein# contrary to law or p)blic policyC
Aa= Contractin# o)t of a 4ob, work or ser%ice when not done in #ood faith and not
4)stified by the e'i#encies of the b)siness and the sa(e res)lts in the ter(ination
of re#)lar e(ployees and red)ction of work ho)rs or red)ction or splittin# of the
bar#ainin# )nitJ
Ab= Contractin# o)t of work with a T$(1oT as defined in &ection 1 Aii=, *)le 7, 0ook
/ of these *)les. TC(1oT refers to a person or #ro)p of persons or to a labor
#ro)p which, in the #)ise of a labor or#ani;ation, s)pplies workers to an
e(ployer, with or witho)t any (onetary or other consideration whether in the
capacity of an a#ent of the e(ployer or as an ostensible independent contractorJ
Ac= Takin# )nd)e ad%anta#e of the econo(ic sit)ation or lack of bar#ainin#
stren#th of the contract)al e(ployee, or )nder(inin# his sec)rity of ten)re or
basic ri#hts, or circ)(%entin# the pro%isions of re#)lar e(ploy(ent, in any of the
followin# instancesC
Ai= 7n addition to his assi#ned f)nctions, re<)irin# the
contract)al e(ployee to perfor( f)nctions which are c)rrently
bein# perfor(ed by the re#)lar e(ployees of the principal or of
the contractor or s)bcontractorJ
Aii= *e<)irin# hi( to si#n, as a precondition to e(ploy(ent or
contin)ed e(ploy(ent, an antedated resi#nation letterJ a blank
payrollJ a wai%er of labor standards incl)din# (ini()( wa#es
and social or welfare benefitsJ or a <)itclai( releasin# the
principal, contractor or s)bcontractor fro( any liability as to
pay(ent of f)t)re clai(sJ and
Aiii= *e<)irin# hi( to si#n a contract fi'in# the period of
e(ploy(ent to a ter( shorter than the ter( of the contract
between the principal and the contractor or s)bcontractor,
)nless the latter contract is di%isible into phases for which
s)bstantially different skills are re<)ired and this is (ade
known to the e(ployee at the ti(e of en#a#e(entJ
Ad= Contractin# o)t of a 4ob, work or ser%ice thro)#h an in-ho)se a#ency which
refers to a contractor or s)bcontractor en#a#ed in the s)pply of labor which is
owned, (ana#ed or controlled by the principal and which operates solely for the
principalJ
Ae= Contractin# o)t of a 4ob, work or ser%ice directly related to the b)siness or
operation of the principal by reason of a strike or locko)t whether act)al or
i((inentJ
Af= Contractin# o)t of a 4ob, work or ser%ice bein# perfor(ed by )nion (e(bers
when s)ch will interfere with, restrain or coerce e(ployees in the e'ercise of their
ri#hts to self or#ani;ation as pro%ided in Art. "E Ac= of the Labor Code, as
a(ended.
Se%/,"n 7. $;istence of an emloyer:emloyee relationshi. - The contractor or s)bcontractor
shall be considered the e(ployer of the contract)al e(ployee for p)rposes of enforcin# the
pro%isions of the Labor Code and other social le#islation. The principal, howe%er, shall be
s"1,da!,1y 1,ab1e with the contractor in the e%ent of any %iolation of any pro%ision of the Labor Code,
incl)din# the fail)re to pay wa#es.
The principal shall be dee(ed the e(ployer of the contract)al e(ployee in any
of the followin# cases as declared by a co(petent a)thorityC
Aa= where there is labor-only contractin#J or
Ab= where the contractin# arran#e(ent falls within the prohibitions pro%ided in
&ection + AProhibitions= hereof.
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Se%/,"n ). Rights of *ontractual $mloyees. - Consistent with &ection 7 of these *)les, the
contract)al e(ployee shall be entitled to all the ri#hts and pri%ile#es d)e a re#)lar e(ployee as
pro%ided for in the Labor Code, as a(ended, to incl)de the followin#C
Aa= &afe and healthf)l workin# conditionsJ
Ab= Labor standards s)ch as ser%ice incenti%e lea%e, rest days, o%erti(e pay,
holiday pay, 16th (onth pay and separation payJ
Ac= &ocial sec)rity and welfare benefitsJ
Ad= &elf-or#ani;ation, collecti%e bar#ainin# and peacef)l concerted actionJ and
Ae= &ec)rity of ten)re.
Se%/,"n (. *ontract between contractor or subcontractor and contractual emloyee. -
$otwithstandin# oral or written stip)lations to the contrary, the contract between the contractor or
s)bcontractor and the contract)al e(ployee, which shall be in writin#, shall incl)de the followin#
ter(s and conditionsC
Aa= The specific description of the 4ob, work or ser%ice to be perfor(ed by the
contract)al e(ployeeJ
Ab= The place of work and ter(s and conditions of e(ploy(ent, incl)din# a
state(ent of the wa#e rate applicable to the indi%id)al contract)al e(ployeeJ and
Ac= The ter( or d)ration of e(ploy(ent, which shall be coe'tensi%e with the
contract of the principal and s)bcontractor, or with the specific phase for which
the contract)al e(ployee is en#a#ed, as the case (ay be.
The contractor or s)bcontractor shall infor( the contract)al e(ployee of the fore#oin# ter(s and
conditions on or before the first day of his e(ploy(ent.
Se%/,"n 14. $ffect of 3ermination of *ontractual $mloyment. 4 7n cases of ter(ination of
e(ploy(ent prior to the e'piration of the contract between the principal and the contractor or
s)bcontractor, the ri#ht of the contract)al e(ployee to separation pay or other related benefits shall
be #o%erned by the applicable laws and 4)rispr)dence on ter(ination of e(ploy(ent.
3here the ter(ination res)lts fro( the e'piration of the contract between the principal and the
contractor or s)bcontractor, or fro( the co(pletion of the phase of the 4ob, work or ser%ice for
which the contract)al e(ployee is en#a#ed, the latter shall not be entitled to separation pay.
.owe%er, this shall be witho)t pre4)dice to co(pletion bon)ses or other e(ol)(ents, incl)din#
retire(ent pay as (ay be pro%ided by law or in the contract between the principal and the
contractor or s)bcontractor.
Se%/,"n 11. Registration of *ontractors or Subcontractors. - Consistent with the a)thority of
the &ecretary of Labor and 5(ploy(ent to restrict or prohibit the contractin# o)t of labor thro)#h
appropriate re#)lations, a re#istration syste( to #o%ern contractin# arran#e(ents and to be
i(ple(ented by the *e#ional 1ffices is hereby established.
The re#istration of contractors and s)bcontractors shall be necessary for p)rposes of establishin#
an effecti%e labor (arket infor(ation and (onitorin#.
2ail)re to re#ister shall #i%e rise to the pres)(ption that the contractor is en#a#ed in labor-only
contractin#.
Se%/,"n 12. ReDuirements for registration. - A contractor or s)bcontractor shall be listed in the
re#istry of contractors and s)bcontractors )pon co(pletion of an application for( to be pro%ided by
the D1L5. The applicant contractor or s)bcontractor shall pro%ide in the application for( the
followin# infor(ationC
Aa= The na(e and b)siness address of the applicant and the area or areas where
it seeks to operateJ
Ab= The na(es and addresses of officers, if the applicant is a corporation,
partnership, cooperati%e or )nionJ
Ac= The nat)re of the applicantOs b)siness and the ind)stry or ind)stries where
the applicant seeks to operateJ
Ad= The n)(ber of re#)lar workersJ the list of clients, if anyJ the n)(ber of
personnel assi#ned to each client, if any and the ser%ices pro%ided to the clientJ
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Ae= The description of the phases of the contract and the n)(ber of e(ployees
co%ered in each phase, where appropriateJ and
Af= A copy of a)dited financial state(ents if the applicant is a corporation,
partnership, cooperati%e or a )nion, or copy of the latest 7T* if the applicant is a
sole proprietorship.
The application shall be s)pported byC
Aa= A certified copy of a certificate of re#istration of fir( or b)siness na(e fro(
the &ec)rities and 5'chan#e Co((ission A&5C=, Depart(ent of Trade and
7nd)stry ADT7=, Cooperati%e De%elop(ent A)thority ACDA=, or fro( the D1L5 if
the applicant is a )nionJ and
Ab= A certified copy of the license or b)siness per(it iss)ed by the local
#o%ern(ent )nit or )nits where the contractor or s)bcontractor operates.
The application shall be %erified and shall incl)de an )ndertakin# that the contractor or
s)bcontractor shall abide by all applicable labor laws and re#)lations.
Se%/,"n 1>. 5iling and rocessing of alications. - The application and its s)pportin#
doc)(ents shall be filed in triplicate in the *e#ional 1ffices where the applicant principally
operates. $o application for re#istration shall be accepted )nless all the fore#oin# re<)ire(ents are
co(plied with. The contractor or s)bcontractor shall be dee(ed re#istered )pon pay(ent of a
re#istration fee of P1>>.>> to the *e#ional 1ffice.
3here all the s)pportin# doc)(ents ha%e been s)b(itted, the *e#ional 1ffice shall deny or
appro%e the application within se%en A7= workin# days after its filin#.
:pon re#istration, the *e#ional 1ffice shall ret)rn one set of the d)ly-sta(ped application
doc)(ents to the applicant, retain one set for its file, and trans(it the re(ainin# set to the 0)rea)
of Local 5(ploy(ent. The 0)rea) shall de%ise the necessary for(s for the e'peditio)s processin#
of all applications for re#istration.
Se%/,"n 14. +uty to roduce coy of contract between the rincial and the contractor or
subcontractor. 4 The principal or the contractor or s)bcontractor shall be )nder an obli#ation to
prod)ce a copy of the contract between the principal and the contractor in the ordinary co)rse of
inspection. The contractor shall likewise be )nder an obli#ation to prod)ce a copy of the contract of
e(ploy(ent of the contract)al worker when directed to do so by the *e#ional Director or his
a)thori;ed representati%e.
A copy of the contract between the contract)al e(ployee and the contractor or s)bcontractor shall
be f)rnished the certified bar#ainin# a#ent, if there is any.
Se%/,"n 15. Annual Reorting of Registered *ontractors. - The contractor or s)bcontractor
shall s)b(it in triplicate its ann)al report )sin# a prescribed for( to the appropriate *e#ional 1ffice
not later than the 1,th of 9an)ary of the followin# year. The report shall incl)deC
Aa= A list of contracts entered with the principal d)rin# the s)b4ect reportin#
periodJ
Ab= The n)(ber of workers co%ered by each contract with the principalJ
Ac= A sworn )ndertakin# that the benefits fro( the &ocial &ec)rity &yste( A&&&=,
the .o(e De%elop(ent M)t)al 2)nd A.DM2=, Phil.ealth, 5(ployees
Co(pensation Co((ission A5CC=, and re(ittances to the 0)rea) of 7nternal
*e%en)e A07*= d)e its contract)al e(ployees ha%e been (ade d)rin# the
s)b4ect reportin# period.
The *e#ional 1ffice shall ret)rn one set of the d)ly-sta(ped report to the contractor or
s)bcontractor, retain one set for its file, and trans(it the re(ainin# set to the 0)rea) of Local
5(ploy(ent within fi%e A,= days fro( receipt thereof.
&ection 1+. D"*#'#&. of $o&r($or' or ',1$o&r($or'. - &)b4ect to d)e process, the *e#ional
Director shall cancel the re#istration of contractors or s)bcontractors based on any of the followin#
#ro)ndsC
Aa= $on-s)b(ission of contracts between the principal and the contractor or
s)bcontractor when re<)ired to do soJ
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Ab= $on-s)b(ission of ann)al reportJ
Ac= 2indin#s thro)#h arbitration that the contractor or s)bcontractor has en#a#ed
in labor-only contractin# and the prohibited acti%ities as pro%ided in &ection +
AProhibitions= hereofJ and
Ad= $on-co(pliance with labor standards and workin# conditions.
Se%/,"n 17. Renewal of registration of contractors or subcontractors. - All re#istered
contractors or s)bcontractors (ay apply for renewal of re#istration e%ery three years. 2or this
p)rpose, the Tripartite 7nd)strial Peace Co)ncil AT7PC= as created )nder 5'ec)ti%e 1rder $o. 9,
shall ser%e as the o%ersi#ht co((ittee to %erify and (onitor the followin#C
Aa= 5n#a#in# in allowable contractin# acti%itiesJ and
Ab= Co(pliance with ad(inistrati%e reportin# re<)ire(ents.
Se%/,"n 1). $nforcement of Labor Standards and Wor<ing *onditions. - Consistent with Article
1"E A/isitorial and 5nforce(ent Power= of the Labor Code, as a(ended, the *e#ional Director
thro)#h his d)ly a)thori;ed representati%es, incl)din# labor re#)lation officers shall ha%e the
a)thority to cond)ct ro)tine inspection of establish(ents en#a#ed in contractin# or s)bcontractin#
and shall ha%e access to e(ployerOs records and pre(ises at any ti(e of the day or ni#ht
whene%er work is bein# )ndertaken therein, and the ri#ht to copy therefro(, to <)estion any
e(ployee and in%esti#ate any fact, condition or (atter which (ay be necessary to deter(ine
%iolations or which (ay aid in the enforce(ent of the Labor Code and of any labor law, wa#e order,
or r)les and re#)lations iss)ed p)rs)ant thereto.
The findin#s of the d)ly a)thori;ed representati%e shall be referred to the *e#ional Director for
appropriate action as pro%ided for in Article 1"E, and shall be f)rnished the collecti%e bar#ainin#
a#ent, if any.
0ased on the %isitorial and enforce(ent power of the &ecretary of Labor and 5(ploy(ent in Article
1"E Aa=, Ab=, Ac= and Ad=, the *e#ional Director shall iss)e co(pliance orders to #i%e effect to the
labor standards pro%isions of the Labor Code, other labor le#islation and these #)idelines.
Se%/,"n 1(. Solidary liability. - The principal shall be dee(ed as the direct e(ployer of the
contract)al e(ployees and therefore, solidarily liable with the contractor or s)bcontractor for
whate%er (onetary clai(s the contract)al e(ployees (ay ha%e a#ainst the for(er in the case of
%iolations as pro%ided for in &ections , ALabor-1nly contractin#=, + AProhibitions=, E A*i#hts of
Contract)al 5(ployees= and 1+ ADelistin#= of these *)les. 7n addition, the principal shall also be
solidarily liable in case the contract between the principal and contractor or s)bcontractor is
preter(inated for reasons not attrib)table to the fa)lt of the contractor or s)bcontractor.
Se%/,"n 24. Suersession. - All r)les and re#)lations iss)ed by the &ecretary of Labor and
5(ploy(ent inconsistent with the pro%isions of this *)le are hereby s)perseded. Contractin# or
s)bcontractin# arran#e(ents in the constr)ction ind)stry, )nder the licensin# co%era#e of the
PCA0 and shall not incl)de shipb)ildin# and ship repairin# works, howe%er, shall contin)e to be
#o%erned by Depart(ent 1rder $o. 19, series of 1996.
Se%/,"n 21. $ffectivity. - This 1rder shall be effecti%e fifteen A1,= days after co(pletion of its
p)blication in two A"= newspapers of #eneral circ)lation.
??Wa-e ,n%!easesE 1e-,s1a/ed and %"n/!a%/2a1E E..e%/ "n P!,n%,a1 and C"n/!a%/"!Hs 1,ab,1,/yE RA 6727
TREP5BLIC ACT *+. 6727V
Se%. 1. This Act shall be known as the <Wa-e Ra/,"na1,@a/,"n A%/.<
Se%. 2. 7t is hereby declared the policy of the &tate to rationali;e the fi'in# of (ini()( wa#es and to pro(ote
prod)cti%ity-i(pro%e(ent and #ain-sharin# (eas)res to ens)re a decent standard of li%in# for the workers and their
fa(iliesJ to #)arantee the ri#hts of labor to its 4)st share in the fr)its of prod)ctionJ to enhance e(ploy(ent
#eneration in the co)ntryside thro)#h ind)stry dispersalJ and to allow b)siness and ind)stry reasonable ret)rns on
in%est(ent, e'pansion and #rowth.
The &tate shall pro(ote collecti%e bar#ainin# as the pri(ary (ode of settin# wa#es and other ter(s and conditions
of e(ploy(entJ and, whene%er necessary, the (ini()( wa#e rates shall be ad4)sted in a fair and e<)itable (anner,
considerin# e'istin# re#ional disparities in the cost of li%in# and other socio-econo(ic factors and the national
econo(ic and social de%elop(ent plans.
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Se%. >. 7n line with the declared policy )nder this Act, Article 99 of Presidential Decree $o. ", as a(ended, is
hereby a(ended and Articles 1">, 1"1, 1"", 1"6, 1", 1"+ and 1"7 are hereby incorporated into Presidential Decree
$o. ", as a(ended, to read as followsC
MArt. 99. *e#ional Mini()( 3a#es. - The (ini()( wa#e rates for a#ric)lt)ral and non-a#ric)lt)ral e(ployees and
workers in each and e%ery re#ion of the co)ntry shall be those prescribed by the *e#ional Tripartite 3a#es and
Prod)cti%ity 0oards.M
MArt. 1">. Creation of the $ational 3a#es and Prod)cti%ity Co((ission. - There is hereby created a $ational
3a#es and Prod)cti%ity Co((ission, hereinafter referred to as the Co((ission, which shall be attached to the
Depart(ent of Labor and 5(ploy(ent AD1L5= for policy and pro#ra( coordination.M
MArt. 1"1. Powers and 2)nctions of the Co((ission. - The Co((ission shall ha%e the followin# powers and
f)nctionsC
prod)cti%ityJ and
MThe Co((ission shall be co(posed of the &ecretary of Labor and 5(ploy(ent as e'-officio chair(an, the
Director-Feneral of the $ational 5cono(ic and De%elop(ent A)thority A$5DA= as e'-officio %ice-chair(an, and two
A"= (e(bers each fro( workers and e(ployers sectors who shall be appointed by the President of the Philippines
)pon reco((endation of the &ecretary of Labor and 5(ploy(ent to be (ade on the basis of the list of no(inees
s)b(itted by the workers and e(ployers sectors, respecti%ely, and who shall ser%e for a ter( of fi%e A,= years. The
5'ec)ti%e Director of the Co((ission &ecretariat shall also be a (e(ber of the Co((ission.M
MThe Co((ission shall be assisted by a &ecretariat to be headed by an 5'ec)ti%e Director and two A"= Dep)ty
Directors, who shall be appointed by the President of the Philippines, )pon reco((endation of the &ecretary of Labor
and 5(ploy(ent.M
MThe 5'ec)ti%e Director shall ha%e the sa(e rank, salary, benefits and other e(ol)(ents as that of a Depart(ent
Assistant &ecretary, while the Dep)ty Directors shall ha%e the sa(e rank, salary, benefits and other e(ol)(ents as
that of a 0)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 by law for labor and (ana#e(ent
representati%es in the 5(ployeesO Co(pensation Co((ission.M
MArt. 1"". Creation of *e#ional Tripartite 3a#es and Prod)cti%ity 0oards. - There is hereby created *e#ional
Tripartite 3a#es and Prod)cti%ity 0oards, hereinafter referred to as *e#ional 0oards, in all re#ions, incl)din#
a)tono(o)s re#ions as (ay be established by law. The Co((ission shall deter(ine the officesBhead<)arters of the
respecti%e *e#ional 0oards.
MThe *e#ional 0oards shall ha%e the followin# powers and f)nctions in their respecti%e territorial 4)risdictionC
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Aa= To de%elop plans, pro#ra(s and pro4ects relati%e to wa#es, inco(es and prod)cti%ity
Ab= To deter(ine and fi' (ini()( wa#e rates applicable in their re#ion, pro%inces or ind)stries
Co((issionJ
Ac= To )ndertake st)dies, researches, and s)r%eys necessary for the attain(ent of their f)nctions,
Ad= To coordinate with the other *e#ional 0oards as (ay be necessary to attain the policy and
Ae= To recei%e, process and act on applications for e'e(ption fro( prescribed wa#e rates as (ay
Af= To e'ercise s)ch other powers and f)nctions as (ay be necessary to carry o)t their (andate
)nder this Code.
M7(ple(entation of the plans, pro#ra(s and pro4ects of the *e#ional 0oards referred to in the second para#raph,
letter Aa= of this Article, shall be thro)#h the respecti%e re#ional offices of the Depart(ent of Labor and 5(ploy(ent
within their territorial 4)risdictionJ Pro%ided, howe%er, That the *e#ional 0oards shall ha%e technical s)per%ision o%er
the re#ional office of the Depart(ent of Labor and 5(ploy(ent with respect to the i(ple(entation of said plans,
pro#ra(s and pro4ects.
M5ach *e#ional 0oard shall be co(posed of the *e#ional Director of the Depart(ent of Labor and 5(ploy(ent as
chair(an, the *e#ional Directors of the $ational 5cono(ic and De%elop(ent A)thority and Depart(ent of Trade and
7nd)stry as %ice-chair(en and two A"= (e(bers each fro( workers and e(ployers sectors who shall be appointed by
the President of the Philippines, )pon reco((endation of the &ecretary of Labor and 5(ploy(ent, to be (ade on the
basis of the list of no(inees s)b(itted by the workers and e(ployers sectors, respecti%ely, and who shall ser%e for a
ter( of fi%e A,= years.
MArt. 1"6. 3a#e 1rder. - 3hene%er conditions in the re#ion so warrant, the *e#ional 0oard shall in%esti#ate and
st)dy all pertinent factsJ and, based on the standards and criteria herein prescribed, shall proceed to deter(ine
whether a 3a#e 1rder sho)ld be iss)ed.
Any s)ch 3a#e 1rder shall take effect after fifteen A1,= days fro( its co(plete p)blication in at least one Al=
newspaper of #eneral circ)lation in the re#ion.
M7n the perfor(ance of its wa#e-deter(inin# f)nctions, the *e#ional 0oard shall cond)ct p)blic
hearin#sBcons)ltations, #i%in# notices to e(ployeesO and e(ployersO #ro)ps, pro%incial, city and ()nicipal officials
and other interested parties.
MAny party a##rie%ed by the 3a#e 1rder iss)ed by the *e#ional 0oard (ay appeal s)ch order to the Co((ission
within ten Al>= calendar days fro( the p)blication of s)ch order. 7t shall be (andatory for the Co((ission to decide
s)ch appeal within si'ty A+>= calendar days fro( the filin# thereof.
MThe filin# of the appeal does not operate to stay the order )nless the person appealin# s)ch order shall file with
the Co((ission an )ndertakin# with a s)rety or s)reties satisfactory to the Co((ission for the pay(ent to the
e(ployees affected by the order of the correspondin# increase, in the e%ent s)ch order is affir(ed.M
MArt. 1". &tandardsBCriteria for Mini()( 3a#e 2i'in#. The re#ional (ini()( wa#es to be established by the
*e#ional 0oard shall be as nearly ade<)ate as is econo(ically feasible to (aintain the (ini()( standards of li%in#
necessary for the health, efficiency and #eneral well-bein# of the e(ployees within the fra(ework of the national
econo(ic and social de%elop(ent pro#ra(. 7n the deter(ination of s)ch re#ional (ini()( wa#es, the *e#ional
0oard shall, a(on# other rele%ant factors, consider the followin#C
Aa= The de(and for li%in# wa#esJ
Ab= 3a#e ad4)st(ent %is-R-%is the cons)(er price inde'J
Ac= The cost of li%in# and chan#es or increases thereinJ
Ad= The needs of workers and their fa(iliesJ
Ae= The need to ind)ce ind)stries to in%est in the co)ntrysideJ
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Af= 7(pro%e(ents in standards of li%in#J
A#= The pre%ailin# wa#e le%elsJ
Ah= 2air ret)rn of the capital in%ested and capacity to pay of e(ployersJ
Ai= 5ffects on e(ploy(ent #eneration and fa(ily inco(eJ and
A4= The e<)itable distrib)tion of inco(e and wealth alon# the i(perati%es of econo(ic and social
de%elop(ent.
MThe wa#es prescribed in accordance with the pro%isions of this Title shall be the standard pre%ailin# (ini()(
wa#es in e%ery re#ion. These wa#es shall incl)de wa#es %aryin# with ind)stries, pro%inces or localities if in the
4)d#(ent of the *e#ional 0oard conditions (ake s)ch local differentiation proper and necessary to effect)ate the
p)rpose of this Title.
MAny person, co(pany, corporation, partnership or any other entity en#a#ed in b)siness shall file and re#ister
ann)ally with the appropriate *e#ional 0oard, Co((ission and the $ational &tatistics 1ffice an ite(i;ed listin# of
their labor co(ponent, specifyin# the na(es of their workers and e(ployees below the (ana#erial le%el, incl)din#
learners, apprentices and disabledBhandicapped workers who were hired )nder the ter(s prescribed in the
e(ploy(ent contracts, and their correspondin# salaries and wa#es.
M3here the application of any prescribed wa#e increase by %irt)e of a law or 3a#e 1rder iss)ed by any *e#ional
0oard res)lts in distortions of the wa#e str)ct)re within an establish(ent, the e(ployer and the )nion shall ne#otiate
to correct the distortions. Any 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)ntary arbitration. :nless
otherwise a#reed by the parties in writin#, s)ch disp)te shall be decided by the %ol)ntary arbitrator or panel of
%ol)ntary arbitrators within ten A1>= calendar days fro( the ti(e said disp)te was referred to %ol)ntary arbitration.
M7n cases where there are no collecti%e a#ree(ents or reco#ni;ed labor )nions, the e(ployers and workers shall
endea%or to correct s)ch distortions. Any disp)te arisin# therefro( shall be settled thro)#h the $ational Conciliation
and Mediation 0oard and, if it re(ains )nresol%ed after ten A1>= calendar days of conciliation, shall be referred to the
appropriate branch of the $ational Labor *elations Co((ission A$L*C=. 7t shall be (andatory for the $L*C to
cond)ct contin)o)s hearin#s and decide the disp)te within twenty A">= calendar days fro( the ti(e said disp)te is
s)b(itted for co(p)lsory arbitration.
MThe pendency of a disp)te arisin# fro( a wa#e distortion shall not in any way delay the applicability of any
increase in prescribed wa#e rates p)rs)ant to the pro%isions of law or 3a#e 1rder.
MAs )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 salary rates between and
a(on# e(ployee #ro)ps in an establish(ent as to effecti%ely 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.
MAll workers paid by res)lt, incl)din# those who are paid on piecework, takay, pakyaw or task basis, shall recei%e
not less than the prescribed wa#e rates per ei#ht AE= ho)rs work a day, or a proportion thereof for workin# less than
ei#ht AE= ho)rs.
MAll reco#ni;ed learnership and apprenticeship a#ree(ents shall be considered a)to(atically (odified insofar as
their wa#e cla)ses are concerned to reflect the prescribed wa#e rates.M
MArt. 1"+. Prohibition A#ainst 7n4)nction. - $o preli(inary or per(anent in4)nction or te(porary restrainin# order
(ay be iss)ed by any co)rt, trib)nal or other entity a#ainst any proceedin#s before the Co((ission or the *e#ional
0oards.M
MArt. 1"7. $on-Di(in)tion of 0enefits. - $o 3a#e 1rder iss)ed by any *e#ional 0oard shall pro%ide for wa#e rates
lower than the stat)tory (ini()( wa#e rates prescribed by Con#ress.M
Se%. 4. Aa= :pon the effecti%ity of this Act, the stat)tory (ini()( wa#e rates of all workers and e(ployees in the
pri%ate sector, whether a#ric)lt)ral or non-a#ric)lt)ral, shall be increased by twenty-fi%e pesos AP",.>>= per day,
e'cept that workers and e(ployees in plantation a#ric)lt)ral enterprises o)tside of the $ational Capital *e#ion A$C*=
with an ann)al #ross sales of less than fi%e (illion pesos AP,,>>>,>>>.>>= in the precedin# year shall be paid an
increase of twenty pesos AP">.>>=, and e'cept f)rther that workers and e(ployees of cotta#eBhandicraft ind)stries,
non-plantation a#ric)lt)ral enterprises, retailBser%ice establish(ents re#)larly e(ployin# not (ore than ten A1>=
workers, and b)siness enterprises with a capitali;ation of not (ore than fi%e h)ndred tho)sand pesos AP,>>,>>>.>>=
and e(ployin# not (ore than twenty A">= e(ployees, which are located or operatin# o)tside the $C*, shall be paid
only an increase of fifteen pesos AP1,.>>=C Pro%ided, That those already recei%in# abo%e the (ini()( wa#e rates )p
to one h)ndred pesos AP1>>.>>= shall also recei%e an increase of twenty-fi%e pesos AP",.>>= per day, and e'cept that
the workers and e(ployees (entioned in the first e'ception cla)se of this section shall also be paid only an increase
of twenty-pesos AP">.>>=, and e'cept f)rther that those e(ployees en)(erated in the second e'ception cla)se of
this &ection shall also be paid only an increase of fifteen pesos AP1,.>>=C Pro%ide, f)rther, That the appropriate
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*e#ional 0oard is hereby a)thori;ed to #rant additional increases to the workers and e(ployees (entioned in the
e'ception cla)ses of this &ection if, on the basis of its deter(ination p)rs)ant to Article 1" of the Labor Code s)ch
increases are necessary.
Ab= The increase of twenty-fi%e pesos AP",.>>= prescribed )nder this &ection shall apply to all workers and
e(ployees entitled to the sa(e in pri%ate ed)cational instit)tions as soon as they ha%e increased or are #ranted
a)thority to increase their t)ition fees d)rin# school year 19E9-199>. 1therwise, s)ch increase shall be so applicable
not later than the openin# of the ne't school year be#innin# 199>.
Ac= 5'e(pted fro( the pro%isions of this Act are ho)sehold or do(estic helpers and persons e(ployed in the
personal ser%ice of another, incl)din# fa(ily dri%ers.
*etailBser%ice establish(ents re#)larly e(ployin# not (ore than ten A1>= workers (ay be e'e(pted fro( the
applicability of this Act )pon application with and as deter(ined by the appropriate *e#ional 0oard in accordance
with the applicable r)les and re#)lations iss)ed by the Co((ission. 3hene%er an application for e'e(ption has
been d)ly filed with the appropriate *e#ional 0oard, action on any co(plaint for alle#ed non-co(pliance with this Act
shall be deferred pendin# resol)tion of the application for e'e(ption by the appropriate *e#ional 0oard.
7n the e%ent that applications for e'e(ptions are not #ranted, e(ployees shall recei%e the appropriate
co(pensation d)e the( as pro%ided for by this Act pl)s interest of one percent A1K= per (onth retroacti%e to the
effecti%ity of this Act.
Ad= 7f e'pressly pro%ided for and a#reed )pon in the collecti%e bar#ainin# a#ree(ents, all increases in the daily
basic wa#e rates #ranted by the e(ployers three A6= (onths before the effecti%ity of this Act shall be credited as
co(pliance with the increases in the wa#e rates prescribed herein, pro%ided that, where s)ch increases are less than
the prescribed increases in the wa#e rates )nder this Act, the e(ployer shall pay the difference. &)ch increases shall
not incl)de anni%ersary wa#e increases, (erit wa#e increases and those res)ltin# fro( the re#)lari;ation or
pro(otion of e(ployees.
3here the application of the increases in the wa#e rate )nder this &ection res)lts in distortions as defined )nder
e'istin# laws in the wa#e str)ct)re within an establish(ent and #i%es rise to a disp)te therein, s)ch disp)te shall first
be settled %ol)ntarily between the parties and in the e%ent of a deadlock, the sa(e shall be finally resol%ed thro)#h
co(p)lsory arbitration by the re#ional arbitration branch of the $ational Labor *elations Co((ission A$L*C= ha%in#
4)risdiction o%er the workplace.
7t shall be (andatory for the $L*C to cond)ct contin)o)s hearin#s and decide any disp)te arisin# )nder this
&ection within twentyA">= calendar days fro( the ti(e said disp)te is for(ally s)b(itted to it for arbitration. The
pendency of a disp)te arisin# fro( a wa#e distortion shall not in any way delay the applicability of the increases in the
wa#e rates prescribed )nder this &ection.
Se%. 5. 3ithin a period of fo)r A= years fro( the effecti%ity of this Act and witho)t pre4)dice to collecti%e bar#ainin#
ne#otiations or a#ree(ents or other e(ploy(ent contracts between e(ployers and workers, new b)siness
enterprises that (ay be established o)tside the $C* and e'port processin# ;ones whose operation or in%est(ents
need initial assistance as (ay be deter(ined by the Depart(ent of Labor and 5(ploy(ent in cons)ltation with the
Depart(ent of Trade and 7nd)stry or the Depart(ent of A#ric)lt)re, as the case (ay be shall be e'e(pt fro( the
application of this Act for not (ore than three A6= years fro( the start of their operationsC Pro%ided, That s)ch new
b)siness enterprises established in *e#ion 777 ACentral L);on= and *e#ion 7/ A&o)thern Ta#alo#= shall be e'e(pt
fro( s)ch increases only for two A"= years fro( the start of their operations, e'cept those established in the Pro%inces
of Palawan, 1riental Mindoro, 1ccidental Mindoro, Marind)<)e, *o(blon, H)e;on and A)rora, which shall en4oy
s)ch e'e(ption for not (ore than three A6= years fro( the start of their operations.
Se%. 6. 7n the case of contracts for constr)ction pro4ects and for sec)rity, 4anitorial and si(ilar ser%ices, the
prescribed increases in the wa#e rates of the workers shall be borne by the principals or clients of the
constr)ctionBser%ice contractors and the contract shall be dee(ed a(ended accordin#ly. 7n the e%ent, howe%er, that
the principal or client fails to pay the prescribed wa#e rates, the constr)ctionBser%ice contractor shall be 4ointly and
se%erally liable with his principal or client.
Se%. 7. :pon written petition of the (a4ority of the e(ployees or workers concerned, all pri%ate establish(ents,
co(panies, b)sinesses, and other entities with twenty fi%e A",= or (ore e(ployees and located within one A1=
kilo(eter radi)s to a co((ercial, sa%in#s or r)ral bank shall pay the wa#es and other benefits of their e(ployees
thro)#h any of said banks and within the period for pay(ent of wa#es fi'ed by Presidential Decree $o. ", as
a(ended, otherwise known as the Labor Code of the Philippines.
Se%. ). 3hene%er applicable and )pon re<)est of a concerned worker or )nion, the bank shall iss)e a certification
of the record of pay(ent of wa#es of a partic)lar worker or workers for a partic)lar payroll period.
Se%. (. The Depart(ent of Labor and 5(ploy(ent shall cond)ct inspections as often as possible within its
(anpower constraint of the payroll and other financial records kept by the co(pany or b)siness to deter(ine whether
the workers are paid the prescribed wa#e rates and other benefits #ranted by law or any 3a#e 1rder. 7n )nioni;ed
co(panies, the Depart(ent of Labor and 5(ploy(ent inspectors shall always be acco(panied by the president or
any responsible officer of the reco#ni;ed bar#ainin# )nit of any interested )nion in the cond)ct of the inspection. 7n
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non-)nioni;ed co(panies, establish(ents or b)sinesses, the inspection shall be carried o)t in the presence of a
worker representin# the workers in the said co(pany. The workersO representati%e shall ha%e the ri#ht to s)b(it his
own findin#s to the Depart(ent of Labor and 5(ploy(ent and to testify on the sa(e if he cannot conc)r with the
findin#s of the labor inspector.
Se%. 14. The f)nds necessary to carry o)t the pro%isions of this Act shall be taken fro( the Co(pensation and
1r#ani;ational Ad4)st(ent 2)nd, the Contin#ent 2)nd, and other sa%in#s )nder *ep)blic Act $o. ++EE, otherwise
known as the Feneral Appropriations Act of 19E9, or fro( any )nappropriated f)nds of the $ational Treas)ryC
Pro%ided, That the f)ndin# re<)ire(ents necessary to i(ple(ent this Act shall be incl)ded in the ann)al Feneral
Appropriations Act for the s)cceedin# years.
Se%. 11. The $ational 3a#es Co)ncil created )nder 5'ec)ti%e 1rder $o. +1 and the $ational Prod)cti%ity
Co((ission created )nder 5'ec)ti%e 1rder $o. +1, are hereby abolished. All properties, records, e<)ip(ent,
b)ildin#s, facilities, and other assets, liabilities and appropriations of and belon#in# to the abo%e(entioned offices, as
well as other (atters pendin# therein, shall be transferred to the Co((ission. All personnel of the abo%e abolished
offices shall contin)e to f)nction in a holdo%er capacity and shall be preferentially considered for appoint(ents to or
place(ent in the Co((ission.
Any official or e(ployee separated fro( the ser%ice as a res)lt of the abolition of offices p)rs)ant to this Act shall
be entitled to appropriate separation pay and retire(ent and other benefits accr)in# to the( )nder e'istin# laws. 7n
lie) thereof, at the option of the e(ployee, he shall be preferentially considered for e(ploy(ent in the #o%ern(ent or
in any of its s)bdi%isions, instr)(entalities, or a#encies, incl)din# #o%ern(ent-owned or controlled corporations and
their s)bsidiaries.
Se%. 12. Any person, corporation, tr)st, fir(, partnership, association or entity which ref)ses or fails to pay any of
the prescribed increases or ad4)st(ents in the wa#e rates (ade in accordance with this Act shall be p)nished by a
fine not e'ceedin# twenty-fi%e tho)sand pesos AP",,>>>.>>= andBor i(prison(ent of not less than one A1= year nor
(ore than two A"= yearsC Pro%ided, That any person con%icted )nder this Act shall not be entitled to the benefits
pro%ided for )nder the Probation Law.
7f the %iolation is co((itted by a corporation, tr)st or fir(, partnership, association or any other entity, the penalty
of i(prison(ent shall be i(posed )pon the entityOs responsible officers, incl)din#, b)t not li(ited to, the president,
%ice president, chief e'ec)ti%e officer, #eneral (ana#er, (ana#in# director or partner.
Se%. 1>. The &ecretary of Labor and 5(ploy(ent shall pro()l#ate the necessary r)les and re#)lations to
i(ple(ent the pro%isions of this Act.
Se%. 14. All laws, orders, iss)ances, r)les and re#)lations or parts thereof inconsistent with the pro%isions of this
Act are hereby repealed, a(ended or (odified accordin#ly. 7n any pro%ision or part of this Act, or the application
thereof to any person or circ)(stance, is held in%alid or )nconstit)tional, the re(ainder of this Act or the application
of s)ch pro%ision or part thereof to other persons or circ)(stances shall not be affected thereby.
$othin# in this Act shall be constr)ed to red)ce any e'istin# wa#e rates, allowances and benefits of any for(
)nder e'istin# laws, decrees, iss)ances, e'ec)ti%e orders, andBor )nder any contract or a#ree(ent between the
workers and e(ployers.
Se%. 15. This Act shall take effect fifteen A1,= days after its co(plete p)blication in the 1fficial Fa;ette or in at least
two A"= national newspapers of #eneral circ)lation, whiche%er co(es earlier.
??D+ *". 14 Se!,es ". 2441 6Em1"ymen/ and W"!=,n- C"nd,/,"ns ". Se%2!,/y ;2a!ds7
D5PA*TM5$T 1*D5* $1. 1
A&eries of ">>1=
SECTI+* 1. *overage. - This iss)ance shall apply to all pri%ate sec)rity a#encies or operators, their principals or
clients, all co(panies allowed to directly e(ploy sec)rity #)ards and to all sec)rity #)ards, whether a#ency or
co(pany e(ployees, for co(pliance and entitle(ent, respecti%ely, to e'istin# labor standards laws and benefits.
Se%. 2. +efinition of terms. - 2or the p)rpose of this F)idelines, the followin# ter(s are definedC
a. TPr#&$#%(*T refers to any e(ployer, co(pany or establish(ent to who( a sec)rity 4ob, ser%ice or
work is pro%ided by a sec)rity ser%ice contractor, whether or not the arran#e(ent is co%ered by a
written contract.
b. TS"$,r#0 '"r8#$" $o&r($orT is synony(o)s with a pri%ate sec)rity a#ency which (eans any
person, association, partnership, fir( or pri%ate corporation, who contracts, recr)its, trains,
f)rnishes or posts any sec)rity #)ard or si(ilar personnel to indi%id)als, corporations, offices and
or#ani;ations, whether pri%ate or p)blic, for their sec)rity needs as the Philippine $ational Police
(ay appro%e.
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Se%. >. $mloyment status. 4
6.1 Em%*o0"r4"m%*o0"" r"*(#o&'!#%. - The sec)rity ser%ice contractor is the e(ployer of its sec)rity
#)ard and si(ilar personnel. The principal where the sec)rity #)ards are as-si#ned is considered
an T#&+#r"$ "m%*o0"rT for )npaid wa#es and other wa#e related benefits based on the 4oint and
se%eral liability of the principal with the ser%ice contractor )nder the Labor Code, )nless the pri%ate
sec)rity a#ency is owned, (ana#ed or controlled by the prin-cipal or the facts show that the
principal controls the (anner by which the sec)rity ser%ice is perfor(ed or where the sec)rity
#)ard is directly hired by the establish(ent.
6." Pro1(#o&(r0 "m%*o0m"&. - The probationary period of a newly hired sec)rity #)ard or si(ilar
personnel in the pri%ate sec)rity ind)stry shall not e'ceed si' A+= (onths. 3hile en#a#ed on
probationary basis, hisBher ser%ices (ay be ter(inated for fail)re to (eet the reasonable standards
or criteria (ade known by the sec)rity a#encyBe(ployer to the #)ard at the ti(e of en#a#e(ent or
for 4)st ca)seBs.
6.6 R".,*(r "m%*o0m"&. - Any sec)rity #)ard or si(ilar personnel in the pri%ate se-c)rity ind)stry
who is allowed to work after the probationary period shall be considered a re#)lar e(ployee.
Se%. 4. Service contracts. 4 The sec)rity ser%ice contractor andBor the principal shall prod)ce or s)b(it the ori#inal
copy of their ser%ice contract when directed to do so by the *e#ional Director or hisBher d)ly a)thori;ed
representati%e. The ser%ice contract shall stip)late, a(on# othersC
a. A state(ent that the sec)rity #)ardsBpersonnel shall be paid not less than the (ini()( wa#e
and other benefits )nder the Labor Code and other e'istin# lawsJ
b. An escalation cla)se to i((ediately effect the co((on pro%ision in the wa#e orders that the
prescribed increase in the wa#e rates of the workers shall be borne by the principal or client of the
ser%ice contractors and the contracts shall be dee(ed a(ended accordin#ly.
c. A state(ent that sec)rity ser%ice contractor andBor the principal shall co(ply with &ocial
&ec)rity, 5(ployees Co(pensation, Philippine .ealth 7ns)rance Corporation and .o(e
De%elop(ent M)t)al 2)nd laws on e(ployeesO co%era#e or (e(bership.
d. The kind or nat)re of sec)rity ser%ice.
e. The sched)le of pay(ent of 16th (onth pay per P. D. E,1 and re-tire(ent pay per *. A. 7+1.
Se%. 5. $mloyment contracts. :
,.1 The sec)rity ser%ice contractor shall pro%ide his sec)rity #)ards, detach(ent
co((andersBs)per%isors and other sec)rity personnel, a copy of the e(ploy(ent contract d)ly
si#ned by the parties which shall contain the ter(s and conditions of e(ploy(ent, s)ch as those
pro%ided )nder &ection , hereof.
,." 2or e%ery assi#n(ent of a sec)rity #)ardBpersonnel to a principal, the d)ty detail order shall
contain the followin#, a(on# othersC
a. Description of 4ob, work or ser%ice to be perfor(ed
b. .o)rs and days of work, work shift and applicable pre(i)(, o%erti(e and
ni#ht shift pay rates.
Se%. 6. 3erms and conditions of emloyment. ?
+.1 The sec)rity #)ards and si(ilar personnel in the e(ploy of any pri%ate
sec)rity a#ency or co(pany sho)ld be d)ly licensed and ()st ha%e passed the
physical and ne)ro-psychiatric e'a(inations re<)ired by the P$P. They are
entitled to the (andatory benefits )nder the Labor Code and other e'istin# laws,
incl)din# co%era#e by &&&, 5CC, Philhealth and .DM2.
+." The basic wa#e rate of a sec)rity #)ardBpersonnel shall not be less than the
(ini()( wa#e rate for the non-a#ric)lt)ral sector in the *e#ion where heBshe is
assi#ned, re#ardless of the nat)re of b)siness of the principal, or in the *e#ion
where the sec)rity #)ard has been en#a#ed, whiche%er is hi#her.
3here a sec)rity #)ardBpersonnel is recr)ited thro)#h a branch office in another
*e#ion where the principal is likewise located, the non-a#ric)lt)ral (ini()(
wa#e rate applicable in the workplace of the principal shall #o%ern.
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&ec)rity #)ards or other personnel e(ployed andBor assi#ned by a sec)rity
ser%ice contractor in one *e#ion b)t who are transferred, (o%ed or assi#ned to
another *e#ion shall be paid based on the (ore beneficial wa#e rate.
7n case of transfer or reassi#n(ent to another principal within a *e#ion, the wa#e
rates (ay be ad4)sted pro%ided that the sa(e shall not be less than the
applicable re#ional (ini()( wa#e rate.
+.6. S(,or0 B"&"f#'. 4 The sec)rity #)ardsBpersonnel are entitled to not less
than the followin# benefits dependin# on the workin# ho)rs, work shift and
workdays )nder the #i%en conditions, which benefits sho)ld be incl)ded in the
cost distrib)tion in the ser%ice contractC
a. 0asic salary for all act)al workdays and for the ten re#)lar
holidays Aas holiday pay= which ()st not be lower than the
(ini()( wa#e rates abo%e described and to be co(p)ted by
)sin# the factors reco((ended herein or by (ore fa%orable
practice of the e(ployer. 7n addition, one h)ndred percent
A1>>K= of the basic salary is d)e whene%er work is rendered
on a re#)lar holiday.
b. Allowance in addition to the basic salary, if any, is
prescribed by the applicable *e#ional 3a#e 1rder.
c. Pre(i)( pay of 6>K of the daily rate for work on special
days and rest days, which is increased to ,>K whene%er work
is perfor(ed on coincidin# rest days and special days.
d. 1%erti(e pay for work rendered in e'cess of ei#ht AE= ho)rs
a day, e<)i%alent to at least ",K of the re#)lar wa#e rate on
ordinary days and 6>K on re#)lar holidays, special days and
rest days.
e. $i#ht shift pay e<)i%alent to 1>K of the re#)lar ho)rly rate
for work rendered between 1>C>> p( to +C>> a( of the
followin# day.
f. 2i%e A,= day ser%ice incenti%e lea%e for e%ery year of ser%ice
which benefits can be a%ailed of d)rin# days of absence and, if
not )sed, are con%ertible into its cash e<)i%alent. A
proportionate lea%e benefit per (onth (ay be deri%ed by
di%idin# , days by 1" (onths ti(es the daily rate.
#. Paternity lea%e of se%en A7= days with f)ll pay. This lea%e
shall be #ranted before, d)rin# or after childbirth or after
spontaneo)s (iscarria#e by his le#al spo)se. The paternity
lea%e with pay is #ranted for only fo)r deli%eries, incl)din#
(iscarria#e.
h. 16th (onth pay which is 1B1" of the total basic salary earned
within a calendar year.
+. *eco((ended Co(p)tation of 5<)i%alent Monthly *ates
:sin# the applicable daily wa#e rate AAD*= and a factor representin# the n)(ber
of paid days in a year, the followin# proced)res are reco((ended to facilitate
co(p)tation of e<)i%alent (onthly rates A5M*=.
2or those who are re<)ired to work e%eryday incl)din# &)ndays or rest days,
special days and re#)lar holidaysC
5M* a AAD* ' 691.,= B 1"
where 691., is deri%ed fro(C
6>".> - ordinary workin# days
1E.> - 9 re#)lar holidays ' ">>K
".+ - a re#)lar holiday on last &)nday of A)#)st ' ">>K b A6>K of ">>K=
++.6 - ,1 rest days ' 16>K
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".+ - " special days ' 16>K
691., days considered paid in a year
2or those who are considered paid on all days incl)din# )nworked &)ndays or
rest days, special days and re#)lar holidaysC
5M* a AAD* ' 6+,= B 1"
where 6+, days deri%ed fro(C
6>" - ordinary workin# days
" - special days
,1 - rest days
1> - re#)lar holidays
6+, days
2or those who do not work and are not considered paid on &)ndaysB rest daysC
5M* a AAD* ' 61.+= B 1"
where 61.+ is deri%ed fro(C
6>".> - ordinary workin# days
".+ - " special days Aif worked= ' 16>K
1>.>- re#)lar holidays
61.+ days considered paid in a year
2or those who do not work and are not considered paid on &at)rdays and
&)ndays or rest days
5M* a AAD* ' "+".+= B 1"
where "+".+ is deri%ed fro(C
",>.> - ordinary workin# days
".+ - " special days Aif worked= ' 16>K
1>.> - re#)lar holidays
"+".+ days
0y )sin# the abo%e indicated factors, the basic wa#e for the worked days and
holiday pay for the 1> re#)lar holidays are incl)ded in the (onthly rates. Thirty
percent A6>K= rest day pre(i)( has been inte#rated in factor 691., for all the
&)ndaysBrest days in a year incl)d-in# the last &)nday of A)#)st and in factors
61.+ and "+".+ for the two special days A$o%e(ber 1 and Dece(ber 61= )nder
5'ec)ti%e 1rder $o. ">6 of 19E7.
$ot incl)ded in the abo%e for()la is the pre(i)( pay d)e an e(ployee
whene%er work is rendered on an ordinary workin# day proclai(ed by the
President as a special day Athat is other than $o%. 1 and Dec. 61=.
+., 1ther Mandatory 0enefits. 7n appropriate cases, sec)rity #)ardsBsi(ilar per-
sonnel are entitled to the (andatory benefits as listed below, altho)#h the sa(e
(ay not be incl)ded in the (onthly cost distrib)tion in the contracts, e'cept the
re<)ired pre(i)(s for their co%era#eC
a. Maternity benefit as pro%ided )nder the && LawJ
b. &eparation pay if the ter(ination of e(ploy(ent is for
a)thori;ed ca)se as pro%ided by law and as en)(erated
belowC
.alf-Month Pay Per @ear of &er%ice, b)t in no case less than
1ne Month Pay, if separation is d)e toC
1. *etrench(ent or red)ction of personnel effected by
(ana#e(ent to pre%ent serio)s lossesJ
". Clos)re or cessation of operation of an establish(ent not
d)e to serio)s losses or financial re%ersesJ
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6. 7llness or disease not c)rable within a period of + (onths
and contin)ed e(ploy(ent is prohibited by law or pre4)dicial to
the e(ployeeOs health or that of co-e(ployeesJ or
. Lack of ser%ice assi#n(ent for a contin)o)s period of +
(onths.
1ne Month Pay Per @ear of &er%ice, if separation is d)e toC
1. 7nstallation of labor-sa%in# de%ice, s)ch as replace(ent of
e(ployees by e<)ip(entB(achineryJ
". *ed)ndancy, as when the position of the e(ployee has
been fo)nd to be s)rpl)sa#e or )nnecessary in the operation
of the a#encyJ
6. 7(possible reinstate(ent of the e(ployee to hisBher for(er
position or to a s)bstantially e<)i%alent position for reasons not
attrib)table to the fa)lt of the e(ployer, as when the
reinstate(ent ordered by a co(petent a)thority cannot be
i(ple(ented d)e to clos)re or cessation of op-erations of the
establish(entBe(ployer, or the position to which the e(ployee
is to be reinstated no lon#er e'ists and there is no s)bstan-
tially e<)i%alent position to which heBshe can be assi#ned.
c. Cash inco(e benefits )nder the &tate 7ns)rance 2)nd in
case of work-related sickness or other contin#encies.
d. *etire(ent pay #ranted by *. A. 7+1 to any sec)rity
#)ardBpersonnel who retires )nder an applicable e(ployer plan
or policy.
2or this p)rpose, the sec)rity ser%ice contractor shall create or
p)t )p a tr)st f)nd for retire(ent benefit. The Tr)st 2)nd
A#ree(ent shall be e'ec)ted by and between the tr)stor and
tr)stee in fa%or of the e(ployee-beneficiary for pay(ent of re-
tire(ent benefit in accordance with *. A. ,E7 and *. A. 7+1.
The 2)nd shall be ad(inistered and (aintained by a tr)st
co(pany, bank, in-%est(ent ho)se, pre-need co(pany or
corporation d)ly a)thori;ed to perfor( tr)st f)nction
e'cl)si%ely for collecti%e in%est(ent or re-in%est(ent of certain
(oney recei%ed in its capacity as tr)stee, or si(ilar
arran#e(ent as (ay be a#reed )pon in ac-cordance with law.
As s)ch, any pay(ent for retire(ent benefits collected in
ad%ance by the contractor fro( the principalBs shall be
deposited by the contractorBtr)stor to the tr)stee in fa%or of the
sec)rity #)ard as benefit )pon retire(ent or when hisBher
e(ploy(ent is ter(inated d)e to a)thori;ed ca)ses.
e. 1ther benefits #ranted by law, indi%id)al or collecti%e
a#ree(ent or co(pany policy or practice.
Se%. 7. +eductions from salary, - $o ded)ction shall be (ade fro( the salary of the sec)rity #)ardsBpersonnel,
e'cept forC
a. &&& contrib)tion
b. 5C contrib)tion
c. .DM2 contrib)tion
d. Philhealth contrib)tion
e. 3ithholdin# ta' fro( inco(e, pro%ided a proper withholdin# ta' receipt is iss)ed to the e(ployee
before the filin# of inco(e ta' ret)rn e%ery year
f. :nion d)es, if applicable
#. 1ther ded)ctions a)thori;ed by
Se%. ). Liability and resonsibilities of contractors and clients@rincials. 4
E.1 Jo#& (&+ '"8"r(* *#(1#*#0. - 3hen the sec)rity ser%ice contractor fails to pay the wa#es of its
sec)rity #)ardsBpersonnel, the principal shall be 4ointly and se%erally liable with the sec)rity ser%ice
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contractor to the e'tent of the work perfor(ed by s)ch e(-ployees )nder the contract, in the sa(e
(anner and e'tent that the principal is liable to its direct e(ployees.
7f there are wa#e increases or ad4)st(ents after the e'ec)tion of the ser%ice contract, the
prescribed increases in the wa#e rates of #)ards shall be borne by the principal and the ser%ice
contract shall be dee(ed a(ended accordin#ly. 7n the e%ent that the principal fails to pay the
prescribed increases, the sec)rity ser%ice contractor shall be 4ointly and se%erally liable with the
principal.
The sec)rity #)ardsO contract)al relationship is with their e(ployer, the sec)rity ser-%ice contractor.
Th)s, their i((ediate reco)rse for pay(ent of wa#e increase before liti#ation is with their direct
e(ployer, the sec)rity ser%ice contractor. 7n order for the sec)rity ser%ice contractor to co(ply with
the new rates, the consideration paid by the principal for the sec)rity #)ardsO wa#es has to be
ad4)sted in confor(ity with the (andated wa#e increase.
7n case of findin# of %iolations on wa#es and other labor standards d)e the sec)rity #)ards, the
D1L5 *e#ional Director shall ser%e s)((ons to both the sec)rity ser%ice con-tractor and the
principal to deter(ine the e'tent of liability of the parties.
E." So*#+(r0 *#(1#*#0. - 2or p)rposes of i((ediate relief, the principal shall be dee(ed as the direct
e(ployer of the sec)rity #)ardBpersonnel in any of the followin# cases, and therefore shall be
solidarily liable for whate%er (onetary clai(s the sec)rity #)ardBpersonnel (ay ha%e a#ainst his
e(ployerC
a. 3hen the sec)rity ser%ice contractor is fo)nd to be en#a#ed in labor-only
contractin#J contractin# o)t of work which will either displace its e(ployees or
red)ce their re#)lar work ho)rs or any other prohibited acti%ityJ
b. 3hen the sec)rity ser%ice contractor is declared #)ilty of )nfair labor practice,
#."., contractin# o)t of a 4ob, work or ser%ice bein# perfor(ed by )nion (e(bers
when s)ch will interfere with, restrain or coerce e(ployees in the e'ercise of their
ri#hts to self-or#ani;ationJ or
c. 3hen a %iolation of the rele%ant pro%isions of the Labor Code has been
established by the *e#ional Director in the e'ercise of hisBher enforce(ent
powers.
The principal shall also be dee(ed solidarily liable with the sec)rity ser%ice
contractor to the e'tent of accr)ed clai(s and benefits that the latter (ay owe to
its sec)rity #)ardsBpersonnel in the followin# instancesC
a. 3hen the license or b)siness per(it of the sec)rity ser%ice
contractor is cancelled, re%oked or not renewed by the
co(petent a)thority, or
b. 3hen the contract between the principal and the sec)rity
ser%ice contractor is preter(inated for reasons not attrib)table
to the fa)lt of the latter.
E.6. R"'%o&'#1#*##"' (&+ O1*#.(#o&' of S"$,r#0 S"r8#$" Co&r($or' (&+ Pr#&$#%(*' #& !"
E9"$,#o& of S"r8#$" Co&r($'. - The ser%ice contracts or a#ree(ents between a sec)rity ser%ice
contractor and its principalBs shall ens)re co(pliance with the (ini()( wa#e and other labor
standards )nder the laws, incl)din# the (andatory co%era#e by the &&&, 5C, Philhealth and
.DM2.
Fo%ern(ent a#encies or instr)(entalities en#a#in# sec)rity ser%ices fro( pri%ate sec)rity
a#encies shall likewise obser%e co(pliance with all labor laws and shall re<)ire the sec)rity ser%ice
contractor to s)b(it, a(on# others re<)ire(ents and as part of their bid, an )nder-takin# to pay
their workers the abo%e benefits.
E.. E""%#&. of r"$or+'. - The principals as indirect e(ployers shall keep and (aintain their own
separate records or files on the assi#n(ent of sec)rity #)ards in their pre(ises d)rin# the period of
the ser%ice contract, which shall be open for inspection and %erification by this Depart(ent. The
sec)rity a#ency, howe%er, as the direct e(ployer shall obser%e the r)le on #eneral record keepin#
)nder the Labor Code, as a(ended.
Se%. (. Right to security of tenure and due rocess. :
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9.1 &ec)rity #)ards and si(ilar personnel who ha%e beco(e re#)lar e(ployees shall en4oy
sec)rity of ten)re in their e(ploy(ent as pro%ided by law. Their ser%ices can only be ter(inated for
4)st or a)thori;ed ca)ses after d)e process.
Ter(ination for a 4)st ca)se or ca)ses as stated in Art. "E1 of the Labor Code does not entitle the
sec)rity #)ardBpersonnel to separation pay, )nless otherwise pro%ided in the e(-ployer policy or
indi%id)al contract or collecti%e a#ree(ent.
9." No#$" of T"rm#&(#o&. - 7n case of ter(ination of e(ploy(ent d)e to a)thori;ed ca)ses
pro%ided in Art. "E6 and "E of the Labor Code and in the s)cceedin# s)bsection, the e(ployer
shall ser%e a written notice on the sec)rity #)ardBpersonnel and the D1L5 at least one A1= (onth
before the intended date thereof.
9.6 R"'"r8"+ S(,'. - A sec)rity #)ard or si(ilar personnel (ay be placed in a workpool or on
reser%ed stat)s d)e to lack of ser%ice assi#n(ents after e'piration or ter(ination of the ser%ice
contract with the principal where heBshe is assi#ned, or d)e to the te(porary s)spension of a#ency
operations.
$o sec)rity #)ard or personnel can be placed in a workpool or on reser%ed stat)s in any of the
followin# sit)ationsC Aa= after e'piration of a ser%ice contract if there are other principals where
heBshe can be assi#nedJ Ab= as a (eas)re to constr)cti%ely dis(iss the sec)rity #)ardJ and Ac= as
an act of retaliation for filin# co(plaints a#ainst the e(ployer on %iolations of labor laws, a(on#
others.
7f, after a period of + (onths, the sec)rity a#encyBe(ployer cannot pro%ide work or #i%e an
assi#n(ent to the reser%ed sec)rity #)ard, the latter can be dis(issed fro( ser%ice and shall be
entitled to separation pay as described in s)bsection ,.+.
&ec)rity #)ards on reser%ed stat)s who accept e(ploy(ent in other sec)rity a#encies or
e(ployers before the end of the abo%e si'-(onth period (ay not be #i%en separation pay.
9.. Pr"8"&#8" ','%"&'#o&. - &)b4ect to the constit)tional ri#hts of the workers to sec)rity of ten)re
and the ri#ht to be protected a#ainst dis(issal e'cept for a 4)st and a)thori;ed ca)se and witho)t
pre4)dice to the re<)ire(ent of notice )nder Art. "E" of the Labor Code, a sec)rity #)ardBpersonnel
(ay be pre%enti%ely s)spended if his contin)ed e(ploy(ent poses a serio)s and i((inent threat
to life or property of the e(ployer, its principal or the #)ardOs co-workers.
$o pre%enti%e s)spension shall last lon#er than thirty A6>= days. The sec)rity a#ency shall
thereafter reinstate the sec)rity #)ardBpersonnel in hisBher for(er position or it (ay e'tend the
period of s)spension, pro%ided that d)rin# the period of e'tension, the a#ency pays the wa#es and
other benefits d)e the #)ardBpersonnel.
The e(ployer shall desi#nate a day, ti(e and place within the period of pre%enti%e s)spension,
with notice to the e(ployee, to hold a fact-findin# in%esti#ation th)s enablin# the s)spended
e(ployee to be heard and assisted by a co)nsel or representati%e, if heBshe so desires, of the
char#e a#ainst hi(Bher and thereby be e'oneratedJ or, )pon the e(ployeeOs fail)re to %indicate
hi(selfBherself, to find the e(ployee #)ilty and thereby, to ter(inate hisBher e(ploy(ent. &)ch
ter(ination, howe%er, shall not pre4)dice the ri#ht of the e(ployee to <)es-tion the se%erance of
relationship in the appropriate for)(.
The abo%e proced)re shall likewise be obser%ed by the e(ployerBa#ency in case the e(ploy(ent
is ter(inated d)e to any of the 4)st ca)ses.
9.,. R"%or of +#'m#''(*, "rm#&(#o& or r"#r"m"&. - The sec)rity ser%ice contractor shall s)b(it a
(onthly report of all dis(issals or ter(ination, incl)din# retire(ent, effected d)rin# the (onth to
the D1L5 *e#ional 1ffice ha%in# 4)risdiction o%er its (ain or branch office )sin# the prescribed
for( and indicatin# all infor(ation as re<)ired by D1L5 for policy and statistical p)rposes.
Se%. 14. Right to self:organiHation and collective bargaining. :
The sec)rity #)ards and other personnel e(ployed by the sec)rity ser%ice contractor shall ha%e the ri#ht to for(, 4oin
or assist in the for(ation of a labor or#ani;ation of their own choosin# for p)rposes of collecti%e bar#ainin# and to
en#a#e in concerted acti%ities which are not contrary to law incl)din# the ri#ht to strike.
Se%. 11. Penal rovision. - /iolation of any of the pro%isions of this F)idelines which are declared )nlawf)l or
p)nishable by law shall be p)nished accordin#ly.
Se%. 12. $ffect on e;isting issuances and agreements. ?
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This iss)ance shall ser%e as a #)ide for the D1L5 and its a#encies in the ad(inistration and enforce(ent of
applicable labor and social le#islations and their i(ple(entin# re#)lations.
$othin# herein shall be constr)ed to a)thori;e di(in)tion or red)ction of benefits bein# en4oyed by the sec)rity
#)ards and si(ilar personnel at the ti(e of iss)ance hereof.
This F)idelines s)persedes Depart(ent 1rder $o. > s. 199 and other e'istin# orders which are inconsistent hereto
and shall take effect i((ediately.
??RA 54() P!,#a/e Se%2!,/y A-en%y Law
??H,!,n- ". %""e!a/,#es
An independent contractor (ay beC
a. an indi%id)al person or
b. an or#ani;ation which ()st be re#istered
1. Corporation &5C
". Partnership &5C
6. :nion D1L5
. Cooperati%e CDA and D1L5
7f any of these or#ani;ations en#a#es in labor contractin#, it ()st co(ply with D1 $o. 1E->" partic)larly its
re<)ire(ent of re#istration. $on-re#istration creates the pres)(ption that the p)rported contractor is en#a#ed in
labor-only contractin#.
D1 $o 1 series of ">>7 clarified the applicability of D1 $o. 1E to C11P5*AT7/5&.
??$embe!s ". %""e!a/,#es as "wne!s and n"/ em1"yees
Cooperati%es or#ani;ed )nder *A +96E, otherwise known as PThe Cooperati%e Code of the PhilippinesQ are
co(posed of (e(bers. Me(bers of cooperati%es are not e(ployees. As s)ch, iss)es on ter(ination of their
(e(bership with the cooperati%e do not fall within the 4)risdiction of the Labor Arbiter.
6+5TLI*E 24B A*D 24C ARE $ISSI*;7
25. $ISCELLA*E+5S PR+:ISI+*S
A. SPECIAL TAPES +0 W+RDERS
-apprentice, learner ? handicapped workers AArts. ,7-E1=J D1 $o. +E->, &eries of ">> AApprenticeship ?
5(ploy(ent Pro#ra(= as a(ended by D1L5 Cir. $o. ".
APPRE*TICES
ART. 57. S/a/emen/ ". "b3e%/,#es. - This Title ai(sC
A1= To help (eet the de(and of the econo(y for trained (anpowerJ
A"= To establish a national apprenticeship pro#ra( thro)#h the participation of e(ployers, workers
and #o%ern(ent and non-#o%ern(ent a#enciesJ and
A6= To establish apprenticeship standards for the protection of apprentices.
ART. 5). De.,n,/,"n ". Te!ms. - As )sed in this TitleC
Aa= TA%%r"&#$"'!#%T (eans practical trainin# on the 4ob s)pple(ented by related theoretical
instr)ction.
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Ab= An T(%%r"&#$"T is a worker who is co%ered by a written apprenticeship a#ree(ent with an
indi%id)al e(ployer or any of the entities reco#ni;ed )nder this Chapter.
Ac= An T(%%r"&#$"(1*" o$$,%(#o&T (eans any trade, for( of e(ploy(ent or occ)pation which
re<)ires (ore than three A6= (onths of practical trainin# on the 4ob s)pple(ented by related
theoretical instr)ction.
Ad= TA%%r"&#$"'!#% (.r""m"&T is an e(ploy(ent contract wherein the e(ployer binds hi(self to
train the apprentice and the apprentice in t)rn accepts the ter(s of trainin#.
ART. 5(. L2a1,.,%a/,"ns ". a!en/,%e. - To <)alify as an apprentice, a person shallC
Aa= 0e at least fo)rteen A1= years of a#eJ
Ab= Possess %ocational aptit)de and capacity for appropriate testsJ and
Ac= Possess the ability to co(prehend and follow oral and written instr)ctions.
Trade and ind)stry associations (ay reco((end to the &ecretary of Labor appropriate ed)cational
re<)ire(ents for different occ)pations.
ART. 64. Em1"ymen/ ". a!en/,%es. - 1nly e(ployers in the hi#hly technical ind)stries (ay
e(ploy apprentices and only in apprenticeable occ)pations appro%ed by the &ecretary of Labor
and 5(ploy(ent. AAs a(ended by &ection 1, 5'ec)ti%e 1rder $o. 111, Dece(ber ", 19E+=.
ART. 61. C"n/en/s ". a!en/,%es&, a-!eemen/s. - Apprenticeship a#ree(ents, incl)din# the
wa#e rates of apprentices, shall confor( to the r)les iss)ed by the &ecretary of Labor and
5(ploy(ent. The period of apprenticeship shall not e'ceed si' (onths. Apprenticeship
a#ree(ents pro%idin# for wa#e rates below the le#al (ini()( wa#e, which in no case shall start
below 7, percent of the applicable (ini()( wa#e, (ay be entered into only in accordance with
apprenticeship pro#ra(s d)ly appro%ed by the &ecretary of Labor and 5(ploy(ent. The
Depart(ent shall de%elop standard (odel pro#ra(s of apprenticeship. AAs a(ended by &ection 1,
5'ec)ti%e 1rder $o. 111, Dece(ber ", 19E+=.
ART. 62. S,-n,n- ". a!en/,%es&, a-!eemen/. -5%ery apprenticeship a#ree(ent shall be
si#ned by the e(ployer or his a#ent, or by an a)thori;ed representati%e of any of the reco#ni;ed
or#ani;ations, associations or #ro)ps and by the apprentice.
An apprenticeship a#ree(ent with a (inor shall be si#ned in his behalf by his parent or #)ardian, if
the latter is not a%ailable, by an a)thori;ed representati%e of the Depart(ent of Labor, and the
sa(e shall be bindin# d)rin# its lifeti(e.
5%ery apprenticeship a#ree(ent entered into )nder this Title shall be ratified by the appropriate
apprenticeship co((ittees, if any, and a copy thereof shall be f)rnished both the e(ployer and the
apprentice.
ART. 6>. :en2e ". a!en/,%es&, !"-!ams. - Any fir(, e(ployer, #ro)p or association, ind)stry
or#ani;ation or ci%ic #ro)p wishin# to or#ani;e an apprenticeship pro#ra( (ay choose fro( any of
the followin# apprenticeship sche(es as the trainin# %en)e for apprenticeC
Aa= Apprenticeship cond)cted entirely by and within the sponsorin# fir(, establish(ent or entityJ
Ab= Apprenticeship entirely within a Depart(ent of Labor and 5(ploy(ent trainin# center or other
p)blic trainin# instit)tionJ or
Ac= 7nitial 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 entity d)rin# the final sta#e of trainin#.
ART. 64. S"ns"!,n- ". a!en/,%es&, !"-!am. - Any of the apprenticeship sche(es
reco#ni;ed herein (ay be )ndertaken or sponsored by a sin#le e(ployer or fir( or by a #ro)p or
association thereof or by a ci%ic or#ani;ation. Act)al trainin# of apprentices (ay be )ndertakenC
Aa= 7n the pre(ises of the sponsorin# e(ployer in the case of indi%id)al apprenticeship pro#ra(sJ
Ab= 7n the pre(ises of one or se%eral desi#nated fir(s in the case of pro#ra(s sponsored by a
#ro)p or association of e(ployers or by a ci%ic or#ani;ationJ or
Ac= 7n a Depart(ent of Labor and 5(ploy(ent trainin# center or other p)blic trainin# instit)tion.
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ART. 65. In#es/,-a/,"n ". #,"1a/,"n ". a!en/,%es&, a-!eemen/. ? :pon co(plaint of any
interested person or )pon its own initiati%e, the appropriate a#ency of the Depart(ent of Labor and
5(ploy(ent or its a)thori;ed representati%e shall in%esti#ate any %iolation of an apprenticeship
a#ree(ent p)rs)ant to s)ch r)les and re#)lations as (ay be prescribed by the &ecretary of Labor
and 5(ploy(ent.
ART. 66. Aea1 /" /&e Se%!e/a!y ". Lab"! and Em1"ymen/. - The decision of the a)thori;ed
a#ency of the Depart(ent of Labor and 5(ploy(ent (ay be appealed by any a##rie%ed person to
the &ecretary of Labor and 5(ploy(ent within fi%e A,= days fro( receipt of the decision. The
decision of the &ecretary of Labor and 5(ploy(ent shall be final and e'ec)tory.
ART. 67. EK&a2s/,"n ". adm,n,s/!a/,#e !emed,es. - $o person shall instit)te any action for the
enforce(ent of any apprenticeship a#ree(ent or da(a#es for breach of any s)ch a#ree(ent,
)nless he has e'ha)sted all a%ailable ad(inistrati%e re(edies.
ART. 6). A/,/2de /es/,n- ". a1,%an/s. - Consonant with the (ini()( <)alifications of
apprentice-applicants re<)ired )nder this Chapter, e(ployers or entities with d)ly reco#ni;ed
apprenticeship pro#ra(s shall ha%e pri(ary responsibility for pro%idin# appropriate aptit)de tests in
the selection of apprentices. 7f they do not ha%e ade<)ate facilities for the p)rpose, the Depart(ent
of Labor and 5(ploy(ent shall perfor( the ser%ice free of char#e.
ART. 6(. Res"ns,b,1,/y ."! /&e"!e/,%a1 ,ns/!2%/,"n. - &)pple(entary theoretical instr)ction to
apprentices in cases where the pro#ra( is )ndertaken in the plant (ay be done by the e(ployer. 7f
the latter is not prepared to ass)(e the responsibility, the sa(e (ay be dele#ated to an
appropriate #o%ern(ent a#ency.
ART. 74. :"12n/a!y "!-an,@a/,"n ". a!en/,%es&, !"-!amsE eKem/,"ns. - Aa= The
or#ani;ation of apprenticeship pro#ra( shall be pri(arily a %ol)ntary )ndertakin# by e(ployersJ
Ab= 3hen national sec)rity or partic)lar re<)ire(ents of econo(ic de%elop(ent so de(and, the
President of the Philippines (ay re<)ire co(p)lsory trainin# of apprentices in certain trades,
occ)pations, 4obs or e(ploy(ent le%els where shorta#e of trained (anpower is dee(ed critical as
deter(ined by the &ecretary of Labor and 5(ploy(ent. Appropriate r)les in this connection shall
be pro()l#ated by the &ecretary of Labor and 5(ploy(ent as the need arisesJ and
Ac= 3here ser%ices of forei#n technicians are )tili;ed by pri%ate co(panies in apprenticeable
trades, said co(panies are re<)ired to set )p appropriate apprenticeship pro#ra(s.
ART. 71. Ded2%/,b,1,/y ". /!a,n,n- %"s/s. - An additional ded)ction fro( ta'able inco(e of one-
half A1B"= of the %al)e of labor trainin# e'penses inc)rred for de%elopin# the prod)cti%ity and
efficiency of apprentices shall be #ranted to the person or enterprise or#ani;in# an apprenticeship
pro#ra(C Pro%ided, That s)ch pro#ra( is d)ly reco#ni;ed by the Depart(ent of Labor and
5(ploy(entC Pro%ided, f)rther, That s)ch ded)ction shall not e'ceed ten A1>K= percent of direct
labor wa#eC and Pro%ided, finally, That the person or enterprise who wishes to a%ail hi(self or itself
of this incenti%e sho)ld pay his apprentices the (ini()( wa#e.
ART. 72. A!en/,%es w,/&"2/ %"mensa/,"n. - The &ecretary of Labor and 5(ploy(ent (ay
a)thori;e the hirin# of apprentices witho)t co(pensation whose trainin# on the 4ob is re<)ired by
the school or trainin# pro#ra( c)rric)l)( or as re<)isite for #rad)ation or board e'a(ination.
LEAR*ERS
ART. 7>. Lea!ne!s de.,ned. - Learners are persons hired as trainees in se(i-skilled and other
ind)strial occ)pations which are non-apprenticeable and which (ay be learned thro)#h practical
trainin# on the 4ob in a relati%ely short period of ti(e which shall not e'ceed three A6= (onths.
ART. 74. W&en 1ea!ne!s may be &,!ed. - Learners (ay be e(ployed when no e'perienced
workers are a%ailable, the e(ploy(ent of learners is necessary to pre%ent c)rtail(ent of
e(ploy(ent opport)nities, and the e(ploy(ent does not create )nfair co(petition in ter(s of labor
costs or i(pair or lower workin# standards.
ART. 75. Lea!ne!s&, a-!eemen/. - Any e(ployer desirin# to e(ploy learners shall enter into a
learnership a#ree(ent with the(, which a#ree(ent shall incl)deC
Aa= The na(es and addresses of the learnersJ
Ab= The d)ration of the learnership period, which shall not e'ceed three A6= (onthsJ
Ac= The wa#es or salary rates of the learners which shall be#in at not less than se%enty-fi%e percent
A7,K= of the applicable (ini()( wa#eJ and
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Ad= A co((it(ent to e(ploy the learners if they so desire, as re#)lar e(ployees )pon co(pletion
of the learnership. All learners who ha%e been allowed or s)ffered to work d)rin# the first two A"=
(onths shall be dee(ed re#)lar e(ployees if trainin# is ter(inated by the e(ployer before the end
of the stip)lated period thro)#h no fa)lt of the learners.
The learnership a#ree(ent shall be s)b4ect to inspection by the &ecretary of Labor and
5(ploy(ent or his d)ly a)thori;ed representati%e.
ART. 76. Lea!ne!s ,n ,e%ew"!=. - Learners e(ployed in piece or incenti%e-rate 4obs d)rin# the
trainin# period shall be paid in f)ll for the work done.
ART. 77. Pena1/y %1a2se. - Any %iolation of this Chapter or its i(ple(entin# r)les and re#)lations
shall be s)b4ect to the #eneral penalty cla)se pro%ided for in this Code.

HA*DICAPPED W+RDERS
ART. 7). De.,n,/,"n. - .andicapped workers are those whose earnin# capacity is i(paired by a#e
or physical or (ental deficiency or in4)ry.
ART. 7(. W&en em1"yab1e. - .andicapped workers (ay be e(ployed when their e(ploy(ent is
necessary to pre%ent c)rtail(ent of e(ploy(ent opport)nities and when it does not create )nfair
co(petition in labor costs or i(pair or lower workin# standards.
ART. )4. Em1"ymen/ a-!eemen/. - Any e(ployer who e(ploys handicapped workers shall enter
into an e(ploy(ent a#ree(ent with the(, which a#ree(ent shall incl)deC
a. The na(es and addresses of the handicapped workers to be e(ployedJ
b. The rate to be paid the handicapped workers which shall not be less than
se%enty fi%e A7,K= percent of the applicable le#al (ini()( wa#eJ
c. The d)ration of e(ploy(ent periodJ and
d. The work to be perfor(ed by handicapped workers.
The e(ploy(ent a#ree(ent shall be s)b4ect to inspection by the &ecretary of Labor or his d)ly
a)thori;ed representati%e.
ART. )1. E1,-,b,1,/y ."! a!en/,%es&,. - &)b4ect to the appropriate pro%isions of this Code,
handicapped workers (ay be hired as apprentices or learners if their handicap is not s)ch as to
effecti%ely i(pede the perfor(ance of 4ob operations in the partic)lar occ)pations for which they
are hired.

DEPART$E*T +RDER *+. 6)?44
F)idelines in the 7(ple(entation of the Iasanayan at .anapb)hay Pro#ra(
AAn Apprenticeship and 5(ploy(ent Pro#ra(=
A. +B8ECTI:E
&pecifically, the pro#ra( shallC

1. pro%ide opport)nity for new entrants to the labor force to ac<)ire e'perience and skillsJ
". #enerate co((it(ent fro( enterprises in de%elopin# the skills of the 2ilipino workforceJ
6. facilitate the absorption of apprentices into the re#)lar workforce after their apprenticeship.
B. DE0I*ITI+* +0 TER$S
1.Apprenticeship-trainin# within e(ploy(ent in%ol%in# a contract between an apprentice and an
enterprise on an apprenticeable occ)pation.
". Apprentice-a person )nder#oin# trainin# for an appro%ed apprenticeable occ)pation d)rin# an
established period and co%ered by an apprenticeship a#ree(ent.
6. Apprenticeship A#ree(ent-a contract wherein a prospecti%e enterprise binds hi(self to train the
apprentice who, in t)rn, accepts the ter(s of trainin# for a reco#ni;ed apprenticeable occ)pation
e(phasi;in# the ri#hts, d)ties and responsibilities of each party.
.Apprenticeable 1cc)pation-an occ)pation officially appro%ed for apprenticeship by T5&DA.
,. Trainin# Certificate-a doc)(ent iss)ed by the participatin# enterprise to an apprentice who
co(pletes the apprenticeship period.
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+. 5nterprise-a participatin# establish(ent that directly en#a#es an apprentice based on an
appro%ed Apprenticeship Pro#ra(.
7. Letter of Application-a letter si#nifyin# the intentions of the enterprise to re#ister in the
Apprenticeship Pro#ra(.
E. Certificate of *e#istration-a doc)(ent iss)ed by T5&DA #rantin# an a)thority to a participatin#
enterprise to offer the pro#ra( in a partic)lar occ)pation.
C. C+:ERA;E:
1. Any enterprise d)ly re#istered with the appropriate #o%ern(ent a)thorities with ten A1>= or (ore
re#)lar workers is <)alified to 4oin the pro#ra(. The n)(ber of apprentices for each participatin#
enterprise shall not be (ore than "> percent of its total re#)lar workforce.
". Any )ne(ployed person 1, years old and abo%e (ay apply for apprenticeship with any
participatin# enterprise.
D. APPRE*TICESHIP PERI+D
The apprenticeship period shall not be less than fo)r A= (onths b)t not (ore than si' A+=
(onths. .owe%er, the participatin# e(ployer has the option to hire the apprentice e%en prior to the
co(pletion of the apprenticeship period.
E. E*TITLE$E*T +0 THE APPRE*TICES
Apprentices shall be entitled to recei%e a wa#e not less than 7, percent of the pre%ailin#
(ini()( wa#e and benefits s)ch as social sec)rity and health benefits and o%erti(e pay. An
apprentice can work o%erti(e pro%ided there are no re#)lar workers to do the 4ob and the ti(e
spent on o%erti(e work is d)ly credited to his trainin# ho)rs.
0. I*CE*TI:ES T+ PARTICIPATI*; E*TERPRISES
Participatin# enterprises shall be entitled to any of the followin#C
1. Pay(ent of 7,K of the pre%ailin# (ini()( wa#e to apprenticesJ
". an additional ded)ction fro( ta'able inco(e of L of the %al)e of labor trainin# e'penses inc)rred
for de%elopin# the prod)cti%ity and efficiency of apprentices shall be #ranted to the person or
enterprise or#ani;in# an apprenticeship pro#ra(C Pro%ided, howe%er, that s)ch ded)ction shall not
e'ceed 1>K of direct labor wa#eJ and that the person or enterprise who wishes to a%ail hi(self or
itself of this incenti%e sho)ld pay his apprentices the (ini()( wa#e. AAs pro%ided for )nder 0ook
77, Title 77, Chapter 7, Article 71 of the Labor Code=
;. RE;ISTRATI+* +0 APPRE*TICESHIP PR+;RA$
The enterprise shall re#ister its apprenticeship pro#ra( with any of the T5&DA Pro%incial
1ffices. 7t shall s)b(it the followin#C
1. Letter of Application
". Certification that the n)(ber of apprentices to be hired is not (ore than ">K of the total re#)lar
workforceJ and
6. &kills Trainin# 1)tline.
$o enterprise shall be allowed to hire apprenticeship )nless its apprenticeship pro#ra( is
re#istered and appro%ed by T5&DA.
H. APPRE*TICESHIP A;REE$E*T
$o apprenticeship trainin# will co((ence )ntil an Apprenticeship A#ree(ent has been
for#ed between an enterprise and an apprentice.
D.1.L.5. C7*C:LA* $o. "
&eries of ">>+
Amend,n- Ce!/a,n P!"#,s,"ns ". Dea!/men/ +!de! *". 6)?44
Consistent with the pro%isions of Article ,E Ac= of Title 77, 0ook 77, of the Labor Code of the Philippines,
&ection D of the Depart(ent 1rder $o. +E->, &eries of ">>, entitled <;2,de1,nes ,n /&e
Im1emen/a/,"n ". /&e Dasanayan a/ Hanab2&ay P!"-!am 6A!en/,%es&, and Em1"ymen/
P!"-!am7'<Z is hereby a(ended to read as followsC
MD. Apprenticeship Period
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The apprenticeship shall be for a period of (ore than three (onths b)t not o%er si' (onths. .owe%er,
the e(ployer has the option to e(ploy the apprentice e%en before the co(pletion of the
apprenticeship period.M
-<)alificationsJ i(portanceJ nat)reJ <)alified e(ployersJ appro%al of D1L5J incenti%es of e(ployerJ d)rationJ
wa#e ratesJ ho)rs of workBo%erti(eJ enforce(ent of a#ree(ent
L5ALI0ICATI+*S
A!en/,%es:
1. M)st be fifteen A1,= years old or abo%e.
". 0e physically fit for the occ)pation in which he desires to be trained.
6. Possess %ocational aptit)de and capacity for appropriate tests.
. 3ith the ability to co(prehend and follow oral and written instr)ctions.
Lea!ne!s:
1. May be e(ployed when no e'perienced workers are a%ailable.
". 3hen the e(ploy(ent of learners is necessary to pre%ent c)rtail(ent of
e(ploy(ent opport)nities.
6. 3hen the e(ploy(ent of learners does not create )nfair co(petition in
ter(s of labor costs or i(pair or lower workin# standards.
Hand,%aed W"!=e!s:
1. May be e(ployed when their e(ploy(ent is necessary to pre%ent
c)rtail(ent of e(ploy(ent opport)nities.
". 3hen it does not create )nfair co(petition in labor costs or i(pair or lower
workin# standards.
*AT5RE
A!en/,%esC trains hi#hly-skilled 4ob.
Lea!ne!sC trains in se(i-skilled 4ob or in ind)strial occ)pations that re<)ires trainin#.
Hand,%aed W"!=e!sC Contract)al type of e(ploy(ent.
L5ALI0IED E$PL+AERS
A!en/,%esC 5(ployers in the hi#hly technical ind)stries and only in apprenticeable
occ)pation appro%ed by the (inister of Labor and 5(ploy(ent.
APPR+:AL +0 D+LE
A!en/,%esC 7t needs prior appro%al of D1L5 thro)#h the T5&DA. Absence of the
appro%al considers the hired apprentice as an e(ployee.
Lea!ne!s: Do not need prior appro%al by D1L5 b)t s)b4ect to D1L58s inspection
I*CE*TI:ES +0 E$PL+AER
A!en/,%es:
1. 7, K pay(ent of the (ini()( wa#e to apprentices.
". ded)ction fro( ta'able inco(e of L of the %al)e of labor trainin# e'penses.
6.Technical and other assistance fro( D1L5 and other #o%ern(ent a#encies.
. 5(ployers are ass)red of re#)lar e(ployees after si' A+= (onths of
apprenticeship.
Hand,%aed W"!=e!s:
1. 5ntitled to an additional ded)ction fro( their #ross inco(e of ",K of the
total a(o)nt paid to disabled.
". Ded)ction fro( their ta'able inco(e of ,>K of the direct costs of the
i(pro%e(ents or (odifications.
D5RATI+*
A!en/,%esC $ot less than fo)r A= (onths nor (ore than si' A+= (onths.
Lea!ne!s: less than three A6= (onths.
Hand,%aed: $o fi'ed d)ration as to hirin# so that the e(ployer (ay fi' the d)ration.
WA;E RATES
A!en/,%e: Fen. *)le- e(ployer ()st pay at least 7,K of the (ini()( wa#e.
5'ceptionsC 1. Trainin# on the 4ob is re<)ired by the school or trainin#
pro#ra( c)rric)l)(J or
". 7t is a re<)isite for #rad)ation or board e'a(ination.
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Lea!ne!s: M)st be paid not less than 7,K of the (ini()( wa#e if the a#ree(ent is silent
on the wa#e rate or if e(ployed in piece-rate 4obs or incenti%e-rate 4obs
d)rin# the trainin# period, ()st be paid in f)ll for the work done.
Hand,%aed W"!=e!sC Pay(ent shall not be less than 7,K of the (ini()( wa#e.
H+5RS +0 W+RDC+:ERTI$E
A!en/,%es: .o)rs of work shall not e'ceed the (ini()( n)(ber of ho)rs of work
prescribed by law.
Can work o%erti(e pro%ided there are no re#)lar workers to do the 4ob,
is paid o%erti(e pay accordin#ly and the ti(e spent on o%erti(e work is d)ly
credited to his trainin# ho)rs.
E*0+RCE$E*T +0 A;REE$E*T
A!en/,%esC $o person shall instit)te any action for the enforce(ent of any apprenticeship
a#ree(ent or for da(a#es for breach thereof, )nless he has e'ha)sted all
a%ailable ad(inistrati%e re(edies.
The plant apprenticeship co((ittee shall ha%e initial responsibility for settlin#
differences arisin# o)t of apprenticeship a#ree(ents.
-*A 779+ AT5&DA ACT of 199=

A* ACT CREATI*; THE TECH*ICAL ED5CATI+* A*D SDILLS DE:EL+P$E*T A5TH+RITA'
PR+:IDI*; 0+R ITS P+WERS' STR5CT5RE A*D 0+R +THER P5RP+SES.
SEC. 2. De%1a!a/,"n ". P"1,%y. - 7 t is hereby declared the policy of the &tate to pro%ide rele%ant,
accessible, hi#h <)ality and efficient technical ed)cation and skills de%elop(ent in s)pport of the
de%elop(ent of hi#h <)ality 2ilipino (iddle-le%el (anpower responsi%e to and in accordance with
Philippine de%elop(ent #oals and priorities.
The &tate shall enco)ra#e acti%e participation of %ario)s concerned sectors, partic)larly pri%ate
enterprises, bein# direct participants in and i((ediate beneficiaries of a trained and skilled
workforce, in pro%idin# technical ed)cation and skills de%elop(ent opport)nities.

SEC. 4. De.,n,/,"n ". Te!ms. ? As )sed in this ActC
M&killM shall (ean the ac<)ired and practiced ability to carry o)t a task or 4obJ
M&kills De%elop(entM shall (ean the process thro)#h which learners and workers are
syste(atically pro%ided with learnin# opport)nities to ac<)ire or )p#rade, or both, their ability,
knowled#e and beha%ior pattern re<)ired as <)alifications for a 4ob or ran#e of 4obs in a #i%en
occ)pational areaJ
MTechnical 5d)cationM shall refer to the ed)cation process desi#ned at post-secondary and lower
tertiary le%els, officially reco#ni;ed as non-de#ree pro#ra(s ai(ed at preparin# technicians, para-
professionals and other cate#ories of (iddle-le%el workers by pro%idin# the( with a broad ran#e of
#eneral ed)cation, theoretical, scientific and technolo#ical st)dies, and related 4ob skills trainin#J
MTradeM shall (ean any #ro)p of interrelated 4obs or any occ)pation which is traditionally or
officially reco#ni;ed as craft or artisan in nat)re re<)irin# specific <)alifications that can be ac<)ired
thro)#h work e'perience andBor trainin#J
MMiddle-Le%el ManpowerM refers to thoseC
1.who ha%e ac<)ired practical skills and knowled#e thro)#h for(al or non-for(al ed)cation and
trainin# e<)i%alent to at least a secondary ed)cation b)t preferably at post-secondary ed)cation with
a correspondin# de#ree of diplo(aJ or
".skilled workers who ha%e beco(e hi#hly co(petent in their trade or craft as attested by ind)stryJ

MPri%ate 5nterprisesM refers to an econo(ic syste( )nder which property of all kinds can be
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pri%ately owned and in which indi%id)als, alone or in association with another, can e(bark on a
b)siness acti%ity. This incl)des ind)strial, a#ric)lt)ral, or a#ro-ind)strial establish(ents en#a#ed in
the prod)ction, (an)fact)rin#, processin#, repackin# or asse(bly of #oods incl)din# ser%ice-oriented
enterprisesJ
MTrainersM shall (ean persons who direct the practice of skills towards i((ediate i(pro%e(ent in
so(e taskJ
MTrainorsBtrainersM shall (ean persons who pro%ide trainin# to trainers ai(ed at de%elopin# the
latterOs capacities for i(partin# attit)des, knowled#e, skills and beha%ior patters re<)ired for specific
4obs, tasks, occ)pations or #ro)p of related occ)pations.
MTraineesM shall (ean persons who are participants in a %ocational, ad(inistrati%e or technical
trainin# pro#ra( for the p)rpose of ac<)irin# and de%elopin# 4ob-related skillsJ

MApprenticeshipM trainin# within e(ploy(ent with co(p)lsory related theoretical instr)ction
in%ol%in# a contract between an apprentice and an e(ployer on an appro%ed apprenticeable
occ)pationJ

<A!en/,%eM is a person )nder#oin# trainin# for an appro%ed apprenticeable occ)pation d)rin# an
apprenticeship a#ree(entJ
MApprenticeship A#ree(entM is a contract wherein a prospecti%e e(ployer binds hi(self to train the
apprentice who in t)rn accepts the ter(s of trainin# for a reco#ni;ed apprenticeable occ)pation
e(phasi;in# the ri#hts, d)ties and responsibilities of each partyJ
MApprenticeable 1cc)pationM is an occ)pation officially endorsed by a tripartite body and appro%ed
for apprenticeable by the A)thorityJ
MLea!ne!s< refers to persons hired as trainees in se(i-skilled and other ind)strial occ)pations
which are non-apprenticeable. Learnership pro#ra(s ()st be appro%ed by the A)thorityJ

M:ser-LedM or MMarket-Dri%en &trate#yM refers to a strate#y which pro(otes stren#thened linka#es
between ed)cationalBtrainin# instit)tions and ind)stry to ens)re that appropriate skills and knowled#e
are pro%ided by the ed)cational syste(J
MD)al &yste(BTrainin#M refers to a deli%ery syste( of <)ality technical and %ocational ed)cation
which re<)ires trainin# to be carried o)t alternately in two %en)esC in-school and in the prod)ction
plant. 7n- school trainin# pro%ides the trainee the theoretical fo)ndation, basic trainin#, #)idance and
h)(an for(ation, while in-plant trainin# de%elops his skills and proficiency in act)al work conditions
as it contin)es to inc)lcate personal discipline and work %al)esJ

MLe%y Frant &yste(M refers to a le#al contrib)tion fro( participatin# e(ployers who wo)ld be
beneficiaries of the pro#ra( Aoften as a percenta#e of the payroll= which is s)bse<)ently t)rned o%er
or rebated to enterprises offerin# e(ployee trainin# pro#ra(s.
SEC. 5. Te%&n,%a1 Ed2%a/,"n and S=,11s De#e1"men/ A2/&"!,/yE C!ea/,"n. - To i(ple(ent the
policy declared in this Act, there is hereby created a Technical 5d)cation and &kills De%elop(ent
A)thority AT5&DA=, hereinafter referred to as the A)thority, which shall replace and absorb the
$ational Manpower and @o)th Co)ncil A$M@C=, the 0)rea) of Technical and /ocational 5d)cation
A0T/5= and the personnel and f)nctions pertainin# to technical-%ocational ed)cation in the re#ional
offices of the Depart(ent of 5d)cation, C)lt)re and &ports AD5C&= and the apprenticeship pro#ra(
of the 0)rea) of Local 5(ploy(ent of the Depart(ent of Labor and 5(ploy(ent.
&5C. E. Po)"r' (&+ F,&$#o&' of !" Bo(r+. - The A)thority shall pri(arily be responsible for
for()latin#, contin)in#, coordinated and f)lly inte#rated technical ed)cation and skills de%elop(ent
policies, plans and pro#ra(s takin# into consideration the followin#C
The &tate policy declared herein of #i%in# new direction and thr)sts to efforts in de%elopin# the
<)ality of 2ilipino h)(an reso)rce thro)#h technical ed)cation and skills de%elop(entJ

The i(ple(entation of the abo%e-(entioned policy re<)ires the coordination and operation of
policies, plans, and pro#ra(s of different concerned sectors of Philippine societyJ

5<)al participation of representati%es of ind)stry #ro)ps, trade associations, e(ployers, workers
and #o%ern(ent shall be (ade the r)le in order to ens)re that )r#ent needs and reco((endations
are readily addressedJ and

7(pro%ed linka#es between ind)stry, labor and #o%ern(ent shall be #i%en priority in the
for()lation of any national-le%el plan.

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The 0oard, shall ha%e the followin# powersC

1. pro()l#ate, after d)e cons)ltation with ind)stry #ro)ps, trade associations, e(ployers,
workers, policies, plans, pro#ra(s and #)idelines as (ay be necessary for the effecti%e
i(ple(entation of this ActJ

". or#ani;e and constit)te %ario)s standin# co((ittees, s)bsidiary #ro)ps, or technical workin#
#ro)ps for efficient inte#ration, coordination and (onitorin# technical ed)cation and skills
de%elop(ent pro#ra(s at the national, re#ional, and local le%elsJ

6. enter into, (ake, e'ec)te, perfor( and carry-o)t do(estic and forei#n contracts s)b4ect to
e'istin# laws, r)les and re#)lations.

. restr)ct)re the entire s)b-sector consistin# of all instit)tions and pro#ra(s in%ol%ed in the
pro(otion and de%elop(ent of (iddle-le%el (anpower thro)#h )p#radin#, (er#er andBor phase-o)t
followin# a )ser-led strate#yJ

,. appro%e trade skills standards and trade tests as established and cond)cted by pri%ate
ind)striesJ

+. establish and ad(inister a syste( of accreditation of both p)blic and pri%ate instit)tionsJ

7. establish, de%elop and s)pport instit)tionsO trainorsO trainin# andBor pro#ra(sJ

E. lend s)pport and enco)ra#e increasin# )tili;ation of the d)al trainin# syste( as pro%ided for by
*ep)blic Act. $o. 7+E+J

9. e'act reasonable fees and char#es for s)ch tests and trainin#s cond)cted and retain s)ch
earnin#s for its own )se, s)b4ect to #)idelines pro()l#ated by the A)thorityJ

1>. allocate reso)rces, based on the &ecretariatOs reco((endations for the pro#ra(s and
s)b4ects it shall )ndertake p)rs)ant to appro%ed $ational Technical 5d)cation and &kills
De%elop(ent PlanJ

11. deter(ine and appro%e syste(atic f)ndin# sche(es s)ch as the Le%y and Frant sche(e for
technical ed)cation and skills de%elop(ent p)rposesJ

1". create, when dee(ed necessary, an Ad%isory Co((ittee which shall pro%ide e'pert and
technical ad%ice to the 0oard to be chosen fro( the acade(e and the pri%ate sectorC Pro%ided, That
in case the Ad%isory Co((ittee is created, the 0oard is hereby a)thori;ed to set aside a portion of its
appropriation for its operationJ and

16. perfor( s)ch other d)ties and f)nctions necessary to carry o)t the pro%isions of this Act
consistent with the p)rposes of the creation of T5&DA.
SEC. 1). T!ans.e! ". /&e A!en/,%es&, P!"-!am. - The Apprenticeship Pro#ra( of the 0)rea) of
Local 5(ploy(ent of the Depart(ent of Labor and 5(ploy(ent shall be transferred to the A)thority
which shall i(ple(ent and ad(inister said pro#ra( in accordance with e'istin# laws, r)les and
re#)lations.
SEC. 1(. Te%&n,%a1 Ed2%a/,"n and S=,11s De#e1"men/ C"mm,//ees. - The A)thority shall
establish Technical 5d)cation and &kills De%elop(ent Co((ittees at the re#ional and local le%els to
coordinate and (onitor the deli%ery of all skills de%elop(ent acti%ities by the p)blic and pri%ate
sectors. These co((ittees shall likewise ser%e as the Technical 5d)cation and &kills De%elop(ent
Co((ittees of the *e#ional and local de%elop(ent co)ncils. The co(positions of the Technical
5d)cation and &kills de%elop(ent Co((ittees shall be deter(ined by the Director-Feneral s)b4ect
to the #)idelines to be
pro()l#ated by the A)thority.
SEC. 24. S=,11s De#e1"men/ Cen/e!s. - The A)thority shall stren#then the network of national,
re#ional and local skills trainin# centers for the p)rpose of pro(otin# skills de%elop(ent. This
network shall incl)de skills trainin# centers in %ocational and technical schools, technical instit)tes,
polytechnic colle#es, and all other d)ly accredited p)blic and pri%ate d)al syste( ed)cational
instit)tions. The technical ed)cation and skills de%elop(ent centers shall be ad(inistered and
operated )nder s)ch r)les and re#)lations as (ay be established by the A)thority in accordance with
the $ational Technical 5d)cation and &kills De%elop(ent Plan.
SEC. 21. 0"!m21a/,"n ". a C"m!e&ens,#e De#e1"men/ P1an ."! $,dd1e?Le#e1 $an"we!. - The
A)thority shall for()late a co(prehensi%e de%elop(ent plan for (iddle-le%el (anpower based on a
national e(ploy(ent plan or policies for the opti()( allocation, de%elop(ent and )tili;ation of skilled
workers for e(ploy(ent entreprene)rship and technolo#y de%elop(ent for econo(ic and social
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#rowth. This plan shall after adoption by the A)thority be )pdated periodically and s)b(itted to the
President of the Philippines for appro%al. Thereafter, it shall be the plan for the technical ed)cation
and skills de%elop(ent for the entire co)ntry within the fra(ework of the $ational De%elop(ent Plan.
The A)thority shall direct the T5&DA &ecretariat to call on its (e(ber-a#encies, the pri%ate sector
and the acade(e to assist in this effort. The co(prehensi%e plan shall pro%ide for a refor(ed
ind)stry-based trainin# pro#ra( incl)din# apprenticeship, d)al trainin# syste( and other si(ilar
sche(es intended toC
Pro(ote (a'i()( protection and welfare of the worker-traineeJ

7(pro%e the <)ality and rele%ance and social acco)ntability of technical ed)cation and skills
de%elop(entJ

Accelerate the e(ploy(ent-#eneration effort of the #o%ern(entJ and

5'pand the ran#e of opport)nities for )pward social (obility of the school-#oin# pop)lation
beyond the traditional hi#her le%els of for(al ed)cation. All #o%ern(ent and non-#o%ern(ent
a#encies recei%in# financial and technical assistance fro( the #o%ern(ent shall be re<)ired to
for()late their respecti%e ann)al a#ency technical ed)cation and skills de%elop(ent plan in line with
the national technical ed)cation and skills de%elop(ent plan. The b)d#et to s)pport s)ch plans shall
be s)b4ect to re%iew and endorse(ent by the A)thority to the Depart(ent of 0)d#et and
Mana#e(ent. The A)thority shall e%al)ate the efficiency and effecti%eness of a#encies skills
de%elop(ent pro#ra( and sche(es to (ake the( confor( with the <)antitati%e and <)alitati%e
ob4ecti%es of the national technical ed)cation and skills de%elop(ent plan.
SEC. 24. Ass,s/an%e /" Em1"ye!s and +!-an,@a/,"ns. - The A)thority shall assist any e(ployer
or or#ani;ation en#a#ed in skills trainin# sche(es desi#ned to attain its ob4ecti%es )nder r)les and
re#)lations which the A)thority shall establish for this p)rpose.
SEC. 27. In%en/,#es S%&emes. 4 The A)thority shall de%elop and ad(inister appropriate incenti%e
sche(es to enco)ra#e #o%ern(ent and pri%ate ind)stries and instit)tions to pro%ide hi#h-<)ality
technical ed)cation and skills de%elop(ent opport)nities.
SEC. 2). S=,11s De#e1"men/ +"!/2n,/,es. - The A)thority shall desi#n and i(ple(ent an
effecti%e and efficient deli%ery syste( for <)ality technical ed)cation and skills de%elop(ent
opport)nities partic)larly in disad%anta#ed sectors, with new tools of wealth creation and with the
capability to take on hi#her %al)e-added #ainf)l acti%ities and to share e<)itably in prod)cti%ity #ains.
-*A 7"77 AMa#na Carta for Disabled PersonsJ 7ncenti%es of 5(ployer=
Re2b1,% A%/ *". 7277
A$ ACT P*1/7D7$F 21* T.5 *5.A07L7TAT71$, &5L2-D5/5L1PM5$T
A$D &5L2-*5L7A$C5 12 D7&A0L5D P5*&1$ A$D T.57* 7$T5F*AT71$
7$T1 T.5 MA7$&T*5AM 12 &1C75T@ A$D 21* 1T.5* P:*P1&5&.
&5CT71$ ". De%1a!a/,"n ". P"1,/y ! The #rant of the ri#hts and
pri%ile#es for disabled persons shall be #)ided by the followin# principlesC
Aa=. Disabled persons are part of the Philippine society, th)s the &enate shall #i%e f)ll s)pport to the
i(pro%e(ent of the total well-bein# of disabled persons and their inte#ration into the (ainstrea( of
society.Toward this end, the &tate shall adopt policies ens)rin# the
rehabilitation, self-de%elop(ent and self-reliance of disabled persons. 7t shall de%elop their skills and
potentials to enable the( to co(pete fa%orably for a%ailable opport)nities.
Ab=. Disabled persons ha%e the sa(e ri#hts as other people to take their proper place in society. They
sho)ld be able to li%e freely and as independently as possible. This ()st be the concern of e%eryone
! the fa(ily, co(()nity and all #o%ern(ent and non-#o%ern(ent
or#ani;ations. Disabled person8s ri#hts ()st ne%er be percei%ed as
welfare ser%ices by the Fo%ern(ent.
Ac=. The rehabilitation of the disabled persons shall be the concern of the Fo%ern(ent in order to
foster their capability to attain a (ore (eanin#f)l, prod)cti%e and satisfyin# life. To reach o)t to a
#reater n)(ber of disabled persons, the rehabilitation ser%ices and benefits
shall be e'panded beyond the traditional )rban-based centers to co(()nity based pro#ra(s, that
will ens)re f)ll participation of different sectors as s)pported by national and local #o%ern(ent
a#encies.
Ad=. The &tate also reco#ni;es the role of the pri%ate sector in pro(otin# the welfare of disabled
persons and shall enco)ra#e partnership in pro#ra(s that address their needs and concerns.
Ae=. To facilitate inte#ration of disabled persons into the (ainstrea( of society, the &tate shall
ad%ocate for and enco)ra#e respect for disabled persons. The &tate shall e'ert all efforts to re(o%e
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all social, c)lt)ral, econo(ic, en%iron(ental and attit)dinal barriers that are pre4)dicial to disabled
persons.
&5CT71$ . De.,n,/,"n ". Te!ms ! 2or p)rposes of this Act, these ter(s are defined as followsC
Aa=. D,sab1ed Pe!s"ns are those s)fferin# fro( restriction of different abilities, as a res)lt of a (ental,
physical or sensory i(pair(ent, to perfor( an acti%ity in the (anner or within the ran#e considered
nor(al for a h)(an bein#J
Ab=. 7(pair(ent is any loss, di(in)tion or aberration of psycholo#ical, physiolo#ical, or anato(ical
str)ct)re of f)nctionJ
Ac=. Disability ! shall (ean A1= a physical or (ental i(pair(ent that s)bstantially li(its one or (ore
psycholo#ical, physiolo#ical or anato(ical f)nction of an indi%id)al or acti%ities of s)ch indi%id)alJ A"=
a record of s)ch an i(pair(entJ or A6= bein# re#arded as ha%in# s)ch
an i(pair(entJ
Ad=. Hand,%a ! refers to a disad%anta#e for a #i%en indi%id)al res)ltin# fro( an i(pair(ent or a
disability, that li(its or pre%ents the f)nctions or acti%ity, that is considered nor(al #i%en the a#e and
se' of the indi%id)alJ
Ae=. *ehabilitation ! is an inte#rated approach to physical, social, c)lt)ral, spirit)al, ed)cational and
%ocational (eas)res that create conditions for the indi%id)al to attain the hi#hest possible le%el of
f)nctional abilityJ
Af=. &ocial 0arriers ! refer to the characteristics of instit)tions, whether le#al, econo(ic, c)lt)ral,
recreational or other, any h)(an #ro)p, co(()nity, or society which li(it the f)llest possible
participation of disabled persons in the life of the #ro)p. &ocial barriers incl)de
ne#ati%e attit)des which tends to sin#le o)t and e'cl)de disabled persons and which distort roles and
interpersonal relationshipJ
A#=. A)'iliary Aids and &er%ices incl)deC
1= <)alified interpreters or other effecti%e (ethods of deli%erin# (aterials to indi%id)als with hearin#
i(pair(entsJ
"= <)alified readers, taped tests, or other effecti%e (ethods of deli%erin# (aterials to indi%id)als with
%is)al i(pair(entsJ
6= ac<)isition or (odification of e<)ip(ent or de%icesJ and
= other si(ilar ser%ices and actions or all types of aids and ser%ices that facilitate the learnin#
process of people with (ental disabilityJ
Ah=. *easonable Acco((odation incl)de A1= i(pro%e(ent of e'istin# facilities )sed by e(ployees in
order to render these readily accessible to and )sable by disabled personsJ and A"= (odification of
work sched)les, reassi#n(ent to a %acant position, ac<)isition or
(odification of e<)ip(ent or de%ices, appropriate ad4)st(ents or (odifications of e'a(inations,
trainin# (aterials or co(pany policies, r)les and re#)lations, the pro%isions of a)'iliary aids and
ser%ices, and other si(ilar acco((odations for disabled personsJ
Ak=. Mar#inali;ed Disabled Persons refer to disabled persons who lack access to rehabilitati%e
ser%ices and opport)nities to be able to participate f)lly in socioecono(ic acti%ities and who ha%e no
(eans of li%elihood or whose inco(es fall below po%erty thresholdJ
Al=. L2a1,.,ed Ind,#,d2a1 with a Disability shall (ean an indi%id)al with a disability who, with or witho)t
reasonable acco((odations, can perfor( the essential f)nctions of the e(ploy(ent position that
s)ch indi%id)al holds or desires. .owe%er, consideration shall be #i%en to the e(ployer8s 4)d#e(ent
as to what f)nctions of a 4ob are essential, and if an e(ployer has prepared a written description
before ad%ertisin# or inter%iewin# applicants for the 4ob, this description shall be considered e%idence
of the essential f)nctions of the 4obJ
TITLE TW+ J RI;HTS A*D PRI:ILE;ES +0 DISABLED PERS+*S
CHAPTER I J Em1"ymen/
&5CT71$ ,. EB2a1 +"!/2n,/y ."! Em1"ymen/ ! $o disabled persons shall be denied access to
opport)nities for s)itable e(ploy(ent. A <)alified disabled e(ployee shall be s)b4ect to the sa(e
ter(s and conditions of e(ploy(ent and the sa(e co(pensation, pri%ile#es, benefits, frin#e benefits,
incenti%es or allowances as a <)alified able-bodied person. 2i%e percent A,K= of all cas)al,
e(er#ency and contract)al positions in the
Depart(ent of &ocial 3elfare and De%elop(entJ .ealthJ 5d)cation, C)lt)re and &portsJ and other
#o%ern(ent a#encies, offices or corporations en#a#ed in social de%elop(ent shall be reser%ed for
disabled persons.
&5CT71$ +. S&e1/e!ed Em1"ymen/ ! 7f s)itable e(ploy(ent for disabled persons cannot be fo)nd
thro)#h open e(ploy(ent as pro%ided in the i((ediately precedin# &ection, the &tate shall
endea%or to pro%ide it by (eans of sheltered e(ploy(ent. 7n the place(ent of disabled persons in
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sheltered e(ploy(ent, it shall accord d)e re#ard to the indi%id)al <)alities, %ocational #oals and
inclinations to ens)re a #ood workin# at(osphere and efficient prod)ction.
&5CT71$ 7. A!en/,%es&, ! &)b4ect to the pro%ision of the Labor Code as a(ended, disabled
persons shall be eli#ible as apprentices or learnersJ Pro%ided, That their handicap is not ()ch as to
effecti%ely i(pede the perfor(ance of 4ob operations in the partic)lar occ)pation for which they are
hiredJ Pro%ided, f)rther, That after the lapse of the period of apprenticeship if fo)nd satisfactory in the
4ob perfor(ance, they shall be eli#ible for e(ploy(ent.
&5CT71$ E. In%en/,#es ."! Em1"ye! ! Aa= To enco)ra#e the acti%e participation of the pri%ate
sector in pro(otin# the welfare of disabled persons and to ens)re #ainf)l e(ploy(ent for <)alified
disabled persons, ade<)ate incenti%es shall be pro%ided to pri%ate entities which e(ploy disabled
persons. Ab=. Pri%ate entities that e(ploy disabled persons who (eet the re<)ired skills or
<)alifications, either as re#)lar e(ployee, apprentice or learner, shall be entitled to an additional
ded)ction, fro( their #ross inco(e, e<)i%alent to twenty-fi%e percent A",K= of the total a(o)nt paid
as salaries and wa#es to disabled personsC Pro%ided, howe%er, That s)ch entities present proof as
certified by the Depart(ent of Labor and 5(ploy(ent that disabled person are )nder their e(ploy.
Pro%ided, f)rther That the disabled e(ployee is accredited with the Depart(ent of Labor and
5(ploy(ent and the Depart(ent of .ealth as to his disability, skills and <)alifications. Ac=. Pri%ate
entities that i(pro%ed or (odify their physical facilities in order to pro%ide reasonable acco((odation
for disabled persons shall also be entitled to an additional ded)ction fro( their net ta'able inco(e,
e<)i%alent to fifty percent A,>K= of the direct costs of the i(pro%e(ents or (odifications. This section,
howe%er, does not apply to i(pro%e(ents or (odifications of facilities re<)ired )nder 0atas
Pa(bansa 0ilan# 6.
&5CT71$ 9. :"%a/,"na1 Re&ab,1,/a/,"n ! Consistent with the principle of e<)al opport)nity for
disabled workers and workers in #eneral, the &tate shall take appropriate %ocational rehabilitation
(eas)res that shall ser%e to de%elop the skills and potential of disabled persons and enable the( to
co(pete fa%orably for a%ailable prod)cti%e and re()nerati%e e(ploy(ent opport)nities in the labor
(arket. The &tate shall also take (eas)res to ens)re the pro%isions of %ocational rehabilitation and
li%elihood ser%ices for disabled persons in the r)ral areas. 7n addition, it shall pro(ote cooperation
and coordination between the #o%ern(ent and non-#o%ern(ent or#ani;ation and other pri%ate
entities en#a#ed in
%ocational rehabilitation acti%ities. The Depart(ent of &ocial 3elfare and De%elop(ent shall desi#n
and i(ple(ent trainin# pro#ra(s that will pro%ide disabled persons with %ocational skills to enable
the( to en#a#e in li%elihood acti%ities or obtain #ainf)l e(ploy(ent. The Depart(ent of Labor and
5(ploy(ent shall likewise desi#n and cond)ct trainin# pro#ra(s #eared towards pro%idin# disabled
persons with skills for li%elihood.
TITLE THREE J PR+HIBITI+* +* DISCRI$I*ATI+*
A;AI*ST DISABLED PERS+*S
CHAPTER 1 J D,s%!,m,na/,"n "n Em1"ymen/
&5CT71$ 6". D,s%!,m,na/,"n "n Em1"ymen/ ! $o entity, whether p)blic or pri%ate, shall
discri(inate a#ainst a <)alified disabled person by reason of disability in re#ard to 4ob application
proced)res, the hirin#, pro(otion, or dischar#e of e(ployees, e(ployee co(pensation, 4ob trainin#,
and other ter(s, conditions, and pri%ile#es of e(ploy(ent. The followin# constit)te acts of
discri(inationC
Aa=. Li(itin#, se#re#atin# or classifyin# a disabled 4ob applicant in s)ch a (anner that ad%ersely
affects his work opport)nitiesJ
Ab=. :sin# <)alification standards, e(ploy(ent tests or other selection criteria that screen o)t or tend
to screen o)t a disabled person )nless s)ch standards, tests or other selection criteria are shown to
be 4obrelated for the position on <)estion and are consistent with b)siness necessityJ
Ac=. :tili;in# standards, criteria, or (ethods of ad(inistration thatC 1=. ha%e the effect of discri(ination
on the basis of disabilityJ or "=. perpet)ate the discri(ination of others who are s)b4ect to co((on
ad(inistrati%e controlJ
Ad=. Pro%idin# less co(pensation, s)ch as salary, wa#e or other for(s of re()neration and frin#e
benefits, to a <)alified disabled e(ployee, by reason of his disability, than the a(o)nt to which a non-
disabled person perfor(in# the sa(e work is entitledJ
Ae=. 2a%orin# a non-disabled e(ployee o%er a <)alified disabled e(ployee with respect to pro(otion,
trainin# opport)nities, st)dy and scholarship #rants, solely on acco)nt of the latter8s disabilityJ
Af=. *e-assi#nin# or transferrin# a disabled e(ployee to a 4ob or position he cannot perfor( by reason
of his disabilityJ
A#=. Dis(issin# or ter(inatin# the ser%ices of a disabled e(ployee by reason of his disability )nless
the e(ployer can pro%e that he i(pairs the satisfactory perfor(ance of the work in%ol%e to the
pre4)dice of the b)siness entitiesJ Pro%ided, howe%er, That the e(ployer first
so)#ht pro%ide reasonable acco((odations for disabled personsJ
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Ah=. 2ailin# to select or ad(inister in the effecti%e (anner e(ploy(ent tests which acc)rately reflect
the skills, aptit)de or other factor of the disabled applicant or e(ployee that s)ch test p)rports to
(eas)re, rather than the i(paired sensory, (an)al or speakin# skills of s)ch applicant or e(ployee,
if anyJ and
Ai=. 5'cl)din# disabled persons fro( (e(bership in labor )nions or si(ilar or#ani;ation.
&5CT71$ 66. Em1"ymen/ En/!an%e EKam,na/,"n ! :pon an offer of e(ploy(ent, a disabled
applicant (ay be s)b4ected to (edical e'a(ination, on the followin# occasionsC
Aa=. all enterin# e(ployees are s)b4ected to s)ch an e'a(ination re#ardless of disabilityJ
Ab=. infor(ation obtained d)rin# the (edical condition or history of the applicant is collected and
(aintained on separate for(s and in separate (edical files and is treated as a confidential (edical
record,
Pro%ided, howe%er, ThatC
1=. s)per%isors and (ana#ers (ay be infor(ed re#ardin# necessary restrictions on the work or d)ties
of the e(ployees and necessary acco((odationsJ
"=. first aid and safety personnel (y be infor(ed, when appropriate, if the disability (i#ht re<)ire
e(er#ency treat(entJ
6=. #o%ern(ent officials in%esti#atin# co(pliance with this Act shall be pro%ided rele%ant infor(ation
on re<)estJ and
=. the res)lts of s)ch e'a(ination are )sed only accordance with this Act.
B. E$PL+A$E*T +0 W+$E*
-&ec. 1, Art 77, Constit)tion ? &ec. 1, Art. D777
A!/. II' Se%/,"n 14. The State recognizes the role of women in nation-
building, and shall ensure the fundamental equality before the law
of women and men.
A!/. 9III' Section 14. The State shall protect working women by proiding
safe and healthful working conditions, taking into account their
maternal functions, and such facilities and opportunities that will
enhance their welfare and enable them to realize their full
potential in the serice of the nation.
-ni#ht work prohibition AArts. 16> ? 161=
ART. 1>4. 4ightwor< rohibition. - $o wo(an, re#ardless of a#e, shall be e(ployed or per(itted
or s)ffered to work, with or witho)t co(pensationC
Aa= 7n any ind)strial )ndertakin# or branch thereof between ten o8clock at ni#ht and si' o8clock in
the (ornin# of the followin# dayJ or
Ab= 7n any co((ercial or non-ind)strial )ndertakin# or branch thereof, other than a#ric)lt)ral,
between (idni#ht and si' o8clock in the (ornin# of the followin# dayJ or
Ac= 7n any a#ric)lt)ral )ndertakin# at ni#htti(e )nless she is #i%en a period of rest of not less than
nine A9= consec)ti%e ho)rs.
ART. 1>1. $;cetions. - The prohibitions prescribed by the precedin# Article shall not apply in any
of the followin# casesC
Aa= 7n cases of act)al or i(pendin# e(er#encies ca)sed by serio)s accident, fire, flood, typhoon,
earth<)ake, epide(ic or other disasters or cala(ity, to pre%ent loss of life or property, or in cases
of for$" m(A",r" or i((inent dan#er to p)blic safetyJ
Ab= 7n case of )r#ent work to be perfor(ed on (achineries, e<)ip(ent or installation, to a%oid
serio)s loss which the e(ployer wo)ld otherwise s)fferJ
Ac= 3here the work is necessary to pre%ent serio)s loss of perishable #oodsJ
Ad= 3here the wo(an e(ployee holds a responsible position of (ana#erial or technical nat)re, or
where the wo(an e(ployee has been en#a#ed to pro%ide health and welfare ser%icesJ
Ae= 3here the nat)re of the work re<)ires the (an)al skill and de'terity of wo(en workers and the
sa(e cannot be perfor(ed with e<)al efficiency by (ale workersJ
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Af= 3here the wo(en e(ployees are i((ediate (e(bers of the fa(ily operatin# the establish(ent
or )ndertakin#J and
A#= :nder other analo#o)s cases e'e(pted by the &ecretary of Labor and 5(ploy(ent in
appropriate re#)lations.
-facilities for wo(en AArt. 16"=
ART. 1>2. 5acilities for women. - The &ecretary of Labor and 5(ploy(ent shall establish
standards that will ens)re the safety and health of wo(en e(ployees. 7n appropriate cases, he
shall, by re#)lations, re<)ire any e(ployer toC
Aa= Pro%ide seats proper for wo(en and per(it the( to )se s)ch seats when they are free fro(
work and d)rin# workin# ho)rs, pro%ided they can perfor( their d)ties in this position witho)t
detri(ent to efficiencyJ
Ab= To establish separate toilet roo(s and la%atories for (en and wo(en and pro%ide at least a
dressin# roo( for wo(enJ
Ac= To establish a n)rsery in a workplace for the benefit of the wo(en e(ployees thereinJ and
Ad= 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.
-(aternity lea%e benefits AArt. 166= see also &ocial &ec)rity Act of 1997 A*A E"E"=
ART. 1>>. !aternity leave benefits. - Aa= 5%ery e(ployer shall #rant to any pre#nant wo(an
e(ployee who has rendered an a##re#ate ser%ice of at least si' A+= (onths for the last twel%e A1"=
(onths, (aternity lea%e of at least two A"= weeks prior to the e'pected date of deli%ery and another
fo)r A= weeks after nor(al deli%ery or abortion with f)ll pay based on her re#)lar or a%era#e
weekly wa#es. The e(ployer (ay re<)ire fro( any wo(an e(ployee applyin# for (aternity lea%e
the prod)ction of a (edical certificate statin# that deli%ery will probably take place within two
weeks.
Ab= The (aternity lea%e shall be e'tended witho)t pay on acco)nt of illness (edically certified to
arise o)t of the pre#nancy, deli%ery, 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 e'tended lea%e (ay be
char#ed.
Ac= The (aternity lea%e pro%ided in this Article shall be paid by the e(ployer only for the first fo)r
A= deli%eries by a wo(an e(ployee after the effecti%ity of this Code.
REP5BLIC ACT *+. )2)2

A$ ACT 2:*T.5* &T*5$FT.5$7$F T.5 &1C7AL &5C:*7T@ &@&T5M T.5*50@
AM5$D7$F 21* T.7& P:*P1&5 *5P:0L7C ACT $1. 11+1, A& AM5$D5D, 1T.5*37&5
I$13$ A& T.5 &1C7AL &5C:*7T@ LA3

<SEC. 14?A. !aternity Leave 8enefit. - A fe(ale (e(ber who has paid at least three A6=
(onthly contrib)tions in the twel%e-(onth period i((ediately precedin# the se(ester of her
childbirth or (iscarria#e shall be paid a daily (aternity benefit e<)i%alent to one h)ndred percent
A1>>K= of her a%era#e daily salary credit for si'ty A+>= days or se%enty-ei#ht A7E= days in case of
caesarean deli%ery, s)b4ect to the followin# conditionsC

MAa= That the e(ployee shall ha%e notified her e(ployer of her pre#nancy and the
probable date of her childbirth, which notice shall be trans(itted to the &&& in accordance with
the r)les and re#)lations it (ay pro%ideJ

MAb= The f)ll pay(ent shall be ad%anced by the e(ployer within thirty A6>= days fro( the
filin# of the (aternity lea%e applicationJ

MAc= That pay(ent of daily (aternity benefits shall be a bar to the reco%ery of sickness
benefits pro%ided by this Act for the sa(e period for which daily (aternity benefits ha%e been
recei%edJ

MAd= That the (aternity benefits pro%ided )nder this section shall be paid only for the first
fo)r A= deli%eries or (iscarria#esJ
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MAe= That the &&& shall i((ediately rei(b)rse the e(ployer of one h)ndred percent
A1>>K= of the a(o)nt of (aternity benefits ad%anced to the e(ployee by the e(ployer )pon
receipt of satisfactory proof of s)ch pay(ent and le#ality thereofJ and

MAf= That if an e(ployee (e(ber sho)ld #i%e birth or s)ffer (iscarria#e witho)t the
re<)ired contrib)tions ha%in# been re(itted for her by her e(ployer to the &&&, or witho)t the
latter ha%in# been pre%io)sly notified by the e(ployer of the ti(e of the pre#nancy, the e(ployer
shall pay to the &&& da(a#es e<)i%alent to the benefits which said e(ployee (e(ber wo)ld
otherwise ha%e been entitled to.
-fa(ily plannin# ser%ices AArt. 16=
ART. 1>4. 5amily lanning services= incentives for family lanning. - Aa= 5stablish(ents which
are re<)ired by law to (aintain a clinic or infir(ary shall pro%ide free fa(ily plannin# ser%ices to
their e(ployees which shall incl)de, b)t not be li(ited to, the application or )se of contracepti%e
pills and intra)terine de%ices.
Ab= 7n coordination with other a#encies of the #o%ern(ent en#a#ed in the pro(otion of fa(ily
plannin#, the Depart(ent of Labor and 5(ploy(ent shall de%elop and prescribe incenti%e bon)s
sche(es to enco)ra#e fa(ily plannin# a(on# fe(ale workers in any establish(ent or enterprise.
-Prohibited Discri(ination AArt. 16,=J also Art. "E A:nion (e(bership=
ART. 1>5. +iscrimination rohibited. - 7t shall be )nlawf)l for any e(ployer to discri(inate
a#ainst any wo(an e(ployee with respect to ter(s and conditions of e(ploy(ent solely on
acco)nt of her se'.
The followin# are acts of discri(inationC
Aa= Pay(ent of a lesser co(pensation, incl)din# wa#e, salary or other for( of re()neration and
frin#e benefits, to a fe(ale e(ployees as a#ainst a (ale e(ployee, for work of e<)al %al)eJ and
Ab= 2a%orin# a (ale e(ployee o%er a fe(ale e(ployee with respect to pro(otion, trainin#
opport)nities, st)dy and scholarship #rants solely on acco)nt of their se'es.
Cri(inal liability for the willf)l co((ission of any )nlawf)l act as pro%ided in this Article or any
%iolation of the r)les and re#)lations iss)ed p)rs)ant to &ection " hereof shall be penali;ed as
pro%ided in Articles "EE and "E9 of this CodeC Pro%ided, That the instit)tion of any cri(inal action
)nder this pro%ision shall not bar the a##rie%ed e(ployee fro( filin# an entirely separate and
distinct action for (oney clai(s, which (ay incl)de clai(s for da(a#es and other affir(ati%e
reliefs. The actions hereby a)thori;ed shall proceed independently of each other. AAs a(ended by
*ep)blic Act $o. +7",, May 1", 19E9=.
ART. 24). 'nfair labor ractices of emloyers. - 7t shall be )nlawf)l for an e(ployer to co((it
any of the followin# )nfair labor practiceC
Ae= To discri(inate in re#ard to wa#es, ho)rs of work and other ter(s and conditions of
e(ploy(ent in order to enco)ra#e or disco)ra#e (e(bership in any labor or#ani;ation. $othin# in
this Code or in any 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(ploy(ent, e'cept those e(ployees who are
already (e(bers of another )nion at the ti(e of the si#nin# of the collecti%e bar#ainin# a#ree(ent.
5(ployees of an appropriate bar#ainin# )nit who are not (e(bers of the reco#ni;ed collecti%e
bar#ainin# a#ent (ay be assessed a reasonable fee e<)i%alent to the d)es and other fees paid by
(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(entC Pro%ided, that the indi%id)al a)thori;ation
re<)ired )nder Article "", para#raph Ao= of this Code shall not apply to the non-(e(bers of the
reco#ni;ed collecti%e bar#ainin# a#entJ
-Cri(inal liability
C!,m,na1 1,ab,1,/y for the willf)l co((ission of any )nlawf)l act as pro%ided in this Article or any
%iolation of the r)les and re#)lations iss)ed p)rs)ant to &ection " hereof shall be penali;ed as
pro%ided in Articles "EE and "E9 of this CodeC Pro%ided, That the instit)tion of any cri(inal action
)nder this pro%ision shall not bar the a##rie%ed e(ployee fro( filin# an entirely separate and
distinct action for (oney clai(s, which (ay incl)de clai(s for da(a#es and other affir(ati%e
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reliefs. The actions hereby a)thori;ed shall proceed independently of each other. AAs a(ended by
*ep)blic Act $o. +7",, May 1", 19E9=.
-Prohibited Acts AArt. 167=
ART. 1>7. Prohibited acts. - Aa= 7t shall be )nlawf)l for any e(ployerC
A1= To deny any wo(an e(ployee the benefits pro%ided for in this Chapter or to dischar#e any
wo(an e(ployed by hi( for the p)rpose of pre%entin# her fro( en4oyin# any of the benefits
pro%ided )nder this Code.
A"= To dischar#e s)ch wo(an on acco)nt of her pre#nancy, or while on lea%e or in confine(ent
d)e to her pre#nancyJ
A6= To dischar#e or ref)se the ad(ission of s)ch wo(an )pon ret)rnin# to her work for fear that
she (ay a#ain be pre#nant.
-wo(en workin# in ni#htcl)bs, etc. AArt. 16E=
ART. 1>). *lassification of certain women wor<ers . - Any wo(an who is per(itted or s)ffered
to work, with or witho)t co(pensation, in any ni#ht cl)b, cocktail lo)n#e, (assa#e clinic, bar or
si(ilar establish(ents )nder the effecti%e control or s)per%ision of the e(ployer for a s)bstantial
period of ti(e as deter(ined by the &ecretary of Labor and 5(ploy(ent, shall be considered as an
e(ployee of s)ch establish(ent for p)rposes of labor and social le#islation.
-Anti-/iolence A#ainst 3o(en ? their Children8s Act of ">> A*A 9"+"=
REP5BLIC ACT *+. (262 V
A* ACT DE0I*I*; :I+LE*CE A;AI*ST W+$E* A*D THEIR CHILDRE*' PR+:IDI*; 0+R
PR+TECTI:E $EAS5RES 0+R :ICTI$S' PRESCRIBI*; PE*ALTIES THERE0+RE' A*D
0+R +THER P5RP+SES
&5C. 6. Definition of Ter(s.- As )sed in this Act, Aa= M/iolence a#ainst wo(en and their childrenM
refers to any act or a series of acts co((itted by any person a#ainst a wo(an who is his wife,
for(er wife, or a#ainst a wo(an with who( the person has or had a se')al or datin# relationship,
or with who( he has a co((on child, or a#ainst her child whether le#iti(ate or ille#iti(ate, within
or witho)t the fa(ily abode, which res)lt in or is likely to res)lt in physical, se')al, psycholo#ical
har( or s)fferin#, or econo(ic ab)se incl)din# threats of s)ch acts, battery, assa)lt, coercion,
harras(ent or arbitrary depri%ation of liberty. 7t incl)des, b)t is not li(ited to, the followin# actsC
A. MPhysical /iolenceM refers to acts that incl)de bodily or physical har(J
0. M&e')al %iolenceM refers to an act which is se')al in nat)re, co((itted a#ainst a wo(an
or her child. 7t incl)des, b)t is not li(ited toC
a. rap, se')al harass(ent, acts of lasci%io)sness, treatin# a wo(an or her child as a se'
ob4ect, (akin# de(eanin# and se')ally s)##esti%e re(arks, physically attackin# the se')al parts
of the %icti(8s body, forcin# herBhi( to watch obscene p)blications and indecent shows or forcin#
the wo(an or her child to do indecent acts andBor (ake fil(s thereof, forcin# the wife and
(istressBlo%er to li%e in the con4)#al ho(e or sleep to#ether in the sa(e roo( with the ab)serJ
b. acts ca)sin# or atte(ptin# to ca)se the %icti( to en#a#e in any se')al acti%ity by force,
threat of force, physical or other har( or threat of physical or other har( or coercionJ
c. Prostit)tin# the wo(an or child.
C. MPsycholo#ical %iolenceM refers to acts or o(issions ca)sin# or likely to ca)se (ental or
e(otional s)fferin# of the %icti( s)ch as b)t not li(ited to inti(idation, harass(ent, stalkin#,
da(a#e to property, p)blic ridic)le or h)(iliation, repeated %erbal ab)se and (ental infidelity. 7t
incl)des ca)sin# or allowin# the %icti( to witness the physical, se')al or psycholo#ical ab)se of a
(e(ber of the fa(ily to which the %icti( belon#s, or to witness porno#raphy in any for( or to
witness ab)si%e in4)ry to pets or to )nlawf)l or )nwanted depri%ation of the ri#ht to c)stody andBor
%isitation of co((on children.
D. M5cono(ic ab)seM refers to acts that (ake or atte(pt to (ake a wo(an financially
dependent which incl)des, b)t is not li(ited to the followin#C
1. withdrawal of financial s)pport or pre%entin# the %icti( fro( en#a#in# in any
le#iti(ate profession, occ)pation, b)siness or acti%ity, e'cept in cases wherein the other
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spo)seBpartner ob4ects on %alid, serio)s and (oral #ro)nds as defined in Article 76 of the 2a(ily
CodeJ
". depri%ation or threat of depri%ation of financial reso)rces and the ri#ht to the )se
and en4oy(ent of the con4)#al, co(()nity or property owned in co((onJ
6. destroyin# ho)sehold propertyJ
. controllin# the %icti(s8 own (oney or properties or solely controllin# the con4)#al
(oney or properties.
&5C. ,. Acts of /iolence A#ainst 3o(en and Their Children.- The cri(e of %iolence a#ainst
wo(en and their children is co((itted thro)#h any of the followin# actsC
a. Ca)sin# physical har( to the wo(an or her childJ
b. Threatenin# to ca)se the wo(an or her child physical har(J
c. Atte(ptin# to ca)se the wo(an or her child physical har(J
d. Placin# the wo(an or her child in fear of i((inent physical har(J
e. Atte(ptin# to co(pel or co(pellin# the wo(an or her child to en#a#e in cond)ct which
the wo(an or her child has the ri#ht to desist fro( or desist fro( cond)ct which the wo(an or her
child has the ri#ht to en#a#e in, or atte(ptin# to restrict or restrictin# the wo(an8s or her child8s
freedo( of (o%e(ent or cond)ct by force or threat of force, physical or other har( or threat of
physical or other har(, or inti(idation directed a#ainst the wo(an or child. This shall incl)de, b)t
not li(ited to, the followin# acts co((itted with the p)rpose or effect of controllin# or restrictin# the
wo(an8s or her child8s (o%e(ent or cond)ctC
1. Threatenin# to depri%e or act)ally depri%in# the wo(an or her child of c)stody to herBhis
fa(ilyJ
". Depri%in# or threatenin# to depri%e the wo(an or her children of financial s)pport le#ally
d)e her or her fa(ily, or deliberately pro%idin# the wo(an8s children ins)fficient financial s)pportJ
6. Depri%in# or threatenin# to depri%e the wo(an or her child of a le#al ri#htJ
3. Pr"8"&#&. !" )om(& #& "&.(.#&. #& (&0 *".##m(" %rof"''#o&, o$$,%(#o&, 1,'#&"'' or
($#8#0 or $o&ro**#&. !" 8#$#mM' o)& mo&3"0 or %ro%"r#"', or 'o*"*0 $o&ro**#&. !" $o&A,.(* or
$ommo& mo&"0, or %ro%"r#"'B
f. 7nflictin# or threatenin# to inflict physical har( on oneself for the p)rpose of controllin# her
actions or decisionsJ
#. Ca)sin# or atte(ptin# to ca)se the wo(an or her child to en#a#e in any se')al acti%ity
which does not constit)te rape, by force or threat of force, physical har(, or thro)#h inti(idation
directed a#ainst the wo(an or her child or herBhis i((ediate fa(ilyJ
h. 5n#a#in# in p)rposef)l, knowin#, or reckless cond)ct, personally or thro)#h another, that
alar(s or ca)ses s)bstantial e(otional or psycholo#ical distress to the wo(an or her child. This
shall incl)de, b)t not be li(ited to, the followin# actsC
1. &talkin# or followin# the wo(an or her child in p)blic or pri%ate placesJ
". Peerin# in the window or lin#erin# o)tside the residence of the wo(an or her childJ
6. 5nterin# or re(ainin# in the dwellin# or on the property of the wo(an or her child a#ainst
herBhis willJ
. Destroyin# the property and personal belon#in#ness or inflictin# har( to ani(als or pets
of the wo(an or her childJ and
,. 5n#a#in# in any for( of harass(ent or %iolenceJ
i. Ca)sin# (ental or e(otional an#)ish, p)blic ridic)le or h)(iliation to the wo(an or her
child, incl)din#, b)t not li(ited to, repeated %erbal and e(otional ab)se, and denial of financial
s)pport or c)stody of (inor children of access to the wo(an8s childBchildren.
&5C. 69. I&"r4A."&$0 Co,&$#* o& V#o*"&$" A.(#&' Wom"& (&+ T!"#r C!#*+r"& 6IAC4VAWC7. 7n
p)rs)ance of the abo%e(entioned policy, there is hereby established an 7nter-A#ency Co)ncil on
/iolence A#ainst 3o(en and their children, hereinafter known as the Co)ncil, which shall be
co(posed of the followin# a#enciesC
a. Depart(ent of &ocial 3elfare and De%elop(ent AD&3D=J
b. $ational Co((ission on the *ole of 2ilipino 3o(en A$C*23=J
c. Ci%il &er%ice Co((ission AC&C=J
d. Co)ncil for the 3elfare of Children AC3C=J
e. Depart(ent of 9)stice AD19=J
f. Depart(ent of the 7nterior and Local Fo%ern(ent AD7LF=J
#. Philippine $ational Police AP$P=J
h. Depart(ent of .ealth AD1.=J
i. Depart(ent of 5d)cation ADep5d=J
4. Depart(ent of Labor and 5(ploy(ent AD1L5=J and
k. $ational 0)rea) of 7n%esti#ation A$07=.
These a#encies are tasked to for()late pro#ra(s and pro4ects to eli(inate /A3 based on their
(andates as well as de%elop capability pro#ra(s for their e(ployees to beco(e (ore sensiti%e to
the needs of their clients. The Co)ncil will also ser%e as the (onitorin# body as re#ards to /A3
initiati%es.
The Co)ncil (e(bers (ay desi#nate their d)ly a)thori;ed representati%e who shall ha%e a rank
not lower than an assistant secretary or its e<)i%alent. These representati%es shall attend Co)ncil
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(eetin#s in their behalf, and shall recei%e e(ol)(ents as (ay be deter(ined by the Co)ncil in
accordance with e'istin# b)d#et and acco)ntin# r)les and re#)lations.
&5C. >. M(&+(or0 Pro.r(m' (&+ S"r8#$"' for V#$#m'. L The D&3D, and LF:8s shall pro%ide the
%icti(s te(porary shelters, pro%ide co)nselin#, psycho-social ser%ices and Bor, reco%ery,
rehabilitation pro#ra(s and li%elihood assistance.
SEC. 4>. En/,/1ed /" Lea#e. L /icti(s )nder this Act shall be entitled to take a paid lea%e of
absence )p to ten A1>= days in addition to other paid lea%es )nder the Labor Code and Ci%il &er%ice
*)les and *e#)lations, e'tendible when the necessity arises as specified in the protection order.
Any e(ployer who shall pre4)dice the ri#ht of the person )nder this section shall be penali;ed in
accordance with the pro%isions of the Labor Code and Ci%il &er%ice *)les and *e#)lations.
Likewise, an e(ployer who shall pre4)dice any person for assistin# a co-e(ployee who is a %icti(
)nder this Act shall likewise be liable for discri(ination.
-1ther special laws, e.#. *A +7"7J *A +9,,J *A 719"J *A 76""J *A 7E77 ? *A E>"
1. REP5BLIC ACT *+. 6727
REP5BLIC ACT *+. 6727

&ec. 1. This Act shall be known as the TW(." R(#o&(*#2(#o& A$.T
&ec. ". 7t is hereby declared the policy of the &tate to rationali;e the fi'in# of (ini()( wa#es and
to pro(ote prod)cti%ity-i(pro%e(ent and #ain-sharin# (eas)res to ens)re a decent standard of
li%in# for the workers and their fa(iliesJ to #)arantee the ri#hts of labor to its 4)st share in the fr)its
of prod)ctionJ to enhance e(ploy(ent #eneration in the co)ntryside thro)#h ind)stry dispersalJ
and to allow b)siness and ind)stry reasonable ret)rns on in%est(ent, e'pansion and #rowth.
The &tate shall pro(ote collecti%e bar#ainin# as the pri(ary (ode of settin# wa#es and other
ter(s and conditions of e(ploy(entJ and, whene%er necessary, the (ini()( wa#e rates shall be
ad4)sted in a fair and e<)itable (anner, considerin# e'istin# re#ional disparities in the cost of li%in#
and other socio-econo(ic factors and the national econo(ic and social de%elop(ent plans.
&ec. 6. 7n line with the declared policy )nder this Act, Article 99 of Presidential Decree $o. ", as
a(ended, is hereby a(ended and Articles 1">, 1"1, 1"", 1"6, 1", 1"+ and 1"7, are hereby
incorporated into Presidential Decree $o. ", as a(ended, to read as followsC
MArt. 99. R".#o&(* M#&#m,m W(."'. 4 The (ini()( wa#e rates for a#ric)lt)ral and non- a#ric)lt)ral
e(ployees and workers in each and e%ery re#ion of the co)ntry shall be those prescribed by the
*e#ional Tripartite 3a#es and Prod)cti%ity 0oards.M

MArt. 1">. Cr"(#o& of !" N(#o&(* W(."' (&+ Pro+,$#8#0 Comm#''#o&. - There is hereby created
a $ational 3a#es and Prod)cti%ity Co((ission, hereinafter referred to as the Co((ission, which
shall be attached to the Depart(ent of Labor and 5(ploy(ent AD1L5= for policy and pro#ra(
coordination.M

MArt. 1"1. Po)"r' (&+ F,&$#o&' of !" Comm#''#o&. - The Co((ission shall ha%e the followin#
powers and f)nctionsC







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prod)cti%ityJ and


MThe Co((ission shall be co(posed of the &ecretary of Labor and 5(ploy(ent as "9 off#$#o
chair(an, the Director-Feneral of the $ational 5cono(ic and De%elop(ent A)thority W$5DAX as "9
off#$#o %ice-chair(an, and two W"X (e(bers each fro( workers and e(ployers sectors who shall be
appointed by the President of the Philippines )pon reco((endation of the &ecretary of Labor and
5(ploy(ent to be (ade on the basis of the list of no(inees s)b(itted by the workers and
e(ployers sectors, respecti%ely, and who shall ser%e for a ter( of fi%e W,X years. The 5'ec)ti%e
Director of the Co((ission &ecretariat shall also be a (e(ber of the Co((ission.

MThe Co((ission shall be assisted by a &ecretariat to be headed by an 5'ec)ti%e Director and two
W"X Dep)ty Directors, who shall be appointed by the President of the Philippines, )pon
reco((endation of the &ecretary of Labor and 5(ploy(ent.

MThe 5'ec)ti%e Director shall ha%e the sa(e rank, salary, benefits and other e(ol)(ents as that of
a Depart(ent Assistant &ecretary, while the Dep)ty Directors shall ha%e the sa(e rank, salary,
benefits and other e(ol)(ents as that of a 0)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 by law for labor and (ana#e(ent representati%es in the 5(ployeesO
Co(pensation Co((ission.M

MArt. 1"". Cr"(#o& of R".#o&(* Tr#%(r#" W(."' (&+ Pro+,$#8#0 Bo(r+'. - There is hereby created
*e#ional Tripartite 3a#es and Prod)cti%ity 0oards, hereinafter referred to as *e#ional 0oards, in
all re#ions, incl)din# a)tono(o)s re#ions as (ay be established by law. The Co((ission shall
deter(ine the officesBhead<)arters of the respecti%e *e#ional 0oards.

MThe *e#ional 0oards shall ha%e the followin# powers and f)nctions in their respecti%e territorial
4)risdictionC
MAa= To de%elop plans, pro#ra(s and pro4ects relati%e to wa#es, inco(es and prod)cti%ity

MAb= To deter(ine and fi' (ini()( wa#e rates applicable in their re#ion, pro%inces or ind)stries
Co((issionJ

MAc= To )ndertake st)dies, researches, and s)r%eys necessary for the attain(ent of their f)nctions,

MAd= To coordinate with the other *e#ional 0oards as (ay be necessary to attain the policy and

MAe= To recei%e, process and act on applications for e'e(ption fro( prescribed wa#e rates as (ay

MAf= To e'ercise s)ch other powers and f)nctions as (ay be necessary to carry o)t their (andate
)nder this Code.

M7(ple(entation of the plans, pro#ra(s and pro4ects of the *e#ional 0oards referred to in the
second para#raph, letter Aa= of this Article, shall be thro)#h the respecti%e re#ional offices of the
Depart(ent of Labor and 5(ploy(ent within their territorial 4)risdictionC Pro8#+"+, !o)"8"r, That
the *e#ional 0oards shall ha%e technical s)per%ision o%er the re#ional office of the Depart(ent of
Labor and 5(ploy(ent with respect to the i(ple(entation of said plans, pro#ra(s and pro4ects.

M5ach *e#ional 0oard shall be co(posed of the *e#ional Director of the Depart(ent of Labor and
5(ploy(ent as chair(an, the *e#ional Directors of the $ational 5cono(ic and De%elop(ent
A)thority and the Depart(ent of Trade and 7nd)stry as %ice-chair(en of two W"X (e(bers each
fro( workers and e(ployers sectors who shall be appointed by the President of the Philippines,
)pon the reco((endation of the &ecretary of Labor and 5(ploy(ent, to be (ade on the basis of
the list of no(inees s)b(itted by the workers and e(ployers sectors, respecti%ely, and who shall
ser%e for a ter( of fi%e W,X years.

M5ach *e#ional 0oard to be headed by its chair(an shall be assisted by a &ecretariat.

MArt. 1"6. W(." Or+"r. - 3hene%er conditions in the re#ion so warrant, the *e#ional 0oard shall
in%esti#ate and st)dy all pertinent factsJ and, based on the standards and criteria herein prescribed,
shall proceed to deter(ine whether a 3a#e 1rder sho)ld be iss)ed. Any s)ch 3a#e 1rder shall
take effect after fifteen W1,X days fro( its co(plete p)blication in at least one W1X newspaper of
#eneral circ)lation in the re#ion.
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M7n the perfor(ance of its wa#e-deter(inin# f)nctions, the *e#ional 0oard shall cond)ct p)blic
hearin#sBcons)ltations, #i%in# notices to e(ployeesO and e(ployersO #ro)ps, pro%incial, city and
()nicipal officials, and other interested parties.

MAny party a##rie%ed by the 3a#e 1rder iss)ed by the *e#ional 0oard, (ay appeal s)ch order to
the Co((ission, within ten W1>X calendar days fro( the p)blication of s)ch order. 7t shall be
(andatory for the Co((ission to decide s)ch appeal within si'ty W+>X calendar days fro( the filin#
thereof.
MThe filin# of the appeal does not operate to stay the order )nless the person appealin# s)ch order
shall file with the Co((ission an )ndertakin# with a s)rety or s)reties satisfactory to the
Co((ission for the pay(ent to the e(ployees affected by the order of the correspondin# increase,
in the e%ent s)ch order is affir(ed.M

MArt. 1". S(&+(r+'HCr#"r#( for M#&#m,m W(." F#9#&.. - The re#ional (ini()( wa#es to be
established by the *e#ional 0oard shall be as nearly ade<)ate as is econo(ically feasible to
(aintain the (ini()( standards of li%in# necessary for the health, efficiency and #eneral well-
bein# of the e(ployees within the fra(ework of the national econo(ic and social de%elop(ent
pro#ra(. 7n the deter(ination of s)ch re#ional (ini()( wa#es, the *e#ional 0oard shall, a(on#
other rele%ant factors, consider the followin#C

MAa= The de(and for li%in# wa#esJ

MAb= 3a#e ad4)st(ent %is-a-%is the cons)(er price inde'J

MAc= The cost of li%in# and chan#es or increases thereinJ

MAd= The needs of workers and their fa(iliesJ

MAe= The need to ind)ce ind)stries to in%est in the co)ntrysideJ

MAf= 7(pro%e(ents in standards of li%in#J

MA#= The pre%ailin# wa#e le%elsJ

MAh= 2air ret)rn of the capital in%ested and capacity to pay of e(ployersJ

MAi= 5ffects on e(ploy(ent #eneration and fa(ily inco(eJ and
MA4= The e<)itable distrib)tion of inco(e and wealth alon# the i(perati%es of econo(ic and social
de%elop(ent.

MThe wa#es prescribed in accordance with the pro%isions of this Title shall be the standard
pre%ailin# (ini()( wa#es in e%ery re#ion. These wa#es shall incl)de wa#es %aryin# with
ind)stries, pro%inces or localities if in the 4)d#(ent of the *e#ional 0oard conditions (ake s)ch
local differentiation proper and necessary to effect)ate the p)rpose of this Title.

MAny person, co(pany, corporation, partnership or any other entity en#a#ed in b)siness shall file
and re#ister ann)ally with the appropriate *e#ional 0oard, Co((ission and the $ational &tatistics
1ffice an ite(i;ed listin# of their labor co(ponent, specifyin# the na(es of their workers and
e(ployees below the (ana#erial le%el, incl)din# learners, apprentices and disabledBhandicapped
workers who were hired )nder the ter(s prescribed in the e(ploy(ent contracts, and their
correspondin# salaries and wa#es.
M3here the application of any prescribed wa#e increase by %irt)e of a law or 3a#e 1rder iss)ed by
any *e#ional 0oard res)lts in distortions of the wa#e str)ct)re within an establish(ent, the
e(ployer and the )nion shall ne#otiate to correct the distortions. Any 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)ntary arbitration. :nless otherwise a#reed by
the parties in writin#, s)ch disp)te shall be decided by the %ol)ntary arbitrator or panel of %ol)ntary
arbitrators within ten W1>X calendar days fro( the ti(e said disp)te was referred to %ol)ntary
arbitration.

M7n cases where there are no collecti%e a#ree(ents or reco#ni;ed labor )nions, the e(ployers and
workers shall endea%or to correct s)ch distortions. Any disp)te arisin# therefro( shall be settled
thro)#h the $ational Conciliation and Mediation 0oard and, if it re(ains )nresol%ed after ten W1>X
calendar days of conciliation, shall be referred to the appropriate branch of the $ational Labor
*elations Co((ission W$L*CX. 7t shall be (andatory for the $L*C to cond)ct contin)o)s hearin#s
and decide the disp)te within twenty W">X calendar days fro( the ti(e said disp)te is s)b(itted for
co(p)lsory arbitration.
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MThe pendency of a disp)te arisin# fro( a wa#e distortion shall not in any way delay the
applicability of any increase in prescribed wa#e rates p)rs)ant to the pro%isions of law or 3a#e
1rder.

MAs )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 salary rates between and a(on# e(ployee #ro)ps in an establish(ent as to effecti%ely
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.

MAll workers paid by res)lt, incl)din# those who are paid on piecework, (/(0, %(/0() or task basis,
shall recei%e not less than the prescribed wa#e rates per ei#ht WEX ho)rs work a day, or a proportion
thereof for workin# less than ei#ht WEX ho)rs.

MAll reco#ni;ed learnership and apprenticeship a#ree(ents shall be considered a)to(atically
(odified insofar as their wa#e cla)ses are concerned to reflect the prescribed wa#e rates.M

MArt. 1"+. Pro!#1##o& A.(#&' I&A,&$#o&. - $o preli(inary or per(anent in4)nction or te(porary
restrainin# order (ay be iss)ed by any co)rt, trib)nal or other entity a#ainst any proceedin#s
before the Co((ission or the *e#ional 0oards.M

MArt. 1"7. No&4D#m#&,#o& of B"&"f#'. 4 $o 3a#e 1rder iss)ed by any *e#ional 0oard shall
pro%ide for wa#e rates lower than the stat)tory (ini()( wa#e rates prescribed by Con#ress.M
&ec. . Aa= :pon the effecti%ity of this Act, the stat)tory (ini()( wa#e rates of all workers and
e(ployees in the pri%ate sector, whether a#ric)lt)ral or non-a#ric)lt)ral, shall be increased by
Twenty-fi%e pesos WP",.>>X per day, e'cept that workers and e(ployees in plantation a#ric)lt)ral
enterprises o)tside of the $ational Capital *e#ion W$C*X with an ann)al #ross sales of less than
2i%e (illion pesos WP,,>>>,>>>.>>X in the precedin# year shall be paid an increase of Twenty pesos
WP">.>>X, and e'cept f)rther that workers and e(ployees of cotta#eBhandicraft ind)stries, non-
plantation a#ric)lt)ral enterprises, retailBser%ice establish(ents re#)larly e(ployin# not (ore than
ten W1>X workers, and b)siness enterprises with a capitali;ation of not (ore than 2i%e h)ndred
tho)sand pesos WP,>>,>>>.>>X and e(ployin# not (ore than twenty W">X e(ployees, which are
located or operatin# o)tside the $C*, shall be paid only an increase of 2ifteen pesos WP1,.>>XC
Pro8#+"+, That those already recei%in# abo%e the (ini()( wa#e rates )p to 1ne h)ndred pesos
WP1>>.>>X shall also recei%e an increase of Twenty-fi%e pesos WP",.>>X per day, e'cept that the
workers and e(ployees (entioned in the first e'ception cla)se of this &ection shall also be paid
only an increase of Twenty pesos WP">.>>X, and e'cept f)rther that those e(ployees en)(erated in
the second e'ception cla)se of this section shall also be paid an increase of 2ifteen pesos
WP1,.>>XC Pro8#+"+, f,r!"r, That the appropriate *e#ional 0oard is hereby a)thori;ed to #rant
additional increases to the workers and e(ployees (entioned in the e'ception cla)ses of this
section if, on the basis of its deter(ination p)rs)ant to Article 1" of the Labor Code s)ch
increases are necessary.
Ab= The increase of Twenty-fi%e pesos WP",.>>X prescribed )nder this section shall apply to all
workers and e(ployees entitled to the sa(e in pri%ate ed)cational instit)tions as soon as they
ha%e increased or are #ranted a)thority to increase their t)ition fees d)rin# school year 19E9-199>.
1therwise, s)ch increase shall be so applicable not later than the openin# of the ne't school year
be#innin# 199>.

Ac= 5'e(pted fro( the pro%isions of this Act are ho)sehold or do(estic helpers and persons
e(ployed in the personal ser%ice of another, incl)din# fa(ily dri%ers.
*etailBser%ice establish(ents re#)larly e(ployin# not (ore than ten W1>X workers (ay be e'e(pted
fro( the applicability of this Act, )pon application with, and as deter(ined by, the appropriate
*e#ional 0oard in accordance with the applicable r)les and re#)lations iss)ed by the Co((ission.
3hene%er an application for e'e(ption has been d)ly filed with the appropriate *e#ional 0oard,
action on any co(plaint for alle#ed non-co(pliance with this Act shall be deferred pendin#
resol)tion of the application for e'e(ption by the appropriate *e#ional 0oard.
7n the e%ent that applications for e'e(ptions are not #ranted, e(ployees shall recei%e the
appropriate co(pensation d)e the( as pro%ided for by this Act pl)s interest of one percent W1KX
per (onth retroacti%e to the effecti%ity of this Act.

Ad= 7f e'pressly pro%ided for and a#reed )pon in the collecti%e bar#ainin# a#ree(ents, all increases
in the daily basic wa#e rates #ranted by the e(ployers three W6X (onths before the effecti%ity of this
Act shall be credited as co(pliance with the increases in the wa#e rates prescribed herein,
pro%ided that, where s)ch increases are less than the prescribed increases in the wa#e rates )nder
this Act, the e(ployer shall pay the difference. &)ch increases shall not incl)de anni%ersary wa#e
increases, (erit wa#e increases and those res)ltin# fro( the re#)lari;ation or pro(otion of
e(ployees.
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3here the application of the increases in the wa#e rates )nder this section res)lts in distortions as
defined )nder e'istin# laws in the wa#e str)ct)re within an establish(ent and #i%es rise to a
disp)te therein, s)ch disp)te shall first be settled %ol)ntarily between the parties and in the e%ent of
a deadlock, the sa(e shall be finally resol%ed thro)#h co(p)lsory arbitration by the re#ional
arbitration branch of the $ational Labor *elations Co((ission W$L*CX ha%in# 4)risdiction o%er the
workplace.
7t shall be (andatory for the $L*C to cond)ct contin)o)s hearin#s and decide any disp)te arisin#
)nder this section within twenty W">X calendar days fro( the ti(e said disp)te is for(ally s)b(itted
to it for arbitration. The pendency of a disp)te arisin# fro( a wa#e distortion shall not in any way
delay the applicability of the increases in the wa#e rates prescribed )nder this section.

&ec. ,. 3ithin a period of fo)r WX years fro( the effecti%ity of this Act and witho)t pre4)dice to
collecti%e bar#ainin# ne#otiations or a#ree(ents or other e(ploy(ent contracts between
e(ployers and workers, new b)siness enterprises that (ay be established o)tside the $C* and
e'port processin# ;ones whose operation or in%est(ents need initial assistance as (ay be
deter(ined by the Depart(ent of Labor and 5(ploy(ent in cons)ltation with the Depart(ent of
Trade and 7nd)stry or the Depart(ent of A#ric)lt)re, as the case (ay be, shall be e'e(pt fro( the
application of this Act for not (ore than three W6X years fro( the start of their operationsC Pro8#+"+,
That s)ch new b)siness enterprises established in *e#ion 777 WCentral L);onX and *e#ion 7/
W&o)thern Ta#alo#X shall be e'e(pt fro( s)ch increases only for two W"X years fro( the start of
their operations, e'cept those established in the Pro%inces of Palawan, 1riental Mindoro,
1ccidental Mindoro, Marind)<)e, *o(blon, H)e;on and A)rora, which shall en4oy s)ch e'e(ption
for not (ore than three W6X years fro( the start of their operations.
&ec. +. 7n the case of contracts for constr)ction pro4ects and for sec)rity, 4anitorial and si(ilar
ser%ices, the prescribed increases in the wa#e rates of the workers shall be borne by the principals
or clients of the constr)ctionBser%ice contractors and the contract shall be dee(ed a(ended
accordin#ly. 7n the e%ent, howe%er, that the principal or client fails to pay the prescribed wa#e rates,
the constr)ctionBser%ice contractor shall be 4ointly and se%erally liable with his principal or client.
&ec. 7. :pon written petition of the (a4ority of the e(ployees or workers concerned, all pri%ate
establish(ents, co(panies, b)sinesses, and other entities with twenty-fi%e A",= or (ore e(ployees
and located within one A1= kilo(eter radi)s to a co((ercial, sa%in#s or r)ral bank shall pay the
wa#es and other benefits of their e(ployees thro)#h any of said banks and within the period for
pay(ent of wa#es fi'ed by Presidential Decree $o. ", as a(ended, otherwise known as the
Labor Code of the Philippines.
&ec. E. 3hene%er applicable and )pon re<)est of a concerned worker or )nion, the bank shall
iss)e a certification of the record of pay(ent of wa#es of a partic)lar worker or workers for a
partic)lar payroll period.

&ec. 9. The Depart(ent of Labor and 5(ploy(ent shall cond)ct inspections as often as possible
within its (anpower constraint of the payroll and other financial records kept by the co(pany or
b)siness to deter(ine whether the workers are paid the prescribed wa#e rates and other benefits
#ranted by law or any 3a#e 1rder. 7n )nioni;ed co(panies, the Depart(ent of Labor and
5(ploy(ent inspectors shall always be acco(panied by the president or any responsible officer of
the reco#ni;ed bar#ainin# )nit or of any interested )nion in the cond)ct of the inspection. 7n non-
)nioni;ed co(panies, establish(ents or b)sinesses, the inspection sho)ld be carried o)t in the
presence of a worker representin# the workers in the said co(pany. The workersO representati%e
shall ha%e the ri#ht to s)b(it his own findin#s to the Depart(ent of Labor and 5(ploy(ent and to
testify on the sa(e if he cannot conc)r with the findin#s of the labor inspector.
&ec. 1>. The f)nds necessary to carry o)t the pro%isions of this Act shall be taken fro( the
Co(pensation and 1r#ani;ational Ad4)st(ent 2)nd, the Contin#ent 2)nd, and other sa%in#s )nder
*ep)blic Act $o. ++EE, otherwise known as the Feneral Appropriations Act of 19E9, or fro( any
)nappropriated f)nds of the $ational Treas)ryC Pro8#+"+, That the f)ndin# re<)ire(ents necessary
to i(ple(ent this Act shall be incl)ded in the ann)al Feneral Appropriations Act for the s)cceedin#
years.
&ec. 11. The $ational 3a#es Co)ncil created )nder 5'ec)ti%e 1rder $o. +1 and the $ational
Prod)cti%ity Co((ission created )nder 5'ec)ti%e 1rder $o. +1, are hereby abolished. All
properties, records, e<)ip(ent, b)ildin#s, facilities, and other assets, liabilities and appropriations
of and belon#in# to the abo%e(entioned offices, as well as other (atters pendin# therein, shall be
transferred to the Co((ission. All personnel of the abo%e-abolished offices shall contin)e to
f)nction in a holdo%er capacity and shall be preferentially considered for appoint(ents to or
place(ent in the Co((ission.
Any official or e(ployee separated fro( the ser%ice as a res)lt of the abolition of offices p)rs)ant to
this Act shall be entitled to appropriate separation pay and retire(ent and other benefits accr)in# to
the( )nder e'istin# laws. 7n lie), thereof, at the option of the e(ployee, he shall be preferentially
considered for e(ploy(ent in the #o%ern(ent or in any of its s)bdi%isions, instr)(entalities, or
a#encies, incl)din# #o%ern(ent-owned or controlled corporations and their s)bsidiaries.
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&ec. 1". Any person, corporation, tr)st, fir(, partnership, association or entity which ref)ses or fails
to pay any of the prescribed increases or ad4)st(ents in the wa#e rates (ade in accordance with
this Act shall be p)nished by a fine not e'ceedin# Twenty-fi%e tho)sand pesos WP",,>>>.>>X andBor
i(prison(ent of not less than one W1X year nor (ore than two W"X yearsC Pro8#+"+, That any person
con%icted )nder this Act shall not be entitled to the benefits pro%ided for )nder the Probation Law.
7f the %iolation is co((itted by a corporation, tr)st or fir(, partnership, association or any other
entity, the penalty of i(prison(ent shall be i(posed on the entityOs responsible officers, incl)din#,
b)t not li(ited to, the president, %ice-president, chief e'ec)ti%e officer, #eneral (ana#er, (ana#in#
director or partner.

&ec. 16. The &ecretary of Labor and 5(ploy(ent shall pro()l#ate the necessary r)les and
re#)lations to i(ple(ent the pro%isions of this Act.

&ec. 1. All laws, orders, iss)ances, r)les and re#)lations or parts thereof inconsistent with the
pro%isions of this Act are hereby repealed, a(ended or (odified accordin#ly. 7f any pro%ision or
part of this Act, or the application thereof to any person or circ)(stance, is held in%alid or
)nconstit)tional, the re(ainder of this Act or the application of s)ch pro%ision or part hereof to other
persons or circ)(stances shall not be affected thereby.
$othin# in this Act shall be constr)ed to red)ce any e'istin# wa#e rates, allowances and benefits of
any for( )nder e'istin# laws, decrees, iss)ances, e'ec)ti%e orders, andBor )nder any contract or
a#ree(ent between the workers and e(ployers.

&ec. 1,. This Act takes effect fifteen W1,X days after its co(plete p)blication in the 1fficial Fa;ette
or in at least two W"X national newspapers of #eneral circ)lation, whiche%er co(es earlier.
2. REP5BLIC ACT *+. 6(55
*5P:0L7C ACT $o. +9,,
A$ ACT T1 D5CLA*5 :$LA32:L T.5 P*ACT7C5 12 MATC.7$F 27L7P7$1 31M5$ 21*
MA**7AF5 T1 21*57F$ $AT71$AL& 1$ A MA7L 1*D5* 0A&7& A$D 1T.5* &7M7LA*
P*ACT7C5&, 7$CL:D7$F T.5 AD/5*T7&5M5$T, P:0L7CAT71$, P*7$T7$F 1*
D7&T*70:T71$ 12 0*1C.:*5&, 2L75*& A$D 1T.5* P*1PAFA$DA MAT5*7AL& 7$
2:*T.5*A$C5 T.5*512 A$D P*1/7D7$F P5$ALT@ T.5*521*5
Se%/,"n 1. 7t is the policy of the &tate to ens)re and #)arantee the en4oy(ent of the people of a
decent standard of li%in#. Towards this end, the &tate shall take (eas)res to protect 2ilipino
wo(en fro( bein# e'ploited in )tter disre#ard of h)(an di#nity in their p)rs)it of econo(ic
)plift(ent.
Se%/,"n 2. P)rs)ant thereto, it is hereby declared )nlawf)lC
Aa= 2or a person, nat)ral or 4)ridical, association, cl)b or any other entity to co((it, directly or
indirectly, any of the followin# actsC
A1= To establish or carry on a b)siness which has for its p)rpose the (atchin# of 2ilipino wo(en for
(arria#e to forei#n nationals either on a (ail-order basis or thro)#h personal introd)ctionJ
A"= To ad%ertise, p)blish, print or distrib)te or ca)se the ad%ertise(ent, p)blication, printin# or
distrib)tion of any broch)re, flier, or any propa#anda (aterial calc)lated to pro(ote the prohibited
acts in the precedin# s)bpara#raphJ
A6= To solicit, enlist or in any (anner attract or ind)ce any 2ilipino wo(an to beco(e a (e(ber in
any cl)b or association whose ob4ecti%e is to (atch wo(en for (arria#e to forei#n nationals either
on a (ail-order basis or thro)#h personal introd)ction for a feeJ
A= To )se the postal ser%ice to pro(ote the prohibited acts in s)bpara#raph 1 hereof.1awphi1calf
Ab= 2or the (ana#er or officer-in-char#e or ad%ertisin# (ana#er of any newspaper, (a#a;ine,
tele%ision or radio station, or other (edia, or of an ad%ertisin# a#ency, printin# co(pany or other
si(ilar entities, to knowin#ly allow, or consent to, the acts prohibited in the precedin# para#raph.
Se%/,"n >. 7n case of %iolation of this Act by an association, cl)b, partnership, corporation, or any
other entity, the inc)(bent officers thereof who ha%e knowin#ly participated in the %iolation of this
Act shall be held liable.1awphilca1f
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Se%/,"n 4. Any person fo)nd #)ilty by the co)rt to ha%e %iolated any of the acts herein prohibited
shall s)ffer an i(prison(ent of not less than si' A+= years and one A1= day b)t not (ore than ei#ht
AE= years, and a fine of not less than 5i#ht tho)sand pesos APE,>>>= b)t not (ore than Twenty
tho)sand pesos AP">,>>>=C Pro%ided, That if the offender is a forei#ner, he shall be i((ediately
deported and barred fore%er fro( enterin# the co)ntry after ser%in# his sentence and pay(ent of
fine.
>. REP5BLIC ACT *+. 71(2
*5P:0L7C ACT $1. 719"
.

A$ ACT P*1M1T7$F T.5 7$T5F*AT71$ 12 31M5$ A& 2:LL A$D 5H:AL PA*T$5*& 12
M5$ 7$ D5/5L1PM5$T A$D $AT71$ 0:7LD7$F A$D 21* 1T.5* P:*P1&5&.
&ection 1. Title. N This Act shall be cited as the TWom"& #& D"8"*o%m"& (&+ N(#o& B,#*+#&. A$.T
&ec. ". Declaration of Policy. N The &tate reco#ni;es the role of wo(en in nation b)ildin# and
shall ens)re the f)nda(ental e<)ality before the law of wo(en and (en. The &tate shall pro%ided
wo(en ri#hts and opport)nities e<)al to that of (en.
To attain the fore#oin# policyC
A1= A s)bstantial portion of official de%elop(ent assistance f)nds recei%ed fro( forei#n
#o%ern(ents and ()ltilateral a#encies and or#ani;ations shall be set aside and )tili;ed by the
a#encies concerned to s)pport pro#ra(s and acti%ities for wo(enJ
A"= All #o%ern(ent depart(ents shall ens)re that wo(en benefit e<)ally and participate directly in
the de%elop(ent pro#ra(s and pro4ects of said depart(ent, specifically those f)nded )nder official
forei#n de%elop(ent assistance, to ens)re the f)ll participation and in%ol%e(ent of wo(en in the
de%elop(ent processJ and
A6= All #o%ern(ent depart(ents and a#encies shall re%iew and re%ise all their re#)lations, circ)lars,
iss)ances and proced)res to re(o%e #ender bias therein.
&ec. 6. *esponsible A#ency. N The $ational 5cono(ic and De%elop(ent A)thority A$5DA= shall
pri(arily be responsible for ens)rin# the participation of wo(en as recipients in forei#n aid, #rants
and loans. 7t shall deter(ine and reco((end the a(o)nt to be allocated for the de%elop(ent
acti%ity in%ol%in# wo(en.

&ec. . Mandate. N The $5DA, with the assistance of the $ational Co((ission on the *ole of
2ilipino 3o(en, shall ens)re that the different #o%ern(ent depart(ents, incl)din# its a#encies and
instr)(entalities which, directly or indirectly, affect the participation of wo(en in national
de%elop(ent and their inte#ration thereinC
A1= 2or()late and prioriti;e r)ral or co)ntryside de%elop(ent pro#ra(s or pro4ects, pro%ide inco(e
and e(ploy(ent opport)nities to wo(en in the r)ral areas and th)s, pre%ent their hea%y (i#ration
fro( r)ral to )rban or forei#n co)ntriesJ
A"= 7ncl)de an assess(ent of the e'tent to which their pro#ra(s andBor pro4ects inte#rate wo(en
in the de%elop(ent process and of the i(pact of said pro#ra(s or pro4ects on wo(en, incl)din#
their i(plications in enhancin# the self-reliance of wo(en in i(pro%in# their inco(eJ
A6= 5ns)re the acti%e participation of wo(en and wo(enOs or#ani;ations in the de%elop(ent
pro#ra(s andBor pro4ects incl)din# their in%ol%e(ent in the plannin#, desi#n, i(ple(entation,
(ana#e(ent, (onitorin# and e%al)ation thereofJ
A= Collect se'-disa##re#ated data and incl)de s)ch data in its pro#ra(Bpro4ect paper, proposal or
strate#yJ
A,= 5ns)re that pro#ra(s andBor pro4ects are desi#ned so that the percenta#e of wo(en who
recei%e assistance is appro'i(ately proportionate to either their traditional participation in the
tar#eted acti%ities or their proportion of the pop)lation, whiche%er is hi#her. 1therwise, the followin#
sho)ld be stated in the pro#ra(Bpro4ect paper, proposal or strate#yJ
Aa= The obstacle in achie%in# the #oalJ
Ab= The steps bein# taken to o%erco(e those obstaclesJ and
Ac= To the e'tent that steps are not bein# taken to o%erco(e those obstacles, why they are not
bein# taken.
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A+= Assist wo(en in acti%ities that are of critical si#nificance to their self-reliance and de%elop(ent.
&ec. ,. 5<)ality in Capacity to Act. N 3o(en of le#al a#e, re#ardless of ci%il stat)s, shall ha%e the
capacity to act and enter into contracts which shall in e%ery respect be e<)al to that of (en )nder
si(ilar circ)(stances.
7n all contract)al sit)ations where (arried (en ha%e the capacity to act, (arried wo(en shall ha%e
e<)al ri#hts.
To this endC
A1= 3o(en shall ha%e the capacity to borrow and obtain loans and e'ec)te sec)rity and credit
arran#e(ent )nder the sa(e conditions as (enJ

A"= 3o(en shall ha%e e<)al access to all #o%ern(ent and pri%ate sector pro#ra(s #rantin#
a#ric)lt)ral credit, loans and non-(aterial reso)rces and shall en4oy e<)al treat(ent in a#rarian
refor( and land resettle(ent pro#ra(sJ
A6= 3o(en shall ha%e e<)al ri#hts to act as incorporators and enter into ins)rance contractsJ and
A= Married wo(en shall ha%e ri#hts e<)al to those of (arried (en in applyin# for passport, sec)re
%isas and other tra%el doc)(ents, witho)t need to sec)re the consent of their spo)ses.
7n all other si(ilar contract)al relations, wo(en shall en4oy e<)al ri#hts and shall ha%e the capacity
to act which shall in e%ery respect be e<)al to those of (en )nder si(ilar circ)(stances.

&ec. +. 5<)al Me(bership in Cl)bs. N 3o(en shall en4oy e<)al access to (e(bership in all
social, ci%ic and recreational cl)bs, co((ittees, associations and si(ilar other or#ani;ations
de%oted to p)blic p)rpose. They shall be entitled to the sa(e ri#hts and pri%ile#es accorded to their
spo)ses if they belon# to the sa(e or#ani;ation.
&ec. 7. Ad(ission to Military &chools. N Any pro%ision of the law to the contrary notwithstandin#,
consistent with the needs of the ser%ices, wo(en shall be accorded e<)al opport)nities for
appoint(ent, ad(ission, trainin#, #rad)ation and co((issionin# in all (ilitary or si(ilar schools of
the Ar(ed 2orces of the Philippines and the Philippine $ational Police not later than the fo)rth
acade(ic year followin# the appro%al of this Act in accordance with the standards re<)ired for (en
e'cept for those (ini()( essential ad4)st(ents re<)ired by physiolo#ical differences between
se'es.
&ec. E. /ol)ntary Pa#-707F, F&7& and &&& Co%era#e. N Married persons who de%ote f)ll ti(e to
(ana#in# the ho)sehold and fa(ily affairs shall, )pon the workin# spo)seOs consent, be entitled to
%ol)ntary Pa#-707F APa#t)t)l)n#an N 7kaw, 0an#ko, 7nd)striya at Fobyerno=, Fo%ern(ent &er%ice
7ns)rance &yste( AF&7&= or &ocial &ec)rity &yste( A&&&= co%era#e to the e'tent of one-half A1B"=
of the salary and co(pensation of the workin# spo)se. The contrib)tions d)e thereon shall be
ded)cted fro( the salary of the workin# spo)se.
The F&7& or the &&&, as the case (ay be, shall iss)e r)les and re#)lations necessary to
effecti%ely i(ple(ent the pro%isions of this section.
4. REP5BLIC ACT *+. 7>22
REP5BLIC ACT *+. 7>22

A* ACT I*CREASI*; $ATER*ITA BE*E0ITS I* 0A:+R +0 W+$E* W+RDERS I* THE
PRI:ATE SECT+R' A$E*DI*; 0+R THE P5RP+SE SECTI+* 14?A +0 REP5BLIC ACT *+.
1161' AS A$E*DED' A*D 0+R +THER P5RP+SES

&5CT71$ 1. &ection 1-A of *ep)blic Act $o. 11+1, as a(ended, is f)rther a(ended to read as
followsC
M&5C. 1-A. M("r&#0 L"(8" B"&"f#. - A co%ered fe(ale e(ployee who has paid at least
three (onthly (aternity contrib)tions in the twel%e-(onth period precedin# the se(ester of her
childbirth, abortion or (iscarria#e and who is c)rrently e(ployed shall be paid a daily (aternity
benefit e<)i%alent to one h)ndred percent A1>>K= of her present basic salary, allowances and
other benefits or the cash e<)i%alent of s)ch benefits for si'ty A+>= days s)b4ect to the followin#
conditionsC
MAa= That the e(ployee shall ha%e notified her e(ployer of her pre#nancy and the probable
date of her childbirth which notice shall be trans(itted to the &&& in accordance with the r)les
and re#)lations it (ay pro%ideJ

MAb= That the pay(ent shall be ad%anced by the e(ployer in two e<)al install(ents within thirty
A6>= days fro( the filin# of the (aternity lea%e applicationC

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MAc= That in case of caesarian deli%ery, the e(ployee shall be paid the daily (aternity benefit
for se%enty-ei#ht A7E= daysJ

MAd= That pay(ent of daily (aternity benefits shall be a bar to the reco%ery of sickness benefits
pro%ided by this Act for the sa(e co(pensable period of si'ty A+>= days for the sa(e childbirth,
abortion, or (iscarria#eJ

MAe= That the (aternity benefits pro%ided )nder this &ection shall be paid only for the first fo)r
deli%eries after March 16, 1976J

MAf= That the &&& shall i((ediately rei(b)rse the e(ployer of one h)ndred percent A1>>K= of
the a(o)nt of (aternity benefits ad%anced to the e(ployee by the e(ployer )pon receipt of
satisfactory proof of s)ch pay(ent and le#ality thereofJ and

MA#= That if an e(ployee sho)ld #i%e birth or s)ffer abortion or (iscarria#e witho)t the re<)ired
contrib)tions ha%in# been re(itted for her by her e(ployer to the &&&, or witho)t the latter
ha%in# been pre%io)sly notified by the e(ployer of the ti(e of the pre#nancy, the e(ployer shall
pay to the &&& da(a#es e<)i%alent to the benefits which said e(ployee wo)ld otherwise ha%e
been entitled to, and the &&& shall in t)rn pay s)ch a(o)nt to the e(ployee concerned.M
&5C. ". $othin# in this Act shall be constr)ed as to di(inish e'istin# (aternity benefits )nder
present laws and collecti%e bar#ainin# a#ree(ents.

5. REP5BLIC ACT *+. 7)77
SECTI+* >. Wor<- $ducation or 3raining :Related- Se;ual 6arassment +efined. - 3ork,
ed)cation or trainin#-related se')al harass(ent is co((itted by an e(ployer, e(ployee,
(ana#er, s)per%isor, a#ent of the e(ployer, teacher, instr)ctor, professor, coach, trainor, or any
other person who, ha%in# a)thority, infl)ence or (oral ascendancy o%er another in a work or
trainin# or ed)cation en%iron(ent, de(ands, re<)ests or otherwise re<)ires any se')al fa%or fro(
the other, re#ardless of whether the de(and, re<)est or re<)ire(ent for s)b(ission is accepted
by the ob4ect of said Act.

Aa= 7n a work-related or e(ploy(ent en%iron(ent, se')al harass(ent is co((itted whenC
A1= The se')al fa%or is (ade as a condition in the hirin# or in the e(ploy(ent, re-e(ploy(ent
or contin)ed e(ploy(ent of said indi%id)al, or in #rantin# said indi%id)al fa%orable co(pensation,
ter(s of conditions, pro(otions, or pri%ile#esJ or the ref)sal to #rant the se')al fa%or res)lts in
li(itin#, se#re#atin# or classifyin# the e(ployee which in any way wo)ld discri(inate, depri%e
ordi(inish e(ploy(ent opport)nities or otherwise ad%ersely affect said e(ployeeJ

A"= The abo%e acts wo)ld i(pair the e(ployeeOs ri#hts or pri%ile#es )nder e'istin# labor lawsJ
or

A6= The abo%e acts wo)ld res)lt in an inti(idatin#, hostile, or offensi%e en%iron(ent for the
e(ployee.
SECTI+* 4. +uty of the $mloyer or 6ead of 2ffice in a Wor<:related- $ducation or 3raining
$nvironment. - 7t shall be the d)ty of the e(ployer or the head of the work-related, ed)cational or
trainin# en%iron(ent or instit)tion, to pre%ent or deter the co((ission of acts of se')al harass(ent
and to pro%ide the proced)res for the resol)tion, settle(ent or prosec)tion of acts of se')al
harass(ent. Towards this end, the e(ployer or head of office shallC

Aa= Pro()l#ate appropriate r)les and re#)lations in cons)ltation with and 4oint1y appro%ed by
the e(ployees or st)dents or trainees, thro)#h their d)ly desi#nated representati%es, prescribin#
the proced)re for the in%esti#ation of se')al harass(ent cases and the ad(inistrati%e sanctions
therefor.

Ad(inistrati%e sanctions shall not be a bar to prosec)tion in the proper co)rts for )nlawf)l acts
of se')al harass(ent.

The said r)les and re#)lations iss)ed p)rs)ant to this s)bsection Aa= shall incl)de, a(on#
others, #)idelines on proper decor)( in the workplace and ed)cational or trainin# instit)tions.
Ab= Create a co((ittee on decor)( and in%esti#ation of cases on se')al harass(ent. The
co((ittee shall cond)ct (eetin#s, as the case (ay be, with officers and e(ployees, teachers,
instr)ctors, professors, coaches, trainors, and st)dents or trainees to increase )nderstandin# and
pre%ent incidents of se')al harass(ent. 7t shall also cond)ct the in%esti#ation of alle#ed cases
constit)tin# se')al harass(ent.

7n the case of a work-related en%iron(ent, the co((ittee shall be co(posed of at least one A1=
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representati%e each fro( the (ana#e(ent, the )nion, if any, the e(ployees fro( the s)per%isory
rank, and fro( the rank and file e(ployees.
7n the case of the ed)cational or trainin# instit)tion, the co((ittee shall be co(posed of at
least one A1= representati%e fro( the ad(inistration, the trainors, instr)ctors, professors or
coaches and st)dents or trainees, as the case (ay be.

The e(ployer or head of office, ed)cational or trainin# instit)tion shall disse(inate or post a
copy of this Act for the infor(ation of all concerned.

SECTI+* 5. Liability of the $mloyer- 6ead of 2ffice- $ducational or 3raining 1nstitution.
4 The e(ployer or head of office, ed)cational or trainin# instit)tion shall be solidarily liable for
da(a#es arisin# fro( the acts of se')al harass(ent co((itted in the e(ploy(ent, ed)cation or
trainin# en%iron(ent if the e(ployer or head of office, ed)cational or trainin# instit)tion is infor(ed
of s)ch acts by the offended party and no i((ediate action is taken.
6. REP5BLIC ACT *+. )442
REP5BLIC ACT *+. )442
$,-!an/ W"!=e!s and +#e!seas 0,1,,n"s A%/ ". 1((5
Se%/,"n 2. De%1a!a/,"n ". P"1,%,es.
Aa= 7n the p)rs)it of an independent forei#n policy and while considerin# national so%erei#nty,
territorial inte#rity, national interest and the ri#ht to self- deter(ination para(o)nt in its relations
with other states, the &tate shall, at all ti(es, )phold the di#nity of its citi;ens whether in co)ntry or
o%erseas, in #eneral, and 2ilipino (i#rant workers, in partic)lar.
Ab= The &tate shall afford f)ll protection to labor, local and o%erseas, or#ani;ed and )nor#ani;ed,
and pro(ote f)ll e(ploy(ent and e<)ality of e(ploy(ent opport)nities for all. Towards this end,
the &tate shall pro%ide ade<)ate and ti(ely social, econo(ic and le#al ser%ices to 2ilipino (i#rant
workers.
Ac= 3hile reco#ni;in# the si#nificant contrib)tion of 2ilipino (i#rant workers to the national
econo(y thro)#h their forei#n e'chan#e re(ittances, the &tate does not pro(ote o%erseas
e(ploy(ent as a (eans to s)stain econo(ic #rowth an achie%e national de%elop(ent. The
e'istence of the o%erseas e(ploy(ent pro#ra( rests solely on the ass)rance that the di#nity and
f)nda(ental h)(an ri#hts and freedo(s of the 2ilipino citi;en shall not, at any ti(e, be
co(pro(ised or %iolated. The &tate, therefore, shall contin)o)sly create local e(ploy(ent
opport)nities and pro(ote the e<)itable distrib)tion of wealth and the benefits of de%elop(ent.
Ad= The &tate affir(s the f)nda(ental e<)ality before the law of wo(en and (en and the si#nificant
role of wo(en in nation-b)ildin#. *eco#ni;in# the contrib)tion of o%erseas (i#rant wo(en workers
and their partic)lar %)lnerabilities, the &tate shall apply #ender sensiti%e criteria in the for()lation
and i(ple(entation of policies and pro#ra(s affectin# (i#rant workers and the co(position of
bodies tasked for the welfare of (i#rant workers.
Ae= 2ree access to the co)rts and <)asi-4)dicial bodies and ade<)ate le#al assistance shall not be
denied to any person by reason of po%erty. 7n this re#ard, it is i(perati%e that an effecti%e
(echanis( be instit)ted to ens)re that the ri#hts and interest of distressed o%erseas 2ilipinos, in
#eneral, and 2ilipino (i#rant workers, in partic)lar, doc)(ented or )ndoc)(ented, are ade<)ately
protected and safe#)arded.
Af= The ri#ht of 2ilipino (i#rant workers and all o%erseas 2ilipinos to participate in the de(ocratic
decision-(akin# processes of the &tate and to be represented in instit)tions rele%ant to o%erseas
e(ploy(ent is reco#ni;ed and #)aranteed.
A#= The &tate reco#ni;es that the )lti(ate protection to all (i#rant workers is the possession of
skills. P)rs)ant to this and as soon as practicable, the #o%ern(ent shall deploy andBor allow the
deploy(ent only of skilled 2ilipino workers.
Ah= $on-#o%ern(ental or#ani;ations, d)ly reco#ni;ed as le#iti(ate, are partners of the &tate in the
protection of 2ilipino (i#rant workers and in the pro(otion of their welfare. The &tate shall
cooperate with the( in a spirit of tr)st and ()t)al respect.
Ai= Fo%ern(ent fees and other ad(inistrati%e costs of recr)it(ent, introd)ction, place(ent and
assistance to (i#rant workers shall be rendered free witho)t pre4)dice to the pro%ision of &ection
6+ hereof.
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$onetheless, the deploy(ent of 2ilipino o%erseas workers, whether land- based or sea-based, by
local ser%ice contractors and (annin# a#encies e(ployin# the( shall be enco)ra#ed. Appropriate
incenti%es (ay be e'tended to the(.
Se%/,"n >. De.,n,/,"ns. - 2or p)rposes of this ActC
Aa= Mi#rant worker refers to a person who is to be en#a#ed, is en#a#ed or has been en#a#ed in a
re()nerated acti%ity in a state of which he or she is not a le#al residentJ to be )sed
interchan#eably with o%erseas 2ilipino worker.
Ab= Fender-sensiti%ity shall (ean co#ni;ance of the ine<)alities and ine<)ities pre%alent in society
between wo(en and (en and a co((it(ent to address iss)es with concern for the respecti%e
interests of the se'es.
Ac= 1%erseas 2ilipinos refers to dependents of (i#rant workers and other 2ilipino nationals abroad
who are in distress as (entioned in &ections " and "+ of this Act.
I. DEPL+A$E*T
&ection . Deploy(ent of Mi#rant 3orkers. - The &tate shall deploy o%erseas 2ilipino workers only
in co)ntries where the ri#hts of 2ilipino (i#rant workers are protected. The #o%ern(ent reco#ni;es
any of the followin# as a #)arantee on the part of the recei%in# co)ntry for the protection and the
ri#hts of o%erseas 2ilipino workersC
Aa= 7t has e'istin# labor and social laws protectin# the ri#hts of (i#rant workersJ
Ab= 7t is a si#natory to ()ltilateral con%entions, declarations or resol)tions relatin# to the protection
of (i#rant workersJ
Ac= 7t has concl)ded a bilateral a#ree(ent or arran#e(ent with the #o%ern(ent protectin# the ri#hts
of o%erseas 2ilipino workersJ and
Ad= 7t is takin# positi%e, concrete (eas)res to protect the ri#hts of (i#rant workers.
Se%/,"n 5. Te!m,na/,"n "! Ban "n De1"ymen/. - $otwithstandin# the pro%isions of &ection
hereof, the #o%ern(ent, in p)rs)it of the national interest or when p)blic welfare so re<)ires, (ay,
at any ti(e, ter(inate or i(pose a ban on the deploy(ent of (i#rant workers.
II. ILLE;AL RECR5IT$E*T
Se%/,"n 6. De.,n,/,"n. - 2or p)rposes of this Act, ille#al recr)it(ent shall (ean any act of
can%assin#, enlistin#, contractin#, transportin#, )tili;in#, hirin#, or proc)rin# workers and incl)des
referrin#, contract ser%ices, pro(isin# or ad%ertisin# for e(ploy(ent abroad, whether for profit or
not, when )ndertaken by a non-licensee or non-holder of a)thority conte(plated )nder Article 16Af=
of Presidential Decree $o. ", as a(ended, otherwise known as the Labor Code of the
PhilippinesC Pro%ided, That any s)ch non-licensee or non-holder who, in any (anner, offers or
pro(ises for a fee e(ploy(ent abroad to two or (ore persons shall be dee(ed so en#a#ed. 7t
shall likewise incl)de the followin# acts, whether co((itted by any person, whether a non-licensee,
non-holder, licensee or holder of a)thorityC
Aa= To char#e or accept directly or indirectly any a(o)nt #reater than that specified in the sched)le
of allowable fees prescribed by the &ecretary of Labor and 5(ploy(ent, or to (ake a worker pay
any a(o)nt #reater than that act)ally recei%ed by hi( as a loan or ad%anceJ
Ab= To f)rnish or p)blish any false notice or infor(ation or doc)(ent in relation to recr)it(ent or
e(ploy(entJ
Ac= To #i%e any false notice, testi(ony, infor(ation or doc)(ent or co((it any act of
(isrepresentation for the p)rpose of sec)rin# a license or a)thority )nder the Labor CodeJ
Ad= To ind)ce or atte(pt to ind)ce a worker already e(ployed to <)it his e(ploy(ent in order to
offer hi( another )nless the transfer is desi#ned to liberate a worker fro( oppressi%e ter(s and
conditions of e(ploy(entJ
Ae= To infl)ence or atte(pt to infl)ence any person or entity not to e(ploy any worker who has not
applied for e(ploy(ent thro)#h his a#encyJ
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Af= To en#a#e in the recr)it(ent or place(ent of workers in 4obs har(f)l to p)blic health or (orality
or to the di#nity of the *ep)blic of the PhilippinesJ
A#= To obstr)ct or atte(pt to obstr)ct inspection by the &ecretary of Labor and 5(ploy(ent or by
his d)ly a)thori;ed representati%eJ
Ah= To fail to s)b(it reports on the stat)s of e(ploy(ent, place(ent %acancies, re(ittance of
forei#n e'chan#e earnin#s, separation fro( 4obs, depart)res and s)ch other (atters or infor(ation
as (ay be re<)ired by the &ecretary of Labor and 5(ploy(entJ
Ai= To s)bstit)te or alter to the pre4)dice of the worker, e(ploy(ent contracts appro%ed and %erified
by the Depart(ent of Labor and 5(ploy(ent fro( the ti(e of act)al si#nin# thereof by the parties
)p to and incl)din# the period of the e'piration of the sa(e witho)t the appro%al of the Depart(ent
of Labor and 5(ploy(entJ
A4= 2or an officer or a#ent of a recr)it(ent or place(ent a#ency to beco(e an officer or (e(ber of
the 0oard of any corporation en#a#ed in tra%el a#ency or to be en#a#ed directly or indirectly in the
(ana#e(ent of a tra%el a#encyJ
Ak= To withhold or deny tra%el doc)(ents fro( applicant workers before depart)re for (onetary or
financial considerations other than those a)thori;ed )nder the Labor Code and its i(ple(entin#
r)les and re#)lationsJ
Al= 2ail)re to act)ally deploy witho)t %alid reason as deter(ined by the Depart(ent of Labor and
5(ploy(ent J and
A(= 2ail)re to rei(b)rse e'penses inc)rred by the worker in connection with his doc)(entation and
processin# for p)rposes of deploy(ent, in cases where the deploy(ent does not act)ally take
place witho)t the workerOs fa)lt. 7lle#al recr)it(ent when co((itted by a syndicate or in lar#e scale
shall be considered an offense in%ol%in# econo(ic sabota#e.
7lle#al recr)it(ent is dee(ed co((itted by a syndicate if carried o)t by a #ro)p of three A6= or
(ore persons conspirin# or confederatin# with one another. 7t is dee(ed co((itted in lar#e scale if
co((itted a#ainst three A6= or (ore persons indi%id)ally or as a #ro)p.
The persons cri(inally liable for the abo%e offenses are the principals, acco(plices and
accessories. 7n case of 4)ridical persons, the officers ha%in# control, (ana#e(ent or direction of
their b)siness shall be liable.
Se%/,"n 7. Pena1/,es. -
Aa= Any person fo)nd #)ilty of ille#al recr)it(ent shall s)ffer the penalty of i(prison(ent of not less
than si' A+= years and one A1= day b)t not (ore than twel%e A1"= years and a fine of not less than
Two h)ndred tho)sand pesos AP">>,>>>.>>= nor (ore than 2i%e h)ndred tho)sand pesos
AP,>>,>>>.>>=.
Ab= The penalty of life i(prison(ent and a fine of not less than 2i%e h)ndred tho)sand pesos
AP,>>,>>>.>>= nor (ore than 1ne (illion pesos AP1,>>>,>>>.>>= shall be i(posed if ille#al
recr)it(ent constit)tes econo(ic sabota#e as defined herein.
Pro%ided, howe%er, That the (a'i()( penalty shall be i(posed if the person ille#ally recr)ited is
less than ei#hteen A1E= years of a#e or co((itted by a non-licensee or non-holder of a)thority.
Se%/,"n ). P!"&,b,/,"n "n +..,%,a1s and Em1"yees. - 7t shall be )nlawf)l for any official or
e(ployee of the Depart(ent of Labor and 5(ploy(ent, the Philippine 1%erseas 5(ploy(ent
Ad(inistration AP15A=, or the 1%erseas 3orkers 3elfare Ad(inistration A133A=, or the
Depart(ent of 2orei#n Affairs, or other #o%ern(ent a#encies in%ol%ed in the i(ple(entation of this
Act, or their relati%es within the fo)rth ci%il de#ree of consan#)inity or affinity, to en#a#e, directly or
indirectly in the b)siness of recr)itin# (i#rant workers as defined in this Act. The penalties pro%ided
in the i((ediate precedin# para#raph shall be i(posed )pon the(.
Se%/,"n (. :en2e. - A cri(inal action arisin# fro( ille#al recr)it(ent as defined herein shall be filed
with the *e#ional Trial Co)rt of the pro%ince or city where the offense was co((itted or where the
offended party act)ally resides at the ti(e of the co((ission of the offenseC Pro%ided, That the
co)rt where the cri(inal action is first filed shall ac<)ire 4)risdiction to the e'cl)sion of other co)rtsC
Pro%ided, howe%er, That the aforestated pro%isions shall also apply to those cri(inal actions that
ha%e already been filed in co)rt at the ti(e of the effecti%ity of this Act.
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Se%/,"n 14. $"ney C1a,ms. - $otwithstandin# any pro%ision of law to the contrary, the Labor
Arbiters of the $ational Labor *elations Co((ission A$L*C= shall ha%e the ori#inal and e'cl)si%e
4)risdiction to hear and decide, within ninety A9>= calendar days after the filin# of the co(plaint, the
clai(s arisin# o)t of an e(ployer-e(ployee relationship or by %irt)e of any law or contract in%ol%in#
2ilipino workers for o%erseas deploy(ent incl)din# clai(s for act)al, (oral, e'e(plary and other
for(s of da(a#es.
The liability of the principalBe(ployer and the recr)it(entBplace(ent a#ency for any and all clai(s
)nder this section shall be 4oint and se%eral. This pro%ision shall be incorporated in the contract for
o%erseas e(ploy(ent and shall be a condition precedent for its appro%al. The perfor(ance bond to
be filed by the recr)it(entBplace(ent a#ency, as pro%ided by law, shall be answerable for all
(oney clai(s or da(a#es that (ay be awarded to the workers. 7f the recr)it(entBplace(ent
a#ency is a 4)ridical bein#, the corporate officers and directors and partners as the case (ay be,
shall the(sel%es be 4ointly and solidarily liable with the corporation or partnership for the aforesaid
clai(s and da(a#es.
&)ch liabilities shall contin)e d)rin# the entire period or d)ration of the e(ploy(ent contract and
shall not be affected by any s)bstit)tion, a(end(ent or (odification (ade locally or in a forei#n
co)ntry of the said contract.
Any co(pro(iseBa(icable settle(ent or %ol)ntary a#ree(ent on (oney clai(s incl)si%e of
da(a#es )nder this section shall be paid within fo)r A= (onths fro( the appro%al of the settle(ent
by the appropriate a)thority.
7n case of ter(ination of o%erseas e(ploy(ent witho)t 4)st, %alid or a)thori;ed ca)se as defined by
law or contract, the worker shall be entitled to the f)ll rei(b)rse(ent of his place(ent fee with
interest at twel%e percent A1"K= per ann)(, pl)s his salaries for the )ne'pired portion of his
e(ploy(ent contract or for three A6= (onths for e%ery year of the )ne'pired ter(, whiche%er is
less. $onco(pliance with the (andatory periods for resol)tions of cases pro%ided )nder this
section shall s)b4ect the responsible officials to any or all of the followin# penaltiesC
Aa= The salary of any s)ch official who fails to render his decision or resol)tion within the prescribed
period shall be, or ca)sed to be, withheld )ntil the said official co(plies therewithJ
Ab= &)spension for not (ore than ninety A9>= daysJ or
Ac= Dis(issal fro( the ser%ice with dis<)alification to hold any appointi%e p)blic office for fi%e A,=
years.
Pro%ided, howe%er, That the penalties herein pro%ided shall be witho)t pre4)dice to any liability
which any s)ch official (ay ha%e inc)rred )nder other e'istin# laws or r)les and re#)lations as a
conse<)ence of %iolatin# the pro%isions of this para#raph.
Se%/,"n 11. $anda/"!y Pe!,"ds ."! Res"12/,"n ". I11e-a1 Re%!2,/men/ Cases. - The preli(inary
in%esti#ations of cases )nder this Act shall be ter(inated within a period of thirty A6>= calendar
days fro( the date of their filin#. 3here the preli(inary in%esti#ation is cond)cted by a prosec)tion
officer and a pri(a facie case is established, the correspondin# infor(ation shall be filed in co)rt
within twenty-fo)r A"= ho)rs fro( the ter(ination of the in%esti#ation. 7f the preli(inary
in%esti#ation is cond)cted by a 4)d#e and a pri(a facie case is fo)nd to e'ist, the correspondin#
infor(ation shall be filed by the proper prosec)tion officer within forty-ei#ht AE= ho)rs fro( the date
of receipt of the records of the case.
Se%/,"n 12. P!es%!,/,#e Pe!,"ds. - 7lle#al recr)it(ent cases )nder this Act shall prescribe in fi%e
A,= yearsC Pro%ided, howe%er, That ille#al recr)it(ent cases in%ol%in# econo(ic sabota#e as
defined herein shall prescribe in twenty A">= years.
Se%/,"n 1>. 0!ee Le-a1 Ass,s/an%eE P!e.e!en/,a1 En/,/1emen/ 5nde! /&e W,/ness P!"/e%/,"n
P!"-!am. - A (echanis( for free le#al assistance for %icti(s of ille#al recr)it(ent shall be
established within the Depart(ent of Labor and 5(ploy(ent incl)din# its re#ional offices. &)ch
(echanis( ()st incl)de coordination and cooperation with the Depart(ent of 9)stice, the
7nte#rated 0ar of the Philippines, and other non-#o%ern(ental or#ani;ations and %ol)nteer #ro)ps.
The pro%isions of *ep)blic Act $o. +9E1 to the contrary notwithstandin#, any person who is a
%icti( of ille#al recr)it(ent shall be entitled to the 3itness Protection Pro#ra( pro%ided
there)nder.
III. SER:ICES
Se%/,"n 14. T!a#e1 Ad#,s"!yCIn."!ma/,"n D,ssem,na/,"n. - To #i%e )t(ost priority to the
establish(ent of pro#ra(s and ser%ices to pre%ent ille#al recr)it(ent, fra)d and e'ploitation or
ab)se of 2ilipino (i#rant workers, all e(bassies and cons)lar offices, thro)#h the Philippine
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1%erseas 5(ploy(ent Ad(inistration AP15A=, shall iss)e tra%el ad%isories or disse(inate
infor(ation on labor and e(ploy(ent conditions, (i#ration realities and other factsJ and adherence
of partic)lar co)ntries to international standards on h)(an and workersO ri#hts which will
ade<)ately prepare indi%id)als into (akin# infor(ed and intelli#ent decisions abo)t o%erseas
e(ploy(ent. &)ch ad%isory or infor(ation shall be p)blished in a newspaper of #eneral circ)lation
at least three A6= ti(es in e%ery <)arter.
Se%/,"n 15. Rea/!,a/,"n ". W"!=e!sE Eme!-en%y Rea/!,a/,"n 02nd. - The repatriation of the
worker and the transport of his personal belon#in#s shall be the pri(ary responsibility of the
a#ency which recr)ited or deployed the worker o%erseas. All costs attendant to repatriation shall be
borne by or char#ed to the a#ency concerned andBor its principal. Likewise, the repatriation of
re(ains and transport of the personal belon#in#s of a deceased worker and all costs attendant
thereto shall be borne by the principal andBor the local a#ency. .owe%er, in cases where the
ter(ination of e(ploy(ent in d)e solely to the fa)lt of the worker, the principalBe(ployer or a#ency
shall not in any (anner be responsible for the repatriation of the for(er andBor his belon#in#s.
The 1%erseas 3orkers 3elfare Ad(inistration A133A=, in coordination with appropriate
international a#encies, shall )ndertake the repatriation of workers in cases of war, epide(ic,
disaster or cala(ities, nat)ral or (an-(ade, and other si(ilar e%ents witho)t pre4)dice to
rei(b)rse(ent by the responsible principal or a#ency. .owe%er, in cases where the principal or
recr)it(ent a#ency cannot be identified, all costs attendant to repatriation shall be borne by the
133A.
2or this p)rpose, there is hereby created and established an e(er#ency repatriation f)nd )nder the
ad(inistration, control and s)per%ision of the 133A, initially to consist of 1ne h)ndred (illion
pesos AP1>>,>>>,>>>.>>=, which shall be taken fro( the e'istin# f)nd controlled and ad(inistered
by the 133A. Thereafter, s)ch f)nd shall be pro%ided for in the Feneral Appropriations Act fro(
year to yearC Pro%ided, That the a(o)nt appropriated shall in no case be less than 1ne h)ndred
(illion pesos AP1>>,>>>,>>>.>>=, incl)si%e of o)tstandin# balances.
Se%/,"n 16. $anda/"!y Rea/!,a/,"n ". 5nde!a-e $,-!an/ W"!=e!s. - :pon disco%ery or bein#
infor(ed of the presence of (i#rant workers whose act)al a#es fall below the (ini()( a#e
re<)ire(ent for o%erseas deploy(ent, the responsible officers in the forei#n ser%ice shall witho)t
delay repatriate said workers and ad%ise the Depart(ent of 2orei#n Affairs thro)#h the fastest
(eans of co(()nication a%ailable of s)ch disco%ery and other rele%ant infor(ation.
Se%/,"n 17. Es/ab1,s&men/ ". Re?1a%emen/ and $"n,/"!,n- Cen/e!. - A replace(ent and
(onitorin# center is hereby created in the Depart(ent of Labor and 5(ploy(ent for ret)rnin#
2ilipino (i#rant workers which shall pro%ide a (echanis( for their reinte#ration into the Philippine
society, ser%e as a pro(otion ho)se for their local e(ploy(ent, and tap their skills and potentials
for national de%elop(ent.
The Depart(ent of Labor and 5(ploy(ent, the 1%erseas 3orkers 3elfare Ad(inistration, and the
Philippine 1%erseas 5(ploy(ent Ad(inistration shall, within ninety A9>= days fro( the effecti%ity of
this Act, for()late a pro#ra( that wo)ld (oti%ate (i#rant workers to plan for prod)cti%e options
s)ch as entry into hi#hly technical 4obs or )ndertakin#s, li%elihood and entreprene)rial
de%elop(ent, better wa#e e(ploy(ent, and in%est(ent of sa%in#s.
2or this p)rpose, the Technical 5d)cation and &kills De%elop(ent A)thority AT5&DA=, the
Technolo#y Li%elihood *eso)rce Center ATL*C=, and other #o%ern(ent a#encies in%ol%ed in
trainin# and li%elihood de%elop(ent shall #i%e priority to ret)rnees who had been e(ployed as
do(estic helpers and entertainers.
Se%/,"n 1). 02n%/,"ns ". /&e Re?1a%emen/ and $"n,/"!,n- Cen/e!. - The Center shall pro%ide
the followin# ser%icesC
Aa= De%elop li%elihood pro#ra(s and pro4ects for ret)rnin# 2ilipino (i#rant workers in coordination
with the pri%ate sectorJ
Ab= Coordinate with appropriate pri%ate and #o%ern(ent a#encies in the pro(otion, de%elop(ent,
re-place(ent and the f)ll )tili;ation of their potentialsJ
Ac= 7nstit)te, in cooperation with other #o%ern(ent a#encies concerned, a co(p)ter-based
infor(ation syste( on skilled 2ilipino (i#rant workers which shall be accessible to all local
recr)it(ent a#encies and e(ployers, both p)blic and pri%ateJ
Ad= Pro%ide a periodic st)dy and assess(ent of 4ob opport)nities for ret)rnin# 2ilipino (i#rant
workersJ and
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Ae= De%elop and i(ple(ent other appropriate pro#ra(s to pro(ote the welfare of ret)rnin# 2ilipino
(i#rant workers.
Se%/,"n 1(. Es/ab1,s&men/ ". a $,-!an/ W"!=e!s and "/&e! +#e!seas 0,1,,n"s Res"2!%e
Cen/e!. - 3ithin the pre(ises and )nder the ad(inistrati%e 4)risdiction of the Philippine 5(bassy in
co)ntries where there are lar#e concentrations of 2ilipino (i#rant workers, there shall be
established a Mi#rant 3orkers and 1ther 1%erseas 2ilipinos *eso)rce Center with the followin#
ser%icesC
Aa= Co)nsellin# and le#al ser%icesJ
Ab= 3elfare assistance incl)din# the proc)re(ent of (edical and hospitali;ation ser%icesJ
Ac= 7nfor(ation, ad%isory and pro#ra(s to pro(ote social inte#ration s)ch as post-arri%al
orientation, settle(ent and co(()nity networkin# ser%ices and acti%ities for social interactionJ
Ad= 7nstit)te a sche(e of re#istration of )ndoc)(ented workers to brin# the( within the p)r%iew of
this Act. 2or this p)rpose, the Center is en4oined to co(pel e'istin# )ndoc)(ented workers to
re#istered with it within si' A+= (onths fro( the effecti%ity of this Act, )nder pain of ha%in# hisBher
passport cancelledJ
Ae= .)(an reso)rce de%elop(ent, s)ch as trainin# and skills )p#radin#J
Af= Fender sensiti%e pro#ra( and acti%ities to assist partic)lar needs of wo(en (i#rant workersJ
A#= 1rientation pro#ra( for ret)rnin# worker and other (i#rantsJ and
Ah= Monitorin# of daily sit)ations, circ)(stances and acti%ities affectin# (i#rant workers and other
o%erseas 2ilipinos
The establish(ent and operations of the Center shall be a 4oint )ndertakin# of the %ario)s
#o%ern(ent a#encies. The Center shall be open for twenty-fo)r A"= ho)rs daily incl)din#
&at)rdays, &)nday and holidays, and shall be staffed by 2orei#n &er%ice personnel, ser%ice
attaches or officers who represent other Philippine #o%ern(ent a#encies abroad and, if a%ailable,
indi%id)al %ol)nteers and bona fide non-#o%ern(ent or#ani;ations fro( the host co)ntries. 7n
co)ntries cate#ori;ed as hi#hly proble(atic by the Depart(ent of 2orei#n Affairs and the
Depart(ent of Labor and 5(ploy(ent and where there is a concentration of 2ilipino (i#rant
workers, the #o%ern(ent ()st pro%ide a lawyer and a social worker for the Center. The Labor
Attache shall coordinate the operation of the Center and shall keep the Chief of Mission infor(ed
and )pdated on all (atters affectin# it.
The Center shall ha%e a co)nterpart "-ho)r infor(ation and assistance center at the Depart(ent
of 2orei#n Affairs to ens)re a contin)o)s network and coordinati%e (echanis( at the ho(e office.
Se%/,"n 24. Es/ab1,s&men/ ". a S&a!ed ;"#e!nmen/ In."!ma/,"n Sys/em ."! $,-!a/,"n. - An
inter-a#ency co((ittee co(posed of the Depart(ent of 2orei#n Affairs and its attached a#ency,
the Co((ission on 2ilipinos 1%erseas, the Depart(ent of Labor and 5(ploy(ent, the Philippine
1%erseas 5(ploy(ent Ad(inistration, the 1%erseas 3orkers 3elfare Ad(inistration, the
Depart(ent of To)ris(, the Depart(ent of 9)stice, the 0)rea) of 7((i#ration, the $ational 0)rea)
of 7n%esti#ation, and the $ational &tatistics 1ffice shall be established to i(ple(ent a shared
#o%ern(ent infor(ation syste( for (i#ration. The inter- a#ency co((ittee shall initially (ake
a%ailable to itself the infor(ation contained in e'istin# data basesBfiles. The second phase shall
in%ol%e linka#in# of co(p)ter facilities in order to allow free flow data chan#es and sharin# a(on#
concerned a#encies.
The inter-a#ency co((ittee shall con%ene to identify e'istin# data bases which shall be
declassified and shared a(on# (e(ber a#encies. These shared data bases shall initially incl)de,
b)t not be li(ited to, the followin# infor(ationC
Aa= Masterlists of 2ilipino (i#rant workersBo%erseas 2ilipinos classified accordin# to occ)pationB4ob
cate#ory, ci%il stat)s, by co)ntryBstate of destination incl)din# %isa classificationJ
Ab= 7n%entory of pendin# le#al cases in%ol%in# 2ilipino (i#rant workers and other 2ilipino nationals,
incl)din# those ser%in# prison ter(sJ
Ac= Masterlist of departin#Barri%in# 2ilipinosJ
Ad= &tatistical profile on 2ilipino (i#rant workersBo%erseas 2ilipinosBto)ristsJ
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Ae= 0lacklisted forei#nersB)ndesirable aliensJ
Af= 0asic data on le#al syste(s, i((i#ration policies, (arria#e laws and ci%il and cri(inal codes in
recei%in# co)ntries partic)larly those with lar#e n)(bers of 2ilipinosJ
A#= List of labor and other h)(an ri#hts instr)(ents where recei%in# co)ntries are si#natoriesJ
Ah= A trackin# syste( of past and present #ender disa##re#ated cases in%ol%in# (ale and fe(ale
(i#rant workersJ and
Ai= Listin# of o%erseas posts which (ay render assistance to o%erseas 2ilipinos, in #eneral, and
(i#rant workers, in partic)lar.
Se%/,"n 21. $,-!an/ W"!=e!s L"an ;2a!an/ee 02nd. - 7n order to f)rther pre%ent )nscr)p)lo)s
ille#al recr)iters fro( takin# ad%anta#e of workers seekin# e(ploy(ent abroad, the 133A, in
coordination with #o%ern(ent financial instit)tions, shall instit)te financin# sche(es that will
e'pand the #rant of pre- depart)re loan and fa(ily assistance loan. 2or this p)rpose, a Mi#rant
3orkers Loan F)arantee 2)nd is hereby created and the re%ol%in# a(o)nt of 1ne h)ndred (illion
pesos AP1>>,>>>,>>>.>>= fro( the 133A is set aside as a #)arantee f)nd in fa%or of participatin#
#o%ern(ent financial instit)tions.
&ection "". *i#hts and 5nforce(ent Mechanis( :nder 7nternational and *e#ional .)(an *i#hts
&yste(s. - The Depart(ent of 2orei#n Affairs is (andated to )ndertake the necessary initiati%e
s)ch as pro(otions, acceptance or adherence of co)ntries recei%in# 2ilipino workers to ()ltilateral
con%ention, declaration or resol)tions pertainin# to the protection of (i#rant workersO ri#hts. The
Depart(ent of 2orei#n Affairs is also (andated to (ake an assess(ent of ri#hts and a%en)es of
redress )nder international and re#ional h)(an ri#hts syste(s that are a%ailable to 2ilipino (i#rant
workers who are %icti(s of ab)se and %iolation and, as far as practicable and thro)#h the Le#al
Assistant for Mi#rant 3orkers Affairs created )nder this Act, p)rs)e the sa(e on behalf of the
%icti( if it is le#ally i(possible to file indi%id)al co(plaints. 7f a co(plaints (achinery is a%ailable
)nder international or re#ional syste(s, the Depart(ent of 2orei#n Affairs shall f)lly apprise the
2ilipino (i#rant workers of the e'istence and effecti%eness of s)ch le#al options.
I:. ;+:ER*$E*T A;E*CIES
Se%/,"n 2>. R"1e ". ;"#e!nmen/ A-en%,es. - The followin# #o%ern(ent a#encies shall perfor(
the followin# to pro(ote the welfare and protect the ri#hts of (i#rant workers and, as far as
applicable, all o%erseas 2ilipinosC
Aa= Depart(ent of 2orei#n Affairs - The Depart(ent, thro)#h its ho(e office or forei#n posts, shall
take priority action or (ake representation with the forei#n a)thority concerned to protect the ri#hts
of (i#rant workers and other o%erseas 2ilipinos and e'tend i((ediate assistance incl)din# the
repatriation of distressed or belea#)ered (i#rant workers and other o%erseas 2ilipinosJ
Ab= Depart(ent of Labor and 5(ploy(ent - The Depart(ent of Labor and 5(ploy(ent shall see to
it that labor and social welfare laws in the forei#n co)ntries are fairly applied to (i#rant workers and
whene%er applicable, to other o%erseas 2ilipinos incl)din# the #rant of le#al assistance and the
referral to proper (edical centers or hospitalsC
Ab.1= Philippine 1%erseas 5(ploy(ent Ad(inistration - &)b4ect to dere#)lation and phase-o)t as
pro%ided )nder &ections "9 and 6> herein, the Ad(inistration shall re#)late pri%ate sector
participation in the recr)it(ent and o%erseas place(ent of workers by settin# )p a licensin# and
re#istration syste(. 7t shall also for()late and i(ple(ent, in coordination with appropriate entities
concerned, when necessary, a syste( for pro(otin# and (onitorin# the o%erseas e(ploy(ent of
2ilipino workers takin# into consideration their welfare and the do(estic (anpower re<)ire(ents.
Ab."= 1%erseas 3orkers 3elfare Ad(inistration - The 3elfare officer or in his absence, the
coordinatin# officer shall pro%ide the 2ilipino (i#rant worker and his fa(ily all the assistance they
(ay need in the enforce(ent of contract)al obli#ations by a#encies or entities andBor by their
principals. 7n the perfor(ance of this f)nction, he shall (ake representation and (ay call on the
a#encies or entities concerned to conferences or conciliation (eetin#s for the p)rpose of settlin#
the co(plaints or proble(s bro)#ht to his attention.
:. THE LE;AL ASSISTA*T 0+R $I;RA*T W+RDERS A00AIRS
Se%/,"n 24. Le-a1 Ass,s/an/ ."! $,-!an/ W"!=e!s A..a,!s. - There is hereby created the position
of Le#al Assistant for Mi#rant 3orkers Affairs )nder the Depart(ent of 2orei#n Affairs who shall be
pri(arily responsible for the pro%ision and o%erall coordination of all le#al assistance ser%ices to be
pro%ided to 2ilipino (i#rant workers as well as o%erseas 2ilipinos in distress. .e shall ha%e the
rank, salary and pri%ile#es e<)al to that of an )ndersecretary of said Depart(ent.
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The said Le#al Assistant for Mi#rant 3orkers Affairs, shall be appointed by the President and ()st
be of pro%en co(petence in the field of law with at least ten A1>= years of e'perience as a le#al
practitioner and ()st not ha%e been a candidate to an electi%e office in the last local or national
elections.
A(on# the f)nctions and responsibilities of the aforesaid Le#al Assistant areC
Aa= To iss)e the #)idelines, proced)res and criteria for the pro%ision of le#al assistance ser%ices to
2ilipino (i#rant workersJ
Ab= To establish close linka#es with the Depart(ent of Labor and 5(ploy(ent, the P15A, the
133A and other #o%ern(ent a#encies concerned, as well as with non-#o%ern(ental
or#ani;ations assistin# (i#rant workers, to ens)re effecti%e coordination and cooperation in the
pro%ision of le#al assistance to (i#rant workersJ
Ac= To tap the assistance of rep)table law fir(s and the 7nte#rated 0ar of the Philippines and other
bar associations to co(ple(ent the #o%ern(entOs efforts to pro%ide le#al assistance to o)r (i#rant
workersJ
Ad= To ad(inister the le#al assistance f)nd for (i#rant workers established )nder &ection ",
thereof and to a)thori;e disb)rse(ents therefro( in accordance with the p)rposes for which the
f)nd was set )pJ and
Ae= To keep and (aintain the infor(ation syste( as pro%ided in &ection ">.
The Le#al Assistant for Mi#rant 3orkers Affairs shall ha%e a)thority to hire pri%ate lawyers,
do(estic or forei#n, in order to assist hi( in the effecti%e dischar#e of the abo%e f)nctions.
Se%/,"n 25. Le-a1 Ass,s/an%e 02nd. - There is hereby established a le#al assistance f)nd for
(i#rant workers, hereinafter referred to as the Le#al Assistance 2)nd, in the a(o)nt of 1ne
h)ndred (illion pesos AP1>>,>>>,>>>.>>= to be constit)ted fro( the followin# so)rcesC
2ifty (illion pesos AP,>,>>>,>>>.>>= fro( the Contin#ency 2)nd of the PresidentJ
Thirty (illion pesos AP6>,>>>,>>>.>>= fro( the Presidential &ocial 2)ndJ and
Twenty (illion pesos AP">,>>>,>>>.>>= fro( the 3elfare 2)nd for 1%erseas 3orkers established
)nder Letter of 7nstr)ction $o. ,67, as a(ended by Presidential Decrees $os. 1+9 and 1E>9.
Any balances of e'istin# f)nds which ha%e been set aside by the #o%ern(ent specifically as le#al
assistance or defense f)nd to help (i#rant workers shall, )pon effecti%ity of this Act, be t)rned o%er
to, and for( part of, the 2)nd created )nder this Act.
Se%/,"n 26. 5ses ". /&e Le-a1 Ass,s/an%e 02nd. ? The Le#al Assistance 2)nd created )nder the
precedin# section shall be )sed e'cl)si%ely to pro%ide le#al ser%ices to (i#rant workers and
o%erseas 2ilipinos in distress in accordance with the #)idelines, criteria and proced)res
pro()l#ated in accordance with &ection "Aa= hereof. The e'pendit)res to be char#ed a#ainst the
2)nd shall incl)de the fees for the forei#n lawyers to be hired by the Le#al Assistant for Mi#rant
3orkers Affairs to represent (i#rant workers facin# char#es abroad, bail bonds to sec)re the
te(porary release of workers )nder detention, co)rt fees and char#es and other liti#ation
e'penses.
:I. C+5*TRA?TEA$ APPR+ACH
Se%/,"n 27. P!,"!,/y C"n%e!ns ". P&,1,,ne 0"!e,-n Se!#,%e P"s/s. - The co)ntry-tea(
approach, as en)nciated )nder 5'ec)ti%e 1rder $o. 7, series of 1996, shall be the (ode )nder
which Philippine e(bassies or their personnel will operate in the protection of the 2ilipino (i#rant
workers as well as in the pro(otion of their welfare. The protection of the 2ilipino (i#rant workers
and the pro(otion of their welfare, in partic)lar, and the protection of the di#nity and f)nda(ental
ri#hts and freedo(s of the 2ilipino citi;en abroad, in #eneral, shall be the hi#hest priority concerns
of the &ecretary of 2orei#n Affairs and the Philippine 2orei#n &er%ice Posts.
Se%/,"n 2). C"2n/!y?Team A!"a%&. - :nder the co)ntry-tea( approach, all officers,
representati%es and personnel of the Philippine #o%ern(ent posted abroad re#ardless of their
(other a#encies shall, on a per co)ntry basis, act as one co)ntry-tea( with a (ission )nder the
leadership of the a(bassador. 7n this re#ard the a(bassador (ay reco((end to the &ecretary of
the Depart(ent of 2orei#n Affairs the recall of officers, representati%es and personnel of the
Philippine #o%ern(ent posted abroad for acts ini(ical to the national interest s)ch as, b)t not
li(ited to, fail)re to pro%ide the necessary ser%ices to protect the ri#hts of o%erseas 2ilipinos.
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:pon receipt of the reco((endation of the a(bassador, the &ecretary of the Depart(ent of
2orei#n Affairs shall, in the case of officers, representati%es and personnel of other depart(ents,
endorse s)ch reco((endation to the depart(ent secretary concerned for appropriate action.
Pendin# in%esti#ation by an appropriate body in the Philippines, the person reco((ended for recall
(ay be placed )nder pre%enti%e s)spension by the a(bassador.
7n host co)ntries where there are Philippine cons)lates, s)ch cons)lates shall also constit)te part
of the co)ntry-tea( )nder the leadership of the a(bassador.
7n the i(ple(entation of the co)ntry-tea( approach, %isitin# Philippine dele#ations shall be
pro%ided f)ll s)pport and infor(ation.
:II. DERE;5LATI+* A*D PHASE?+5T
Se%/,"n 2(. C"m!e&ens,#e De!e-21a/,"n P1an "n Re%!2,/men/ A%/,#,/,es. - P)rs)ant to a
pro#ressi%e policy of dere#)lation whereby the (i#ration of workers beco(es strictly a (atter
between the worker and his forei#n e(ployer, the D1L5, within one A1= year fro( the effecti%ity of
this Act, is hereby (andated to for()late a fi%e-year co(prehensi%e dere#)lation plan on
recr)it(ent acti%ities takin# into acco)nt labor (arket trends, econo(ic conditions of the co)ntry
and e(er#in# circ)(stances which (ay affect the welfare of (i#rant workers.
&ection 6>. Frad)al Phase-o)t of *e#)latory 2)nctions. - 3ithin a period of fi%e A,= years fro( the
effecti%ity of this Act, the D1L5 shall phase-o)t the re#)latory f)nctions of the P15A p)rs)ant to
the ob4ecti%es of dere#)lation.
:III. PR+0ESSI+*AL A*D +THER HI;HLA?SDILLED 0ILIPI*+S ABR+AD
Se%/,"n >1. In%en/,#es /" P!".ess,"na1s and +/&e! H,-&1y?S=,11ed 0,1,,n"s Ab!"ad. - P)rs)ant
to the ob4ecti%e of enco)ra#in# professionals and other hi#hly-skilled 2ilipinos abroad especially in
the field of science and technolo#y to participate in, and contrib)te to national de%elop(ent, the
#o%ern(ent shall pro%ide proper and ade<)ate incenti%es and pro#ra(s so as to sec)re their
ser%ices in priority de%elop(ent areas of the p)blic and pri%ate sectors.
I9. $ISCELLA*E+5S PR+:ISI+*S
Se%/,"n >2. P+EA and +WWA B"a!dE Add,/,"na1 $embe!s&,s. - $otwithstandin# any pro%ision
of law to the contrary, the respecti%e 0oards of the P15A and the 133A shall, in addition to their
present co(position, ha%e three A6= (e(bers each who shall co(e fro( the wo(en, sea-based
and land-based sectors respecti%ely, to be appointed by the President in the sa(e (anner as the
other (e(bers.
Se%/,"n >>. Re"!/ /" C"n-!ess. - 7n order to infor( the Philippine Con#ress on the
i(ple(entation of the policy en)nciated in &ection hereof, the Depart(ent of 2orei#n Affairs and
the Depart(ent of Labor and 5(ploy(ent shall s)b(it to the said body a se(i- ann)al report of
Philippine forei#n posts located in co)ntries hostin# 2ilipino (i#rant workers. The report shall
incl)de, b)t shall not be li(ited to, the followin# infor(ationC
Aa= Masterlist of 2ilipino (i#rant workers, and in%entory of pendin# le#al cases in%ol%in# the( and
other 2ilipino nationals incl)din# those ser%in# prison ter(sJ
Ab= 3orkin# conditions of 2ilipino (i#rant workersJ
Ac= Proble(s enco)ntered by the (i#rant workers, specifically %iolations of their ri#htsJ
Ad= 7nitiati%esBactions taken by the Philippine forei#n posts to address the proble(s of 2ilipino
(i#rant workersJ
Ae= Chan#es in the laws and policies of host co)ntriesJ and
Af= &tat)s of ne#otiations on bilateral labor a#ree(ents between the Philippines and the host
co)ntry.
Any officer of the #o%ern(ent who fails to report as stated in the precedin# section shall be s)b4ect
to ad(inistrati%e penalty.
Se%/,"n >4. Re!esen/a/,"n ,n C"n-!ess. - P)rs)ant to &ection ,A"=, Article /7 of the Constit)tion
and in line with the ob4ecti%e of e(powerin# o%erseas 2ilipinos to participate in the policy (akin#
process to address 2ilipino (i#rant concerns, two A"= sectoral representati%es for (i#rant workers
in the .o)se of *epresentati%es shall be appointed by the President fro( the ranks of (i#rant
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workersC Pro%ided, That at least one A1= of the two A"= sectoral representati%es shall co(e fro( the
wo(en (i#rant workers sectorC Pro%ided, f)rther, That all no(inees ()st ha%e at least two A"=
years e'perience as a (i#rant worker.
Se%/,"n >5. EKem/,"n .!"m T!a#e1 TaK and A,!"!/ 0ee. - All laws to the contrary
notwithstandin#, the (i#rant worker shall be e'e(pt fro( the pay(ent of tra%el ta' and airport fee
)pon proper showin# of proof of entitle(ent by the P15A.
Se%/,"n >6. *"n?,n%!ease ". 0eesE Ab"1,/,"n ". Rea/!,a/,"n B"nd. - :pon appro%al of this Act,
all fees bein# char#ed by any #o%ern(ent office on (i#rant workers shall re(ain at their present
le%els and the repatriation bond shall be abolished.
Se%/,"n >7. T&e C"n-!ess,"na1 $,-!an/ W"!=e!s S%&"1a!s&, 02nd. - There is hereby created
a Con#ressional Mi#rant 3orkers &cholarship 2)nd which shall benefit deser%in# (i#rant workers
andBor their i((ediate descendants below twenty-one A"1= years of a#e who intend to p)rs)e
co)rses or trainin# pri(arily in the field of science and technolo#y. The initial seed f)nd of Two
h)ndred (illion pesos AP">>,>>>,>>>.>>= shall be constit)ted fro( the followin# so)rcesC
Aa= 2ifty (illion pesos AP,>,>>>,>>>.>>= fro( the )ne'pended Co)ntrywide De%elop(ent 2)nd for
199, in e<)al sharin# by all Me(bers of Con#ressJ and
Ab= The re(ainin# 1ne h)ndred fifty (illion pesos AP1,>,>>>,>>>.>>= shall be f)nded fro( the
proceeds of Lotto draws.
The Con#ressional Mi#rant 3orkers &cholarship 2)nd as herein created shall be ad(inistered by
the D1L5 in coordination with the Depart(ent of &cience and Technolo#y AD1&T=. To carry o)t
the ob4ecti%es of this section, the D1L5 and the D1&T shall for()late the necessary r)les and
re#)lations.
Se%/,"n >). Appropriation and 1ther &o)rces of 2)ndin#. - The a(o)nt necessary to carry o)t the
pro%isions of this Act shall be pro%ided for in the Feneral Appropriations Act of the year followin# its
enact(ent into law and thereafter.
Se%/,"n >(. $,-!an/ W"!=e!s Day. - The day of si#nin# by the President of this Act shall be
desi#nated as the Mi#rant 3orkers Day and shall henceforth be co((e(orated as s)ch ann)ally.
Se%/,"n 44. Im1emen/,n- R21es and Re-21a/,"ns. - The depart(ents and a#encies char#ed
with carryin# o)t the pro%isions of this Act shall, within ninety A9>= days after the effecti%ity of this
Act, for()late the necessary r)les and re#)lations for its effecti%e i(ple(entation
C. E$PL+A$E*T +0 CHILDRE*
1. LA01* C1D5 P*1/7&71$&
5MPL1@M5$T 12 M7$1*&
A*T. 169. M#&#m,m "m%*o0(1*" (.". - Aa= $o child below fifteen A1,= years of a#e shall be
e(ployed, e'cept when he works directly )nder the sole responsibility of his parents or #)ardian,
and his e(ploy(ent does not in any way interfere with his schoolin#.
Ab= Any person between fifteen A1,= and ei#hteen A1E= years of a#e (ay be e(ployed for s)ch
n)(ber of ho)rs and s)ch periods of the day as deter(ined by the &ecretary of Labor and
5(ploy(ent in appropriate re#)lations.
Ac= The fore#oin# pro%isions shall in no case allow the e(ploy(ent of a person below ei#hteen A1E=
years of a#e in an )ndertakin# which is ha;ardo)s or deleterio)s in nat)re as deter(ined by the
&ecretary of Labor and 5(ploy(ent.
A*T. 1>. Pro!#1##o& (.(#&' $!#*+ +#'$r#m#&(#o&. - $o e(ployer shall discri(inate a#ainst any
person in respect to ter(s and conditions of e(ploy(ent on acco)nt of his a#e.
". &P5C7AL LA3&
*5P:0L7C ACT $1. 9"61
A$ ACT P*1/7D7$F 21* T.5 5L7M7$AT71$ 12 T.5 31*&T 21*M& 12 C.7LD LA01* A$D A221*D7$F
&T*1$F5* P*1T5CT71$ 21* T.5 31*I7$F C.7LD, AM5$D7$F 21* T.7& P:*P1&5 *5P:0L7C ACT $1.
7+1>, A& AM5$D5D, 1T.5*37&5 I$13$ A& T.5 M&P5C7AL P*1T5CT71$ 12 C.7LD*5$ AFA7$&T C.7LD
A0:&5, 5DPL17TAT71$ A$D D7&C*7M7$AT71$ ACT.M
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&ection 1. &ec. " of *ep)blic Act $o. 7+1>, as a(ended, otherwise known as the M&pecial Protection of Children
A#ainst Child Ab)se, 5'ploitation and Discri(ination ActM, is hereby a(ended to read as followsC
M&ec. ". Declaration of &tate Policy and Principles. N 7t is hereby declared to be the policy of the &tate to pro%ide
special protection to children fro( all for(s of ab)se, ne#lect, cr)elty, e'ploitation and discri(ination, and other
conditions pre4)dicial to their de%elop(ent incl)din# child labor and its worst for(sJ pro%ide sanctions for their
co((ission and carry o)t a pro#ra( for pre%ention and deterrence of and crisis inter%ention in sit)ations of child
ab)se, e'ploitation and discri(ination. The &tate shall inter%ene on behalf of the child when the parent, #)ardian,
teacher or person ha%in# care or c)stody of the child fails or is )nable to protect the child a#ainst ab)se, e'ploitation
and discri(ination or when s)ch acts a#ainst the child are co((itted by the said parent, #)ardian, teacher or person
ha%in# care and c)stody of the sa(e.
M7t shall be the policy of the &tate to protect and rehabilitate children #ra%ely threatened or endan#ered by
circ)(stances which affect or will affect their s)r%i%al and nor(al de%elop(ent and o%er which they ha%e no control.
MThe best interests of children shall be the para(o)nt consideration in all actions concernin# the(, whether
)ndertaken by p)blic or pri%ate social welfare instit)tions, co)rts of law, ad(inistrati%e a)thorities, and le#islati%e
bodies, consistent with the principle of 2irst Call for Children as en)nciated in the :nited $ations Con%ention on the
*i#hts of the Child. 5%ery effort shall be e'erted to pro(ote the welfare of children and enhance their opport)nities
for a )sef)l and happy life.M
&ec. ". &ec. 1" of the sa(e Act, as a(ended, is hereby f)rther a(ended to read as followsC
M&ec. 1". 5(ploy(ent of Children. N Children below fifteen A1,= years of a#e shall not be e(ployed e'ceptC
M1= 3hen a child works directly )nder the sole responsibility of hisBher parents or le#al #)ardian and where only
(e(bers of hisBher fa(ily are e(ployedC pro%ided, howe%er, that hisBher e(ploy(ent neither endan#ers hisBher life,
safety, health, and (orals, nor i(pairs hisBher nor(al de%elop(entC pro%ided, f)rther, that the parent or le#al
#)ardian shall pro%ide the said child with the prescribed pri(ary andBor secondary ed)cationJ or
M"= 3here a childOs e(ploy(ent or participation in p)blic entertain(ent or infor(ation thro)#h cine(a, theater,
radio, tele%ision or other for(s of (edia is essentialC pro%ided, that the e(ploy(ent contract is concl)ded by the
childOs parents or le#al #)ardian, with the e'press a#ree(ent of the child concerned, if possible, and the appro%al of
the Depart(ent of Labor and 5(ploy(entC pro%ided, f)rther, that the followin# re<)ire(ents in all instances are
strictly co(plied withC
MAa= The e(ployer shall ens)re the protection, health, safety, (orals and nor(al de%elop(ent of the childJ
MAb= The e(ployer shall instit)te (eas)res to pre%ent the childOs e'ploitation or discri(ination takin# into acco)nt
the syste( and le%el of re()neration, and the d)ration and arran#e(ent of workin# ti(eJ and
MAc= The e(ployer shall for()late and i(ple(ent, s)b4ect to the appro%al and s)per%ision of co(petent a)thorities,
a contin)in# pro#ra( for trainin# and skills ac<)isition of the child.
M7n the abo%e-e'ceptional cases where any s)ch child (ay be e(ployed, the e(ployer shall first sec)re, before
en#a#in# s)ch child, a work per(it fro( the Depart(ent of Labor and 5(ploy(ent which shall ens)re obser%ance of
the abo%e re<)ire(ents.
M2or p)rposes of this Article, the ter( MchildM shall apply to all persons )nder ei#hteen A1E= years of a#e.M
&ec. 6. The sa(e Act, as a(ended, is hereby f)rther a(ended by addin# new &ec.s to be deno(inated as &ec.s
1"-A, 1"-0, 1"-C, and 1"-D to read as followsC
M&ec. 1"-A. .o)rs of 3ork of a 3orkin# Child. N :nder the e'ceptions pro%ided in &ec. 1" of this Act, as
a(endedC
MA1= A child below fifteen A1,= years of a#e (ay be allowed to work for not (ore than twenty A">= ho)rs a weekC
pro%ided, that the work shall not be (ore than fo)r A= ho)rs at any #i%en dayJ
MA"= A child fifteen A1,= years of a#e b)t below ei#hteen A1E= shall not be allowed to work for (ore than ei#ht AE=
ho)rs a day, and in no case beyond forty A>= ho)rs a weekJ
MA6= $o child below fifteen A1,= years of a#e shall be allowed to work between ei#ht oOclock in the e%enin# and si'
oOclock in the (ornin# of the followin# day and no child fifteen A1,= years of a#e b)t below ei#hteen A1E= shall be
allowed to work between ten oOclock in the e%enin# and si' oOclock in the (ornin# of the followin# day.M
M&ec. 1"-0. 1wnership, :sa#e and Ad(inistration of the 3orkin# ChildOs 7nco(e. N The wa#es, salaries, earnin#s
and other inco(e of the workin# child shall belon# to hi(Bher in ownership and shall be set aside pri(arily for hisBher
s)pport, ed)cation or skills ac<)isition and secondarily to the collecti%e needs of the fa(ilyC pro%ided, that not (ore
than twenty percent A">K= of the childOs inco(e (ay be )sed for the collecti%e needs of the fa(ily.
MThe inco(e of the workin# child andBor the property ac<)ired thro)#h the work of the child shall be ad(inistered by
both parents. 7n the absence or incapacity of either of the parents, the other parent shall ad(inister the sa(e. 7n case
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both parents are absent or incapacitated, the order of preference on parental a)thority as pro%ided for )nder the
2a(ily Code shall apply.
M&ec. 1"-C. Tr)st 2)nd to Preser%e Part of the 3orkin# ChildOs 7nco(e. N The parent or le#al #)ardian of a
workin# child below ei#hteen A1E= years of a#e shall set )p a tr)st f)nd for at least thirty percent A6>K= of the
earnin#s of the child whose wa#es and salaries fro( work and other inco(e a(o)nt to at least two h)ndred
tho)sand pesos AP">>,>>>.>>= ann)ally, for which heBshe shall render a se(i-ann)al acco)ntin# of the f)nd to the
Depart(ent of Labor and 5(ploy(ent, in co(pliance with the pro%isions of this Act. The child shall ha%e f)ll control
o%er the tr)st f)nd )pon reachin# the a#e of (a4ority.
M&ec. 1"-D. Prohibition A#ainst 3orst 2or(s of Child Labor. N $o child shall be en#a#ed in the worst for(s of
child labor. The phrase Mworst for(s of child laborM shall refer to any of the followin#C
MA1= All for(s of sla%ery, as defined )nder the MAnti-traffickin# in Persons Act of ">>6M, or practices si(ilar to sla%ery
s)ch as sale and traffickin# of children, debt bonda#e and serfdo( and forced or co(p)lsory labor, incl)din#
recr)it(ent of children for )se in ar(ed conflictJ or
MA"= The )se, proc)rin#, offerin# or e'posin# of a child for prostit)tion, for the prod)ction of porno#raphy or for
porno#raphic perfor(ancesJ or
MA6= The )se, proc)rin# or offerin# of a child for ille#al or illicit acti%ities, incl)din# the prod)ction and traffickin# of
dan#ero)s dr)#s and %olatile s)bstances prohibited )nder e'istin# lawsJ or
MA= 3ork which, by its nat)re or the circ)(stances in which it is carried o)t, is ha;ardo)s or likely to be har(f)l to
the health, safety or (orals of children, s)ch that itC
Ma= Debases, de#rades or de(eans the intrinsic worth and di#nity of a child as a h)(an bein#J or
Mb= 5'poses the child to physical, e(otional or se')al ab)se, or is fo)nd to be hi#hly stressf)l psycholo#ically or
(ay pre4)dice (oralsJ or
Mc= 7s perfor(ed )nder#ro)nd, )nderwater or at dan#ero)s hei#htsJ or
Md= 7n%ol%es the )se of dan#ero)s (achinery, e<)ip(ent and tools s)ch as power-dri%en or e'plosi%e power-
act)ated toolsJ or
Me= 5'poses the child to physical dan#er s)ch as, b)t not li(ited to the dan#ero)s feats of balancin#, physical
stren#th or contortion, or which re<)ires the (an)al transport of hea%y loadsJ or
Mf= 7s perfor(ed in an )nhealthy en%iron(ent e'posin# the child to ha;ardo)s workin# conditions, ele(ents,
s)bstances, co-a#ents or processes in%ol%in# ioni;in#, radiation, fire, fla((able s)bstances, no'io)s co(ponents
and the like, or to e'tre(e te(perat)res, noise le%els, or %ibrationsJ or
M#= 7s perfor(ed )nder partic)larly diffic)lt conditionsJ or
Mh= 5'poses the child to biolo#ical a#ents s)ch as bacteria, f)n#i, %ir)ses, proto;oans, ne(atodes and other
parasitesJ or
Mi= 7n%ol%es the (an)fact)re or handlin# of e'plosi%es and other pyrotechnic prod)cts.M
&ec. . &ec. 16 of the sa(e Act is hereby a(ended to read as followsC
M&ec. 16. Access to 5d)cation and Trainin# for 3orkin# Children. N Ma= $o child shall be depri%ed of for(al or non-
for(al ed)cation. 7n all cases of e(ploy(ent allowed in this Act, the e(ployer shall pro%ide a workin# child with
access to at least pri(ary and secondary ed)cation.
Mb= To ens)re and #)arantee the access of the workin# child to ed)cation and trainin#, the Depart(ent of
5d)cation AD5P5D= shallC A1= for()late, pro()l#ate, and i(ple(ent rele%ant and effecti%e co)rse desi#ns and
ed)cational pro#ra(sJ A"= cond)ct the necessary trainin# for the i(ple(entation of the appropriate c)rric)l)( for the
p)rposeJ A6= ens)re the a%ailability of the needed ed)cational facilities and (aterialsJ and A= cond)ct contin)in#
research and de%elop(ent pro#ra( for the necessary and rele%ant alternati%e ed)cation of the workin# child.
Mc= The D5P5D shall pro()l#ate a co)rse desi#n )nder its non-for(al ed)cation pro#ra( ai(ed at pro(otin# the
intellect)al, (oral and %ocational efficiency of workin# children who ha%e not )nder#one or finished ele(entary or
secondary ed)cation. &)ch co)rse desi#n shall inte#rate the learnin# process dee(ed (ost effecti%e )nder #i%en
circ)(stances.M
&ec. ,. &ec. 1 of the sa(e Act is hereby a(ended to read as followsC
M&ec. 1. Prohibition on the 5(ploy(ent of Children in Certain Ad%ertise(ents. N $o child shall be e(ployed as a
(odel in any ad%ertise(ent directly or indirectly pro(otin# alcoholic be%era#es, into'icatin# drinks, tobacco and its
byprod)cts, #a(blin# or any for( of %iolence or porno#raphy.M
&ec. +. &ec. 1+ of the sa(e Act, is hereby a(ended to read as followsC
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M&ec. 1+. Penal Pro%isions. N
Ma= Any e(ployer who %iolates &ec.s 1", 1"-A, and &ec. 1 of this Act, as a(ended, shall be penali;ed by
i(prison(ent of si' A+= (onths and one A1= day to si' A+= years or a fine of not less than 2ifty tho)sand pesos
AP,>,>>>.>>= b)t not (ore than Three h)ndred tho)sand pesos AP6>>,>>>.>>= or both at the discretion of the co)rt.
Mb= Any person who %iolates the pro%ision of &ec. 1"-D of this Act or the e(ployer of the s)bcontractor who
e(ploys, or the one who facilitates the e(ploy(ent of a child in ha;ardo)s work, shall s)ffer the penalty of a fine of
not less than 1ne h)ndred tho)sand pesos AP1>>,>>>.>>= b)t not (ore than 1ne (illion pesos AP1,>>>,>>>.>>=, or
i(prison(ent of not less than twel%e A1"= years and one A1= day to twenty A">= years, or both s)ch fine and
i(prison(ent at the discretion of the co)rt.
Mc= Any person who %iolates &ec.s 1"-DA1= and 1"-DA"= shall be prosec)ted and penali;ed in accordance with the
penalty pro%ided for by *.A. 9">E otherwise known as the MAnti-traffickin# in Persons Act of ">>6MC pro%ided, that
s)ch penalty shall be i(posed in its (a'i()( period.
Md= Any person who %iolates &ec. 1"-DA6= shall be prosec)ted and penali;ed in accordance with *.A. 91+,,
otherwise known as the MCo(prehensi%e Dan#ero)s Dr)#s Act of ">>"MC pro%ided, that s)ch penalty shall be
i(posed in its (a'i()( period.
Me= 7f a corporation co((its any of the %iolations aforecited, the board of directorsBtr)stees and officers, which
incl)de the president, treas)rer and secretary of the said corporation who participated in or knowin#ly allowed the
%iolation, shall be penali;ed accordin#ly as pro%ided for )nder this &ec.
Mf= Parents, biolo#ical or by le#al fiction, and le#al #)ardians fo)nd to be %iolatin# &ec.s 1", 1"-A, 1"-0 and 1"-C of
this Act shall pay a fine of not less than Ten tho)sand pesos AP1>,>>>.>>= b)t not (ore than 1ne h)ndred tho)sand
pesos AP1>>,>>>.>>=, or be re<)ired to render co(()nity ser%ice for not less than thirty A6>= days b)t not (ore than
one A1= year, or both s)ch fine and co(()nity ser%ice at the discretion of the co)rtC pro%ided, that the (a'i()(
len#th of co(()nity ser%ice shall be i(posed on parents or le#al #)ardians who ha%e %iolated the pro%isions of this
Act three A6= ti(esC pro%ided, f)rther, that in addition to the co(()nity ser%ice, the penalty of i(prison(ent of thirty
A6>= days b)t not (ore than one A1= year or both at the discretion of the co)rt, shall be i(posed on the parents or
le#al #)ardians who ha%e %iolated the pro%isions of this Act (ore than three A6= ti(es.
M#= The &ecretary of Labor and 5(ploy(ent or hisBher d)ly a)thori;ed representati%e (ay, after d)e notice and
hearin#, order the clos)re of any b)siness fir( or establish(ent fo)nd to ha%e %iolated any of the pro%isions of this
Act (ore than three A6= ti(es. .eBshe shall likewise order the i((ediate clos)re of s)ch fir( or establish(ent ifC
MA1= The %iolation of any pro%ision of this Act has res)lted in the death, insanity or serio)s physical in4)ry of a child
e(ployed in s)ch establish(entJ or
MA"= &)ch fir( or establish(ent is en#a#ed or e(ployed in prostit)tion or in obscene or lewd shows.
Mh= 7n case of s)ch clos)re, the e(ployer shall be re<)ired to pay the e(ployeeAs= the separation pay and other
(onetary benefits pro%ided for by law.M
&ec. 7. The sa(e Act is hereby f)rther a(ended by addin# a new &ec. to be deno(inated as &ec. 1+-A, to read as
followsC
M&ec. 1+-A. Tr)st 2)nd fro( 2ines and Penalties. N The fine i(posed by the co)rt shall be treated as a Tr)st
2)nd, ad(inistered by the Depart(ent of Labor and 5(ploy(ent and disb)rsed e'cl)si%ely for the needs, incl)din#
the costs of rehabilitation and reinte#ration into the (ainstrea( of society of the workin# children who are %icti(s of
the %iolations of this Act, and for the pro#ra(s and pro4ects that will pre%ent acts of child labor.M
&ec. E. &ec. "7 of the sa(e Act is hereby a(ended to read as followsC
M&ec. "7. 3ho May 2ile a Co(plaint. N Co(plaints on cases of )nlawf)l acts co((itted a#ainst children as
en)(erated herein (ay be filed by the followin#C
MAa= 1ffended partyJ
MAb= Parents or #)ardiansJ
MAc= Ascendant or collateral relati%e within the third de#ree of consan#)inityJ
MAd= 1fficer, social worker or representati%e of a licensed child-carin# instit)tionJ
MAe= 1fficer or social worker of the Depart(ent of &ocial 3elfare and De%elop(entJ
MAf= 0aran#ay chair(an of the place where the %iolation occ)rred, where the child is residin# or e(ployedJ or
MA#= At least three A6= concerned, responsible citi;ens where the %iolation occ)rred.M
&ec. 9. The sa(e Act is hereby f)rther a(ended by addin# new &ec.s to &ec. 1+ to be deno(inated as &ec.s 1+-A,
1+-0 and 1+-C to read as followsC
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M&ec. 1+-A. 9)risdiction. N The fa(ily co)rts shall ha%e ori#inal 4)risdiction o%er all cases in%ol%in# offenses
p)nishable )nder this ActC pro%ided, that in cities or pro%inces where there are no fa(ily co)rts yet, the re#ional trial
co)rts and the ()nicipal trial co)rts shall ha%e conc)rrent 4)risdiction dependin# on the penalties prescribed for the
offense char#ed.
MThe preli(inary in%esti#ation of cases filed )nder this Act shall be ter(inated within a period of thirty A6>= days fro(
the date of filin#.
M7f the preli(inary in%esti#ation establishes a pri(a facie case, then the correspondin# infor(ation shall be filed in
co)rt within forty ei#ht AE= ho)rs fro( the ter(ination of the in%esti#ation.
MTrial of cases )nder this Act shall be ter(inated by the co)rt not later than ninety A9>= days fro( the date of filin# of
infor(ation. Decision on said cases shall be rendered within a period of fifteen A1,= days fro( the date of s)b(ission
of the case.
M&ec. 1+-0. 5'e(ptions fro( 2ilin# 2ees. N 3hen the %icti( of child labor instit)tes a separate ci%il action for the
reco%ery of ci%il da(a#es, heBshe shall be e'e(pt fro( pay(ent of filin# fees.
M&ec. 1+-C. Access to 7((ediate Le#al, Medical and Psycho-&ocial &er%ices. N The workin# child shall ha%e the
ri#ht to free le#al, (edical and psycho-social ser%ices to be pro%ided by the &tate.M
&ec. 1>. 7(ple(entin# *)les and *e#)lations. N The &ecretary of Labor and 5(ploy(ent, in coordination with the
Co((ittees on Labor and 5(ploy(ent of both .o)ses of Con#ress, shall iss)e the necessary 7(ple(entin# *)les
and *e#)lations A7**= to effecti%ely i(ple(ent the pro%isions of this Act, in cons)ltation with concerned p)blic and
pri%ate sectors, within si'ty A+>= days fro( the effecti%ity of this Act.
&)ch r)les and re#)lations shall take effect )pon their p)blication in two A"= national newspapers of #eneral
circ)lation.
&ec. 11. &eparability Cla)se. N 7f any pro%ision of this Act is declared in%alid or )nconstit)tional, the %alidity of the
re(ainin# pro%isions hereof shall re(ain in f)ll force and effect.
&ec. 1". *epealin# Cla)se. N All laws, decrees, or r)les inconsistent with the pro%isions of this Act are hereby
repealed or (odified accordin#ly.
&ec. 16. 5ffecti%ity. N This Act shall take effect fifteen A1,= days fro( the date of its co(plete p)blication in the
1fficial Fa;ette or in at least two A"= national newspapers of #eneral circ)lation.
DEPARTMENT ORDER NO. =<4C3
SERIES OF :CC;
RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT @:;G, AMENDINDING R.A. >=GC, AS AMENDED
CHAPTER I L PRELIMINARY PROVISIONS
QQQQQQQQQQ
CHAPTER II L PROHIBITION ON THE EMPLOYMENT OF CHILDREN
SECTION 3 L GENERAL PROHIBITION L E9$"% (' o!"r)#'" %ro8#+"+ #& !"'" R,*"', &o $!#*+ 1"*o) G<
0"(r' of (." '!(** 1" "m%*o0"+, %"rm#"+ or ',ff"r"+ o )or/, #& (&0 %,1*#$ or %r#8(" "'(1*#'!m"&.
SECTION <4 PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN WORST FORMS OF CHILD
LABOR4 No $!#*+ '!(** 1" "&.(."+ #& !" )or' form' of $!#*+ *(1or. T!" %!r('" )or' form' of $!#*+ *(1or '!(**
r"f"r o (&0 of !" fo**o)#&.-
(7 A** form' of '*(8"r0,
*5P:0L7C ACT $1. 9">E
A$ ACT T1 7$&T7T:T5 P1L7C75& T1 5L7M7$AT5 T*A227CI7$F 7$ P5*&1$& 5&P5C7ALL@ 31M5$ A$D
C.7LD*5$, 5&TA0L7&.7$F T.5 $5C5&&A*@ 7$&T7T:T71$AL M5C.A$7&M& 21* T.5 P*1T5CT71$ A$D
&:PP1*T 12 T*A227CI5D P5*&1$&, P*1/7D7$F P5$ALT75& 21* 7T& /71LAT71$&, A$D 21* 1T.5*
P:*P1&5&.

&ection 1. Title. N This Act shall be known as the MAnti-Traffickin# in Persons Act of ">>6.M
&ec. ". Declaration of Policy. N 7t is hereby declared that the &tate %al)es the di#nity of e%ery h)(an person and
#)arantees the respect of indi%id)al ri#hts. 7n p)rs)it of this policy, the &tate shall #i%e hi#hest priority to the
enact(ent of (eas)res and de%elop(ent of pro#ra(s that will pro(ote h)(an di#nity, protect the people fro( any
threat of %iolence and e'ploitation, eli(inate traffickin# in persons, and (iti#ate press)res for in%ol)ntary (i#ration
and ser%it)de of persons, not only to s)pport trafficked persons b)t (ore i(portantly, to ens)re their reco%ery,
rehabilitation and reinte#ration into the (ainstrea( of society.
7t shall be a &tate policy to reco#ni;e the e<)al ri#hts and inherent h)(an di#nity of wo(en and (en as enshrined in
the :nited $ations :ni%ersal Declaration on .)(an *i#hts, :nited $ations Con%ention on the *i#hts of the Child,
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:nited $ations Con%ention on the Protection of Mi#rant 3orkers and their 2a(ilies, :nited $ations Con%ention
A#ainst Transnational 1r#ani;ed Cri(e 7ncl)din# its Protocol to Pre%ent, &)ppress and P)nish Traffickin# in
Persons, 5specially 3o(en and Children and all other rele%ant and )ni%ersally accepted h)(an ri#hts instr)(ents
and other international con%entions to which the Philippines is a si#natory.
&ec. 6. Definition of Ter(s. N As )sed in this ActC
Aa= Traffickin# in Persons N refers to the recr)it(ent, transportation, transfer or harborin#, or receipt of arsons with
or witho)t the %icti(Os consent or knowled#e, within or across national borders by (eans of threat or )se of force, or
other for(s of coercion, abd)ction, fra)d, deception, ab)se of power or of position, takin# ad%anta#e of the
%)lnerability of the persons, or, the #i%in# or recei%in# of pay(ents or benefits to achie%e the consent of a person
ha%in# control o%er another person for the p)rpose of e'ploitation which incl)des at a (ini()(, the e'ploitation or
the prostit)tion of others or other for(s of se')al e'ploitation, forced labor or ser%ices, sla%ery, ser%it)de or the
re(o%al or sale of or#ans.
The recr)it(ent transportation, transfer, harborin# or receipt of a child for the p)rpose of e'ploitation shall also be
considered as Mtraffickin# in personsM e%en if it does not in%ol%e any of the (eans set forth in the precedin#
para#raph.
Ab= Child N refers to a person below ei#hteen A1E= years of a#e or one who is o%er ei#hteen A1E= b)t is )nable to
f)lly take care of or protect hi(selfBherself fro( ab)se, ne#lect, cr)elty, e'ploitation, or discri(ination beca)se of a
physical or (ental disability or condition.
Ac= Prostit)tion N refers to any act, transaction, sche(e or desi#n in%ol%in# the )se of a person by another, for
se')al interco)rse or lasci%io)s cond)ct in e'chan#e for (oney, profit or any other consideration.
Ad= 2orced Labor and &la%ery N refer to the e'traction of work or ser%ices fro( any person by (eans of
entice(ent, %iolence, inti(idation or threat, )se of force or coercion, incl)din# depri%ation of freedo(, ab)se of
a)thority or (oral ascendancy, debt-bonda#e or deception.
Ae= &e' To)ris( N refers to a pro#ra( or#ani;ed by tra%el and to)ris(-related establish(ent and indi%id)als which
consists of to)ris( packa#es or acti%ities, )tili;in# and offerin# escort and se')al ser%ices as entice(ent for to)rists.
This incl)des se')al ser%ices and practices offered d)rin# rest and recreation periods for (e(bers of the (ilitary.
Af= &e')al 5'ploitation N refers to participation by a person in prostit)tion or the prod)ction of porno#raphic
(aterials as a res)lt of bein# s)b4ected to a threat, deception, coercion, abd)ction, force, ab)se of a)thority, debt
bonda#e, fra)d or thro)#h ab)se of a %icti(Os %)lnerability.
A#= Debt 0onda#e N refers to the pled#in# by the debtor of hisBher personal ser%ices or labor or those of a person
)nder hisBher control as sec)rity or pay(ent for a debt, when the len#th and nat)re of ser%ices is not clearly defined
or when the %al)e of the ser%ices as reasonably assessed is not applied toward the li<)idation of the debt.
Ah= Porno#raphy N refers to any representation, thro)#h p)blication, e'hibition, cine(ato#raphy, indecent shows,
infor(ation technolo#y, or by whate%er (eans, of a person en#a#ed in real or si()lated e'plicit se')al acti%ities or
any representation of the se')al parts of a person for pri(arily se')al p)rposes.
Ai= Co)ncil N shall (ean the 7nter-A#ency Co)ncil A#ainst Traffickin# created )nder &ec. "> of this Act.
&ec. . Acts of Traffickin# in Persons. N 7t shall be )nlawf)l for any person, nat)ral or 4)dicial, to co((it any of the
followin# acts.
Aa= To recr)it, transport, transfer, harbor, pro%ide, or recei%e a person by any (eans, incl)din# those done )nder
the prete't of do(estic or o%erseas e(ploy(ent or trainin# or apprenticeship, for the p)rpose of prostit)tion,
porno#raphy, se')al e'ploitation, forced labor, sla%ery, in%ol)ntary ser%it)de or debt bonda#eJ
Ab= To introd)ce or (atch for (oney, profit, or (aterial, econo(ic or other consideration, any person or, as
pro%ided for )nder *ep)blic Act $o. +9,,, any 2ilipino wo(en to a forei#n national, for (arria#e for the p)rpose of
ac<)irin#, b)yin#, offerin#, sellin# or tradin# hi(Bher to en#a#e in prostit)tion, porno#raphy, se')al e'ploitation,
forced labor, sla%ery, in%ol)ntary ser%it)de or debt bonda#eJ
Ac= To offer or contract (arria#e, real or si()lated, for the p)rpose of ac<)irin#, b)yin#, offerin#, sellin#, or tradin#
the( to en#a#e in prostit)tion, porno#raphy, se')al e'ploitation, forced labor or sla%ery, in%ol)ntary ser%it)de or debt
bonda#eJ
Ad= To )ndertake or or#ani;e to)rs and tra%el plans consistin# of to)ris( packa#es or acti%ities for the p)rpose of
)tili;in# and offerin# persons for prostit)tion, porno#raphy or se')al e'ploitationJ
Ae= To (aintain or hire a person to en#a#e in prostit)tion or porno#raphyJ
Af= To adopt or facilitate the adoption of persons for the p)rpose of prostit)tion, porno#raphy, se')al e'ploitation,
forced labor, sla%ery, in%ol)ntary ser%it)de or debt bonda#eJ
A#= To recr)it, hire, adopt, transport or abd)ct a person, by (eans of threat or )se of force, fra)d deceit, %iolence,
coercion, or inti(idation for the p)rpose of re(o%al or sale of or#ans of said personJ and
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Ah= To recr)it, transport or adopt a child to en#a#e in ar(ed acti%ities in the Philippines or abroad.
&ec. ,. Acts that Pro(ote Traffickin# in Persons. N The followin# acts which pro(ote or facilitate traffickin# in
persons shall be )nlawf)lC
Aa= To knowin#ly lease or s)blease, )se or allow to be )sed any ho)se, b)ildin# or establish(ent for the p)rpose of
pro(otin# traffickin# in personsJ
Ab= To prod)ce, print and iss)e or distrib)te )niss)ed, ta(pered or fake co)nselin# certificates, re#istration stickers
and certificates of any #o%ern(ent a#ency which iss)ed these certificates and stickers as proof of co(pliance with
#o%ern(ent re#)latory and pre-depart)re re<)ire(ents for the p)rpose of pro(otin# traffickin# in personsJ
Ac= To ad%ertise, p)blish, print, broadcast or distrib)te, or ca)se the ad%ertise(ent, p)blication, printin#
broadcastin# or distrib)tion by any (eans, incl)din# the )se of infor(ation technolo#y and the internet, of any
broch)re, flyer, or any propa#anda (aterial that pro(otes traffickin# in personsJ
Ad= To assist in the cond)ct of (isrepresentation or fra)d for p)rposes of facilitatin# the ac<)isition of clearances
and necessary e'it doc)(ents fro( #o%ern(ent a#encies that are (andate to pro%ide pre-depart)re re#istration and
ser%ices for departin# persons for the p)rpose of pro(otin# traffickin# in personsJ
Ae= To facilitate, assist or help in the e'it and entry of persons fro(Bto the co)ntry at international and local airports,
territorial bo)ndaries and seaports who are in possession of )niss)ed, ta(pered or fra)d)lent tra%el doc)(ents for
the p)rpose of pro(otin# traffickin# in personsJ
Af= To confiscate, conceal, or destroy the passport, tra%el doc)(ents, or personal doc)(ents or belon#in#s of
trafficked persons in f)rtherance of traffickin# or to pre%ent the( fro( lea%in# the co)ntry or seekin# redress fro( the
#o%ern(ent or appropriate a#enciesJ and
Ah= To knowin#ly benefit fro(, financial or otherwise, or (ake )se of, the labor or ser%ices of a person held to a
condition of in%ol)ntary ser%it)de, forced labor, or sla%ery.
&ec. +. H)alified Traffickin# in Persons. N The followin# are considered as <)alified traffickin#C
Aa= 3hen the trafficked person is a childJ
Ab= 3hen the adoption is effected thro)#h *ep)blic Act $o. E>6, otherwise known as the M7nter-Co)ntry Adoption
Act of 199,M and said adoption is for the p)rpose of prostit)tion, porno#raphy, se')al e'ploitation, forced labor,
sla%ery, in%ol)ntary ser%it)de or debt bonda#eJ
Ac= 3hen the cri(e is co((itted by a syndicate, or in lar#e scale. Traffickin# is dee(ed co((itted by a syndicate if
carried o)t by a #ro)p of three A6= or (ore persons conspirin# or confederatin# with one another. 7t is dee(ed
co((itted in lar#e scale if co((itted a#ainst three A6= or (ore persons, indi%id)ally or as a #ro)pJ
Ad= 3hen the offender is an ascendant, parent, siblin#, #)ardian or a person who e'ercise a)thority o%er the
trafficked person or when the offense is co((itted by a p)blic officer or e(ployeeJ
Ae= 3hen the trafficked person is recr)ited to en#a#e in prostit)tion with any (e(ber of the (ilitary or law
enforce(ent a#enciesJ
Af= 3hen the offender is a (e(ber of the (ilitary or law enforce(ent a#enciesJ and
A#= 3hen by reason or on occasion of the act of traffickin# in persons, the offended party dies, beco(es insane,
s)ffers ()tilation or is afflicted with .)(an 7(()nodeficiency /ir)s A.7/= or the Ac<)ired 7(()ne Deficiency
&yndro(e AA7D&=.
&ec. 7. Confidentiality. N At any sta#e of the in%esti#ation, prosec)tion and trial of an offense )nder this Act, law
enforce(ent officers, prosec)tors, 4)d#es, co)rt personnel and (edical practitioners, as well as parties to the case,
shall reco#ni;e the ri#ht to pri%acy of the trafficked person and the acc)sed. Towards this end, law enforce(ent
officers, prosec)tors and 4)d#es to who( the co(plaint has been referred (ay, whene%er necessary to ens)re a fair
and i(partial proceedin#J and after considerin# all circ)(stances for the best interest of the parties order a closed-
door in%esti#ation, prosec)tion or trial. The na(e and personal circ)(stances of the trafficked person or of the
acc)sed, or any other infor(ation tendin# to establish their identities and s)ch circ)(stances or infor(ation shall not
be disclosed to the p)blic.
7n cases when prosec)tion or trial is cond)cted behind closed-doors, it shall be )nlawf)l for any editor, p)blisher, and
reporter or col)(nist in case of printed (aterials, anno)ncer or prod)cer in case of tele%ision and radio, prod)cer and
director of a fil( in case of the (o%ie ind)stry, or any person )tili;in# tri-(edia facilities or infor(ation technolo#y to
ca)se p)blicly of any case of traffickin# in persons.
&ec. E. Prosec)tion of Cases. N Any person who has personal knowled#e of the co((ission of any offense )nder
this Act, the trafficked person, the parents, spo)se, siblin#s, children or le#al #)ardian (ay file a co(plaint for
traffickin#.
&ec. 9. /en)e. N A cri(inal action arisin# fro( %iolation of this Act shall be filed where the offense was co((itted,
or where any of its ele(ents occ)rred, or where the trafficked person act)ally resides at the ti(e of the co((ission
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of the offenseC pro%ided, that the co)rt where the cri(inal action is first filed shall ac<)ire 4)risdiction to the e'cl)sion
of other co)rts.
&ec. 1>. Penalties and &anctions. N The followin# penalties and sanctions are hereby established for the offenses
en)(erated in this ActC
Aa= Any person fo)nd #)ilty of co((ittin# any of the acts en)(erated in &ec. shall s)ffer the penalty of
i(prison(ent of twenty A">= years and a fine of not less than 1ne (illion pesos AP1,>>>,>>>.>>= b)t not (ore than
Two (illion pesos AP",>>>,>>>.>>=J
Ab= Any person fo)nd #)ilty of co((ittin# any of the acts en)(erated in &ec. , shall s)ffer the penalty of
i(prison(ent of fifteen A1,= years and a fine of not less than 2i%e h)ndred tho)sand pesos AP,>>,>>>.>>= b)t not
(ore than 1ne (illion pesos AP1,>>>,>>>.>>=J
Ac= Any person fo)nd #)ilty of <)alified traffickin# )nder &ec. + shall s)ffer the penalty of life i(prison(ent and a
fine of not less than Two (illion pesos AP",>>>,>>>.>>= b)t not (ore than 2i%e (illion pesos AP,,>>>,>>>.>>=J
Ad= Any person who %iolates &ec. 7, hereof shall s)ffer the penalty of i(prison(ent of si' A+= years and a fine of not
less than 2i%e h)ndred tho)sand pesos AP,>>,>>>.>>= b)t not (ore than 1ne (illion pesos AP1,>>>,>>>.>>=J
Ae= 7f the offender is a corporation, partnership, association, cl)b, establish(ent or any 4)dicial person, the penalty
shall be i(posed )pon the owner, president, partner, (ana#erJ andBor any responsible officer who participated in the
co((ission of the cri(e or who shall ha%e knowin#ly per(itted or failed to pre%ent its co((issionJ
Af= The re#istration with the &ec)rities and 5'chan#e Co((ission A&5C= and license to operate of the errin#
a#ency, corporation, association reli#io)s #ro)p, to)r or tra%el a#ent, cl)b or establish(ent, or any place of
entertain(ent shall be cancelled and re%oked per(anently. The owner, president, partner or (ana#er thereof shall
not be allowed to operate si(ilar establish(ents in different na(eJ
A#= 7f the offender is a forei#ner, he shall be i((ediately deported after ser%in# his sentence and be barred
per(anently fro( enterin# the co)ntryJ
Ah= Any e(ployee or official of #o%ern(ent a#encies who shall iss)e or appro%e the iss)ance of tra%el e'it
clearances, passports, re#istration certificates, co)nselin# certificates, (arria#e license, and other si(ilar doc)(ents
to persons, whether 4)dicial or nat)ral, recr)it(ent a#encies, establish(ents or other indi%id)als or #ro)ps, who fail to
obser%e the prescribed proced)res and the re<)ire(ents as pro%ided for by laws, r)les and re#)lations, shall beheld
ad(inistrati%ely liable, witho)t pre4)dice to cri(inal liability )nder this Act. The concerned #o%ern(ent official or
e(ployee shall, )pon con%iction, be dis(issed fro( the ser%ice and be barred per(anently to hold p)blic office.
.isBher retire(ent and other benefits shall likewise be forfeitedJ and
Ai= Con%iction by final 4)d#(ent of the adopter for any offense )nder this Act shall res)lt in the i((ediate rescission
of the decree of adoption.
&ec. 11. :se of Trafficked Persons. N Any person who b)y or en#a#es the ser%ices of trafficked persons for
prostit)tion shall be penali;ed as followsC
Aa= 2irst offense N si' A+= (onths of co(()nity ser%ice as (ay be deter(ined by the co)rt and a fine of 2ifty
tho)sand pesos AP,>,>>>.>>=J and
Ab= &econd and s)bse<)ent offenses N 7(prison(ent of one A1= year and a fine of 1ne h)ndred tho)sand pesos
AP1>>,>>>.>>=.
&ec. 1". Prescripti%e Period. N Traffickin# cases )nder this Act shall prescribe in ten A1>= yearsC pro%ided,
howe%er, that traffickin# cases co((itted by a syndicate or in a lar#e scale as defined )nder &ec. + shall prescribe in
twenty A">= years.
The prescripti%e period shall co((ence to r)n fro( the day on which the trafficked person is deli%ered or released
fro( the conditions of bonda#e and shall be interr)pted by the filin# of the co(plaint or infor(ation and shall
co((ence to r)n a#ain when s)ch proceedin#s ter(inate witho)t the acc)sed bein# con%icted or ac<)itted or are
)n4)stifiably stopped for any reason not i(p)table to the acc)sed.
&ec. 16. 5'e(ption fro( 2ilin# 2ees. N 3hen the trafficked person instit)tes a separate ci%il action for the
reco%ery of ci%il da(a#es, heBshe shall be e'e(pt fro( the pay(ent of filin# fees.
&ec. 1. Confiscation and 2orfeit)re of the Proceeds and 7nstr)(ents Deri%ed fro( Traffickin# in Persons. N 7n
addition to the penalty i(posed for the %iolation of this Act, the co)rt shall order the confiscation and forfeit)re, in
fa%or of the #o%ern(ent, of all the proceeds and properties deri%ed fro( the co((ission of the cri(eJ )nless they are
the property of a third person not liable for the )nlawf)l actC pro%ided, howe%er, that all awards for da(a#es shall be
taken fro( the personal and separate properties of the offenderC pro%ided f)rther, that if s)ch properties are
ins)fficient, the balance shall be taken fro( the confiscated and forfeited properties.
3hen the proceeds, properties and instr)(ents of the offense ha%e been destroyed, di(inished in %al)e or otherwise
rendered worthless by any act or o(ission, directly or indirectly, or it has been concealed, re(o%ed, con%erted or
transferred to pre%ent the sa(e fro( bein# fo)nd or to a%oid forfeit)re or confiscation, the offender shall be ordered
to pay the a(o)nt e<)al to the %al)e of the proceeds, property or instr)(ents of the offense.
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&ec. 1,. Tr)st 2)nd. N All fines i(posed )nder this Act and the proceeds and properties forfeited and confiscated
p)rs)ant to &ec. 1 hereof shall accr)e to a Tr)st 2)nd to be ad(inistered and (ana#ed by the Co)ncil to be )sed
e'cl)si%ely for pro#ra(s that will pre%ent acts of traffickin# and protect, rehabilitate, reinte#rate trafficked persons into
the (ainstrea( of society. &)ch pro#ra(s shall incl)de, b)t not li(ited to, the followin#C
Aa= Pro%ision for (andatory ser%ices set forth in &ec. "6 of this ActJ
Ab= &ponsorship of a national research pro#ra( on traffickin# and establish(ent of a data collection syste( or
(onitorin# and e%al)ation p)rposesJ
Ac= Pro%ision of necessary technical and (aterial s)pport ser%ices to appropriate #o%ern(ent a#encies and non-
#o%ern(ent or#ani;ations A$F1s=J
Ad= &ponsorship of conferences and se(inars to pro%ide %en)e for consens)s b)ildin# a(on#st the p)blic, the
acade(e, #o%ern(ent, $F1s and international or#ani;ationsJ and
Ae= Pro(otion of infor(ation and ed)cation ca(pai#n on traffickin#.
&ec. 1+. Pro#ra(s that Address Traffickin# in Persons. N The #o%ern(ent shall establish and i(ple(ent
pre%enti%e, protecti%e and rehabilitati%e pro#ra(s for trafficked persons. 2or this p)rpose, the followin# a#encies are
hereby (andated to i(ple(ent the followin# pro#ra(sC
Aa= Depart(ent of 2orei#n Affairs AD2A= N shall (ake a%ailable its reso)rces and facilities o%erseas for trafficked
persons re#ardless of their (anner of entry to the recei%in# co)ntry, and e'plore (eans to f)rther enhance its
assistance in eli(inatin# traffickin# acti%ities thro)#h closer networkin# with #o%ern(ent a#encies in the co)ntry and
o%erseas, partic)larly in the for()lation of policies and i(ple(entation of rele%ant pro#ra(s.
The D2A shall take necessary (eas)res for the efficient i(ple(entation of the Machine *eadable Passports to
protect the inte#rity of Philippine passports, %isas and other tra%el doc)(ents to red)ce the incidence of traffickin#
thro)#h the )se of fra)d)lent identification doc)(ents. 7t shall establish and i(ple(ent a pre-(arria#e, on-site and
pre-depart)re co)nselin# pro#ra( on inter(arria#es.
Ab= Depart(ent of &ocial 3elfare and De%elop(ent AD&3D= N shall i(ple(ent rehabilitati%e and protecti%e
pro#ra(s for trafficked persons. 7t shall pro%ide co)nselin# and te(porary shelter to trafficked persons and de%elop a
syste( for accreditation a(on# $F1s for p)rposes of establishin# centers and pro#ra(s for inter%ention in %ario)s
le%els of the co(()nity.
Ac= Depart(ent of Labor and 5(ploy(ent AD1L5= N shall ens)re the strict i(ple(entation and co(pliance with the
r)les and #)idelines relati%e to the e(ploy(ent of persons locally and o%erseas. 7t shall likewise (onitor, doc)(ent
and report cases of traffickin# in persons in%ol%in# e(ployers and labor recr)iters.
Ad= Depart(ent of 9)stice AD19= N shall ens)re the prosec)tion of persons acc)sed of traffickin# and desi#nate
and train special prosec)tors who shall handle and prosec)te cases of traffickin#. 7t shall also establish a (echanis(
for free le#al assistance for trafficked persons, in coordination with the D&3D, 7nte#rated 0ar of the Philippines A70P=
and other $F1s and %ol)nteer #ro)ps.
Ae= $ational Co((ission on the *ole of 2ilipino 3o(en A$C*23= N shall acti%ely participate and coordinate in the
for()lation and (onitorin# of policies addressin# the iss)e of traffickin# in persons in both its local and international
ad%ocacy for wo(enOs iss)es.
Af= 0)rea) of 7((i#ration A07= N shall strictly ad(inister and enforce i((i#ration and alien ad(inistration laws. 7t
shall adopt (eas)res for the apprehension of s)spected traffickers both at the place of arri%al and depart)re and
shall ens)re co(pliance by the 2ilipino fiancesBfiancees and spo)ses of forei#n nationals with the #)idance and
co)nselin# re<)ire(ents as pro%ided for in this Act.
A#= Philippine $ational Police AP$P= N shall be the pri(ary law enforce(ent a#ency to )ndertake s)r%eillance,
in%esti#ation and arrest of indi%id)als or persons s)spected to be en#a#ed in traffickin#. 7t shall closely coordinate
with %ario)s law enforce(ent a#encies to sec)re concerted efforts for effecti%e in%esti#ations and apprehension of
s)spected traffickers. 7t shall also establish a syste( to recei%e co(plaints and calls to assist trafficked persons and
cond)ct resc)e operations.
Ah= Philippine 1%erseas 5(ploy(ent Ad(inistration AP15A= N shall i(ple(ent an effecti%e pre-e(ploy(ent
orientation se(inars and pre-depart)re co)nselin# pro#ra(s to applicants for o%erseas e(ploy(ent. 7t shall likewise
for()late a syste( of pro%idin# free le#al assistance to trafficked persons.
Ai= Depart(ent of the 7nterior and Local Fo%ern(ent AD7LF= N shall instit)te a syste(atic infor(ation and
pre%ention ca(pai#n and likewise (aintain a databank for the effecti%e (onitorin# doc)(entation and prosec)tion of
cases on traffickin# in persons.
A4= Local #o%ern(ent )nits ALF:s= N shall (onitor and doc)(ent cases of traffickin# in persons in their areas of
4)risdiction, effect the cancellation of licenses of establish(ents which %iolate the pro%isions of this Act and ens)re
effecti%e prosec)tion of s)ch cases. They shall also )ndertake an infor(ation ca(pai#n a#ainst traffickin# in persons
thro)#h the establish(ent of the Mi#rants Ad%isory and 7nfor(ation $etwork AMA7$= desks in ()nicipalities or
pro%inces in coordination with D7LF, Philippine 7nfor(ation A#ency AP7A=, Co((ission on 2ilipinos 1%erseas AC21=,
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$F1s and other concerned a#encies. They shall enco)ra#e and s)pport co(()nity based initiati%es which address
the traffickin# in persons. 7n i(ple(entin# this Act, the a#encies concerned (ay seek and enlist the assistance of
$F1s, peopleOs or#ani;ations AP1s=, ci%ic or#ani;ations and other %ol)nteer #ro)ps.
&ec. 17. Le#al Protection to Trafficked Persons. N Trafficked persons shall be reco#ni;ed as %icti(s of the act or
acts of traffickin# and as s)ch shall not be penali;ed for cri(es directly related to the acts of traffickin# en)(erated in
this Act or in obedience to the order (ade by the trafficker in relation thereto. 7n this re#ard, the consent of a
trafficked person to the intended e'ploitation set forth in this Act shall be irrele%ant.
&ec. 1E. Preferential 5ntitle(ent :nder the 3itness Protection Pro#ra(. N Any pro%ision of *ep)blic Act $o. +9E1
to the contrary notwithstandin#, any trafficked person shall be entitled to the witness protection pro#ra( pro%ided
therein.
&ec. 19. Trafficked Persons 3ho are 2orei#n $ationals. N &)b4ect to the #)idelines iss)ed by the Co)ncil,
trafficked persons in the Philippines who are nationals of a forei#n co)ntry shall also be entitled to appropriate
protection, assistance and ser%ices a%ailable to trafficked persons )nder this ActC pro%ided, that they shall be
per(itted contin)ed presence in the Philippines for a len#th of ti(e prescribed by the Co)ncil as necessary to effect
the prosec)tion of offenders.
&ec. ">. 7nter-A#ency Co)ncil A#ainst Traffickin#. N There is hereby established an 7nter-A#ency Co)ncil A#ainst
Traffickin#, to be co(posed of the &ecretary of the Depart(ent of 9)stice as Chairperson and the &ecretary of the
Depart(ent of &ocial 3elfare and De%elop(ent as Co-Chairperson and shall ha%e the followin# as (e(bersC
Aa= &ecretary, Depart(ent of 2orei#n AffairsJ
Ab= &ecretary, Depart(ent of Labor and 5(ploy(entJ
Ac= Ad(inistrator, Philippine 1%erseas 5(ploy(ent Ad(inistrationJ
Ad= Co((issioner, 0)rea) of 7((i#rationJ
Ae= Director-Feneral, Philippine $ational PoliceJ
Af= Chairperson, $ational Co((ission on the *ole of 2ilipino 3o(enJ and
A#= Three A6= representati%es fro( $F1s, who shall be co(posed of one A1= representati%e each fro( a(on# the
sectors representin# wo(en, o%erseas 2ilipino workers A123s= and children, with a pro%en record of in%ol%e(ent in
the pre%ention and s)ppression of traffickin# in persons. These representati%es shall be no(inated by the
#o%ern(ent a#ency representati%es of the Co)ncil, for appoint(ent by the President for a ter( of three A6= years.
The (e(bers of the Co)ncil (ay desi#nate their per(anent representati%es who shall ha%e a rank not lower than an
assistant secretary or its e<)i%alent to (eetin#s, and shall recei%e e(ol)(ents as (ay be deter(ined by the Co)ncil
in accordance with e'istin# b)d#et and acco)ntin# r)les and re#)lations.
&ec. "1. 2)nctions of the Co)ncil. N The Co)ncil shall ha%e the followin# powers and f)nctionsC
Aa= 2or()late a co(prehensi%e and inte#rated pro#ra( to pre%ent and s)ppress the traffickin# in personsJ
Ab= Pro()l#ate r)les and re#)lations as (ay be necessary for the effecti%e i(ple(entation of this ActJ
Ac= Monitor and o%ersee the strict i(ple(entation of this ActJ
Ad= Coordinate the pro#ra(s and pro4ects of the %ario)s (e(ber a#encies to effecti%ely address the iss)es and
proble(s attendant to traffickin# in persons,
Ae= Coordinate the cond)ct of (assi%e infor(ation disse(ination and ca(pai#n on the e'istence of the law and the
%ario)s iss)es and proble(s attendant to traffickin# thro)#h the LF:s, concerned a#encies, and $F1sJ
Af= Direct other a#encies to i((ediately respond to the proble(s bro)#ht to their attention and report to the Co)ncil
on action takenJ
A#= Assist in filin# of cases a#ainst indi%id)als, a#encies, instit)tions or establish(ents that %iolate the pro%isions of
this ActJ
Ah= 2or()late a pro#ra( for the reinte#ration of trafficked persons in cooperation with D1L5, D&3D, Technical
5d)cation and &kills De%elop(ent A)thority AT5&DA=, Co((ission on .i#her 5d)cation AC.5D=, LF:s and $F1Os.
Ai= &ec)re fro( any depart(ent, b)rea), office, a#ency, or instr)(entality of the #o%ern(ent or fro( $F1s and
other ci%ic or#ani;ations s)ch assistance as (ay be needed to effecti%ely i(ple(ent this ActJ
A4= Co(ple(ent the shared #o%ern(ent infor(ation syste( for (i#ration established )nder *ep)blic Act $o. E>",
otherwise known as the MMi#rant 3orkers and 1%erseas 2ilipinos Act of 199,M with data on cases of traffickin# in
persons, and ens)re that the proper a#encies cond)ct a contin)in# research and st)dy on the patterns and sche(e
of traffickin# in persons which shall for( the basis for policy for()lation and pro#ra( directionJ
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Ak= De%elop the (echanis( to ens)re the ti(ely, coordinated, and effecti%e response to cases of traffickin# in
personsJ
Al= *eco((end (eas)res to enhance cooperati%e efforts and ()t)al assistance a(on# forei#n co)ntries thro)#h
bilateral andBor ()ltilateral arran#e(ents to pre%ent and s)ppress international traffickin# in personsJ
A(= Coordinate with the Depart(ent of Transportation and Co(()nications AD1TC=, Depart(ent of Trade and
7nd)stry ADT7=, and other $F1s in (onitorin# the pro(otion of ad%ertise(ent of traffickin# in the internetJ
An= Adopt (eas)res and policies to protect the ri#hts and needs of trafficked persons who are forei#n nationals in
the PhilippinesJ
Ao= 7nitiate trainin# pro#ra(s in identifyin# and pro%idin# the necessary inter%ention or assistance to trafficked
personsJ and
Ap= 5'ercise all the powers and perfor( s)ch other f)nctions necessary to attain the p)rposes and ob4ecti%es of this
Act.
&ec. "". &ecretariat to the Co)ncil. N The Depart(ent of 9)stice shall establish the necessary &ecretariat for the
Co)ncil.
&ec. "6. Mandatory &er%ices to Trafficked Persons. N To ens)re reco%ery, rehabilitation and reinte#ration into the
(ainstrea( of societyJ concerned #o%ern(ent a#encies shall (ake a%ailable the followin# ser%ices to trafficked
personsC
Aa= 5(er#ency shelter or appropriate ho)sin#J
Ab= Co)nselin#J
Ac= 2ree le#al ser%ices which shall incl)de infor(ation abo)t the %icti(s ri#hts and the proced)re for fillin#
co(plaints, clai(in# co(pensation and s)ch other le#al re(edies a%ailable to the(, in a lan#)a#e )nderstood by the
trafficked personJ
Ad= Medical or psycholo#ical ser%icesJ
Ae= Li%elihood and skills trainin#J and
Af= 5d)cational assistance to a trafficked child.
&)stained s)per%ision and follow thro)#h (echanis( that will track the pro#ress of reco%ery, rehabilitation and
reinte#ration of the trafficked persons shall be adopted and carried o)t.
&ec. ". 1ther &er%ices for Trafficked Persons. N
Aa= Le#al Assistance. N Trafficked persons shall be considered )nder the cate#ory M1%erseas 2ilipino in DistressM
and (ay a%ail of the le#al assistance created by *ep)blic Act $o. E>", s)b4ect to the #)idelines as pro%ided by law.
Ab= 1%erseas 2ilipino *eso)rce Centers. N The ser%ices a%ailable to o%erseas 2ilipinos as pro%ided for by *ep)blic
Act $o. E>" shall also be e'tended to trafficked persons re#ardless of their i((i#ration stat)s in the host co)ntry.
Ac= The Co)ntry Tea( Approach. N The co)ntry tea( approach )nder 5'ec)ti%e 1rder $o. 7 of 1996, shall be
the operational sche(e )nder which Philippine e(bassies abroad shall pro%ide protection to trafficked persons
insofar as the pro(otion of their welfare, di#nity and f)nda(ental ri#hts are concerned.
&ec. ",. *epatriation of Trafficked Persons. N The D2A, in coordination with D1L5 and other appropriate
a#encies, shall ha%e the pri(ary responsibility for the repatriation of trafficked persons, re#ardless of whether they
are doc)(ented or )ndoc)(ented.
7f, howe%er, the repatriation of the trafficked persons shall e'pose the %icti(s to #reater risks, the D2A shall (ake
representation with the host #o%ern(ent for the e'tension of appropriate residency per(its and protection, as (ay be
le#ally per(issible in the host co)ntry.
&ec. "+. 5'tradition. N The D19, in cons)ltation with D2A, shall endea%or to incl)de offenses of traffickin# in
persons a(on# e'traditable offenses.
&ec. "7. *eportin# *e<)ire(ents. N The Co)ncil shall s)b(it to the President of the Philippines and to Con#ress
an ann)al report of the policies, pro#ra(s and acti%ities relati%e to the i(ple(entation of this Act.
&ec. "E. 2)ndin#. N The heads of the depart(ents and a#encies concerned shall i((ediately incl)de in their
pro#ra(s and iss)e s)ch r)les and re#)lations to i(ple(ent the pro%isions of this Act, the f)ndin# of which shall be
incl)ded in the ann)al Feneral Appropriations Act.
&ec. "9. 7(ple(entin# *)les and *e#)lations. N The Co)ncil shall pro()l#ate the necessary i(ple(entin# r)les
and re#)lations within si'ty A+>= days fro( the effecti%ity of this Act.
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&ec. 6>. $on-restriction of 2reedo( of &peech and of Association, *eli#ion and the *i#ht to Tra%el. N $othin# in
this Act shall be interpreted as a restriction of the freedo( of speech and of association, reli#ion and the ri#ht to tra%el
for p)rposes not contrary to law as #)aranteed by the Constit)tion.
&ec. 61. &eparability Cla)se. N 7f, for any reason, any &ec. or pro%ision of this Act is held )nconstit)tional or
in%alid, the other &ec.s or pro%isions hereof shall not be affected thereby.
&ec. 6". *epealin# Cla)se. N All laws, presidential decrees, e'ec)ti%e orders and r)les and re#)lations, or parts
thereof, inconsistent with the pro%isions of this Act are hereby repealed or (odified accordin#lyC pro%ided, that this
Act shall not in any way a(end or repeal the pro%ision of *ep)blic Act $o. 7+1>, otherwise known as the M&pecial
Protection of Children A#ainst Child Ab)se, 5'ploitation and Discri(ination Act.M
&ec. 66. 5ffecti%ity. N This Act shall take effect fifteen A1,= days fro( the date of its co(plete p)blication in at least
two A"= newspapers of #eneral circ)lation.
6.*5/7&5D P5$AL C1D5
A*T7CL5 "7". &LA/5*@
The penalty of prision (ayor and a fine of not e'ceedin# 1>,>>> pesos shall be i(posed )pon
anyone who shall p)rchase, sell, kidnap, or detain a h)(an bein# for the p)rpose of ensla%in# hi(.
7f the cri(e be co((itted for the p)rpose of assi#nin# the offended party to so(e i((oral traffic,
the penalty shall be i(pose in its (a'i()( period.
A*T7CL5 "76. 5DPL17TAT71$ 12 C.7LD LA01*
The penalty of prision correccional in its (ini()( and (edi)( periods and a fine not e'ceedin#
,>> pesos shall be i(posed )pon anyone who, )nder the prete't of rei(b)rsin# hi(self of a debt inc)rred by an
ascendant, #)ardian, or person entr)sted with the c)stody of a (inor, shall, a#ainst the latter8s will, retain hi( in his
ser%ice.
A*T7CL5 "7. &5*/7C5& *5$D5*5D :$D5* C1MP:L&71$ 7$ PA@M5$T 12 D50T
The penalty of arresto (ayor in its (a'i()( period shall be i(posed )pon any person who, in
order to re<)ire or enforce the pay(ent of a debt, shall co(pel the debtor to work for hi(, a#ainst his will, as
ho)sehold ser%ant or far( laborer
A*T7CL5 "7E. 5DPL17TAT71$ 12 M7$1*&.
The penalty of prision correccional in its (ini()( and (edi)( periods and a fine not e'ceedin#
,>> pesos shall be i(posed )ponC
1. Any person who shall ca)se any boy or #irl )nder si'teen years of a#e to perfor( any
dan#ero)s feat of balancin#, physical stren#th, or contortion.
". Any person who, bein# an acrobat, #y(nast, ropewalker, di%er, wild-ani(al ta(er or circ)s
(ana#er, or en#a#ed in a si(ilar callin#, shall e(ploy in e'hibitions of these kinds, children
)nder si'teen years of a#e who are not his children or descendants.
6. Any person en#a#ed in any of the callin#s en)(erated in the ne't precedin# para#raph who
shall e(ploy any descendant of his )nder twel%e years of a#e in s)ch dan#ero)s e'hibitions.
. Any ascendant, #)ardian, teacher, or person entr)sted in any capacity with the care of a child
)nder si'teen years of a#e, who shall deli%er s)ch child #rat)ito)sly to any person followin#
any of the callin#s en)(erated in para#raph " hereof, or to any habit)al %a#rant or be##ar.
7f the deli%ery shall ha%e been (ade in consideration of any price, co(pensation, or pro(ise,
the penalty shall in e%ery case be i(posed in its (a'i()( period.
7n either case, the #)ardian or c)rator con%icted shall also be re(o%ed fro( office as #)ardian
or c)ratorJ and in the case of the parents of the child, they (ay be depri%ed, te(porarily or
perpet)ally, in the discretion of the co)rt, of their a)thority.
,. Any person who shall ind)ce any child )nder si'teen years of a#e to abandon the ho(e of its
ascendants, #)ardians, c)rators, or teachers to follow any person en#a#ed in any of the
callin#s (entioned in para#raph " hereof, or to acco(pany any habit)al %a#rant or be##ar.
D. 5MPL1@M5$T 12 .1:&5.5LP5*
A*T. 11. Co8"r(.". - This Chapter shall apply to all persons renderin# ser%ices in ho)seholds for
co(pensation.
TDom"'#$ or !o,'"!o*+ '"r8#$"T shall (ean ser%ice in the e(ployer8s ho(e which is )s)ally necessary or
desirable for the (aintenance and en4oy(ent thereof and incl)des (inisterin# to the personal co(fort and
con%enience of the (e(bers of the e(ployer8s ho)sehold, incl)din# ser%ices of fa(ily dri%ers.
A*T. 1". Co&r($ of +om"'#$ '"r8#$". - The ori#inal contract of do(estic ser%ice shall not last for (ore
than two A"= years b)t it (ay be renewed for s)ch periods as (ay be a#reed )pon by the parties.
A*T. 16. M#&#m,m )(.". - Aa= .o)sehelpers shall be paid the followin# (ini()( wa#e ratesC
A1= 5i#ht h)ndred pesos APE>>.>>= a (onth for ho)sehelpers in Manila, H)e;on, Pasay, and Caloocan
cities and ()nicipalities of Makati, &an 9)an, Mandal)yon#, M)ntinl)pa, $a%otas, Malabon, Parada<)e,
Las Pidas, Pasi#, Marikina, /alen;)ela, Ta#)i# and Pateros in Metro Manila and in hi#hly )rbani;ed
citiesJ
A"= &i' h)ndred fifty pesos AP+,>.>>= a (onth for those in other chartered cities and first-class
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()nicipalitiesJ and
A6= 2i%e h)ndred fifty pesos AP,,>.>>= a (onth for those in other ()nicipalities.
Pro%ided, That the e(ployers shall re%iew the e(ploy(ent contracts of their ho)sehelpers e%ery three A6=
years 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 1ne tho)sand pesos AP1,>>>.>>=
shall be co%ered by the &ocial &ec)rity &yste( A&&&= and be entitled to all the benefits pro%ided
there)nder. AAs a(ended by *ep)blic Act $o. 7+,,, A)#)st 19, 1996=.
A*T. 1. M#&#m,m $('! )(.". - 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.
A*T. 1,. A''#.&m"& o &o&4!o,'"!o*+ )or/. - $o ho)sehelper shall be assi#ned to work in a
co((ercial, ind)strial or a#ric)lt)ral enterprise at a wa#e or salary rate lower than that pro%ided for
a#ric)lt)ral or non-a#ric)lt)ral workers as prescribed herein.
A*T. 1+. O%%or,&#0 for "+,$(#o&. - 7f the ho)sehelper is )nder the a#e of ei#hteen A1E= years, the
e(ployer shall #i%e hi( or her an opport)nity for at least ele(entary ed)cation. The cost of ed)cation
shall be part of the ho)sehelper8s co(pensation, )nless there is a stip)lation to the contrary.
A*T. 17. Tr"(m"& of !o,'"!"*%"r'. - The e(ployer shall treat the ho)sehelper in a 4)st and h)(ane
(anner. 7n no case shall physical %iolence be )sed )pon the ho)sehelper.
A*T. 1E. Bo(r+, *o+.#&., (&+ m"+#$(* ("&+(&$". - The e(ployer shall f)rnish the ho)sehelper, free of
char#e, s)itable and sanitary li%in# <)arters as well as ade<)ate food and (edical attendance.
A*T. 19. I&+"m&#0 for ,&A,' "rm#&(#o& of '"r8#$"'. - 7f the period of ho)sehold ser%ice is fi'ed, neither
the e(ployer nor the ho)sehelper (ay ter(inate the contract before the e'piration of the ter(, e'cept for
a 4)st ca)se. 7f the ho)sehelper is )n4)stly dis(issed, he or she shall be paid the co(pensation already
earned pl)s that for fifteen A1,= days by way of inde(nity.
7f the ho)sehelper lea%es witho)t 4)stifiable reason, he or she shall forfeit any )npaid salary d)e hi( or
her not e'ceedin# fifteen A1,= days.
A*T. 1,>. S"r8#$" of "rm#&(#o& &o#$". - 7f the d)ration of the ho)sehold ser%ice is not deter(ined either
in stip)lation or by the nat)re of the ser%ice, the e(ployer or the ho)sehelper (ay #i%e notice to p)t an
end to the relationship fi%e A,= days before the intended ter(ination of the ser%ice.
A*T. 1,1. Em%*o0m"& $"r#f#$(#o&. - :pon the se%erance of the ho)sehold ser%ice relation, the e(ployer
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
efficiency and cond)ct as ho)sehelper.
A*T. 1,". Em%*o0m"& r"$or+. - The e(ployer (ay keep s)ch records as he (ay dee( necessary to
reflect the act)al ter(s and conditions of e(ploy(ent of his ho)sehelper, which the latter shall
a)thenticate by si#nat)re or th)(b(ark )pon re<)est of the e(ployer.
*.A. 7+,, M7$7M:M 3AF5 12 .1:&5.5LP5*&
The (ini()( co(pensation of PE>> a (onth is re<)ired for ho)sehelpers in Manila, H)e;on, Pasay, Caloocan,
Makati, Mandal)yon#, Pasi#, M)ntinl)pa cities and in the ()nicipalities of &an 9)an, $a%otas, Malabon, Parana<)e,
Las Pinas, Marikina, /alen;)ela, Ta#)i#, and Pateros in Metro Manila and hi#hly )rbani;ed cities.
P +,>. >> a (onth in other chartered cities and first class ()nicipalities like cities other than Manila, Pasay, H)e;on
and Caloocan cities and hi#hly )rbani;ed cities.
P,,>.>> a (onth in those other ()nicipalities.
.o)sehelpers who are recei%in# at least P1,>>> a (onth shall be co%ered by the &ocial &ec)rity &yste(.
C7/7L C1D5 P*1/7&71$&
&5CT71$ 1. - .o)sehold &er%ice An=

Art. 1+E9. .o)sehold ser%ice shall always be reasonably co(pensated. Any stip)lation that ho)sehold ser%ice is
witho)t co(pensation shall be %oid. &)ch co(pensation shall be in addition to the ho)se helperOs lod#in#, food, and
(edical attendance.
Art. 1+9>. The head of the fa(ily shall f)rnish, free of char#e, to the ho)se helper, s)itable and sanitary <)arters as
well as ade<)ate food and (edical attendance.
Art. 1+91. 7f the ho)se helper is )nder the a#e of ei#hteen years, the head of the fa(ily shall #i%e an opport)nity to
the ho)se helper for at least ele(entary ed)cation. The cost of s)ch ed)cation shall be a part of the ho)se helperOs
co(pensation, )nless there is a stip)lation to the contrary.
Art. 1+9". $o contract for ho)sehold ser%ice shall last for (ore than two years. .owe%er, s)ch contract (ay be
renewed fro( year to year.
Art. 1+96. The ho)se helperOs clothes shall be s)b4ect to stip)lation. .owe%er, any contract for ho)sehold ser%ice
shall be %oid if thereby the ho)se helper cannot afford to ac<)ire s)itable clothin#.
Art. 1+9. The head of the fa(ily shall treat the ho)se helper in a 4)st and h)(ane (anner. 7n no case shall physical
%iolence be )sed )pon the ho)se helper.
Art. 1+9,. .o)se helper shall not be re<)ired to work (ore than ten ho)rs a day. 5%ery ho)se helper shall be allowed
fo)r daysO %acation each (onth, with pay.
Art. 1+9+. 7n case of death of the ho)se helper, the head of the fa(ily shall bear the f)neral e'penses if the ho)se
helper has no relati%es in the place where the head of the fa(ily li%es, with s)fficient (eans therefor.
Art. 1+97. 7f the period for ho)sehold ser%ice is fi'ed neither the head of the fa(ily nor the ho)se helper (ay
ter(inate the contract before the e'piration of the ter(, e'cept for a 4)st ca)se. 7f the ho)se helper is )n4)stly
dis(issed, he shall be paid the co(pensation already earned pl)s that for fifteen days by way of inde(nity. 7f the
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ho)se helper lea%es witho)t 4)stifiable reason, he shall forfeit any salary d)e hi( and )npaid, for not e'ceedin#
fifteen days.
Art. 1+9E. 7f the d)ration of the ho)sehold ser%ice is not deter(ined either by stip)lation or by the nat)re of the
ser%ice, the head of the fa(ily or the ho)se helper (ay #i%e notice to p)t an end to the ser%ice relation, accordin# to
the followin# r)lesC
A1= 7f the co(pensation is paid by the day, notice (ay be #i%en on any day that the ser%ice shall end at the
close of the followin# dayJ
A"= 7f the co(pensation is paid by the week, notice (ay be #i%en, at the latest on the first b)siness day of
the week, that the ser%ice shall be ter(inated at the end of the se%enth day fro( the be#innin# of the weekJ
A6= 7f the co(pensation is paid by the (onth, notice (ay be #i%en, at the latest, on the fifth day of the (onth,
that the ser%ice shall cease at the end of the (onth.
Art. 1+99. :pon the e'tin#)ish(ent of the ser%ice relation, the ho)se helper (ay de(and fro( the head of the fa(ily
a written state(ent on the nat)re and d)ration of the ser%ice and the efficiency and cond)ct of the ho)se helper.

d.o. no. to follow
E.
0.
;. E$PL+A$E*T +0 ST5DE*TS A*D W+RDI*; SCH+LAR
W"!=,n- S%&"1a! 2nde! +mn,b2s R21e
$o e(ployer-e(ployee relationship with school.
REP5BLIC ACT *+. 7>2>
AN ACT TO HELP POOR BUT DESERVING STUDENTS PURSUE THEIR EDUCATION BY
ENCOURAGING THEIR EMPLOYMENT DURING SUMMER ANDHOR CHRISTMAS VACATIONS,
THROUGH INCENTIVES GRANTED TO EMPLOYERS, ALLOWING THEM TO PAY ONLY SIQTY PER
CENTUM OF THEIR SALARIES OR WAGES AND THE FORTY PER CENTUM THROUGH EDUCATION
VOUCHERS TO BE PAID BY THE GOVERNMENT, PROHIBITING AND PENALIUING THE FILING OF
FRAUDULENT OR FICTITIOUS CLAIMS, AND FOR OTHER PURPOSES.
&ection 1. Any pro%ision of law to the contrary notwithstandin#, any person or entity e(ployin# at least fifty
A,>= persons (ay d)rin# the s)((er andBor Christ(as %acation e(ploy poor b)t deser%in# st)dents fifteen
A1,= years of a#e b)t not (ore than the (ini()( wa#e pro%ided by law and other applicable labor r)les and
re#)lations.
2or p)rposes of this Act, poor b)t deser%in# st)dents refer to those whose parentOs co(bined inco(es,
to#ether with their inco(e, if any, do not e'ceed Thirty si' tho)sand pesos AP6+,>>>= per ann)(.
5(ploy(ent sho)ld be at the Labor 5'chan#e Center of the Depart(ent of Labor and 5(ploy(ent AD1L5=.
&ec. ". &i'ty per cent)( A+>K= of said salary or wa#e shall be paid by the e(ployer in cash and forty per
cent)( A>K= by the Fo%ern(ent in the for( of a %o)cher which shall be applicable in the pay(ent for his
t)ition fees and books in any ed)cational instit)tion for secondary, tertiary, %ocational or technolo#ical
ed)cation. The a(o)nt of the ed)cation %o)cher shall be paid by the Fo%ern(ent to the ed)cational
instit)tion concerned within thirty A6>= days fro( its presentation to the officer or a#ency desi#nated by the
&ecretary of 2inance.
The %o)cher shall not be transferable e'cept when the payee thereof dies or for a 4)stifiable ca)se stops in
his d)ties in which case it can be transferred to his brothers or sisters. 7f there be none, the a(o)nt thereof
shall be paid his heirs or to the payee hi(self, as the case (ay be.
&ec. 6. The &ecretary of Labor and 5(ploy(ent, the &ecretary of 5d)cation, C)lt)re and &ports and the
&ecretary of 2inance shall iss)e the correspondin# r)les and re#)lations to carry o)t the p)rposes of this
Act.
The &ecretary of Labor and 5(ploy(ent shall be the Pro4ect Director of this pro#ra(.
&ec. . Any person or entity who shall (ake any fra)d)lent of fictitio)s clai( )nder this Act, re#ardless of
whether pay(ent has been (ade, shall )pon con%iction be p)nished with i(prison(ent of not less than si'
A+= (onths and not (ore than one A1= year and a fine of not less than Ten tho)sand pesos AP1>,>>>=,
witho)t pre4)dice to their prosec)tion and p)nish(ent for any other offenses p)nishable )nder the *e%ised
Penal Code or any other penal stat)te.
7n case of partnerships or corporations, the (ana#in# partner, #eneral (ana#er, or chief e'ec)ti%e officer,
as the case (ay be, shall be cri(inally liable.
&ec. ,. The a(o)nt necessary to carry o)t the p)rposes of this Act is hereby a)thori;ed to be appropriated
in the Feneral Appropriations Act for 199" and the s)bse<)ent ann)al #eneral appropriations acts.
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&ec. +. This Act shall take effect after its p)blication in the 1fficial Fa;ette or in at least two A"= national
newspapers of #eneral circ)lation.
A%%ro8"+- March 6>, 199"
W+RD APPRECIATI+* PR+;RA$ C A+5TH TRAI*EE
Asearch res)lt for 5.1. 169 is on forei#n in%est(entsJ additional info below not #i%en in the o)tline=
*5P:0L7C ACT $1. E7,9

A$ ACT 7$&T7T:T71$AL7G7$F A $AT71$AL 2AC7L7TAT71$ &5*/7C5 $5T31*I T.*1:F. T.5
5&TA0L7&.M5$T 12 A P:0L7C 5MPL1@M5$T &5*/7C5 1227C5 7$ 5/5*@ P*1/7$C5, I5@ C7T@
A$D 1T.5* &T*AT5F7C A*5A& T.*1:F.1:T T.5 C1:$T*@.
'''''''
&ec. +. O!"r S"r8#$"' of !" PESO. N 7n addition to the f)nctions en)(erated in the precedin# section,
e%ery P5&1 shall also )ndertake the followin# pro#ra(s and acti%itiesC
Aa= 9obs 2airs N These shall be cond)cted periodically all o%er the co)ntry to brin# to#ether in one %en)e
4ob seekers and e(ployers for i((ediate (atchin#J
Ab= Li%elihood and &elf-5(ploy(ent 0a;aars N These will #i%e clients infor(ation on the wide array of
li%elihood pro#ra(s they choose to a%ail of, partic)larly in the r)ral areasJ
Ac= &pecial Credit Assistance for Placed 1%erseas 3orkers N This type of assistance will enable poor b)t
<)alified applicants to a%ail of opport)nities for o%erseas e(ploy(entJ
Ad= &pecial Pro#ra( for 5(ploy(ent of &t)dents and 1)t-of-&chool @o)th A&P5&1&= N This pro#ra( shall
endea%or to pro%ide e(ploy(ent to deser%in# st)dents and o)t-of-school yo)th co(in# fro( poor fa(ilies
d)rin# s)((er andBor Christ(as %acations as pro%ided for )nder *ep)blic Act $o. 76"6 and its
i(ple(entin# r)les, to enable the( to p)rs)e their ed)cationJ
Ae= 3ork Appreciation Pro#ra( A3AP= N This pro#ra( ai(s to de%elop the %al)es of work appreciation and
ethics by e'posin# the yo)n# to act)al work sit)ationsJ
Af= 3orkers .irin# for 7nfrastr)ct)re Pro4ects A3.7P= N This pro#ra( is in p)rs)ance of *ep)blic Act $o.
++E, which re<)ires constr)ction co(panies, incl)din# the Depart(ent of P)blic 3orks and .i#hways and
contractors for #o%ern(ent-f)nded infrastr)ct)re pro4ects, to hire thirty percent A6>K= of skilled and fifty
percent A,>K= of )nskilled labor re<)ire(ents fro( the areas where the pro4ect is constr)ctedBlocatedJ and
A#= 1ther pro#ra(sBacti%ities de%eloped by D1L5 to enhance pro%ision of e(ploy(ent assistance to P5&1
clients, partic)larly for special #ro)ps of disad%anta#ed workers s)ch as persons with disabilities AP3Ds=
and displaced workers.
6S The Te%&n,%a1 Ed2%a/,"n and S=,11s De#e1"men/ A2/&"!,/y AT5&DA= was established thro)#h the
enact(ent of *ep)blic Act $o. 779+ otherwise known as the Technical 5d)cation and &kills De%elop(ent Act of
199. This Act ai(s to enco)ra#e the f)ll participation of and (obili;e the ind)stry, labo)r, local #o%ern(ent
)nits and technical-%ocational ed)cation and trainin# AT/5T= instit)tions in the skills de%elop(ent of the co)ntryOs
h)(an reso)rces. 1%erall, T5&DA for()lates (anpower and skills plans, sets appropriate skills standards and
tests, coordinates and (onitors (anpower policies and pro#ra(s, and pro%ides policy directions and #)idelines
for reso)rce allocation for the T/5T instit)tions in both the pri%ate and p)blic sectors.=

AN ACT CREATING THE TECHNICAL EDUCATION AND SEILLS DEVELOPMENT AUTHORITY,
PROVIDING FOR ITS POWERS, STRUCTURE AND FOR OTHER PURPOSES.
0e it enacted by the &enate and .o)se of *epresentati%es of the Philippines in Con#ress asse(bledC
&5CT71$ 1. T#*". - This Act shall be known as the TT"$!&#$(* E+,$(#o& (&+ S/#**' D"8"*o%m"& A$ of
G@@3T or the TTESDA A$ of G@@3T.
&5C. ". D"$*(r(#o& of Po*#$0. - 7 t is hereby declared the policy of the &tate to pro%ide rele%ant, accessible,
hi#h <)ality and efficient technical ed)cation and skills de%elop(ent in s)pport of the de%elop(ent of hi#h
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<)ality 2ilipino (iddle-le%el (anpower responsi%e to and in accordance with Philippine de%elop(ent #oals
and priorities.
The &tate shall enco)ra#e acti%e participation of %ario)s concerned sectors, partic)larly pri%ate
enterprises, bein# direct participants in and i((ediate beneficiaries of a trained and skilled workforce, in
pro%idin# technical ed)cation and skills de%elop(ent opport)nities.
&5C. 6. S("m"& of Go(*' (&+ O1A"$#8"'. - 7t is the #oal and ob4ecti%e of this Act toC
Pro(ote and stren#then the <)ality of technical ed)cation and skills de%elop(ent pro#ra(s to attain
international co(petiti%enessJ
2oc)s technical ed)cation and skills de%elop(ent on (eetin# the chan#in# de(ands for <)ality (iddle-
le%el (anpowerJ
5nco)ra#e critical and creati%e thinkin# by disse(inatin# the scientific and technical knowled#e base of
(iddle-le%el (anpower de%elop(ent pro#ra(sJ
*eco#ni;e and enco)ra#e the co(ple(entary roles of p)blic and pri%ate instit)tions in technical
ed)cation and skills de%elop(ent and trainin# syste(sJ and
7nc)lcate desirable %al)es thro)#h the de%elop(ent of (oral character with e(phasis on work ethic, self-
discipline, self-reliance and nationalis(.
&5C. . D"f#&##o& of T"rm'. - As )sed in this ActC
M&killM shall (ean the ac<)ired and practiced ability to carry o)t a task or 4obJ
M&kills De%elop(entM shall (ean the process thro)#h which learners and workers are syste(atically
pro%ided with learnin# opport)nities to ac<)ire or )p#rade, or both, their ability, knowled#e and beha%ior
pattern re<)ired as <)alifications for a 4ob or ran#e of 4obs in a #i%en occ)pational areaJ
MTechnical 5d)cationM shall refer to the ed)cation process desi#ned at post-secondary and lower tertiary
le%els, officially reco#ni;ed as non-de#ree pro#ra(s ai(ed at preparin# technicians, para-professionals and
other cate#ories of (iddle-le%el workers by pro%idin# the( with a broad ran#e of #eneral ed)cation,
theoretical, scientific and technolo#ical st)dies, and related 4ob skills trainin#J

MTradeM shall (ean any #ro)p of interrelated 4obs or any occ)pation which is traditionally or officially
reco#ni;ed as craft or artisan in nat)re re<)irin# specific <)alifications that can be ac<)ired thro)#h work
e'perience andBor trainin#J
PMiddle-Le%el ManpowerM refers to thoseC
1.who ha%e ac<)ired practical skills and knowled#e thro)#h for(al or non-for(al ed)cation and trainin#
e<)i%alent to at least a secondary ed)cation b)t preferably at post-secondary ed)cation with a
correspondin# de#ree of diplo(aJ or
".skilled workers who ha%e beco(e hi#hly co(petent in their trade or craft as attested by ind)stryJ

MPri%ate 5nterprisesM refers to an econo(ic syste( )nder which property of all kinds can be pri%ately
owned and in which indi%id)als, alone or in association with another, can e(bark on a b)siness acti%ity. This
incl)des ind)strial, a#ric)lt)ral, or a#ro-ind)strial establish(ents en#a#ed in the prod)ction, (an)fact)rin#,
processin#, repackin# or asse(bly of #oods incl)din# ser%ice-oriented enterprisesJ
MTrainersM shall (ean persons who direct the practice of skills towards i((ediate i(pro%e(ent in so(e
taskJ
MTrainorsBtrainersM shall (ean persons who pro%ide trainin# to trainers ai(ed at de%elopin# the latterOs
capacities for i(partin# attit)des, knowled#e, skills and beha%ior patters re<)ired for specific 4obs, tasks,
occ)pations or #ro)p of related occ)pations.
MTraineesM shall (ean persons who are participants in a %ocational, ad(inistrati%e or technical trainin#
pro#ra( for the p)rpose of ac<)irin# and de%elopin# 4ob-related skillsJ
MApprenticeshipM trainin# within e(ploy(ent with co(p)lsory related theoretical instr)ction in%ol%in# a
contract between an apprentice and an e(ployer on an appro%ed apprenticeable occ)pationJ

MApprenticeM is a person )nder#oin# trainin# for an appro%ed apprenticeable occ)pation d)rin# an
apprenticeship a#ree(entJ
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MApprenticeship A#ree(entM is a contract wherein a prospecti%e e(ployer binds hi(self to train the
apprentice who in t)rn accepts the ter(s of trainin# for a reco#ni;ed apprenticeable occ)pation e(phasi;in#
the ri#hts, d)ties and responsibilities of each partyJ
MApprenticeable 1cc)pationM is an occ)pation officially endorsed by a tripartite body and appro%ed for
apprenticeable by the A)thorityJ
MLearnersM refers to persons hired as trainees in se(i-skilled and other ind)strial occ)pations which are
non-apprenticeable. Learnership pro#ra(s ()st be appro%ed by the A)thorityJ

M:ser-LedM or MMarket-Dri%en &trate#yM refers to a strate#y which pro(otes stren#thened linka#es
between ed)cationalBtrainin# instit)tions and ind)stry to ens)re that appropriate skills and knowled#e are
pro%ided by the ed)cational syste(J
MD)al &yste(BTrainin#M refers to a deli%ery syste( of <)ality technical and %ocational ed)cation which
re<)ires trainin# to be carried o)t alternately in two %en)esC in-school and in the prod)ction plant. 7n- school
trainin# pro%ides the trainee the theoretical fo)ndation, basic trainin#, #)idance and h)(an for(ation, while
in-plant trainin# de%elops his skills and proficiency in act)al work conditions as it contin)es to inc)lcate
personal discipline and work %al)esJ
MLe%y Frant &yste(M refers to a le#al contrib)tion fro( participatin# e(ployers who wo)ld be
beneficiaries of the pro#ra( Aoften as a percenta#e of the payroll= which is s)bse<)ently t)rned o%er or
rebated to enterprises offerin# e(ployee trainin# pro#ra(s.
&5C. ,. T"$!&#$(* E+,$(#o& (&+ S/#**' D"8"*o%m"& A,!or#0B Cr"(#o&. - To i(ple(ent the policy
declared in this Act, there is hereby created a Technical 5d)cation and &kills De%elop(ent A)thority
AT5&DA=, hereinafter referred to as the A)thority, which shall replace and absorb the $ational Manpower
and @o)th Co)ncil A$M@C=, the 0)rea) of Technical and /ocational 5d)cation A0T/5= and the personnel
and f)nctions pertainin# to technical-%ocational ed)cation in the re#ional offices of the Depart(ent of
5d)cation, C)lt)re and &ports AD5C&= and the apprenticeship pro#ra( of the 0)rea) of Local 5(ploy(ent
of the Depart(ent of Labor and 5(ploy(ent.
&5C. +. Com%o'##o& of !" A,!or#0. - The A)thority shall be co(posed of the T5&DA 0oard and the
T5&DA &ecretariat.
&5C. 7. Com%o'##o& of !" TESDA Bo(r+. - The T5&DA 0oard shall be co(posed of the followin#C
The &ecretary of Labor and 5(ploy(ent
Chairperson
&ecretary of 5d)cation, C)lt)re and &ports
Co-Chairperson
&ecretary of Trade and 7nd)stry
Co-Chairperson
&ecretary of A#ric)lt)re Me(ber
&ecretary of 7nterior and Local Fo%ern(ent
Me(ber
Director-Feneral of the T5&DA &ecretariat
Me(ber
7n addition, the President of the Philippines shall appoint the followin# (e(bers fro( the pri%ate sectorC

two A"= representati%es, fro( the e(ployerBind)stry or#ani;ation, one of who( shall be a wo(anJ three A6=
representati%es, fro( the labor sector, one of who( shall be a wo(anJ and two A"= representati%es of the
national associations of pri%ate technical-%ocational ed)cation and trainin# instit)tions, one of who( shall be
a wo(en. As soon as all the (e(bers of the pri%ate sector are appointed, they shall so or#ani;ed
the(sel%es that the ter( of office of one-third A1B6= of their n)(ber shall e'pire e%ery year. The (e(ber
fro( the pri%ate sector appointed thereafter to fill %acancies ca)sed by e'piration of ter(s shall hold office
for three A6= years.
The President of the Philippines (ay, howe%er, re%ise the (e(bership of the T5&DA 0oard, whene%er the
President dee(s it necessary for the effecti%e perfor(ance of the 0oardOs f)nctions thro)#h an
ad(inistrati%e order.
The T5&DA 0oard shall (eet at least twice a year, or as fre<)ently as (ay be dee(ed necessary by
its Chairperson. 7n the absence of the Chairperson, a Co-Chairperson shall preside. 7n case any (e(ber of
the 0oard representin# the Fo%ern(ent cannot attend the (eetin#, he or she shall be re#)larly represented
by an )ndersecretary or dep)ty-director #eneral, as the case (ay be, to be desi#nated by s)ch (e(ber for
the p)rpose.
The benefits, pri%ile#es and e(ol)(ents of the 0oard shall be consistent with e'istin# laws and r)les.
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&5C. E. Po)"r' (&+ F,&$#o&' of !" Bo(r+. - The A)thority shall pri(arily be responsible for
for()latin#, contin)in#, coordinated and f)lly inte#rated technical ed)cation and skills de%elop(ent policies,
plans and pro#ra(s takin# into consideration the followin#C
The &tate policy declared herein of #i%in# new direction and thr)sts to efforts in de%elopin# the <)ality of
2ilipino h)(an reso)rce thro)#h technical ed)cation and skills de%elop(entJ

The i(ple(entation of the abo%e-(entioned policy re<)ires the coordination and operation of policies,
plans, and pro#ra(s of different concerned sectors of Philippine societyJ

5<)al participation of representati%es of ind)stry #ro)ps, trade associations, e(ployers, workers and
#o%ern(ent shall be (ade the r)le in order to ens)re that )r#ent needs and reco((endations are readily
addressedJ and
7(pro%ed linka#es between ind)stry, labor and #o%ern(ent shall be #i%en priority in the for()lation of any
national-le%el plan.
The 0oard, shall ha%e the followin# powersC
1. pro()l#ate, after d)e cons)ltation with ind)stry #ro)ps, trade associations, e(ployers, workers,
policies, plans, pro#ra(s and #)idelines as (ay be necessary for the effecti%e i(ple(entation of
this ActJ
". or#ani;e and constit)te %ario)s standin# co((ittees, s)bsidiary #ro)ps, or technical workin#
#ro)ps for efficient inte#ration, coordination and (onitorin# technical ed)cation and skills
de%elop(ent pro#ra(s at the national, re#ional, and local le%elsJ
6. enter into, (ake, e'ec)te, perfor( and carry-o)t do(estic and forei#n contracts s)b4ect to e'istin#
laws, r)les and re#)lations.
. restr)ct)re the entire s)b-sector consistin# of all instit)tions and pro#ra(s in%ol%ed in the pro(otion
and de%elop(ent of (iddle-le%el (anpower thro)#h )p#radin#, (er#er andBor phase-o)t followin#
a )ser-led strate#yJ
,. appro%e trade skills standards and trade tests as established and cond)cted by pri%ate ind)striesJ
+. establish and ad(inister a syste( of accreditation of both p)blic and pri%ate instit)tionsJ
7. establish, de%elop and s)pport instit)tionsO trainorsO trainin# andBor pro#ra(sJ
E. lend s)pport and enco)ra#e increasin# )tili;ation of the d)al trainin# syste( as pro%ided for by
*ep)blic Act. $o. 7+E+J
9. e'act reasonable fees and char#es for s)ch tests and trainin#s cond)cted and retain s)ch earnin#s
for its own )se, s)b4ect to #)idelines pro()l#ated by the A)thorityJ
1>. allocate reso)rces, based on the &ecretariatOs reco((endations for the pro#ra(s and s)b4ects it
shall )ndertake p)rs)ant to appro%ed $ational Technical 5d)cation and &kills De%elop(ent PlanJ
11. deter(ine and appro%e syste(atic f)ndin# sche(es s)ch as the Le%y and Frant sche(e for
technical ed)cation and skills de%elop(ent p)rposesJ
1". create, when dee(ed necessary, an Ad%isory Co((ittee which shall pro%ide e'pert and technical
ad%ice to the 0oard to be chosen fro( the acade(e and the pri%ate sectorC Pro%ided, That in case
the Ad%isory Co((ittee is created, the 0oard is hereby a)thori;ed to set aside a portion of its
appropriation for its operationJ and
16. perfor( s)ch other d)ties and f)nctions necessary to carry o)t the pro%isions of this Act consistent
with the p)rposes of the creation of T5&DA.
&5C. 9. Po)"r o R"8#") (&+ R"$omm"&+ A$#o&. - The A)thority shall re%iew and reco((end action to
concerned a)thorities on proposed technical assistance pro#ra(s and #rants-in-aid for technical ed)cation
or skills de%elop(ent, or both, incl)din# those which (ay be entered into between the Fo%ern(ent of the
Philippines and other nations, incl)din# international and forei#n or#ani;ations, both here and abroad.
&5C. 1>. T!" TESDA S"$r"(r#(. - There is hereby created a Technical 5d)cation and &kills
De%elop(ent A)thority &ecretariat which shall ha%e the followin# f)nctions and responsibilitiesC
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To establish and (aintain a plannin# process and for()late a national technical ed)cation and skills
de%elop(ent plan in which the (e(ber-a#encies and other concerned entities of the A)thority at %ario)s
le%els participateJ
To pro%ide analytical inp)ts to policy decision-(akin# of the A)thority on allocation of reso)rces and
instit)tional roles and responsibilities as shall be e(bodied in ann)al a#encies technical ed)cation and skills
de%elop(ent plans, in accordance with the (anpower plan for (iddle-le%el skilled worker as appro%ed by
the A)thorityJ
To reco((end (eas)res, and i(ple(ent the sa(e )pon appro%al by the A)thority, for the effecti%e and
efficient i(ple(entation of the national technical ed)cation and skills de%elop(ent planJ

To propose to the A)thority the specific allocation of reso)rces for the pro#ra(s and pro4ects it shall
)ndertake p)rs)ant to appro%ed national technical ed)cation and skills de%elop(ent planJ

To s)b(it to the A)thority periodic reports on the pro#ress and acco(plish(ent of work pro#ra(s of
i(ple(entation of plans and policies for technical ed)cation and skills de%elop(entJ

To prepare for appro%al by the A)thority an ann)al report to the President on technical ed)cation and
skills de%elop(entJ
To i(ple(ent and ad(inister the apprenticeship pro#ra( as pro%ided for in &ection 1E of his ActJ

To prepare and i(ple(ent )pon appro%al by the A)thority a pro#ra( for the trainin# of trainers,
s)per%isors, planners and (ana#ers as pro%ided for in &ection "6 of this ActJ

To enter into a#ree(ent to i(ple(ent appro%ed plans and pro#ra(s and perfor( acti%ities as shall
i(ple(ent the declared policy of this ActJ and to perfor( s)ch other f)nctions and d)ties as (ay be
assi#ned by the 0oard.
&5C. 11. D#r"$or4G"&"r(*. - The T5&DA &ecretariat shall be headed by a Director-Feneral, who shall
likewise be a (e(ber of the T5&DA 0oard. The Director-Feneral shall be appointed by the President of the
Philippines and shall en4oy the benefits, pri%ile#es and e(ol)(ents e<)i%alent to the rank of
:ndersecretary.
As Chief 5'ec)ti%e 1fficer of the T5&DA &ecretariat, the Director-Feneral shall e'ercise #eneral
s)per%ision and control o%er its technical and ad(inistrati%e personnel.
&5C. 1". D"%,0 D#r"$or'4G"&"r(*. - The Director-Feneral shall be assisted by two A"= Dep)ty Directors-
Feneral to be appointed by the President of the Philippines on reco((endation of the T5&DA 0oard. 1ne
to be responsible for /ocational and Technical 5d)cation and Trainin# and one to be responsible for
Policies and Plannin#.
The Dep)ty Directors-Feneral shall en4oy the benefits, pri%ile#es and e(ol)(ents e<)i%alent to the rank of
Assistant &ecretary.
&5C. 16. C!#"f of S"r8#$"' for A+m#&#'r(#o&. - The Director-Feneral shall also be assisted by a Chief of
&er%ices for Ad(inistration who shall be a Career Ci%il &er%ice 1fficial to be appointed by the T5&DA
0oard.
&5C. 1. Sr,$,r(* Or.(&#2(#o& (&+ P"r'o&&"*. 4 The T5&DA &ecretariat, in addition to the offices of the
Director-Feneral, Dep)ty Director-Feneral and Chief of &er%ices for Ad(inistration shall be
co(posed of the followin# offices to be headed by an 5'ec)ti%e Director to be appointed by the
Director-Feneral and shall ha%e the rank and e(ol)(ents of Director 7/.
Plannin# 1ffice AP1= - The Plannin# 1ffice shall be )nder the 1ffice of the Dep)ty Director-Feneral and
shall ha%e the followin# f)nctionsC
1. To desi#n and establish plannin# processes and (ethodolo#ies which will partic)larly enhance the
efficiency of reso)rce allocation decisions within the technical ed)cation and skills de%elop(ent sectorJ

". To lead in the preparation and periodic )pdatin# of a national plan for technical ed)cation and skills
de%elop(ent which shall beco(e the basis for reso)rce allocation decisions within the sectorJ

6. To cond)ct researchers, st)dies and de%elop infor(ation syste(s for effecti%e and efficient plannin#
and policy (akin# within the sectorJ
. To de%elop and i(ple(ent pro#ra(s and pro4ects ai(ed at b)ildin# )p plannin# capabilities of %ario)s
instit)tions within the sectorJ and
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,. To perfor( s)ch other powers and f)nctions as (ay be a)thori;ed by the A)thority.
&kills &tandards and Certification 1ffice A&&C1= - The &kills &tandards and Certification 1ffice shall be
)nder the office of the Dep)ty Director-Feneral and shall ha%e the followin# f)nctionsC

1. To de%elop and establish a national syste( of skills standardi;ation, testin# and certification in the
co)ntryJ
". To desi#n, inno%ate and adopt processes and (ethodolo#ies whereby ind)stry #ro)ps and workersO
#)ilds take note on pro#ressi%ely the responsibility of settin# skills standards for identified occ)pational
areas, and the local #o%ern(ent )nits acti%ely participate in pro(otin# skills standards, testin# and
certificationJ
6. To establish and i(ple(ent a syste( of accreditin# pri%ate enterprises, workersO associations and
#)ilds and p)blic instit)tions to ser%e as skills testin# %en)esJ
. To cond)ct research and de%elop(ent on %ario)s occ)pational areas in order to reco((end policies,
r)les and re#)lations for effecti%e and efficient skills standardi;ation, testin# and certification syste( in the
co)ntryJ and
,. To perfor( s)ch other d)ties and f)nctions as (ay be a)thori;ed.
$ational 7nstit)te for Technical /ocational and 5d)cation Trainin# A$7T/5T= - The $ational 7nstit)te
for Technical /ocational and 5d)cation Trainin# to be )nder the office of the Dep)ty Director-Feneral and
shall ha%e the followin# f)nctionsC
1. To ser%e as the research and de%elop(ent ar( of the #o%ern(ent in the field of the technical-
%ocational ed)cation and trainin#J
". To de%elop c)rric)la and pro#ra( standards for %ario)s technical-%ocational ed)cation and trainin#
areasJ
6. To de%elop and i(ple(ent an inte#rated pro#ra( for contin)in# de%elop(ent of trainors, teachers
and instr)ctors within the technical ed)cation and skills de%elop(ent sectorJ
. To de%elop pro#ra(s and pro4ect which will b)ild )p instit)tional capabilities within the sectorJ and
,. To perfor( s)ch other powers and f)nctions as (ay be a)thori;ed.
1ffice of 2or(al Technical /ocational 5d)cation and Trainin# A12T/5T= - The 1ffice of 2or(al
Technical /ocational 5d)cation and Trainin# to be )nder the office of the Dep)ty Director-Feneral and shall
ha%e the followin# f)nctionsC
1. To pro%ide policies, (eas)res and #)idelines for effecti%e and efficient
ad(inistration of for(al technical-%ocational ed)cation and trainin# pro#ra(s
i(ple(ented by %ario)s instit)tions in the co)ntryJ
". To establish and (aintain a syste( for accreditin#, coordinatin#, inte#ratin#,
(onitorin# and e%al)atin# the different for(al technical-%ocational ed)cation and
trainin# pro#ra(s %is-R-%is the appro%ed national technical ed)cation and skills
de%elop(ent planJ
6. To establish and (aintain a network of instit)tions en#a#ed in instit)tionali;ed
technical-%ocational ed)cation and trainin#, partic)larly with local #o%ern(ent )nitsJ
and
. To perfor( s)ch other d)ties and f)nctions as (ay be a)thori;ed.
1ffice of the $on-2or(al Technical-/ocational 5d)cation and Trainin# A1$2T/5T= - The 1ffice of
the $on-2or(al Technical-/ocational 5d)cation and Trainin# to be )nder the office of the Dep)ty Director-
Feneral and shall ha%e the followin# f)nctionsC
1. To pro%ide direction, policies and #)idelines for effecti%e i(ple(entation of non-for(al
co(()nity-based technical-%ocational ed)cation and trainin#J
". To accredit, coordinate, (onitor and e%al)ate %ario)s non-for(al technical-%ocational
ed)cation and trainin# pro#ra(s i(ple(ented by %ario)s instit)tions partic)larly, by
local #o%ern(ent )nitsJ
6. To establish and (aintain a network of instit)tions incl)din# local #o%ern(ent )nits,
non-#o%ern(ent or#ani;ations i(ple(entin# non-for(al, co(()nity-based technical-
%ocational ed)cation and trainin#J
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. To perfor( s)ch other powers and f)nctions as (ay be a)thori;ed.
+..,%e ". A!en/,%es&, 6+A7 - The 1ffice of Apprenticeship shall be )nder the office of
the Dep)ty Director-Feneral and shall ha%e the followin# f)nctionsC

1. To pro%ide direction, policies and #)idelines on the i(ple(entation of the apprenticeship
syste(J

". To accredit, coordinate, (onitor and e%al)ate all apprenticeship sche(es and pro#ra(
i(ple(ented by %ario)s instit)tions and enterprisesJ

6. To establish a network of instit)tions and enterprises cond)ctin# apprenticeship sche(es
and pro#ra(sJ

. To perfor( s)ch other powers and f)nctions as (ay be a)thori;ed.

*e#ional T5&DA 1ffices - The *e#ional T5&DA 1ffices shall be headed by *e#ional Directors
with the rank and e(ol)(ents of Director 7/ to be appointed by the President. The *e#ional
T5&DA 1ffices shall be )nder the direct control of the Director-Feneral and shall ha%e the followin#
f)nctionsC

1. To ser%e as &ecretariat to *e#ional Technical 5d)cation &kills De%elop(ent AT5&DA=
Co((itteeJ

". To pro%ide effecti%e s)per%ision, coordination and inte#ration of technical ed)cation and
skills de%elop(ent pro#ra(s, pro4ects and related acti%ities in their respecti%e 4)risdictionsJ

6. To de%elop and reco((end T5&DA pro#ra(s for re#ional and local-le%el i(ple(entation
within the policies set by the A)thority.

. To perfor( s)ch other d)ties and f)nctions as (ay be dee(ed necessary.
&5C. 1,. T!" Pro8#&$#(* TESDA Off#$"'. - The Pro%incial 1ffices shall be headed by &kill De%elop(ent
1fficers who shall ha%e the rank and e(ol)(ents of a Director 777.
The Pro%incial T5&DA 1ffices shall be )nder the direct control of the Director-Feneral and shall ha%e the
followin# f)nctionsC

1. To ser%e as &ecretariat to Pro%incial T5&DA Co((itteesJ

". To pro%ide technical assistance partic)larly to local #o%ern(ent )nits for effecti%e s)per%isions,
coordination, inte#ration and (onitorin# of technical-%ocational ed)cation and trainin# pro#ra(s within their
localitiesJ

6. To re%iew and reco((end T5&DA Pro#ra(s for i(ple(entation within their localitiesJ and

. To perfor( s)ch other d)ties and f)nctions as (ay be a)thori;ed. 2)rther(ore, the T5&DA &ecretariat
(aybe f)rther co(posed by s)ch offices as (ay be dee(ed necessary by the A)thority. The Director-
Feneral shall appoint s)ch personnel necessary to carry o)t the ob4ecti%es, policies and f)nctions of the
A)thority s)b4ect to ci%il ser%ice laws, r)les and re#)lations.
&5C. 1+. Com%*#(&$" )#! !" S(*(r#"' S(&+(r+#2(#o& L(). - The co(pensation and e(ol)(ents of the
officials and e(ployees of the A)thority shall be in accordance with the salary standardi;ation law and other
applicable laws )nder the national co(pensation and classification plan.
&5C. 17. Co&',*(&' (&+ T"$!&#$(* A''#'(&$", P,1*#$(#o& (&+ R"'"(r$!. - 7n p)rs)in# its ob4ecti%es, the
A)thority is hereby a)thori;ed to set aside a portion of its appropriation for the hirin# of ser%ices of <)alified
cons)ltants, and pri%ate or#ani;ations for research work and p)blication in the field of technical ed)cation
and skills de%elop(ent. 7t shall a%ail itself of the ser%ices of other a#encies of the Fo%ern(ent as (ay be
re<)ired.
&5C. 1E. Tr(&'f"r of !" A%%r"&#$"'!#% Pro.r(m. - The Apprenticeship Pro#ra( of the 0)rea) of Local
5(ploy(ent of the Depart(ent of Labor and 5(ploy(ent shall be transferred to the A)thority which shall
i(ple(ent and ad(inister said pro#ra( in accordance with e'istin# laws, r)les and re#)lations.
&5C. 19. T"$!&#$(* E+,$(#o& (&+ S/#**' D"8"*o%m"& Comm#""'. - The A)thority shall establish
Technical 5d)cation and &kills De%elop(ent Co((ittees at the re#ional and local le%els to coordinate and
(onitor the deli%ery of all skills de%elop(ent acti%ities by the p)blic and pri%ate sectors. These co((ittees
shall likewise ser%e as the Technical 5d)cation and &kills De%elop(ent Co((ittees of the *e#ional and
local de%elop(ent co)ncils. The co(positions of the Technical 5d)cation and &kills de%elop(ent
Co((ittees shall be deter(ined by the Director-Feneral s)b4ect to the #)idelines to be
pro()l#ated by the A)thority.
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&5C. ">. S/#**' D"8"*o%m"& C"&"r'. - The A)thority shall stren#then the network of national, re#ional and
local skills trainin# centers for the p)rpose of pro(otin# skills de%elop(ent. This network shall incl)de skills
trainin# centers in %ocational and technical schools, technical instit)tes, polytechnic colle#es, and all other
d)ly accredited p)blic and pri%ate d)al syste( ed)cational instit)tions. The technical ed)cation and skills
de%elop(ent centers shall be ad(inistered and operated )nder s)ch r)les and re#)lations as (ay be
established by the A)thority in accordance with the $ational Technical 5d)cation and &kills De%elop(ent
Plan.
&5C. "1. Form,*(#o& of ( Com%r"!"&'#8" D"8"*o%m"& P*(& for M#++*"4L"8"* M(&%o)"r. - The A)thority
shall for()late a co(prehensi%e de%elop(ent plan for (iddle-le%el (anpower based on a national
e(ploy(ent plan or policies for the opti()( allocation, de%elop(ent and )tili;ation of skilled workers for
e(ploy(ent entreprene)rship and technolo#y de%elop(ent for econo(ic and social #rowth. This plan shall
after adoption by the A)thority be )pdated periodically and s)b(itted to the President of the Philippines for
appro%al. Thereafter, it shall be the plan for the technical ed)cation and skills de%elop(ent for the entire
co)ntry within the fra(ework of the $ational De%elop(ent Plan. The A)thority shall direct the T5&DA
&ecretariat to call on its (e(ber-a#encies, the pri%ate sector and the acade(e to assist in this effort. The
co(prehensi%e plan shall pro%ide for a refor(ed ind)stry-based trainin# pro#ra( incl)din# apprenticeship,
d)al trainin# syste( and other si(ilar sche(es intended toC
Pro(ote (a'i()( protection and welfare of the worker-traineeJ

7(pro%e the <)ality and rele%ance and social acco)ntability of technical ed)cation and skills de%elop(entJ

Accelerate the e(ploy(ent-#eneration effort of the #o%ern(entJ and

5'pand the ran#e of opport)nities for )pward social (obility of the school-#oin# pop)lation beyond the
traditional hi#her le%els of for(al ed)cation. All #o%ern(ent and non-#o%ern(ent a#encies recei%in#
financial and technical assistance fro( the #o%ern(ent shall be re<)ired to for()late their respecti%e ann)al
a#ency technical ed)cation and skills de%elop(ent plan in line with the national technical ed)cation and
skills de%elop(ent plan. The b)d#et to s)pport s)ch plans shall be s)b4ect to re%iew and endorse(ent by
the A)thority to the Depart(ent of 0)d#et and Mana#e(ent. The A)thority shall e%al)ate the efficiency and
effecti%eness of a#encies skills de%elop(ent pro#ra( and sche(es to (ake the( confor( with the
<)antitati%e and <)alitati%e ob4ecti%es of the national technical ed)cation and skills de%elop(ent plan.
&5C. "". E'(1*#'!m"& (&+ A+m#&#'r(#o& of N(#o&(* Tr(+" S/#**' S(&+(r+'. - There shall be national
occ)pational skills standards to be established by T5&DA-accredited ind)stry co((ittees. The A)thority
shall de%elop and i(ple(ent a certification and accreditation pro#ra( in which pri%ate ind)stry #ro)ps
and trade associations are accredited to cond)ct appro%ed trade tests, and the local #o%ern(ent )nits to
pro(ote s)ch trade testin# acti%ities in their respecti%e areas in accordance with the #)idelines to be set by
the A)thority. The &ecretary of Labor and 5(ploy(ent shall deter(ine the occ)pational trades for
(andatory certification. All certificates relatin# to the national trade skills testin# and certification syste(
shall be iss)ed by the A)thority thro)#h the T5&DA &ecretariat.
&5C. "6. A+m#&#'r(#o& of Tr(#&#&. Pro.r(m'. - The A)thority shall desi#n and ad(inister trainin#
pro#ra(s and sche(es the will de%elop the capabilities of p)blic and pri%ate instit)tions to pro%ide <)ality
and cost-effecti%e technical ed)cation and skills de%elop(ent and related opport)nities. &)ch trainin#
pro#ra(s and sche(es shall incl)de teacherOs trainorsO trainin#, skills trainin# for entreprene)r de%elop(ent
and technolo#y de%elop(ent, cost-effecti%e trainin# in occ)pational trades and related fields of
e(ploy(ent, and %al)e de%elop(ent as an inte#ral co(ponent of all skills trainin# pro#ra(s.
&5C. ". A''#'(&$" o Em%*o0"r' (&+ Or.(&#2(#o&'. - The A)thority shall assist any e(ployer or
or#ani;ation en#a#ed in skills trainin# sche(es desi#ned to attain its ob4ecti%es )nder r)les and re#)lations
which the A)thority shall establish for this p)rpose.
&5C. ",. Coor+#&(#o& of A** S/#**' Tr(#&#&. S$!"m"'. - 7n order to inte#rate the national skills de%elop(ent
efforts, all technical ed)cation and skills trainin# sche(es as pro%ided for in this Act shall be coordinated
with the A)thority partic)larly those ha%in# to do with the settin# of trade skills standards. 2or this p)rpose,
e'istin# technical ed)cation and skills trainin# pro#ra(s in the Fo%ern(ent and in the pri%ate sector,
specifically those wholly or partly financed with #o%ern(ent f)nds, shall be reported to the A)thority which
shall assess and e%al)ate s)ch pro#ra(s to ens)re their efficiency and effecti%eness.
&5C. "+. I&+,'r0 Bo(r+'. - The A)thority shall establish effecti%e and efficient instit)tional
arran#e(ents with ind)stry boards and s)ch other bodies or associations to pro%ide direct participation of
e(ployers and workers in the desi#n and i(ple(entation of skills de%elop(ent sche(es, trade skills
standardi;ation and certification and s)ch other f)nctions in the f)lfill(ent of the A)thorityOs ob4ecti%es.
&5C. "7. I&$"&#8"' S$!"m"'. 4 The A)thority shall de%elop and ad(inister appropriate incenti%e
sche(es to enco)ra#e #o%ern(ent and pri%ate ind)stries and instit)tions to pro%ide hi#h-<)ality technical
ed)cation and skills de%elop(ent opport)nities.
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&5C. "E. S/#**' D"8"*o%m"& O%%or,&##"'. - The A)thority shall desi#n and i(ple(ent an effecti%e and
efficient deli%ery syste( for <)ality technical ed)cation and skills de%elop(ent opport)nities partic)larly in
disad%anta#ed sectors, with new tools of wealth creation and with the capability to take on hi#her %al)e-
added #ainf)l acti%ities and to share e<)itably in prod)cti%ity #ains.
&5C. "9. D"8o*,#o& of TESDAJ' Tr(#&#&. F,&$#o& o Lo$(* Go8"r&m"&'. - 7n establishin# the deli%ery
syste( pro%ided for in the precedin# &ection, the A)thority shall for()late, i(ple(ent and finance a
specific plan to de%elop the capability of local #o%ern(ent )nits to ass)(e )lti(ately the responsibility for
effecti%ely pro%idin# co(()nity-based technical ed)cation and skills de%elop(ent opport)nitiesC Pro%ided,
howe%er, That there shall be for()lated and i(ple(ented, an effecti%e and ti(ely retrainin# of T5&DA
personnel that wo)ld be affected by the de%ol)tion to ens)re their bein# retained if the concerned local
#o%ern(ent )nits wo)ld not be able to absorb the(.
&5C. 6>. S/#**' O*0m%#$'. - To pro(ote <)ality skills de%elop(ent in the co)ntry and with the %iew of
participatin# in international skills co(petitions, the A)thority, with the acti%e participation of pri%ate
ind)stries, shall or#ani;e and cond)ct ann)al $ational &kills 1ly(pics. The A)thority, thro)#h the
T5&DA &ecretariat, shall pro()l#ate the necessary r)les and #)idelines for the effecti%e and efficient
cond)ct of Ann)al $ational &kills 1ly(pics and for the co)ntryOs participation in internationals skills
oly(pics.
&5C. 61. T!" TESDA D"8"*o%m"& F,&+. - A T5&DA De%elop(ent 2)nd is hereby established, to be
(ana#edBad(inistered by the A)thority, the inco(e fro( which shall be )tili;ed e'cl)si%ely in awardin# of
#rants and pro%idin# assistance to trainin# instit)tions, ind)stries, local #o%ern(ent )nits for )p#radin# their
capabilities and to de%elop and i(ple(ent trainin# and trainin#-related acti%ities. The contrib)tion to the f)nd
shall be the followin#C
A one-ti(e l)(p s)( appropriation fro( the $ational Fo%ern(entJ
An ann)al contrib)tion fro( the 1%erseas 3orkers 3elfare Ad(inistration 2)nd, the a(o)nt of which
sho)ld be part of the st)dy on financin# in con4)nction with letter AD= of &ection 6J

Donations, #rants, endow(ents, and other be<)ests or #ifts, and any other inco(e #enerated by the
A)thority.

The T5&DA 0oard shall be the ad(inistrator of the f)nd, and as s)ch, shall for()late the necessary
i(ple(entin# #)idelines for the (ana#e(ent of the f)nd, s)b4ect to the followin#C

a= )nless otherwise stip)lated by the pri%ate donor, only earnin#s of pri%ate contrib)tions shall be
)sedJ and b= no part of the seed capital of the f)nd, incl)din# earnin#s, thereof, shall be )sed to )nderwrite
e'penses for ad(inistration.

The 0oard shall appoint a rep)table #o%ern(ent-accredited in%est(ent instit)tions as f)nd (ana#er,
s)b4ect to #)idelines pro()l#ated by the 0oard.

&5C 6". S$!o*(r'!#% Gr(&'. - The a)thority shall adopt a syste( of allocation and f)ndin# of
scholarship #rants which shall be responsi%e to the technical ed)cation and skills de%elop(ent needs of the
different re#ions in the co)ntry.
&5C 66. TESDA B,+.". - The a(o)nt necessary to finance the initial i(ple(entation of this Act shall be
char#ed a#ainst the e'istin# appropriations of the $M@C and the 0T/5. Thereafter, s)ch f)nds as (ay be
necessary for the contin)ed i(ple(entation of this Act shall be incl)ded in the ann)al Feneral
Appropriations Act.
&5C 6. Tr(&'#or0 Pro8#'#o&'. - a= 3ithin two A"= (onths after the appro%al of this Act, the President shall,
in cons)ltation with the &ecretary of Labor and 5(ploy(ent and the &ecretary of 5d)cation, C)lt)re and
&ports, appoint the pri%ate sector representati%es of the T5&DA 0oard.
3ithin A6= (onths after the appoint(ent of the pri%ate sector representati%es, the President shall, )pon
the reco((endation of the 0oard, appoint the Feneral-Director.

3ithin A= (onths after the appoint(ent of the Director Feneral, the 0oard shall con%ene to deter(ine
the or#ani;ational str)ct)re and staffin# pattern of the A)thority.

3ithin A1= year after the or#ani;ation of the A)thority, the 0oard shall co((ission an e'pert #ro)p on
f)ndin# sche(es for the T5&DA De%elop(ent 2)nd, as pro%ided in &ection 61, the res)lts of which shall be
)sed as the basis for appropriate action by the 0oard.

The personnel of the e'istin# $ational Manpower and @o)th Co)ncil A$M@C= of the Depart(ent of Labor
and 5(ploy(ent and the 0)rea) of Technical and /ocational 5d)cation A0T/5= of the Depart(ent of
5d)cation, C)lt)re and &ports, shall, in a holdo%er capacity, contin)e to perfor( their respecti%e d)ties and
responsibilities and recei%e their correspondin# salaries and benefits )ntil s)ch ti(e when the or#ani;ational
str)ct)re and staffin# pattern of the A)thority shall ha%e been appro%ed by the 0oardC Pro%ide, That the
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preparation and appro%al of the said new or#ani;ational str)ct)re and staffin# pattern shall, as far as
practicable, respect and ens)re the sec)rity of ten)re and seniority ri#hts affected #o%ern(ent e(ployees.
Those personnel whose positions are not incl)ded in the new staffin# pattern appro%ed by the 0oard or who
are not reappointed or who choose to be separated as a res)lt of the reor#ani;ation shall be paid their
separation or retire(ent benefits )nder e'istin# laws.
&5C 6,. A,om(#$ r"8#"). - 5%ery fi%e A,= years, after the affecti%ity of this Act, an independent re%iew
panel co(posed of three A6= persons appointed by the President shall re%iew the perfor(ance of the
a)thority and shall (ake reco((endations, based on its findin#s to the President shall re%iew the
perfor(ance of the A)thority and shall (ake the reco((endations, based on the findin#s to the President
and to both .o)ses of Con#ress.
&5C. 6+. Im%*"m"&#&. R,*"' (&+ G,#+"*#&"'. - The T5&DA board shall iss)e, within a period of ninety A9>=
days after the affecti%ity of this Act, the r)les and re#)lations for the effecti%e i(ple(entation of this Act. The
T5&DA 0oard shall s)b(it tot he co((ittees on 5d)cation, Arts and C)lt)re of both .o)ses of Con#ress
copies of the i(ple(entin# r)les and #)idelines within A6>= days after its pro()l#ation. Any %iolation of this
&ection shall render the officialBs concerned liable )nder *. A. $o. +716, otherwise knownas the MCode of
Cond)ct and 5thical &tandards for P)blic 1fficials and 5(ployeesM and other e'istin# ad(inistrati%e andBor
cri(inal laws.
&5C. 67. R"%"(*#&. C*(,'". - All laws, presidential decrees, e'ec)ti%e orders, presidential procla(ations,
r)les and re#)lations or part thereof contrary to or inconsistent with this Act are hereby repealed or (odified
accordin#ly.
&5C. 6E. S"%(r(1#*#0 C*(,'". - 7f any pro%ision of this Act is declared )nconstit)tional, the sa(e shall not
affect the %alidity and effecti%ity of the other pro%isions hereof.
&5C. 69. Eff"$#8#0. - This Act shall take effect fifteen A1,= days after its co(plete p)blication in two
A"=newspapers of #eneral circ)lation.
REP5BLIC ACT *+. 76)6
A2ebr)ary ",, 199=

DUAL TRAINING SYSTEM ACT OF G@@3

AN ACT TO STRENGTHEN MANPOWER EDUCATION AND TRAINING IN THE PHILIPPINES BY
INSTITUTIONALIUING THE DUAL TRAINING SYSTEM AS AN INSTRUCTIONAL DELIVERY SYSTEM OF
TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING, PROVIDING THE MECHANISM,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.

&ection 1. S!or #*". This Act shall be known as the TD,(* Tr(#&#&. S0'"m A$ of G@@3T.
&ection ". D"$*(r(#o& of %o*#$0. 7t is hereby declared the policy of the &tate to stren#then (anpower
ed)cation and trainin# in the co)ntry so that the latter (ay be ass)red of an e%er-#rowin# s)pply of an
ed)cated and skilled (anpower e<)ipped with appropriate skills and desirable work habits and attit)des.
The d)al trainin# syste(, as s)ccessf)lly tested in so(e hi#hly de%eloped co)ntries, shall be adopted in
d)ly accredited %ocational and technical schools, in cooperation with accredited a#ric)lt)ral, ind)strial and
b)siness establish(ents, as one of the preferred (eans of creatin# a dependable pool of well-trained
operators, crafts(en and technicians for the econo(y.
&ection 6. O1A"$#8"'. This Act shall ha%e the followin# ob4ecti%esC
Aa= enco)ra#e increasin# )tili;ation of the d)al syste( in technical and %ocational ed)cation and trainin# by
both p)blic and pri%ate schools within the conte't of the e'istin# ed)cation syste(J

Ab= enco)ra#e increasin# le%els of in%est(ent in technical and %ocational ed)cation and trainin# by both
p)blic and pri%ate sectors specially in the r)ral areasJ

Ac= enhance the e(ployability and prod)cti%ity of #rad)ates by e<)ippin# the( with analytical and creati%e
thinkin# and proble(-sol%in# abilitiesJ (anip)lati%e co(petencies which (eet occ)pational standards and
re<)ire(entsJ %al)es and attit)des with e(phasis on work ethics, <)ality orientation, discipline, honesty,
self-reliance and patriotis(J and

Ad= stren#then trainin# cooperation between a#ric)lt)ral, ind)strial and b)siness establish(ents and
ed)cational instit)tions by desi#nin# and i(ple(entin# rele%ant trainin# pro#ra((es in close coordination
with concerned local #o%ern(ent )nits.
&ection . D"f#&##o& of "rm'. 2or p)rposes of this Act, the followin# ter(s shall (eanC
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Aa= TA%%ro%r#(" (,!or#0T refers to the #o%ern(ent entity in char#e of for(al technical and %ocational
ed)cation trainin#J

Ab= TD,(* r(#&#&. '0'"mT refers to an instr)ctional deli%ery syste( of technical and %ocational ed)cation
and trainin# that co(bines in-plant trainin# and in-school trainin# based on a trainin# plan collaborati%ely
desi#ned and i(ple(ented by an accredited d)al syste( ed)cational instit)tionBtrainin# centre and
accredited d)al syste( a#ric)lt)ral, ind)strial and b)siness establish(ents with prior notice and ad%ice to
the local #o%ern(ent )nit concerned. :nder this syste(, said establish(ents and the ed)cational instit)tion
share the responsibility of pro%idin# the trainee with the best possible 4ob <)alifications, the for(er
essentially thro)#h practical trainin# and the latter by sec)rin# an ade<)ate le%el of specific, #eneral and
occ)pation-related theoretical instr)ction. The word T+,(*T refers to the two parties pro%idin# instr)ctionC the
concept T'0'"mT (eans that the two instr)ctin# parties do not operate independently of one another, b)t
rather coordinate their effortsJ

Ac= TTr(#&""T refers to a person <)alified to )nder#o the d)al trainin# syste( for the p)rpose of ac<)irin# and
de%elopin# 4ob <)alificationsJ

Ad= TA$$r"+#"+ +,(* r(#&#&. '0'"m "+,$(#o&(* #&'#,#o&Hr(#&#&. $"&r"T refers to a p)blic or pri%ate
instit)tion d)ly reco#ni;ed and a)thori;ed by the appropriate a)thority, in coordination with b)siness and
ind)stry, to participate in the d)al trainin# syste(J

Ae= TE'(1*#'!m"&'T refer to enterprises andBor ser%ices of a#ric)lt)ral, ind)strial or b)siness
establish(entsJ

Af= TA$$r"+#"+ +,(* r(#&#&. '0'"m (.r#$,*,r(*, #&+,'r#(* (&+ 1,'#&"'' "'(1*#'!m"&'T hereinafter referred
to as a#ric)lt)ral, ind)strial and b)siness establish(ents, refer to a sole proprietorship, partnership,
corporation or cooperati%e which is d)ly reco#ni;ed and a)thori;ed by the appropriate a)thority to
participate in the d)al trainin# syste( ed)cational instit)tion.
&ection ,. I&'#,#o&(*#2(#o& of !" +,(* r(#&#&. '0'"m. The d)al trainin# syste(, hereinafter referred to
as the syste(, is hereby instit)tionali;ed in the Philippines in accordance with the pro%isions of this Act.
&ection +. Co8"r(.". This Act shall apply to all p)blic and pri%ate ed)cational instit)tionsBtrainin# centres
and a#ric)lt)ral, ind)strial and b)siness establish(ents d)ly accredited to participate in the d)al trainin#
syste(.
&ection 7. P*(&&#&. (&+ $oor+#&(#o&. The appropriate a)thority shall plan, set standards, coordinate,
(onitor and allocate reso)rces in s)pport of the i(ple(entation of the syste(.
5%ery accredited ed)cational instit)tionBtrainin# centre shall establish an ind)strial coordinatin# office which
shall s)per%ise the in-plant trainin#C %ro8#+"+ !( the ind)strial establish(ent shall be re<)ired to f)rnish the
ed)cational instit)tion with the necessary infor(ation for the p)rpose of s)per%ision.
The ind)strial coordinatin# office shall be headed by an ind)strial coordinator with at least an officer-le%el
rank. The ind)strial coordinator (ay be assisted by s)ch other personnel as (ay be necessary for the
effecti%e dischar#e of the f)nctions of the office.
&ection E. S(,' of r(#&"". 2or the d)ration of the trainin# )nder the syste(, the trainee is to be
considered not an e(ployee of the b)sinessBind)strial establish(ent b)t rather a trainee of both the
accredited d)al trainin# syste( ed)cational instit)tion and the a#ric)lt)ral, ind)strial and b)siness
establish(entsC %ro8#+"+ !( the )nion or the workers of the latter ha%e been d)ly infor(ed in ad%ance of
s)ch an a#ree(ent.
A trainee who has s)ccessf)lly co(pleted a trainin# pro#ra((e in a partic)lar a#ric)lt)ral, ind)strial or
b)siness establish(ent shall be #i%en priority of e(ploy(ent in that a#ric)lt)ral, ind)strial or b)siness
establish(ent. The appropriate a)thority shall keep a roll of these s)ccessf)l trainees for p)rposes of
identifyin# the( for e(ploy(ent.
&ection 9. I&$"&#8"' for %(r#$#%(#&. "'(1*#'!m"&'. To enco)ra#e a#ric)lt)ral, ind)strial and b)siness
establish(ents to participate in the syste(, they shall be allowed to ded)ct fro( their ta'able inco(e the
a(o)nt of fifty A,>= per cent of the syste( e'penses paid to the accredited d)al trainin# syste( ed)cational
instit)tion for the establish(entOs traineesC %ro8#+"+ !( s)ch e'penses shall not e'ceed fi%e A,= per cent of
their total direct labo)r e'penses b)t in no case to e'ceed twenty-fi%e (illion pesos AP",,>>>,>>>= a year.
Donations for the operation of the syste( shall be ded)ctible fro( the ta'able inco(e of the donors.
The Depart(ent of 2inance shall iss)e the necessary r)les and re#)lations for the p)rpose of ta' incenti%es
pro%ided herein.
&ection 1>. O1*#.(#o&' of ($$r"+#"+ (.r#$,*,r(*, #&+,'r#(* (&+ 1,'#&"'' "'(1*#'!m"&'. The a#ric)lt)ral,
ind)strial and b)siness establish(ents shallC
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Aa= ens)re that the necessary abilities and knowled#e for the trainee to achie%e the p)rpose of his trainin#
are i(parted to hi( and shall pro%ide s)ch trainin# syste(atically in accordance with an appro%ed trainin#
planJ

Ab= appoint the trainin# officer to i(ple(ent the trainin# planJ

Ac= (ake a%ailable, free of char#e, the cons)(able (aterials and basic hand tools and e<)ip(ent necessary
for his trainin#J

Ad= allow the trainee to attend his in-school trainin# and to sit for his e'a(inationsJ

Ae= re<)ire the trainee to keep his report book )p to date and inspect s)ch booksJ

Af= ens)re that the trainee is enco)ra#ed to de%elop his personality and that he is protected fro( physical or
(oral dan#erJ

A#= entr)st to the trainee s)ch 4obs as are related to the p)rpose of his trainin# and are co((ens)rate with
his capabilitiesJ

Ah= pay to the accredited ed)cational instit)tionBtrainin# centre the daily allowance of the traineeJ and

Ai= allow the trainee the necessary ti(e off for his in-school trainin#.
&ection 11. O1*#.(#o&' of !" r(#&"". A trainee shall e'ert e%ery effort to ac<)ire the abilities and
knowled#e necessary for hi( to achie%e the p)rpose of his trainin#. Towards this end, he shallC
Aa= caref)lly perfor( the 4obs entr)sted to hi( as part of his trainin#J

Ab= take part in trainin# pro#ra((es for which he has been #ranted ti(e off )nder this ActJ

Ac= follow the instr)ction #i%en to hi( as part of his trainin# by the trainin# officer or any other person entitled
to #i%e hi( s)ch instr)ctionsJ

Ad= obser%e r)les of beha%io)r in the trainin# pre(isesJ

Ae= )se tools, instr)(ents, (achines and other e<)ip(ent with d)e careJ

Af= not re%eal any b)siness or trade secrets that ha%e co(e to his knowled#e in the co)rse of his trainin#J
and

A#= keep his record books )p to date.
&ection 1". O1*#.(#o&' of !" ($$r"+#"+ "+,$(#o&(* #&'#,#o&'Hr(#&#&. $"&r"'. The ed)cational
instit)tionsBtrainin# centres that ha%e entered into a (e(orand)( of a#ree(ent with a#ric)lt)ral, ind)strial
or b)siness establish(ents to )ndertake trainin# shallC
Aa= desi#n, i(ple(ent and e%al)ate 4ointly the trainin# plan with the accredited establish(entsJ

Ab= pro%ide specific, #eneral and occ)pation-related theoretical instr)ctionJ

Ac= appoint ind)strial coordinators to s)per%ise the in-plant trainin#J

Ad= pay the trainee his daily allowanceJ and

Ae= perfor( s)ch other tasks and acti%ities as (ay be necessary and in f)rtherance of the ob4ecti%es of the
trainin#.
&ection 16. No&4+#m#&,#o& of #&$"&#8"'. $othin# in this Act shall be constr)ed to di(inish or red)ce any
pri%ile#e already en4oyed by the parties concerned )nder e'istin# laws, decrees or e'ec)ti%e orders.
&ection 1. S#.&#&. of m"mor(&+,m of (.r""m"&' 10 !" ($$r"+#"+ +,(* r(#&#&. '0'"m (.r#$,*,r(*,
#&+,'r#(* (&+ 1,'#&"'' "'(1*#'!m"&', !" ($$r"+#"+ +,(* r(#&#&. '0'"m, "+,$(#o&(* #&'#,#o&Hr(#&#&.
$"&r" (&+ !" r(#&"". 0efore an indi%id)al establish(ent be#ins with an accredited ed)cation
instit)tionBtrainin# centre and the trainee or his representati%e, the indi%id)al establish(ent shall pro%ide the
accredited ed)cational instit)tionBtrainin# centre and the trainee with a copy of the si#ned a#ree(ent.
The (e(orand)( of a#ree(ent shall set forth, a(on# others, the followin#C
Aa= the trainin# planJ

Ab= the nat)re and ob4ecti%e of the trainin#J

Ac= the co((ence(ent and d)ration of the trainin# period, incl)din# the total n)(ber of in-school and in-
plant trainin# ho)rsJ

Ad= the nor(al daily trainin# ho)rsJ

Ae= the traineeOs allowance and the rate to be applied, which in no case shall start below se%enty-fi%e A7,=
per cent of the applicable (ini()( daily wa#e for days spent in the establish(entsJ
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BATCH 2008 (Rm.228)

Af= the ri#hts and obli#ations of the parties concerned in addition to those pro%ided in &ections 1>, 11 and 1"J

A#= the definition of the stat)s of the trainee accordin# to &ection E of this ActJ

Ah= the conditions for the ter(ination of the trainin# a#ree(entJ

Ai= the perfor(ance, (onitorin# and e%al)ation syste(J and

A4= s)ch other essential partic)lars as wo)ld ()t)ally benefit all parties concerned.
&ection 1,. I&',r(&$" $o8"r(." of !" r(#&"". 5%ery a#ric)lt)ral, ind)strial and b)siness establish(ent
)ndertakin# trainin#, in accordance with the pro%isions of this Act, shall si#n a life andBor accident ins)rance
policy on the life of the trainee with the ins)red and the spo)se, children or parents of the trainee as the
beneficiaries thereofC %ro8#+"+ !( the a#ric)lt)ral, ind)strial and b)siness establish(ents shall pay for the
pre(i)(s of said ins)rance policy.
&ection 1+. R"8o*8#&. f,&+. Any law, r)le or re#)lation to the contrary notwithstandin#, the accredited d)al
trainin# syste( ed)cational instit)tionBtrainin# centre is hereby a)thori;ed to retain as a re%ol%in# f)nd the
a(o)nt paid to it by the a#ric)lt)ral, ind)strial and b)siness establish(ents representin# the act)al d)al
trainin# e'penses. The f)nd shall be )sed to i(pro%e the operation of the d)al trainin# syste(.
&ection 17. Im%*"m"&#&. r,*"'. The appropriate a)thority and the Depart(ent of 2inance, )pon prior
cons)ltation with the b)siness and ind)stry concerned, shall iss)e the necessary r)les and re#)lations for
the effecti%e i(ple(entation of this Act within a period of ninety A9>= days after its effecti%ity. Any %iolation of
this section shall render the concerned officials liable )nder *.A. $o. +716, otherwise known as the TCo+" of
Co&+,$ (&+ E!#$(* S(&+(r+' for P,1*#$ Off#$#(*' (&+ Em%*o0""'T and other e'istin# ad(inistrati%e andBor
cri(inal laws.
&ection 1E. O!"r "9"m%#o& from (9"' (&+ +,#"'. Any donation, contrib)tion, be<)est, s)bsidy or
financial aid which (ay be (ade for the operation of the syste( shall constit)te an allowable ded)ction fro(
the inco(e of the donors for inco(e ta' p)rposes and shall be e'e(pt fro( donorOs ta', s)b4ect to s)ch
conditions as pro%ided )nder the $ational 7nternal *e%en)e Code, as a(ended. 5ssential e<)ip(ent,
apparat)s and (aterials i(ported by accredited d)al trainin# pri%ate ed)cational instit)tions shall be e'e(pt
fro( ta'es and d)tiesC %ro8#+"+ !( the i(portation of these ite(s shall be s)b4ect to the followin#
<)alificationsC
Aa= that the i(portation shall be certified by the appropriate a)thorityJ

Ab= that they sho)ld be act)ally, directly and e'cl)si%ely )sed in connection with the d)al trainin# syste( and
any )na)thori;ed )se shall s)b4ect the accredited d)al trainin# pri%ate ed)cational instit)tions to pay(ent of
ta'es and d)ties thereonJ and

Ac= that they are not a%ailable locally in s)fficient <)antity of co(parable <)ality, and at reasonable pricesC
Pro8#+"+, !o)"8"r, !( ta'es and d)ties pertainin# to the i(portations of accredited #o%ern(ent and d)al
trainin# ed)cational instit)tions are dee(ed a)to(atically appropriated.
The Depart(ent of 2inance shall acc)()late the necessary r)les and re#)lations to i(ple(ent the
pro%isions of this section.
&ection 19. A%%ro%r#(#o&'. 2or the initial i(ple(entation of this Act, an a(o)nt of one (illion pesos
AP1,>>>,>>>= shall be char#ed a#ainst the c)rrent yearOs appropriation of the contin#ency f)nd. Thereafter,
s)ch s)(s as (ay be necessary for its contin)ed i(ple(entation shall be incl)ded in the ann)al Feneral
Appropriations Act.
&ection ">. S"%(r(1#*#0 $*(,'". 7f for any reason any pro%ision of this Act is declared in%alid or
)nconstit)tional, the rest shall not be affected thereby.
&ection "1. R"%"(*#&. $*(,'". All laws, decrees, orders, r)les and re#)lations or parts thereof inconsistent
with this Act are hereby repealed or (odified accordin#ly.
&ection "". Eff"$#8#0. This Act shall take effect after co(pletion of its p)blication in the Off#$#(* G(2"" or
in two A"= newspapers of #eneral circ)lation.
T&,s ,s /&e sea!%& !es21/ ."! E.+ 1>(
272T. *5F:LA* 21*57F$ 7$/5&TM5$T $5FAT7/5 L7&T
W5'ec)ti%e 1rder $o. 169 dated 1ctober "", ">>"X
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WHEREAS, *ep)blic Act A* .A.= $o. 7>", also known as the 2orei#n 7n%est(ents Act of 1991, as
a(ended by *. A. E179, pro%ides for the for()lation of a *e#)lar 2orei#n 7n%est(ent $e#ati%e List co%erin#
in%est(ent areasB acti%ities which (ay be opened to forei#n in%estors andBor reser%ed to 2ilipino nationalsJ
WHEREAS, the *e#)lar 2orei#n 7n%est(ent $e#ati%e List consistin# of Lists A and 0, is effecti%e for
two years p)rs)ant to &ection 0 of *. A. 7>" as a(ended and its 7(ple(entin# *)les and *e#)lationsJ
WHEREAS, there is a need to for()late a 2ifth *e#)lar 2orei#n 7n%est(ent $e#ati%e List to reflect
chan#es to Lists A and 0 pro%ided in new laws and reco((ended by concerned #o%ern(ent a#enciesJ
NOW, THEREFORE, 7, FL1*7A MACAPAFAL A**1@1, President of the *ep)blic of the Philippines,
by %irt)e of the powers %ested in (e by Law, do hereby orderC
&ection 1. 1nly the in%est(ent areas andBor acti%ities listed in Anne' A hereof shall be reser%ed to
Philippine nationals, and hereafter shall be referred to as the 2ifth *e#)lar 2orei#n 7n%est(ent $e#ati%e List.
The e'tent of forei#n e<)ity participation in these areas shall be li(ited to the percenta#es indicated in the
List.
&ec. ". Any a(end(ent to List A (ay be (ade at any ti(e to reflect chan#es instit)ted in specific laws
while a(end(ents to List 0 shall not be (ade (ore often than once e%ery two years, p)rs)ant to &ection E,
*. A. 7>" as a(ended, and its 7(ple(entin# *)les and *e#)lations.
&ec. 6. All orders, iss)ances, r)les and re#)lations or parts thereof, which are inconsistent with this
1rder are hereby re%oked or (odified accordin#ly.
&ec. . This order shall take effect fifteen A1,= days after p)blication.
Done in the City of Manila, this ""nd day of 1ctober, in the year of o)r Lord, Two Tho)sand and Two.
H. E$PL+A$E*T +0 ACADE$IC C *+*?ACADE$IC PERS+**EL I* PRI:ATE ED5CATI+*AL I*STIT5TI+*
1((2 $an2a1 ". Re-21a/,"ns ."! P!,#a/e Sa%&""1sE a%adem,% Q n"n?a%adem,% e!s"nne1
D+LE $em"!and2m C,!%21a! 2?)(' Se!,es ". 1()( 6C"m2/a/,"n ". $,n,m2m Wa-e ."! P!,#a/e S%&""1
Tea%&e!s
7. M5D7CAL, D5$TAL A$D 1CC:PAT71$AL &A25T@
A*T. 1,+. FIRST4AID TREATMENT
5%ery e(ployer shall keep in his establish(ent s)ch first-aid (edicines, and e<)ip(ent as the nat)re and
conditions of work (ay re<)ire, in accordance with s)ch re#)lations as the Depart(ent of Labor shall prescribe.
The e(ployer shall take steps for the trainin# of a s)fficient n)(ber of e(ployees in first-aid treat(ent.
Definitions A7**, 0k 7/, *)le 1, &ec. "=
2irst-aid treat(ent - (eans ade<)ate, i((ediate and necessary (edical and dental attention or
re(edy #i%en in case of in4)ry or s)dden illness s)ffered by a worker d)rin# e(ploy(ent, irrespecti%e of
whether or not s)ch in4)ry or illness is work-connected, before (ore e'tensi%e (edical andBor dental
treat(ent can be sec)red.
7t does not incl)de contin)ed treat(ent or follow-)p treat(ent for any in4)ry or illness.
P3orkplaceQ ! (eans the office, pre(ises or worksite where the workers are habit)ally e(ployed and
shall incl)de the office or place where the workers who ha%e no fi'ed or definite worksite re#)larly
report for assi#n(ent in the co)rse of their e(ploy(ent.
P2irst-AiderQ - (eans any person trained and d)ly certified as <)alified to ad(inister first aid by the
Philippine $ational *ed Cross or by any other or#ani;ation accredited by the for(er.
H)alification of a 2irst-aiderC
M)st be able to read and write and ()st ha%e co(pleted a co)rse in first-aid d)ly certified
by the $ational *ed Cross or any other or#ani;ation accredited by the sa(e. A&ec. + Aa=, 0k 7/,
*)le 1, 7**=
A*T. 1,7. EMERGENCY MEDICAL AND DENTAL SERVICES
7t shall be the d)ty of e%ery e(ployer to f)rnish his e(ployees in any locality with free (edical and dental
attendance and facilities consistin# ofC
Aa.= The ser%ices of a f)ll-ti(e re#istered n)rse when the n)(ber of e(ployees e'ceeds fifty A,>= b)t not
(ore than two h)ndred A">>= 5DC5PT when the e(ployer 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 the workers,
where no re#istered n)rse is a%ailable. The &ecretary of Labor shall pro%ide by appropriate
re#)lations the ser%ices that shall be re<)ired where the n)(ber of e(ployees does not e'ceed fifty
A,>= and shall deter(ine by appropriate order ha;ardo)s workplaces for p)rposes of this Article.
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Ab.= The ser%ices of a f)ll-ti(e re#istered n)rse, a part-ti(e physician and dentist, and an e(er#ency
clinic, when the n)(ber of e(ployees e'ceeds two h)ndred A">>= b)t not (ore than three h)ndred
A6>>=J and
Ac.= The ser%ices of a f)ll-ti(e physician, dentist and a f)ll-ti(e re#istered n)rse as well as a dental clinic,
and an infir(ary or e(er#ency hospital with one bed capacity for e%ery one h)ndred A1>>= e(ployees
when the n)(ber of e(ployees e'ceeds three h)ndred A6>>=.
7n cases of ha;ardo)s work-places, no e(ployer shall en#a#e the ser%ices of a physician or dentist who
cannot stay in the pre(ises of the establish(ent for at least two A"= ho)rs, in the case of those en#a#ed on part-ti(e
basis, and not less than ei#ht AE= ho)rs in the case of those e(ployed on f)ll-ti(e basis. 3here the )ndertakin# is
non-ha;ardo)s in nat)re, the physician and dentist (ay be en#a#ed on retained basis, s)b4ect to s)ch re#)lations as
the &ecretary of Labor (ay prescribe to ins)re i((ediate a%ailability of (edical and dental treat(ent and attendance
in case of e(er#ency.
$o. of
5(ployees
$at)re of :ndertakin# *e<)ire(ent
1.= 2ro( 1> to
,>
- a #rad)ate first-aider who (ay be one of the workers in the
workplace and who has i((ediate access to the first-aid (edicines in
the workplace A*)le 1, &ec. Aa=, 0k 7/, 7**=
".= More than ,>
b)t not (ore
than ">>
\ .a;ardo)s
\ $on-ha;ardo)s
- 2)ll-ti(e re#istered n)rse

- Frad)ate first-aider, if no re#istered n)rse a%ailable
6.= More than
">> b)t not
(ore than
6>>
\ .a;ardo)s and $on-
ha;ardo)s
a. 2)ll-ti(e re#istered n)rse
b. Part-ti(e physician and part-ti(e dentist.
DH(2(r+o,' )or/%*($"-sho)ld stay in the pre(ises for at least two
A"= ho)rs.
DNo&4!(2(r+o,' )or/%*($" a physician and dentist (ay be
en#a#ed on retained basis s)b4ect to re#)lations by the &1L5.
AArt. 1,7, LC=
\Additional re<)ire(ents )nder the 7(ple(entin# *)les for
Wor/%*($"' )#! mor" !(& o&" )or/'!#f ( +(0-
- The physician and dentist shall be at the workplace d)rin#
the workshift which has the bi##est n)(ber of workers and shall be
s)b4ect to call at anyti(e d)rin# the other workshifts to attend to
e(er#ency cases.
- A f)ll-ti(e first-aider ()st be pro%ided for each workshift.
A&ec. , Ad= ? Ae=, 0k 7/, *)le 1, 7**=
c. An e(er#ency clinic
.=More than
6>>
\ .a;ardo)s and $on-
ha;ardo)s
a. 2)ll-ti(e physician and f)ll-ti(e dentist
DH(2(r+o,' )or/%*($" a 2)ll-ti(e physician and f)ll-ti(e dentist
sho)ld stay in the pre(ises for at least ei#ht AE= ho)rs.
DNo&4!(2(r+o,' )or/%*($" a physician and dentist (ay be
en#a#ed on retained basis s)b4ect to re#)lations by the
&1L5. AArt. 1,7, LC=
a e(ployer (ay en#a#e the ser%ices of a part-ti(e
physician and a part-ti(e dentist who shall ha%e the sa(e
responsibilities as those pro%ided )nder n)(ber 6 Ab= abo%e.
A&ec. Ad=, *)le 7, 0k 7/, 7**=
\Additional re<)ire(ents )nder the 7(ple(entin# *)les for
Wor/%*($"' )#! mor" !(& o&" )or/'!#f ( +(0-
- The physician and dentist shall be at the workplace d)rin#
the workshift which has the bi##est n)(ber of workers and shall be
s)b4ect to call at anyti(e d)rin# the other workshifts to attend to
e(er#ency cases.
- A f)ll-ti(e first-aider ()st be pro%ided for each workshift.
A&ec. , Ad= ? Ae=, 0k 7/, *)le 1, 7**=
b. 2)ll-ti(e re#istered n)rse
c. Dental Clinic
d. 7nfir(ary or e(er#ency hospital with one bed capacity for e%ery 1>>
e(ployees.E9$"%#o&' 6IRR, S"$. <, B/ IV, R,*" G.7-
I& Ur1(& Ar"(- where there is a hospital or dental clinic which is not
(ore than fi%e A,= kilo(eters away fro( the workplace.
I& R,r(* Ar"(- where a hospital or dental clinic can be reached by
(otor %ehicle in twenty-fi%e A",= (in)tes.
7n both cases, the e(ployer sho)ld ha%e readily a%ailable facilities
for transportin# a worker to the hospital or clinic in case of e(er#ency.
Pro8#+"+, f,r!"r, that the e(ployer shall enter into a written contract
with the hospital or dental clinic for the )se thereof in the treat(ent of
workers in case of e(er#ency
D HAUARDOUS WOREPLACES A&ec. E, 0k 7/, *)le 1, 7**=
7n addition to the followin#, the 0)rea) of Labor &tandards shall, with the appro%al of the &ecretary
of Labor, iss)e fro( ti(e to ti(e a detailed list of ha;ardo)s workplaces for p)rposes of this *)leC
Page 219 of 267
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a. 3here the nat)re of the work e'poses the workers to dan#ero)s en%iron(ental ele(ents, conta(inants
in work conditions incl)din# ioni;in# radiations, che(icals, fire, fla((able s)bstances, no'io)s co(ponents and
the like.
b. 3here the workers are en#a#ed in constr)ction work, lo##in#, firefi#htin#, (inin#, <)arryin#, blastin#,
ste%edorin#, dock work, deep-sea fishin# and (echanical far(in#.
c. 3here the workers are en#a#ed in the (an)fact)re or handlin# of e'plosi%es and other pyrotechnic
prod)cts.
d. 3here the workers )se or are e'posed to hea%y or power-dri%en (achinery or e<)ip(ent.
e. 3here workers )se or are e'posed to power-dri%en tools.
A*T. 1,E. WHEN EMERGENCY HOSPITAL NOT REPUIRED
The re<)ire(ent for an e(er#ency hospital or dental clinic shall not be applicable in case there is a hospital
or dental clinic which is accessible fro( the e(ployers establish(ent and he (akes arran#e(ent for the reser%ation
therein of the necessary beds and dental facilities for the )se of his e(ployees.
:nder 7**, &ec. ,, 0k 7/, *)le 1.C
7n :rban AreaC where there is a hospital or dental clinic which is not (ore than fi%e A,= kilo(eters away fro( the
workplace.
7n *)ral AreaC where a hospital or dental clinic can be reached by (otor %ehicle in twenty-fi%e A",= (in)tes.
7n both cases, the e(ployer sho)ld ha%e readily a%ailable facilities for transportin# a worker to the hospital or clinic
in case of e(er#ency.
A*T. 1,9. HEALTH PROGRAM
The physician en#a#ed by an e(ployer 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(ployees of his e(ployer.
A*T. 1+>. PUALIFICATIONS OF HEALTH PERSONNEL
The physicians, dentists and n)rses e(ployed by e(ployers p)rs)ant to this Chapter shall ha%e the
necessary trainin# in ind)strial (edicine and occ)pational safety and health. The &ecretary of Labor, in cons)ltation
with ind)strial, (edical and occ)pational safety and health associations, shall establish the <)alifications, criteria and
conditions of e(ploy(ent of s)ch health personnel.
&ee &ec. +, 0I 7/, *)le 1, 7**. Trainin# and <)alifications of (edical and dental personnel.
5MPL1@558& C1MP5$&AT71$ ACT
A*T. 1++ ALC=. P1L7C@.
The &tate shall pro(ote and de%elop a ta'-e'e(pt e(ployee8s co(pensation pro#ra( whereby e(ployees
and their dependents, in the e%ent of work-connected diability or death, (ay pro(ptly sec)re ade<)ate inco(e
benefit, and (edical or related benefits.
P 3ork(en8s Co(pensationQ- is a #eneral and co(prehensi%e ter( applied to those laws pro%idin# for co(pensation
for loss res)ltin# fro( the in4)ry, disable(ent, or death of work(en thro)#h ind)strial accident, cas)alty, or disease.
AA;)cena, p.6,6=.
P Co(pensation,Q )nder the work(en8s co(pensation stat)te, (eans the (oney relief afforded accordin# to the scale
established )nder the stat)te, as differentiated fro( Pco(pensatory da(a#esQ reco%erable in an action at law for
breach of contract or for a tort.AA;)cena, p. 6,6=.
5CC *:L5&, *)le 7. C1/5*AF5
&ec. 1. $at)re. ! Co%era#e shall be co(p)lsory.
&ec. ". &cope -
Aa.= 5%ery e(ployer shall be co%ered.
Ab.= 5%ery e(ployee not o%er +> years of a#e shall be co%ered.
Ac.= An e(ployee who is co%erable by both the F&7& and &&& shall be co(p)lsorily co%ered by
both &yste(s.
A*T. 1+7 Ak=, ALC=. P7n4)ryQ (eans any har(f)l chan#e in the h)(an or#anis( fro( any accident arisin# o)t of and
in the co)rse of e(ploy(ent.

:nder 0k 7/, *)le 777, &ec. 1 Aa=, 7(ple(entin# *)les
Aa.= 2or the in4)ry and the res)ltin# disability or death to be co(pensable, the in4)ry ()st be the res)lt of an
e(ploy(ent accident satisfyin# all of the followin# #ro)ndsC
1. The e(ployee ()st ha%e been in4)red at the place where his work re<)ires hi( to beJ
". The e(ployee ()st ha%e been perfor(in# his official f)nctionsJ and
6. 7f the in4)ry is s)stained elsewhere, the e(ployee ()st ha%e been e'ec)tin# an order for the e(ployer.
L7A07L7T@ 12 &TAT5 7$&:*A$C5 2:$D
A*T. 17" ALC=. L7M7TAT71$& 12 L7A07L7T@
The &tate 7ns)rance 2)nd shall be liable for co(pensation to the e(ployee or his dependents, 5DC5PT
when the diability or death was occasioned by the e(ployee8s
a. into'ication
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b. willf)l intention to in4)re or kill hi(self or another,
c. notorio)s ne#li#ence, or otherwise pro%ided )nder this Title.
-P7nto'ication or Dr)nkennessQ )nder this Article consists in bein# )nder the infl)ence of into'icatin# li<)or to the
e'tent that one is not entirely hi(self or so that his 4)d#(ent is i(paired and his act, words, or cond)ct is %isibly
i(paired.
-P&elf-inflicted 7n4)riesQ ()st be #&"&#o&(**0 self-inflicted, that is, there ()st be a deliberate intent on the part of the
e(ployee, not a fail)re on his part to reali;e the probable conse<)ences to hi(self of his foolish act.
- P$otorio)s $e#li#enceQ is so(ethin# (ore than si(ple contrib)tory ne#li#ence. 7t si#nifies a deliberate act of the
e(ployee to disre#ard his own personal safety.
A*T. 176 ALC=. 5DT5$T 12 L7A07L7T@.
:nless otherwise pro%ided, the liability of the &tate 7ns)rance 2)nd )nder this Title shall be
e'cl)si%e and in place of all other liabilities of the e(ployer to the e(ployee, his dependents or anyone otherwise
entitled to recei%e da(a#es on behalf of the e(ployee or his dependents. The pay(ent of co(pensation )nder this
Title shall not bar the reco%ery of benefits as pro%ided for in &ection +99 of the *e%ised Ad(inistrati%e Code, *A $o.
11+1, as a(ended, Co((onwealth Act $o. 1E+, as a(ended, *ep)blic Act $o. +1>, as a(ended, and other laws
whose benefits are ad(inistered by the &yste(, or by other a#encies of the #o%ern(ent.
*:L5 AFA7$&T D1:0L5 *5C1/5*@C
1PT71$& A/A7LA0L5C 0enefits )nder the Co(pensation Law 1* :nder the Ci%il Code.
W @s(ael Mariti(e Corporation %s. A%elino, F.*. $o. 6+7, 9)ne 6>, 19E7 X
.5LDC The action is selecti%e and the e(ployee or his heirs ha%e a choice of a%ailin# the(sel%es of the
benefits )nder the 3CA or of s)in# in the re#)lar co)rts )nder the Ci%il Code for hi#her da(a#es fro( the e(ployer
by reason of his ne#li#ence. 0:T once the election has been e'ercised, the e(ployee or his heirs are no lon#er free
to opt for the other re(edy, i.e., THE EMPLOYEE CANNOT PURSUE BOTH ACTIONS SIMULTANEOUSLY.
Th)s, the e(ployee8s parents cannot be allowed to (aintain their present action to reco%er additional
da(a#es )nder the Ci%il Code. They had pre%io)sly filed and had recei%ed the co(pensation payable to the( )nder
the 3CA. They not only opted to reco%er )nder this Act b)t had also been d)ly paid. A '"&'" of f(#r %*(0 +"m(&+'
!( #f ( %"r'o& "&#*"+ o ( $!o#$" of r"m"+#"' m(+" ( f#r' '"*"$#o& (&+ ($$"%"+ !" 1"&"f#' !"r"of, !" '!o,*+ &o
*o&."r 1" (**o)"+ o "9"r$#'" !" '"$o&+ o%#o&.

C7/7L L7A07L7T@ 12 5MPL1@5*&
A*T. 1711 A$CC=. 1wners of enterprises and other e(ployers are obli#ed to pay co(pensation for the death of or
in4)ries to their laborers, work(en, (echanics or other e(ployees e%en tho)#h the e%ent (ay ha%e been p)rely
accidental or entirely d)e to a fort)ito)s ca)se, if the death or personal in4)ry arose o)t of and in the co)rse of the
e(ploy(ent. The e(ployer is also liable for co(pensation if the e(ployee contracts any illness or disease ca)sed
by s)ch e(ploy(ent or as the res)lt of the nat)re of the e(ploy(ent. 7f the (ishap was d)e to the e(ployee8s own
notorio)s ne#li#ence, or %ol)ntary act, or dr)nkenness, the e(ployer shall not be liable for co(pensation. 3hen the
e(ployee8s lack of d)e care contrib)ted to his death or in4)ry, the co(pensation shall be e<)itably red)ced.
A*T. 171" A$CC=. 7f the death or in4)ry is d)e to the ne#li#ence of a fellow-worker, the latterand the e(ployer shall
be solidarily liable for co(pensation. 7f a fellow-worker8s intentional or (alicio)s act is the only ca)se of the death or
in4)ry, the e(ployer shall not be answerable, )nless it sho)ld be shown that the latter did not e'ercise d)e dili#ence
in the selection or s)per%ision of the plaintiff8s fellow-worker.

\ *:L5& *e 5(ployer8s Liability for Death or Personal 7n4)ries of 5(ployees
a. 5(ployer L7A0L5 - if the ca)se of death or personal in4)ry arose o)t of and in the co)rse of
5(ploy(ent, "8"& #f !" "8"& )(' %,r"*0 ($$#+"&(* or for,#o,'.
b. 5(ployer $1T L7A0L5 ! if the ca)se of death or personal in4)ry was d)e to the "m%*o0""M'
o)& &oor#o,' &".*#."&$", or 8o*,&(r0 ($ or +r,&/"&&"''.
%. Co(pensation 5H:7TA0L@ *5D:C5D ! if the ca)se was %(r*0 +," to the e(ployee8s
lack of d)e care.
d. 5(ployer &1L7DA*7L@ L7A0L5 with #)ilty fellow worker ! if the ca)se was d)e to the
&".*#."&$" of ( f"**o) )or/"r
e. 5(ployer L7A0L5 - if the ca)se was d)e to the #&"&#o&(* or m(*#$#o,' ($ of ( f"**o)
)or/"r, UNLESS the e(ployer can pro%e that he e'ercised d)e dili#ence in selectin# and
s)per%isin# said fellow worker, in which case, only said fellow worker will be held liable.
*A 7E7, $ational .ealth 7ns)rance Act of 199,
The Phil. .ealth 7ns)rance Corporation AP.7C= created )nder this law took o%er the assets
and f)nctions of the Philippine Medical Care Co((ission AArt. ">9, LC= which therefore rendered
the latter inoperati%e.
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$AT71$AL .5ALT. 7$&:*A$C5 ACT 12 199,

W*5P:0L7C ACT $1. 7E7,X

A$ ACT 7$&T7T:T7$F A $AT71$AL .5ALT. 7$&:*A$C5 P*1F*AM
21* ALL 27L7P7$1& A$D 5&TA0L7&.7$F T.5 P.7L7PP7$5 .5ALT. 7$&:*A$C5 C1*P1*AT71$ 21* T.5
P:*P1&5.

&5CT71$ 1. S!or T#*". - This Act shall be known as the TN(#o&(* H"(*! I&',r(&$" A$ of G@@<.T

A*T7CL5 7
F:7D7$F P*7$C7PL5&
&5CT71$ ". D"$*(r(#o& of Pr#&$#%*"' (&+ Po*#$#"'. 4 &ection 11, Article D777 of the 19E7 Constit)tion of the *ep)blic
of the Philippines declares that the &tate shall adopt an inte#rated and co(prehensi%e approach to health
de%elop(ent which shall endea%or to (ake essential #oods, health and other social ser%ices a%ailable to all the
people at affordable cost. Priority for the needs of the )nderpri%ile#ed, sick, elderly, disabled, wo(en, and children
shall be reco#ni;ed. Likewise, it shall be the policy of the &tate to pro%ide free (edical care to pa)pers.
7n the p)rs)it of a $ational .ealth 7ns)rance Pro#ra(, this Act shall adopt the followin# #)idin# principlesC
a= A**o$(#o& of N(#o&(* R"'o,r$"' for H"(*! - The Pro#ra( shall )nderscore the i(portance for #o%ern(ent to #i%e
priority to health as a strate#y for brin#in# abo)t faster econo(ic de%elop(ent and i(pro%in# <)ality of lifeJ
b= U&#8"r'(*#0 - The Pro#ra( shall pro%ide all citi;ens with the (echanis( to #ain financial access to health ser%ices,
in co(bination with other #o%ern(ent health pro#ra(s. The $ational .ealth 7ns)rance Pro#ra( shall #i%e the hi#hest
priority to achie%in# co%era#e of the entire pop)lation with at least a basic (ini()( packa#e of health ins)rance
benefitsJ
c= E5,#0 - The Pro#ra( shall pro%ide for )nifor( basic benefits. Access to care ()st be a f)nction of a person8s
health needs rather than his ability to payJ
d= R"'%o&'#8"&"'' - The Pro#ra( shall ade<)ately (eet the needs for personal health ser%ices at %ario)s sta#es of
a (e(ber8s lifeJ
e= So$#(* So*#+(r#0 - The Pro#ra( shall be #)ided by co(()nity spirit. 7t ()st enhance risk-sharin# a(on# inco(e
#ro)ps, a#e #ro)ps, and persons of differin# health stat)s, and residin# in different #eo#raphic areasJ
f= Eff"$#8"&"'' - The Pro#ra( shall balance econo(ical )se of reso)rces with <)ality of careJ
#= I&&o8(#o& - The Pro#ra( shall adopt to chan#es in (edical technolo#y, health ser%ice or#ani;ations, health care
pro%ider pay(ents syste(s, scopes of professional practice, and other trends in the health sector. 7t ()st be
co#ni;ant of the appropriate roles and respecti%e stren#ths of the p)blic and pri%ate sectors in health care, incl)din#
people8s or#ani;ations and co(()nity-based health care or#ani;ationsJ
h= D"8o*,#o& - The Pro#ra( shall be i(ple(ented in cons)ltation with the local #o%ern(ent )nits ALF:s=, s)b4ect to
the o%er-all policy directions set by the $ational Fo%ern(entJ
i= F#+,$#(r0 R"'%o&'#1#*#0 - The Pro#ra( shall pro%ide effecti%e stewardship, f)nds (ana#e(ent, and (aintenance
of reser%esJ
4= I&form"+ C!o#$" - The Pro#ra( shall enco)ra#e (e(bers to choose fro( a(on# accredited health care pro%iders.
The Corporation8s local offices shall ob4ecti%ely apprise its (e(bers of the f)ll ran#e of pro%iders in%ol%ed in the
Pro#ra( and of the ser%ices and pri%ile#es to which they are entitled as (e(bers. This e'planation, which the
(e(ber (ay )se as a #)ide in selectin# the appropriate and (ost s)itable pro%ider, shall be #i%en in clear and
si(ple 2ilipino and in the local lan#)a#e that is co(prehensible to the (e(bersJ
k= M(9#m,m Comm,&#0 P(r#$#%(#o& - The Pro#ra( shall b)ild on e'istin# co(()nity initiati%es for its or#ani;ation
and h)(an reso)rce re<)ire(ents.
l= Com%,*'or0 Co8"r(." - All citi;ens of the Philippines shall be re<)ired to enroll in the $ational .ealth 7ns)rance
Pro#ra( in order to a%oid ad%erse selection and social ine<)ityJ
(= Co' S!(r#&. - The Pro#ra( shall contin)o)sly e%al)ate its cost-sharin# sched)le to ens)re that the costs borne
by the (e(bers are fair and e<)itable and that the char#es by health care pro%iders are reasonableJ
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n= Prof"''#o&(* R"'%o&'#1#*#0 of H"(*! C(r" Pro8#+"r' - The Pro#ra( shall ass)re that all participatin# health care
pro%iders are responsible and acco)ntable in all their dealin#s with the Corporation and its (e(bersJ
o= P,1*#$ H"(*! S"r8#$"' - The Fo%ern(ent shall be responsible for pro%idin# p)blic health ser%ices for all #ro)ps
s)ch as wo(en, children, indi#eno)s people, displaced co(()nities in en%iron(entally endan#ered areas, while the
Pro#ra( shall foc)s on the pro%ision of personal health ser%ices. Pre%enti%e and pro(oti%e p)blic health ser%ices are
essential for red)cin# the need and spendin# for personal health ser%icesJ
p= P,(*#0 of S"r8#$"' - The Pro#ra( shall pro(ote the i(pro%e(ent in the <)ality of health ser%ices pro%ided thro)#h
the instit)tionali;ation of pro#ra(s of <)ality ass)rance at all le%els of the health ser%ice deli%ery syste(. The
satisfaction of the co(()nity, as well as indi%id)al beneficiaries, shall be a deter(inant of the <)ality of ser%ice
deli%eryJ
<= Co' Co&(#&m"& - The Pro#ra( shall incorporate feat)res of cost contain(ent in its desi#n and operations and
pro%ide a %iable (eans of helpin# the people pay for health care ser%icesJ and
r= C(r" for !" I&+#."& - The #o%ern(ent shall be responsible for pro%idin# a basic packa#e of needed personal
health ser%ices to indi#ents thro)#h pre(i)( s)bsidy, or thro)#h direct ser%ice pro%ision )ntil s)ch ti(e that the
pro#ra( is f)lly i(ple(ented.
&5CT71$ 6. G"&"r(* O1A"$#8"'. 4 This Act seeks toC
a= pro%ide all citi;ens of the Philippines with the (echanis( to #ain financial access to health ser%icesJ
b= create the $ational .ealth 7ns)rance Pro#ra(, hereinafter referred to as the Pro#ra(, to ser%e as the (eans to
help the people pay for health care ser%icesJ
c= prioriti;e and accelerate the pro%isions of health ser%ices to all 2ilipinos, especially that se#(ent of the pop)lation
who cannot afford s)ch ser%icesJ and
d= establish the Philippine .ealth 7ns)rance Corporation, hereinafter referred to as the Corporation, that will
ad(inister the Pro#ra( at central and local le%els.
A*T7CL5 77
D527$7T71$ 12 T5*M&
&5CT71$ . D"f#&##o& of T"rm'. - 2or the p)rpose of this Act, the followin# ter(s shall be defined as followsC
a= B"&"f#$#(r0 - Any person entitled to health care benefits )nder this Act.
b= B"&"f# P($/(." - &er%ices that the Pro#ra( offers to its (e(bers.
c= C(%#(#o& - A pay(ent (echanis( where a fi'ed rate, whether per person, fa(ily, ho)sehold, or #ro)p, is
ne#otiated with the health care pro%ider who shall be responsible for deli%erin# or arran#in# for the deli%ery of health
ser%ices re<)ired by the co%ered person )nder the conditions of a health pro%ider contract.
d= Co&r#1,#o& - The a(o)nt paid by or in behalf of a (e(ber to the Pro#ra( for co%era#e, based on salaries or
wa#es in the case of for(al sector e(ployees, and on ho)sehold earnin#s and assets, in the case of the self-
e(ployed, or on other criteria as (ay be defined by the Corporation in accordance with the #)idin# principles set
forth in Article 7 of this Act.
e= Co8"r(." - The entitle(ent of an indi%id)al, as a (e(ber or as a dependent, to the benefits of the Pro#ra(.
f= D"%"&+"& - The le#al dependents of a (e(ber areC 1= the le#iti(ate spo)se who is not a (e(berJ "= the
)n(arried and )ne(ployed le#iti(ate, le#iti(ated, ille#iti(ate, acknowled#ed children as appearin# in the birth
certificateJ le#ally adopted or stepchildren below twenty-one A"1= years of a#eJ 6= children who are twenty-one A"1=
years old or abo%e b)t s)fferin# fro( con#enital disability, either physical or (ental, or any disability ac<)ired that
renders the( totally dependent on the (e(ber for s)pportJ = the parents who are si'ty A+>= years old or abo%e
whose (onthly inco(e is below an a(o)nt to be deter(ined by the Corporation in accordance with the #)idin#
principles set forth in Article 7 of this Act.
#= D#(.&o'#$ Pro$"+,r" - Any proced)re to identify a disease or condition thro)#h analysis and e'a(ination.
h= Em"r."&$0 - An )nforeseen co(bination of circ)(stances which calls for i((ediate action to preser%e the life of a
person or to preser%e the si#ht of one or both eyesJ the hearin# of one or both earsJ or one or two li(bs at or abo%e
the ankle or wrist.
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i= Em%*o0"" - Any person who perfor(s ser%ices for an e(ployer in which either or both (ental and physical efforts
are )sed and who recei%es co(pensation for s)ch ser%ices, where there is an e(ployer-e(ployee relationship.
4= Em%*o0"r - A nat)ral or 4)ridical person who e(ploys the ser%ices of an e(ployee.
k= E&ro**m"& - The process to be deter(ined by the Corporation in order to enlist indi%id)als as (e(bers or
dependents co%ered by the Pro#ra(.
l= F"" for S"r8#$" - A reasonable and e<)itable health care pay(ent syste( )nder which physicians and other health
care pro%iders recei%e a pay(ent that does not e'ceed their billed char#e for each )nit of ser%ice pro%ided.
(= G*o1(* B,+." - An approach to the p)rchase of (edical ser%ices by which health care pro%ider ne#otiation
concernin# the costs of pro%idin# a specific packa#e of (edical benefits is based solely on a predeter(ined and fi'ed
b)d#et.
n= Go8"r&m"& S"r8#$" I&',r(&$" S0'"m - The Fo%ern(ent &er%ice 7ns)rance &yste( created )nder
Co((onwealth Act $o. 1E+, as a(ended.
o= H"(*! C(r" Pro8#+"r - *efers toC
1= a health care instit)tion, which is d)ly licensed and accredited and de%oted pri(arily to the
(aintenance and operation of facilities for health pro(otion, pre%ention, dia#nosis, treat(ent, and
care of indi%id)als s)fferin# fro( illness, disease, in4)ry, disability or defor(ity, or in need of
obstretical or other (edical and n)rsin# care. 7t shall also be constr)ed as any instit)tion, b)ildin#,
or place where there are installed beds, cribs, or bassinets for twenty-fo)r ho)r )se or lon#er by
patients in the treat(ent of diseases, in4)ries, defor(ities, or abnor(al physical and (ental states,
(aternity cases or sanitarial careJ or infir(aries, n)rseries, dispensaries, and s)ch other si(ilar
na(es by which they (ay be desi#natedJ or
"= a health care professional, who is any doctor of (edicine, n)rse, (idwife, dentist, or other health
care professional or practitioner d)ly licensed to practice in the Philippines and accredited by the
CorporationJ or
6= a health (aintenance or#ani;ation, which is an entity that pro%ides, offers, or arran#es for
co%era#e of desi#nated health ser%ices needed by plan (e(bers for a fi'ed prepaid pre(i)(J or
= a co(()nity-based health care or#ani;ation, which is an association of indi#eno)s (e(bers of
the co(()nity or#ani;ed for the p)rpose of i(pro%in# the health stat)s of that co(()nity thro)#h
pre%enti%e, pro(oti%e and c)rati%e health ser%ices.
p= H"(*! I&',r(&$" I+"&#f#$(#o& 6ID7 C(r+ - The doc)(ent iss)ed by the Corporation to (e(bers and dependents
)pon their enroll(ent to ser%e as the instr)(ent for proper identification, eli#ibility %erification, and )tili;ation
recordin#.
<= I&+#."& - A person who has no %isible (eans of inco(e, or whose inco(e is ins)fficient for the s)bsistence of his
fa(ily, as identified by the Local .ealth 7ns)rance 1ffice and based on specific criteria set by the Corporation in
accordance with the #)idin# principles set forth in Article 7 of this Act.
r= I&%(#"& E+,$(#o& P($/(." - A set of infor(ational ser%ices (ade a%ailable to an indi%id)al who is confined in a
hospital to afford hi( with knowled#e abo)t his illness and its treat(ent, and of the (eans a%ailable, partic)larly
lifestyle chan#es, to pre%ent the rec)rrence or a##ra%ation of s)ch illness and to pro(ote his health in #eneral.
s= M"m1"r - Any person whose pre(i)(s ha%e been re#)larly paid to the $ational .ealth 7ns)rance Pro#ra(. .e
(ay be a payin# (e(ber, an indi#ent (e(ber, or a pensionerBretiree (e(ber.
t= M"(&' T"' - A protocol ad(inistered at the baran#ay le%el to deter(ine the ability of indi%id)als or ho)seholds to
pay %aryin# le%els of contrib)tions to the Pro#ra(, ran#in# fro( the indi#ent in the co(()nity whose contrib)tions
sho)ld be totally s)bsidi;ed by #o%ern(ent, to those who can afford to s)bsidi;e part b)t not all of the re<)ired
contrib)tions for the Pro#ra(.
)= M"+#$(r" - The health ins)rance pro#ra( c)rrently bein# i(ple(ented by the Philippine Medical Care
Co((ission. 7t consists ofC
1= Pro.r(m I, which co%ers (e(bers of the &&& and F&7&, incl)din# their le#al dependentsJ and
"= Pro.r(m II, which is intended for those not co%ered )nder Pro.r(m I.
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%= N(#o&(* H"(*! I&',r(&$" Pro.r(m - The co(p)lsory health ins)rance pro#ra( of the #o%ern(ent as established
in this Act, which shall pro%ide )ni%ersal health ins)rance co%era#e and ens)re affordable, acceptable, a%ailable and
accessible health care ser%ices for all citi;ens of the Philippines.
w= P"&'#o&"r - An &&& or F&7& (e(ber who recei%es pensions therefro(.
'= P"r'o&(* H"(*! S"r8#$"' - .ealth ser%ices in which benefits accr)e to the indi%id)al person. These are
cate#ori;ed into in-patient and o)t-patient ser%ices.
y= P!#*#%%#&" M"+#$(* C(r" Comm#''#o& - The Philippine Medical Care Co((ission created )nder *ep)blic Act $o.
+111, as a(ended.
;= P!#*#%%#&" N(#o&(* Dr,. Form,*(r0 - The essential dr)#s list for the Philippines which is prepared by the $ational
Dr)# Co((ittee of the Depart(ent of .ealth in cons)ltations with e'perts and specialists fro( or#ani;ed
professional (edical societies, (edical acade(e and phar(ace)tical ind)stry, and which is )pdated e%ery year.
aa= Por(1#*#0 - The enable(ent of a (e(ber to a%ail of Pro#ra( benefits in an area o)tside the 4)risdiction of his
Local .ealth 7ns)rance 1ffice.
bb= Pr"'$r#%#o& Dr,. - A dr)# which has been appro%ed by the 0)rea) of 2ood and Dr)#s and which can be
dispensed only p)rs)ant to a prescription order fro( a physician who is d)ly licensed to do so.
cc= P,1*#$ H"(*! S"r8#$"' - &er%ices that stren#then pre%enti%e and pro(oti%e health care thro)#h i(pro%in#
conditions in partnership with the co(()nity at lar#e. These incl)de control of co(()nicable and non-co(()nicable
diseases, health pro(otion, p)blic infor(ation and ed)cation, water and sanitation, en%iron(ental protection, and
health related data collection, s)r%eillance, and o)tco(e (onitorin#.
dd= P,(*#0 A'',r(&$" - A for(al set of acti%ities to re%iew and ens)re the <)ality of ser%ices pro%ided. H)ality
ass)rance incl)des <)ality assess(ent and correcti%e actions to re(edy any beneficiaries identified in the <)ality of
direct patient, ad(inistrati%e, and s)pport ser%ices.
ee= R"'#+"&$" - The place where the (e(ber act)ally li%es.
ff= R"#r"" - A (e(ber of the Pro#ra( who has reached the a#e of retire(ent or who has retired on acco)nt of
disability.
##= S"*f4"m%*o0"+ - a person who works for hi(self and is, therefore, both e(ployee and e(ployer at the sa(e ti(e.
hh= So$#(* S"$,r#0 S0'"m - The &ocial &ec)rity &yste( created )nder *ep)blic Act $o. 11+1, as a(ended.
ii= Tr"(m"& Pro$"+,r" - Any (ethod )sed to re(o%e the sy(pto(s and ca)se of a disease.
44= U#*#2(#o& R"8#") - A for(al re%iew of patient )tili;ation or of the appropriateness of health care ser%ices, on a
prospecti%e, conc)rrent or retrospecti%e basis.
A*T7CL5 777
T.5 $AT71$AL .5ALT. 7$&:*A$C5 P*1F*AM
&5C. ,. E'(1*#'!m"& (&+ P,r%o'". 4 There is hereby created the $ational .ealth 7ns)rance Pro#ra( which shall
pro%ide health ins)rance co%era#e and ens)re affordable, acceptable, a%ailable and accessible health care ser%ices
for all citi;ens of the Philippines, in accordance with policies and specific pro%isions of this Act. This social ins)rance
pro#ra( shall ser%e as the (eans for the healthy to help pay for the care of the sick and for those who can afford
(edical care to s)bsidi;e those who cannot. 7t shall initially consist of Pro#ra(s 7 and 77 of Medicare and be
e'panded pro#ressi%ely to constit)te one )ni%ersal health ins)rance pro#ra( for the entire pop)lation. The Pro#ra(
shall incl)de a s)stainable syste( of f)nds constit)tion, collection, (ana#e(ent and disb)rse(ent for financin# the
a%ail(ent of a basic (ini()( packa#e and s)pple(entary packa#es of health ins)rance benefits by a pro#ressi%ely
e'pandin# proportion of the pop)lation. The Pro#ra( shall be li(ited to payin# for the )tili;ation of health ser%ices by
co%ered beneficiaries or to p)rchasin# health ser%ices in behalf of s)ch beneficiaries. 7t shall be prohibited fro(
pro%idin# health care directly, fro( b)yin# and dispensin# dr)#s and phar(ace)ticals, fro( e(ployin# physicians
and other professionals for the p)rpose of directly renderin# care, and fro( ownin# or in%estin# in health care
facilities.
&5C. +. Co8"r(.". 4 All citi;ens of the Philippines shall be co%ered by the $ational .ealth 7ns)rance Pro#ra(. 7n
accordance with the principles of )ni%ersality and co(p)lsory co%era#e en)nciated in &ection " Ab= and " A1= hereof,
i(ple(entation of the Pro#ra( shall, f)rther(ore, be #rad)al and phased in o%er a period of not (ore than fifteen
A1,= yearsC Pro8#+"+, That the Pro#ra( shall not be (ade co(p)lsory in certain pro%inces and cities )ntil the
Corporation shall be able to ens)re that (e(bers in s)ch localities shall ha%e reasonable access to ade<)ate and
acceptable health care ser%ices.
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&5C. 7. E&ro**m"&. 4 The Pro#ra( shall enroll beneficiaries in order for the( to be placed )nder co%era#e that
entitles the( to a%ail of benefits with the assistance of the financial arran#e(ents pro%ided by the Pro#ra(. The
process of enroll(ent shall incl)de the identification of beneficiaries, iss)ance of appropriate doc)(entation
specifyin# eli#ibility to benefits, and indicatin# how (e(bership was obtained or is bein# (aintained. The enroll(ent
shall proceed in accordance with these specific policiesC
a= all persons c)rrently eli#ible fro benefits )nder Medicare Pro#ra( 7, incl)din# &&& and F&7& (e(bers, retirees,
pensioners and their dependents, shall i((ediately and a)to(atically be (ade (e(bers of the $ational .ealth
7ns)rance Pro#ra(J
b= all persons eli#ible for benefits thro)#h health ins)rance plans established by local #o%ern(ents as part of
Pro#ra( 77 of Medicare or in accordance with the pro%isions of this Act, incl)din# indi#ent (e(bers, shall also be
enrolled in the Pro#ra(J
c= all persons eli#ible for benefits as (e(bers of local health ins)rance plans established by the Corporation in
accordance with the i(ple(entin# r)les and re#)lations of this Act shall also be dee(ed to ha%e enrolled in the
Pro#ra(. 5nroll(ent of persons who ha%e no c)rrent health ins)rance co%era#e shall be #i%en priority by the
CorporationJ and
d= all persons eli#ible for benefits as (e(bers of other #o%ern(ent-initiated health ins)rance pro#ra(s, co(()nity-
based health care or#ani;ations, cooperati%es, or pri%ate non-profit health ins)rance plans shall be enrolled in the
Pro#ra( )pon accreditation by the Corporation which shall de%ise and pro%ide incenti%es to ens)re that s)ch
accredited or#ani;ations will benefit fro( their participation in the pro#ra(.
All indi#ents not enrolled in the Pro#ra( shall ha%e priority in the )se and a%ail(ent of the ser%ices and facilities of
#o%ern(ent hospitals, health care personnel, and other health or#ani;ationsC Pro8#+"+, howe%er, That s)ch
#o%ern(ent health care pro%iders shall ens)re that said indi#ents shall s)bse<)ently be enrolled in the Pro#ra(.
&5C. E. H"(*! I&',r(&$" ID C(r+ 4 7n con4)nction with the enroll(ent pro%ided abo%e, the Corporation thro)#h its
local office shall iss)e a health ins)rance 7D which shall be )sed for p)rposes of identification, eli#ibility %erification,
and )tili;ation recordin#. The iss)ance of this 7D card shall be acco(panied by a clear e'planation to the enrollee of
his ri#hts, pri%ile#es and obli#ations as a (e(ber. A list of health care pro%iders accredited by the Local .ealth
7ns)rance 1ffice shall likewise be attached thereto.
&5C. 9. C!(&." of R"'#+"&$". 4 A citi;en can be )nder only one Local .ealth 7ns)rance 1ffice which shall be located
in the pro%ince or city of his place of residence. A person who chan#es residence, beco(es te(porarily e(ployed, or
for other 4)stifiable reasons, is transferred to another locality, sho)ld infor( said 1ffice of s)ch transfer and
s)bse<)ently transfer his Pro#ra( (e(bership.
&5C. 1>. B"&"f# P($/(.". 4 &)b4ect to the li(itations specified in this Act and as (ay be deter(ined by the
Corporation, the followin# cate#ories of personal health ser%ices #ranted to the (e(ber or his dependents as
(edically necessary or appropriate, shall incl)deC
a= I&%(#"& !o'%#(* $(r"-
1= roo( and boardJ
"= ser%ices of health care professionalsJ
6= dia#nostic, laboratory, and other (edical e'a(ination ser%icesJ
= )se of s)r#ical or (edical e<)ip(ent and facilitiesJ
,= prescription dr)#s and biolo#icalsJ s)b4ect to the li(itations stated in &ection 67 of this ActJ
+= inpatient ed)cation packa#esJ
b= O,%(#"& $(r"-
1= ser%ices of health care professionalsJ
"= dia#nostic, laboratory, and other (edical e'a(ination ser%icesJ
6= personal pre%enti%e ser%icesJ and
= prescription dr)#s and biolo#icals, s)b4ect to the li(itations described in &ection 67 of this ActJ
c= Em"r."&$0 (&+ r(&'f"r '"r8#$"'J and
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d= &)ch other health care ser%ices that the Corporation shall deter(ine to be appropriate and cost-effecti%eC
Pro8#+"+, That the Pro#ra(, d)rin# its initial phase of i(ple(entation, which shall not be (ore than fi%e A,= years,
shall pro%ide a basic (ini()( packa#e of benefits which shall be defined accordin# to the followin# #)idelinesC
1= the cost of pro%idin# said packa#es is s)ch that the a%ailable national and local #o%ern(ent s)bsidies for pre(i)(
pay(ents of indi#ents are s)fficient to e'tend co%era#e to the widest possible pop)lation.
"= the initial set of ser%ices shall not be less than half of those pro%ided )nder the c)rrent Medicare Pro#ra( 7 in
ter(s of o%erall a%era#e cost of clai(s paid per beneficiary ho)sehold per year.
6= the ser%ices incl)ded are prioriti;ed, f#r', accordin# to its cost-effecti%eness and, '"$o&+, accordin# to its potential
of pro%idin# (a'i()( relief fro( the financial b)rden on the beneficiaryC Pro8#+"+, That, in addition to the basic
(ini()( packa#e, the Pro#ra( shall pro%ide s)pple(ental health benefit co%era#e to beneficiaries of contrib)tory
f)nds, takin# into consideration the a%ailability of f)nds for the p)rpose fro( said contrib)tory f)ndsC Pro8#+"+,
f,r!"r, That the Pro#ra( pro#ressi%ely e'pand the basic (ini()( benefit packa#e as the proportion of the
pop)lation co%ered reaches tar#eted (ilestone so that the sa(e benefits are e'tended to all (e(bers of the
Pro#ra( within fi%e A,= years after the i(ple(entation of this Act. &)ch e'pansion will pro%ide for the #rad)al
incorporation of s)pple(entary health benefits pre%io)sly e'tended only to so(e beneficiaries into the basic
(ini()( packa#e e'tended to all beneficiariesC and Pro8#+"+, f#&(**0, That in the phased i(ple(entation of this Act,
there sho)ld be no red)ction or interr)ption in the benefits c)rrently en4oyed by present (e(bers of Medicare.
&5C. 11. E9$*,+"+ P"r'o&(* H"(*! S"r8#$". 4 The benefits #ranted )nder this Act shall not co%er e'penses for the
ser%ices en)(erated here)nder e'cept when the Corporation, after act)arial st)dies, reco((end their incl)sion
s)b4ect to the appro%al of the 0oardC
a= non-prescription dr)#s and de%icesJ
b= o)t-patient psychotherapy and co)nselin# for (ental disordersJ
c= dr)# and alcohol ab)se or dependency treat(entJ
d= cos(etic s)r#eryJ
e= ho(e and rehabilitation ser%icesJ
f= opto(etric ser%icesJ
#= nor(al obstetrical deli%eryJ and
h= cost ineffecti%e proced)res which shall be defined by the Corporation.
&5C. 1". E&#*"m"& o B"&"f#'. 4 A (e(ber whose pre(i)( contrib)tions for at least three A6= (onths ha%e been
paid within si' A+= (onths prior to the first day of his or his a%ail(ent, shall be entitled to the benefits of the Pro#ra(C
Pro8#+"+, That s)ch (e(ber can show that he contrib)tes thereto with s)fficient re#)larity, as e%idenced in his health
ins)rance 7D cardC and Pro8#+"+, f,r!"r, That he is not c)rrently s)b4ect to le#al penalties as pro%ided for in &ection
of this Act.
The followin# need not pay the (onthly contrib)tions to be entitled to the Pro#ra(8s benefitsC
a= *etirees and pensioners of the &&& and F&7& prior to the effecti%ity of this ActJ
b= Me(bers who reach the a#e of retire(ent as pro%ided for by law and ha%e paid at least one h)ndred
twenty A1">= contrib)tionsJ and
c= 5nrolled indi#ents.
&5C. 16. Por(1#*#0 of B"&"f#'. 4 The Corporation shall de%elop and enforce (echanis(s and proced)res to ass)re
that benefits are portable across 1ffices.
A*T7CL5 7/
T.5 P.7L7PP7$5 .5ALT. 7$&:*A$C5 C1*P1*AT71$
&5C. 1. Cr"(#o& (&+ N(,r" of !" Cor%or(#o&. 4 There is hereby created a Philippine .ealth 7ns)rance
Corporation, which shall ha%e the stat)s of a ta'-e'e(pt #o%ern(ent corporation attached to the Depart(ent of
.ealth for policy coordination and #)idance.
&5C. 1,. E9"m%#o&' from T(9"' (&+ D,#"'. - The Corporation shall be e'e(pt fro( the pay(ent of ta'es on all
contrib)tions thereto and all accr)als on its inco(e or in%est(ent earnin#s.
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Any donation, contrib)tion, be<)est, s)bsidy or financial aid which (ay be (ade to the Corporation shall constit)te
as allowable ded)ction fro( the inco(e of the donor for inco(e ta' p)rposes and shall be e'e(pt fro( donor8s ta',
s)b4ect to s)ch conditions as pro%ided in the $ational 7nternal *e%en)e Code, as a(ended.
&5C. 1+. Po)"r' (&+ F,&$#o&'. 4 The Corporation shall ha%e the followin# powers and f)nctionsC
a= to ad(inister the $ational .ealth 7ns)rance Pro#ra(J
b= to for()late and pro()l#ate policies for the so)nd ad(inistration of the Pro#ra(J
c= to set standards, r)les and re#)lations necessary to ens)re <)ality of care, appropriate )tili;ation
of ser%ices, f)nd %iability, (e(ber satisfaction, and o%er-all acco(plish(ent of Pro#ra( ob4ecti%esJ
d= to for()late and i(ple(ent #)idelines on contrib)tions and benefitsJ portability of benefits, cost
contain(ent and <)ality ass)ranceJ and health care pro%ider arran#e(ents, pay(ent (ethods, and
referral syste(sJ
e= to establish branch offices as (andated in Article / of this ActJ
f= to recei%e and (ana#e #rants, donations, and other for(s of assistanceJ
#= to s)e and be s)ed in co)rtJ
h= to ac<)ire property, real and personal, which (ay be necessary or e'pedient for the attain(ent
of the p)rposes of this ActJ
i= to collect, deposit, in%est, ad(inister, and disb)rse the $ational .ealth 7ns)rance 2)nd in
accordance with the pro%isions of this ActJ
4= to ne#otiate and enter into contracts with health care instit)tions, professionals, and other
persons, 4)ridical or nat)ral, re#ardin# pricin#, pay(ent (echanis(s, desi#n and i(ple(entation of
ad(inistrati%e and operatin# syste(s and proced)res, financin#, and deli%ery of health ser%icesJ
k= to a)thori;e Local .ealth 7ns)rance 1ffices to ne#otiate and enter into contracts in the na(e and
on behalf of the Corporation with any accredited #o%ern(ent or pri%ate sector health (aintenance
or#ani;ations, cooperati%es and (edical fo)ndations, for the pro%ision of at least the (ini()(
packa#e of personal health ser%ices prescribed by the CorporationJ
l= to deter(ine re<)ire(ents and iss)e #)idelines for the accreditation of health care pro%iders for
the Pro#ra( in accordance with this Act.J
(= to s)per%ise the pro%ision of health benefits with the power to inspect (edical and financial
records of health care pro%iders and patients who are participants in or (e(bers of the Pro#ra(,
the power to enter and inspect accredited health care instit)tions, s)b4ect to the r)les and
re#)lations to be pro()l#ated by the CorporationJ
n= to or#ani;e its office, fi' the co(pensation of and appoint personnel as (ay be dee(ed
necessary and )pon the reco((endation of the president of the CorporationJ
o= to s)b(it to the President of the Philippines and to both .o)ses of Con#ress its Ann)al *eport
which shall contain the stat)s of the $ational .ealth 7ns)rance 2)nd, its total disb)rse(ents,
reser%es, a%era#e costin#s to beneficiaries, any re<)est for additional appropriation, and other data
pertinent to the i(ple(entation of the Pro#ra( and p)blish a synopsis of s)ch report in two A"=
newspapers of #eneral circ)lationJ
p= to keep records of the operation of the Corporation and in%est(ents of the $ational .ealth
7ns)rance 2)ndJ and
<= to perfor( s)ch other acts as it (ay dee( appropriate for the attain(ent of the ob4ecti%es of the
Corporation and for the proper enforce(ent of the pro%isions of this Act.
&5C. 17. P,('#4J,+#$#(* Po)"r'.4 The Corporation, to carry o)t its tasks (ore effecti%ely, shall be %ested with the
followin# powersC
a= to cond)ct in%esti#ations for the deter(ination of a <)estion, contro%ersy, co(plaint, or )nresol%ed #rie%ance
bro)#ht to its attention, and render decisions, orders, or resol)tions thereon. 7t shall proceed to hear and deter(ine
the case e%en in the absence of any party who has been properly ser%ed with notice to appear. 7t shall cond)ct its
proceedin#s or any part thereof in p)blic or in e'ec)ti%e sessionJ ad4o)rn its hearin#s to any ti(e and placeJ refer
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technical (atters or acco)nts to an e'pert and to accept his reports as e%idenceJ direct parties to be 4oined in or
e'cl)ded fro( the proceedin#sJ and #i%e all s)ch directions as it (ay dee( necessary or e'pedient in the
deter(ination of the disp)te before itJ
b= to s)((on the parties to a contro%ersy, iss)e s)bpoenas re<)irin# the attendance and testi(ony of witnesses or
the prod)ction of doc)(ents and other (aterials necessary to a 4)st deter(ination of the case )nder in%esti#ationJ
c= to s)spend te(porarily, re%oke per(anently, or restore the accreditation of a health care pro%ider or the ri#ht to
benefits of a (e(ber andBor i(pose fines after d)e notice and hearin#. The decision shall i((ediately be e'ec)tory,
e%en pendin# appeal, when the p)blic interest so re<)ires and as (ay be pro%ided for in the i(ple(entin# r)les and
re#)lations. &)spension of accreditation shall not e'ceed twenty-fo)r A"= (onths. &)spension of the ri#hts of the
(e(bers shall not e'ceed si' A+= (onths.
The re%ocation of a health care pro%ider8s accreditation shall operate to dis<)alify hi( fro( obtainin# another
accreditation in his own na(e, )nder a different na(e, or thro)#h another person, whether nat)ral or 4)ridical.
The Corporation shall not be bo)nd by the technical r)les of e%idence.
&5C. 1E. T!" Bo(r+ of D#r"$or'. 4 Aa= Com%o'##o& - The Corporation shall be #o%erned by a 0oard of Directors
hereinafter referred to as the 0oard, co(posed of ele%en (e(bers as followsC
The &ecretary of .ealthJ
The &ecretary of Labor and 5(ploy(ent or his representati%eJ
The &ecretary of 7nterior and Local Fo%ern(ent or his representati%eJ
The &ecretary of &ocial 3elfare and De%elop(ent or his representati%eJ
The President of the CorporationJ
A representati%e of the labor sectorJ
A representati%e of e(ployersJ
The &&& Ad(inistrator or his representati%eJ
The F&7& Feneral Mana#er or his representati%eJ
A representati%e of the self-e(ployed sectorJ and
A representati%e of health care pro%iders.
The &ecretary of .ealth shall be the "94off#$#o Chairperson while the President of the Corporation shall be the /ice-
Chairperson of the 0oard.
Ab= A%%o#&m"& (&+ T"&,r" - The President of the Philippines shall appoint the Me(bers of the 0oard )pon the
reco((endation of the Chair(an of the 0oard and in cons)ltation with the sectors concerned. Me(bers of the 0oard
shall ha%e a ter( of fo)r A= years each, renewable for a (a'i()( of two A"= years, e'cept for (e(bers whose ter(s
shall be co-ter(ino)s with their respecti%e positions in #o%ern(ent. Any %acancy in the 0oard shall be filled in the
(anner in which the ori#inal appoint(ent was (ade and the appointee shall ser%e only the )ne'pired ter( of his
predecessor.
Ac= M""#&.' (&+ P,or,m - The 0oard shall hold re#)lar (eetin#s at least once a (onth. &pecial (eetin#s (ay be
con%ened at the call of the Chairperson or by a (a4ority of the (e(bers of the 0oard. The presence of si' A+= %otin#
(e(bers shall constit)te a <)or)(. 7n the absence of the Chairperson and /ice-Chairperson, a te(porary presidin#
officer shall be desi#nated by the (a4ority of the <)or)(.
Ad= A**o)(&$" (&+ P"r D#"m' - The (e(bers of the 0oard shall recei%e a %"r +#"m for e%ery (eetin# act)ally
attended s)b4ect to the pertinent b)d#etary laws, r)les and re#)lations on co(pensation, honoraria and allowances.
&5C. 19. T!" Pr"'#+"& of !" Cor%or(#o&. 4 Aa= A%%o#&m"& (&+ T"&,r" - The President of the Philippines shall
appoint for non-renewable ter( of si' A+= years, the President of the Corporation, hereinafter referred to as the
President, )pon the reco((endation of the 0oard. The President shall not be re(o%ed fro( office e'cept in
accordance with e'istin# laws.
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Ab= D,#"' (&+ F,&$#o&' - The President shall ha%e the d)ty of ad%isin# the 0oard and carryin# into effect its policies
and decisions. .is f)nctions are as followsC
1= to act as the chief e'ec)ti%e officer of the CorporationJ and
"= to be responsible for the #eneral cond)ct of the operations and (ana#e(ent f)nctions of the
Corporation and for other d)ties assi#ned to hi( by the 0oard.
Ac= P,(*#f#$(#o&' - The President ()st be a 2ilipino citi;en and ()st possess ade<)ate and appropriate trainin# and
at least fi%e A,= years e'perience in the field of health care financin# and corporate (ana#e(ent.
Ad= S(*(r0 - The President shall recei%e a salary to be fi'ed by the 0oard, with the appro%al of the President of the
Philippines, payable fro( the f)nds of the Corporation.
Ae= Pro!#1##o& - To a%oid conflict of interest, the President ()st not be in%ol%ed in any health care instit)tion as owner
or (e(ber of its board.
&5C. ">. H"(*! F#&(&$" Po*#$0 R"'"(r$!. 4 A(on# the staff depart(ents that will be established by the Corporation
shall be the .ealth 2inance Policy *esearch Depart(ent, which shall ha%e the followin# d)ties and f)nctionsC
a= de%elop(ent of broad concept)al fra(ework for i(ple(entation of the Pro#ra( thro)#h a national health finance
(aster plan to ens)re s)stained in%est(ents in health care, and to pro%ide #)idance for additional appropriations
fro( the $ational Fo%ern(entJ
b= cond)ct of researches and st)dies toward the de%elop(ent of policies necessary to ens)re the
%iability, ade<)acy and responsi%eness of the Pro#ra(J
c= re%iew, e%al)ation, and assess(ent of the Pro#ra(8s i(pact on the access to, as well as the
<)ality and cost of, health care in the co)ntryJ
d= periodic re%iew of fees, char#es, co(pensation rates, capitation rates, (edical standards, health
o)tco(es and satisfaction of (e(bers, benefits, and other (atters pertinent to the operations of
the Pro#ra(J
e= co(parison in the deli%ery, <)ality, )se, and cost of health care ser%ices of the different 1fficesJ
f= s)b(ission for consideration of pro#ra( of <)ality ass)rance, )tili;ation re%iew, and technolo#y
assess(entJ and
#= s)b(ission of reco((endations on policy and operational iss)es that will help the Corporation
(eet the ob4ecti%es of this Act.
&5C. "1. A$,(r0 of !" Cor%or(#o&. 4 An 1ffice of Act)ary shall be created within the Corporation to cond)ct the
necessary act)arial st)dies and present reco((endations on ins)rance pre(i)(, in%est(ents and other related
(atters.
A*T7CL5 /
L1CAL .5ALT. 7$&:*A$C5 1227C5
&5C. "". E'(1*#'!m"&. 4 The Corporation shall establish a Local .ealth 7ns)rance 1ffice, hereinafter referred to as
the 1ffice, in e%ery pro%ince or chartered city, or where%er it is dee(ed practicable, to brin# its ser%ices closer to
(e(bers of the Pro#ra(. .owe%er, one office (ay ser%e the needs of (ore than one pro%ince or city when the
(er#ed operations will res)lt in lower ad(inistrati%e cost and #reater cross-s)bsidy between rich and poor localities.
Pro%inces and cities where prospecti%e (e(bers are or#ani;ed shall recei%e priority in the establish(ent of local
health ins)rance offices.
&5C. "6. F,&$#o&'. 4 5ach 1ffice shall ha%e the followin# powers and f)nctionsC
a= to cons)lt and coordinate, as needed, with the local #o%ern(ent )nits within its 4)risdiction in the
i(ple(entation of the Pro#ra(J
b= to recr)it and re#ister (e(bers of the Pro#ra( fro( all areas within its 4)risdictionJ
c= to collect and recei%e pre(i)(s and other pay(ent contrib)tions to the Pro#ra(J
d= to (aintain and )pdate the (e(bership eli#ibility list at co(()nity le%elsJ
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e= to s)per%ise the cond)ct of (eans testin# which shall be based on the criteria set by the
Corporation and )ndertaken by the 0aran#ay Captain in coordination with the social welfare officer
and co(()nity-based health care or#ani;ations to deter(ine the econo(ic stat)s of all
ho)seholds and indi%id)als, incl)din# those who are indi#entJ
f= to iss)e health ins)rance 7D cards to persons whose pre(i)(s ha%e been paid accordin# to the
re<)ire(ents of the 1ffice and the #)idelines iss)ed by the 0oardJ
#= to reco((end to the 0oard pre(i)( sched)les that pro%ide for lower rates to be paid by the
(e(bers whose dependents incl)de those with red)ced probability of )tili;ation, as in f)lly
i(()ni;ed childrenJ
h= to reco((end to the 0oard a contrib)tion sched)le which specifies contrib)tion le%els by the
indi%id)als and ho)seholds, and a correspondin# )nifor( packa#e of personal health ser%ice
benefits which is at least e<)al to the (ini()( packa#e of s)ch benefits prescribed by the 0oard
as applyin# to the nationJ
i= to #rant and deny accreditation to health care pro%iders in their area of 4)risdiction, s)b4ect to the
r)les and re#)lations to be iss)ed by the 0oardJ
4= to process, re%iew and pay the clai(s of pro%iders, within a period not e'ceedin# si'ty A+>= days,
whene%er applicable in accordance with the r)les and #)idelines of the CorporationJ
k= to pay fees, as necessary, for clai(s re%iew and processin# when s)ch are cond)cted by the
central office of the Corporation or by any of its contractorsJ
l= to establish referral syste(s and network arran#e(ents with other 1ffices, as (ay be necessary,
and followin# the #)idelines set by the CorporationJ
(= to establish (echanis(s by which pri%ate and p)blic sector health facilities and h)(an
reso)rces (ay be shared in the interest of opti(i;in# the )se of health reso)rcesJ
n= to s)pport the (ana#e(ent infor(ation syste( re<)ire(ents of the CorporationJ
o= to ser%e as the first le%el for appeals and #rie%ance casesJ
p= to tap co(()nity-based %ol)nteer health workers and baran#ay officials, if necessary, for
(e(ber recr)it(ent, pre(i)( collection and si(ilar acti%ities, and to #rant s)ch workers incenti%es
accordin# to the #)idelines set by the Corporation and in accordance with the applicable laws.
.owe%er, the incenti%es for the baran#ay officials shall accr)e to the baran#ay and not to the said
officialsJ
<= to participate in infor(ation and ed)cation acti%ities that are consistent with the #o%ern(ent8s
priority pro#ra(s on disease pre%ention and health pro(otionJ and
r= to prepare an ann)al report accordin# to the #)idelines set by the 0oard and to s)b(it the sa(e
to the central office of the Corporation.
A*T7CL5 /7
T.5 $AT71$AL .5ALT. 7$&:*A$C5 2:$D
&5C. ". Cr"(#o& of !" N(#o&(* H"(*! I&',r(&$" F,&+. 4 There is hereby created a $ational .ealth 7ns)rance
2)nd, hereinafter referred to as the 2)nd, that shall consist ofC
a= contrib)tions fro( Pro#ra( (e(bersJ
b= c)rrent balances of the .ealth 7ns)rance 2)nd of the &&& and F&7& collected )nder the
Philippine Medical Care Act of 19+9, as a(ended, incl)din# arreara#es of the Fo%ern(ent of the
Philippines with the F&7& for the said 2)ndJ
c= other appropriations ear(arked by the national and local #o%ern(ents p)rposely for the
i(ple(entation of the Pro#ra(J
d= s)bse<)ent appropriations pro%ided for )nder &ections + and 7 of this ActJ
e= donations and #rants-in-aidJ and
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f= all accr)als thereof.
&5C. ",. Com%o&"&' of !" N(#o&(* H"(*! I&',r(&$" F,&+. 4 The $ational .ealth 7ns)rance 2)nd shall ha%e the
followin# co(ponentsC
a= T!" B('#$ B"&"f# F,&+. - This 2)nd shall finance the a%ail(ent of the basic (ini()( benefit packa#e by eli#ible
beneficiaries. All liabilities associated with the e'tension of entitle(ent to the basic (ini()( benefit packa#e to the
enrolled pop)lation shall be borne by the basic benefit f)nd. 7t shall be constit)ted and (aintained thro)#h the
followin# processC
1= )pon the deter(ination of the a(o)nt of #o%ern(ent s)bsidies and donations a%ailable for
payin# f)lly or partially the pre(i)( of indi#ent beneficiaries, a basic (ini()( packa#e affordable
for enrollin# as (any of the indi#ent beneficiaries as possible shall be defined. The #o%ern(ent
s)bsidies will then be constit)ted as pre(i)( pay(ents for enrolled indi#ents and contrib)ted into
the basic benefit f)nd.
"= for e'tendin# co%era#e of this sa(e (ini()( benefit packa#e to non-indi#ents who are not
(e(bers of Medicare, pre(i)( prices for specific pop)lation shall be act)arially deter(ined based
on %ariations in risk, capacity to pay, and pro4ected costs of ser%ices )tili;ed. The a(o)nts
correspondin# to the pre(i)( re<)ired, incl)din# costs of direct benefit pay(ents, all costs of
ad(inistration, and pro%ision of ade<)ate reser%es, for e'tendin# the co%era#e of the basic
(ini()( benefit packa#e for s)ch pop)lation #ro)ps shall be contrib)ted into the basic benefit
f)nd.
6= for the pop)lation enrolled thro)#h Medicare Pro#ra( 7 )nder &&&, the correspondin# pre(i)(
for the basic (ini()( benefit packa#e, incl)din# costs of direct benefit pay(ents, all costs of
ad(inistration, and pro%ision of ade<)ate reser%es, shall be char#ed to the health ins)rance f)nd
of the &&& and paid into the basic benefit f)nd.
= for the pop)lation enrolled thro)#h Medicare Pro#ra( 7 )nder F&7&, the correspondin# pre(i)(
for the basic (ini()( benefit packa#e, incl)din# costs of direct benefit pay(ents, all costs of
ad(inistration, and pro%ision of ade<)ate reser%es, shall be char#ed to the health ins)rance f)nd
of the F&7& and paid into the basic benefit f)nd.
,= for #ro)ps enrolled thro)#h any of the e'istin# or f)t)re health ins)rance sche(es and plans,
incl)din# those created )nder Medicare Pro#ra( 77 and those or#ani;ed by local #o%ern(ent )nits,
national a#encies, cooperati%es, and other si(ilar or#ani;ations, the correspondin# pre(i)(,
incl)din# costs of direct benefit pay(ents, all costs of ad(inistration, and pro%ision of ade<)ate
reser%es, for e'tendin# the basic (ini()( benefit packa#e to their respecti%e enrollees will be
char#ed to their respecti%e f)nds and paid into the basic benefit f)nd.
b= S,%%*"m"&(r0 B"&"f# F,&+'. These are separate and distinct s)pple(entary benefit f)nds created by the
Corporation as eli#ible for )se to pro%ide s)pple(entary co%era#e to %ario)s #ro)ps of the pop)lation en4oyin# the
basic benefit co%era#e as are affordable by their respecti%e f)ndin# so)rces. 5ach s)pple(entary benefit f)nd shall
finance the e'tension and a%ail(ent of additional benefits not incl)ded in the basic (ini()( benefit packa#e b)t
appro%ed by the 0oard. &)ch s)pple(entary benefits shall be financed by whate%er a(o)nts are a%ailable after
ded)ctin# the costs of pro%idin# the basic (ini()( benefit packa#e, incl)din# costs of direct benefit pay(ents, all
costs of ad(inistration, and pro%ision of ade<)ate reser%es. All liabilities associated with the e'tension of
s)pple(entary benefits to the defined #ro)p of enrollees shall be borne e'cl)si%ely by the respecti%e s)pple(entary
benefit f)nds. :pon the i(ple(entation of this Act, the followin# s)pple(entary benefit f)nds shall be establishedC
1= s)pple(entary benefit f)nd for &&&-Medicare (e(bers and beneficiaries. After ded)ctin# the
a(o)nt correspondin# to the pre(i)( of the basic (ini()( benefit packa#e, the balance of the
&&&-.ealth 7ns)rance 2)nd A.72= shall be constit)ted into a s)pple(entary benefit f)nd to finance
the e'tension of benefits in addition to the (ini()( basic packa#e to &&& (e(bers and
beneficiariesJ and
"= s)pple(entary benefit f)nd for F&7&-Medicare (e(bers and beneficiaries. After ded)ctin# the
a(o)nt correspondin# to the pre(i)( for the basic (ini()( benefit packa#e, the balance of the
F&7&-.72 pl)s the arreara#es of the Fo%ern(ent of the Philippines with the F&7& for the said .72
shall be constit)ted into a s)pple(entary benefit f)nd to finance the e'tension of benefits in
addition to the (ini()( basic packa#e to F&7& (e(bers and beneficiaries.
7n accordance with the principles of e<)ity and social solidarity, as en)nciated in &ection " of this Act, the abo%e
s)pple(entary benefit f)nds shall be (aintained for not (ore than fi%e A,= years, after which, s)ch f)nds shall be
(er#ed into the basic benefit f)nd.
&5C. "+. F#&(&$#(* M(&(."m"&. 4 The )se, disposition, in%est(ent, disb)rse(ent, ad(inistration and (ana#e(ent
of the $ational .ealth 7ns)rance 2)nd, incl)din# any s)bsidy, #rant or donation recei%ed for pro#ra( operations shall
be #o%erned by resol)tion of the 0oard of Directors of the Corporation, s)b4ect to the followin# li(itationsC
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a= All f)nds )nder the (ana#e(ent and control of the Corporation shall be s)b4ect to all r)les and re#)lations
applicable to p)blic f)nds.
b= The Corporation is a)thori;ed to char#e the %ario)s f)nds )nder its control for the costs of ad(inisterin# the
Pro#ra(. &)ch costs (ay incl)de ad(inistration, (onitorin#, (arketin# and pro(otion, research and de%elop(ent,
a)dit and e%al)ation, infor(ation ser%ices, and other necessary acti%ities for the effecti%e (ana#e(ent of the
Pro#ra(. The total ann)al costs for these shall not e'ceed twel%e percent A1"K= of the total contrib)tions, incl)din#
#o%ern(ent contrib)tions to the Pro#ra( and not (ore than three percent A6K= of the in%est(ent earnin#s collected
d)rin# the i((ediately precedin# year.
&5C. "7. R"'"r8" F,&+'. 4 The Corporation shall set aside a portion of its acc)()lated re%en)es not needed to (eet
the cost of the c)rrent year8s e'pendit)res as reser%e f)ndsC Pro8#+"+, That the total a(o)nt of reser%es shall not
e'ceed a ceilin# e<)i%alent to the a(o)nt act)arially esti(ated for two years8 pro4ected Pro#ra( e'pendit)resC
Pro8#+"+, f,r!"r, That whene%er act)al reser%es e'ceed the re<)ired ceilin# at the end of the Corporation8s fiscal
year, the Pro#ra(8s benefits shall be increased or (e(ber-contrib)tions decreased prospecti%ely in order to ad4)st
e'pendit)res or re%en)es to (eet the re<)ired ceilin# for reser%e f)nds. &)ch portions of the reser%e f)nd as are not
needed to (eet the c)rrent e'pendit)re obli#ations shall be in%ested in short-ter( in%est(ents to earn an a%era#e
ann)al inco(e at pre%ailin# rates of interest and shall be known as the TI&8"'m"& R"'"r8" F,&+T which shall be
in%ested in any or all of the followin#C
a= 7n interest-bearin# bonds, sec)rities or other e%idences of indebtedness of the Fo%ern(ent of
the Philippines, or in bonds, sec)rities, pro(issory notes and other e%idences of indebtedness to
which f)ll faith and credit and )nconditional #)arantee of the *ep)blic of the Philippines is pled#edJ
b= 7n interest-bearin# deposits and loans to or sec)rities in any do(estic bank doin# b)siness in the
PhilippinesC Pro8#+"+, That in the case of s)ch deposits, this shall not e'ceed at any ti(e the
)ni(paired capital and s)rpl)s or total pri%ate deposits of the depository bank, whiche%er is
s(allerC Pro8#+"+, f,r!"r, That said bank shall first ha%e been desi#nated as a depository for this
p)rpose by the Monetary 0oard of the 0an#ko &entral n# PilipinasJ and
c= 7n preferred stocks of any sol%ent corporation or instit)tion created or e'istin# )nder the laws of
the PhilippinesC Pro8#+"+, That the iss)in#, ass)(in#, or #)aranteein# entity or its predecessor has
paid re#)lar di%idends )pon its preferred or #)aranteed stocks for a period of at least three A6=
years i((ediately precedin# the date of in%est(ent in s)ch preferred #)aranteed stocksC Pro8#+"+,
f,r!"r, That if the corporation or instit)tion has not paid di%idends )pon its preferred stocks, the
corporation or instit)tion has s)fficient retained earnin#s to declare di%idends for at least two A"=
years on s)ch preferred stocks and in co((on stocks option or warrants to co((on stocks of any
sol%ent corporation or instit)tion created or e'istin# )nder the laws of the Philippines in the stock
e'chan#e with pro%en track record of profitability and pay(ent of di%idends o%er the last three A6=
years or in co((on stocks of a newly or#ani;ed corporation abo)t to be listed in the stock
e'chan#eC Pro8#+"+, f#&(**0, That s)ch d)ly or#ani;ed corporations shall ha%e been rated TAT,
do)ble TAM'T or triple TAM'T by a)thori;ed accredited do(estic ratin# a#encies or by the Corporation
or in ()t)al f)nds incl)din# allied in%est(ents.
A*T7CL5 /77
27$A$C7$F
&5C. "E. Co&r#1,#o&'. 4 All (e(bers of the Pro#ra( shall contrib)te to the 2)nd, in accordance with a reasonable,
e<)itable and pro#ressi%e contrib)tion sched)le to be deter(ined by the Corporation on the basis of applicable
act)arial st)dies and in accordance with the followin# #)idelinesC
a= 2or(al sector e(ployees and c)rrent Medicare (e(bers and their e(ployers shall contin)e
payin# the sa(e (onthly contrib)tions as pro%ided for by law )ntil s)ch ti(e that the Corporation
shall ha%e deter(ined the contrib)tion sched)le (entioned hereinC Pro8#+"+, That their (onthly
contrib)tion shall not e'ceed three percent of their respecti%e (onthly salaries.
b= Contrib)tions fro( self-e(ployed (e(bers shall be based pri(arily on ho)sehold earnin#s and
assetsJ their total contrib)tions for one year shall not, howe%er, e'ceed three percent A6K= of their
esti(ated act)al net inco(e for the precedin# year.
c= Contrib)tions (ade in behalf of indi#ent (e(bers shall not e'ceed the (ini()( contrib)tions
set for e(ployed (e(bers.
&5C. "9. P(0m"& for I&+#."& Co&r#1,#o&'. 4 Contrib)tions for indi#ent (e(bers shall be s)bsidi;ed partially by the
local #o%ern(ent )nit where the (e(ber resides. The Corporation shall pro%ide co)nterpart financin# e<)al to the
LF:8s s)bsidy for indi#entsC Pro8#+"+, That in the case of fo)rth, fifth and si'th class LF:8s, the $ational
Fo%ern(ent shall pro%ide )p to ninety percent A9>K= of the s)bsidy for indi#ents for a period not e'ceedin# fi%e A,=
years. The share of the LF:8s shall be pro#ressi%ely increased )ntil s)ch ti(e that its share beco(es e<)al to that of
the $ational Fo%ern(ent.
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A*T7CL5 /777
.5ALT. CA*5 P*1/7D5*&
&5C. 6>. Fr"" C!o#$" of H"(*! F($#*#0, M"+#$(* or D"&(* Pr($##o&"r. 4 0eneficiaries re<)irin# treat(ent or
confine(ent shall be free to choose fro( accredited health care pro%iders. &)ch choice shall, howe%er, be s)b4ect to
li(itations based on the area of 4)risdiction of the concerned 1ffice and on the appropriateness of treat(ent in the
facility chosen or by the desired pro%ider.
&5C. 61. A,!or#0 o Gr(& A$$r"+#(#o&. 4 The Corporation shall ha%e the a)thority to #rant to health care pro%iders
accreditation which confers the pri%ile#e of participatin# in the Pro#ra(.
&5C. 6". A$$r"+#(#o& E*#.#1#*#0. 4 All health care pro%iders, as en)(erated in &ec. Ao= hereof and operatin# for at
least three A6= years, (ay apply for accreditation.
&5C. 66. M#&#m,m R"5,#r"m"&' for A$$r"+#(#o&. 4 The (ini()( accreditation re<)ire(ents for health care
pro%iders are as followsC
a= h)(an reso)rce, e<)ip(ent and physical str)ct)re in confor(ity with the standards of the
rele%ant facility, as deter(ined by the Depart(ent of .ealthJ
b= acceptance of for(al pro#ra( of <)ality ass)rance and )tili;ation re%iewJ
c= acceptance of the pay(ent (echanis(s specified in the followin# sectionJ
d= adoption of referral protocols and health reso)rces sharin# arran#e(entsJ
e= reco#nition of the ri#hts of the patientsJ and
f= acceptance of infor(ation syste( re<)ire(ents and re#)lar transfer of infor(ation.
&5C. 6. Pro8#+"r P(0m"& M"$!(&#'m'. 4 The followin# (echanis(s for p)blic and pri%ate pro%iders shall be
allowed in the Pro#ra(C
a= 2ee-for-ser%ice based on (echanis(s established by the CorporationJ
b= Capitation of health care professionals and facilities, or network of the sa(e, incl)din# .M1s,
(edical cooperati%es, and other le#ally for(ed health ser%ice #ro)psJ
c= A co(bination of bothJ and
d= Any or all of the abo%e, s)b4ect to #lobal b)d#et.
5ach 1ffice shall reco((end the appropriate pay(ent (echanis( within its 4)risdiction for appro%al by the
Corporation. &pecial consideration shall be #i%en to pay(ent for ser%ices rendered by p)blic and pri%ate health care
pro%iders ser%in# re(ote or (edically )nderser%ed areas.
&5C. 6,. F""4for4'"r8#$" P(0m"&' (&+ P(0m"&' #& G"&"r(*. 4 2ee-for-ser%ice pay(ents (ay be (ade separately
for professional fees and hospital char#es, or both, based on arran#e(ents with health care pro%iders. This fee shall
be based on a sched)le to be established by the 0oard which shall be re%iewed e%ery three A6= years. 2ees paid for
professional ser%ices rendered by salaried p)blic pro%iders shall be allowed and be pooled and distrib)ted a(on#
health personnel. Char#es paid to p)blic facilities shall be allowed to be retained by the indi%id)al facility in which
ser%ices were rendered and for which pay(ent was (ade. &)ch re%en)es shall be )sed to defray operatin# costs
other than salaries, to (aintain or )p#rade e<)ip(ent, plant or facility, and to (aintain or i(pro%e the <)ality of
ser%ice in the p)blic sector.
&5C. 6+. C(%#(#o& P(0m"&'. 4 Capitation pay(ents (ay be paid to p)blic or pri%ate pro%iders accordin# to rates of
capitation pay(ents based on ann)al capitation rate #)idelines to be iss)ed by the Corporation.
&5C. 67. P,(*#0 A'',r(&$". 4 :nder the #)idelines pro%ided by the Corporation and in collaboration with their
respecti%e 1ffices, health care pro%iders shall take part in pro#ra(s of <)ality ass)rance, )tili;ation re%iew, and
technolo#y assess(ent that ha%e the followin# ob4ecti%esC
a= to ens)re that the <)ality of personal health ser%ices deli%ered, (eas)red in ter(s of inp)ts,
process, and o)tco(es, are of reasonable <)ality in the conte't of the Philippines o%er ti(eJ
b= to ens)re that the health care standards are )nifor( within the 1ffice8s 4)risdiction and
e%ent)ally thro)#ho)t the nationJ and
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c= to see to it that the ac<)isition and )se of scarce and e'pensi%e (edical technolo#ies and
e<)ip(ent are consistent with act)al needs and standards of (edical practice, and thatC
1= the perfor(ance of (edical proced)res and the ad(inistration of dr)#s are appropriate,
necessary and )n<)estionably consistent with accepted standards of (edical practice and ethics.
Dr)#s for which pay(ents will be (ade shall be those incl)ded in the Philippine $ational Dr)#
2or()lary, )nless e'plicit e'ception is #ranted by the Corporation.
"= the perfor(ance of (edical proced)res and the ad(inistration of dr)#s are appropriate,
consistent with accepted standards of (edical practice and ethics, and respectf)l of the local
c)lt)re.
&5C. 6E. S(f".,(r+' A.(#&' O8"r (&+ U&+"r U#*#2(#o&. 4 7t is inc)(bent )pon the Corporation to set )p a
(onitorin# (echanis( to be operationali;ed thro)#h a contract with health care pro%iders to ens)re that there are
safe#)ards a#ainstC
a= o%er-)tili;ation of ser%icesJ
b= )nnecessary dia#nostic and therape)tic proced)res and inter%entionJ
c= irrational (edication and prescriptionsJ
d= )nder-)tili;ation of ser%icesJ and
e= inappropriate referral practices.
The Corporation (ay deny or red)ce the pay(ent for clai(s when s)ch clai(s are attended by false or incorrect
infor(ation and when the clai(ant fails, witho)t 4)stifiable ca)se, to co(ply with the r)les and re#)lations of this Act.
A*T7CL5 7D
F*75/A$C5 A$D APP5AL
&5C. 69. Gr#"8(&$" S0'"m. 4 A syste( of #rie%ance is hereby established, wherein (e(bers, dependents, or health
care pro%iders of the Pro#ra( who belie%e they ha%e been a##rie%ed by any decision of the i(ple(entors of the
Pro#ra(, (ay seek redress of the #rie%ance in accordance with the pro%isions of this Article.
&5C. >. Gro,&+' for Gr#"8(&$"'. 4 The followin# acts shall constit)te %alid #ro)nds for #rie%ance actionC
a= any %iolation of the ri#hts of the patientsJ
b= a willf)l ne#lect of d)ties of Pro#ra( i(ple(entors that res)lts in the loss or non-en4oy(ent of
benefits of (e(bers or their dependentsJ
c= )n4)stifiable delay in actions on clai(sJ
d= delay in processin# of clai(s that e'tends beyond the period a#reed )ponJ and
e= any other act or ne#lect that tends to )nder(ine or defeat the p)rposes of this Act.
&5C. 1. Gr#"8(&$" (&+ A%%"(* Pro$"+,r"'. 4 A (e(ber, his dependent, or a health care pro%ider, (ay file a
co(plaint for #rie%ance based on any of the abo%e #ro)nds, in accordance with the followin# proced)resC
a= A co(plaint for #rie%ance ()st be filed with the 1ffice which shall r)le on the co(plaint within
ninety A9>= calendar days fro( receipt thereof.
b= Appeals fro( 1ffice decisions ()st be filed with the 0oard within thirty A6>= days fro( receipt of
notice of dis(issal or disallowance by the 1ffice.
c= The 1ffices shall ha%e no 4)risdiction o%er any iss)e in%ol%in# the s)spension or re%ocation of
accreditation, the i(position of fines, or the i(position of char#es on (e(bers or their dependents
in case of re%ocation of their entitle(ent.
d= All decisions by the 0oard as to entitle(ent to benefits of (e(bers or to pay(ents of health care
pro%iders shall be considered final and e'ec)tory.
&5C. ". Gr#"8(&$" (&+ A%%"(* R"8#") Comm#"". 4 The 0oard shall create a Frie%ance Appeal *e%iew
Co((ittee, co(posed of three A6= to fi%e A,= (e(bers, hereinafter referred to as the Co((ittee, which, s)b4ect to
the proced)res en)(erated abo%e, shall recei%e and reco((end appropriate action on co(plaints fro( (e(bers
and health care pro%iders relati%e to this Act and its i(ple(entin# r)les and re#)lations.
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&5C. 6. H"(r#&. Pro$"+,r"' of !" Comm#"". 4 :pon the filin# of the co(plaint, the Frie%ance and Appeal *e%iew
Co((ittee, fro( a consideration of the alle#ations thereof, (ay dis(iss the case o)tri#ht d)e to lack of %erification,
fail)re to state the ca)se of action, or any %alid #ro)nd for the dis(issal of the co(plaint after cons)ltation with the
0oardJ or re<)ire the respondent to file a %erified answer within fi%e A,= days fro( ser%ice of s)((ons.
&ho)ld the defendant fail to answer the co(plaint within the re#le(entary ,-day period herein pro%ided, the
Co((ittee, mo, %ro%r#o or )pon (otion of the co(plainant, shall render 4)d#(ent as (ay be warranted by the facts
alle#ed in the co(plaint and li(ited to what is prayed for therein.
After an answer is filed and the iss)es are 4oined, the Co((ittee shall re<)ire the parties to s)b(it, within ten A1>=
days fro( receipt of the order, the affida%its of witnesses and other e%idence on the fact)al iss)es defined therein,
to#ether with a brief state(ent of their positions settin# forth the law and the facts relied )pon by the(. 7n the e%ent
the Co((ittee finds, )pon consideration of the pleadin#s, the affida%its and other e%idence, and position state(ents
s)b(itted by the parties, that a 4)d#(ent (ay be rendered thereon witho)t need of for(al hearin#, it (ay proceed to
render 4)d#(ent not later than ten A1>= days fro( the s)b(ission of the position state(ents of the parties.
7n cases where the Co((ittee dee(s it necessary to hold a hearin# to clarify specific fact)al (atters before
renderin# 4)d#(ent, it shall set the case for hearin# for the p)rpose. At s)ch hearin#, witnesses whose affida%its
were pre%io)sly s)b(itted (ay be asked clarificatory <)estions by the proponent and by the Co((ittee and (ay be
cross-e'a(ined by the ad%erse party. The order settin# the case for hearin# shall specify the witnesses who will be
called to testify, and the (atters on which their e'a(ination will deal. The hearin# shall be ter(inated within fifteen
A1,= days, and the case decided by the Co((ittee within fifteen A1,= days fro( s)ch ter(ination.
The decision of the Co((ittee shall beco(e final and e'ec)tory fifteen A1,= days after notice thereofC Pro8#+"+,
!o)"8"r, That it is appealable to the 0oard by filin# the appellant8s (e(orand)( of appeal within fifteen A1,= days
fro( receipt of the copy of the 4)d#(ent appealed fro(. The appellee shall be #i%en fifteen A1,= days fro( notice to
file the appellee8s (e(orand)( after which the 0oard shall decide the appeal within thirty A6>= days fro( the
s)b(ittal of the said pleadin#s.
The decision of the 0oard shall also beco(e final and e'ec)tory fifteen A1,= days after notice thereofC Pro8#+"+,
!o)"8"r, That it is re%iewable by the &)pre(e Co)rt on p)rely <)estions of law in accordance with the *)les of
Co)rt.
The Co((ittee and the 0oard, in the e'ercise of their <)asi-4)dicial f)nction, as specified in &ection 17 hereof, can
ad(inister oaths, certify to official acts and iss)e ',1%o"&( to co(pel the attendance and testi(ony of the witnesses,
and ',1%o"&( +,$"' "$,m (+ "'#f#$(&+,m to en4oin the prod)ction of books, papers and other records and to
testify therein on any <)estion arisin# o)t of this Act. Any case of cont)(acy shall be dealt with in accordance with
the pro%isions of the *e%ised Ad(inistrati%e Code and the *)les of Co)rt. The 0oard or the Co((ittee, as the case
(ay be, shall prescribe the necessary ad(inistrati%e sanctions s)ch as fines, warnin#s, s)spension or re%ocation of
the ri#ht to participate in the Pro#ra(.
7n all its proceedin#s, the Co((ittee and the 0oard shall not be bo)nd by the technical r)les of e%idenceC Pro8#+"+,
!o)"8"r, That the *)les of Co)rt shall apply with s)ppletory effect.
A*T7CL5 D
P5$ALT75&
&5C. . P"&(* Pro8#'#o&'. 4 Any %iolation of the pro%isions of this Act, after d)e notice and hearin#, shall s)ffer the
followin# penaltiesC
A fine of not less than Ten tho)sand pesos AP1>,>>>= nor (ore than 2ifty tho)sand pesos AP,>,>>>= in case the
%iolation is co((itted by the hospital (ana#e(ent or pro%ider. 7n addition, its accreditation shall be s)spended or
re%oked fro( three (onths to the whole ter( of the accreditationC Pro8#+"+, !o)"8"r, That recidi%ists (ay not
any(ore be accredited as a participant of the Pro#ra(J
A fine of not less than 2i%e h)ndred pesos AP,>>= nor (ore than 2i%e tho)sand pesos AP,,>>>= and i(prison(ent of
not less than si' A+= (onths nor (ore than one A1= year in case the %iolation is co((itted by the (e(ber.
3here the %iolations consist of fail)re or ref)sal to ded)ct contrib)tions fro( the e(ployee8s co(pensation or to re(it
the sa(e to the Corporation, the penalty shall be a fine of not less than 2i%e h)ndred pesos AP,>>= b)t not (ore than
1ne tho)sand pesos AP1,>>>= ()ltiplied by the total n)(ber of e(ployees e(ployed by the fir( and i(prison(ent of
not less than si' A+= (onths b)t not (ore than one A1= yearC Pro8#+"+, f,r!"r, That in the case of self-e(ployed
(e(bers, fail)re to re(it one8s own contrib)tion shall be penali;ed with a fine of not less than 2i%e h)ndred pesos
AP,>>= b)t not (ore than 1ne tho)sand pesos AP1,>>>=.
Any e(ployer or any officer a)thori;ed to collect contrib)tions )nder this Act who, after collectin# or ded)ctin# the
(onthly contrib)tions fro( his e(ployee8s co(pensation, fails to re(it the said contrib)tions to the Corporation within
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thirty A6>= days fro( the date they beco(e d)e shall be pres)(ed to ha%e (isappropriated s)ch contrib)tions and
shall s)ffer the penalties pro%ided for in Article 61, of the *e%ised Penal Code.
Any e(ployer who shall ded)ct directly or indirectly fro( the co(pensation of the co%ered e(ployees or otherwise
reco%er fro( the( his own contrib)tion on behalf of s)ch e(ployees shall be p)nished by a fine not e'ceedin# 1ne
tho)sand pesos AP1,>>>= ()ltiplied by the total n)(ber of e(ployees e(ployed by the fir(, or i(prison(ent not
e'ceedin# one A1= year, or both fine and i(prison(ent, at the discretion of the Co)rt.
7f the act or o(ission penali;ed by this Act be co((itted by an association, partnership, corporation or any other
instit)tion, its (ana#in# directors or partners or president or #eneral (ana#er, or other persons responsible for the
co((ission of the said act shall be liable for the penalties pro%ided for in this Act and other laws for the offense.
Any e(ployee of the Corporation who recei%es or keeps f)nds or property belon#in#, payable or deli%erable to the
Corporation, and who shall appropriate the sa(e, or shall take or (isappropriate or shall consent, or thro)#h
abandon(ent or ne#li#ence, shall per(it any other person to take s)ch property or f)nds wholly or partially, shall
likewise be liable for (isappropriation of f)nds or property and shall s)ffer i(prison(ent of not less than si' A+= years
and not (ore than twel%e A1"= years and a fine of not less than Ten tho)sand pesos AP1>,>>>= nor (ore than Twenty
tho)sand pesos AP">,>>>=. Any shorta#e of the f)nds or loss of the property )pon a)dit shall be dee(ed %r#m( f($#"
e%idence of the offense.
All other %iolations in%ol%in# f)nds of the Corporation shall be #o%erned by the applicable pro%isions of the *e%ised
Penal Code or other laws, takin# into consideration the r)les on collection, re(ittances, and in%est(ent of f)nds as
(ay be pro()l#ated by the Corporation.
A*T7CL5 D7
APP*1P*7AT71$&
&5C. ,. I&##(* A%%ro%r#(#o&. 4 The )ne'pended portion of the b)d#et of the Philippine Medical Care Co((ission
APMCC= for the year d)rin# which this Act was appro%ed shall be )tili;ed for establishin# the Corporation and
initiatin# its operations, incl)din# the for()lation of the r)les and re#)lation necessary for the i(ple(entation of this
Act. 7n addition, initial f)ndin# shall co(e fro( any )nappropriated b)t a%ailable f)nd of the Fo%ern(ent.
&5C. +. S,1'"5,"& A%%ro%r#(#o&'. 4 &tartin# 199, and thereafter, twenty-fi%e percent A",K= of the incre(ent in
total re%en)e collected )nder *ep)blic Act $o. 7+, shall be appropriated in the Feneral Appropriations Act solely for
the $ational .ealth 7ns)rance 2)nd.
7n addition, startin# 199+ and thereafter, twenty-fi%e percent A",K= of the incre(ental re%en)e fro( the increase in
the doc)(entary sta(p ta'es )nder *ep)blic Act $o. 7++> shall likewise be appropriated solely for the said f)nd.
&5C. 7. A++##o&(* A%%ro%r#(#o&'. 4 The Corporation (ay re<)est Con#ress to appropriate s)pple(ental f)ndin# to
(eet tar#etted (ilestones of the Pro#ra( in accordance with &ection 1>Ad= of this Act.
A*T7CL5 D77
T*A$&7T1*@ P*1/7&71$&
&5C. E. A%%o#&m"& of Bo(r+ M"m1"r'.4 3ithin thirty A6>= days fro( the date of effecti%ity of this Act, the President
of the Philippines shall appoint the (e(bers of the 0oard and the President of the Corporation.
&5C. 9. Im%*"m"&#&. R,*"' (&+ R".,*(#o&'. 4 3ithin thirty A6>= days fro( the co(pletion of s)ch appoint(ents,
the 0oard shall con%ene to for()late the r)les and re#)lations necessary for the i(ple(entation of this Act.
&5C. ,>. Prom,*.(#o&. 4 3ithin one year fro( its initial (eetin#, the 0oard shall pro()l#ate the afore(entioned
r)les and re#)lations in at least two A"= national newspapers of #eneral circ)lation. 0)t )ntil s)ch ti(e that the
Corporation shall ha%e pro()l#ated said r)les and re#)lations, the e'istin# r)les and re#)lations of the PMCC shall
be followed. The present Medicare Pro#ra( shall contin)e to be so ad(inistered, )ntil the Corporation8s 0oard
dee(s the new syste( as ready for i(ple(entation in accordance with the pro%isions of this Act.
&5C. ,1. M"r."r. 4 3ithin si'ty A+>= days fro( the pro()l#ation of the i(ple(entin# r)les and re#)lations, all
f)nctions and assets of the Philippine Medical Care Co((ission shall be (er#ed with those of the Corporation
witho)t need of con%eyance, transfer or assi#n(ent. The PMCC shall thereafter cease to e'ist.
The liabilities of the PMCC shall be treated in accordance with the e'istin# laws and pertinent r)les and re#)lations.
To the #reatest e'tent possible and in accordance with e'istin# laws, all e(ployees of the PMCC shall be absorbed
by the Corporation.
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&5C. ,". Tr(&'f"r of !" H"(*! I&',r(&$" F,&+' of !" SSS (&+ GSIS. 4 The .ealth 7ns)rance 2)nds bein#
ad(inistered by the &&& and F&7& shall be transferred to the Corporation within si'ty A+>= days fro( the
pro()l#ation of the i(ple(entin# r)les and re#)lations. The &&& and F&7& shall, howe%er, contin)e to perfor(
Medicare f)nctions )nder contract with the Corporation )ntil s)ch ti(e that s)ch f)nctions are ass)(ed by the
Corporation, in accordance with the followin# &ection.
&5C. ,6. Tr(&'f"r of !" M"+#$(r" F,&$#o&' of !" SSS (&+ GSIS. 4 3ithin fi%e A,= years fro( the pro()l#ation of
the i(ple(entin# r)les and re#)lations, the f)nctions, assets, e<)ip(ent, records, operatin# syste(, and liabilities, if
any, of the Medicare operations of the &&& and F&7& shall be transferred to the CorporationC Pro8#+"+, !o)"8"r,
That the &&& and F&7& shall contin)e perfor(in# its Medicare f)nctions beyond the stip)lated fi%e-year period if
s)ch e'tension will benefit Pro#ra( (e(bers, as deter(ined by the Corporation.
Personnel of the Medicare depart(ents of the &&& and F&7& shall be #i%en priority in the hirin# of the Corporation8s
e(ployees.
A*T7CL5 D777
M7&C5LLA$51:& P*1/7&71$&
&5C. ,. O8"r'#.! Pro8#'#o&. 4 Con#ress shall cond)ct a re#)lar re%iew of the $ational .ealth 7ns)rance Pro#ra(
which shall entail a syste(atic e%al)ation of the Pro#ra(8s perfor(ance, i(pact or acco(plish(ents with respect to
its ob4ecti%es or #oals. &)ch re%iew shall be )ndertaken by the Co((ittee of the &enate and the .o)se of
*epresentati%es which ha%e le#islati%e 4)risdiction o%er the Pro#ra(.
&5C. ,,. I&form(#o& C(m%(#.&. 4 There shall be pro%ided a s)bstantial period of ti(e to )ndertake an intensi%e
p)blic infor(ation ca(pai#n prior to the i(ple(entation of the r)les and re#)lations of this Act.
&5C. ,+. S"%(r(1#*#0 C*(,'". 4 7n the e%ent any pro%ision of this Act or the application of s)ch pro%ision to any
person or circ)(stances is declared in%alid, the re(ainder of this Act or the application of said pro%isions to other
persons or circ)(stances shall not be affected by s)ch declaration.
&5C. ,7. R"%"(*#&. C*(,'". 4 5'ec)ti%e 1rder 119, Presidential Decree 1,19 and other laws c)rrently applyin# to the
ad(inistration of Medicare are hereby repealed. All other laws, e'ec)ti%e orders, ad(inistrati%e r)les and re#)lations
or parts thereof which are inconsistent with the pro%isions of this Act are also hereby a(ended, (odified, or repealed
accordin#ly.
&5C. ,E. Go8"r&m"& G,(r(&"". 4 The Fo%ern(ent of the Philippines #)arantees the financial %iability of the
Pro#ra(.
&5C. ,9. Eff"$#8#0. 4 This Act shall take effect fifteen A1,= days after its p)blication in at least three A6= national
newspaper of #eneral circ)lation.
Appro%ed C F"1r,(r0 G3, G@@<
1CC:PAT71$AL .5ALT. A$D &A25T@ &TA$DA*D&

A*T. 1+". SAFETY AND HEALTH STANDARDS
The &ecretary of Labor shall, by appropriate orders, set and enforce (andatory occ)pational safety
and health standards to eli(inate or red)ce occ)pational safety and health ha;ards in all workplaces and instit)te
new, and )pdate e'istin#, pro#ra(s to ens)re safe and healthf)l workin# conditions in all places of e(ploy(ent.
A*T. 1+6. RESEARCH
7t shall be the responsibility of the Depart(ent of Labor 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 safety and health proble(sJ
to disco%er latent diseases by establishin# ca)sal connections between diseases and work in en%iron(ental
conditionsJ and to de%elop (edical criteria which will ass)re insofar as practicable that no e(ployee will s)ffer
i(pair(ent or di(in)tion in health, f)nctional capacity, or life e'pectancy as a res)lt of his work and workin#
conditions.
A*T. 1+. TRAINING PROGRAMS
The Depart(ent of Labor shall de%elop and i(ple(ent trainin# pro#ra(s to increase the n)(ber
and co(petence of personnel in the field of occ)pational and safety and ind)strial health.
A*T. 1+,. ADMINISTRATION OF SAFETY AND HEALTH LAW
Aa.= The Dept. of Labor shall be solely responsible for the ad(inistration and enforce(ent of occ)pational
safety and health laws, re#)lations and standards in all establish(ents and workplaces where%er they (ay be
locatedJ howe%er, chartered cities (ay be allowed to cond)ct ind)strial safety inspections of establish(ents within
their respecti%e 4)risdictions where they ha%e ade<)ate facilities and co(petent personnel for the p)rpose as
deter(ined by the Depart(ent of labor and s)b4ect to national standards established by the latter.
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Ab.= The &ecretary of Labor (ay, thro)#h appropriate re#)lations, collect reasonable fees for the inspection
of stea( boilers, press)re %essels and pipin#s and electrical installations, and test and 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)ry to the credit of the
occ)pational safety and health f)nd and shall be e'pended e'cl)si%ely for the ad(inistration and enforce(ent of
safety and other labor laws ad(inistered by the Depart(ent of Labor.
C1/5*AF5 12 *:L5& 1$ 1CC:PAT71$AL .5ALT. A$D &A25T@ &TA$DA*D&
A&ec. 1, *)le 77, 0k 7/, 7**.=
All establish(ents, workplaces, and other )ndertakin#s, incl)din# a#ric)lt)ral enterprises, whether
operated for profit or not.
5DC5PT71$&C
1. Those en#a#ed in land, sea and air transportationJ Pro%ided, That their dry docks, #ara#es,
han#ars, (aintenance and repair shops and offices, shall be co%ered by this *)leJ
". *esidential places e'cl)si%ely de%oted to dwellin# p)rposes.
8.
26. S+CIAL LE;ISLATI+*
&1C7AL &5C:*7T@ ACT 12 1997

*5P:0L7C ACT $1. E"E"

A$ ACT 2:*T.5* &T*5$FT.5$7$F T.5 &1C7AL &5C:*7T@ &@&T5M T.5*50@ AM5$D7$F 21* T.7&
P:*P1&5, *5P:0L7C ACT $1. 11+1, A& AM5$D5D, 1T.5*37&5 I$13$ A& T.5 &1C7AL &5C:*7T@ LA3.
SECTION G. *ep)blic Act $o. 11+1, as a(ended, otherwise known as the TSo$#(* S"$,r#0 L()T, is hereby f)rther
a(ended to read as followsC
M&5CT71$ 1. S!or T#*". - This Act shall be known as the TSo$#(* S"$,r#0 A$ of G@@>.T
M&5C. ". D"$*(r(#o& of Po*#$0. - 7t is the policy of the *ep)blic of the Philippines to establish, de%elop, pro(ote and
perfect a so)nd and %iable ta'-e'e(pt social sec)rity ser%ice s)itable to the needs of the people thro)#ho)t the
Philippines which shall pro(ote social 4)stice and pro%ide (eanin#f)l protection to (e(bers and their beneficiaries
a#ainst the ha;ards of disability, sickness, (aternity, old a#e, death, and other contin#encies res)ltin# in loss of
inco(e or financial b)rden. Towards this end, the &tate shall endea%or to e'tend social sec)rity protection to workers
and their beneficiaries.
M&5C. 6. So$#(* S"$,r#0 S0'"m. - Aa= To carry o)t the p)rposes of this Act, the &ocial &ec)rity &yste(, hereinafter
referred to as VSSSM, a corporate body, with principal place of b)siness in Metro Manila, Philippines is hereby created.
The &&& shall be directed and controlled by a &ocial &ec)rity Co((ission, hereinafter referred to as VComm#''#o&M,
co(posed of the &ecretary of Labor and 5(ploy(ent or his d)ly desi#nated )ndersecretary, the &&& president and
se%en A7= appointi%e (e(bers, three A6= of who( shall represent the workers8 #ro)p, at least one of who( shall be a
wo(anJ three A6=, the e(ployers8 #ro)p, at least one A1= of who( shall be a wo(anJ and one A1=, the #eneral p)blic
whose representati%e shall ha%e ade<)ate knowled#e and e'perience re#ardin# social sec)rity, to be appointed by
the President of the Philippines. The si' A+= (e(bers representin# workers and e(ployers shall be chosen fro(
a(on# the no(inees of workers8 and e(ployers8 or#ani;ations, respecti%ely. The Chair(an of the Co((ission shall
be desi#nated by the President of the Philippines fro( a(on# its (e(bers. The ter( of the appointi%e (e(bers shall
be three A6= yearsC Pro8#+"+, That the ter(s of the first si' A+= appointi%e (e(bers shall be one A1=, two A"= and three
A6= years for e%ery two (e(bers, respecti%elyC Pro8#+"+, f,r!"r, That they shall contin)e to hold office )ntil their
s)ccessors shall ha%e been appointed and d)ly <)alified. All %acancies, prior to the e'piration of the ter(, shall be
filled for the )ne'pired ter( only. The appointi%e (e(bers of the Co((ission shall recei%e at least two tho)sand fi%e
h)ndred pesos AP",,>>.>>= per die( for each (eetin# act)ally attended by the( b)t not to e'ceed Ten tho)sand
pesos AP1>,>>>.>>= a (onthCC Pro8#+"+, That (e(bers of the Co((ission shall also recei%e a per die( of at least
Two tho)sand fi%e h)ndred pesos AP",,>>.>>= b)t not to e'ceed 2ifteen tho)sand pesos AP1,,>>>.>>= a (onthC
Pro8#+"+ , f,r!"r, That said (e(bers of the Co((ission shall also recei%e reasonable transportation and
representation allowances as (ay be fi'ed by the Co((ission, b)t not to e'ceed Ten tho)sand pesos AP1>,>>>.>>=
a (onth.
MAb= The #eneral cond)ct of the operations and (ana#e(ent f)nctions of the &&& shall be %ested in the &&&
President who shall ser%e as the chief e'ec)ti%e officer i((ediately responsible for carryin# o)t the pro#ra( of the
&&& and the policies of the Co((ission. The &&& President shall be a person who has had pre%io)s e'perience in
the technical and ad(inistrati%e fields related to the p)rposes of this Act. .e shall be appointed by the President of
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the Philippines and shall recei%e salary to be fi'ed by the Co((ission with the appro%al of the President of the
Philippines, payable fro( the f)nds of the &&&.
MAc= The Co((ission, )pon the reco((endation of the &&& President, shall appoint an act)ary, and s)ch other
personnel as (ay be dee(ed necessary, fi' their reasonable co(pensation, allowances and other benefits, prescribe
their d)ties and establish s)ch (ethods and proced)res as (ay be necessary to ins)re the efficient, honest and
econo(ical ad(inistration of the pro%isions and p)rposes of this ActC Pro8#+"+, !o)"8"r, That the personnel of the
&&& below the rank of /ice-President shall be appointed by the &&& PresidentC Pro8#+"+, f,r!"r, That the personnel
appointed by the &&& President, e'cept those below the rank of assistant (ana#er, shall be s)b4ect to the
confir(ation by the Co((issionC Pro8#+"+, f,r!"r, That the personnel of the &&& shall be selected only fro( ci%il
ser%ice eli#ibles and be s)b4ect to ci%il ser%ice r)les and re#)lationsC Pro8#+"+, f#&(**0, That the &&& shall be e'e(pt
fro( the pro%isions of *ep)blic Act $o. +7,E and *ep)blic Act $o. 76>.
M&5C. . Po)"r' (&+ D,#"' of !" Comm#''#o& (&+ SSS. 4 Aa= T!" Comm#''#o&. - 2or the attain(ent of its (ain
ob4ecti%es as set forth in &ection " hereof, the Co((ission shall ha%e the followin# powers and d)tiesC
MA1= To adopt, a(end and rescind, s)b4ect to the appro%al of the President of the Philippines, s)ch r)les and
re#)lations as (ay be necessary to carry o)t the pro%isions and p)rposes of this ActJ
MA"= To establish a pro%ident f)nd for the (e(bers which will consist of %ol)ntary contrib)tions of e(ployers andBor
e(ployees, self-e(ployed and %ol)ntary (e(bers and their earnin#s, for the pay(ent of benefits to s)ch (e(bers
or their beneficiaries, s)b4ect to s)ch r)les and re#)lations as it (ay pro()l#ate and appro%ed by the President of
the PhilippinesJ
MA6= To (aintain a pro%ident f)nd which consists of contrib)tions (ade by both the &&& and its officials and
e(ployees and their earnin#s, for the pay(ent of benefits to s)ch officials and e(ployees or their heirs )nder s)ch
ter(s and conditions as it (ay prescribeJ
MA= To appro%e restr)ct)rin# proposals for the pay(ent of d)e b)t )nre(itted contrib)tions and )npaid loan
a(orti;ations )nder s)ch ter(s and conditions as it (ay prescribeJ
MA,= To a)thori;e cooperati%es re#istered with the cooperati%e de%elop(ent a)thority or associations re#istered with
the appropriate #o%ern(ent a#ency to act as collectin# a#ents of the &&& with respect to their (e(bersC Pro8#+"+,
That the &&& shall accredit the cooperati%e or associationC Pro8#+"+, f,r!"r, That the persons a)thori;ed to collect
are bondedJ
MA+= To co(pro(ise or release, in whole or in part, any interest, penalty or any ci%il liability to &&& in connection with
the in%est(ents a)thori;ed )nder &ection "+ hereof, )nder s)ch ter(s and conditions as it (ay prescribe and
appro%ed by the President of the PhilippinesJ and
MA7= To appro%e, confir(, pass )pon or re%iew any and all actions of the &&& in the proper and necessary e'ercise of
its powers and d)ties hereinafter en)(erated.
MAb= T!" So$#(* S"$,r#0 S0'"m. - &)b4ect to the pro%ision of &ection fo)r A=, para#raph se%en A7= hereof, the &&&
shall ha%e the followin# powers and d)tiesC
MA1= To s)b(it ann)ally not later than April 6>, a p)blic report to the President of the Philippines and to the Con#ress
of the Philippines co%erin# its acti%ities in the ad(inistration and enforce(ent of this Act d)rin# the precedin# year
incl)din# infor(ation and reco((endations on broad policies for the de%elop(ent and perfection of the pro#ra( of
the &&&J
MA"= To re<)ire the act)ary to s)b(it a %al)ation report on the &&& benefit pro#ra( e%ery fo)r A= years, or (ore
fre<)ently as (ay be necessary, to )ndertake the necessary act)arial st)dies and calc)lations concernin# increases
in benefits takin# into acco)nt inflation and the financial stability of the &&&, and to pro%ide for feasible increases in
benefits e%ery fo)r A= years, incl)din# the addition of new ones, )nder s)ch r)les and re#)lations as the Co((ission
(ay adopt, s)b4ect to the appro%al of the President of the PhilippinesC Pro8#+"+, That the act)arial so)ndness of the
reser%e f)nd shall be #)aranteedC Pro8#+"+, f,r!"r, That s)ch increases in benefits shall not re<)ire any increase in
the rate of contrib)tionJ
MA6= To establish offices of the &&& to co%er as (any pro%inces, cities and con#ressional districts, whene%er and
where%er it (ay be e'pedient, necessary and feasible, and to inspect or ca)se to be inspected periodically s)ch
officesJ
MA= To enter into a#ree(ents or contracts for s)ch ser%ice and aid, as (ay be needed for the proper, efficient and
stable ad(inistration of the &&&J
MA,= To adopt, fro( ti(e to ti(e, a b)d#et of e'pendit)res incl)din# salaries of personnel, a#ainst all f)nds a%ailable
to the &&& )nder this ActJ
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MA+= To set )p its acco)ntin# syste( and pro%ide the necessary personnel thereforJ
MA7= To re<)ire reports, co(pilations and analyses of statistical and econo(ic data and to (ake in%esti#ation as (ay
be needed for the proper ad(inistration and de%elop(ent of the &&&J
MAE= To ac<)ire and dispose of property, real or personal, which (ay be necessary or e'pedient for the attain(ent of
the p)rposes of this ActJ
MA9= To ac<)ire, recei%e, or hold, by way of p)rchase, e'propriation or otherwise, p)blic or pri%ate property for the
p)rpose of )ndertakin# ho)sin# pro4ects preferably for the benefit of low-inco(e (e(bers and for the (aintenance of
hospitals and instit)tions for the sick, a#ed and disabled, as well as schools for the (e(bers and their i((ediate
fa(iliesJ
MA1>= To s)e and be s)ed in co)rtJ and
MA11= To perfor( s)ch other corporate acts as it (ay dee( appropriate for the proper enforce(ent of this Act.
M&5C. ,. S"*"m"& of D#'%,"'. - Aa= Any disp)te arisin# )nder this Act with respect to co%era#e, benefits,
contrib)tions and penalties thereon or any other (atter related thereto, shall be co#ni;able by the Co((ission, and
any case filed with respect thereto shall be heard by the Co((ission, or any of its (e(bers, or by hearin# officers
d)ly a)thori;ed by the Co((ission and decided within twenty A">= days after the s)b(ission of the e%idence. The
filin#, deter(ination and settle(ent of disp)tes shall be #o%erned by the r)les and re#)lations pro()l#ated by the
Co((ission.
MAb= A%%"(* o Co,r'. - Any decision of the Co((ission, in the absence of an appeal therefro( as herein pro%ided,
shall beco(e final and e'ec)tory fifteen A1,= days after the date of notification, and 4)dicial re%iew thereof shall be
per(itted only after any party clai(in# to be a##rie%ed thereby has e'ha)sted his re(edies before the Co((ission.
The Co((ission shall be dee(ed to be a party to any 4)dicial action in%ol%in# any s)ch decision, and (ay be
represented by an attorney e(ployed by the Co((ission, or when re<)ested by the Co((ission, by the &olicitor
Feneral or any p)blic prosec)tors.
MAc= Co,r R"8#"). 4 The decision of the Co((ission )pon any disp)ted (atter (ay be re%iewed both )pon the law
and the facts by the Co)rt of Appeals. 2or the p)rpose of s)ch re%iew, the proced)re concernin# appeals fro( the
*e#ional Trial Co)rt shall be followed as far as practicable and consistent with the p)rposes of this Act. Appeal fro(
a decision of the Co((ission ()st be taken within fifteen A1,= days fro( notification of s)ch decision. 7f the decision
of the Co((ission in%ol%es only <)estions of law, the sa(e shall be re%iewed by the &)pre(e Co)rt. $o appeal
bond shall be re<)ired. The case shall be heard in a s)((ary (anner, and shall take precedence o%er all cases,
e'cept that in the &)pre(e Co)rt, cri(inal cases wherein life i(prison(ent or death has been i(posed by the trial
co)rt shall take precedence. $o appeal shall act as a ',%"r'"+"(' or a stay of the order of the Co((ission )nless
the Co((ission itself, or the Co)rt of Appeals or the &)pre(e Co)rt, shall so order.
MAd= E9"$,#o& of D"$#'#o&'. - The Co((ission (ay, mo, %ro%r#o or on (otion of any interested party, iss)e a writ of
e'ec)tion to enforce any of its decisions or awards, after it has beco(e final and e'ec)tory, in the sa(e (anner as
the decision of the *e#ional Trial Co)rt by directin# the city or pro%incial sheriff or the sheriff who( it (ay appoint to
enforce s)ch final decision or e'ec)te s)ch writJ and any person who shall fail or ref)se to co(ply with s)ch decision,
award or writ, after bein# re<)ired to do so shall, )pon application by the Co((ission p)rs)ant to *)le 71 of the
*)les of Co)rt, be p)nished for conte(pt.
M&5C. +. A,+#or (&+ Co,&'"*. - Aa= The Chair(an of the Co((ission on A)dit shall be the "94off#$#o A)ditor of the
&&&. .e or his representati%e shall check and a)dit all the acco)nts, f)nds and properties of the &&& in the sa(e
(anner and as fre<)ently as the acco)nts, f)nds and properties of the #o%ern(ent are checked and a)dited )nder
e'istin# laws, and he shall ha%e, as far as practicable, the sa(e powers and d)ties as he has with respect to the
checkin# and a)ditin# of p)blic acco)nts, f)nds and properties in #eneral.
MAb= The &ecretary of 9)stice shall be the "94off#$#o co)nsel of the &&&. .e or his representati%e shall act as le#al
ad%iser and co)nsel thereof.
M&5C. 7. O(!', W#&"''"', (&+ Pro+,$#o& of R"$or+'. - 3hen a)thori;ed by the Co((ission, an official or
e(ployee thereof shall ha%e the power to ad(inister oath and affir(ation, take depositions, certify to official acts, and
iss)e ',1%o"&( and ',1%o"&( +,$"' "$,m to co(pel the attendance of witnesses and the prod)ction of books,
papers, correspondence and other records dee(ed necessary as e%idence in connection with any <)estion arisin#
)nder this Act. Any case of cont)(acy shall be dealt with by the Co((ission in accordance with law.
M&5C. E. T"rm' D"f#&"+. - 2or p)rposes of this Act, the followin# ter(s shall, )nless the conte't indicates otherwise,
ha%e the followin# (eanin#sC
MAa= SSS - The &ocial &ec)rity &yste( created by this Act.
MAb= Comm#''#o& 4 The &ocial &ec)rity Co((ission as herein created.
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MAc= Em%*o0"r4 Any person, nat)ral or 4)ridical, do(estic or forei#n, who carries on in the Philippines any trade,
b)siness, ind)stry, )ndertakin#, or acti%ity of any kind and )ses the ser%ices of another person who is )nder his
orders as re#ards the e(ploy(ent, e'cept the Fo%ern(ent and any of its political s)bdi%isions, branches or
instr)(entalities, incl)din# corporations owned or controlled by the Fo%ern(entC Pro8#+"+, That a self-e(ployed
person shall be both e(ployee and e(ployer at the sa(e ti(e.
MAd= Em%*o0"" - Any person who perfor(s ser%ices for an e(ployer in which either or both (ental or physical efforts
are )sed and who recei%es co(pensation for s)ch ser%ices, where there is an e(ployer-e(ployee relationshipC
Pro8#+"+, That a self-e(ployed person shall be both e(ployee and e(ployer at the sa(e ti(e.
MAe= D"%"&+"&' 4 The dependents shall be the followin#C
MA1= The le#al spo)se entitled by law to recei%e s)pport fro( the (e(berJ
MA"= The le#iti(ate, le#iti(ated or le#ally adopted, and ille#iti(ate child who is )n(arried, not #ainf)lly e(ployed, and
has not reached twenty-one A"1= years of a#e, or if o%er twenty-one A"1= years of a#e, he is con#enitally or while still
a (inor has been per(anently incapacitated and incapable of self-s)pport, physically or (entallyJ and
MA6= The parent who is recei%in# re#)lar s)pport fro( the (e(ber.
MAf= Com%"&'(#o& 4 All act)al re()neration for e(ploy(ent, incl)din# the (andated cost-of-li%in# allowance, as well
as the cash %al)e of any re()neration paid in any (edi)( other than cash e'cept that part of the re()neration in
e'cess of the (a'i()( salary credit as pro%ided )nder &ection 5i#hteen of this Act.
MA#= Mo&!*0 '(*(r0 $r"+# 4 The co(pensation base for contrib)tions and benefits as indicated in the sched)le in
&ection 5i#hteen of this Act.
MAh= Mo&!*0 4 The period fro( one end of the last payroll period of the precedin# (onth to the end of the last payroll
period of the c)rrent (onth if co(pensation is on ho)rly, daily or weekly basisJ if on any other basis, Vmo&!*0M shall
(ean a period of one A1= (onth.
MAi= Co&r#1,#o& 4 The a(o)nt paid to the &&& by and on behalf of the (e(bers in accordance with &ection 5i#hteen
of this Act.
MA4= Em%*o0m"& - Any ser%ice perfor(ed by an e(ployee for his e(ployer e'ceptC
MA1= 5(ploy(ent p)rely cas)al and not for the p)rpose of occ)pation or b)siness of the e(ployerJ
MA"= &er%ice perfor(ed on or in connection with an alien %essel by an e(ployee if he is e(ployed
when s)ch %essel is o)tside the PhilippinesJ
MA6= &er%ice perfor(ed in the e(ploy of the Philippine Fo%ern(ent or instr)(entality or a#ency
thereofJ
MA= &er%ice perfor(ed in the e(ploy of a forei#n #o%ern(ent or international or#ani;ation, or their
wholly-owned instr)(entalityC Pro8#+"+, !o)"8"r, That this e'e(ption notwithstandin#, any forei#n
#o%ern(ent, international or#ani;ation or their wholly-owned instr)(entality e(ployin# workers in
the Philippines or e(ployin# 2ilipinos o)tside of the Philippines, (ay enter into an a#ree(ent with
the Philippine Fo%ern(ent for the incl)sion of s)ch e(ployees in the &&& e'cept those already
co%ered by their respecti%e ci%il ser%ice retire(ent syste(sC Pro8#+"+, f,r!"r, That the ter(s of
s)ch a#ree(ent shall confor( with the pro%isions of this Act on co%era#e and a(o)nt of pay(ent
of contrib)tions and benefitsC Pro8#+"+, f#&(**0, That the pro%isions of this Act shall be
s)pple(entary to any s)ch a#ree(entJ and
MA,= &)ch other ser%ices perfor(ed by te(porary and other e(ployees which (ay be e'cl)ded by
re#)lation of the Co((ission. 5(ployees of 1o&( f#+" independent contractors shall not be
dee(ed e(ployees of the e(ployer en#a#in# the ser%ice of said contractors.
MAk= B"&"f#$#(r#"' 4 The dependent spo)se )ntil he or she re(arries, the dependent le#iti(ate, le#iti(ated or le#ally
adopted, and ille#iti(ate children, who shall be the pri(ary beneficiaries of the (e(berC Pro8#+"+, That the
dependent ille#iti(ate children shall be entitled to fifty percent A,>K= of the share of the le#iti(ate, le#iti(ated or
le#ally adopted childrenC Pro8#+"+, f,r!"r, That in the absence of the dependent le#iti(ate, le#iti(ated children of
the (e(ber, hisBher dependent ille#iti(ate children shall be entitled to one h)ndred percent A1>>K= of the benefits. 7n
their absence, the dependent parents who shall be the secondary beneficiaries of the (e(ber. 7n the absence of all
the fore#oin#, any other person desi#nated by the (e(ber as hisBher secondary beneficiary.
MAl= Co&#&."&$0 4 The retire(ent, death, disability, in4)ry or sickness and (aternity of the (e(ber.
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MA(= A8"r(." mo&!*0 '(*(r0 $r"+# - The res)lt obtained by di%idin# the s)( of the last si'ty A+>= (onthly salary
credits i((ediately precedin# the se(ester of contin#ency by si'ty A+>=, or the res)lt obtained by di%idin# the s)( of
all the (onthly salary credits paid prior to the se(ester of contin#ency by the n)(ber of (onthly contrib)tions paid in
the sa(e period, whiche%er is #reaterC Pro8#+"+, That the in4)ry or sickness which ca)sed the disability shall be
dee(ed as the per(anent disability for the p)rpose of co(p)tin# the a%era#e (onthly salary credit.
MAn= A8"r(." +(#*0 '(*(r0 $r"+#4 The res)lt obtained by di%idin# the s)( of the si' A+= hi#hest (onthly salary credits in
the twel%e-(onth period i((ediately precedin# the se(ester of contin#ency by one h)ndred ei#hty A1E>=.
MAo= S"m"'"r 4 A period of two A"= consec)ti%e <)arters endin# in the <)arter of contin#ency.
MAp= P,(r"r 4 A period of three A6= consec)ti%e calendar (onths endin# on the last day of March, 9)ne, &epte(ber
and Dece(ber.
MA<= Cr"+#"+ 0"(r' of '"r8#$" 4 2or a (e(ber co%ered prior to 9an)ary nineteen h)ndred and ei#hty fi%e A19E,=
(in)s the calendar year of co%era#e pl)s the n)(ber of calendar years in which si' A+= or (ore contrib)tions ha%e
been paid fro( 9an)ary nineteen h)ndred and ei#hty fi%e A19E,= )p to the calendar year containin# the se(ester
prior to the contin#ency. 2or a (e(ber co%ered in or after 9an)ary nineteen h)ndred and ei#hty fi%e A19E,=, the
n)(ber of calendar years in which si' A+= or (ore contrib)tions ha%e been paid fro( the year of co%era#e )p to the
calendar year containin# the se(ester prior to the contin#encyC Pro8#+"+, That the Co((ission (ay pro%ide for a
different n)(ber of contrib)tions in a calendar year for it to be considered as a credited year of ser%ice.
MAr= M"m1"r - The worker who is co%ered )nder &ection $ine and &ection $ine-A of this Act.
MAs= S"*f4"m%*o0"+ - Any person whose inco(e is not deri%ed fro( e(ploy(ent, as defined )nder this Act, as well as
those workers en)(erated in &ection $ine-A hereof.
MAt= N" "(r&#&.' - $et inco(e before inco(e ta'es pl)s non-cash char#es s)ch as depreciation and depletion
appearin# in the re#)lar financial state(ent of the iss)in# or ass)(in# instit)tion.
MA)= F#9"+ $!(r."' - *ec)rrin# e'pense s)ch as a(orti;ation of debt disco)nt or rentals for leased properties,
incl)din# interest on f)nded and )nf)nded debt.
M&5C. 9. Co8"r(.". 4 Aa= Co%era#e in the &&& shall be co(p)lsory )pon all e(ployees not o%er si'ty A+>= years of
a#e and their e(ployersC Pro8#+"+, That in the case of do(estic helpers, their (onthly inco(e shall not be less than
1ne tho)sand pesos AP1,>>>.>>= a (onthC Pro8#+"+, f,r!"r, That any benefit already earned by the e(ployees
)nder pri%ate benefit plans e'istin# at the ti(e of the appro%al of this Act shall not be discontin)ed, red)ced or
otherwise i(pairedC Pro8#+"+, f,r!"r, That pri%ate plans which are e'istin# and in force at the ti(e of co(p)lsory
co%era#e shall be inte#rated with the plan of the &&& in s)ch a way where the e(ployer8s contrib)tion to his pri%ate
plan is (ore than that re<)ired of hi( in this Act, he shall pay to the &&& only the contrib)tion re<)ired of hi( and he
shall contin)e his contrib)tion to s)ch pri%ate plan less his contrib)tion to the &&& so that the e(ployer8s total
contrib)tion to his benefit plan and to the &&& shall be the sa(e as his contrib)tion to his pri%ate benefit plan before
the co(p)lsory co%era#eC Pro8#+"+, f,r!"r, That any chan#es, ad4)st(ents, (odifications, eli(inations or
i(pro%e(ents in the benefits to be a%ailable )nder the re(ainin# pri%ate plan, which (ay be necessary to adopt by
reason of the red)ced contrib)tions thereto as a res)lt of the inte#ration, shall be s)b4ect to a#ree(ents between the
e(ployers and e(ployees concernedC Pro8#+"+, f,r!"r, That the pri%ate benefit plan which the e(ployer shall
contin)e for his e(ployees shall re(ain )nder the e(ployer8s (ana#e(ent and control )nless there is an e'istin#
a#ree(ent to the contraryC Pro8#+"+, f#&(**0, That nothin# in this Act shall be constr)ed as a li(itation on the ri#ht of
e(ployers and e(ployees to a#ree on and adopt benefits which are o%er and abo%e those pro%ided )nder this Act.
MAb= &po)ses who de%ote f)ll ti(e to (ana#in# the ho)sehold and fa(ily affairs, )nless they are also en#a#ed in
other %ocation or e(ploy(ent which is s)b4ect to (andatory co%era#e, (ay be co%ered by the &&& on a %ol)ntary
basis.
MAc= 2ilipinos recr)ited by forei#n-based e(ployers for e(ploy(ent abroad (ay be co%ered by the &&& on a
%ol)ntary basis.
M&5C. 9-A. Com%,*'or0 Co8"r(." of !" S"*f4Em%*o0"+. - Co%era#e in the &&& shall also be co(p)lsory )pon s)ch
self-e(ployed persons as (ay be deter(ined by the Co((ission )nder s)ch r)les and re#)lations as it (ay
prescribe, incl)din# b)t not li(ited to the followin#C
M1. All self-e(ployed professionalsJ
M". Partners and sin#le proprietors of b)sinessesJ
M6. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the
ter( T"m%*o0""T in &ection E Ad= of this ActJ
M. Professional athletes, coaches, trainers and 4ockeysJ and
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M,. 7ndi%id)al far(ers and fisher(en.
M:nless otherwise specified herein, all pro%isions of this Act applicable to co%ered e(ployees shall also be applicable
to the co%ered self-e(ployed persons.
M&5C. 1>. Eff"$#8" D(" of Co8"r(.". - Co(p)lsory co%era#e of the e(ployer shall take effect on the first day of his
operation and that of the e(ployee on the day of his e(ploy(entC Pro8#+"+, That the co(p)lsory co%era#e of the
self-e(ployed person shall take effect )pon his re#istration with the &&&.
M&5C. 11. Eff"$ of S"%(r(#o& from Em%*o0m"&. - 3hen an e(ployee )nder co(p)lsory co%era#e is separated fro(
e(ploy(ent, his e(ployer8s contrib)tion on his acco)nt and his obli#ation to pay contrib)tions arisin# fro( that
e(ploy(ent shall cease at the end of the (onth of separation, b)t said e(ployee shall be credited with all
contrib)tions paid on his behalf and entitled to benefits accordin# to the pro%isions of this Act. .e (ay, howe%er,
contin)e to pay the total contrib)tions to (aintain his ri#ht to f)ll benefit.
M&5C. 11-A. Eff"$ of I&"rr,%#o& of B,'#&"'' or Prof"''#o&(* I&$om". - 7f the self-e(ployed reali;es no inco(e in
any #i%en (onth, he shall not be re<)ired to pay contrib)tions for that (onth. .e (ay, howe%er, be allowed to
contin)e payin# contrib)tions )nder the sa(e r)les and re#)lations applicable to a separated e(ployee (e(berC
Pro8#+"+, That no retroacti%e pay(ent of contrib)tions shall be allowed other than as prescribed )nder &ection
Twenty-two-A hereof.
M&5C. 1". Mo&!*0 P"&'#o&. - Aa= The (onthly pension shall be the hi#hest of the followin# a(o)ntsC
MA1= The s)( of the followin#C
MAi= Three h)ndred pesos AP6>>.>>J pl)s
MAii= Twenty percent A">K= of the a%era#e (onthly salary creditJ pl)s
MAiii= Two percent A"K= of the a%era#e (onthly salary credit for each credited year of ser%ice in e'cess of ten A1>=
yearsJ or
MA"= 2orth percent A>K= of the a%era#e (onthly salary creditJ or
MA6= 1ne tho)sand pesos AP1,>>>.>>=C Pro8#+"+, That the (onthly pension shall in no case be paid for an a##re#ate
a(o)nt of less than si'ty A+>= (onths.
MAb= $otwithstandin# the precedin# para#raph, the (ini()( pension shall be 1ne tho)sand two h)ndred pesos
AP1,">>.>>= for (e(bers with at least ten A1>= credited years of ser%ice and Two tho)sand fo)r h)ndred pesos
AP",>>.>>= for those with twenty A">= credited years of ser%ice.
M&5C. 1"-A. D"%"&+"&'M P"&'#o&. - 3here (onthly pension is payable on acco)nt of death, per(anent total
disability or retire(ent, dependents8 pension e<)i%alent to ten percent A1>K= of the (onthly pension or Two h)ndred
fifty pesos AP",>.>>=, whiche%er is hi#her, shall also be paid for each dependent child concei%ed on or before the
date of the contin#ency b)t not e'ceedin# fi%e A,=, be#innin# with the yo)n#est and witho)t s)bstit)tionC Pro8#+"+,
That where there are le#iti(ate or ille#iti(ate children, the for(er shall be preferred.
&5C. 1"-0. R"#r"m"& B"&"f#'. - Aa= A (e(ber who has paid at least one h)ndred twenty A1">= (onthly
contrib)tions prior to the se(ester of retire(ent and whoC A1= has reached the a#e of si'ty A+>= years and is already
separated fro( e(ploy(ent or has ceased to be self-e(ployedJ or A"= has reached the a#e of si'ty-fi%e A+,= years,
shall be entitled for as lon# as he li%es to the (onthly pensionC Pro8#+"+, That he shall ha%e the option to recei%e his
first ei#hteen A1E= (onthly pensions in l)(p s)( disco)nted at a preferential rate of interest to be deter(ined by the
&&&.
MAb= A co%ered (e(ber who is si'ty A+>= years old at retire(ent and who does not <)alify for pension benefits )nder
para#raph Aa= abo%e, shall be entitled to a l)(p s)( benefit e<)al to the total contrib)tions paid by hi( and on his
behalfC Pro8#+"+, That he is separated fro( e(ploy(ent and is not contin)in# pay(ent of contrib)tions to the &&& on
his own.
MAc= The (onthly pension shall be s)spended )pon the ree(ploy(ent or res)(ption of self-e(ploy(ent of a retired
(e(ber who is less than si'ty-fi%e A+,= years old. .e shall a#ain be s)b4ect to &ection 5i#hteen and his e(ployer to
&ection $ineteen of this Act.
MAd= :pon the death of the retired (e(ber, his pri(ary beneficiaries as of the date of his retire(ent shall be entitled
to recei%e the (onthly pensionC Pro8#+"+, That if he has no pri(ary beneficiaries and he dies within si'ty A+>= (onths
fro( the start of his (onthly pension, his secondary beneficiaries shall be entitled to a l)(p s)( benefit e<)i%alent to
the total (onthly pensions correspondin# to the balance of the fi%e-year #)aranteed period, e'cl)din# the
dependents8 pension.
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MAe= The (onthly pension of a (e(ber who retires after reachin# a#e si'ty A+>= shall be the hi#her of eitherC A1= the
(onthly pension co(p)ted at the earliest ti(e he co)ld ha%e retired had he been separated fro( e(ploy(ent or
ceased to be self-e(ployed pl)s all ad4)st(ents theretoJ or A"= the (onthly pension co(p)ted at the ti(e when he
act)ally retires.
M&5C. 16. D"(! B"&"f#'. - :pon the death of a (e(ber who has paid at least thirty-si' A6+= (onthly contrib)tions
prior to the se(ester of death, his pri(ary beneficiaries shall be entitled to the (onthly pensionC Pro8#+"+, That if he
has no pri(ary beneficiaries, his secondary beneficiaries shall be entitled to a l)(p s)( benefit e<)i%alent to thirty-
si' A6+= ti(es the (onthly pension. 7f he has not paid the re<)ired thirty-si' A6+= (onthly contrib)tions, his pri(ary or
secondary beneficiaries shall be entitled to a l)(p s)( benefit e<)i%alent to the (onthly pension ti(es the n)(ber of
(onthly contrib)tions paid to the &&& or twel%e A1"= ti(es the (onthly pension, whiche%er is hi#her.
M&5C. 16-A. P"rm(&"& D#'(1#*#0 B"&"f#'. - Aa= :pon the per(anent total disability of a (e(ber who has paid at
least thirty-si' A6+= (onthly contrib)tions prior to the se(ester of disability, he shall be entitled to the (onthly
pensionC Pro8#+"+, That if he has not paid the re<)ired thirty-si' A6+= (onthly contrib)tions, he shall be entitled to a
l)(p s)( benefit e<)i%alent to the (onthly pension ti(es the n)(ber of (onthly contrib)tions paid to the &&& or
twel%e A1"= ti(es the (onthly pension, whiche%er is hi#her. A (e(ber who A1= has recei%ed a l)(p s)( benefitJ and
A"= is ree(ployed or has res)(ed self-e(ploy(ent not earlier than one A1= year fro( the date of his disability shall
a#ain be s)b4ect to co(p)lsory co%era#e and shall be considered a new (e(ber.
MAb= The (onthly pension and dependents8 pension shall be s)spended )pon the ree(ploy(ent or res)(ption of self-
e(ploy(ent or the reco%ery of the disabled (e(ber fro( his per(anent total disability or his fail)re to present
hi(self for e'a(ination at least once a year )pon notice by the &&&.
MAc= :pon the death of the per(anent total disability pensioner, his pri(ary beneficiaries as of the date of disability
shall be entitled to recei%e the (onthly pensionC Pro8#+"+, That if he has no pri(ary beneficiaries and he dies within
si'ty A+>= (onths fro( the start of his (onthly pension, his secondary beneficiaries shall be entitled to a l)(p s)(
benefit e<)i%alent to the total (onthly pensions correspondin# to the balance of the fi%e-year #)aranteed period
e'cl)din# the dependents8 pension.
MAd= The followin# disabilities shall be dee(ed per(anent totalC
M1. Co(plete loss of si#ht of both eyesJ
M". Loss of two li(bs at or abo%e the ankle or wristsJ
M6. Per(anent co(plete paralysis of two li(bsJ
M. 0rain in4)ry res)ltin# to inc)rable i(becility or insanityJ and
M,. &)ch cases as deter(ined and appro%ed by the &&&.
MAe= 7f the disability is per(anent partial, and s)ch disability occ)rs before thirty-si' A6+= (onthly contrib)tions ha%e
been paid prior to the se(ester of disability, the benefit shall be s)ch percenta#e of the l)(p s)( benefit described
in the precedin# para#raph with d)e re#ard to the de#ree of disability as the Co((ission (ay deter(ine.
MAf= 7f the disability is per(anent total and s)ch disability occ)rs after thirty-si' A6+= (onthly contrib)tions ha%e been
paid prior to the se(ester of disability, the benefit shall be the (onthly pension for per(anent total disability payable
not lon#er than the period desi#nated in the followin# sched)leC
C1MPL5T5
A$D P5*MA$5$T $:M05* 12
L1&& 12 :&5 12 M1$T.&
1ne th)(b 1>
1ne inde' fin#er E
1ne (iddle fin#er +
1ne rin# fin#er ,
1ne little fin#er 6
1ne bi# toe +
1ne hand 69
1ne ar( ,>
1ne foot 61
1ne le# +
1ne ear 1>
0oth ears ">
.earin# of one ear 1>
.earin# of both ears ,>
&i#ht of one eye ",
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MA#= The percenta#e de#ree of disability which is e<)i%alent to the ratio that the desi#nated n)(ber of (onths of
co(pensability bears to se%enty-fi%e A7,=, ro)nded to the ne't hi#her inte#er, shall not be additi%e for distinct,
separate and )nrelated per(anent partial disabilities, b)t shall be additi%e for deterioratin# and related per(anent
partial disabilities to a (a'i()( of one h)ndred percent A1>>K=, in which case, the (e(ber shall be dee(ed as
per(anently totally disabled.
MAh= 7n case of per(anent partial disability, the (onthly pension benefit shall be #i%en in l)(p s)( if it is payable for
less than twel%e A1"= (onths.
MAi= 2or the p)rpose of ad4)dicatin# retire(ent, death and per(anent total disability pension benefits, contrib)tions
shall be dee(ed paid for the (onths d)rin# which the (e(ber recei%ed partial disability pensionC Pro8#+"+, That
s)ch contrib)tions shall be based on his last contrib)tion prior to his disability.
MA4= &ho)ld a (e(ber who is on partial disability pension retire or die, his disability pension shall cease )pon his
retire(ent or death.
M&5C. 16-0. F,&"r(* B"&"f#. - A f)neral #rant e<)i%alent to Twel%e tho)sand pesos AP1",>>>.>>= shall be paid, in
cash or in kind, to help defray the cost of f)neral e'penses )pon the death of a (e(ber, incl)din# per(anently totally
disabled (e(ber or retiree.
M&5C. 1. S#$/&"'' B"&"f#. - Aa= A (e(ber who has paid at least three A6= (onthly contrib)tions in the twel%e-(onth
period i((ediately precedin# the se(ester of sickness or in4)ry and is confined therefor for (ore than three A6= days
in a hospital or elsewhere with the appro%al of the &&&, shall, for each day of co(pensable confine(ent or a fraction
thereof, be paid by his e(ployer, or the &&&, if s)ch person is )ne(ployed or self-e(ployed, a daily sickness benefit
e<)i%alent to ninety percent A9>K= of his a%era#e daily salary credit, s)b4ect to the followin# conditionsC
MA1= 7n no case shall the daily sickness benefit be paid lon#er than one h)ndred twenty A1">= days in one A1= calendar
year, nor shall any )n)sed portion of the one h)ndred twenty A1">= days of sickness benefit #ranted )nder this
section be carried forward and added to the total n)(ber of co(pensable days allowable in the s)bse<)ent yearJ
MA"= The daily sickness benefit shall not be paid for (ore than two h)ndred forty A">= days on acco)nt of the sa(e
confine(entJ and
MA6= The e(ployee (e(ber shall notify his e(ployer of the fact of his sickness or in4)ry within fi%e A,= calendar days
after the start of his confine(ent )nless s)ch confine(ent is in a hospital or the e(ployee beca(e sick or was in4)red
while workin# or within the pre(ises of the e(ployer in which case, notification to the e(ployer is necessaryC
Pro8#+"+, That if the (e(ber is )ne(ployed or self-e(ployed, he shall directly notify the &&& of his confine(ent
within fi%e A,= calendar days after the start thereof )nless s)ch confine(ent is in a hospital in which case notification
is also not necessaryC Pro8#+"+, f,r!"r, That in cases where notification is necessary, the confine(ent shall be
dee(ed to ha%e started not earlier than the fifth day i((ediately precedin# the date of notification.
MAb= The co(pensable confine(ent shall be#in on the first day of sickness, and the pay(ent of s)ch allowances shall
be pro(ptly (ade by the e(ployer e%ery re#)lar payday or on the fifteenth and last day of each (onth, and si(ilarly
in the case of direct pay(ent by the &&&, for as lon# as s)ch allowances are d)e and payableC Pro8#+"+, That s)ch
allowance shall be#in only after all sick lea%es of absence with f)ll pay to the credit of the e(ployee (e(ber shall
ha%e been e'ha)sted.
MAc= 1ne h)ndred percent A1>>K= of the daily benefits pro%ided in the precedin# para#raph shall be rei(b)rsed by
the &&& to said e(ployer )pon receipt of satisfactory proof of s)ch pay(ent and le#ality thereofC Pro8#+"+, That the
e(ployer has notified the &&& of the confine(ent within fi%e A,= calendar days after receipt of the notification fro( the
e(ployee (e(berC Pro8#+"+, f,r!"r, That if the notification to the &&& is (ade by the e(ployer beyond fi%e A,=
calendar days after receipt of the notification fro( the e(ployee (e(ber, said e(ployer shall be rei(b)rsed only for
each day of confine(ent startin# fro( the tenth calendar day i((ediately precedin# the date of notification to the
&&&C Pro8#+"+, f#&(**0, That the &&& shall rei(b)rse the e(ployer or pay the )ne(ployed (e(ber only for
confine(ent within the one-year period i((ediately precedin# the date the clai( for benefit or rei(b)rse(ent is
recei%ed by the &&&, e'cept confine(ent in a hospital in which case the clai( for benefit or rei(b)rse(ent ()st be
filed within one A1= year fro( the last day of confine(ent.
MAd= 3here the e(ployee (e(ber has #i%en the re<)ired notification b)t the e(ployer fails to notify the &&& of the
confine(ent or to file the clai( for rei(b)rse(ent within the period prescribed in this section res)ltin# in the red)ction
of the benefit or denial of the clai(, s)ch e(ployer shall ha%e no ri#ht to reco%er the correspondin# daily allowance
he ad%anced to the e(ployee (e(ber as re<)ired in this section.
MAe=The clai( of rei(b)rse(ent shall be ad4)dicated by the &&& within a period of two A"= (onths fro( receipt
thereofC Pro8#+"+, That sho)ld no pay(ent be recei%ed by the e(ployer within one A1= (onth after the period
prescribed herein for ad4)dication, the rei(b)rse(ent shall thereafter earn si(ple interest of one percent A1K= per
(onth )ntil paid.
MAf= The pro%isions re#ardin# the notification re<)ired of the (e(ber and the e(ployer as well as the period within
which the clai( for benefit or rei(b)rse(ent (ay be filed shall apply to all clai(s filed with the &&&.
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M&5C. 1-A. M("r&#0 L"(8" B"&"f#. 4 A fe(ale (e(ber who has paid at least three A6= (onthly contrib)tions in the
twel%e-(onth period i((ediately precedin# the se(ester of her childbirth or (iscarria#e shall be paid a daily
(aternity benefit e<)i%alent to one h)ndred percent A1>>K= of her a%era#e daily salary credit for si'ty A+>= days or
se%enty-ei#ht A7E= days in case of caesarian deli%ery, s)b4ect to the followin# conditionsC
MAa= That the e(ployee shall ha%e notified her e(ployer of her pre#nancy and the probable date of her childbirth,
which notice shall be trans(itted to the &&& in accordance with the r)les and re#)lations it (ay pro%ideJ
MAb= The f)ll pay(ent shall be ad%anced by the e(ployer within thirty A6>= days fro( the filin# of the (aternity lea%e
applicationJ
MAc= That pay(ent of daily (aternity benefits shall be a bar to the reco%ery of sickness benefits pro%ided by this Act
for the sa(e period for which daily (aternity benefits ha%e been recei%edJ
MAd= That the (aternity benefits pro%ided )nder this section shall be paid only for the first fo)r A= deli%eries or
(iscarria#esJ
MAe= That the &&& shall i((ediately rei(b)rse the e(ployer of one h)ndred percent A1>>K= of the a(o)nt of
(aternity benefits ad%anced to the e(ployee by the e(ployer )pon receipt of satisfactory proof of s)ch pay(ent and
le#ality thereofJ and
MAf= That if an e(ployee (e(ber sho)ld #i%e birth or s)ffer (iscarria#e witho)t the re<)ired contrib)tions ha%in#
been re(itted for her by her e(ployer to the &&&, or witho)t the latter ha%in# been pre%io)sly notified by the
e(ployer of the ti(e of the pre#nancy, the e(ployer shall pay to the &&& da(a#es e<)i%alent to the benefits which
said e(ployee (e(ber wo)ld otherwise ha%e been entitled to.
M&5C. 1,. No&4Tr(&'f"r(1#*#0 of B"&"f#'. 4 The &&& shall pro(ptly pay the benefits pro%ided in this Act to s)ch
persons as (ay be entitled thereto in accordance with the pro%isions of this ActC Pro8#+"+, That the &&& shall pay the
retire(ent benefits on the day of contin#ency to <)alified (e(bers who ha%e s)b(itted the necessary doc)(ents at
least si' A+= (onths beforeC Pro8#+"+, f,r!"r, That the beneficiary who is a national of a forei#n co)ntry which does
not e'tend benefits to a 2ilipino beneficiary residin# in the Philippines, or which is not reco#ni;ed by the Philippines,
shall not be entitled to recei%e any benefit )nder this ActC Pro8#+"+, f,r!"r, That notwithstandin# the fore#oin#, where
the best interest of the &&& will be ser%ed, the Co((ission (ay direct pay(ents witho)t re#ard to nationality or
co)ntry of residenceC Pro8#+"+, f,r!"r, That if the recipient is a (inor or a person incapable of ad(inisterin# his own
affairs, the Co((ission shall appoint a representati%e )nder s)ch ter(s and conditions as it (ay dee( properC
Pro8#+"+, f,r!"r, That s)ch appoint(ent shall not be necessary in case the recipient is )nder the c)stody of or li%in#
with the parents or spo)se of the (e(ber in which case the benefits shall be paid to s)ch parents or spo)se, as
representati%e payee of the recipient. &)ch benefits are not transferable and no power of attorney or other doc)(ent
e'ec)ted by those entitled thereto in fa%or of any a#ent, attorney or any other person for the collection thereof on
their behalf shall be reco#ni;ed, e'cept when they are physically )nable to collect personally s)ch benefitsC Pro8#+"+,
f,r!"r, That in case of death benefits, if no beneficiary <)alifies )nder this Act, said benefits shall be paid to the le#al
heirs in accordance with the law of s)ccession.
M&5C. 1+. E9"m%#o& from T(9, L".(* Pro$"'' (&+ L#"&. 44 All laws to the contrary notwithstandin#, the &&& and all
its assets and properties, all contrib)tions collected and all accr)als thereto and inco(e or in%est(ent earnin#s
therefro( as well as all s)pplies, e<)ip(ent, papers or doc)(ents shall be e'e(pt fro( any ta', assess(ent, fee,
char#e, or c)sto(s or i(port d)tyJ and all benefit pay(ents (ade by the &&& shall likewise be e'e(pt fro( all kinds
of ta'es, fees or char#es, and shall not liable to attach(ents, #arnish(ents, le%y or sei;)re by or )nder any le#al or
e<)itable process whatsoe%er, either before or after receipt by the person or persons entitled thereto, e'cept to pay
any debt of the (e(ber to the &&&. $o ta' (eas)re of whate%er nat)re enacted shall apply to the &&&, )nless it
e'pressly re%okes the declared policy of the &tate in &ection " hereof #rantin# ta'-e'e(ption to the &&&. Any ta'
assess(ent i(posed a#ainst the &&& shall be n)ll and %oid. 6A' (m"&+"+ 10 S"$. @, P. D. No. :3, S. G@>:B (&+
S"$. G3, P. D. No. >;<, S. G@><7.
M&5C. 17. F"" of A."&', Aor&"0', E$. - $o a#ent, attorney or other person in char#e of the preparation, filin# or
p)rs)in# any clai( for benefit )nder this Act shall de(and or char#e for his ser%ices any fee, and any stip)lation to
the contrary shall be n)ll and %oid. The retention or ded)ction of any a(o)nt fro( any benefit #ranted )nder this Act
for the pay(ent of fees for s)ch ser%ices is prohibitedC Pro8#+"+, !o)"8"r, That any (e(ber of the Philippine 0ar
who appears as co)nsel in any case heard by the Co((ission shall be entitled to attorneys8 fees not e'ceedin# ten
percent A1>K= of the benefits awarded by the Co((ission, which fees shall not be payable before the act)al
pay(ent of the benefits, and any stip)lation to the contrary shall be n)ll and %oid.
MAny %iolation of the pro%isions of this &ection shall be p)nished by a fine of not less than 2i%e h)ndred pesos
AP,>>.>>= nor (ore than 2i%e tho)sand pesos AP,,>>>.>>=, or i(prison(ent for not less than si' A+= (onths nor (ore
than one A1= year, or both, at the discretion of the co)rt.
M&5C. 1E. Em%*o0""M' Co&r#1,#o&'. - Aa= 0e#innin# as of the last day of the calendar (onth when an e(ployee8s
co(p)lsory co%era#e takes effect and e%ery (onth thereafter d)rin# his e(ploy(ent, the e(ployer shall ded)ct and
withhold fro( s)ch e(ployee8s (onthly salary, wa#e, co(pensation or earnin#s, the e(ployee8s contrib)tion in an
a(o)nt correspondin# to his salary, wa#e, co(pensation or earnin#s d)rin# the (onth in accordance with the
followin# sched)leC
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SALARY RANGE OF MONTHLY MONTHLY CONTRIBUTION
BRACEET COMPENSATION SALARY
CREDIT EMPLOYER EMPLOYEE TOTAL
I G,CCC.CC 4 G,:3@.@@ GCCC <C.>C ;;.;C ?3.CC
II G,:<C.CC 4 G,>3@.@@ G<CC >=.CC <C.CC G:=.CC
III G,><C.CC 4 :,:3@.@@ :CCC GCG.;C ==.>C G=?.CC
IV :,:<C.CC 4 :,>3@.@@ :<CC G:=.>C ?;.;C :GC.CC
V :,><C.CC 4 ;,:3@.@@ ;CCC G<:.CC GCC.CC :<:.CC
VI ;,:<C.CC 4 ;,>3@.@@ ;<CC G>>.;C GG=.>C :@3.CC
VII ;,><C.CC 4 3,:3@.@@ 3CCC :C:.>C G;;.;C ;;=.CC
VIII 3,:<C.CC 4 3,>3@.@@ 3<CC ::?.CC G<C.CC ;>?.CC
IQ 3,><C.CC 4 <,:3@.@@ <CCC :<;.;C G==.>C 3:C.CC
Q <,:<C.CC 4 <,>3@.@@ <<CC :>?.>C G?;.>C 3=:.3C
QI <,><C.CC 4 =,:3@.@@ =CCC ;C3.CC :CC.CC <C3.CC
QII =,:<C.CC 4 =,>3@.@@ =<CC ;:@.;C :G=.>? <3=.CC
QIII =,><C.CC 4 >,:3@.@@ >CCC ;<3.>C :;;.;C <??.CC
QIV >,:<C.CC 4 >,>3@.@@ ><CC ;?C.CC :<C.CC =;C.CC
QV >,><C.CC 4 ?.:3@.@@ ?CCC 3C;.;C :==.>C =>:.CC
QVI ?,:<C.CC 4 ?,>3@.@@ ?<CC 3;C.>C :?;.;C >G3.CC
QVII ?,><C.CC 4 OVER @CCC 3<=.CC ;CC.CC ><=.CC
MThe fore#oin# sched)le of contrib)tion shall also apply to self-e(ployed and %ol)ntary (e(bers.
MThe (a'i()( (onthly salary credit shall be $ine tho)sand pesos AP9,>>>.>>= effecti%e 9an)ary $ineteen h)ndred
and ninety si' A199+=J Pro8#+"+, That it shall be increased by 1ne tho)sand pesos AP1,>>>.>>= e%ery year thereafter
)ntil it shall ha%e reached Twel%e tho)sand pesos AP1",>>>.>>= by $ineteen h)ndred and ninety nine A1999=C
Pro8#+"+, f,r!"r, That the (ini()( and (a'i()( (onthly salary credits as well as the rate of contrib)tions (ay be
fi'ed fro( ti(e to ti(e by the Co((ission thro)#h r)les and re#)lations takin# into consideration act)arial
calc)lations and rate of benefits, s)b4ect to the appro%al of the President of the Philippines.
M&5C. 19. Em%*o0"rM' Co&r#1,#o&'. - Aa= 0e#innin# as of the last day of the (onth when an e(ployee8s co(p)lsory
co%era#e takes effect and e%ery (onth thereafter d)rin# his e(ploy(ent, his e(ployer shall pay, with respect to s)ch
co%ered e(ployee, the e(ployer8s contrib)tion in accordance with the sched)le indicated in &ection 5i#hteen of this
Act. $otwithstandin# any contract to the contrary, an e(ployer shall not ded)ct, directly or indirectly, fro( the
co(pensation of his e(ployees co%ered by the &&& or otherwise reco%er fro( the( the e(ployer8s contrib)tions
with respect to s)ch e(ployees.
MAb= The re(ittance of s)ch contrib)tions by the e(ployer shall be s)pported by a <)arterly collection list to be
s)b(itted to the &&& at the end of each calendar <)arter indicatin# the correct 7D n)(ber of the e(ployer, the
correct na(es and the &&& n)(bers of the e(ployees and the total contrib)tions paid for their acco)nt d)rin# the
<)arter.
M&5C. 19-A. Co&r#1,#o&' of !" S"*f4Em%*o0"+ M"m1"r. - The contrib)tions to the &&& of the self-e(ployed
(e(ber shall be deter(ined in accordance with &ection 5i#hteen of this ActC Pro8#+"+, That the (onthly earnin#s
declared by the self-e(ployed (e(ber at the ti(e of his re#istration with the &&& shall be considered as his (onthly
co(pensation and he shall pay both the e(ployer and the e(ployee contrib)tionsC Pro8#+"+, f,r!"r, That the
contrib)tions of self-e(ployed persons earnin# 1ne tho)sand pesos AP1,>>>.>>= (onthly or below (ay be red)ced
by the Co((ission.
MThe (onthly earnin#s declared by the self-e(ployed (e(ber at the ti(e of his re#istration shall re(ain the basis of
his (onthly salary credit, )nless he (akes another declaration of his (onthly earnin#s, in which case s)ch latest
declaration beco(es the new basis of his (onthly salary credit.
M&5C. ">. Go8"r&m"& Co&r#1,#o&. 4 As the contrib)tion of the Fo%ern(ent to the operation of the &&&, Con#ress
shall ann)ally appropriate o)t of any f)nds in the $ational Treas)ry not otherwise appropriated, the necessary s)( or
s)(s to (eet the esti(ated e'penses of the &&& for each ens)in# year. 7n addition to this contrib)tion, Con#ress
shall appropriate fro( ti(e to ti(e s)ch s)( or s)(s as (ay be needed to ass)re the (aintenance of an ade<)ate
workin# balance of the f)nds of the &&& as disclosed by s)itable periodic act)arial st)dies to be (ade of the
operations of the &&&.
M&5C. "1. Go8"r&m"& G,(r(&"". 44 The benefits prescribed in this Act shall not be di(inished and to #)arantee
said benefits the Fo%ern(ent of the *ep)blic of the Philippines accepts #eneral responsibility for the sol%ency of the
&&&.
M&5C. "". R"m#(&$" of Co&r#1,#o&'. 44 Aa= The contrib)tions i(posed in the precedin# &ection shall be re(itted to
the &&& within the first ten A1>= days of each calendar (onth followin# the (onth for which they are applicable or
within s)ch ti(e as the Co((ission (ay prescribe. 5%ery e(ployer re<)ired to ded)ct and to re(it s)ch
contrib)tions shall be liable for their pay(ent and if any contrib)tion is not paid to the &&& as herein prescribed, he
shall pay besides the contrib)tion a penalty thereon of three percent A6K= per (onth fro( the date the contrib)tion
falls d)e )ntil paid. 7f dee(ed e'pedient and ad%isable by the Co((ission, the collection and re(ittance of
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contrib)tions shall be (ade <)arterly or se(i-ann)ally in ad%ance, the contrib)tions payable by the e(ployees to be
ad%anced by their respecti%e e(ployersC Pro8#+"+, That )pon separation of an e(ployee, any contrib)tion so paid in
ad%ance b)t not d)e shall be credited or ref)nded to his e(ployer.
MAb= The contrib)tions payable )nder this Act in cases where an e(ployer ref)ses or ne#lects to pay the sa(e shall
be collected by the &&& in the sa(e (anner as ta'es are (ade collectible )nder the $ational 7nternal *e%en)e
Code, as a(ended. 2ail)re or ref)sal of the e(ployer to pay or re(it the contrib)tions herein prescribed shall not
pre4)dice the ri#ht of the co%ered e(ployee to the benefits of the co%era#e.
MThe ri#ht to instit)te the necessary action a#ainst the e(ployer (ay be co((enced within twenty A">= years fro(
the ti(e the delin<)ency is known or the assess(ent is (ade by the &&&, or fro( the ti(e the benefit accr)es, as
the case (ay be.
MAc= &ho)ld any person, nat)ral or 4)ridical, defa)lt in any pay(ent of contrib)tions, the Co((ission (ay also collect
the sa(e in either of the followin# waysC
M1. 0y an action in co)rt, which shall hear and dispose of the case in preference to any other ci%il actionJ or
M". 0y iss)in# a warrant to the &heriff of any pro%ince or city co((andin# hi( to le%y )pon and sell any real and
personal property of the debtor. The &heriff8s sale by %irt)e of said warrant shall be #o%erned by the sa(e proced)re
prescribed for e'ec)tions a#ainst property )pon 4)d#(ents by a co)rt of record.
MAd= The last co(plete record of (onthly contrib)tions paid by the e(ployer or the a%era#e of the (onthly
contrib)tions paid d)rin# the past three A6= years as of the date of filin# of the action for collection shall be pres)(ed
to be the (onthly contrib)tions payable by and d)e fro( the e(ployer to the &&& for each of the )npaid (onth,
)nless contradicted and o%erco(e by other e%idenceC Pro8#+"+, That the &&& shall not be barred fro( deter(inin#
and collectin# the tr)e and correct contrib)tions d)e the &&& e%en after f)ll pay(ent p)rs)ant to this para#raph, nor
shall the e(ployer be relie%ed of his liability )nder &ection Twenty-ei#ht of this Act.
M&5C. ""-A. R"m#(&$" of Co&r#1,#o&' of S"*f4Em%*o0"+ M"m1"r. 4 &elf-e(ployed (e(bers shall re(it their
(onthly contrib)tions <)arterly on s)ch dates and sched)les as the Co((ission (ay specify thro)#h r)les and
re#)lationsC Pro8#+"+, That no retroacti%e pay(ent of contrib)tions shall be allowed, e'cept as pro%ided in this
&ection.
M&5C. "6. M"!o+ of Co**"$#o& (&+ P(0m"&. 4 The &&& shall re<)ire a co(plete and proper collection and pay(ent
of contrib)tions and proper identification of the e(ployer and the e(ployee. Pay(ent (ay be (ade in cash, checks,
sta(ps, co)pons, tickets, or other reasonable de%ices that the Co((ission (ay adopt.
M&5C. ". Em%*o0m"& R"$or+' (&+ R"%or'. 4 Aa= 5ach e(ployer shall i((ediately report to the &&& the na(es,
a#es, ci%il stat)s, occ)pations, salaries and dependents of all his e(ployees who are s)b4ect to co(p)lsory
co%era#eC Pro8#+"+, That if an e(ployee s)b4ect to co(p)lsory co%era#e sho)ld die or beco(e sick or disabled or
reach the a#e of si'ty A+>= witho)t the &&& ha%in# pre%io)sly recei%ed any report or written co(()nication abo)t hi(
fro( his e(ployer, the said e(ployer shall pay to the &&& da(a#es e<)i%alent to the benefits to which said
e(ployee (e(ber wo)ld ha%e been entitled had his na(e been reported on ti(e by the e(ployer to the &&&, e'cept
that in case of pension benefits, the e(ployer shall be liable to pay the &&& da(a#es e<)i%alent to the acc)()lated
pension d)e as of the date of settle(ent of the clai( or to the fi%e A,= years8 pension, incl)din# dependents8 pensionC
Pro8#+"+, f,r!"r, That if the contin#ency occ)rs within thirty A6>= days fro( the date of e(ploy(ent, the e(ployer
shall be relie%ed of his liability for da(a#esC Pro8#+"+, f,r!"r, That any person or entity en#a#in# the ser%ices of an
independent contractor shall be s)bsidiarily liable with s)ch contractor for any ci%il liability inc)rred by the latter )nder
this ActC Pro8#+"+, f#&(**0, That the sa(e person or entity en#a#in# the ser%ices of an independent contractor shall
re<)ire s)ch contractor to post a s)rety bond to #)arantee the pay(ent of the worker8s benefits.
MAb= &ho)ld the e(ployer (isrepresent the tr)e date of e(ploy(ent of the e(ployee (e(ber or re(it to the &&&
contrib)tions which are less than those re<)ired in this Act or fail to re(it any contrib)tion d)e prior to the date of
contin#ency, res)ltin# in a red)ction of benefits, the e(ployer shall pay to the &&& da(a#es e<)i%alent to the
difference between the a(o)nt of benefit to which the e(ployee (e(ber or his beneficiary is entitled had the proper
contrib)tions been re(itted to the &&& and the a(o)nt payable on the basis of contrib)tions act)ally re(ittedC
Pro8#+"+, That if the e(ployee (e(ber or his beneficiary is entitled to pension benefits, da(a#es shall be e<)i%alent
to the acc)()lated pension d)e as of the date of settle(ent of the clai( or to the fi%e A,= years8 pension, whiche%er is
hi#her, incl)din# dependents8 pension.
M7n addition to the liability (entioned in the precedin# para#raphs Aa= and Ab= hereof, the e(ployer shall also be liable
for the correspondin# )nre(itted contrib)tions and penalties thereon.
MAc= The records and reports d)ly acco(plished and s)b(itted to the &&& by the e(ployer or the (e(ber, as the
case (ay be, shall be kept confidential by the &&& e'cept in co(pliance with a ',1%o"&( +,$"' "$,m iss)ed by the
Co)rt, shall not be di%)l#ed witho)t the consent of the &&& President or any official of the &&& d)ly a)thori;ed by
hi(, shall be pres)(ed correct as to the data and other (atters stated therein, )nless the necessary corrections to
s)ch records and reports ha%e been properly (ade by the parties concerned before the ri#ht to the benefit bein#
clai(ed accr)es, and shall be (ade the basis for the ad4)dication of the clai(. 7f as a res)lt of s)ch ad4)dication the
&&& in #ood faith pays a (onthly pension to a beneficiary who is inferior in ri#ht to another beneficiary or with who(
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another beneficiary is entitled to share, s)ch pay(ents shall dischar#e the &&& fro( liability )nless and )ntil s)ch
other beneficiary notifies the &&& of his clai( prior to the pay(ents.
MAd= 5%ery e(ployer shall keep tr)e and acc)rate work records for s)ch period and containin# s)ch infor(ation as the
Co((ission (ay prescribe, in addition to an TA&&,(* R".#'"r of N") (&+ S"%(r("+ Em%*o0""'T which shall be
sec)red fro( the &&& wherein the e(ployer shall enter on the first day of e(ploy(ent or on the effecti%e date of
separation, the na(es of the persons e(ployed or separated fro( e(ploy(ent, their &&& n)(bers, and s)ch other
data that the Co((ission (ay re<)ire and said ann)al re#ister shall be s)b(itted to the &&& in the (onth of 9an)ary
of each year. &)ch records shall be open for inspection by the &&& or its a)thori;ed representati%es <)arterly or as
often as the &&& (ay re<)ire.
MThe &&& (ay also re<)ire each e(ployer to s)b(it, with respect to the persons in his e(ploy, reports needed for
the effecti%e ad(inistration of this Act.
MAe= 5ach e(ployer shall re<)ire, as a condition to e(ploy(ent, the presentation of a re#istration n)(ber sec)red by
the prospecti%e e(ployee fro( the &&& in accordance with s)ch proced)re as the &&& (ay adoptC Pro8#+"+, That in
case of e(ployees who ha%e been assi#ned re#istration n)(bers by %irt)e of a pre%io)s e(ploy(ent, s)ch n)(bers
ori#inally assi#ned to the( sho)ld be )sed for p)rposes of this &ectionC Pro8#+"+, f,r!"r, That the iss)ance of s)ch
re#istration n)(bers by the &&& shall not e'e(pt the e(ployer fro( co(plyin# with the pro%isions of para#raph Aa=
of this &ection.
MAf= $otwithstandin# any law to the contrary, (icrofil(, or non-erasable optical disk and other si(ilar archi%al (edia
copies of ori#inal &&& records and reports, d)ly certified by the official c)stodian thereof, shall ha%e the sa(e
e%identiary %al)e as the ori#inals and be ad(issible as e%idence in all le#al proceedin#s.
MA#= $otwithstandin# any law to the contrary, local #o%ern(ent )nits shall, prior to iss)in# any ann)al b)siness
license or per(it, re<)ire s)b(ission of certificate of &&& co%era#e and co(pliance with the pro%isions of this ActC
Pro8#+"+, That the certification or clearance shall be iss)ed by the &&& within fi%e A,= workin# days fro( receipt of
the re<)est.
M&5C. "-A. R"%or (&+ R".#'r(#o& of !" S"*f4Em%*o0"+ M"m1"r. - 5ach co%ered self-e(ployed person shall,
within thirty A6>= days fro( the first day he started the practice of his profession or b)siness operations re#ister and
report to the &&& his na(e, a#e, ci%il stat)s, and occ)pation, a%era#e (onthly net inco(e and his dependents.
M&5C. ",. D"%o'#' (&+ D#'1,r'"m"&'. 4 All (oney paid to or collected by the &&& e%ery year )nder this Act, and all
accr)als thereto shall be deposited, ad(inistered and disb)rsed in the sa(e (anner and )nder the sa(e conditions
and re<)ire(ents as pro%ided by law for other p)blic special f)ndsC Pro8#+"+, That not (ore than twel%e percent
A1"K= of the total yearly contrib)tions pl)s three percent A6K= of other re%en)es shall be disb)rsed for operational
e'penses s)ch as salaries and wa#es, s)pplies and (aterials, depreciation and the (aintenance of offices of the
&&&C Pro8#+"+, f,r!"r, That if the e'penses in any year are less than the (a'i()( a(o)nt per(issible, the
difference shall not be a%ailed of as additional e'penses in the followin# years.
M&5C. "+. I&8"'m"& of R"'"r8" F,&+'. 4 All re%en)es of the &&& that are not needed to (eet the c)rrent
ad(inistrati%e and operational e'penses incidental to the carryin# o)t of this Act shall be acc)()lated in a f)nd to be
known as the TR"'"r8" F,&+.T &)ch portions of the *eser%e 2)nd as are not needed to (eet the c)rrent benefit
obli#ations thereof shall be known as the TI&8"'m"& R"'"r8" F,&+T which the Co((ission shall (ana#e and in%est
with the skill, care, pr)dence and dili#ence necessary )nder the circ)(stances then pre%ailin# that a pr)dent (an
actin# in like capacity and fa(iliar with s)ch (atters wo)ld e'ercise in the cond)ct of an enterprise of a like character
and with si(ilar ai(s. P)rs)ant thereto, and in line with the basic principles of safety, #ood yield and li<)idity, the
Co((ission shall in%est the f)nds to earn an ann)al inco(e not less than the a%era#e rates of treas)ry bills or any
other acceptable (arket yield indicator in any or in all of the followin#C
MAa= 7n bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of the Fo%ern(ent of the Philippines, or
in bonds, sec)rities, pro(issory notes or other e%idence of indebtedness to which the f)ll faith, credit and
)nconditional #)arantee of the Fo%ern(ent of the Philippines is pled#edJ
MAb= 7n bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of the Fo%ern(ent of the Philippines, or
any a#encies or instr)(entalities to finance do(estic infrastr)ct)re pro4ects s)ch as roads, brid#es, ports,
teleco(()nications, and other si(ilar pro4ectsC Pro8#+"+, That the instr)(ents iss)ed by an a#ency or
instr)(entality of the #o%ern(ent shall be #)aranteed by the Fo%ern(ent of the Philippines or any #o%ern(ent
financial instit)tion or acceptable ()ltilateral a#encyC Pro8#+"+, f,r!"r, That the &&& shall ha%e priority o%er the
re%en)es of the pro4ectsC Pro8#+"+, f#&(**0, That s)ch in%est(ents shall not e'ceed thirty percent A6>K= of the
7n%est(ent *eser%e 2)ndJ
MAc= 7n bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of #o%ern(ent financial instit)tions or
#o%ern(ent corporations with acceptable credit or #)aranteeC Pro8#+"+, That s)ch in%est(ents shall not e'ceed thirty
percent A6>K= of the 7n%est(ent *eser%e 2)ndJ
MAd= 7n bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of any bank doin# b)siness in the
Philippines and in #ood standin# with the 0an#ko &entral n# Pilipinas to finance loans to pri%ate corporations doin#
b)siness in the Philippines, incl)din# schools, hospitals, s(all-and-(edi)( scale ind)stries, cooperati%es and non-
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#o%ern(ental or#ani;ations, in which case the collaterals or sec)rities shall be assi#ned to the &&& )nder s)ch
ter(s and conditions as the Co((ission (ay prescribeC Pro8#+"+, That in the case of bank deposits, they shall not
e'ceed at any ti(e the )ni(paired capital and s)rpl)s or total pri%ate deposits of the depository bank, whiche%er is
s(allerC Pro8#+"+, f,r!"r, That said bank shall first ha%e been desi#nated as a depository for this p)rpose by the
Monetary 0oard of the 0an#ko &entral n# PilipinasC Pro8#+"+, f#&(**0, That s)ch in%est(ents shall not e'ceed forty
percent A>K= of the 7n%est(ent *eser%e 2)ndJ
MAe= 7n bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of shelter a#encies of the $ational
Fo%ern(ent or financial inter(ediaries to finance ho)sin# loans of (e(bersJ and in lon#-ter( direct indi%id)al or
#ro)p ho)sin# loans #i%in# priority to the low-inco(e #ro)ps, )p to a (a'i()( of ninety percent A9>K= of the
appraised %al)e of the properties to be (ort#a#ed by the borrowersJ and
M7n short and (edi)( ter( loans to (e(bers s)ch as salary, ed)cational, li%elihood, (arital, cala(ity and
e(er#ency loansC Pro8#+"+, That not (ore than thirty fi%e percent A6,K= of the 7n%est(ent *eser%e 2)nd at any ti(e
shall be in%ested for ho)sin# p)rposesC Pro8#+"+, f,r!"r, That not (ore than ten percent A1>K= of the 7n%est(ent
*eser%e 2)nd shall be in%ested in short and (edi)( ter( loansJ
MAf= 7n bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of ed)cational or (edical instit)tions to
finance the constr)ction, i(pro%e(ent and (aintenance of schools and hospitals and their e<)ip(ent and facilitiesC
Pro8#+"+, That s)ch in%est(ents shall not e'ceed ten percent A1>K= of the 7n%est(ent *eser%e 2)ndJ
MA#= 7n real estate property, incl)din# shares of stocks in%ol%in# real estate property, and in%est(ent sec)red by first
(ort#a#es on real estate or other collaterals acceptable to the &&&C Pro8#+"+, That s)ch pro4ects and in%est(ents
shall, in the deter(ination of the Co((ission, redo)nd to the benefit of the &&&, its (e(bers, as well as the #eneral
p)blicC Pro8#+"+, f,r!"r, That in%est(ent in real estate property, incl)din# shares of stocks in%ol%in# real estate
property shall not e'ceed fi%e percent A,K= of the 7n%est(ent *eser%e 2)ndC Pro8#+"+, f#&(**0, That in%est(ents in
other inco(e earnin# pro4ects and in%est(ents sec)red by first (ort#a#es or other collaterals shall not e'ceed twenty
fi%e percent A",K= of the 7n%est(ent *eser%e 2)ndJ
MAh= 7n bonds, debent)res, sec)rities, pro(issory notes or other e%idence of indebtedness of any pri(e corporation or
()ltilateral instit)tions to finance do(estic pro4ectsC Pro8#+"+, That the iss)in# or ass)(in# entity or its predecessors
shall not ha%e defa)lted in the pay(ent of interest on any of its sec)rities and that d)rin# each of any three A6=
incl)din# the last two A"= of the fi%e A,= fiscal years ne't precedin# the date of ac<)isition by the &&& of s)ch bonds,
debent)res or other e%idence of indebtedness, the net earnin#s of the iss)in# or ass)(in# instit)tion a%ailable for its
fi'ed char#es, as defined in this Act, shall ha%e been not less than one and one-<)arter ti(es the total of its fi'ed
char#es for s)ch yearC Pro8#+"+, f,r!"r, That s)ch in%est(ents shall not e'ceed thirty percent A6>K= of the
7n%est(ent *eser%e 2)ndJ
MAi= 7n preferred or co((on shares of stocks listed or abo)t to be listed in the stock e'chan#e or options or warrants
to s)ch stocks or, s)b4ect to prior appro%al of the 0an#ko &entral n# Pilipinas, s)ch other risk (ana#e(ent
instr)(ents of any pri(e or sol%ent corporation or financial instit)tion created or e'istin# )nder the laws of the
Philippines with pro%en track record of profitability o%er the last three A6= years and pay(ent of di%idends at least
once o%er the sa(e periodC Pro8#+"+, That s)ch in%est(ents shall not e'ceed thirty percent A6>K= of the 7n%est(ent
*eser%e 2)ndJ
MA4= 7n do(estic or forei#n ()t)al f)nds in e'istence for at least three A6= yearsJ Pro8#+"+, That s)ch in%est(ents shall
not e'ceed twenty percent A">K= of the 7n%est(ent *eser%e 2)ndC Pro8#+"+, f,r!"r, That in%est(ents in forei#n
()t)al f)nds shall not e'ceed one percent A1K= of the 7n%est(ent *eser%e 2)nd in the first year which shall be
increased by one percent A1K= for each s)cceedin# year, b)t in no case shall it e'ceed se%en and one-half percent
A7.,K= of the 7n%est(ent *eser%e 2)ndJ
MAk= 7n forei#n c)rrency deposits or triple MAM forei#n c)rrency deno(inated debts, pri(e and non-spec)lati%e e<)ities,
and other 0an#ko &entral n# Pilipinas appro%ed financial instr)(ents or other assets iss)ed in accordance with the
e'istin# laws of the co)ntries where s)ch financial instr)(ents are iss)edC Pro8#+"+, That these instr)(ents or
assets are listed in bo)rses of the respecti%e co)ntries where these instr)(ents or assets are iss)edC Pro8#+"+,
f,r!"r, That the iss)in# co(pany has pro%en track of record of profitability o%er the last three A6= years and a record
of re#)lar di%idend pay-o)t o%er the sa(e periodC Pro8#+"+, f#&(**0, That s)ch in%est(ents shall not e'ceed one
percent A1K= of the 7n%est(ent *eser%e 2)nd in the first year which shall be increased by one percent A1K= for each
s)cceedin# year, b)t in no case shall it e'ceed se%en and one-half percent A7.,K= of the 7n%est(ent *eser%e 2)ndJ
MAl= 7n loans sec)red by s)ch collaterals like cash, #o%ern(ent sec)rities or #)arantees of ()ltilateral instit)tionsC
Pro8#+"+, That s)ch in%est(ents shall not e'ceed thirty percent A6>K= of the 7n%est(ent *eser%e 2)ndJ and
MA(= 7n other 0an#ko &entral n# Pilipinas appro%ed in%est(ent instr)(ents with the sa(e intrinsic <)ality as those
en)(erated in para#raphs Aa= to Al= hereof, s)b4ect to the policies and #)idelines which the Co((ission (ay
for()late.
M$o portion of the 7n%est(ent *eser%e 2)nd or inco(e thereof shall accr)e to the #eneral f)nd of the $ational
Fo%ern(ent or to any of its a#encies or instr)(entalities, incl)din# #o%ern(ent-owned or controlled corporations,
e'cept as (ay be allowed )nder this ActC Pro8#+"+, That no portion of the 7n%est(ent *eser%e 2)nd shall be in%ested
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for any p)rpose or in any instr)(ent, instit)tion or ind)stry o%er and abo%e the prescribed c)()lati%e ceilin#s as
followsC
>K in pri%ate sec)rities
6,K in ho)sin#
6>K in real estate related in%est(ents
1>K in short and (edi)(-ter( (e(ber loans
6>K in #o%ern(ent financial instit)tions and corporations
6>K in infrastr)ct)re pro4ects
1,K in any partic)lar ind)stry
7.,K in forei#n-c)rrency deno(inated in%est(ents
M&5C. "+-A. F,&+ M(&(."r'. - As part of its in%est(ent operations, the &&& (ay appoint local or, in the absence
thereof, forei#n f)nd (ana#ers to (ana#e the 7n%est(ent *eser%e 2)nd, as it (ay dee( appropriate.
M&5C. "+-0. Mor.(.or I&',r(&$" A$$o,&. 4 Aa= As part of its in%est(ent operations, the &&& shall act as ins)rer of
all or part of its interest on &&& properties (ort#a#ed to the &&&, or li%es of (ort#a#ors whose properties are
(ort#a#ed to the &&&. 2or this p)rpose, the &&& shall establish a separate acco)nt to be known as the MMort#a#ors8
7ns)rance Acco)nt.M All a(o)nts recei%ed by the &&& in connection with the aforesaid ins)rance operations shall be
placed in the Mort#a#ors8 7ns)rance Acco)nt. The assets and liabilities of the Mort#a#ors8 7ns)rance Acco)nt shall at
all ti(es be clearly identifiable and distin#)ishable fro( the assets and liabilities in all other acco)nts of the &&&.
$otwithstandin# any pro%ision of law to the contrary, the assets held in the Mort#a#ors8 7ns)rance Acco)nt shall not
be char#eable with the liabilities arisin# o)t of any other b)siness the &&& (ay cond)ct b)t shall be held and applied
e'cl)si%ely for the benefit of the owners or beneficiaries of the ins)rance contracts iss)ed by the &&& )nder this
para#raph.
MAb= The &&& (ay ins)re any of its interest or part thereof with any pri%ate co(pany or reins)rer. The 7ns)rance
Co((ission or its a)thori;ed representati%es shall (ake an e'a(ination into the financial condition and (ethods of
transactin# b)siness of the &&& at least once in two A"= years, b)t s)ch e'a(ination shall be li(ited to the ins)rance
operation of the &&& as a)thori;ed )nder this para#raph and shall not e(brace the other operations of the &&&J and
the report of said e'a(ination shall be s)b(itted to the Co((ission and a copy thereof shall be f)rnished the 1ffice
of the President of the Philippines within a reasonable ti(e after the close of the e'a(inationC Pro8#+"+, That for each
e'a(ination, the &&& shall pay to the 7ns)rance Co((ission an a(o)nt e<)al to the act)al e'pense of the
7ns)rance Co((ission in the cond)ct of e'a(ination, incl)din# the salaries of the e'a(iners and of the act)ary of
the 7ns)rance Co((ission who ha%e been assi#ned to (ake s)ch e'a(ination for the act)al ti(e spent in said
e'a(inationC Pro8#+"+, f,r!"r, That the #eneral law on ins)rance and the r)les and re#)lations pro()l#ated
there)nder shall ha%e s)ppletory application insofar as it is not in conflict with this Act and its r)les and re#)lations.
M&5C. "7. R"$or+' (&+ R"%or'. 4 The &&& President shall keep and ca)se to keep records of operations of the
f)nds of the &&& and of disb)rse(ents thereof and all acco)nts of pay(ents (ade o)t of said f)nds. D)rin# the
(onth of 9an)ary of each year, the &&& President shall prepare for s)b(ission to the President of the Philippines
and to Con#ress of the Philippines a report of operations of the &&& d)rin# the precedin# year, incl)din# statistical
data on the n)(ber of persons co%ered and benefited, their occ)pations and e(ploy(ent stat)s, the d)ration and
a(o)nt of benefits paid, the finances of the &&& at the close of the said year, and reco((endations. .e shall also
ca)se to be p)blished in two A"= newspapers of #eneral circ)lation in the Philippines a synopsis of the ann)al report,
showin# in partic)lar the stat)s of the finances of the &&& and the benefits ad(inistered.
M&5C. "E. P"&(* C*(,'". 4 Aa= 3hoe%er, for the p)rpose of ca)sin# any pay(ent to be (ade )nder this Act, or )nder
an a#ree(ent there)nder, where none is a)thori;ed to be paid, shall (ake or ca)se to be (ade false state(ent or
representation as to any co(pensation paid or recei%ed or whoe%er (akes or ca)ses to be (ade any false state(ent
of a (aterial fact in any clai( for any benefit payable )nder this Act, or application for loan with the &&&, or whoe%er
(akes or ca)ses to be (ade any false state(ent, representation, affida%it or doc)(ent in connection with s)ch clai(
or loan, shall s)ffer the penalties pro%ided for in Article 1ne h)ndred se%enty-two of the *e%ised Penal Code.
MAb= 3hoe%er shall obtain or recei%e any (oney or check )nder this Act or any a#ree(ent there)nder, witho)t bein#
entitled thereto with intent to defra)d any (e(ber, e(ployer or the &&&, shall be fined not less than 2i%e tho)sand
pesos AP,,>>>.>>= nor (ore than Twenty tho)sand pesos AP">,>>>.>>= and i(prisoned for not less than si' A+= years
and one A1= day nor (ore than twel%e A1"= years.
MAc= 3hoe%er b)ys, sells, offers for sale, )ses, transfers or takes or #i%es in e'chan#e, or pled#es or #i%es in pled#e,
e'cept as a)thori;ed in this Act or in re#)lations (ade p)rs)ant thereto, any sta(p, co)pon, ticket, book or other
de%ice, prescribed p)rs)ant to &ection Twenty-three hereof by the Co((ission for the collection or pay(ent of
contrib)tions re<)ired herein, shall be fined not less than 2i%e tho)sand pesos AP,,>>>.>>= nor (ore than Twenty
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tho)sand pesos AP">,>>>.>>=, or i(prisoned for not less than si' A+= years and one A1= day nor (ore than twel%e A1"=
years, or both, at the discretion of the co)rt.
MAd= 3hoe%er, with intent to defra)d, alters, for#es, (akes or co)nterfeits any sta(p, co)pon, ticket, book or other
de%ice prescribed by the Co((ission for the collection or pay(ent of any contrib)tion re<)ired herein, or )ses, sells,
lends, or has in his possession any s)ch altered, for#ed or co)nterfeited (aterials, or (akes, )ses, sells or has in his
possession any s)ch altered, for#ed, (aterial in i(itation of the (aterial )sed in the (an)fact)re of s)ch sta(p,
co)pon, ticket, book or other de%ice, shall be fined not less than 2i%e tho)sand pesos AP,,>>>.>>= non (ore than
Twenty tho)sand pesos AP">,>>>.>>= or i(prisoned for not less than si' years A+= and one A1= day nor (ore than
twel%e A1"= years, or both, at the discretion of the co)rt.
MAe= 3hoe%er fails or ref)ses to co(ply with the pro%isions of this Act or with the r)les and re#)lations pro()l#ated
by the Co((ission, shall be p)nished by a fine of not less than 2i%e tho)sand pesos AP,,>>>.>>= nor (ore than
Twenty tho)sand pesos AP">,>>>.>>=, or i(prison(ent for not less than si' A+= years and one A1= day nor (ore than
twel%e A1"= years, or both, at the discretion of the co)rtC Pro8#+"+, That where the %iolation consists in fail)re or
ref)sal to re#ister e(ployees or hi(self, in case of the co%ered self-e(ployed or to ded)ct contrib)tions fro( the
e(ployees8 co(pensation and re(it the sa(e to the &&&, the penalty shall be a fine of not less 2i%e tho)sand pesos
AP,,>>>.>>= nor (ore than Twenty tho)sand pesos AP">,>>>.>>= and i(prison(ent for not less than si' A+= years and
one A1= day nor (ore than twel%e A1"= years.
MAf= 7f the act or o(ission penali;ed by this Act be co((itted by an association, partnership, corporation or any other
instit)tion, its (ana#in# head, directors or partners shall be liable for the penalties pro%ided in this Act for the offense.
MA#= Any e(ployee of the &&& who recei%es or keeps f)nds or property belon#in#, payable or deli%erable to the &&&
and who shall appropriate the sa(e, or shall take or (isappropriate, or shall consent, or thro)#h abandon(ent or
ne#li#ence, shall per(it any other person to take s)ch property or f)nds, wholly or partially, or shall otherwise be
#)ilty of (isappropriation of s)ch f)nds or property, shall s)ffer the penalties pro%ided in Article Two h)ndred
se%enteen of the *e%ised Penal Code.
MAh= Any e(ployer who, after ded)ctin# the (onthly contrib)tions or loan a(orti;ations fro( his e(ployee8s
co(pensation, fails to re(it the said ded)ction to the &&& within thirty A6>= days fro( the date they beca(e d)e,
shall be pres)(ed to ha%e (isappropriated s)ch contrib)tions or loan a(orti;ations and shall s)ffer the penalties
pro%ided in Article Three h)ndred fifteen of the *e%ised Penal Code.
MAi= Cri(inal action arisin# fro( a %iolation of the pro%isions of this Act (ay be co((enced by the &&& or the
e(ployee concerned either )nder this Act or in appropriate cases )nder the *e%ised Penal CodeC Pro8#+"+, That
s)ch cri(inal action (ay be filed by the &&& in the city or ()nicipality where the &&& office is located, if the %iolation
was co((itted within its territorial 4)risdiction or in Metro Manila, at the option of the &&&.
M&5C. "9. Go8"r&m"& A#+. 4 The establish(ent of the &&& shall not dis<)alify the (e(bers and e(ployers fro(
recei%in# s)ch #o%ern(ent assistance, financial or otherwise, as (ay be pro%ided.
M&5C. 6>. Tr(&'#or0 C*(,'". 4 Any e(ployer who is delin<)ent or has not re(itted all contrib)tions d)e and payable
to the &&& (ay, within si' A+= (onths fro( the effecti%ity of this Act, re(it said contrib)tions or s)b(it a proposal to
pay the sa(e in install(ent within a period of not (ore than twel%e A1"= (onths fro( the effecti%ity of this Act witho)t
inc)rrin# the prescribed penalty, s)b4ect to the i(ple(entin# r)les and re#)lations which the Co((ission (ay
prescribeC Pro8#+"+, That the e(ployer s)b(its the correspondin# collection lists to#ether with the re(ittance or
proposal to pay in install(entsC Pro8#+"+, f,r!"r, That in case the e(ployer fails to re(it contrib)tions within the si'-
(onth #race period or defa)lts in the pay(ent of any a(orti;ation pro%ided the appro%ed proposal, the prescribed
penalty shall be i(posed fro( the ti(e the contrib)tions first beca(e d)e as pro%ided in &ection "" Aa= hereof.M
SEC. :. S"%(r(1#*#0 C*(,'". 4 7f any pro%ision of this Act is declared in%alid, the other pro%isions not affected thereby
shall re(ain %alid.
SEC. ;. R"%"(*#&. C*(,'". 4 All laws, procla(ations, e'ec)ti%e orders, r)les and re#)lations or parts thereof
inconsistent with this Act are hereby repealed, (odified or a(ended accordin#lyC Pro8#+"+, That no person shall be
dee(ed to be %ested with any property or other ri#ht by %irt)e of the enact(ent or operation of this Act.
SEC. 3. Eff"$#8#0 C*(,'". 4 This Act shall take effect fifteen A1,= days after its co(plete p)blication in the Off#$#(*
G(2"" or in at least two A"= national newspapers of #eneral circ)lation whiche%er co(es earlier.
Appro%edC M(0 CG, G@@>

T.5
F1/5*$M5$T &5*/7C5 7$&:*A$C5 &@&T5M ACT 12 1997

*5P:0L7C ACT $1. E"91

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A$ ACT AM5$D7$F P*5&7D5$T7AL D5C*55 $1. 11+, A& AM5$D5D, 5DPA$D7$F A$D 7$C*5A&7$F T.5
C1/5*AF5 A$D 05$527T& 12 T.5 F1/5*$M5$T &5*/7C5 7$&:*A$C5 &@&T5M, 7$&T7T:T7$F *521*M&
T.5*57$ A$D 21* 1T.5* P:*P1&5&.

SECTION G. Presidential Decree $o. 11+, as a(ended, otherwise known as the TR"8#'"+ Go8"r&m"& S"r8#$"
I&',r(&$" A$ of G@>>T, is hereby f)rther a(ended to read as followsC
M&5CT71$ 1. T#*". -The title of this Act shall beC TT!" Go8"r&m"& S"r8#$" I&',r(&$" S0'"m A$ of G@@>.T
TA. DEFINITIONS
M&5C. ". D"f#&##o& of "rm'.- :nless the conte't otherwise indicates, the followin# ter(s shall (eanC
MAa= GSIS- The Fo%ern(ent &er%ice 7ns)rance &yste( created by Co((onwealth Act $o. 1E+J
MAb= Bo(r+- The 0oard of Tr)stees of the Fo%ern(ent &er%ice 7ns)rance &yste(J
MAc= Em%*o0"r- The national #o%ern(ent, its political s)bdi%isions, branches, a#encies or instr)(entalities, incl)din#
#o%ern(ent-owned or controlled corporations, and financial instit)tions with ori#inal charters, the constit)tional
co((issions and the 4)diciaryJ
MAd= Em%*o0"" or M"m1"r- Any person recei%in# co(pensation while in the ser%ice of an e(ployer as defined herein,
whether by election or appoint(ent, irrespecti%e of stat)s of appoint(ent, incl)din# baran#ay and &an##)nian
officialsJ
MAe= A$#8" M"m1"r- A (e(ber who is not separated fro( the ser%iceJ
MAf= D"%"&+"&'- Dependents shall be the followin#C Aa= the le#iti(ate spo)se dependent for s)pport )pon the
(e(ber or pensionerJ Ab= the le#iti(ate, le#iti(ated, le#ally adopted child, incl)din# the ille#iti(ate child, who is
)n(arried, not #ainf)lly e(ployed, not o%er the a#e of (a4ority, or is o%er the a#e of (a4ority b)t incapacitated and
incapable of self-s)pport d)e to a (ental or physical defect ac<)ired prior to a#e of (a4orityJ and Ac= the parents
dependent )pon the (e(ber for s)pportJ
MA#= Pr#m(r0 1"&"f#$#(r#"'- The le#al dependent spo)se )ntil heBshe re(arries and the dependent childrenJ
MAh= S"$o&+(r0 1"&"f#$#(r#"'- The dependent parents and, s)b4ect to the restrictions on dependent children, the
le#iti(ate descendantsJ
MAi= Com%"&'(#o&- The basic pay or salary recei%ed by an e(ployee, p)rs)ant to his electionBappoint(ent, e'cl)din#
per die(s, bon)ses, o%erti(e pay, honoraria, allowances and any other e(ol)(ents recei%ed in addition to the basic
pay which are not inte#rated into the basic pay )nder e'istin# lawsJ
MA4= Co&r#1,#o&- The a(o)nt payable to the F&7& by the (e(ber and the e(ployer in accordance with &ection , of
this ActJ
MAk= C,rr"& D(#*0 Com%"&'(#o&- The act)al daily co(pensation or the act)al (onthly co(pensation di%ided by the
n)(ber of workin# days in the (onth of contin#ency b)t not to e'ceed twenty-two A""= daysJ
MAl= A8"r(." Mo&!*0 Com%"&'(#o& 6AMC7- The <)otient arri%ed at after di%idin# the a##re#ate co(pensation
recei%ed by the (e(ber d)rin# his last thirty-si' A6+= (onths of ser%ice precedin# his separationBretire(entB
disabilityBdeath by thirty-si' A6+=, or by the n)(ber of (onths he recei%ed s)ch co(pensation if he has less than
thirty-si' A6+= (onths of ser%iceC Pro8#+"+, That the a%era#e (onthly co(pensation shall in no case e'ceed the
a(o)nt and rate as (ay be respecti%ely set by the 0oard )nder the r)les and re#)lations i(ple(entin# this Act as
deter(ined by the act)ary of the F&7&C Pro8#+"+, f,r!"r, That initially the a%era#e (onthly co(pensation shall not
e'ceed Ten tho)sand pesos AP1>,>>>.>>=, and pre(i)( shall be nine percent A9K= and twel%e percent A1"K= for
e(ployee and e(ployer co%erin# the AMC li(it and below and two percent A"K= and twel%e percent A1"K= for
e(ployee and e(ployer co%erin# the co(pensation abo%e the AMC li(itJ
MA(= R"8(*,"+ (8"r(." mo&!*0 $om%"&'(#o&- An a(o)nt e<)al to one h)ndred se%enty percent A17>K= of the first
1ne tho)sand pesos AP1,>>>.>>= of the a%era#e (onthly co(pensation pl)s one h)ndred percent A1>>K= of the
a%era#e (onthly co(pensation in e'cess of 1ne tho)sand pesos AP1,>>>.>>=J
MAn= L,m% ',m- The basic (onthly pension ()ltiplied by si'ty A+>=J
MAo= P"&'#o&"r- Any person recei%in# old-a#e per(anent total disability pension or any person who has recei%ed the
l)(p s)( e'cl)din# one recei%in# s)r%i%orship pension benefits as defined in &ection "> of this ActJ
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MAp= G(#&f,* O$$,%(#o&- Any prod)cti%e acti%ity that pro%ided the (e(ber with inco(e at least e<)al to the (ini()(
co(pensation of #o%ern(ent e(ployeesJ
MA<= D#'(1#*#0- Any loss or i(pair(ent of the nor(al f)nctions of the physical andBor (ental fac)lty of a (e(ber
which red)ces or eli(inates hisBher capacity to contin)e with hisBher c)rrent #ainf)l occ)pation or en#a#e in any
other #ainf)l occ)pationJ
MAr= To(* D#'(1#*#0- Co(plete incapacity to contin)e with his present e(ploy(ent or en#a#e in any #ainf)l occ)pation
d)e to the loss or i(pair(ent of the nor(al f)nctions of the physical andBor (ental fac)lties of the (e(berJ
MAs= P"rm(&"& To(* D#'(1#*#0- Accr)es or arises when reco%ery fro( the i(pair(ent (entioned in &ection " AH= is
(edically re(oteJ
MAt= T"m%or(r0 To(* D#'(1#*#0- Accr)es or arises when the i(paired physical andBor (ental fac)lties can be
rehabilitated andBor restored to their nor(al f)nctionsJ
MA)= P"rm(&"& P(r#(* D#'(1#*#0- Accr)es or arises )pon the irre%ocable loss or i(pair(ent of certain portionBs of the
physical fac)lties, despite which the (e(ber is able to p)rs)e a #ainf)l occ)pation.
TB. MEMBERSHIP IN THE GSIS
M&5C. 6. Com%,*'or0 M"m1"r'!#%. 4 Me(bership in the F&7& shall be co(p)lsory for all e(ployees recei%in#
co(pensation who ha%e not reached the co(p)lsory retire(ent a#e, irrespecti%e of e(ploy(ent stat)s, e'cept
(e(bers of the Ar(ed 2orces of the Philippines and the Philippine $ational Police, s)b4ect to the condition that they
()st settle first their financial obli#ation with the F&7&, and contract)als who ha%e no e(ployer and e(ployee
relationship with the a#encies they ser%e.
M5'cept for the (e(bers of the 4)diciary and constit)tional co((issions who shall ha%e life ins)rance only, all
(e(bers of the F&7& shall ha%e life ins)rance, retire(ent, and all other social sec)rity protections s)ch as disability,
s)r%i%orship, separation, and )ne(ploy(ent benefits.
M&5C. . Eff"$ of S"%(r(#o& from !" S"r8#$". 4 A (e(ber separated fro( the ser%ice shall contin)e to be a
(e(ber, and shall be entitled to whate%er benefits he has <)alified to in the e%ent of any contin#ency co(pensable
)nder this Act.
TC. SOURCES OF FUNDS
M&5C. ,. Co&r#1,#o&'. 4 Aa= 7t shall be (andatory for the (e(ber and e(ployer to pay the (onthly contrib)tions
specified in the followin# sched)leC
TMo&!*0 Com%"&'(#o& P"r$"&(." of Mo&!*0
Com%"&'(#o&
P(0(1*" 10
M"m1"r Em%*o0"r
7. Ma'i()( A%era#e
Monthly Co(pensation
AAMC= Li(it and 0elow 9.>K 1".>K
77. 1%er the Ma'i()(
AMC Li(it
-:p to the Ma'i()(
AMC Li(it 9.>K 1".>K
-7n 5'cess of the
AMC Li(it ".>K 1".>K
MMe(bers of the 4)diciary and constit)tional co((issioners shall pay three percent A6K= of their (onthly
co(pensation as personal share and their e(ployers a correspondin# three percent A6K= share for their life
ins)rance co%era#e.
MAb= The e(ployer shall incl)de in its ann)al appropriation the necessary a(o)nts for its share of the contrib)tions
indicated abo%e, pl)s any additional pre(i)(s that (ay be re<)ired on acco)nt of the ha;ards or risks of its
e(ployee8s occ)pation.
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MAc= 7t shall be (andatory and co(p)lsory for all e(ployers to incl)de the pay(ent of contrib)tions in their ann)al
appropriations. Penal sanctions shall be i(posed )pon e(ployers who fail to incl)de the pay(ent of contrib)tions in
their ann)al appropriations or otherwise fail to re(it the acc)rateBe'act a(o)nt of contrib)tions on ti(e, or delay the
re(ittance of pre(i)( contrib)tions to the F&7&. The heads of offices and a#encies shall be ad(inistrati%ely liable
for non-re(ittance or delayed re(ittance of pre(i)( contrib)tions to the F&7&.
M&5C. +. Co**"$#o& (&+ R"m#(&$" of Co&r#1,#o&'. - Aa= The e(ployer shall report to the F&7& the na(es of all its
e(ployees, their correspondin# e(ploy(ent stat)s, positions, salaries and s)ch other pertinent infor(ation, incl)din#
s)bse<)ent chan#es therein, if any, as (ay be re<)ired by the F&7&J the e(ployer shall ded)ct each (onth fro( the
(onthly salary or co(pensation of each e(ployee the contrib)tion payable by hi( in accordance with the sched)le
prescribed in the r)les and re#)lations i(ple(entin# this Act.
MAb= 5ach e(ployer shall re(it directly to the F&7& the e(ployee8s and e(ployer8s contrib)tions within the first ten
A1>= days of the calendar (onth followin# the (onth to which the contrib)tions apply. The re(ittance by the e(ployer
of the contrib)tion to the F&7& shall take priority o%er and abo%e the pay(ent of any and all obli#ations, e'cept
salaries and wa#es of its e(ployees.
M&5C. 7. I&"r"' o& D"*(0"+ R"m#(&$"'. - A#encies which delay the re(ittance of any and all (onies d)e the
F&7& shall be char#ed interests as (ay be prescribed by the 0oard b)t not less than two percent A"K= si(ple
interest per (onth. &)ch interest shall be paid by the e(ployers concerned.
M&5C. E. Go8"r&m"& G,(r(&"". - The #o%ern(ent of the *ep)blic of the Philippines hereby #)arantees the
f)lfill(ent of the obli#ations of the F&7& to its (e(bers as and when they fall d)e.
TD. BENEFITS
M&5C. 9. Com%,(#o& of !" B('#$ Mo&!*0 P"&'#o&. - Aa= The basic (onthly pension is e<)al toC
M1= thirty-se%en and one-half percent A67.,K= of the re%al)ed a%era#e (onthly co(pensationJ pl)s
M"= two and one-half percent A".,K= of said re%al)ed a%era#e (onthly co(pensation for each year of ser%ice in
e'cess of A1,= yearsC Pro8#+"+, That the basic (onthly pension shall not e'ceed ninety percent A9>K= of the a%era#e
(onthly co(pensation.
MAb= The basic (onthly pension (ay be ad4)sted )pon the reco((endation of the President and Feneral Mana#er of
the F&7& and appro%ed by the President of the Philippines in accordance with the r)les and re#)lations prescribed by
the F&7&C Pro8#+"+, !o)"8"r, that the basic (onthly pension shall not be less than 1ne tho)sand and three h)ndred
pesos AP1,6>>.>>=C Pro8#+"+, f,r!"r, that the basic (onthly pension for those who ha%e rendered at least twenty A">=
years of ser%ice after the effecti%ity of this Act shall not be less than Two tho)sand fo)r h)ndred pesos AP",>>.>>= a
(onth.
M&5C. 1>. Com%,(#o& of S"r8#$". - Aa= The co(p)tation of ser%ice for the p)rpose of deter(inin# the a(o)nt of
benefits payable )nder this Act shall be fro( the date of ori#inal appoint(entBelection, incl)din# periods of ser%ice at
different ti(es )nder one or (ore e(ployers, those perfor(ed o%erseas )nder the a)thority of the *ep)blic of the
Philippines, and those that (ay be prescribed by the F&7& in coordination with the Ci%il &er%ice Co((ission.
MAb= All ser%ice credited for retire(ent, resi#nation or separation for which correspondin# benefits ha%e been awarded
)nder this Act or other laws shall be e'cl)ded in the co(p)tation of ser%ice in case of reinstate(ent in the ser%ice of
an e(ployer and s)bse<)ent retire(ent or separation which is co(pensable )nder this Act.
M2or the p)rpose of this section, the ter( ser%ice shall incl)de f)ll-ti(e ser%ice with co(pensationC Pro8#+"+, that
part-ti(e and other ser%ices with co(pensation (ay be incl)ded )nder s)ch r)les and re#)lations as (ay be
prescribed by the F&7&.
TSEPARATION BENEFITS
M&5C. 11. S"%(r(#o& B"&"f#'. - The separation benefits shall consist ofC Aa= a cash pay(ent e<)i%alent to one
h)ndred percent A1>>K= of his a%era#e (onthly co(pensation for each year of ser%ice he paid contrib)tions, b)t not
less than Twel%e tho)sand pesos AP1",>>>= payable )pon reachin# si'ty A+>= years of a#e )pon separation,
whiche%er co(es laterC Pro8#+"+, that the (e(ber resi#ns or separates fro( the ser%ice after he has rendered at
least three A6= years of ser%ice b)t less than fifteen A1,= yearsJ or
MAb= a cash pay(ent e<)i%alent to ei#hteen A1E= ti(es his basic (onthly pension at the ti(e of resi#nation or
separation, pl)s an old-a#e pension benefit e<)al to the basic (onthly pension payable (onthly for life )pon
reachin# the a#e of si'ty A+>=C Pro8#+"+, that the (e(ber resi#ns or separates fro( the ser%ice after he has rendered
at least fifteen A1,= years of ser%ice and is below si'ty A+>= years of a#e at the ti(e of resi#nation or separation.
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M&5C. 1". U&"m%*o0m"& or I&8o*,&(r0 S"%(r(#o& B"&"f#'. - :ne(ploy(ent benefits in the for( of (onthly cash
pay(ents e<)i%alent to fifty percent A,>K= of the a%era#e (onthly co(pensation shall be paid to a per(anent
e(ployee who is in%ol)ntarily separated fro( the ser%ice d)e to the abolition of his office or position )s)ally res)ltin#
fro( reor#ani;ationC Pro8#+"+, That he has been payin# inte#rated contrib)tions for at least one A1= year prior to
separation. :ne(ploy(ent benefits shall be paid in accordance with the followin# sched)lesC
TCo&r#1,#o&' M(+" B"&"f# D,r(#o&
1 year b)t less than 6 years " (onths
6 or (ore years b)t less than + years 6 (onths
+ or (ore years b)t less than 9 years (onths
9 or (ore years b)t less than 11 years , (onths
11 or (ore years b)t less than 1, years + (onths
MThe first pay(ent shall be e<)i%alent to two A"= (onthly benefits. A se%en-day A7= waitin# period shall be i(posed on
s)cceedin# (onthly pay(ents.
MAll acc)()lated )ne(ploy(ent benefits paid to the e(ployee d)rin# his entire (e(bership with the F&7& shall be
ded)cted fro( %ol)ntary separation benefits.
MThe F&7& shall prescribe the detailed #)idelines in the operationali;ation of this section in the r)les and re#)lations
i(ple(entin# this Act.
TRETIREMENT BENEFITS
M&5C. 16. R"#r"m"& B"&"f#'. - Aa= *etire(ent benefits shall beC
MA1= the l)(p s)( pay(ent as defined in this Act payable at the ti(e of retire(ent pl)s an old-a#e pension benefit
e<)al to the basic (onthly pension payable (onthly for life, startin# )pon e'piration of the fi%e-year A,= #)aranteed
period co%ered by the l)(p s)(J or
MA"= cash pay(ent e<)i%alent to ei#hteen A1E= (onths of his basic (onthly pension pl)s (onthly pension for life
payable i((ediately with no fi%e-year A,= #)arantee.
MAb= :nless the ser%ice is e'tended by appropriate a)thorities, retire(ent shall be co(p)lsory for an e(ployee of
si'ty-fi%e A+,= years of a#e with at least fifteen A1,= years of ser%iceC Pro8#+"+, That if he has less than fifteen A1,=
years of ser%ice, he (ay be allowed to contin)e in the ser%ice in accordance with e'istin# ci%il ser%ice r)les and
re#)lations.
M&5C. 16-A. Co&+##o&' for E&#*"m"&. 4 A (e(ber who retires fro( the ser%ice shall be entitled to the retire(ent
benefits en)(erated in para#raph Aa= of &ection 16 hereofC Pro8#+"+, ThatC
A1= he has rendered at least fifteen years of ser%iceJ
A"= he is at least si'ty A+>= years of a#e at the ti(e of retire(entJ and
A6= he is not recei%in# a (onthly pension benefit fro( per(anent total disability.
M&5C. 1. P"r#o+#$ P"&'#o& A+A,'m"&. 4 The (onthly pension of all pensioners incl)din# all those recei%in#
s)r%i%orship pension benefits shall be periodically ad4)sted as (ay be reco((ended by the F&7& act)ary and
appro%ed by the 0oard in accordance with the r)les and re#)lations prescribed by the F&7&.
TPERMANENT DISABILITY BENEFITS
M&5C. 1,. G"&"r(* Co&+##o&' for E&#*"m"&. 4 A (e(ber who s)ffers per(anent disability for reasons not d)e to his
#ra%e (iscond)ct, notorio)s ne#li#ence, habit)al into'ication, or willf)l intention to kill hi(self or another, shall be
entitled to the benefits pro%ided for )nder &ections 1+ and 17 i((ediately followin#, s)b4ect to the correspondin#
conditions thereof.
M&5C. 1+. P"rm(&"& To(* D#'(1#*#0 B"&"f#'. 4 Aa= 7f the per(anent disability is total, he shall recei%e a (onthly
inco(e benefit for life e<)al to the basic (onthly pension effecti%e fro( the date of disabilityC Pro8#+"+, ThatC
A1= he is in the ser%ice at the ti(e of disabilityJ or
A"= if separated fro( the ser%ice, he has paid at least thirty-si' A6+= (onthly contrib)tions within the fi%e A,= year
period i((ediately precedin# disability, or has paid a total of at least one h)ndred ei#hty A1E>= (onthly contrib)tions,
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prior to his disabilityC Pro8#+"+, f,r!"r, That if at the ti(e of disability, he was in the ser%ice and has paid a total of at
least one h)ndred ei#hty A1E>= (onthly contrib)tions, in addition to the (onthly inco(e benefit, he shall recei%e a
cash pay(ent e<)i%alent to ei#hteen A1E= ti(es his basic (onthly pensionC Pro8#+"+, f#&(**0, That a (e(ber cannot
en4oy the (onthly inco(e benefit for per(anent disability and the old-a#e retire(ent si()ltaneo)sly.
MAb= 7f a (e(ber who s)ffers per(anent total disability does not satisfy conditions A1= and A"= in para#raph Aa= of this
section b)t has rendered at least three A6= years of ser%ice at the ti(e of his disability, he shall be ad%anced the cash
pay(ent e<)i%alent to one h)ndred percent A1>>K= of his a%era#e (onthly co(pensation for each year of ser%ice he
paid contrib)tions, b)t not less than Twel%e tho)sand pesos AP1",>>>.>>= which sho)ld ha%e been his separation
benefit.
MAc= :nless the (e(ber has reached the (ini()( retire(ent a#e, disability benefit shall be s)spended whenC
MA1= he is ree(ployedJ or
MA"= he reco%ers fro( his disability as deter(ined by the F&7&, whose decision shall be final and bindin#J or
MA6= he fails to present hi(self for (edical e'a(ination when re<)ired by the F&7&.
MAd= The followin# disabilities shall be dee(ed total and per(anentC

MA1= co(plete loss of si#ht of both eyesJ
MA"= loss of two A"= li(bs at or abo%e the ankle or wristJ
MA6= per(anent co(plete paralysis of two A"= li(bsJ
MA= brain in4)ry res)ltin# in inc)rable i(becility or insanityJ and
MA,= s)ch other cases as (ay be deter(ined by the F&7&.
M&5C. 17. P"rm(&"& P(r#(* D#'(1#*#0 B"&"f#'. 4 Aa= 7f the disability is partial, he shall recei%e a cash pay(ent in
accordance with a sched)le of disabilities to be prescribed by the F&7&C Pro8#+"+, That he satisfies either conditions
A1= or A"= of &ection 1+ Aa=J
MAb= The followin# disabilities shall be dee(ed per(anent partialC
MA1= co(plete and per(anent loss of the )se ofC
Ai= any fin#er
Aii= any toe
Aiii= one ar(
Ai%= one hand
A%= one foot
A%i= one le#
A%ii= one or both ears
A%iii= hearin# of one or both ears
Ai'= si#ht of both eyes

MA"= s)ch other cases as (y be deter(ined by the F&7&.
TTEMPORARY DISABILITY BENEFITS
M&5C. 1E. T"m%or(r0 To(* D#'(1#*#0 B"&"f#'. 4 Aa= A (e(ber who s)ffers te(porary total disability for reasons not
d)e to any of the conditions en)(erated in &ection 1, hereof shall be entitled to se%enty-fi%e percent A7,K= of his
c)rrent daily co(pensation for each day or fraction thereof of te(porary disability benefit not e'ceedin# one h)ndred
twenty A1">= days in one calendar year after e'ha)stin# all his sick lea%e credits and collecti%e bar#ainin# a#ree(ent
sick lea%e benefits, if any, b)t not earlier than the fo)rth day of his te(porary total disabilityC Pro8#+"+, ThatC
MA1= he is in the ser%ice at the ti(e of his disabilityJ or
MA"= if separated, he has rendered at least three A6= years of ser%ice and has paid at least si' A+= (onthly
contrib)tions in the twel%e-(onth period i((ediately precedin# his disability.
TPro8#+"+, !o)"8"r, That a (e(ber cannot en4oy the te(porary total disability benefit and sick lea%e pay
si()ltaneo)slyC Pro8#+"+, f,r!"r, That if the disability re<)ires (ore e'tensi%e treat(ent that lasts beyond one
h)ndred twenty A1">= days, the pay(ent of the te(porary total disability benefit (ay be e'tended by the F&7& b)t not
to e'ceed a total of two h)ndred forty A">= days.
MAb= The te(porary total disability benefit shall in no case be less than &e%enty pesos AP7>.>>= a day.
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MAc= The notices re<)ired of the (e(ber and the e(ployer, the (ode of pay(ent, and the other re<)ire(ents for
entitle(ent to te(porary total disability benefits shall be pro%ided in the r)les and re#)lations to be prescribed by the
F&7&.
M&5C. 19. No&4'$!"+,*"+ D#'(1#*#0. 4 2or in4)ries or illnesses res)ltin# in a disability not listed in the sched)le of
partialBtotal disability pro%ided herein, the F&7& shall deter(ined the nat)re of the disability and the correspondin#
benefits therefor.
TSURVIVORSHIP BENEFITS
M&5C. ">. S,r8#8or'!#% B"&"f#'. 4 3hen a (e(ber or pensioner dies, the beneficiaries shall be entitled to
s)r%i%orship benefits pro%ided in &ections "1 and "" here)nder s)b4ect to the conditions therein pro%ided for. The
s)r%i%orship pension shall consist ofC
A1= the basic s)r%i%orship pension which is fifty percent A,>K= of the basic (onthly pensionJ and
A"= the dependent children8s pension not e'ceedin# fifty percent A,>K= of the basic (onthly pension
.
M&5C. "1. D"(! of ( M"m1"r. 4 Aa= :pon the death of a (e(ber, the pri(ary beneficiaries shall be entitled toC
A1= s)r%i%orship pensionC Pro8#+"+, That the deceasedC
Ai= was in the ser%ice at the ti(e of his deathJ or
Aii= if separated fro( the ser%ice, has at least three A6= years of ser%ice at the ti(e of his death and
has paid thirty-si' A6+= (onthly contrib)tions within the fi%e-year period i((ediately precedin# his
deathJ or has paid a total of at least one h)ndred ei#hty A1E>= (onthly contrib)tions prior to his
deathJ or
A"= the s)r%i%orship pension pl)s a cash pay(ent e<)i%alent to one h)ndred percent A1>>K= of his a%era#e
(onthly co(pensation for e%ery year of ser%iceC Pro8#+"+, That the deceased was in the ser%ice at the ti(e
of his death with at least three A6= years of ser%iceJ or
A6= a cash pay(ent e<)i%alent to one h)ndred percent A1>>K= of his a%era#e (onthly co(pensation for
each year of ser%ice he paid contrib)tions, b)t not less than Twel%e tho)sand pesos AP1",>>>.>>=C
Pro8#+"+, That the deceased has rendered at least three A6= years of ser%ice prior to his death b)t does not
<)alify for the benefits )nder ite( A1= or A"= of this para#raph.
Ab= The s)r%i%orship pension shall be paid as followsC
A1= when the dependent spo)se is the only s)r%i%or, heBshe shall recei%e the basic s)r%i%orship pension for
life or )ntil heBshe re(arriesJ
A"= when only dependent children are the s)r%i%ors, they shall be entitled to the basic s)r%i%orship pension
for as lon# as they are <)alified, pl)s the dependent children8s pension e<)i%alent to ten percent A1>K= of
the basic (onthly pension for e%ery dependent child not e'ceedin# fi%e A,=, co)nted fro( the yo)n#est and
witho)t s)bstit)tionJ
A6= when the s)r%i%ors are the dependent spo)se and the dependent children, the dependent spo)se shall
recei%e the basic s)r%i%orship pension for life or )ntil heBshe re(arries, and the dependent children shall
recei%e the dependent children8s pension (entioned in the i((ediately precedin# para#raph A"= hereof.
Ac= 7n the absence of pri(ary beneficiaries, the secondary beneficiaries shall be entitled toC
A1= the cash pay(ent e<)i%alent to one h)ndred percent A1>>K= of his a%era#e (onthly co(pensation for
each year of ser%ice he paid contrib)tions, b)t not less than Twel%e tho)sand pesos AP1",>>>.>>=C
Pro8#+"+, That the (e(ber is in the ser%ice at the ti(e of his death and has at least three A6= years of
ser%iceJ or
A"= in the absence of secondary beneficiaries, the benefits )nder this para#raph shall be paid to his le#al
heirs.
Ad= 2or p)rposes of the s)r%i%orship benefits, le#iti(ate children shall incl)de le#ally adopted and le#iti(ated
children.
M&5C. "". D"(! of ( P"&'#o&"r. 4 :pon the death of an old-a#e pensioner or a (e(ber recei%in# the (onthly
inco(e benefit for per(anent disability, the <)alified beneficiaries shall be entitled to the s)r%i%orship pension defined
in &ection "> of this Act, s)b4ect to the pro%isions of para#raph Ab= of &ection "1 hereof. 3hen the pensioner dies
within the period co%ered by the l)(p s)(, the s)r%i%orship pension shall be paid only after the e'piration of the said
period.
TFUNERAL BENEFITS
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M&5C. "6. F,&"r(* B"&"f#'. 4 The a(o)nt of the f)neral benefits shall be deter(ined and specified by the F&7& in the
r)les and re#)lations b)t shall not be less than Twel%e tho)sand pesos AP1",>>>.>>=C Pro8#+"+, That it shall be
increased to at least 5i#hteen tho)sand pesos AP1E,>>>.>>= after fi%e A,= years and shall be paid )pon the death ofC
Aa= an acti%e (e(ber as defined )nder &ection " Ae= of this ActJ or
Ab= a (e(ber who has been separated fro( the ser%ice, b)t who (ay be entitled to f)t)re benefit p)rs)ant
to &ection of this ActJ or
Ac= a pensioner, as defined in &ection " Ao= of this ActJ or
Ad= a retiree who at the ti(e of his retire(ent was of pensionable a#e )nder this Act b)t who opted to retire
)nder *ep)blic Act $o. 1+1+.
TLIFE INSURANCE BENEFITS
M&5C. ". Com%,*'or0 L#f" I&',r(&$". 4 All e(ployees e'cept for Me(bers of the Ar(ed 2orces of the Philippines
AA2P= and the Philippine $ational Police AP$P= shall, )nder s)ch ter(s and conditions as (ay be pro()l#ated by the
F&7&, be co(p)lsorily co%ered with life ins)rance, which shall a)to(atically take effect as followsC
A1= for those e(ployed after the effecti%ity of this Act, their ins)rance shall take effect on the date of their
e(ploy(entJ
A"= for those whose ins)rance will (at)re after the effecti%ity of this Act, their ins)rance shall be dee(ed
renewed on the day followin# the (at)rity or e'piry date of their ins)ranceJ
A6= for those witho)t any life ins)rance as of the effecti%ity of this Act, their ins)rance shall take effect
followin# said effecti%ity.
M&5C. ",. D#8#+"&+'. 4 An ann)al di%idend (ay be #ranted to all (e(bers of the F&7& whose life ins)rance is in
force for at least one A1= year in accordance with a di%idends allocation for()la to be deter(ined by the F&7&.
M&5C. "+. O%#o&(* I&',r(&$". 4 &)b4ect to the r)les and re#)lations prescribed by the F&7&, a (e(ber (ay apply for
ins)rance andBor pre-need co%era#e e(bracin# life, health, hospitali;ation, ed)cation, (e(orial plans, and s)ch
other plans as (ay be desi#ned by the F&7&, for hi(self andBor his dependents. Any e(ployer (ay likewise apply for
#ro)p ins)rance co%era#e for its e(ployees. The pay(ent of the pre(i)(sBinstall(ents for optional ins)rance and
pre-need prod)cts (ay be (ade by the ins)red or his e(ployer andBor any person acceptable to the F&7&.
M&5C. "7. R"#&',r(&$". 4 The F&7& (ay reins)re any of its interests or part thereof with any pri%ate co(pany or
reins)rer whether do(estic of forei#nC Pro8#+"+, That the F&7& shall s)b(it an ann)al report on its reins)rance
operations to the 7ns)rance Co((ission.
TE. ADJUDICATION OF CLAIMS AND DISPUTES
M&5C. "E. Pr"'$r#%#o&. 4 Clai(s for benefits )nder this Act e'cept for life and retire(ent shall prescribe after fo)r A=
years fro( the date of contin#ency.
M&5C. "9. F($#*#0 of P(0m"&. 4 The F&7& shall prescribe r)les and re#)lations to facilitate pay(ent of benefits,
proceeds, and clai(s )nder this Act and any other laws ad(inistered by the F&7&. Pay(ents (ade by the F&7& prior
to its receipt of an ad%erse clai(, to a beneficiary or clai(ant s)bse<)ently fo)nd not entitled thereto, shall not bar
the le#al and eli#ible recipient to his ri#ht to de(and the pay(ent of benefits, proceeds, and clai(s fro( the F&7&,
who shall, howe%er, ha%e a ri#ht to instit)te the appropriate action in a co)rt of law a#ainst the ineli#ible recipient.
M&5C. 6>. S"*"m"& of D#'%,"'. 4 The F&7& shall ha%e ori#inal and e'cl)si%e 4)risdiction to settle any disp)tes
arisin# )nder this Act and any other laws ad(inistered by the F&7&.
The 0oard (ay desi#nate any (e(ber of the 0oard, or official of the F&7& who is a lawyer, to act as hearin# officer
to recei%e e%idence, (ake findin#s of fact and s)b(it reco((endations, to#ether with all doc)(entary and
testi(onial e%idence to the 0oard within thirty A6>= workin# days fro( the ti(e the parties ha%e closed their respecti%e
e%idence and filed their last pleadin#. The 0oard shall decide the case within thirty A6>= days fro( the receipt of the
hearin# officer8s findin#s and reco((endations. The cases heard directly by the 0oard shall be decided within thirty
A6>= workin# days fro( the ti(e they are s)b(itted by the parties for decision.
M&5C. 61. A%%"(*'. 4 Appeals fro( any decision or award of the 0oard shall be #o%erned by *)les 6 and , of the
1997 *)les of Ci%il Proced)re adopted by the &)pre(e Co)rt on April E, 1997 which will take effect on 9)ly 1, 1997C
Pro8#+"+, That pendin# cases and those filed prior to 9)ly 1, 1997 shall be #o%erned by the applicable r)les of
proced)reC Pro8#+"+, f,r!"r, That the appeal shall take precedence o%er all other cases e'cept cri(inal cases when
the penalty of life i(prison(ent or death or r"$*,'#o& %"r%",( is i(posable.
The appeal shall not stay the e'ec)tion of the order or award )nless ordered by the 0oard, by the Co)rt of Appeals or
by the &)pre(e Co)rt and the appeal shall be witho)t pre4)dice to the special ci%il action of certiorari when proper.
M&5C. 6". E9"$,#o& of D"$#'#o&. 4 3hen no appeal is perfected and there is no order to stay by the 0oard, by the
Co)rt of Appeals or by the &)pre(e Co)rt, any decision or award of the 0oard shall be enforced and e'ec)ted in the
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sa(e (anner as decisions of the *e#ional Trial Co)rt. 2or this p)rpose, the 0oard shall ha%e the power to iss)e to
the city or pro%incial sheriff or its appointed sheriff s)ch writs of e'ec)tion as (ay be necessary for the enforce(ent
of s)ch decision or award, and any person who shall fail or ref)se to co(ply with s)ch decision, award, writ or
process after bein# re<)ired to do so shall, )pon application by the F&7&, be p)nished for conte(pt.
M&5C. 66. O(!', W#&"''"', (&+ Pro+,$#o& of R"$or+'. 4 3hen a)thori;ed by the 0oard, an official or e(ployee of
the F&7& shall ha%e the power to ad(inister oath and affir(ation, take deposition, certify to official acts, and iss)e
',1%o"&( (+ "'#f#$(&+,m and ',1%o"&( +,$"' "$,m to co(pel the attendance of witnesses and the prod)ction of
books, papers, correspondences, and other records dee(ed necessary as e%idence in connection with any <)estion
arisin# )nder this Act. Any case of cont)(acy shall be dealt with in accordance with the pro%isions of &ection ,E> of
the *e%ised Ad(inistrati%e Code.
TF. FUNDS OF THE GSIS
M&5C. 6. F,&+'. 4 All contrib)tions payable )nder &ection , of this Act to#ether with the earnin#s and accr)als
thereon shall constit)te the F&7& &ocial 7ns)rance 2)nd. The said f)nd shall be )sed to finance the benefits
ad(inistered by the F&7& )nder this Act. 7n addition, the F&7& shall ad(inister the optional ins)rance f)nd for the
ins)rance co%era#e described in &ection "+ hereof, the 5(ployees8 Co(pensation 7ns)rance 2)nd created )nder
P.D. +"+, as a(ended, Feneral 7ns)rance 2)nd created )nder Act $o. +,+, as a(ended, and s)ch other special
f)nds e'istin# or that (ay be created for special #ro)ps or persons renderin# ser%ices to the #o%ern(ent. The F&7&
shall (aintain the re<)ired reser%es to #)arantee the f)lfill(ent of its obli#ations )nder this Act.
The f)nds of the F&7& shall not be )sed for p)rposes other than what are pro%ided for )nder this Act. Moreo%er, no
portion of the f)nds of the F&7& or inco(e thereof shall accr)e to the Feneral 2)nd of the national #o%ern(ent and
its political s)bdi%isions, instr)(entalities and other a#encies incl)din# #o%ern(ent-owned and controlled
corporations e'cept as (ay be allowed )nder this Act.
M&5C. 6,. D"%o'#' (&+ D#'1,r'"m"&'. 4 All re%en)es collected and all accr)als thereto shall be deposited,
ad(inistered and disb)rsed in accordance with the law. A (a'i()( e'pense loadin# of twel%e percent A1"K= of the
yearly re%en)es fro( all so)rces (ay be disb)rsed for ad(inistrati%e and operational e'penses e'cept as (ay be
otherwise appro%ed by the President of the Philippines on the basis of act)arial and (ana#e(ent st)dies.
M&5C. 6+. I&8"'m"& of F,&+'. 4 The f)nds of the F&7& which are not needed to (eet the c)rrent obli#ations (ay be
in%ested )nder s)ch ter(s and conditions and r)les and re#)lations as (ay be prescribed by the 0oardC Pro8#+"+,
That in%est(ents shall satisfy the re<)ire(ents of li<)idity, safetyBsec)rity and yield in order to ens)re the act)arial
sol%ency of the f)nds of the F&7&C Pro8#+"+, f,r!"r, That the F&7& shall s)b(it an ann)al report on all in%est(ents
(ade to both .o)ses of Con#ress of the Philippines, to witC
Aa= in interest-bearin# bonds or sec)rities or other e%idence of indebtedness of the Fo%ern(ent of the
PhilippinesJ
Ab= in interest-bearin# deposits or sec)rities in any do(estic bank doin# b)siness in the PhilippinesC
Pro8#+"+, That in the case of s)ch deposits, there shall not e'ceed at any ti(e the )ni(paired capital and
s)rpl)s or total pri%ate deposits of the depository bank, whiche%er is s(allerC Pro8#+"+, f,r!"r, That the said
bank has prior desi#nation as a depository for the p)rpose by the Monetary 0oard of the Central Monetary
A)thorityJ
Ac= in direct ho)sin# loans to (e(bers and #ro)p ho)sin# pro4ects sec)red by first (ort#a#e, #i%in# priority
to the low inco(e #ro)ps and in short and (edi)( ter( loans to (e(bers s)ch as salary, policy,
ed)cational, e(er#ency stock p)rchase plan and other si(ilar loansC Pro8#+"+, That no less than forty
percent A>K= of the in%estible f)nd of the F&7& &ocial 7ns)rance 2)nd shall be in%ested for these p)rposesJ
Ad= in bonds, sec)rities, pro(issory notes or other e%idence of indebtedness of ed)cational or (edical
instit)tions to finance the constr)ction, i(pro%e(ent and (aintenance of schools and hospitalsJ
Ae= in real estate property incl)din# shares of stocks in%ol%in# real state property and in%est(ents sec)red
by first (ort#a#es on real estate or other collaterals acceptable to the F&7&C Pro8#+"+, That s)ch in%est(ent
shall, in the deter(ination of the 0oard, redo)nd to the benefit of the F&7&, its (e(bers as well as the
#eneral p)blicJ
Af= in debt instr)(ents and other sec)rities traded in the secondary (arketsJ
A#= in loans to, or in bonds, debent)res, pro(issory notes or other e%idence of indebtedness of any sol%ent
corporation created or e'istin# )nder the laws of the PhilippinesJ
Ah= in co((on and preferred stocks of any sol%ent corporation or financial instit)tion created or e'istin#
)nder the laws of the Philippines listed in the stock e'chan#e with pro%en track record of profitability o%er the
last three A6= years and pay(ent of di%idends at least once o%er the sa(e periodJ
Ai= in do(estic ()t)al f)nds incl)din# in%est(ents related to the operations of ()t)al f)ndsJ and
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A4= in forei#n ()t)al f)nds and in forei#n c)rrency deposits or forei#n c)rrency-deno(inated debts, non-
spec)lati%e e<)ities and other financial instr)(ents or other assets iss)ed in accordance with e'istin# laws
of the co)ntries where s)ch financial instr)(ents are iss)edC Pro8#+"+, That these instr)(ents or assets are
listed in bo)rses of the respecti%e co)ntries where these instr)(ents or assets are iss)edC Pro8#+"+, f,r!"r,
That the iss)in# co(pany has pro%en track record of profitability o%er the last three A6= years and pay(ent
of di%idends at least once o%er the sa(e period.
M&5C. 67. R"$or+' (&+ R"%or'. - The F&7& shall keep and ca)se to keep s)ch records as (ay be necessary for the
p)rpose of (akin# act)arial st)dies, calc)lations and %al)ations of the f)nds of the F&7& incl)din# s)ch data needed
in the co(p)tation of rates of disability, (ortality, (orbidity, separation and retire(ent a(on# the (e(bers and any
other infor(ation )sef)l for the ad4)st(ent of the benefits of the (e(bers. The F&7& shall (aintain appropriate
books of acco)nts to record its assets, liabilities, inco(e, e'penses, receipts and disb)rse(ent of f)nds and other
financial transactions and operations.
M&5C. 6E. E9(m#&(#o& (&+ V(*,(#o& of !" F,&+'. 4 The F&7& shall (ake a periodic act)arial e'a(ination and
%al)ation of its f)nds in accordance with accepted act)arial principles.
M&5C. 69. E9"m%#o& from T(9, L".(* Pro$"'' (&+ L#"&. 4 7t is hereby declared to be the policy of the &tate that the
act)arial sol%ency of the f)nds of the F&7& shall be preser%ed and (aintained at all ti(es and that contrib)tion rates
necessary to s)stain the benefits )nder this Act shall be kept as low as possible in order not to b)rden the (e(bers
of the F&7& and their e(ployers. Ta'es i(posed on the F&7& tend to i(pair the act)arial sol%ency of its f)nds and
increase the contrib)tion rate necessary to s)stain the benefits of this Act. Accordin#ly, notwithstandin# any laws to
the contrary, the F&7&, its assets, re%en)es incl)din# all accr)als thereto, and benefits paid, shall be e'e(pt fro( all
ta'es, assess(ents, fees, char#es, or d)ties of all kinds. These e'e(ptions shall contin)e )nless e'pressly and
specifically re%oked and any assess(ent a#ainst the F&7& as of the appro%al of this Act are hereby considered paid.
Conse<)ently, all laws, ordinances, re#)lations, iss)ances, opinions or 4)rispr)dence contrary to or in dero#ation of
this pro%ision are hereby dee(ed repealed, s)perseded and rendered ineffecti%e and witho)t le#al force and effect.
MMoreo%er, these e'e(ptions shall not be affected by s)bse<)ent laws to the contrary )nless this section is
e'pressly, specifically and cate#orically re%oked or repealed by law and a pro%ision is enacted to s)bstit)te or replace
the e'e(ption referred to herein as an essential factor to (aintain or protect the sol%ency of the f)nd, notwithstandin#
and independently of the #)aranty of the national #o%ern(ent to sec)re s)ch sol%ency or liability.
MThe f)nds andBor the properties referred to herein as well as the benefits, s)(s or (onies correspondin# to the
benefits )nder this Act shall be e'e(pt fro( attach(ent, #arnish(ent, e'ec)tion, le%y or other processes iss)ed by
the co)rts, <)asi-4)dicial a#encies or ad(inistrati%e bodies incl)din# Co((ission on A)dit AC1A= disallowances and
fro( all financial obli#ations of the (e(bers, incl)din# his pec)niary acco)ntability arisin# fro( or ca)sed or
occasioned by his e'ercise or perfor(ance of his official f)nctions or d)ties, or inc)rred relati%e to or in connection
with his position or work e'cept when his (onetary liability, contract)al or otherwise, is in fa%or of the F&7&.
TG. ADMINISTRATION
M&5C. >. Im%*"m"&#&. Bo+0. - The Fo%ern(ent &er%ice 7ns)rance &yste( as created )nder Co((onwealth Act
$o. 1E+ shall i(ple(ent the pro%isions of this Act.
M&5C. 1. Po)"r' (&+ F,&$#o&' of !" GSIS. 4 The F&7& shall e'ercise the followin# powers and f)nctionsC
Aa= to for()late, adopt, a(end andBor rescind s)ch r)les and re#)lations as (ay be necessary to carry o)t
the pro%isions and p)rposes of this Act, as well as the effecti%e e'ercise of the powers and f)nctions, and
the dischar#e of d)ties and responsibilities of the F&7&, its officers and e(ployeesJ
Ab= to adopt or appro%e the ann)al and s)pple(ental b)d#et of receipts and e'pendit)res incl)din# salaries
and allowances of the F&7& personnelJ to a)thori;e s)ch capital and operatin# e'pendit)res and
disb)rse(ents of the F&7& as (ay be necessary and proper for the effecti%e (ana#e(ent and operation of
the F&7&J
Ac= to in%est the f)nds of the F&7&, directly or indirectly, in accordance with the pro%isions of this ActJ
Ad= to ac<)ire, )tili;e or dispose of, in any (anner reco#ni;ed by law, real or personal property in the
Philippines or elsewhere necessary to carry o)t the p)rposes of this ActJ
Ae= to cond)ct contin)in# act)arial and statistical st)dies and %al)ations to deter(ine the financial econdition
of the F&7& and takin# into consideration s)ch st)dies and %al)ations and the li(itations herein pro%ided,
re-ad4)st the benefits, contrib)tions, pre(i)( rates, interest rates or the allocation or re-allocation of the
f)nds to the contin#encies co%eredJ
Af= to ha%e the power of s)ccessionJ
A#= to s)e and be s)edJ
Ah= to enter into, (ake, perfor( and carry o)t contracts of e%ery kind and description with any person, fir( or
association or corporation, do(estic or forei#nJ
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Ai= to carry on any other lawf)l b)siness whatsoe%er in p)rs)ance of, or in connection with the pro%isions of
this ActJ
A4= to ha%e one or (ore offices in and o)tside of the Philippines, and to cond)ct its b)siness and e'ercise its
powers thro)#ho)t and in any part of the *ep)blic of the Philippines andBor in any or all forei#n co)ntries,
states and territoriesC Pro8#+"+, That the F&7& shall (aintain a branch office in e%ery pro%ince where there
e'ists a (ini()( of fifteen tho)sand A1,,>>>= (e(bershipJ
Ak= to borrow f)nds fro( any so)rce, pri%ate or #o%ern(ent, forei#n or do(estic, only as an incident in the
sec)riti;ation of ho)sin# (ort#a#es of the F&7& and on acco)nt of its recei%ables fro( any #o%ern(ent or
pri%ate entityJ
Al= to in%est, own or otherwise participate in e<)ity in any establish(ent, fir( or entityJ
A(= to appro%e appoint(ents in the F&7& e'cept appoint(ents to positions which are policy deter(inin#,
pri(arily confidential or hi#hly technical in nat)re accordin# to the Ci%il &er%ice r)les and re#)lationsC
Pro8#+"+, That all positions in the F&7& shall be #o%erned by the co(pensation and position classification
syste( and <)alifications standards appro%ed by the F&7& 0oard of Tr)stees based on a co(prehensi%e
4ob analysis and a)dit of act)al d)ties and responsibilitiesC Pro8#+"+, f,r!"r, That the co(pensation plan
shall be co(parable with the pre%ailin# co(pensation plans in the pri%ate sector and shall be s)b4ect to the
periodic re%iew by the 0oard no (ore than once e%ery fo)r A= years witho)t pre4)dice to yearly (erit
re%iews or increases based on prod)cti%ity and profitabilityJ
An= to desi#n and adopt an 5arly *etire(ent 7ncenti%es Plan A5*7P= andBor financial assistance for the
p)rpose of retire(ent for its own personnelJ
Ao= to fi' and periodically re%iew and ad4)st the rates of interest and other ter(s and conditions for loans and
credits e'tended to (e(bers or other persons, whether nat)ral or 4)ridicalJ
Ap= to enter into a#ree(ent with the &ocial &ec)rity &yste( or any other entity, enterprise, corporation or
partnership for the benefit of (e(bers transferrin# fro( one syste( to another s)b4ect to the pro%isions of
*ep)blic Act $o. 7+99, otherwise known as the Portability LawJ
A<= to be able to float proper instr)(ent to li<)efy lon#-ter( (at)rity by poolin# f)nds for short-ter(
secondary (arketJ
Ar= to s)b(it ann)ally, not later than 9)ne 6>, a p)blic report to the President of the Philippines and the
Con#ress of the Philippines re#ardin# its acti%ities in the ad(inistration and enforce(ent of this Act d)rin#
the precedin# year incl)din# infor(ation and reco((endations on board policies for the de%elop(ent and
perfection of the pro#ra(s of the F&7&J
As= to (aintain a pro%ident f)nd, which consists of contrib)tions (ade by both the F&7& and its officials and
e(ployees and their earnin#s, for the pay(ents of benefits to s)ch officials and e(ployees or their heirs
)nder s)ch ter(s and conditions as it (ay prescribeJ
At= to appro%e and adopt #)idelines affectin# in%est(ents, ins)rance co%era#e of #o%ern(ent properties,
settle(ent of clai(s, disposition of ac<)ired assets, pri%ati;ation or e'pansion of s)bsidiaries, de%elop(ent
of ho)sin# pro4ects, increased benefit and loan packa#es to (e(bers, and the enforce(ent of the pro%ision
of this ActJ
A)= any pro%ision of law to the contrary notwithstandin#, to a)thori;e the pay(ent of e'tra re()neration to
the officials and e(ployees directly in%ol%ed in the collection andBor re(ittances of contrib)tions, loan
repay(ents, and other (onies d)e to the F&7& at s)ch rates and )nder s)ch conditions as it (ay adoptC
Pro8#+"+, That the best interest of the F&7& shall be obser%ed therebyJ
A%= to deter(ine, fi' and i(pose interest )pon )npaid pre(i)(s d)e fro( e(ployers and e(ployeesJ
Aw= to ens)re the collection or reco%ery of all indebtedness, liabilities andBor acco)ntabilities, incl)din#
)npaid pre(i)(s or contrib)tions in fa%or of the F&7& arisin# fro( any ca)se or so)rce whatsoe%er, d)e
fro( obli#ors, whether p)blic or pri%ate. The 0oard shall de(and pay(ent or settle(ent of the obli#ations
referred to herein within thirty A6>= days fro( the date the obli#ation beco(es d)e, and in the e%ent of fail)re
or ref)sal of the obli#or or debtor to co(ply with the de(and, to initiate or instit)te the necessary or proper
actions or s)its, cri(inal, ci%il or ad(inistrati%e or otherwise, before the co)rts, trib)nals, co((issions,
boards, or bodies of proper 4)risdiction within thirty A6>= days reckoned fro( the e'piry date of the period
fi'ed in the de(and within which to pay or settle the acco)ntJ
A'= to desi#n and i(ple(ent pro#ra(s that will pro(ote and (obili;e sa%in#s and pro%ide additional
reso)rces for social sec)rity e'pansion and at the sa(e ti(e afford indi%id)al (e(bers appropriate ret)rns
on their sa%in#sBin%est(ents. The pro#ra(s shall be so desi#ned as to sp)r socio-econo(ic take-off and
(aintain contin)ed #rowthJ and
Ay= to e'ercise s)ch powers and perfor( s)ch other acts as (ay be necessary, )sef)l, incidental or a)'iliary
to carry o)t the pro%isions of this Act, or to attain the p)rposes and ob4ecti%es of this Act.
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M&5C. ". T!" Bo(r+ of Tr,'""'B #' Com%o'##o&B T"&,r" (&+ Com%"&'(#o&. 4 The corporate powers and f)nctions
of the F&7& shall be %ested in and e'ercised by the 0oard of Tr)stees co(posed of the President and Feneral
Mana#er of the F&7& and ei#ht AE= other (e(bers to be appointed by the President of the Philippines, one A1= of
who( shall be either the President of the Philippine P)blic &chool Teachers Association APP&TA= or the President of
the Philippine Association of &chool &)perintendents APA&&=, another two A"= shall represent the leadin#
or#ani;ations or associations of #o%ern(ent e(ployeesBretirees, another fo)r A= fro( the bankin#, finance,
in%est(ent, and ins)rance sectors, and one A1= reco#ni;ed (e(ber of the le#al profession who at the ti(e of
appoint(ent is also a (e(ber of the F&7&. The Tr)stees shall elect fro( a(on# the(sel%es a Chair(an while the
President and Feneral Mana#er of the F&7& shall a)to(atically be the %ice-chair(an.
The Tr)stees, e'cept the President and Feneral Mana#er who shall cease as tr)stee )pon his separation, shall hold
office for si' A+= years witho)t reappoint(ent, or )ntil their s)ccessors are d)ly appointed and <)alified. /acancy,
other than thro)#h the e'piration of the ter(, shall be filled for the )ne'pired ter( only. The (e(bers of the 0oard
shall be entitled to a per die( of Two tho)sand fi%e h)ndred pesos AP",,>>.>>= for each board (eetin# act)ally
attended by the(, b)t not to e'ceed Ten tho)sand pesos AP1>,>>>.>>= a (onth and reasonable transportation and
representation allowances as (ay be fi'ed by the 0oard.
M&5C. 6. Po)"r' (&+ F,&$#o&' of !" Bo(r+ of Tr,'""'. - The 0oard of Tr)stees shall ha%e the followin# powers
and f)nctionsC
MAa= to for()late the policies, #)idelines and pro#ra(s to effecti%ely carry o)t the p)rposes of this ActJ
MAb= to pro()l#ate s)ch r)les and re#)lations as (ay be necessary or proper for the effecti%e e'ercise of the
powers and f)nctions as well as the dischar#e of the d)ties and responsibilities of the F&7&, its officers and
e(ployeesJ
MAc= )pon the reco((endation of the President and Feneral Mana#er, to appro%e the ann)al and
s)pple(ental b)d#et of receipts and e'pendit)res of the F&7&, and to a)thori;e s)ch operatin# and capital
e'pendit)res and disb)rse(ents of the F&7& as (ay be necessary or proper for the effecti%e (ana#e(ent,
operation and ad(inistration of the F&7&J
MAd= )pon the reco((endation of the President and Feneral Mana#er, to appro%e the F&7& or#ani;ational
and ad(inistrati%e str)ct)re and staffin# pattern, and to establish, fi', re%iew, re%ise and ad4)st the
appropriate co(pensation packa#es for the officers and e(ployees of the F&7& and reasonable allowances,
incenti%es, bon)ses, pri%ile#es and other benefits as (ay be necessary or proper for the effecti%e
(ana#e(ent, operation and ad(inistration of the F&7&, which shall be e'e(pt fro( *ep)blic Act $o. +7,E,
otherwise known as the Attrition LawJ
MAe= to fi' and periodically re%iew and ad4)st the rates of interest and other ter(s and conditions for loans
and credits e'tended to its (e(bers or other persons, whether nat)ral or 4)ridicalJ
MAf= the pro%ision of any law to the contrary notwithstandin#, to co(pro(ise or release, in whole or in part,
any clai( or settle liability to the F&7&, re#ardless of the a(o)nt in%ol%ed, )nder s)ch ter(s and conditions
as it (ay i(pose for the best interest of the F&7&J
MA#= to appro%e and adopt #)idelines affectin# in%est(ents, ins)rance co%era#e of #o%ern(ent properties,
settle(ent of clai(s, disposition of ac<)ired assets, de%elop(ent of ho)sin# pro4ects, increased benefit and
loan packa#es to (e(bers, and the enforce(ent of the pro%isions of this ActJ
MAh= to deter(ine, fi', and i(pose interest )pon )npaid or )nre(itted pre(i)(s andBor contrib)tionsJ and
MAi= to do and perfor( any and all acts necessary, proper or incidental to the attain(ent of the p)rposes and
ob4ecti%es of this Act.
M&5C. . A%%o#&m"&, P,(*#f#$(#o&', (&+ Com%"&'(#o& of !" Pr"'#+"& (&+ G"&"r(* M(&(."r (&+ of o!"r
P"r'o&&"*. 4 The President and Feneral Mana#er of the F&7& shall be its Chief 5'ec)ti%e 1fficer and shall be
appointed by the President of the Philippines. .e shall be a person with (ana#e(ent and in%est(ents e'pertise
necessary for the effecti%e perfor(ance of his d)ties and f)nctions )nder this Act.
MThe F&7& President and Feneral Mana#er shall be assisted by one or (ore e'ec)ti%e %ice-presidents, senior %ice-
presidents and (ana#ers in addition to the )s)al s)per%isory and rank-and-file positions who shall be appointed and
re(o%ed by the President and Feneral Mana#er with the appro%al of the 0oard, in accordance with the e'istin# Ci%il
&er%ice r)les and re#)lations.
M&5C. ,. Po)"r' (&+ D,#"' of !" Pr"'#+"& (&+ G"&"r(* M(&(."r. 4 The President and Feneral Mana#er of the
F&7& shall, a(on# others, e'ec)te and ad(inister the policies and resol)tions appro%ed by the 0oard and direct and
s)per%ise the ad(inistration and operations of the F&7&. The President and Feneral Mana#er, s)b4ect to the
appro%al of the 0oard, shall appoint the personnel of the F&7&, re(o%e, s)spend or otherwise discipline the( for
ca)se, in accordance with the e'istin# Ci%il &er%ice r)les and re#)lations, and prescribe their d)ties and <)alifications
to the end that only co(petent persons (ay be e(ployed.
M&5C. +. A,+#or. 4 Aa= The Chair(an of the Co((ission on A)dit shall be the "9 off#$#o a)ditor of the F&7&, and the
necessary personnel to assist said representati%e in the perfor(ance of his d)ties.
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MAb= The Chair(an of the Co((ission on A)dit or his a)thori;ed representati%es, shall s)b(it to the 0oard soon after
the close of each calendar year, an a)dited state(ent showin# the financial condition and pro#ress of the F&7& for
the calendar year 4)st ended.
M&5C. 7. L".(* Co,&'"*. 4 The Fo%ern(ent Corporate Co)nsel shall be the le#al ad%iser and cons)ltant of the
F&7&, b)t the F&7& (ay assi#n to the 1ffice of the Fo%ern(ent Corporate Co)nsel A1FCC= cases for le#al action or
trial, iss)es for le#al opinions, preparation and re%iew of contractsBa#ree(ents and others, as the F&7& (ay decide
or deter(ine fro( ti(e to ti(eC Pro8#+"+, !o)"8"r, That the present le#al ser%ices #ro)p in the F&7& shall ser%e as
its in-ho)se le#al co)nsel.
MThe F&7& (ay, s)b4ect to appro%al by the proper co)rt, dep)ti;e any personnel of the le#al ser%ice #ro)p to act as
special sheriff in the enforce(ent of writs and processes iss)ed by the co)rt, <)asi-4)dicial a#encies or ad(inistrati%e
bodies in cases in%ol%in# the F&7&.
M&5C. E. Po)"r' of !" I&',r(&$" Comm#''#o&. 4 The 7ns)rance Co((issioner or his a)thori;ed representati%es
shall (ake an e'a(ination of financial condition and (ethods of transactin# b)siness of the F&7& at least once e%ery
three A6= years and the report of said e'a(ination shall be s)b(itted to the 0oard of Tr)stees and copies thereof be
f)rnished the 1ffice of the President of the Philippines and the two ho)ses of the Con#ress of the Philippines within
fi%e A,= days after the close of e'a(inationC Pro8#+"+, !o)"8"r, That for each e'a(ination, the F&7& shall pay the
office of the 7ns)rance Co((issioner an a(o)nt e<)al to the act)al e'penses inc)rred by the said office in the
cond)ct of e'a(ination, incl)din# the salaries of the e'a(iners and of the act)ary of s)ch e'a(ination for the act)al
ti(e spent.
TH. GENERAL PROVISION
M&5C. 9. D#'%"&'(#o& of So$#(* I&',r(&$" B"&"f#'. 4 Aa= The F&7& shall pay the retire(ent benefits to the
e(ployee on his last day of ser%ice in the #o%ern(entC Pro8#+"+, That all re<)ire(ents are s)b(itted to the F&7&
within a reasonable period prior to the effecti%e date of the retire(entJ
MAb= The F&7& shall discontin)e the processin# and ad4)dication of retire(ent clai(s )nder *.A. $o. 1+1+ e'cept
ref)nd of retire(ent pre(i)( )nder *. A. $o. 91>. 7nstead, all a#encies concerned shall process and pay the
#rat)ities of their e(ployees. The 0oard shall adopt the proper r)les and proced)res for the i(ple(entation of this
pro%ision.
M&5C. ,>. D"8"*o%m"& (&+ D#'%o'##o& of A$5,#r"+ A''"'. 4 The F&7& shall ha%e the ri#ht to de%elop and dispose
of its ac<)ired assets obtained in the ordinary co)rse of its b)siness. To add %al)e to, i(pro%e profitability on, andBor
enhance the (arketability of an ac<)ired asset, the F&7& (ay f)rther de%elopBreno%ate the sa(e either with its own
capital or thro)#h a 4oint %ent)re arran#e(ent with pri%ate co(panies or indi%id)als.
MThe F&7& (ay sell its ac<)ired assets in accordance with e'istin# Co((ission on A)dit AC1A= r)les and re#)lations
for an a(o)nt not lower than the c)rrent (arket %al)e of the property. 2or this p)rpose, the F&7& shall cond)ct an
ann)al appraisal of its property or ac<)ired assets to deter(ine its c)rrent (arket %al)e. All notices of sale shall be
p)blished in newspapers of #eneral circ)lation.
M$o in4)nction or restrainin# order iss)ed by any co)rt, co((ission, trib)nal or office shall bar, i(pede or delay the
sale and disposition by the F&7& of its ac<)ired assets e'cept on <)estions of ownership and national or p)blic
interest.
M&5C. ,1. Go8"r&m"& A''#'(&$" o !" GSIS. 4 The F&7& (ay call )pon any e(ployer for s)ch assistance as (ay
be necessary in the dischar#e of its d)ties and f)nctions.
TI. PENAL PROVISIONS
M&5C. ,". P"&(*0. 4 Aa= Any person fo)nd to ha%e participated directly or indirectly in the co((ission of fra)d,
coll)sion, falsification, or (isrepresentation in any transaction with the F&7&, whether for hi( or for so(e other
persons, shall s)ffer the penalties pro%ided for in Article 17" of the *e%ised Penal Code.
MAb= 3hoe%er shall obtain or recei%e any (oney or check in%okin# any pro%ision of this Act or any a#ree(ent
there)nder, witho)t bein# entitled thereto with the intent to defra)d any (e(ber, any e(ployer, the F&7&, or any third
party, shall be p)nished by a fine of not less than 2i%e tho)sand pesos AP,,>>>.>>= nor (ore than Twenty tho)sand
pesos AP">,>>>.>>= or by i(prison(ent of not less than si' A+= years and one A1= day to twel%e A1"= years, or both, at
the discretion of the co)rt.
MAc= 3hoe%er fails or ref)ses to co(ply with the pro%isions of this Act or with the r)les and re#)lations adopted by the
F&7&, shall be p)nished by a fine of not less than 2i%e tho)sand pesos AP,,>>>.>>= nor (ore than Twenty tho)sand
pesos AP">,>>>.>>= or i(prison(ent of not less than si' A+= years and one A1= day to twel%e A1"= years, or both, at the
discretion of the co)rt.
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MAd= The treas)rer, finance officer, cashier, disb)rsin# officer, b)d#et officer or other official or e(ployee who fails to
incl)de in the ann)al b)d#et the a(o)nt correspondin# to the e(ployer and e(ployee contrib)tions, or who fails or
ref)ses or delays by (ore than thirty A6>= days fro( the ti(e s)ch a(o)nt beco(es d)e and de(andable, or to
ded)ct the (onthly contrib)tions of the e(ployee shall, )pon con%iction by final 4)d#(ent, s)ffer the penalties of
i(prison(ent fro( si' A+= (onths and one A1= day to si' A+= years, and a fine of not less than Three tho)sand pesos
AP6,>>>.>>= b)t not (ore than &i' tho)sand pesos AP+,>>>.>>=, and in addition, shall s)ffer absol)te perpet)al
dis<)alification fro( holdin# p)blic office and fro( practicin# any profession or callin# licensed by the #o%ern(ent.
MAe= Any e(ployee or (e(ber who recei%es or keeps f)nd or property belon#in#, payable or deli%erable to the F&7&
and appropriates the sa(e, or takes or (isappropriates or )ses the sa(e for any p)rpose other than a)thori;ed by
this Act, or per(its another person to take, (isappropriate or )se said f)nd or property by e'pressly consentin#
thereto, or thro)#h abandon(ent or ne#li#ence, or is otherwise #)ilty of the (isappropriation of said f)nd or property,
in whole or in part, shall s)ffer the penalties pro%ided in Article "17 of the *e%ised Penal Code, and in addition, shall
s)ffer absol)te perpet)al dis<)alification fro( holdin# p)blic office and fro( practicin# any profession or callin#
licensed by the #o%ern(ent.
MAf= Any e(ployee who, after ded)ctin# the (onthly contrib)tion or loan a(orti;ation fro( a (e(ber8s co(pensation,
fails to re(it the sa(e to the F&7& within thirty A6>= days fro( the date they sho)ld ha%e been re(itted )nder &ection
+Aa=, shall be pres)(ed to ha%e (isappropriated s)ch contrib)tion or loan a(orti;ation and shall s)ffer the penalties
pro%ided in Article 61, of the *e%ised Penal Code, and in addition, shall s)ffer absol)te perpet)al dis<)alification
fro( holdin# p)blic office and fro( practicin# any profession or callin# licensed by the #o%ern(ent.
MA#= The heads of the offices of the national #o%ern(ent, its political s)bdi%isions, branches, a#encies and
instr)(entalities, incl)din# #o%ern(ent-owned or controlled corporations and #o%ern(ent financial instit)tions, and
the personnel of s)ch offices who are in%ol%ed in the collection of pre(i)( contrib)tions, loan a(orti;ation and other
acco)nts d)e the F&7& who shall fail, ref)se or delay the pay(ent, t)rno%er, re(ittance or deli%ery of s)ch acco)nts
to the F&7& within thirty A6>= days fro( the ti(e that the sa(e shall ha%e been d)e and de(andable shall, )pon
con%iction by final 4)d#(ent, s)ffer the penalties of i(prison(ent of not less than one A1= year nor (ore than fi%e A,=
years and a fine of not less than Ten tho)sand pesos AP1>,>>>.>>= nor (ore than Twenty tho)sand pesos
AP">,>>>.>>=, and in addition, shall s)ffer absol)te perpet)al dis<)alification fro( holdin# p)blic office and fro(
practicin# any profession or callin# licensed by the #o%ern(ent.
MAh= The officers andBor personnel referred to in para#raph A#= of this section shall be liable not only cri(inally b)t also
ci%illy to the F&7& or to the e(ployee or (e(ber concerned in the for( of da(a#es, incl)din# s)rchar#es and
interests.
MAi= 2or the char#es or co(plaints referred to in para#raph A#= of this section, the liabilities therein set forth shall be
constr)ed as wai%er of the &tate of its i(()nity fro( s)it, hence, the abo%e-(entioned officials andBor personnel (ay
not in%oke the defense of non-s)ability of the &tate.
MA4= 2ail)re of the Me(bers of the F&7& 0oard, incl)din# the chair(an and the %ice-chair(an, to co(ply with the
pro%isions of para#raph Aw= of &ection 1 hereof, shall s)b4ect the( to i(prison(ent of not less than si' A+= (onths
nor (ore than one A1= year or a fine of not less than 2i%e tho)sand pesos AP,,>>>.>>= nor (ore than Ten tho)sand
pesos AP1>,>>>.>>= witho)t pre4)dice to any ci%il or ad(inistrati%e liability which (ay also arise therefro(.
MAk= Cri(inal actions arisin# fro( %iolations of the pro%isions of this Act (ay be co((enced by the F&7& or by the
a##rie%ed (e(ber, either )nder this Act or, in appropriate cases, )nder the *e%ised Penal Code.
M&5C. ,6. Im%*"m"&#&. R,*"' (&+ R".,*(#o&'. 4 The i(ple(entin# r)les and re#)lations to carry o)t the pro%isions
of this Act shall be adopted and pro()l#ated by the F&7& not later than ninety A9>= days after the appro%al of this Act.
M&5C. ,. No&4#m%(#rm"& of B"&"f#', Po)"r', J,r#'+#$#o&, R#.!', Pr#8#*"."', F,&$#o&' (&+ A$#8##"'. 4 $othin# in
this Act shall be constr)ed to repeal, a(end or li(it any pro%ision of e'istin# laws, Presidential Decrees and Letters
of 7nstr)ctions, not otherwise specifically inconsistent with the pro%isions of this Act.
M&5C. ,,. E9$*,'#8"&"'' of B"&"f#'. 4 3hene%er other laws pro%ide si(ilar benefits for the sa(e contin#encies
co%ered by this Act, the (e(ber who <)alifies to the benefits shall ha%e the option to choose which benefits will be
paid to hi(. .owe%er, if the benefits pro%ided by the law chosen are less than the benefits pro%ided )nder this Act,
the F&7& shall pay only the difference.
M&5C. ,+. A%%ro%r#(#o&'. 4 The a(o)nt necessary to carry o)t the pro%isions of this Act shall be incl)ded in the
respecti%e b)d#ets of the a#encies in the national #o%ern(ent obli#ation pro#ra( of the year followin# its enact(ent
into law and thereafter.M
SEC. :. S"%(r(1#*#0 C*(,'". 4 &ho)ld any pro%ision of this Act or any part thereof be declared in%alid, the other
pro%isions, so far as they are separable fro( the in%alid ones, shall re(ain in force and effect.
SEC. ;. R"%"(*#&. C*(,'". 4 All laws and any other law or parts of law specifically inconsistent herewith are hereby
repealed or (odified accordin#lyC Pro8#+"+, That the ri#hts )nder the e'istin# laws, r)les and re#)lations %ested )pon
or ac<)ired by an e(ployee who is already in the ser%ice as of the effecti%ity of this Act shall re(ain in force and
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effectC Pro8#+"+, f,r!"r, That s)bse<)ent to the effecti%ity of this Act, a new e(ployee or an e(ployee who has
pre%io)sly retired or separated and is ree(ployed in the ser%ice shall be co%ered by the pro%isions of this Act.
SEC. 3. Eff"$#8#0. 4 This Act shall take effect fifteen A1,= days after its p)blication in the 1fficial Fa;ette or in at least
two A"= newspapers of #eneral circ)lation.
This Act, which is a consolidation of &enate 0ill $o. ">16 and .o)se 0ill $o. E,+1, was finally passed by the &enate
and the .o)se of *epresentati%es on May "9, 1997 and May "E, 1997, respecti%ely.
-$ational .ealth 7ns)rance Act of 199, A*A 7E7,= APlease see f)ll te't )nder Topic A7= =
Page 267 of 267

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