1

REPUBLICACTNO.9481
ANACTSTRENGTHENINGTHEWORKERS

CONSTITUTIONALRIGHTTOSELFORGANIZATION,

AMENDINGFORTHEPURPOSEPRESIDENTIALDECREE

NO.442,ASAMENDED,OTHERWISEKNOWNASTHE
LABORCODEOFTHEPHILIPPINES

Be it enacted by the Senate and the House of

RepresentativesofthePhilippinesinCongressassembled:
Section1.Article234ofPresidentialDecreeNo.442,as
amended, otherwise known as the Labor Code of the
Philippines,isherebyfurtheramendedtoreadasfollows:
"ART.234.RequirementsofRegistration.Afederation,
national union or industry or trade union center or an
independentunionshallacquirelegalpersonalityandshall
beentitledtotherightsandprivilegesgrantedbylawto
legitimate labor organizations upon issuance of the
certificate of registration based on the following
requirements:
(a)Fiftypesos(P50.00)registrationfee;
(b)Thenamesofitsofficers,theiraddresses,the
principal address of the labor organization, the
minutes of the organizational meetings and the
list of the workers who participated in such
meetings;
(c)Incasetheapplicantisanindependentunion,
thenamesofallitsmemberscomprisingatleast
twentypercent(20%)ofalltheemployeesinthe
bargainingunitwhereitseekstooperate;
(d)Iftheapplicantunionhasbeeninexistence
for one or more years, copies of its annual
financialreports;and
(e)Fourcopiesoftheconstitutionandbylawsof
the applicant union, minutes of its adoption or
ratification, and the list of the members who
participatedinit."
Sec.2.AnewprovisionisherebyinsertedintotheLabor
CodeasArticle234Atoreadasfollows:
"ART. 234A.Chartering and Creation of a Local
Chapter.Adulyregisteredfederationornationalunion
may directly create a local chapter by issuing a charter
certificateindicatingtheestablishmentofthelocalchapter.
The chapter shall acquire legal personality only for
purposesoffilingapetitionforcertificationelectionfrom
thedateitwasissuedachartercertificate.

The chapter shall be entitled to all other rights and

privilegesofalegitimatelabororganizationonlyuponthe
submissionofthefollowingdocumentsinadditiontoits
chartercertificate:
(a) The names of the chapter's officers, their
addresses,andtheprincipalofficeofthechapter;
and
(b) The chapter's constitution and by
laws:Provided, That where the chapter's
constitutionandbylawsarethesameasthatof
thefederationorthenationalunion,thisfactshall
beindicatedaccordingly.
The additional supporting requirements shall be certified
underoathbythesecretaryortreasurerofthechapterand
attestedbyitspresident."
Sec.3.Article238oftheLaborCodeisherebyamendedto
readasfollows:
"ART.238.CancellationofRegistration.Thecertificate
ofregistrationofanylegitimatelabororganization,whether
nationalorlocal,maybecancelledbytheBureau,afterdue
hearing, only on the grounds specified in Article 239
hereof."
Sec.4.AnewprovisionisherebyinsertedintotheLabor
CodeasArticle238Atoreadasfollows:
"ART. 238A.Effect of a Petition for Cancellation of
Registration. A petition for cancellation of union
registration shall not suspend the proceedings for
certification election nor shall it prevent the filing of a
petitionforcertificationelection.
In case of cancellation, nothing herein shall restrict the
rightoftheuniontoseekjustandequitableremediesinthe
appropriatecourts."
Sec.5.Article239oftheLaborCodeisamendedtoreadas
follows:
"ART. 239.Grounds for Cancellation of Union
Registration.Thefollowingmayconstitutegroundsfor
cancellationofunionregistration:
(a)Misrepresentation,falsestatementorfraudin
connectionwiththeadoptionorratificationofthe
constitutionandbylawsoramendmentsthereto,
the minutes of ratification, and the list of
memberswhotookpartintheratification;

(b)Misrepresentation,falsestatementsorfraudin
connectionwiththeelectionofofficers,minutes
oftheelectionofofficers,andthelistofvoters;
(c)Voluntarydissolutionbythemembers."
Sec.6.Anewprovision,Article239Aisinsertedintothe
LaborCodetoreadasfollows:
"ART. 239A.Voluntary Cancellation of Registration.
Theregistrationofalegitimatelabororganizationmaybe
cancelledbytheorganizationitself.Provided,Thatatleast
twothirdsofitsgeneralmembershipvotes,inameeting
duly called for that purpose to dissolve the
organization:Provided, further, That an application to
cancelregistrationisthereaftersubmittedbytheboardof
theorganization,attestedtobythepresidentthereof."
Sec.7.Anewprovision,Article242Aisherebyinserted
intotheLaborCodetoreadasfollows:
"ART.242A.ReportorialRequirements.Thefollowing
aredocumentsrequiredtobesubmittedtotheBureauby
thelegitimatelabororganizationconcerned:
(a)Itsconstitutionandbylaws,oramendments
thereto,theminutesofratification,andthelistof
memberswhotookpartintheratificationofthe
constitutionandbylawswithinthirty(30)days
fromadoptionorratificationoftheconstitution
andbylamoramendmentsthereto;
(b)Itslistofofficers,minutesoftheelectionof
officers,andlistofvoterswithinthirty(30)days
fromelection;
(c)Itsannualfinancialreportwithinthirty(30)
daysafterthecloseofeveryfiscalyear;and
(d) Its list of members at least once a year or
wheneverrequiredbytheBureau.
Failuretocomplywiththeaboverequirementsshallnotbe
a ground for cancellation of union registration but shall
subject the erring officers or members to suspension,
expulsionfrommembership,oranyappropriatepenalty."
Sec.8.Article245oftheLaborCodeisherebyamendedto
readasfollows:
"ART.245.IneligibilityofManagerialEmployeestoJoin
anyLaborOrganization;RightofSupervisoryEmployees.
Managerial employees are not eligible to join, assist or
formanylabororganization.Supervisoryemployeesshall
notbeeligibleformembershipinthecollectivebargaining

unitoftherankandfileemployeesbutmayjoin,assistor
formseparatecollectivebargainingunitsand/orlegitimate
labororganizationsoftheirown.Therankandfileunion
and the supervisors' union operating within the same
establishment may join the same federation or national
union."
Sec.9.Anewprovision,Article245Aisinsertedintothe
LaborCodetoreadasfollows:
"ART. 245A.Effect of Inclusion as Members of
EmployeesOutsidetheBargainingUnit.Theinclusionas
unionmembersofemployeesoutsidethebargainingunit
shallnotbeagroundforthecancellationoftheregistration
of the union. Said employees are automatically deemed
removedfromthelistofmembershipofsaidunion."
Sec.10.Article256oftheLaborCodeisherebyamended
toreadasfollows:
"ART. 256.Representation Issue in Organized
Establishments. In organized establishments, when a
verified petition questioning the majority status of the
incumbentbargainingagentisfiledbyanylegitimatelabor
organizationincludinganationalunionorfederationwhich
hasalreadyissuedachartercertificatetoitslocalchapter
participatinginthecertificationelectionoralocalchapter
whichhasbeenissuedachartercertificatebythenational
union or federation before the Department of Labor and
Employment within the sixty (60)day period before the
expirationofthecollectivebargainingagreement,theMed
Arbiter shall automatically order an election by secret
ballotwhentheverifiedpetitionissupportedbythewritten
consent of at least twentyfive percent (25%) of all the
employeesinthebargainingunittoascertainthewillofthe
employees in the appropriate bargaining unit. To have a
validelection,atleastamajorityofalleligiblevotersinthe
unitmusthavecasttheirvotes.Thelaborunionreceiving
themajorityofthevalidvotescastshallbecertifiedasthe
exclusivebargainingagentofalltheworkersintheunit.
Whenanelectionwhichprovidesforthreeormorechoices
resultsinnochoicereceivingamajorityofthevalidvotes
cast, a runoff election shall be conducted between the
labor unions receiving the two highest number of
votes:Provided, That the total number of votes for all
contending unions is at least fifty percent (50%) of the
numberofvotescast.Incaseswherethepetitionwasfiled
byanationalunionorfederation,itshallnotberequiredto
disclose the names of the local chapter's officers and
members.
Attheexpirationofthefreedomperiod,theemployershall
continuetorecognizethemajoritystatusoftheincumbent
bargainingagentwherenopetitionforcertificationelection
isfiled."

Sec.11.Article257oftheLaborCodeisherebyamended
toreadasfollows:
"ART.257.PetitionsinUnorganizedEstablishments.In
any establishment where there is no certified bargaining
agent, a certification election shall automatically be
conductedbytheMedArbiteruponthefilingofapetition
byanylegitimatelabororganization,includinganational
union or federation which has already issued a charter
certificate to its 1ocal/chapter participating in the
certification election or a local/chapter which has been
issued a charter certificate by the national union or
federation. In cases where the petition was filed by a
national union or federation, it shall not be required to
disclose the names of the local chapter's officers and
members."
Sec.12.Anewprovision,Article258Aisherebyinserted
intotheLaborCodetoreadasfollows:
"ART. 258A.Employer as Bystander. In all cases,
whetherthepetitionforcertificationelectionisfiledbyan
employeroralegitimatelabororganization,theemployer
shallnotbeconsideredapartytheretowithaconcomitant

right to oppose a petition for certification election. The

employer's participation in such proceedings shall be
limitedto:(1)beingnotifiedorinformedofpetitionsof
suchnature;and(2)submittingthelistofemployeesduring
the preelection conference should the MedArbiter act
favorablyonthepetition."
Sec. 13.Separability Clause. If any part, section or
provision of this Act shall be held invalid or
unconstitutional,theotherprovisionsshallnotbeaffected
thereby.
Sec.14.RepealingClause.PresidentialDecreeNo.442,
as amended, otherwise known as the Labor Code of the
Philippines,andallotheracts,laws,presidentialissuances,
rules and regulations are hereby repealed, modified or
amendedaccordingly.
Sec. 15.Effectivity Clause. This Act shall take effect
fifteen(15)daysafteritspublicationintheOfficialGazette
orinatleasttwonewspapersofgeneralcirculation.