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Article 243.

Coverage and employees’ right to self- controversy or in the exercise of the right to self-
organization. All persons employed in commercial, organization or collective bargaining, or shall aid or
industrial and agricultural enterprises and in religious, abet such obstruction or interference.
charitable, medical, or educational institutions, whether
operating for profit or not, shall have the right to self-
organization and to form, join, or assist labor
No employer shall use or employ any strike-breaker,
organizations of their own choosing for purposes of
nor shall any person be employed as a strike-breaker.
collective bargaining. Ambulant, intermittent and
itinerant workers, self-employed people, rural workers
and those without any definite employers may form
labor organizations for their mutual aid and protection. No public official or employee, including officers and
personnel of the New Armed Forces of the Philippines
Notes: or the Integrated National Police, or armed person,
shall bring in, introduce or escort in any manner, any
1. Rights to self-organization includes:
individual who seeks to replace strikers in entering or
- Right to form, join or assist labor
leaving the premises of a strike area, or work in place
of the strikers. The police force shall keep out of the
- For the purpose of collective bargaining
picket lines unless actual violence or other criminal acts
- Through representatives of their own
occur therein: Provided, That nothing herein shall be
interpreted to prevent any public officer from taking any
- And to engage in lawful concerted activities
measure necessary to maintain peace and order,
for the same for the same purpose
protect life and property, and/or enforce the law and
- Or for their mutual aid and protection, subject
legal order. (As amended by Executive Order No. 111,
to the provisions of Art. 264 (now 279)
December 24, 1986)

No person engaged in picketing shall commit any act

Article 264. Prohibited activities. of violence, coercion or intimidation or obstruct the free
ingress to or egress from the employer’s premises for
No labor organization or employer shall declare a strike lawful purposes, or obstruct public thoroughfares. (As
or lockout without first having bargained collectively in amended by Batas Pambansa Bilang 227, June 1,
accordance with Title VII of this Book or without first 1982).
having filed the notice required in the preceding Article
or without the necessary strike or lockout vote first 2. Scope of right to self-organization;
having been obtained and reported to the Ministry. employer-employee relationship, not
mandatory in workers’ association
No strike or lockout shall be declared after assumption
of jurisdiction by the President or the Minister or after The right to form a union or association or to self-
certification or submission of the dispute to compulsory organization comprehends two (2) broad notions:
or voluntary arbitration or during the pendency of cases
a. Liberty or freedom (the absence of restraint
involving the same grounds for the strike or lockout.
which guarantees that the employee may act
Any worker whose employment has been terminated for himself without being prevented by law.
as a consequence of any unlawful lockout shall be b. The power, by virtue of which an employee
entitled to reinstatement with full backwages. Any may, as he pleases join or refrain from joining
union officer who knowingly participates in an illegal an association.
strike and any worker or union officer who knowingly
The right to join, affiliate with, or assist any union, and
participates in the commission of illegal acts during a
to maintain membership therein, includes the right not
strike may be declared to have lost his employment
to join, affiliate with, or assist any union, and to
status: Provided, That mere participation of a worker in
disaffiliate or resign from a labor organization.
a lawful strike shall not constitute sufficient ground for
termination of his employment, even if a replacement -right to self-organization connotes unionism.
had been hired by the employer during such lawful
strike. -Workers can also form and join a worker’s association
as well as labor-management council (LMC).

Common element between unionism and formation of

No person shall obstruct, impede, or interfere with, by LMC:
force, violence, coercion, threats or intimidation, any
peaceful picketing by employees during any labor
- Existence of an employer-employee A labor organization enjoys a certain degree of
relationship. autonomy or freedom from government interference.
- Otherwise, no duty to bargain collectively.
Such workers must be employed in the establishment
before they can participate in policy and decision- When there is an inter-union or intra-union conflict,
making processes. (Art. 261) labor officials should not hesitate to enforce strictly the
law and regulations governing trade unions
In contrast, the existence of employer-employee
relationship is not mandatory in the formation of - Even if that course of action would curtail the
workers’ association. so-called union autonomy and freedom from
government interference.
- The law requires: members of workers’
association share the same interest.
- The very definition of workers’ association
4. Coverage and employees’ right to self-
speaks of mutual aid and protection.
Inherent in the right to self-organization is the right to a. All persons employed in commercial,
choose whether to form a union for purposes of industrial and agricultural enterprises and in
collective bargaining or a workers’ association for religious, charitable, medical or educational
purposes of providing mutual aid and protection. institutions, whether operating for profit or not.
Art. 253 (243)
Article 250 (261). Procedure in collective bargaining. b. Ambulant, intermittent, and itinerant workers,
The following procedures shall be observed in self-employed people, rural workers and
collective bargaining: those without any definite employers may
form labor organizations for their mutual aid
When a party desires to negotiate an agreement, it and protection (Art. 253 (243)), not for
shall serve a written notice upon the other party with a purposes of collective bargaining.
statement of its proposals. The other party shall make c. Supervisory employees (First-line managers)
a reply thereto not later than ten (10) calendar days have been defined as those who, in the
from receipt of such notice; interest of the employer, effectively
recommend such managerial actions of the
Should differences arise on the basis of such notice
exercise of such authority is not merely
and reply, either party may request for a conference
routinary or clerical in nature but requires the
which shall begin not later than ten (10) calendar days
use of independent judgment (Art. 219 (m)
from the date of request.
212 (m).
If the dispute is not settled, the Board shall intervene
upon request of either or both parties or at its own Supervisory employee shall not be eligible for
initiative and immediately call the parties to conciliation membership in the collective bargaining unit
meetings. The Board shall have the power to issue and the rank-and-file employees but may join,
subpoenas requiring the attendance of the parties to assist or form separate collective bargaining
such meetings. It shall be the duty of the parties to unit and/or labor organization of their own.
participate fully and promptly in the conciliation
meetings the Board may call; d. Security guards.

During the conciliation proceedings in the Board, the Second sentence of Art. 255 of the Labor Code
parties are prohibited from doing any act which may embodies an amendment disqualifying supervisory
disrupt or impede the early settlement of the disputes; employees from membership in a labor organization of
and the rank-and-file employees, but it does not include
security guards in the disqualification.
The Board shall exert all efforts to settle disputes
amicably and encourage the parties to submit their Under the old rules, security guards were barred from
case to a voluntary arbitrator. joining a labor organization of the rank-and-file, under
the present law, they may now freely join a labor
3. Principle of union autonomy (freedom organization of the rank-and-file organization, are null
from government interference) and void for not being germane to the object and
General rule:
e. Employees under Art. 219 (f) 212 (f) of the
Labor Code, it shall include any individual
whose work has ceased as a result of or in k. Alien employees with valid working permits
connection with any current labor dispute or issues by the Department of Labor and
because of any unfair labor practice if he has Employment may exercise the right to self-
not obtained any other substantially organization and join or assist labor unions for
equivalent and regular employment. purposes of collective bargaining if they are
nationals of a country which grants the same
Art. 292 (c ) 277 (c ) provides that “Any employee, or similar rights to Filipino Workers, as
whether employed for a definite period or not, shall, certified by the Department of Foreign Affairs,
beginning on his first day of service, be considered as or which has ratified ILO Convention No. 87
an employee for purposes of membership in any labor and ILO Convention No. 98.
union. This refers also to rank-and-file employees
whose functions are neither managerial nor l. The working children have also the right to
supervisory in nature. join the collective bargaining union of their
own choosing in accordance with the existing
f. Employee – non-member of a cooperative
While employees who are at the same time members
of a cooperative cannot join labor unions for purposes Under P.D. 603, it is provided that neither the
of collective bargaining, they are not, however, management nor any collective bargaining
prohibited from withdrawing their membership in the union shall threaten or coerce working
cooperative in order to join a labor union. children to join, continue or withdraw as
member of such union.
Public policy provides that the right to self-organization
be accorded the highest consideration, employee non-
members can join a labor union.
m. Confidential employees who assist and act in
g. The homeworkers have the right to form, join, a confidential capacity or have access to
or assist organizations of their own choosing confidential matters, of persons who exercise
in accordance with law. The registration of managerial function in the field of labor
homeworkers’ organizations or associations relations are disqualified to form or join a
that complied with the requirements of law, union.
will vest legal personality thereto.
However, if the access to confidential labor relations
information is merely incidental in the performance of
h. Employees of a legitimate independent
their functions, they do not have to be treated as
contractor or subcontractor are entitled to all
confidential employees; thus, they are eligible and
the rights or privileges due a regular
have the right to form or join a union.
employee under the Labor Code which
includes the right to self-organization, Another instance is when the confidential employee
collective bargaining and peaceful concerted does not have access or is not allowed to access to
action. confidential labor relations information, there is no legal
prohibition against them from forming, assisting, or
i. The right of members of the Iglesia ni Kristo joining a union.
sect not to join a labor union for being contrary
to their religious beliefs does not bar the 5. Excluded from the coverage and
members of that sect from forming their own employees’ right to self-organization
union for the recognition of the tenets of the
sect should not infringe on the basic right to The following are excluded from exercising the right to
self-organization granted by the Constitution self-organization:
to workers regardless of religious affiliation.
a. An employee of a cooperative who is a
member and co-owner thereof cannot invoke
j. Rights to employees in the public service.
the right to collective bargaining for certainly,
Employees of government corporations
an owner cannot bargain with himself or is co-
established under the Corporation Code shall
have the right to organize and to bargain
collectively with their respective employers. However, insofar as it involves cooperatives with
All other employees in the civil service shall employees who are not members or co-owners thereof,
have the right to form associations for certainly such employees are entitled to exercise the
purposes not contrary to law. (Art. 254 (244)) rights of all workers to organization, collective
bargaining, negotiations and others as are enshrined in Article 244 (254). Right of employees in the public
the Constitution and existing laws of the country. service. Employees of government corporations
established under the Corporation Code shall have the
b. Confidential employees (such a division right to organize and to bargain collectively with their
secretaries, staff general management, staff respective employers. All other employees in the civil
of personnel department, secretaries of audit, service shall have the right to form associations for
EDP, financial systems) are ineligible to form, purposes not contrary to law.
assist, or join a labor union because by the
nature of their functions, they assist and act in 1. State policy on the right to self-
a confidential capacity to, or have access to organization in the public (government)
confidential matters, of persons who exercise sector
managerial functions in the field of labor
relations, and the union might not be assured it is the policy of the State to:
of their loyalty in view of evident conflict of
1. Promote the free and responsible exercise of
the right to organize by
By the nature of their function, legal secretaries shall - All employees in national gov’t agencies and
fall under the category of confidential employees. their regional offices
- Attached agencies and their regional offices
Confidential employees performing managerial - State universities and colleges
functions cannot join unions. They are disqualified by - GOCCS with original charters
applying the doctrine of necessary implication. - LGUs
2. Through a simplified mechanism for
c. Managerial employees refer to an employee - the speedy registration or employees
who is vested wit powers or prerogatives to organizations
lay down and execute management policies - determination of representation status
or to hire, transfer, suspend, layoff, recall, - resolutions of intra and inter-employees’
discharge, assign, or discipline employees. organization disputes.
3. Only accredited employees’ organizations
shall have the right to represent the rank-and-
d. An alien employee cannot exercise his right to file employees in collective negotiation and for
self-organization, if the following requisites the furtherance and protection of their interest
are not complied with: and improvement of public service delivery.

1. Valid working permit issued by DOLE

2. He is a national of a country which grants the 2. Right to self-organization in the public
same or similar rights to Filipino workers. sector

The civil service embraces all branches, subdivisions,

instrumentalities and agencies of the Government,
e. Managerial and confidential employees in the
including GOCCs w/ original charters.
private sector are not allowed to form, join, or
assist labor organization. Thus, employees in GOCCs w/ original charters are
employees in the public service to be governed by the
However, in the public sector, the ff. are not eligible to
civil service laws; while employees in GOCCs w/o
form employees’ org:
original charters or those formed under the Corporation
1. High-level employees whose functions are Code are governed by the Labor Code.
normally considered as policy-making or
The former is a chartered corporation; while the latter
managerial or whose duties are of a high
is otherwise known as subsidiary or corporate
confidential nature;
2. Members of the armed forces of the
Philippines; Employees of chartered corporations cannot
3. Police officers collectively bargain. However, they are granted under
4. Policemen the Constitution the right to collective negotiations.
5. Firemen
6. Jail guards 3. Those eligible to join employees’
organizations in the public sector for
purposes of collective negotiations.
-Employees in agencies of the national gov’t and their compensation structure; imposition of
offices disciplinary penalties; selection of personnel
to attend seminars; trainings, study grants;
- attached agencies and their regional offices distribution of work load; and external
communication linkages.
- State universities and colleges

- GOCCS with original charters

7. FTI is a government-owned or controlled
corporation without original charter
Except as may be hereinafter provided, can form, join (government subsidiary)
or assist employees’ organizations, labor-management
it is DOLE and not CSC which has jurisdiction over the
committees, work councils and other forms of
dispute arising from employment of the petitioners with
employees’ participation schemes of their own
private respondent FTI.
choosing for the purposes above-stated.
The terms and conditions of such employment are
4. Those not eligible to join employees’
organizations in the public sector governed by the Labor Code and not by Civil Service
Rules and Regulations.
Eligibility for membership in any employees’
8. Conduct of certification election at NHC
organization shall commence on the first day of the
employees’ service. National Housing Corporation (NHC) is covered by the
Labor Code, being a GOCC without an original charter.
The following shall not be eligible to form, join or assist
any employees’ organization: 9. National Parks Committee, a government
1. High-level employees whose functions are
normally considered as policy-making or Its employees are covered by Civil Service Rules and
managerial or whose duties are of a high Regulations; its employees are civil service
confidential nature; employees.
2. Members of the armed forces of the
Philippines; While they are allowed under the Constitution to
3. Police officers organize and join unions of their choice, there is as yet
4. Policemen no law permitting them to strike.
5. Firemen
6. Jail guards In case of a labor dispute between the employees and
the government, Sec. 15 of E.O. 180 date 1 June 1987
provides that the Public Sector-Labor Management
Council, not DOLE, shall hear the dispute.
5. Matters proper for collective negotiations
(p. 197)yy 10. PNOC-EDC created under the corporation
6. Matters not proper for collective
bargaining. The test in determining whether a GOCC is subject to
the civil service law is the manner of its creation –
GOCC created by special charters are subject to its
provisions; those created under the general
a. Terms and conditions of employment that are corporation law are not within its coverage.
fixed by law;
b. Matters that require appropriation of funds PNOC-EDC having been incorporated under the
such as increase in salary emoluments and general corporation law, is subject to the provisions of
allowances; facilities requiring capital outlays; the Labor Code.
car plan; provident fund; special
hospitalization, medical and dental services; 11. Government employees may not strike
rice, sugar and other subsidies; travel
Government employees, may, therefore, through their
expenses and increase in retirement benefits.
union or associations, either petition the Congress for
c. Matters that involve exercise of management
the betterment of the terms and conditions of
prerogatives such as appointment; promotion;
employment which are within the ambit of legislation or
assignment or detail; reclassification or
negotiate with the appropriate government agencies
upgrading of position; revision of
for the improvement of those which are not fixed by 2. Concept of supervisory employee
Supervisory employee is one who, in the interest of
If there be any unresolved grievances, the dispute may employer, effectively recommends managerial actions
be referred to the Public Sector-Labor Management if the exercise of such authority is not merely routinary
Council for appropriate action. or clerical in nature but requires the use of independent
But employees in the civil service may not resort to
strikes, walkouts and other temporary work stoppages, All employees not falling within the definitions of
like workers in the private sector, to pressure the managerial or supervisory employee are considered
Government to accede to their demands. rank-and-file employees.

As now provide under Sec. 4, Rule III of the Rules and 3. Types of managerial employees;
Regulations to Govern the Exercise of the Right of designation reconciled with actual job
Government Employees to Self-Organization, which description; exercise of independent
took effect after the instant dispute arose: judgment

“the terms and conditions of employment in the The following are three (3) type of managerial
government, including any political subdivision or employees;
instrumentality thereof and government-owned and
controlled corporation with original charters are a. Top managers
governed by law and employees therein shall not strike - Have the authority to device, implement and
for the purpose of securing changes thereof. control strategic and operational policies of
the company.
12. Employees of international organizations - The president, CEO
may join a union but not for the purposes
of collective bargaining. b. Middle managers
- Responsibility is to see to it that the operating
The Philippines Government has granted them policies are put into action by other managers
immunity from local jurisdiction. under him.
c. First-line managers
There is no legal prohibition for such employees to join
- Lowest in the rank where task is simply to
a union but not for purposes of collective bargaining for
ensure that such policies are carried out by
this may cause an international organization to be
the rank-and-file employees of an
involved in a legal process which is the evil sought to
be prevented by the grant of immunity.
Managerial employees may fall into (2) distinct
13. Certification election barred by the grant
of functional immunity (p.200)
a. The managers per se composed of top and
Article 245. Ineligibility of managerial employees to join
middle managers
any labor organization; right of supervisory employees.
b. The supervisors composed of first-line
Managerial employees are not eligible to join, assist or
form any labor organization. Supervisory employees
shall not be eligible for membership in a labor Designation should be reconciled with the actual job
organization of the rank-and-file employees but may description of the employee for it is the job description
join, assist or form separate labor organizations of their that determines the nature of the employment.
own. The rank-and-file union and the supervisors’
union operating with the same establishment may join Although subject section heads and unit managers
the same federation or national unions. exercise the authority to hire and fire, the authority they
exercise is merely advisory in character. There is not a
1. Concept of managerial employee final determination of the company policies inasmuch
as any action taken by them on matters relative to
A managerial employee is one who is vested with
hiring, promotion, transfer, suspension and termination
powers or prerogatives to lay down and execute
of employees is still subject to confirmation and
management policies and/or to hire, transfer, suspend,
approval by their respective superior.
lay-off, recall, discharge, assign or discipline
employees. Where such power, recommendatory in character, is
subject to evaluation, review and final action by the
Managerial employees are limited to those having the
department heads and other executives of the
authority to hire and fire.
company, the same, although present, is not effective implication, confidential employees are similarly
and not an exercise of independent judgment as disqualified.
required by law.
This doctrine states that what is implied in a statute is
4. Confidential employee rule as much a part thereof as that which is expressed.

Those who: Managerial employees are supposed to be on the side

of the employer to act as the representatives and to see
1. Assist or act in a confidential capacity to it that its interests are well-protected.
2. To persons or officers who formulate,
determine and effectuate management The employer is not assured of such protection if
policies in the field of labor relations. managerial employees themselves are union
members. Collective bargaining in such a situation can
The two (2) criteria are cumulative and both must be become one-sided. It is the same reason why the
met if an employee is to be considered a confidential position of confidential employees is included in the
employee, that is: disqualification found in Art. 255 as if such
disqualification was written in the provision.
1. The confidential relationship must exist
between the employee and his supervisor If confidential employees could unionize in order to
2. The supervisor must handle the prescribed bargain for advantages for themselves, then they could
responsibilities relating to labor relations. be governed by their own motives rather than the
interest of the employer.
5. Confidential employee may be rank-and-
file or supervisory 8. Test of managerial status

A confidential employee may be rank-and-file or It is the nature of an employees’ functions and not the
supervisory employee but because in the normal nomenclature or title given to his job which determines
course of his duties, he becomes aware of whether an employee is managerial or not. Among the
management policies relating to labor relations, he is characteristics of managerial rank are:
not allowed to assist, form or join a rank-and-file
employee or supervisory union. a. He is not subject to the rigid observance of
regular office hours;
His exclusion from the bargaining unit is justified under b. His work requires the consistent exercise of
the “confidential employee rule.” independent judgment and discretion in its
6. Not a confidential employee; access to c. The output produced or the result
confidential labor relations information; accomplished cannot be standardized in
merely incidental relation to a given period of time.
d. He manages a customarily recognized
If the access to confidential labor relations information
department or subdivision of the
is merely incidental in the performance of their
establishment; customarily and regularly
functions, they do not have to be treated as confidential
directing the work of other employees therein.
employees; thus they are eligible and have the right to
e. He either has the authority to hire or discharge
form or join a union.
other employees or his suggestions and
Therefore, access to information which is regarded by recommendations as to hiring and
the employer to be confidential from the business discharging, advancement and promotion or
standpoint, such as financial information or technical other change of status of other employees are
trade secrets, will not render an employee a given particular weight.
confidential employee. f. As a rule, he is not paid hourly wages nor
subjected to maximum hours of work.
7. Doctrine of necessary implication
In order that the power to recommend may qualify an
Doctrine of necessary implication is the legal employee as a managerial employee, it must not only
justification of confidential employee’s exclusion from be effective but the exercise of such authority should
exercising his right to self-organization. not be merely of a routinary or clerical nature but
should require the use of independent judgment.
While Art. 266 of the Labor Code singles out
managerial employees as ineligible to join, assist or The test of supervisory or managerial status depends
form any labor organization under the necessary on whether a person possesses the authority to act in
the interest of his employer and whether such authority
is not merely routinary or clerical in nature, but requires The separation of union doctrine prohibits a situation
the use of independent judgment. where the supervisory union and the rank-and-file
union operating within the same establishment are both
9. Managerial employees are not eligible to affiliated with one and the same federation or national
join a union. union because of the possible conflict of interest which
may arise in the areas of discipline, collective
10. Doctrinal rulings on those bargaining and strike.
allowed/prohibited to join, form or assist a
labor organization. However, with the amendment of Art. 255 by R.A.
9841, the law now allows a rank-and-file union and a
a. Prohibiting managerial employees to self- supervisors’ union operating within the same
organize extends to confidential employees – bargaining unit to join the one (1) and the same
Art. 250 of the Labor Code limits the federation or national union.
ineligibility to join, form and assist any labor
organization to managerial employees. It was held in Adamson & Adamson that the unions
Jurisprudence has extended its prohibition to formed independently by the supervisory and rank-
confidential employees. and-file employees in a company may legally affiliate
b. Accounting personnel, radio and telegraph with the same federation.
operators having access to confidential
Article 245-A. Effect of inclusion as members of
information are confidential employees
employees outside the bargaining unit. - The inclusion
because they may become the source of
as union members of employees outside the
undue advantage. Said employees may act
bargaining unit shall not be a ground for the
as a spy or spies of either party to a collective
cancellation of the registration of the union. Said
bargaining agreement.
employees are automatically deemed removed from
c. Branch managers, cashiers and controllers
the list of membership of said union.
are confidential employees, having control,
custody and/or access to confidential matters. 1. Inclusion as members of employees
outside the bargaining unit; its effect

It shall not be a ground for the cancellation of the

A confidential employee is one entrusted with
registration of the union.
confidence on delicate matters, or with custody,
handling, or care and protection of the employer’s Said employees are automatically deemed removed
property. from the list of membership of said union.
d. General Manager including executive 2. Inclusion of disqualified employees in a
secretaries are confidential employees having union (comingling) not a ground for
access to vital labor information. cancellation of registration
e. Legal secretaries are confidential employees.
f. Prohibiting supervisory employees to join While there is a prohibition against the mingling of
rank-and-file union, not a ground for supervisory and rank-and-file employees in one labor
cancellation of union registration. organization, the Labor Code does not provide for the
effects thereof.

Thus, the inclusion of supervisory employees in a labor

11. Supervisory employees may join a union organization seeking to represent the bargaining unit of
rank-and-file employees does not divest it of its status
They are not eligible for membership in a labor
as a legitimate labor organization.
organization of the rank-and-file employees but may
join, assist or form separate organizations of their own. 3. Proper procedure in case of inclusion of
disqualified employees in a union due to
12. Employees of non-profit institutions may
Proper procedure is for an employer to directly file a
join a union
petition for cancellation of the union’s certificate of
registration due to misrepresentation, false statement
or fraud under the circumstances enumerated in Art.
13. Separation of unions doctrine, 247 of the Labor Code, as amended.
abandoned; adamson and adamson ruling
reinstated; comingling allowed.
However, it is now settled under Art. 256, that the
inclusion of disqualified employees in a union shall not
be a ground for cancellation of union registration.

Article 246. Non-abridgment of right to self-

organization. It shall be unlawful for any person to
restrain, coerce, discriminate against or unduly
interfere with employees and workers in their exercise
of the right to self-organization. Such right shall include
the right to form, join, or assist labor organizations for
the purpose of collective bargaining through
representatives of their own choosing and to engage in
lawful concerted activities for the same purpose for
their mutual aid and protection, subject to the
provisions of Article 285 of this Code.

1. Prohibition against commission of an ULP


An unfair labor practice is an act of an employer or

union- or their agents, which violates the right of
workers to self-organization, which includes the right

a. Form a union
b. Take part in its formation
c. Join or assist a union of their own choosing
for the purpose of
d. Collective bargaining and negotiations
e. Engage in concerted activities for mutual aid
and protection.