Presidential Decree No.

442, AS AMENDED May 1, 1974

A DECREE INSTITTIN! A "A#$R C$DE T%ERE#& RE'ISIN! AND C$NS$"IDATIN!
"A#$R AND S$CIA" "A(S T$ A))$RD PR$TECTI$N T$ "A#$R, PR$M$TE
EMP"$&MENT AND %MAN RES$RCES DE'E"$PMENT AND INSRE INDSTRIA"
PEACE #ASED $N S$CIA" *STICE
PRE"IMINAR& TIT"E
C+a,ter I
!ENERA" PR$'ISI$NS
Article 1. Name of Decree. This Decree shall be known as the "Labor Code of the Philippines".
Article 2. Date of effectivity. This Code shall take effect six (6) months after its promulation.
Article -. Declaration of basic policy. The !tate shall afford protection to labor" promote full
emplo#ment" ensure e$ual work opportunities reardless of sex" race or creed and reulate the relations
between workers and emplo#ers. The !tate shall assure the rihts of workers to self%orani&ation"
collecti'e barainin" securit# of tenure" and (ust and humane conditions of work.
Article 4. Construction in favor of labor. )ll doubts in the implementation and interpretation of the
pro'isions of this Code" includin its implementin rules and reulations" shall be resol'ed in fa'or of
labor.
Article .. Rules and regulations. The Department of Labor and other o'ernment aencies chared
with the administration and enforcement of this Code or an# of its parts shall promulate the necessar#
implementin rules and reulations. !uch rules and reulations shall become effecti'e fifteen (*+) da#s
after announcement of their adoption in newspapers of eneral circulation.
Article /. Applicability. )ll rihts and benefits ranted to workers under this Code shall" except as ma#
otherwise be pro'ided herein" appl# alike to all workers" whether aricultural or non%aricultural. ()s
amended b# Presidential Decree ,o. +-.%)" ,o'ember *" */-0)
C+a,ter II
EMANCIPATI$N $) TENANTS
Article 7. Statement of objectives. 1nasmuch as the old concept of land ownership b# a few has
spawned 'alid and leitimate rie'ances that a'e rise to 'iolent conflict and social tension and the
redress of such leitimate rie'ances bein one of the fundamental ob(ecti'es of the ,ew !ociet#" it
has become imperati'e to start reformation with the emancipation of the tiller of the soil from his
bondae.
Article 0. Transfer of lands to tenant-worers. 2ein a 'ital part of the labor force" tenant%farmers on
pri'ate aricultural lands primaril# de'oted to rice and corn under a s#stem of share crop or lease
tenanc# whether classified as landed estate or not shall be deemed owner of a portion constitutin a
famil#%si&e farm of fi'e (+) hectares" if not irriated and three (3) hectares" if irriated.
1n all cases" the land owner ma# retain an area of not more than se'en (-) hectares if such landowner is
culti'atin such area or will now culti'ate it.
Article 9. Determination of land value. 4or the purpose of determinin the cost of the land to be
transferred to the tenant%farmer" the 'alue of the land shall be e$ui'alent to two and one%half (5%*65)
times the a'erae har'est of three (3) normal crop #ears immediatel# precedin the promulation of
Presidential Decree ,o. 5- on 7ctober 5*" */-5.
The total cost of the land" includin interest at the rate of six percent (68) per annum" shall be paid b#
the tenant in fifteen (*+) #ears of fifteen (*+) e$ual annual amorti&ations.
1n case of default" the amorti&ation due shall be paid b# the farmers9 cooperati'e in which the
defaultin tenant%farmer is a member" with the cooperati'e ha'in a riht of recourse aainst him.
The o'ernment shall uarantee such amorti&ations with shares of stock in o'ernment%owned and
o'ernment%controlled corporations.
Article 11. Conditions of owners!ip. ,o title to the land ac$uired b# the tenant%farmer under
Presidential Decree ,o. 5- shall be actuall# issued to him unless and until he has become a full%fleded
member of a dul# reconi&ed farmers9 cooperati'e.
Title to the land ac$uired pursuant to Presidential Decree ,o. 5- or the Land :eform Proram of the
;o'ernment shall not be transferable except b# hereditar# succession or to the ;o'ernment in
accordance with the pro'isions of Presidential Decree ,o. 5-" the Code of )rarian :eforms and other
existin laws and reulations.
Article 11. "mplementing agency. The Department of )rarian :eform shall promulate the necessar#
rules and reulations to implement the pro'isions of this Chapter.
#$$2 $NE
PRE3EMP"$&MENT
Article 12. Statement of objectives. 1t is the polic# of the !tate<
To promote and maintain a state of full emplo#ment throuh impro'ed manpower trainin" allocation
and utili&ation=
To protect e'er# citi&en desirin to work locall# or o'erseas b# securin for him the best possible terms
and conditions of emplo#ment=
To facilitate a free choice of a'ailable emplo#ment b# persons seekin work in conformit# with the
national interest=
To facilitate and reulate the mo'ement of workers in conformit# with the national interest=
To reulate the emplo#ment of aliens" includin the establishment of a reistration and6or work permit
s#stem=
To strenthen the network of public emplo#ment offices and rationali&e the participation of the pri'ate
sector in the recruitment and placement of workers" locall# and o'erseas" to ser'e national de'elopment
ob(ecti'es=
To insure careful selection of 4ilipino workers for o'erseas emplo#ment in order to protect the ood
name of the Philippines abroad.
Title I
RECRITMENT AND P"ACEMENT $) ($R2ERS
C+a,ter I
!ENERA" PR$'ISI$NS
Article 1-. Definitions.
">orker" means an# member of the labor force" whether emplo#ed or unemplo#ed.
":ecruitment and placement" refers to an# act of can'assin" enlistin" contractin" transportin"
utili&in" hirin or procurin workers" and includes referrals" contract ser'ices" promisin or ad'ertisin
for emplo#ment" locall# or abroad" whether for profit or not< Pro'ided" That an# person or entit# which"
in an# manner" offers or promises for a fee" emplo#ment to two or more persons shall be deemed
enaed in recruitment and placement.
"Pri'ate fee%charin emplo#ment aenc#" means an# person or entit# enaed in recruitment and
placement of workers for a fee which is chared" directl# or indirectl#" from the workers or emplo#ers
or both.
"License" means a document issued b# the Department of Labor authori&in a person or entit# to
operate a pri'ate emplo#ment aenc#.
"Pri'ate recruitment entit#" means an# person or association enaed in the recruitment and placement
of workers" locall# or o'erseas" without charin" directl# or indirectl#" an# fee from the workers or
emplo#ers.
")uthorit#" means a document issued b# the Department of Labor authori&in a person or association
to enae in recruitment and placement acti'ities as a pri'ate recruitment entit#.
"!eaman" means an# person emplo#ed in a 'essel enaed in maritime na'iation.
"7'erseas emplo#ment" means emplo#ment of a worker outside the Philippines.
"?mirant" means an# person" worker or otherwise" who emirates to a forein countr# b# 'irtue of an
immirant 'isa or resident permit or its e$ui'alent in the countr# of destination.
Article 14. #mployment promotion. The !ecretar# of Labor shall ha'e the power and authorit#<
To orani&e and establish new emplo#ment offices in addition to the existin emplo#ment offices under
the Department of Labor as the need arises=
To orani&e and establish a nationwide (ob clearance and information s#stem to inform applicants
reisterin with a particular emplo#ment office of (ob opportunities in other parts of the countr# as well
as (ob opportunities abroad=
To de'elop and orani&e a proram that will facilitate occupational" industrial and eoraphical
mobilit# of labor and pro'ide assistance in the relocation of workers from one area to another= and
To re$uire an# person" establishment" orani&ation or institution to submit such emplo#ment
information as ma# be prescribed b# the !ecretar# of Labor.
Article 1.. $ureau of #mployment Services.
The 2ureau of ?mplo#ment !er'ices shall be primaril# responsible for de'elopin and monitorin a
comprehensi'e emplo#ment proram. 1t shall ha'e the power and dut#<
To formulate and de'elop plans and prorams to implement the emplo#ment promotion ob(ecti'es of
this Title=
To establish and maintain a reistration and6or licensin s#stem to reulate pri'ate sector participation
in the recruitment and placement of workers" locall# and o'erseas" and to secure the best possible terms
and conditions of emplo#ment for 4ilipino contract workers and compliance therewith under such rules
and reulations as ma# be issued b# the @inister of Labor=
To formulate and de'elop emplo#ment prorams desined to benefit disad'antaed roups and
communities=
To establish and maintain a reistration and6or work permit s#stem to reulate the emplo#ment of
aliens=
To de'elop a labor market information s#stem in aid of proper manpower and de'elopment plannin=
To de'elop a responsi'e 'ocational uidance and testin s#stem in aid of proper human resources
allocation= and
To maintain a central reistr# of skills" except seamen.
The reional offices of the @inistr# of Labor shall ha'e the oriinal and exclusi'e (urisdiction o'er all
matters or cases in'ol'in emplo#er%emplo#ee relations includin mone# claims" arisin out of or b#
'irtue of an# law or contracts in'ol'in 4ilipino workers for o'erseas emplo#ment except seamen<
Pro'ided" That the 2ureau of ?mplo#ment !er'ices ma#" in the case of the ,ational Capital :eion"
exercise such power" whene'er the @inister of Labor deems it appropriate. The decisions of the
reional offices of the 2ureau of ?mplo#ment !er'ices" if so authori&ed b# the @inister of Labor as
pro'ided in this )rticle" shall be appealable to the ,ational Labor :elations Commission upon the same
rounds pro'ided in )rticle 553 hereof. The decisions of the ,ational Labor :elations Commission
shall be final and inappealable. (!uperseded b# ?xec. 7rder -/-" @a# *" */A5).
The @inister of Labor shall ha'e the power to impose and collect fees based on rates recommended b#
the 2ureau of ?mplo#ment !er'ices. !uch fees shall be deposited in the ,ational Treasur# as a special
account of the ;eneral 4und" for the promotion of the ob(ecti'es of the 2ureau of ?mplo#ment
!er'ices" sub(ect to the pro'isions of !ection 0. of Presidential Decree ,o. **--.
Article 1/. %rivate recruitment. ?xcept as pro'ided in Chapter 11 of this Title" no person or entit# other
than the public emplo#ment offices" shall enae in the recruitment and placement of workers.
Article 17. &verseas #mployment Development $oard. )n 7'erseas ?mplo#ment De'elopment 2oard
is hereb# created to undertake" in cooperation with rele'ant entities and aencies" a s#stematic proram
for o'erseas emplo#ment of 4ilipino workers in excess of domestic needs and to protect their rihts to
fair and e$uitable emplo#ment practices. 1t shall ha'e the power and dut#<
To promote the o'erseas emplo#ment of 4ilipino workers throuh a comprehensi'e market promotion
and de'elopment proram=
To secure the best possible terms and conditions of emplo#ment of 4ilipino contract workers on a
o'ernment%to%o'ernment basis and to ensure compliance therewith=
To recruit and place workers for o'erseas emplo#ment on a o'ernment%to%o'ernment arranement
and in such other sectors as polic# ma# dictate= and
To act as secretariat for the 2oard of Trustees of the >elfare and Trainin 4und for 7'erseas >orkers.
Article 10. $an on direct-!iring. ,o emplo#er ma# hire a 4ilipino worker for o'erseas emplo#ment
except throuh the 2oards and entities authori&ed b# the !ecretar# of Labor. Direct%hirin b# members
of the diplomatic corps" international orani&ations and such other emplo#ers as ma# be allowed b# the
!ecretar# of Labor is exempted from this pro'ision.
Article 19. &ffice of #migrant Affairs.
Pursuant to the national polic# to maintain close ties with 4ilipino mirant communities and promote
their welfare as well as establish a data bank in aid of national manpower polic# formulation" an 7ffice
of ?mirant )ffairs is hereb# created in the Department of Labor. The 7ffice shall be a unit at the
7ffice of the !ecretar# and shall initiall# be manned and operated b# such personnel and throuh such
fundin as are a'ailable within the Department and its attached aencies. Thereafter" its appropriation
shall be made part of the reular ;eneral )ppropriations Decree.
The office shall" amon others" promote the well%bein of emirants and maintain their close link to the
homeland b#<
ser'in as a liaison with mirant communities=
pro'ision of welfare and cultural ser'ices=
promote and facilitate re%interation of mirants into the national mainstream=
promote economic= political and cultural ties with the communities= and
enerall# to undertake such acti'ities as ma# be appropriate to enhance such cooperati'e links.
Article 21. National Seamen $oard.
) ,ational !eamen 2oard is hereb# created which shall de'elop and maintain a comprehensi'e
proram for 4ilipino seamen emplo#ed o'erseas. 1t shall ha'e the power and dut#<
To pro'ide free placement ser'ices for seamen=
To reulate and super'ise the acti'ities of aents or representati'es of shippin companies in the hirin
of seamen for o'erseas emplo#ment and secure the best possible terms of emplo#ment for contract
seamen workers and secure compliance therewith=
To maintain a complete reistr# of all 4ilipino seamen.
The 2oard shall ha'e oriinal and exclusi'e (urisdiction o'er all matters or cases includin mone#
claims" in'ol'in emplo#er%emplo#ee relations" arisin out of or b# 'irtue of an# law or contracts
in'ol'in 4ilipino seamen for o'erseas emplo#ment. The decisions of the 2oard shall be appealable to
the ,ational Labor :elations Commission upon the same rounds pro'ided in )rticle 553 hereof. The
decisions of the ,ational Labor :elations Commission shall be final and inappealable.
Article 21. 'oreign service role and participation. To pro'ide ample protection to 4ilipino workers
abroad" the labor attaches" the labor reportin officers dul# desinated b# the !ecretar# of Labor and
the Philippine diplomatic or consular officials concerned shall" e'en without prior instruction or ad'ice
from the home office" exercise the power and dut#<
To pro'ide all 4ilipino workers within their (urisdiction assistance on all matters arisin out of
emplo#ment=
To insure that 4ilipino workers are not exploited or discriminated aainst=
To 'erif# and certif# as re$uisite to authentication that the terms and conditions of emplo#ment in
contracts in'ol'in 4ilipino workers are in accordance with the Labor Code and rules and reulations
of the 7'erseas ?mplo#ment De'elopment 2oard and ,ational !eamen 2oard=
To make continuin studies or researches and recommendations on the 'arious aspects of the
emplo#ment market within their (urisdiction=
To ather and anal#&e information on the emplo#ment situation and its probable trends" and to make
such information a'ailable= and
To perform such other duties as ma# be re$uired of them from time to time.
Article 22. (andatory remittance of foreign e)c!ange earnings. 1t shall be mandator# for all 4ilipino
workers abroad to remit a portion of their forein exchane earnins to their families" dependents"
and6or beneficiaries in the countr# in accordance with rules and reulations prescribed b# the !ecretar#
of Labor.
Article 2-. Composition of t!e $oards.
The 7?D2 shall be composed of the !ecretar# of Labor and ?mplo#ment as Chairman" the
Bndersecretar# of Labor as Cice%Chairman" and a representati'e each of the Department of 4orein
)ffairs" the Department of ,ational Defense" the Central 2ank" the Department of ?ducation" Culture
and !ports" the ,ational @anpower and Douth Council" the 2ureau of ?mplo#ment !er'ices" a
workers9 orani&ation and an emplo#ers9 orani&ation and the ?xecuti'e Director of the 7?D2 as
members.
The ,ational !eamen 2oard shall be composed of the !ecretar# of Labor and ?mplo#ment as
Chairman" the Bndersecretar# of Labor as Cice%Chairman" the Commandant of the Philippine Coast
;uard" and a representati'e each of the Department of 4orein )ffairs" the Department of ?ducation"
Culture and !ports" the Central 2ank" the @aritime 1ndustr# )uthorit#" the 2ureau of ?mplo#ment
!er'ices" a national shippin association and the ?xecuti'e Director of the ,!2 as members.
The members of the 2oards shall recei'e allowances to be determined b# the 2oard which shall not be
more than P5"...... per month.
The 2oards shall be attached to the Department of Labor for polic# and proram coordination. The#
shall each be assisted b# a !ecretariat headed b# an ?xecuti'e Director who shall be a 4ilipino citi&en
with sufficient experience in manpower administration" includin o'erseas emplo#ment acti'ities. The
?xecuti'e Director shall be appointed b# the President of the Philippines upon the recommendation of
the !ecretar# of Labor and shall recei'e an annual salar# as fixed b# law. The !ecretar# of Labor shall
appoint the other members of the !ecretariat.
The )uditor ;eneral shall appoint his representati'e to the 2oards to audit their respecti'e accounts in
accordance with auditin laws and pertinent rules and reulations.
Article 24. $oards to issue rules and collect fees. The 2oards shall issue appropriate rules and
reulations to carr# out their functions. The# shall ha'e the power to impose and collect fees from
emplo#ers concerned" which shall be deposited in the respecti'e accounts of said 2oards and be used
b# them exclusi'el# to promote their ob(ecti'es.
C+a,ter II
RE!"ATI$N $) RECRITMENT AND P"ACEMENT ACTI'ITIES
Article 2.. %rivate sector participation in t!e recruitment and placement of worers. Pursuant to
national de'elopment ob(ecti'es and in order to harness and maximi&e the use of pri'ate sector
resources and initiati'e in the de'elopment and implementation of a comprehensi'e emplo#ment
proram" the pri'ate emplo#ment sector shall participate in the recruitment and placement of workers"
locall# and o'erseas" under such uidelines" rules and reulations as ma# be issued b# the !ecretar# of
Labor.
Article 2/. Travel agencies pro!ibited to recruit. Tra'el aencies and sales aencies of airline
companies are prohibited from enain in the business of recruitment and placement of workers for
o'erseas emplo#ment whether for profit or not.
Article 27. Citi*ens!ip re+uirement. 7nl# 4ilipino citi&ens or corporations" partnerships or entities at
least se'ent#%fi'e percent (-+8) of the authori&ed and 'otin capital stock of which is owned and
controlled b# 4ilipino citi&ens shall be permitted to participate in the recruitment and placement of
workers" locall# or o'erseas.
Article 20. Capitali*ation. )ll applicants for authorit# to hire or renewal of license to recruit are
re$uired to ha'e such substantial capitali&ation as determined b# the !ecretar# of Labor.
Article 29. Non-transferability of license or aut!ority. ,o license or authorit# shall be used directl# or
indirectl# b# an# person other than the one in whose fa'or it was issued or at an# place other than that
stated in the license or authorit# be transferred" con'e#ed or assined to an# other person or entit#. )n#
transfer of business address" appointment or desination of an# aent or representati'e includin the
establishment of additional offices an#where shall be sub(ect to the prior appro'al of the Department of
Labor.
Article -1. Registration fees. The !ecretar# of Labor shall promulate a schedule of fees for the
reistration of all applicants for license or authorit#.
Article -1. $onds. )ll applicants for license or authorit# shall post such cash and suret# bonds as
determined b# the !ecretar# of Labor to uarantee compliance with prescribed recruitment procedures"
rules and reulations" and terms and conditions of emplo#ment as ma# be appropriate.
Article -2. 'ees to be paid by worers. )n# person appl#in with a pri'ate fee%charin emplo#ment
aenc# for emplo#ment assistance shall not be chared an# fee until he has obtained emplo#ment
throuh its efforts or has actuall# commenced emplo#ment. !uch fee shall be alwa#s co'ered with the
appropriate receipt clearl# showin the amount paid. The !ecretar# of Labor shall promulate a
schedule of allowable fees.
Article --. Reports on employment status. >hene'er the public interest re$uires" the !ecretar# of
Labor ma# direct all persons or entities within the co'erae of this Title to submit a report on the status
of emplo#ment" includin (ob 'acancies" details of (ob re$uisitions" separation from (obs" waes" other
terms and conditions and other emplo#ment data.
Article -4. %ro!ibited practices. 1t shall be unlawful for an# indi'idual" entit#" licensee" or holder of
authorit#<
To chare or accept" directl# or indirectl#" an# amount reater than that specified in the schedule of
allowable fees prescribed b# the !ecretar# of Labor" or to make a worker pa# an# amount reater than
that actuall# recei'ed b# him as a loan or ad'ance=
To furnish or publish an# false notice or information or document in relation to recruitment or
emplo#ment=
To i'e an# false notice" testimon#" information or document or commit an# act of misrepresentation
for the purpose of securin a license or authorit# under this Code.
To induce or attempt to induce a worker alread# emplo#ed to $uit his emplo#ment in order to offer him
to another unless the transfer is desined to liberate the worker from oppressi'e terms and conditions of
emplo#ment=
To influence or to attempt to influence an# person or entit# not to emplo# an# worker who has not
applied for emplo#ment throuh his aenc#=
To enae in the recruitment or placement of workers in (obs harmful to public health or moralit# or to
the dinit# of the :epublic of the Philippines=
To obstruct or attempt to obstruct inspection b# the !ecretar# of Labor or b# his dul# authori&ed
representati'es=
To fail to file reports on the status of emplo#ment" placement 'acancies" remittance of forein exchane
earnins" separation from (obs" departures and such other matters or information as ma# be re$uired b#
the !ecretar# of Labor.
To substitute or alter emplo#ment contracts appro'ed and 'erified b# the Department of Labor from the
time of actual sinin thereof b# the parties up to and includin the periods of expiration of the same
without the appro'al of the !ecretar# of Labor=
To become an officer or member of the 2oard of an# corporation enaed in tra'el aenc# or to be
enaed directl# or indirectl# in the manaement of a tra'el aenc#= and
To withhold or den# tra'el documents from applicant workers before departure for monetar# or
financial considerations other than those authori&ed under this Code and its implementin rules and
reulations.
Article -.. Suspension and,or cancellation of license or aut!ority. The @inister of Labor shall ha'e the
power to suspend or cancel an# license or authorit# to recruit emplo#ees for o'erseas emplo#ment for
'iolation of rules and reulations issued b# the @inistr# of Labor" the 7'erseas ?mplo#ment
De'elopment 2oard" or for 'iolation of the pro'isions of this and other applicable laws" ;eneral 7rders
and Letters of 1nstructions.
C+a,ter III
MISCE""ANE$S PR$'ISI$NS
Article -/. Regulatory power. The !ecretar# of Labor shall ha'e the power to restrict and reulate the
recruitment and placement acti'ities of all aencies within the co'erae of this Title and is hereb#
authori&ed to issue orders and promulate rules and reulations to carr# out the ob(ecti'es and
implement the pro'isions of this Title.
Article -7. -isitorial %ower. The !ecretar# of Labor or his dul# authori&ed representati'es ma#" at an#
time" inspect the premises" books of accounts and records of an# person or entit# co'ered b# this Title"
re$uire it to submit reports reularl# on prescribed forms" and act on 'iolation of an# pro'isions of this
Title.
Article -0. "llegal recruitment.
)n# recruitment acti'ities" includin the prohibited practices enumerated under )rticle 30 of this Code"
to be undertaken b# non%licensees or non%holders of authorit#" shall be deemed illeal and punishable
under )rticle 3/ of this Code. The Department of Labor and ?mplo#ment or an# law enforcement
officer ma# initiate complaints under this )rticle.
1lleal recruitment when committed b# a s#ndicate or in lare scale shall be considered an offense
in'ol'in economic sabotae and shall be penali&ed in accordance with )rticle 3/ hereof.
1lleal recruitment is deemed committed b# a s#ndicate if carried out b# a roup of three (3) or more
persons conspirin and6or confederatin with one another in carr#in out an# unlawful or illeal
transaction" enterprise or scheme defined under the first pararaph hereof. 1lleal recruitment is deemed
committed in lare scale if committed aainst three (3) or more persons indi'iduall# or as a roup.
The !ecretar# of Labor and ?mplo#ment or his dul# authori&ed representati'es shall ha'e the power to
cause the arrest and detention of such non%licensee or non%holder of authorit# if after in'estiation it is
determined that his acti'ities constitute a daner to national securit# and public order or will lead to
further exploitation of (ob%seekers. The !ecretar# shall order the search of the office or premises and
sei&ure of documents" paraphernalia" properties and other implements used in illeal recruitment
acti'ities and the closure of companies" establishments and entities found to be enaed in the
recruitment of workers for o'erseas emplo#ment" without ha'in been licensed or authori&ed to do so.
Article -9. %enalties.
The penalt# of life imprisonment and a fine of 7ne Eundred Thousand Pesos (P*..."......) shall be
imposed if illeal recruitment constitutes economic sabotae as defined herein=
)n# licensee or holder of authorit# found 'iolatin or causin another to 'iolate an# pro'ision of this
Title or its implementin rules and reulations shall" upon con'iction thereof" suffer the penalt# of
imprisonment of not less than two #ears nor more than fi'e #ears or a fine of not less than P*."... nor
more than P+."..." or both such imprisonment and fine" at the discretion of the court=
)n# person who is neither a licensee nor a holder of authorit# under this Title found 'iolatin an#
pro'ision thereof or its implementin rules and reulations shall" upon con'iction thereof" suffer the
penalt# of imprisonment of not less than four #ears nor more than eiht #ears or a fine of not less than
P5."... nor more than P*.."... or both such imprisonment and fine" at the discretion of the court=
1f the offender is a corporation" partnership" association or entit#" the penalt# shall be imposed upon the
officer or officers of the corporation" partnership" association or entit# responsible for 'iolation= and if
such officer is an alien" he shall" in addition to the penalties herein prescribed" be deported without
further proceedins=
1n e'er# case" con'iction shall cause and carr# the automatic re'ocation of the license or authorit# and
all the permits and pri'ilees ranted to such person or entit# under this Title" and the forfeiture of the
cash and suret# bonds in fa'or of the 7'erseas ?mplo#ment De'elopment 2oard or the ,ational
!eamen 2oard" as the case ma# be" both of which are authori&ed to use the same exclusi'el# to
promote their ob(ecti'es.
Title II
EMP"$&MENT $) N$N3RESIDENT A"IENS
Article 41. #mployment permit of non-resident aliens. )n# alien seekin admission to the Philippines
for emplo#ment purposes and an# domestic or forein emplo#er who desires to enae an alien for
emplo#ment in the Philippines shall obtain an emplo#ment permit from the Department of Labor.
The emplo#ment permit ma# be issued to a non%resident alien or to the applicant emplo#er after a
determination of the non%a'ailabilit# of a person in the Philippines who is competent" able and willin
at the time of application to perform the ser'ices for which the alien is desired.
4or an enterprise reistered in preferred areas of in'estments" said emplo#ment permit ma# be issued
upon recommendation of the o'ernment aenc# chared with the super'ision of said reistered
enterprise.
Article 41. %ro!ibition against transfer of employment.
)fter the issuance of an emplo#ment permit" the alien shall not transfer to another (ob or chane his
emplo#er without prior appro'al of the !ecretar# of Labor.
)n# non%resident alien who shall take up emplo#ment in 'iolation of the pro'ision of this Title and its
implementin rules and reulations shall be punished in accordance with the pro'isions of )rticles 5A/
and 5/. of the Labor Code.
1n addition" the alien worker shall be sub(ect to deportation after ser'ice of his sentence.
Article 42. Submission of list. )n# emplo#er emplo#in non%resident forein nationals on the effecti'e
date of this Code shall submit a list of such nationals to the !ecretar# of Labor within thirt# (3.) da#s
after such date indicatin their names" citi&enship" forein and local addresses" nature of emplo#ment
and status of sta# in the countr#. The !ecretar# of Labor shall then determine if the# are entitled to an
emplo#ment permit.
#$$2 T($
%MAN RES$RCES DE'E"$PMENT PR$!RAM
Title I
NATI$NA" MANP$(ER DE'E"$PMENT PR$!RAM
C+a,ter I
NATI$NA" P$"ICIES AND ADMINISTRATI'E MAC%INER& )$R T%EIR
IMP"EMENTATI$N
Article 4-. Statement of objective. 1t is the ob(ecti'e of this Title to de'elop human resources" establish
trainin institutions" and formulate such plans and prorams as will ensure efficient allocation"
de'elopment and utili&ation of the nation9s manpower and thereb# promote emplo#ment and accelerate
economic and social rowth.
Article 44. Definitions. )s used in this Title<
"@anpower" shall mean that portion of the nation9s population which has actual or potential capabilit#
to contribute directl# to the production of oods and ser'ices.
"?ntrepreneurship" shall mean trainin for self%emplo#ment or assistin indi'idual or small industries
within the pur'iew of this Title.
Article 4.. National (anpower and .out! Council/ Composition. To carr# out the ob(ecti'es of this
Title" the ,ational @anpower and Douth Council" which is attached to the Department of Labor for
polic# and proram coordination and hereinafter referred to as the Council" shall be composed of the
!ecretar# of Labor as ex%officio chairman" the !ecretar# of ?ducation and Culture as ex%officio 'ice%
chairman" and as ex%officio members" the !ecretar# of ?conomic Plannin" the !ecretar# of ,atural
:esources" the Chairman of the Ci'il !er'ice Commission" the !ecretar# of !ocial >elfare" the
!ecretar# of Local ;o'ernment" the !ecretar# of !cience and Technolo#" the !ecretar# of Trade and
1ndustr# and the Director%;eneral of the Council. The Director ;eneral shall ha'e no 'ote.
1n addition" the President shall appoint the followin members from the pri'ate sector< two (5)
representati'es of national orani&ations of emplo#ers= two (5) representati'es of national workers9
orani&ations= and one representati'e of national famil# and #outh orani&ations" each for a term of
three (3) #ears.
Article 4/. National (anpower %lan. The Council shall formulate a lon%term national manpower plan
for the optimum allocation" de'elopment and utili&ation of manpower for emplo#ment"
entrepreneurship and economic and social rowth. This manpower plan shall" after adoption b# the
Council" be updated annuall# and submitted to the President for his appro'al. Thereafter" it shall be the
controllin plan for the de'elopment of manpower resources for the entire countr# in accordance with
the national de'elopment plan. The Council shall call upon an# aenc# of the ;o'ernment or the
pri'ate sector to assist in this effort.
Article 47. National (anpower Sills Center. The Council shall establish a ,ational @anpower !kills
Center and reional and local trainin centers for the purpose of promotin the de'elopment of skills.
The centers shall be administered and operated under such rules and reulations as ma# be established
b# the Council.
Article 40. #stablis!ment and formulation of sills standards. There shall be national skills standards
for industr# trades to be established b# the Council in consultation with emplo#ers9 and workers9
orani&ations and appropriate o'ernment authorities. The Council shall thereafter administer the
national skills standards.
Article 49. Administration of training programs. The Council shall pro'ide" throuh the !ecretariat"
instructor trainin" entrepreneurship de'elopment" trainin in 'ocations" trades and other fields of
emplo#ment" and assist an# emplo#er or orani&ation in trainin schemes desined to attain its
ob(ecti'es under rules and reulations which the Council shall establish for this purpose.
The Council shall exercise" throuh the !ecretariat" authorit# and (urisdiction o'er" and administer" on%
oin technical assistance prorams and6or rants%in%aid for manpower and #outh de'elopment
includin those which ma# be entered into between the ;o'ernment of the Philippines and
international and forein orani&ations and nations" as well as persons and orani&ations in the
Philippines.
1n order to interate the national manpower de'elopment efforts" all manpower trainin schemes as
pro'ided for in this Code shall be coordinated with the Council" particularl# those ha'in to do with the
settin of skills standards. 4or this purpose" existin manpower trainin prorams in the o'ernment
and in the pri'ate sector shall be reported to the Council which ma# reulate such prorams to make
them conform with national de'elopment prorams.
This )rticle shall not include apprentices" learners and handicapped workers as o'erned b#
appropriate pro'isions of this Code.
Article .1. "ndustry boards. The Council shall establish industr# boards to assist in the establishment
of manpower de'elopment schemes" trades and skills standards and such other functions as will
pro'ide direct participation of emplo#ers and workers in the fulfillment of the Council9s ob(ecti'es" in
accordance with uidelines to be established b# the Council and in consultation with the ,ational
?conomic and De'elopment )uthorit#.
The maintenance and operations of the industr# boards shall be financed throuh a fundin scheme
under such rates of fees and manners of collection and disbursements as ma# be determined b# the
Council.
Article .1. #mployment service training functions. The Council shall utili&e the emplo#ment ser'ice of
the Department of Labor for the placement of its raduates. The 2ureau of ?mplo#ment !er'ices shall
render assistance to the Council in the measurement of unemplo#ment and underemplo#ment" conduct
of local manpower resource sur'e#s and occupational studies includin an in'entor# of the labor force"
establishment and maintenance without chare of a national reister of technicians who ha'e
successfull# completed a trainin proram under this )ct" and skilled manpower includin its
publication" maintenance of an ade$uate and up%to%date s#stem of emplo#ment information.
Article .2. "ncentive Sc!eme. )n additional deduction from taxable income of one%half (*65) of the
'alue of labor trainin expenses incurred for de'elopment prorams shall be ranted to the person or
enterprise concerned pro'ided that such de'elopment prorams" other than apprenticeship" are
appro'ed b# the Council and the deduction does not exceed ten percent (*.8) of the direct labor wae.
There shall be a re'iew of the said scheme two #ears after its implementation.
Article .-. Council Secretariat. The Council shall ha'e a !ecretariat headed b# a Director%;eneral who
shall be assisted b# a Deput# Director%;eneral" both of whom shall be career administrators appointed
b# the President of the Philippines on recommendation of the !ecretar# of Labor. The !ecretariat shall
be under the administrati'e super'ision of the !ecretar# of Labor and shall ha'e an 7ffice of
@anpower Plannin and De'elopment" an 7ffice of Cocational Preparation" a ,ational @anpower
!kills Center" reional manpower de'elopment offices and such other offices as ma# be necessar#.
The Director%;eneral shall ha'e the rank and emoluments of an undersecretar# and shall ser'e for a
term of ten (*.) #ears. The ?xecuti'e%Directors of the 7ffice of @anpower Plannin and De'elopment"
the 7ffice of Cocational Preparation and the ,ational @anpower !kills Center shall ha'e the rank and
emoluments of a bureau director and shall be sub(ect to Ci'il !er'ice Law" rules and reulations. The
Director%;eneral" Deput# Director%;eneral and ?xecuti'e Directors shall be natural%born citi&ens"
between thirt# and fift# #ears of ae at the time of appointment" with a master9s deree or its
e$ui'alent" and experience in national plannin and de'elopment of human resources. The ?xecuti'e
Director of the ,ational @anpower !kills Center shall" in addition to the foreoin $ualifications" ha'e
underone trainin in center manaement. ?xecuti'e Directors shall be appointed b# the President on
the recommendations of the !ecretar# of Labor and ?mplo#ment.
The Director%;eneral shall appoint such personnel necessar# to carr# out the ob(ecti'es" policies and
functions of the Council sub(ect to Ci'il !er'ice rules. The reular professional and technical personnel
shall be exempt from >)PC7 rules and reulations.
The !ecretariat shall ha'e the followin functions and responsibilities<
To prepare and recommend the manpower plan for appro'al b# the Council=
To recommend allocation of resources for the implementation of the manpower plan as appro'ed b# the
Council=
To carr# out the manpower plan as the implementin arm of the Council=
To effect the efficient performance of the functions of the Council and the achie'ement of the
ob(ecti'es of this Title=
To determine specific allocation of resources for the pro(ects to be undertaken pursuant to appro'ed
manpower plans=
To submit to the Council periodic reports on proress and accomplishment of work prorams=
To prepare for appro'al b# the Council an annual report to the President on plans" prorams and
pro(ects on manpower and out%of%school #outh de'elopment=
To enter into areements to implement appro'ed plans and prorams and perform an# and all such acts
as will fulfill the ob(ecti'es of this Code as well as ensure the efficient performance of the functions of
the Council= and
To perform such other functions as ma# be authori&ed b# the Council.
Article .4. Regional manpower development offices. The Council shall create reional manpower
de'elopment offices which shall determine the manpower needs of the industr#" ariculture and other
sectors of the econom# within their respecti'e (urisdictions= pro'ide the Council9s central planners with
the data for updatin the national manpower plan= recommend prorams for the reional le'el aencies
enaed in manpower and #outh de'elopment within the policies formulated b# the Council= and
administer and super'ise !ecretariat trainin prorams within the reion and perform such other
functions as ma# be authori&ed b# the Council.
Article ... Consultants and tec!nical assistance0 publication and researc!. 1n pursuin its ob(ecti'es"
the Council is authori&ed to set aside a portion of its appropriation for the hirin of the ser'ices of
$ualified consultants" and6or pri'ate orani&ations for research work and publication. 1t shall a'ail itself
of the ser'ices of the ;o'ernment as ma# be re$uired.
Article ./. Rules and regulations. The Council shall define its broad functions and issue appropriate
rules and reulations necessar# to implement the pro'ision of this Code.
Title II
TRAININ! AND EMP"$&MENT $) SPECIA" ($R2ERS
C+a,ter I
APPRENTICES
Article .7. Statement of objectives. This Title aims<
To help meet the demand of the econom# for trained manpower=
To establish a national apprenticeship proram throuh the participation of emplo#ers" workers and
o'ernment and non%o'ernment aencies= and
To establish apprenticeship standards for the protection of apprentices.
Article .0. Definition of Terms. )s used in this Title<
")pprenticeship" means practical trainin on the (ob supplemented b# related theoretical instruction.
)n "apprentice" is a worker who is co'ered b# a written apprenticeship areement with an indi'idual
emplo#er or an# of the entities reconi&ed under this Chapter.
)n "apprenticeable occupation" means an# trade" form of emplo#ment or occupation which re$uires
more than three (3) months of practical trainin on the (ob supplemented b# related theoretical
instruction.
")pprenticeship areement" is an emplo#ment contract wherein the emplo#er binds himself to train the
apprentice and the apprentice in turn accepts the terms of trainin.
Article .9. 1ualifications of apprentice. To $ualif# as an apprentice" a person shall<
2e at least fourteen (*0) #ears of ae=
Possess 'ocational aptitude and capacit# for appropriate tests= and
Possess the abilit# to comprehend and follow oral and written instructions.
Trade and industr# associations ma# recommend to the !ecretar# of Labor appropriate educational
re$uirements for different occupations.
Article /1. #mployment of apprentices. 7nl# emplo#ers in the hihl# technical industries ma# emplo#
apprentices and onl# in apprenticeable occupations appro'ed b# the !ecretar# of Labor and
?mplo#ment. ()s amended b# !ection *" ?xecuti'e 7rder ,o. ***" December 50" */A6)
Article /1. Contents of apprentices!ip agreements. )pprenticeship areements" includin the wae
rates of apprentices" shall conform to the rules issued b# the !ecretar# of Labor and ?mplo#ment. The
period of apprenticeship shall not exceed six months. )pprenticeship areements pro'idin for wae
rates below the leal minimum wae" which in no case shall start below -+ percent of the applicable
minimum wae" ma# be entered into onl# in accordance with apprenticeship prorams dul# appro'ed
b# the !ecretar# of Labor and ?mplo#ment. The Department shall de'elop standard model prorams of
apprenticeship. ()s amended b# !ection *" ?xecuti'e 7rder ,o. ***" December 50" */A6)
Article /2. Signing of apprentices!ip agreement. ?'er# apprenticeship areement shall be sined b#
the emplo#er or his aent" or b# an authori&ed representati'e of an# of the reconi&ed orani&ations"
associations or roups and b# the apprentice.
)n apprenticeship areement with a minor shall be sined in his behalf b# his parent or uardian" if the
latter is not a'ailable" b# an authori&ed representati'e of the Department of Labor" and the same shall
be bindin durin its lifetime.
?'er# apprenticeship areement entered into under this Title shall be ratified b# the appropriate
apprenticeship committees" if an#" and a cop# thereof shall be furnished both the emplo#er and the
apprentice.
Article /-. -enue of apprentices!ip programs. )n# firm" emplo#er" roup or association" industr#
orani&ation or ci'ic roup wishin to orani&e an apprenticeship proram ma# choose from an# of the
followin apprenticeship schemes as the trainin 'enue for apprentice<
)pprenticeship conducted entirel# b# and within the sponsorin firm" establishment or entit#=
)pprenticeship entirel# within a Department of Labor and ?mplo#ment trainin center or other public
trainin institution= or
1nitial trainin in trade fundamentals in a trainin center or other institution with subse$uent actual
work participation within the sponsorin firm or entit# durin the final stae of trainin.
Article /4. Sponsoring of apprentices!ip program. )n# of the apprenticeship schemes reconi&ed
herein ma# be undertaken or sponsored b# a sinle emplo#er or firm or b# a roup or association
thereof or b# a ci'ic orani&ation. )ctual trainin of apprentices ma# be undertaken<
1n the premises of the sponsorin emplo#er in the case of indi'idual apprenticeship prorams=
1n the premises of one or se'eral desinated firms in the case of prorams sponsored b# a roup or
association of emplo#ers or b# a ci'ic orani&ation= or
1n a Department of Labor and ?mplo#ment trainin center or other public trainin institution.
Article /.. "nvestigation of violation of apprentices!ip agreement. Bpon complaint of an# interested
person or upon its own initiati'e" the appropriate aenc# of the Department of Labor and ?mplo#ment
or its authori&ed representati'e shall in'estiate an# 'iolation of an apprenticeship areement pursuant
to such rules and reulations as ma# be prescribed b# the !ecretar# of Labor and ?mplo#ment.
Article //. Appeal to t!e Secretary of 2abor and #mployment. The decision of the authori&ed aenc#
of the Department of Labor and ?mplo#ment ma# be appealed b# an# arie'ed person to the
!ecretar# of Labor and ?mplo#ment within fi'e (+) da#s from receipt of the decision. The decision of
the !ecretar# of Labor and ?mplo#ment shall be final and executor#.
Article /7. #)!austion of administrative remedies. ,o person shall institute an# action for the
enforcement of an# apprenticeship areement or damaes for breach of an# such areement" unless he
has exhausted all a'ailable administrati'e remedies.
Article /0. Aptitude testing of applicants. Consonant with the minimum $ualifications of apprentice%
applicants re$uired under this Chapter" emplo#ers or entities with dul# reconi&ed apprenticeship
prorams shall ha'e primar# responsibilit# for pro'idin appropriate aptitude tests in the selection of
apprentices. 1f the# do not ha'e ade$uate facilities for the purpose" the Department of Labor and
?mplo#ment shall perform the ser'ice free of chare.
Article /9. Responsibility for t!eoretical instruction. !upplementar# theoretical instruction to
apprentices in cases where the proram is undertaken in the plant ma# be done b# the emplo#er. 1f the
latter is not prepared to assume the responsibilit#" the same ma# be deleated to an appropriate
o'ernment aenc#.
Article 71. -oluntary organi*ation of apprentices!ip programs/ e)emptions.
The orani&ation of apprenticeship proram shall be primaril# a 'oluntar# undertakin b# emplo#ers=
>hen national securit# or particular re$uirements of economic de'elopment so demand" the President
of the Philippines ma# re$uire compulsor# trainin of apprentices in certain trades" occupations" (obs or
emplo#ment le'els where shortae of trained manpower is deemed critical as determined b# the
!ecretar# of Labor and ?mplo#ment. )ppropriate rules in this connection shall be promulated b# the
!ecretar# of Labor and ?mplo#ment as the need arises= and
>here ser'ices of forein technicians are utili&ed b# pri'ate companies in apprenticeable trades" said
companies are re$uired to set up appropriate apprenticeship prorams.
Article 71. Deductibility of training costs. )n additional deduction from taxable income of one%half
(*65) of the 'alue of labor trainin expenses incurred for de'elopin the producti'it# and efficienc# of
apprentices shall be ranted to the person or enterprise orani&in an apprenticeship proram<
Pro'ided" That such proram is dul# reconi&ed b# the Department of Labor and ?mplo#ment<
Pro'ided" further" That such deduction shall not exceed ten (*.8) percent of direct labor wae< and
Pro'ided" finall#" That the person or enterprise who wishes to a'ail himself or itself of this incenti'e
should pa# his apprentices the minimum wae.
Article 72. Apprentices wit!out compensation. The !ecretar# of Labor and ?mplo#ment ma# authori&e
the hirin of apprentices without compensation whose trainin on the (ob is re$uired b# the school or
trainin proram curriculum or as re$uisite for raduation or board examination.
C+a,ter II
"EARNERS
Article 7-. 2earners defined. Learners are persons hired as trainees in semi%skilled and other industrial
occupations which are non%apprenticeable and which ma# be learned throuh practical trainin on the
(ob in a relati'el# short period of time which shall not exceed three (3) months.
Article 74. 3!en learners may be !ired. Learners ma# be emplo#ed when no experienced workers are
a'ailable" the emplo#ment of learners is necessar# to pre'ent curtailment of emplo#ment opportunities"
and the emplo#ment does not create unfair competition in terms of labor costs or impair or lower
workin standards.
Article 7.. 2earners!ip agreement. )n# emplo#er desirin to emplo# learners shall enter into a
learnership areement with them" which areement shall include<
The names and addresses of the learners=
The duration of the learnership period" which shall not exceed three (3) months=
The waes or salar# rates of the learners which shall bein at not less than se'ent#%fi'e percent (-+8)
of the applicable minimum wae= and
) commitment to emplo# the learners if the# so desire" as reular emplo#ees upon completion of the
learnership. )ll learners who ha'e been allowed or suffered to work durin the first two (5) months
shall be deemed reular emplo#ees if trainin is terminated b# the emplo#er before the end of the
stipulated period throuh no fault of the learners.
The learnership areement shall be sub(ect to inspection b# the !ecretar# of Labor and ?mplo#ment or
his dul# authori&ed representati'e.
Article 7/. 2earners in piecewor. Learners emplo#ed in piece or incenti'e%rate (obs durin the
trainin period shall be paid in full for the work done.
Article 77. %enalty clause. )n# 'iolation of this Chapter or its implementin rules and reulations shall
be sub(ect to the eneral penalt# clause pro'ided for in this Code.
C+a,ter III
%ANDICAPPED ($R2ERS
Article 70. Definition. Eandicapped workers are those whose earnin capacit# is impaired b# ae or
ph#sical or mental deficienc# or in(ur#.
Article 79. 3!en employable. Eandicapped workers ma# be emplo#ed when their emplo#ment is
necessar# to pre'ent curtailment of emplo#ment opportunities and when it does not create unfair
competition in labor costs or impair or lower workin standards.
Article 01. #mployment agreement. )n# emplo#er who emplo#s handicapped workers shall enter into
an emplo#ment areement with them" which areement shall include<
The names and addresses of the handicapped workers to be emplo#ed=
The rate to be paid the handicapped workers which shall not be less than se'ent# fi'e (-+8) percent of
the applicable leal minimum wae=
The duration of emplo#ment period= and
The work to be performed b# handicapped workers.
The emplo#ment areement shall be sub(ect to inspection b# the !ecretar# of Labor or his dul#
authori&ed representati'e.
Article 01. #ligibility for apprentices!ip. !ub(ect to the appropriate pro'isions of this Code"
handicapped workers ma# be hired as apprentices or learners if their handicap is not such as to
effecti'el# impede the performance of (ob operations in the particular occupations for which the# are
hired.
#$$2 T%REE
C$NDITI$NS $) EMP"$&MENT
Title I
($R2IN! C$NDITI$NS AND REST PERI$DS
C+a,ter I
%$RS $) ($R2
Article 02. Coverage. The pro'isions of this Title shall appl# to emplo#ees in all establishments and
undertakins whether for profit or not" but not to o'ernment emplo#ees" manaerial emplo#ees" field
personnel" members of the famil# of the emplo#er who are dependent on him for support" domestic
helpers" persons in the personal ser'ice of another" and workers who are paid b# results as determined
b# the !ecretar# of Labor in appropriate reulations.
)s used herein" "manaerial emplo#ees" refer to those whose primar# dut# consists of the manaement
of the establishment in which the# are emplo#ed or of a department or subdi'ision thereof" and to other
officers or members of the manaerial staff.
"4ield personnel" shall refer to non%aricultural emplo#ees who reularl# perform their duties awa#
from the principal place of business or branch office of the emplo#er and whose actual hours of work in
the field cannot be determined with reasonable certaint#.
Article 0-. Normal !ours of wor. The normal hours of work of an# emplo#ee shall not exceed eiht
(A) hours a da#.
Eealth personnel in cities and municipalities with a population of at least one million (*"..."...) or in
hospitals and clinics with a bed capacit# of at least one hundred (*..) shall hold reular office hours
for eiht (A) hours a da#" for fi'e (+) da#s a week" exclusi'e of time for meals" except where the
exiencies of the ser'ice re$uire that such personnel work for six (6) da#s or fort#%eiht (0A) hours" in
which case" the# shall be entitled to an additional compensation of at least thirt# percent (3.8) of their
reular wae for work on the sixth da#. 4or purposes of this )rticle" "health personnel" shall include
resident ph#sicians" nurses" nutritionists" dietitians" pharmacists" social workers" laborator# technicians"
paramedical technicians" ps#choloists" midwi'es" attendants and all other hospital or clinic personnel.
Article 04. 4ours wored. Eours worked shall include (a) all time durin which an emplo#ee is
re$uired to be on dut# or to be at a prescribed workplace= and (b) all time durin which an emplo#ee is
suffered or permitted to work.
:est periods of short duration durin workin hours shall be counted as hours worked.
Article 0.. (eal periods. !ub(ect to such reulations as the !ecretar# of Labor ma# prescribe" it shall
be the dut# of e'er# emplo#er to i'e his emplo#ees not less than sixt# (6.) minutes time%off for their
reular meals.
Article 0/. Nig!t s!ift differential. ?'er# emplo#ee shall be paid a niht shift differential of not less
than ten percent (*.8) of his reular wae for each hour of work performed between ten o9clock in the
e'enin and six o9clock in the mornin.
Article 07. &vertime wor. >ork ma# be performed be#ond eiht (A) hours a da# pro'ided that the
emplo#ee is paid for the o'ertime work" an additional compensation e$ui'alent to his reular wae plus
at least twent#%fi'e percent (5+8) thereof. >ork performed be#ond eiht hours on a holida# or rest da#
shall be paid an additional compensation e$ui'alent to the rate of the first eiht hours on a holida# or
rest da# plus at least thirt# percent (3.8) thereof.
Article 00. 5ndertime not offset by overtime. Bndertime work on an# particular da# shall not be offset
b# o'ertime work on an# other da#. Permission i'en to the emplo#ee to o on lea'e on some other da#
of the week shall not exempt the emplo#er from pa#in the additional compensation re$uired in this
Chapter.
Article 09. #mergency overtime wor. )n# emplo#ee ma# be re$uired b# the emplo#er to perform
o'ertime work in an# of the followin cases<
>hen the countr# is at war or when an# other national or local emerenc# has been declared b# the
,ational )ssembl# or the Chief ?xecuti'e=
>hen it is necessar# to pre'ent loss of life or propert# or in case of imminent daner to public safet#
due to an actual or impendin emerenc# in the localit# caused b# serious accidents" fire" flood"
t#phoon" earth$uake" epidemic" or other disaster or calamit#=
>hen there is urent work to be performed on machines" installations" or e$uipment" in order to a'oid
serious loss or damae to the emplo#er or some other cause of similar nature=
>hen the work is necessar# to pre'ent loss or damae to perishable oods= and
>here the completion or continuation of the work started before the eihth hour is necessar# to pre'ent
serious obstruction or pre(udice to the business or operations of the emplo#er.
)n# emplo#ee re$uired to render o'ertime work under this )rticle shall be paid the additional
compensation re$uired in this Chapter.
Article 91. Computation of additional compensation. 4or purposes of computin o'ertime and other
additional remuneration as re$uired b# this Chapter" the "reular wae" of an emplo#ee shall include
the cash wae onl#" without deduction on account of facilities pro'ided b# the emplo#er.
C+a,ter II
(EE2"& REST PERI$DS
Article 91. Rig!t to weely rest day.
1t shall be the dut# of e'er# emplo#er" whether operatin for profit or not" to pro'ide each of his
emplo#ees a rest period of not less than twent#%four (50) consecuti'e hours after e'er# six (6)
consecuti'e normal work da#s.
The emplo#er shall determine and schedule the weekl# rest da# of his emplo#ees sub(ect to collecti'e
barainin areement and to such rules and reulations as the !ecretar# of Labor and ?mplo#ment ma#
pro'ide. Eowe'er" the emplo#er shall respect the preference of emplo#ees as to their weekl# rest da#
when such preference is based on reliious rounds.
Article 92. 3!en employer may re+uire wor on a rest day. The emplo#er ma# re$uire his emplo#ees
to work on an# da#<
1n case of actual or impendin emerencies caused b# serious accident" fire" flood" t#phoon"
earth$uake" epidemic or other disaster or calamit# to pre'ent loss of life and propert#" or imminent
daner to public safet#=
1n cases of urent work to be performed on the machiner#" e$uipment" or installation" to a'oid serious
loss which the emplo#er would otherwise suffer=
1n the e'ent of abnormal pressure of work due to special circumstances" where the emplo#er cannot
ordinaril# be expected to resort to other measures=
To pre'ent loss or damae to perishable oods=
>here the nature of the work re$uires continuous operations and the stoppae of work ma# result in
irreparable in(ur# or loss to the emplo#er= and
Bnder other circumstances analoous or similar to the foreoin as determined b# the !ecretar# of
Labor and ?mplo#ment.
Article 9-. Compensation for rest day0 Sunday or !oliday wor.
>here an emplo#ee is made or permitted to work on his scheduled rest da#" he shall be paid an
additional compensation of at least thirt# percent (3.8) of his reular wae. )n emplo#ee shall be
entitled to such additional compensation for work performed on !unda# onl# when it is his established
rest da#.
>hen the nature of the work of the emplo#ee is such that he has no reular workda#s and no reular
rest da#s can be scheduled" he shall be paid an additional compensation of at least thirt# percent (3.8)
of his reular wae for work performed on !unda#s and holida#s.
>ork performed on an# special holida# shall be paid an additional compensation of at least thirt#
percent (3.8) of the reular wae of the emplo#ee. >here such holida# work falls on the emplo#ee9s
scheduled rest da#" he shall be entitled to an additional compensation of at least fift# per cent (+.8) of
his reular wae.
>here the collecti'e barainin areement or other applicable emplo#ment contract stipulates the
pa#ment of a hiher premium pa# than that prescribed under this )rticle" the emplo#er shall pa# such
hiher rate.
C+a,ter III
%$"IDA&S, SER'ICE INCENTI'E "EA'ES AND SER'ICE C%AR!ES
Article 94. Rig!t to !oliday pay.
?'er# worker shall be paid his reular dail# wae durin reular holida#s" except in retail and ser'ice
establishments reularl# emplo#in less than ten (*.) workers=
The emplo#er ma# re$uire an emplo#ee to work on an# holida# but such emplo#ee shall be paid a
compensation e$ui'alent to twice his reular rate= and
)s used in this )rticle" "holida#" includes< ,ew Dear9s Da#" @aund# Thursda#" ;ood 4rida#" the ninth
of )pril" the first of @a#" the twelfth of Fune" the fourth of Ful#" the thirtieth of ,o'ember" the twent#%
fifth and thirtieth of December and the da# desinated b# law for holdin a eneral election.
Article 9.. Rig!t to service incentive leave.
?'er# emplo#ee who has rendered at least one #ear of ser'ice shall be entitled to a #earl# ser'ice
incenti'e lea'e of fi'e da#s with pa#.
This pro'ision shall not appl# to those who are alread# en(o#in the benefit herein pro'ided" those
en(o#in 'acation lea'e with pa# of at least fi'e da#s and those emplo#ed in establishments reularl#
emplo#in less than ten emplo#ees or in establishments exempted from rantin this benefit b# the
!ecretar# of Labor and ?mplo#ment after considerin the 'iabilit# or financial condition of such
establishment.
The rant of benefit in excess of that pro'ided herein shall not be made a sub(ect of arbitration or an#
court or administrati'e action.
Article 9/. Service c!arges. )ll ser'ice chares collected b# hotels" restaurants and similar
establishments shall be distributed at the rate of eiht#%fi'e percent (A+8) for all co'ered emplo#ees
and fifteen percent (*+8) for manaement. The share of the emplo#ees shall be e$uall# distributed
amon them. 1n case the ser'ice chare is abolished" the share of the co'ered emplo#ees shall be
considered interated in their waes.
Title II
(A!ES
C+a,ter I
PRE"IMINAR& MATTERS
Article 97. Definitions. )s used in this Title<
"Person" means an indi'idual" partnership" association" corporation" business trust" leal
representati'es" or an# orani&ed roup of persons.
"?mplo#er" includes an# person actin directl# or indirectl# in the interest of an emplo#er in relation to
an emplo#ee and shall include the o'ernment and all its branches" subdi'isions and instrumentalities"
all o'ernment%owned or controlled corporations and institutions" as well as non%profit pri'ate
institutions" or orani&ations.
"?mplo#ee" includes an# indi'idual emplo#ed b# an emplo#er.
")riculture" includes farmin in all its branches and" amon other thins" includes culti'ation and
tillae of soil" dair#in" the production" culti'ation" rowin and har'estin of an# aricultural and
horticultural commodities" the raisin of li'estock or poultr#" and an# practices performed b# a farmer
on a farm as an incident to or in con(unction with such farmin operations" but does not include the
manufacturin or processin of suar" coconuts" abaca" tobacco" pineapples or other farm products.
"?mplo#" includes to suffer or permit to work.
">ae" paid to an# emplo#ee shall mean the remuneration or earnins" howe'er desinated" capable of
bein expressed in terms of mone#" whether fixed or ascertained on a time" task" piece" or commission
basis" or other method of calculatin the same" which is pa#able b# an emplo#er to an emplo#ee under
a written or unwritten contract of emplo#ment for work done or to be done" or for ser'ices rendered or
to be rendered and includes the fair and reasonable 'alue" as determined b# the !ecretar# of Labor and
?mplo#ment" of board" lodin" or other facilities customaril# furnished b# the emplo#er to the
emplo#ee. "4air and reasonable 'alue" shall not include an# profit to the emplo#er" or to an# person
affiliated with the emplo#er.
Article 90. Application of Title. This Title shall not appl# to farm tenanc# or leasehold" domestic
ser'ice and persons workin in their respecti'e homes in needle work or in an# cottae industr# dul#
reistered in accordance with law.
C+a,ter II
MINIMM (A!E RATES
Article 99. Regional minimum wages. The minimum wae rates for aricultural and non%aricultural
emplo#ees and workers in each and e'er# reion of the countr# shall be those prescribed b# the
:eional Tripartite >aes and Producti'it# 2oards. ()s amended b# !ection 3" :epublic )ct ,o. 6-5-"
Fune /" */A/).
Article 111. %ro!ibition against elimination or diminution of benefits. ,othin in this 2ook shall be
construed to eliminate or in an# wa# diminish supplements" or other emplo#ee benefits bein en(o#ed
at the time of promulation of this Code.
Article 111. %ayment by results.
The !ecretar# of Labor and ?mplo#ment shall reulate the pa#ment of waes b# results" includin
pak#ao" piecework" and other non%time work" in order to ensure the pa#ment of fair and reasonable
wae rates" preferabl# throuh time and motion studies or in consultation with representati'es of
workers9 and emplo#ers9 orani&ations.
C+a,ter III
PA&MENT $) (A!ES
Article 112. 'orms of payment. ,o emplo#er shall pa# the waes of an emplo#ee b# means of
promissor# notes" 'ouchers" coupons" tokens" tickets" chits" or an# ob(ect other than leal tender" e'en
when expressl# re$uested b# the emplo#ee.
Pa#ment of waes b# check or mone# order shall be allowed when such manner of pa#ment is
customar# on the date of effecti'it# of this Code" or is necessar# because of special circumstances as
specified in appropriate reulations to be issued b# the !ecretar# of Labor and ?mplo#ment or as
stipulated in a collecti'e barainin areement.
Article 11-. Time of payment. >aes shall be paid at least once e'er# two (5) weeks or twice a month
at inter'als not exceedin sixteen (*6) da#s. 1f on account of force ma(eure or circumstances be#ond
the emplo#er9s control" pa#ment of waes on or within the time herein pro'ided cannot be made" the
emplo#er shall pa# the waes immediatel# after such force ma(eure or circumstances ha'e ceased. ,o
emplo#er shall make pa#ment with less fre$uenc# than once a month.
The pa#ment of waes of emplo#ees enaed to perform a task which cannot be completed in two (5)
weeks shall be sub(ect to the followin conditions" in the absence of a collecti'e barainin areement
or arbitration award<
That pa#ments are made at inter'als not exceedin sixteen (*6) da#s" in proportion to the amount of
work completed=
That final settlement is made upon completion of the work.
Article 114. %lace of payment. Pa#ment of waes shall be made at or near the place of undertakin"
except as otherwise pro'ided b# such reulations as the !ecretar# of Labor and ?mplo#ment ma#
prescribe under conditions to ensure reater protection of waes.
Article 11.. Direct payment of wages. >aes shall be paid directl# to the workers to whom the# are
due" except<
1n cases of force ma(eure renderin such pa#ment impossible or under other special circumstances to
be determined b# the !ecretar# of Labor and ?mplo#ment in appropriate reulations" in which case" the
worker ma# be paid throuh another person under written authorit# i'en b# the worker for the
purpose= or
>here the worker has died" in which case" the emplo#er ma# pa# the waes of the deceased worker to
the heirs of the latter without the necessit# of intestate proceedins. The claimants" if the# are all of
ae" shall execute an affida'it attestin to their relationship to the deceased and the fact that the# are his
heirs" to the exclusion of all other persons. 1f an# of the heirs is a minor" the affida'it shall be executed
on his behalf b# his natural uardian or next%of%kin. The affida'it shall be presented to the emplo#er
who shall make pa#ment throuh the !ecretar# of Labor and ?mplo#ment or his representati'e. The
representati'e of the !ecretar# of Labor and ?mplo#ment shall act as referee in di'idin the amount
paid amon the heirs. The pa#ment of waes under this )rticle shall absol'e the emplo#er of an#
further liabilit# with respect to the amount paid.
Article 11/. Contractor or subcontractor. >hene'er an emplo#er enters into a contract with another
person for the performance of the former9s work" the emplo#ees of the contractor and of the latter9s
subcontractor" if an#" shall be paid in accordance with the pro'isions of this Code.
1n the e'ent that the contractor or subcontractor fails to pa# the waes of his emplo#ees in accordance
with this Code" the emplo#er shall be (ointl# and se'erall# liable with his contractor or subcontractor to
such emplo#ees to the extent of the work performed under the contract" in the same manner and extent
that he is liable to emplo#ees directl# emplo#ed b# him.
The !ecretar# of Labor and ?mplo#ment ma#" b# appropriate reulations" restrict or prohibit the
contractin%out of labor to protect the rihts of workers established under this Code. 1n so prohibitin
or restrictin" he ma# make appropriate distinctions between labor%onl# contractin and (ob contractin
as well as differentiations within these t#pes of contractin and determine who amon the parties
in'ol'ed shall be considered the emplo#er for purposes of this Code" to pre'ent an# 'iolation or
circum'ention of an# pro'ision of this Code.
There is "labor%onl#" contractin where the person suppl#in workers to an emplo#er does not ha'e
substantial capital or in'estment in the form of tools" e$uipment" machineries" work premises" amon
others" and the workers recruited and placed b# such person are performin acti'ities which are directl#
related to the principal business of such emplo#er. 1n such cases" the person or intermediar# shall be
considered merel# as an aent of the emplo#er who shall be responsible to the workers in the same
manner and extent as if the latter were directl# emplo#ed b# him.
Article 117. "ndirect employer. The pro'isions of the immediatel# precedin article shall likewise
appl# to an# person" partnership" association or corporation which" not bein an emplo#er" contracts
with an independent contractor for the performance of an# work" task" (ob or pro(ect.
Article 110. %osting of bond. )n emplo#er or indirect emplo#er ma# re$uire the contractor or
subcontractor to furnish a bond e$ual to the cost of labor under contract" on condition that the bond will
answer for the waes due the emplo#ees should the contractor or subcontractor" as the case ma# be" fail
to pa# the same.
Article 119. Solidary liability. The pro'isions of existin laws to the contrar# notwithstandin" e'er#
emplo#er or indirect emplo#er shall be held responsible with his contractor or subcontractor for an#
'iolation of an# pro'ision of this Code. 4or purposes of determinin the extent of their ci'il liabilit#
under this Chapter" the# shall be considered as direct emplo#ers.
Article 111. 3orer preference in case of banruptcy. 1n the e'ent of bankruptc# or li$uidation of an
emplo#er9s business" his workers shall en(o# first preference as reards their waes and other monetar#
claims" an# pro'isions of law to the contrar# notwithstandin. !uch unpaid waes and monetar# claims
shall be paid in full before claims of the o'ernment and other creditors ma# be paid. ()s amended b#
!ection *" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 111. Attorney6s fees.
1n cases of unlawful withholdin of waes" the culpable part# ma# be assessed attorne#9s fees
e$ui'alent to ten percent of the amount of waes reco'ered.
1t shall be unlawful for an# person to demand or accept" in an# (udicial or administrati'e proceedins
for the reco'er# of waes" attorne#9s fees which exceed ten percent of the amount of waes reco'ered.
C+a,ter I'
PR$%I#ITI$NS RE!ARDIN! (A!ES
Article 112. Non-interference in disposal of wages. ,o emplo#er shall limit or otherwise interfere with
the freedom of an# emplo#ee to dispose of his waes. Ee shall not in an# manner force" compel" or
oblie his emplo#ees to purchase merchandise" commodities or other propert# from an# other person"
or otherwise make use of an# store or ser'ices of such emplo#er or an# other person.
Article 11-. 3age deduction. ,o emplo#er" in his own behalf or in behalf of an# person" shall make
an# deduction from the waes of his emplo#ees" except<
1n cases where the worker is insured with his consent b# the emplo#er" and the deduction is to
recompense the emplo#er for the amount paid b# him as premium on the insurance=
4or union dues" in cases where the riht of the worker or his union to check%off has been reconi&ed b#
the emplo#er or authori&ed in writin b# the indi'idual worker concerned= and
1n cases where the emplo#er is authori&ed b# law or reulations issued b# the !ecretar# of Labor and
?mplo#ment.
Article 114. Deposits for loss or damage. ,o emplo#er shall re$uire his worker to make deposits from
which deductions shall be made for the reimbursement of loss of or damae to tools" materials" or
e$uipment supplied b# the emplo#er" except when the emplo#er is enaed in such trades" occupations
or business where the practice of makin deductions or re$uirin deposits is a reconi&ed one" or is
necessar# or desirable as determined b# the !ecretar# of Labor and ?mplo#ment in appropriate rules
and reulations.
Article 11.. 2imitations. ,o deduction from the deposits of an emplo#ee for the actual amount of the
loss or damae shall be made unless the emplo#ee has been heard thereon" and his responsibilit# has
been clearl# shown.
Article 11/. 3it!!olding of wages and icbacs pro!ibited. 1t shall be unlawful for an# person"
directl# or indirectl#" to withhold an# amount from the waes of a worker or induce him to i'e up an#
part of his waes b# force" stealth" intimidation" threat or b# an# other means whatsoe'er without the
worker9s consent.
Article 117. Deduction to ensure employment. 1t shall be unlawful to make an# deduction from the
waes of an# emplo#ee for the benefit of the emplo#er or his representati'e or intermediar# as
consideration of a promise of emplo#ment or retention in emplo#ment.
Article 110. Retaliatory measures. 1t shall be unlawful for an emplo#er to refuse to pa# or reduce the
waes and benefits" dischare or in an# manner discriminate aainst an# emplo#ee who has filed an#
complaint or instituted an# proceedin under this Title or has testified or is about to testif# in such
proceedins.
Article 119. 'alse reporting. 1t shall be unlawful for an# person to make an# statement" report" or
record filed or kept pursuant to the pro'isions of this Code knowin such statement" report or record to
be false in an# material respect.
C+a,ter '
(A!E STDIES, (A!E A!REEMENTS AND (A!E DETERMINATI$N
Article 121. Creation of National 3ages and %roductivity Commission. There is hereb# created a
,ational >aes and Producti'it# Commission" hereinafter referred to as the Commission" which shall
be attached to the Department of Labor and ?mplo#ment (D7L?) for polic# and proram coordination.
()s amended b# :epublic )ct ,o. 6-5-" Fune /" */A/).
Article 121. %owers and functions of t!e Commission. The Commission shall ha'e the followin
powers and functions<
To act as the national consultati'e and ad'isor# bod# to the President of the Philippines and Conress
on matters relatin to waes" incomes and producti'it#=
To formulate policies and uidelines on waes" incomes and producti'it# impro'ement at the
enterprise" industr# and national le'els=
To prescribe rules and uidelines for the determination of appropriate minimum wae and producti'it#
measures at the reional" pro'incial" or industr# le'els=
To re'iew reional wae le'els set b# the :eional Tripartite >aes and Producti'it# 2oards to
determine if these are in accordance with prescribed uidelines and national de'elopment plans=
To undertake studies" researches and sur'e#s necessar# for the attainment of its functions and
ob(ecti'es" and to collect and compile data and periodicall# disseminate information on waes and
producti'it# and other related information" includin" but not limited to" emplo#ment" cost%of%li'in"
labor costs" in'estments and returns=
To re'iew plans and prorams of the :eional Tripartite >aes and Producti'it# 2oards to determine
whether these are consistent with national de'elopment plans=
To exercise technical and administrati'e super'ision o'er the :eional Tripartite >aes and
Producti'it# 2oards=
To call" from time to time" a national tripartite conference of representati'es of o'ernment" workers
and emplo#ers for the consideration of measures to promote wae rationali&ation and producti'it#= and
To exercise such powers and functions as ma# be necessar# to implement this )ct.
The Commission shall be composed of the !ecretar# of Labor and ?mplo#ment as ex%officio chairman"
the Director%;eneral of the ,ational ?conomic and De'elopment )uthorit# (,?D)) as ex%officio 'ice%
chairman" and two (5) members each from workers9 and emplo#ers9 sectors who shall be appointed b#
the President of the Philippines upon recommendation of the !ecretar# of Labor and ?mplo#ment to be
made on the basis of the list of nominees submitted b# the workers9 and emplo#ers9 sectors"
respecti'el#" and who shall ser'e for a term of fi'e (+) #ears. The ?xecuti'e Director of the
Commission shall also be a member of the Commission.
The Commission shall be assisted b# a !ecretariat to be headed b# an ?xecuti'e Director and two (5)
Deput# Directors" who shall be appointed b# the President of the Philippines" upon the
recommendation of the !ecretar# of Labor and ?mplo#ment.
The ?xecuti'e Director shall ha'e the same rank" salar#" benefits and other emoluments as that of a
Department )ssistant !ecretar#" while the Deput# Directors shall ha'e the same rank" salar#" benefits
and other emoluments as that of a 2ureau Director. The members of the Commission representin labor
and manaement shall ha'e the same rank" emoluments" allowances and other benefits as those
prescribed b# law for labor and manaement representati'es in the ?mplo#ees9 Compensation
Commission. ()s amended b# :epublic )ct ,o. 6-5-" Fune /" */A/)
Article 122. Creation of Regional Tripartite 3ages and %roductivity $oards. There is hereb# created
:eional Tripartite >aes and Producti'it# 2oards" hereinafter referred to as :eional 2oards" in all
reions" includin autonomous reions as ma# be established b# law. The Commission shall determine
the offices6head$uarters of the respecti'e :eional 2oards.
The :eional 2oards shall ha'e the followin powers and functions in their respecti'e territorial
(urisdictions<
To de'elop plans" prorams and pro(ects relati'e to waes" incomes and producti'it# impro'ement for
their respecti'e reions=
To determine and fix minimum wae rates applicable in their reions" pro'inces or industries therein
and to issue the correspondin wae orders" sub(ect to uidelines issued b# the Commission=
To undertake studies" researches" and sur'e#s necessar# for the attainment of their functions" ob(ecti'es
and prorams" and to collect and compile data on waes" incomes" producti'it# and other related
information and periodicall# disseminate the same=
To coordinate with the other :eional 2oards as ma# be necessar# to attain the polic# and intention of
this Code=
To recei'e" process and act on applications for exemption from prescribed wae rates as ma# be
pro'ided b# law or an# >ae 7rder= and
To exercise such other powers and functions as ma# be necessar# to carr# out their mandate under this
Code.
1mplementation of the plans" prorams" and pro(ects of the :eional 2oards referred to in the second
pararaph" letter (a) of this )rticle" shall be throuh the respecti'e reional offices of the Department of
Labor and ?mplo#ment within their territorial (urisdiction= Pro'ided" howe'er" That the :eional
2oards shall ha'e technical super'ision o'er the reional office of the Department of Labor and
?mplo#ment with respect to the implementation of said plans" prorams and pro(ects.
?ach :eional 2oard shall be composed of the :eional Director of the Department of Labor and
?mplo#ment as chairman" the :eional Directors of the ,ational ?conomic and De'elopment
)uthorit# and the Department of Trade and 1ndustr# as 'ice%chairmen and two (5) members each from
workers9 and emplo#ers9 sectors who shall be appointed b# the President of the Philippines" upon the
recommendation of the !ecretar# of Labor and ?mplo#ment" to be made on the basis of the list of
nominees submitted b# the workers9 and emplo#ers9 sectors" respecti'el#" and who shall ser'e for a
term of fi'e (+) #ears.
?ach :eional 2oard to be headed b# its chairman shall be assisted b# a !ecretariat. ()s amended b#
:epublic )ct ,o. 6-5-" Fune /" */A/)
Article 12-. 3age &rder. >hene'er conditions in the reion so warrant" the :eional 2oard shall
in'estiate and stud# all pertinent facts= and based on the standards and criteria herein prescribed" shall
proceed to determine whether a >ae 7rder should be issued. )n# such >ae 7rder shall take effect
after fifteen (*+) da#s from its complete publication in at least one (*) newspaper of eneral circulation
in the reion.
1n the performance of its wae%determinin functions" the :eional 2oard shall conduct public
hearins6consultations" i'in notices to emplo#ees9 and emplo#ers9 roups" pro'incial" cit# and
municipal officials and other interested parties.
)n# part# arie'ed b# the >ae 7rder issued b# the :eional 2oard ma# appeal such order to the
Commission within ten (*.) calendar da#s from the publication of such order. 1t shall be mandator# for
the Commission to decide such appeal within sixt# (6.) calendar da#s from the filin thereof.
The filin of the appeal does not sta# the order unless the person appealin such order shall file with
the Commission" an undertakin with a suret# or sureties satisfactor# to the Commission for the
pa#ment to the emplo#ees affected b# the order of the correspondin increase" in the e'ent such order
is affirmed. ()s amended b# :epublic )ct ,o. 6-5-" Fune /" */A/)
Article 124. Standards,Criteria for minimum wage fi)ing. The reional minimum waes to be
established b# the :eional 2oard shall be as nearl# ade$uate as is economicall# feasible to maintain
the minimum standards of li'in necessar# for the health" efficienc# and eneral well%bein of the
emplo#ees within the framework of the national economic and social de'elopment proram. 1n the
determination of such reional minimum waes" the :eional 2oard shall" amon other rele'ant
factors" consider the followin<
The demand for li'in waes=
>ae ad(ustment 'is%G%'is the consumer price index=
The cost of li'in and chanes or increases therein=
The needs of workers and their families=
The need to induce industries to in'est in the countr#side=
1mpro'ements in standards of li'in=
The pre'ailin wae le'els=
4air return of the capital in'ested and capacit# to pa# of emplo#ers=
?ffects on emplo#ment eneration and famil# income= and
The e$uitable distribution of income and wealth alon the imperati'es of economic and social
de'elopment.
The waes prescribed in accordance with the pro'isions of this Title shall be the standard pre'ailin
minimum waes in e'er# reion. These waes shall include waes 'ar#in with industries" pro'inces
or localities if in the (udment of the :eional 2oard" conditions make such local differentiation proper
and necessar# to effectuate the purpose of this Title.
)n# person" compan#" corporation" partnership or an# other entit# enaed in business shall file and
reister annuall# with the appropriate :eional 2oard" Commission and the ,ational !tatistics 7ffice"
an itemi&ed listin of their labor component" specif#in the names of their workers and emplo#ees
below the manaerial le'el" includin learners" apprentices and disabled6handicapped workers who
were hired under the terms prescribed in the emplo#ment contracts" and their correspondin salaries
and waes.
>here the application of an# prescribed wae increase b# 'irtue of a law or wae order issued b# an#
:eional 2oard results in distortions of the wae structure within an establishment" the emplo#er and
the union shall neotiate to correct the distortions. )n# dispute arisin from wae distortions shall be
resol'ed throuh the rie'ance procedure under their collecti'e barainin areement and" if it remains
unresol'ed" throuh 'oluntar# arbitration. Bnless otherwise areed b# the parties in writin" such
dispute shall be decided b# the 'oluntar# arbitrators within ten (*.) calendar da#s from the time said
dispute was referred to 'oluntar# arbitration.
1n cases where there are no collecti'e areements or reconi&ed labor unions" the emplo#ers and
workers shall endea'or to correct such distortions. )n# dispute arisin therefrom shall be settled
throuh the ,ational Conciliation and @ediation 2oard and" if it remains unresol'ed after ten (*.)
calendar da#s of conciliation" shall be referred to the appropriate branch of the ,ational Labor
:elations Commission (,L:C). 1t shall be mandator# for the ,L:C to conduct continuous hearins
and decide the dispute within twent# (5.) calendar da#s from the time said dispute is submitted for
compulsor# arbitration.
The pendenc# of a dispute arisin from a wae distortion shall not in an# wa# dela# the applicabilit# of
an# increase in prescribed wae rates pursuant to the pro'isions of law or wae order.
)s used herein" a wae distortion shall mean a situation where an increase in prescribed wae rates
results in the elimination or se'ere contraction of intentional $uantitati'e differences in wae or salar#
rates between and amon emplo#ee roups in an establishment as to effecti'el# obliterate the
distinctions embodied in such wae structure based on skills" lenth of ser'ice" or other loical bases of
differentiation.
)ll workers paid b# result" includin those who are paid on piecework" taka#" pak#aw or task basis"
shall recei'e not less than the prescribed wae rates per eiht (A) hours of work a da#" or a proportion
thereof for workin less than eiht (A) hours.
)ll reconi&ed learnership and apprenticeship areements shall be considered automaticall# modified
insofar as their wae clauses are concerned to reflect the prescribed wae rates. ()s amended b#
:epublic )ct ,o. 6-5-" Fune /" */A/)
Article 12.. 'reedom to bargain. ,o wae order shall be construed to pre'ent workers in particular
firms or enterprises or industries from barainin for hiher waes with their respecti'e emplo#ers. ()s
amended b# :epublic )ct ,o. 6-5-" Fune /" */A/)
Article 12/. %ro!ibition against injunction. ,o preliminar# or permanent in(unction or temporar#
restrainin order ma# be issued b# an# court" tribunal or other entit# aainst an# proceedins before the
Commission or the :eional 2oards. ()s amended b# :epublic )ct ,o. 6-5-" Fune /" */A/)
Article 127. Non-diminution of benefits. ,o wae order issued b# an# reional board shall pro'ide for
wae rates lower than the statutor# minimum wae rates prescribed b# Conress. ()s amended b#
:epublic )ct ,o. 6-5-" Fune /" */A/)
C+a,ter 'I
ADMINISTRATI$N AND EN)$RCEMENT
Article 120. -isitorial and enforcement power.
The !ecretar# of Labor and ?mplo#ment or his dul# authori&ed representati'es" includin labor
reulation officers" shall ha'e access to emplo#er9s records and premises at an# time of the da# or niht
whene'er work is bein undertaken therein" and the riht to cop# therefrom" to $uestion an# emplo#ee
and in'estiate an# fact" condition or matter which ma# be necessar# to determine 'iolations or which
ma# aid in the enforcement of this Code and of an# labor law" wae order or rules and reulations
issued pursuant thereto.
,otwithstandin the pro'isions of )rticles *5/ and 5*- of this Code to the contrar#" and in cases where
the relationship of emplo#er%emplo#ee still exists" the !ecretar# of Labor and ?mplo#ment or his dul#
authori&ed representati'es shall ha'e the power to issue compliance orders to i'e effect to the labor
standards pro'isions of this Code and other labor leislation based on the findins of labor emplo#ment
and enforcement officers or industrial safet# enineers made in the course of inspection. The !ecretar#
or his dul# authori&ed representati'es shall issue writs of execution to the appropriate authorit# for the
enforcement of their orders" except in cases where the emplo#er contests the findins of the labor
emplo#ment and enforcement officer and raises issues supported b# documentar# proofs which were
not considered in the course of inspection. ()s amended b# :epublic )ct ,o. --3." Fune 5" *//0).
)n order issued b# the dul# authori&ed representati'e of the !ecretar# of Labor and ?mplo#ment under
this )rticle ma# be appealed to the latter. 1n case said order in'ol'es a monetar# award" an appeal b#
the emplo#er ma# be perfected onl# upon the postin of a cash or suret# bond issued b# a reputable
bondin compan# dul# accredited b# the !ecretar# of Labor and ?mplo#ment in the amount e$ui'alent
to the monetar# award in the order appealed from. ()s amended b# :epublic )ct ,o. --3." Fune 5"
*//0)
The !ecretar# of Labor and ?mplo#ment ma# likewise order stoppae of work or suspension of
operations of an# unit or department of an establishment when non%compliance with the law or
implementin rules and reulations poses ra'e and imminent daner to the health and safet# of
workers in the workplace. >ithin twent#%four hours" a hearin shall be conducted to determine whether
an order for the stoppae of work or suspension of operations shall be lifted or not. 1n case the 'iolation
is attributable to the fault of the emplo#er" he shall pa# the emplo#ees concerned their salaries or waes
durin the period of such stoppae of work or suspension of operation.
1t shall be unlawful for an# person or entit# to obstruct" impede" dela# or otherwise render ineffecti'e
the orders of the !ecretar# of Labor and ?mplo#ment or his dul# authori&ed representati'es issued
pursuant to the authorit# ranted under this )rticle" and no inferior court or entit# shall issue temporar#
or permanent in(unction or restrainin order or otherwise assume (urisdiction o'er an# case in'ol'in
the enforcement orders issued in accordance with this )rticle.
)n# o'ernment emplo#ee found uilt# of 'iolation of" or abuse of authorit#" under this )rticle shall"
after appropriate administrati'e in'estiation" be sub(ect to summar# dismissal from the ser'ice.
The !ecretar# of Labor and ?mplo#ment ma#" b# appropriate reulations" re$uire emplo#ers to keep
and maintain such emplo#ment records as ma# be necessar# in aid of his 'isitorial and enforcement
powers under this Code.
Article 129. Recovery of wages0 simple money claims and ot!er benefits. Bpon complaint of an#
interested part#" the :eional Director of the Department of Labor and ?mplo#ment or an# of the dul#
authori&ed hearin officers of the Department is empowered" throuh summar# proceedin and after
due notice" to hear and decide an# matter in'ol'in the reco'er# of waes and other monetar# claims
and benefits" includin leal interest" owin to an emplo#ee or person emplo#ed in domestic or
household ser'ice or househelper under this Code" arisin from emplo#er%emplo#ee relations<
Pro'ided" That such complaint does not include a claim for reinstatement< Pro'ided further" That the
areate mone# claims of each emplo#ee or househelper does not exceed 4i'e thousand pesos
(P+"......). The :eional Director or hearin officer shall decide or resol'e the complaint within
thirt# (3.) calendar da#s from the date of the filin of the same. )n# sum thus reco'ered on behalf of
an# emplo#ee or househelper pursuant to this )rticle shall be held in a special deposit account b#" and
shall be paid on order of" the !ecretar# of Labor and ?mplo#ment or the :eional Director directl# to
the emplo#ee or househelper concerned. )n# such sum not paid to the emplo#ee or househelper
because he cannot be located after dilient and reasonable effort to locate him within a period of three
(3) #ears" shall be held as a special fund of the Department of Labor and ?mplo#ment to be used
exclusi'el# for the amelioration and benefit of workers.
)n# decision or resolution of the :eional Director or hearin officer pursuant to this pro'ision ma# be
appealed on the same rounds pro'ided in )rticle 553 of this Code" within fi'e (+) calendar da#s from
receipt of a cop# of said decision or resolution" to the ,ational Labor :elations Commission which
shall resol'e the appeal within ten (*.) calendar da#s from the submission of the last pleadin re$uired
or allowed under its rules.
The !ecretar# of Labor and ?mplo#ment or his dul# authori&ed representati'e ma# super'ise the
pa#ment of unpaid waes and other monetar# claims and benefits" includin leal interest" found owin
to an# emplo#ee or househelper under this Code. ()s amended b# !ection 5" :epublic )ct ,o. 6-*+"
@arch 5*" */A/)
Title III
($R2IN! C$NDITI$NS )$R
SPECIA" !R$PS $) EMP"$&EES
C+a,ter I
EMP"$&MENT $) ($MEN
Article 1-1. Nig!twor pro!ibition. ,o woman" reardless of ae" shall be emplo#ed or permitted or
suffered to work" with or without compensation<
1n an# industrial undertakin or branch thereof between ten o9clock at niht and six o9clock in the
mornin of the followin da#= or
1n an# commercial or non%industrial undertakin or branch thereof" other than aricultural" between
midniht and six o9clock in the mornin of the followin da#= or
1n an# aricultural undertakin at nihttime unless she is i'en a period of rest of not less than nine (/)
consecuti'e hours.
Article 1-1. #)ceptions. The prohibitions prescribed b# the precedin )rticle shall not appl# in an# of
the followin cases<
1n cases of actual or impendin emerencies caused b# serious accident" fire" flood" t#phoon"
earth$uake" epidemic or other disasters or calamit#" to pre'ent loss of life or propert#" or in cases of
force ma(eure or imminent daner to public safet#=
1n case of urent work to be performed on machineries" e$uipment or installation" to a'oid serious loss
which the emplo#er would otherwise suffer=
>here the work is necessar# to pre'ent serious loss of perishable oods=
>here the woman emplo#ee holds a responsible position of manaerial or technical nature" or where
the woman emplo#ee has been enaed to pro'ide health and welfare ser'ices=
>here the nature of the work re$uires the manual skill and dexterit# of women workers and the same
cannot be performed with e$ual efficienc# b# male workers=
>here the women emplo#ees are immediate members of the famil# operatin the establishment or
undertakin= and
Bnder other analoous cases exempted b# the !ecretar# of Labor and ?mplo#ment in appropriate
reulations.
Article 1-2. 'acilities for women. The !ecretar# of Labor and ?mplo#ment shall establish standards
that will ensure the safet# and health of women emplo#ees. 1n appropriate cases" he shall" b#
reulations" re$uire an# emplo#er to<
Pro'ide seats proper for women and permit them to use such seats when the# are free from work and
durin workin hours" pro'ided the# can perform their duties in this position without detriment to
efficienc#=
To establish separate toilet rooms and la'atories for men and women and pro'ide at least a dressin
room for women=
To establish a nurser# in a workplace for the benefit of the women emplo#ees therein= and
To determine appropriate minimum ae and other standards for retirement or termination in special
occupations such as those of fliht attendants and the like.
Article 1--. (aternity leave benefits.
?'er# emplo#er shall rant to an# prenant woman emplo#ee who has rendered an areate ser'ice of
at least six (6) months for the last twel'e (*5) months" maternit# lea'e of at least two (5) weeks prior to
the expected date of deli'er# and another four (0) weeks after normal deli'er# or abortion with full pa#
based on her reular or a'erae weekl# waes. The emplo#er ma# re$uire from an# woman emplo#ee
appl#in for maternit# lea'e the production of a medical certificate statin that deli'er# will probabl#
take place within two weeks.
The maternit# lea'e shall be extended without pa# on account of illness medicall# certified to arise out
of the prenanc#" deli'er#" abortion or miscarriae" which renders the woman unfit for work" unless she
has earned unused lea'e credits from which such extended lea'e ma# be chared.
The maternit# lea'e pro'ided in this )rticle shall be paid b# the emplo#er onl# for the first four (0)
deli'eries b# a woman emplo#ee after the effecti'it# of this Code.
Article 1-4. 'amily planning services/ incentives for family planning.
?stablishments which are re$uired b# law to maintain a clinic or infirmar# shall pro'ide free famil#
plannin ser'ices to their emplo#ees which shall include" but not be limited to" the application or use of
contracepti'e pills and intrauterine de'ices.
1n coordination with other aencies of the o'ernment enaed in the promotion of famil# plannin"
the Department of Labor and ?mplo#ment shall de'elop and prescribe incenti'e bonus schemes to
encourae famil# plannin amon female workers in an# establishment or enterprise.
Article 1-.. Discrimination pro!ibited. 1t shall be unlawful for an# emplo#er to discriminate aainst
an# woman emplo#ee with respect to terms and conditions of emplo#ment solel# on account of her sex.
The followin are acts of discrimination<
Pa#ment of a lesser compensation" includin wae" salar# or other form of remuneration and frine
benefits" to a female emplo#ees as aainst a male emplo#ee" for work of e$ual 'alue= and
4a'orin a male emplo#ee o'er a female emplo#ee with respect to promotion" trainin opportunities"
stud# and scholarship rants solel# on account of their sexes.
Criminal liabilit# for the willful commission of an# unlawful act as pro'ided in this )rticle or an#
'iolation of the rules and reulations issued pursuant to !ection 5 hereof shall be penali&ed as pro'ided
in )rticles 5AA and 5A/ of this Code< Pro'ided" That the institution of an# criminal action under this
pro'ision shall not bar the arie'ed emplo#ee from filin an entirel# separate and distinct action for
mone# claims" which ma# include claims for damaes and other affirmati'e reliefs. The actions hereb#
authori&ed shall proceed independentl# of each other. ()s amended b# :epublic )ct ,o. 6-5+" @a# *5"
*/A/)
Article 1-/. Stipulation against marriage. 1t shall be unlawful for an emplo#er to re$uire as a condition
of emplo#ment or continuation of emplo#ment that a woman emplo#ee shall not et married" or to
stipulate expressl# or tacitl# that upon ettin married" a woman emplo#ee shall be deemed resined or
separated" or to actuall# dismiss" dischare" discriminate or otherwise pre(udice a woman emplo#ee
merel# b# reason of her marriae.
Article 1-7. %ro!ibited acts.
1t shall be unlawful for an# emplo#er<
To den# an# woman emplo#ee the benefits pro'ided for in this Chapter or to dischare an# woman
emplo#ed b# him for the purpose of pre'entin her from en(o#in an# of the benefits pro'ided under
this Code.
To dischare such woman on account of her prenanc#" or while on lea'e or in confinement due to her
prenanc#=
To dischare or refuse the admission of such woman upon returnin to her work for fear that she ma#
aain be prenant.
Article 1-0. Classification of certain women worers. )n# woman who is permitted or suffered to
work" with or without compensation" in an# niht club" cocktail loune" massae clinic" bar or similar
establishments under the effecti'e control or super'ision of the emplo#er for a substantial period of
time as determined b# the !ecretar# of Labor and ?mplo#ment" shall be considered as an emplo#ee of
such establishment for purposes of labor and social leislation.
C+a,ter II
EMP"$&MENT $) MIN$RS
Article 1-9. (inimum employable age.
,o child below fifteen (*+) #ears of ae shall be emplo#ed" except when he works directl# under the
sole responsibilit# of his parents or uardian" and his emplo#ment does not in an# wa# interfere with
his schoolin.
)n# person between fifteen (*+) and eihteen (*A) #ears of ae ma# be emplo#ed for such number of
hours and such periods of the da# as determined b# the !ecretar# of Labor and ?mplo#ment in
appropriate reulations.
The foreoin pro'isions shall in no case allow the emplo#ment of a person below eihteen (*A) #ears
of ae in an undertakin which is ha&ardous or deleterious in nature as determined b# the !ecretar# of
Labor and ?mplo#ment.
Article 141. %ro!ibition against c!ild discrimination. ,o emplo#er shall discriminate aainst an#
person in respect to terms and conditions of emplo#ment on account of his ae.
C+a,ter III
EMP"$&MENT $) %$SE%E"PERS
Article 141. Coverage. This Chapter shall appl# to all persons renderin ser'ices in households for
compensation.
"Domestic or household ser'ice" shall mean ser'ice in the emplo#er9s home which is usuall# necessar#
or desirable for the maintenance and en(o#ment thereof and includes ministerin to the personal
comfort and con'enience of the members of the emplo#er9s household" includin ser'ices of famil#
dri'ers.
Article 142. Contract of domestic service. The oriinal contract of domestic ser'ice shall not last for
more than two (5) #ears but it ma# be renewed for such periods as ma# be areed upon b# the parties.
Article 14-. (inimum wage.
Eousehelpers shall be paid the followin minimum wae rates<
?iht hundred pesos (PA.....) a month for househelpers in @anila" Hue&on" Pasa#" and Caloocan
cities and municipalities of @akati" !an Fuan" @andalu#on" @untinlupa" ,a'otas" @alabon"
ParaIa$ue" Las PiIas" Pasi" @arikina" Calen&uela" Taui and Pateros in @etro @anila and in hihl#
urbani&ed cities=
!ix hundred fift# pesos (P6+....) a month for those in other chartered cities and first%class
municipalities= and
4i'e hundred fift# pesos (P++....) a month for those in other municipalities.
Pro'ided" That the emplo#ers shall re'iew the emplo#ment contracts of their househelpers e'er# three
(3) #ears with the end in 'iew of impro'in the terms and conditions thereof.
Pro'ided" further" That those househelpers who are recei'in at least 7ne thousand pesos (P*"......)
shall be co'ered b# the !ocial !ecurit# !#stem (!!!) and be entitled to all the benefits pro'ided
thereunder. ()s amended b# :epublic )ct ,o. -6++" )uust */" *//3)
Article 144. (inimum cas! wage. The minimum wae rates prescribed under this Chapter shall be the
basic cash waes which shall be paid to the househelpers in addition to lodin" food and medical
attendance.
Article 14.. Assignment to non-!ouse!old wor. ,o househelper shall be assined to work in a
commercial" industrial or aricultural enterprise at a wae or salar# rate lower than that pro'ided for
aricultural or non%aricultural workers as prescribed herein.
Article 14/. &pportunity for education. 1f the househelper is under the ae of eihteen (*A) #ears" the
emplo#er shall i'e him or her an opportunit# for at least elementar# education. The cost of education
shall be part of the househelper9s compensation" unless there is a stipulation to the contrar#.
Article 147. Treatment of !ouse!elpers. The emplo#er shall treat the househelper in a (ust and humane
manner. 1n no case shall ph#sical 'iolence be used upon the househelper.
Article 140. $oard0 lodging0 and medical attendance. The emplo#er shall furnish the househelper" free
of chare" suitable and sanitar# li'in $uarters as well as ade$uate food and medical attendance.
Article 149. "ndemnity for unjust termination of services. 1f the period of household ser'ice is fixed"
neither the emplo#er nor the househelper ma# terminate the contract before the expiration of the term"
except for a (ust cause. 1f the househelper is un(ustl# dismissed" he or she shall be paid the
compensation alread# earned plus that for fifteen (*+) da#s b# wa# of indemnit#.
1f the househelper lea'es without (ustifiable reason" he or she shall forfeit an# unpaid salar# due him or
her not exceedin fifteen (*+) da#s.
Article 1.1. Service of termination notice. 1f the duration of the household ser'ice is not determined
either in stipulation or b# the nature of the ser'ice" the emplo#er or the househelper ma# i'e notice to
put an end to the relationship fi'e (+) da#s before the intended termination of the ser'ice.
Article 1.1. #mployment certification. Bpon the se'erance of the household ser'ice relation" the
emplo#er shall i'e the househelper a written statement of the nature and duration of the ser'ice and
his or her efficienc# and conduct as househelper.
Article 1.2. #mployment record. The emplo#er ma# keep such records as he ma# deem necessar# to
reflect the actual terms and conditions of emplo#ment of his househelper" which the latter shall
authenticate b# sinature or thumbmark upon re$uest of the emplo#er.
C+a,ter I'
EMP"$&MENT $) %$ME($R2ERS
Article 1.-. Regulation of industrial !omeworers. The emplo#ment of industrial homeworkers and
field personnel shall be reulated b# the o'ernment throuh the appropriate reulations issued b# the
!ecretar# of Labor and ?mplo#ment to ensure the eneral welfare and protection of homeworkers and
field personnel and the industries emplo#in them.
Article 1.4. Regulations of Secretary of 2abor. The reulations or orders to be issued pursuant to this
Chapter shall be desined to assure the minimum terms and conditions of emplo#ment applicable to the
industrial homeworkers or field personnel in'ol'ed.
Article 1... Distribution of !omewor. 4or purposes of this Chapter" the "emplo#er" of homeworkers
includes an# person" natural or artificial who" for his account or benefit" or on behalf of an# person
residin outside the countr#" directl# or indirectl#" or throuh an emplo#ee" aent contractor" sub%
contractor or an# other person<
Deli'ers" or causes to be deli'ered" an# oods" articles or materials to be processed or fabricated in or
about a home and thereafter to be returned or to be disposed of or distributed in accordance with his
directions= or
!ells an# oods" articles or materials to be processed or fabricated in or about a home and then rebu#s
them after such processin or fabrication" either b# himself or throuh some other person.
#$$2 )$R
%EA"T%, SA)ET& AND S$CIA" (E")ARE #ENE)ITS
Title I
MEDICA", DENTA" AND $CCPATI$NA" SA)ET&
C+a,ter I
MEDICA" AND DENTA" SER'ICES
Article 1./. 'irst-aid treatment. ?'er# emplo#er shall keep in his establishment such first%aid
medicines and e$uipment as the nature and conditions of work ma# re$uire" in accordance with such
reulations as the Department of Labor and ?mplo#ment shall prescribe.
The emplo#er shall take steps for the trainin of a sufficient number of emplo#ees in first%aid
treatment.
Article 1.7. #mergency medical and dental services. 1t shall be the dut# of e'er# emplo#er to furnish
his emplo#ees in an# localit# with free medical and dental attendance and facilities consistin of<
The ser'ices of a full%time reistered nurse when the number of emplo#ees exceeds fift# (+.) but not
more than two hundred (5..) except when the emplo#er does not maintain ha&ardous workplaces" in
which case" the ser'ices of a raduate first%aider shall be pro'ided for the protection of workers" where
no reistered nurse is a'ailable. The !ecretar# of Labor and ?mplo#ment shall pro'ide b# appropriate
reulations" the ser'ices that shall be re$uired where the number of emplo#ees does not exceed fift#
(+.) and shall determine b# appropriate order" ha&ardous workplaces for purposes of this )rticle=
The ser'ices of a full%time reistered nurse" a part%time ph#sician and dentist" and an emerenc# clinic"
when the number of emplo#ees exceeds two hundred (5..) but not more than three hundred (3..)= and
The ser'ices of a full%time ph#sician" dentist and a full%time reistered nurse as well as a dental clinic
and an infirmar# or emerenc# hospital with one bed capacit# for e'er# one hundred (*..) emplo#ees
when the number of emplo#ees exceeds three hundred (3..).
1n cases of ha&ardous workplaces" no emplo#er shall enae the ser'ices of a ph#sician or a dentist
who cannot sta# in the premises of the establishment for at least two (5) hours" in the case of those
enaed on part%time basis" and not less than eiht (A) hours" in the case of those emplo#ed on full%time
basis. >here the undertakin is non%ha&ardous in nature" the ph#sician and dentist ma# be enaed on
retainer basis" sub(ect to such reulations as the !ecretar# of Labor and ?mplo#ment ma# prescribe to
insure immediate a'ailabilit# of medical and dental treatment and attendance in case of emerenc#. ()s
amended b# Presidential Decree ,7. +-.%)" !ection 56)
Article 1.0. 3!en emergency !ospital not re+uired. The re$uirement for an emerenc# hospital or
dental clinic shall not be applicable in case there is a hospital or dental clinic which is accessible from
the emplo#er9s establishment and he makes arranement for the reser'ation therein of the necessar#
beds and dental facilities for the use of his emplo#ees.
Article 1.9. 4ealt! program. The ph#sician enaed b# an emplo#er shall" in addition to his duties
under this Chapter" de'elop and implement a comprehensi'e occupational health proram for the
benefit of the emplo#ees of his emplo#er.
Article 1/1. 1ualifications of !ealt! personnel. The ph#sicians" dentists and nurses emplo#ed b#
emplo#ers pursuant to this Chapter shall ha'e the necessar# trainin in industrial medicine and
occupational safet# and health. The !ecretar# of Labor and ?mplo#ment" in consultation with
industrial" medical" and occupational safet# and health associations" shall establish the $ualifications"
criteria and conditions of emplo#ment of such health personnel.
Article 1/1. Assistance of employer. 1t shall be the dut# of an# emplo#er to pro'ide all the necessar#
assistance to ensure the ade$uate and immediate medical and dental attendance and treatment to an
in(ured or sick emplo#ee in case of emerenc#.
C+a,ter II
$CCPATI$NA" %EA"T% AND SA)ET&
Article 1/2. Safety and !ealt! standards. The !ecretar# of Labor and ?mplo#ment shall" b#
appropriate orders" set and enforce mandator# occupational safet# and health standards to eliminate or
reduce occupational safet# and health ha&ards in all workplaces and institute new" and update existin"
prorams to ensure safe and healthful workin conditions in all places of emplo#ment.
Article 1/-. Researc!. 1t shall be the responsibilit# of the Department of Labor and ?mplo#ment to
conduct continuin studies and research to de'elop inno'ati'e methods" techni$ues and approaches for
dealin with occupational safet# and health problems= to disco'er latent diseases b# establishin causal
connections between diseases and work in en'ironmental conditions= and to de'elop medical criteria
which will assure insofar as practicable that no emplo#ee will suffer impairment or diminution in
health" functional capacit#" or life expectanc# as a result of his work and workin conditions.
Article 1/4. Training programs. The Department of Labor and ?mplo#ment shall de'elop and
implement trainin prorams to increase the number and competence of personnel in the field of
occupational safet# and industrial health.
Article 1/.. Administration of safety and !ealt! laws.
The Department of Labor and ?mplo#ment shall be solel# responsible for the administration and
enforcement of occupational safet# and health laws" reulations and standards in all establishments and
workplaces where'er the# ma# be located= howe'er" chartered cities ma# be allowed to conduct
industrial safet# inspections of establishments within their respecti'e (urisdictions where the# ha'e
ade$uate facilities and competent personnel for the purpose as determined b# the Department of Labor
and ?mplo#ment and sub(ect to national standards established b# the latter.
The !ecretar# of Labor and ?mplo#ment ma#" throuh appropriate reulations" collect reasonable fees
for the inspection of steam boilers" pressure 'essels and pipins and electrical installations" the test and
appro'al for safe use of materials" e$uipment and other safet# de'ices and the appro'al of plans for
such materials" e$uipment and de'ices. The fee so collected shall be deposited in the national treasur#
to the credit of the occupational safet# and health fund and shall be expended exclusi'el# for the
administration and enforcement of safet# and other labor laws administered b# the Department of
Labor and ?mplo#ment.
Title II
EMP"$&EES4 C$MPENSATI$N AND STATE INSRANCE )ND
C+a,ter I
P$"IC& AND DE)INITI$NS
Article 1//. %olicy. The !tate shall promote and de'elop a tax%exempt emplo#ees9 compensation
proram whereb# emplo#ees and their dependents" in the e'ent of work%connected disabilit# or death"
ma# promptl# secure ade$uate income benefit and medical related benefits.
Article 1/7. Definition of terms. )s used in this Title" unless the context indicates otherwise<
"Code" means the Labor Code of the Philippines instituted under Presidential Decree ,umbered four
hundred fort#%two" as amended.
"Commission" means the ?mplo#ees9 Compensation Commission created under this Title.
"!!!" means the !ocial !ecurit# !#stem created under :epublic )ct ,umbered ?le'en hundred sixt#%
one" as amended.
";!1!" means the ;o'ernment !er'ice 1nsurance !#stem created under Commonwealth )ct ,umbered
7ne hundred eiht#%six" as amended.
"!#stem" means the !!! or ;!1!" as the case ma# be.
"?mplo#er" means an# person" natural or (uridical" emplo#in the ser'ices of the emplo#ee.
"?mplo#ee" means an# person compulsoril# co'ered b# the ;!1! under Commonwealth )ct
,umbered 7ne hundred eiht#%six" as amended" includin the members of the )rmed 4orces of the
Philippines" and an# person emplo#ed as casual" emerenc#" temporar#" substitute or contractual" or
an# person compulsoril# co'ered b# the !!! under :epublic )ct ,umbered ?le'en hundred sixt#%one"
as amended.
"Person" means an# indi'idual" partnership" firm" association" trust" corporation or leal representati'e
thereof.
"Dependent" means the leitimate" leitimated or leall# adopted or acknowleded natural child who is
unmarried" not ainfull# emplo#ed" and not o'er twent#%one (5*) #ears of ae or o'er twent#%one (5*)
#ears of ae pro'ided he is incapacitated and incapable of self%support due to a ph#sical or mental
defect which is conenital or ac$uired durin minorit#= the leitimate spouse li'in with the emplo#ee
and the parents of said emplo#ee wholl# dependent upon him for reular support.
"2eneficiaries" means the dependent spouse until he6she remarries and dependent children" who are the
primar# beneficiaries. 1n their absence" the dependent parents and sub(ect to the restrictions imposed on
dependent children" the illeitimate children and leitimate descendants" who are the secondar#
beneficiaries< Pro'ided" That the dependent acknowleded natural child shall be considered as a
primar# beneficiar# when there are no other dependent children who are $ualified and eliible for
monthl# income benefit.
"1n(ur#" means an# harmful chane in the human oranism from an# accident arisin out of and in the
course of the emplo#ment.
"!ickness" means an# illness definitel# accepted as an occupational disease listed b# the Commission"
or an# illness caused b# emplo#ment sub(ect to proof that the risk of contractin the same is increased
b# workin conditions. 4or this purpose" the Commission is empowered to determine and appro'e
occupational diseases and work%related illnesses that ma# be considered compensable based on peculiar
ha&ards of emplo#ment.
"Death" means loss of life resultin from in(ur# or sickness.
"Disabilit#" means loss or impairment of a ph#sical or mental function resultin from in(ur# or
sickness.
"Compensation" means all pa#ments made under this Title for income benefits and medical or related
benefits.
"1ncome benefit" means all pa#ments made under this Title to the pro'iders of medical care"
rehabilitation ser'ices and hospital care.
"@edical benefit" means all pa#ments made under this Title to the pro'iders of medical care"
rehabilitation ser'ices and hospital care.
":elated benefit" means all pa#ments made under this Title for appliances and supplies.
")ppliances" means crutches" artificial aids and other similar de'ices.
"!upplies" means medicine and other medical" dental or surical items.
"Eospital" means an# medical facilit#" o'ernment or pri'ate" authori&ed b# law" an acti'e member in
ood standin of the Philippine Eospital )ssociation and accredited b# the Commission.
"Ph#sician" means an# doctor of medicine dul# licensed to practice in the Philippines" an acti'e
member in ood standin of the Philippine @edical )ssociation and accredited b# the Commission.
">aes" or "!alar#"" insofar as the# refer to the computation of benefits defined in :epublic )ct ,o.
**6*" as amended" for !!! and Presidential Decree ,o. **06" as amended" for ;!1!" respecti'el#"
except that part in excess of Three Thousand Pesos.
"@onthl# salar# credit" means the wae or salar# base for contributions as pro'ided in :epublic )ct
,umbered ?le'en hundred sixt#%one" as amended" or the waes or salar#.
")'erae monthl# salar# credit" in the case of the !!! means the result obtained b# di'idin the sum
of the monthl# salar# credits in the sixt#%month period immediatel# followin the semester of death or
permanent disabilit# b# sixt# (6.)" except where the month of death or permanent disabilit# falls within
eihteen (*A) calendar months from the month of co'erae" in which case" it is the result obtained b#
di'idin the sum of all monthl# salar# credits paid prior to the month of continenc# b# the total
number of calendar months of co'erae in the same period.
")'erae dail# salar# credit" in the case of the !!! means the result obtained b# di'idin the sum of
the six (6) hihest monthl# salar# credits in the twel'e%month period immediatel# precedin the
semester of sickness or in(ur# b# one hundred eiht# (*A.)" except where the month of in(ur# falls
within twel'e (*5) calendar months from the first month of co'erae" in which case it is the result
obtained b# di'idin the sum of all monthl# salar# credits b# thirt# (3.) times the number of calendar
months of co'erae in the period.
1n the case of the ;!1!" the a'erae dail# salar# credit shall be the actual dail# salar# or wae" or the
monthl# salar# or wae di'ided b# the actual number of workin da#s of the month of continenc#.
"Huarter" means a period of three (3) consecuti'e months endin on the last da#s of @arch" Fune"
!eptember and December.
"!emester" means a period of two consecuti'e $uarters endin in the $uarter of death" permanent
disabilit#" in(ur# or sickness.
":eplacement ratio" % The sum of twent# percent and the $uotient obtained b# di'idin three hundred
b# the sum of three hundred fort# and the a'erae monthl# salar# credit.
"Credited #ears of ser'ice" % 4or a member co'ered prior to Fanuar#" */-+" nineteen hundred se'ent#%
fi'e minus the calendar #ear of co'erae" plus the number of calendar #ears in which six or more
contributions ha'e been paid from Fanuar#" */-+ up to the calendar #ear containin the semester prior
to the continenc#. 4or a member co'ered on or after Fanuar#" */-+" the number of calendar #ears in
which six or more contributions ha'e been paid from the #ear of co'erae up to the calendar #ear
containin the semester prior to the continenc#.
"@onthl# income benefit" means the amount e$ui'alent to one hundred fifteen percent of the sum of
the a'erae monthl# salar# credit multiplied b# the replacement ratio" and one and a half percent of the
a'erae monthl# salar# credit for each credited #ear of ser'ice in excess of ten #ears< Pro'ided" That
the monthl# income benefit shall in no case be less than two hundred fift# pesos.
C+a,ter II
C$'ERA!E AND "IA#I"IT&
Article 1/0. Compulsory coverage. Co'erae in the !tate 1nsurance 4und shall be compulsor# upon all
emplo#ers and their emplo#ees not o'er sixt# (6.) #ears of ae< Pro'ided" That an emplo#ee who is
o'er (6.) #ears of ae and pa#in contributions to $ualif# for the retirement or life insurance benefit
administered b# the !#stem shall be sub(ect to compulsor# co'erae.
Article 1/9. 'oreign employment. The Commission shall ensure ade$uate co'erae of 4ilipino
emplo#ees emplo#ed abroad" sub(ect to reulations as it ma# prescribe.
Article 171. #ffective date of coverage. Compulsor# co'erae of the emplo#er durin the effecti'it# of
this Title shall take effect on the first da# of his operation" and that of the emplo#ee" on the date of his
emplo#ment.
Article 171. Registration. ?ach emplo#er and his emplo#ees shall reister with the !#stem in
accordance with its reulations.
Article 172. 2imitation of liability. The !tate 1nsurance 4und shall be liable for compensation to the
emplo#ee or his dependents" except when the disabilit# or death was occasioned b# the emplo#ee9s
intoxication" willful intention to in(ure or kill himself or another" notorious nelience" or otherwise
pro'ided under this Title.
Article 17-. #)tent of liability. Bnless otherwise pro'ided" the liabilit# of the !tate 1nsurance 4und
under this Title shall be exclusi'e and in place of all other liabilities of the emplo#er to the emplo#ee"
his dependents or an#one otherwise entitled to recei'e damaes on behalf of the emplo#ee or his
dependents. The pa#ment of compensation under this Title shall not bar the reco'er# of benefits as
pro'ided for in !ection 6// of the :e'ised )dministrati'e Code" :epublic )ct ,umbered ?le'en
hundred sixt#%one" as amended" :epublic )ct ,umbered 4ort#%eiht hundred sixt#%four as amended"
and other laws whose benefits are administered b# the !#stem or b# other aencies of the o'ernment.
()s amended b# Presidential Decree ,o. */5*).
Article 174. 2iability of t!ird party,ies.
>hen the disabilit# or death is caused b# circumstances creatin a leal liabilit# aainst a third part#"
the disabled emplo#ee or the dependents" in case of his death" shall be paid b# the !#stem under this
Title. 1n case benefit is paid under this Title" the !#stem shall be subroated to the rihts of the disabled
emplo#ee or the dependents" in case of his death" in accordance with the eneral law.
>here the !#stem reco'ers from such third part# damaes in excess of those paid or allowed under this
Title" such excess shall be deli'ered to the disabled emplo#ee or other persons entitled thereto" after
deductin the cost of proceedins and expenses of the !#stem.
Article 17.. Deprivation of t!e benefits. ?xcept as otherwise pro'ided under this Title" no contract"
reulation or de'ice whatsoe'er shall operate to depri'e the emplo#ee or his dependents of an# part of
the income benefits and medical or related ser'ices ranted under this Title. ?xistin medical ser'ices
bein pro'ided b# the emplo#er shall be maintained and continued to be en(o#ed b# their emplo#ees.
C+a,ter III
ADMINISTRATI$N
Article 17/. #mployees6 Compensation Commission.
To initiate" rationali&e" and coordinate the policies of the emplo#ees9 compensation proram" the
?mplo#ees9 Compensation Commission is hereb# created to be composed of fi'e ex%officio members"
namel#< the !ecretar# of Labor and ?mplo#ment as Chairman" the ;!1! ;eneral @anaer" the !!!
)dministrator" the Chairman of the Philippine @edical Care Commission" and the ?xecuti'e Director
of the ?CC !ecretariat" and two appointi'e members" one of whom shall represent the emplo#ees and
the other" the emplo#ers" to be appointed b# the President of the Philippines for a term of six #ears. The
appointi'e member shall ha'e at least fi'e #ears experience in workmen9s compensation or social
securit# prorams. )ll 'acancies shall be filled for the unexpired term onl#. ()s amended b# !ection */
JcK" ?xecuti'e 7rder ,o. *56)
The Cice Chairman of the Commission shall be alternated each #ear between the ;!1! ;eneral
@anaer and the !!! )dministrator. The presence of four members shall constitute a $uorum. ?ach
member shall recei'e a per diem of two hundred pesos for e'er# meetin that is actuall# attended b#
him" exclusi'e of actual" ordinar# and necessar# tra'el and representation expenses. 1n his absence" an#
member ma# desinate an official of the institution he ser'es on full%time basis as his representati'e to
act in his behalf. ()s amended b# !ection 5" Presidential Decree ,o. *36A)
The eneral conduct of the operations and manaement functions of the ;!1! or !!! under this Title
shall be 'ested in its respecti'e chief executi'e officers" who shall be immediatel# responsible for
carr#in out the policies of the Commission.
The Commission shall ha'e the status and cateor# of a o'ernment corporation" and it is hereb#
deemed attached to the Department of Labor and ?mplo#ment for polic# coordination and uidance.
()s amended b# !ection 5" Presidential Decree ,o. *36A)
Article 177. %owers and duties. The Commission shall ha'e the followin powers and duties<
To assess and fix a rate of contribution from all emplo#ers=
To determine the rate of contribution pa#able b# an emplo#er whose records show a hih fre$uenc# of
work accidents or occupational diseases due to failure b# the said emplo#er to obser'e ade$uate safet#
measures=
To appro'e rules and reulations o'ernin the processin of claims and the settlement of disputes
arisin therefrom as prescribed b# the !#stem=
To initiate policies and prorams toward ade$uate occupational health and safet# and accident
pre'ention in the workin en'ironment" rehabilitation other than those pro'ided for under )rticle */.
hereof" and other related prorams and acti'ities" and to appropriate funds therefor= ()s amended b#
!ection 3" Presidential Decree ,o. *36A)
To make the necessar# actuarial studies and calculations concernin the rant of constant help and
income benefits for permanent disabilit# or death and the rationali&ation of the benefits for permanent
disabilit# and death under the Title with benefits pa#able b# the !#stem for similar continencies<
Pro'ided" That the Commission ma# uprade benefits and add new ones sub(ect to appro'al of the
President< and Pro'ided" further" That the actuarial stabilit# of the !tate 1nsurance 4und shall be
uaranteed< Pro'ided" finall#" That such increases in benefits shall not re$uire an# increases in
contribution" except as pro'ided for in pararaph (b) hereof= ()s amended b# !ection 3" Presidential
Decree ,o. *60*)
To appoint the personnel of its staff" sub(ect to ci'il ser'ice law and rules" but exempt from >)PC7
law and reulations=
To adopt annuall# a budet of expenditures of the Commission and its staff chareable aainst the !tate
1nsurance 4und< Pro'ided" That the !!! and ;!1! shall ad'ance on a $uarterl# basis" the remittances of
allotment of the loadin fund for the Commission9s operational expenses based on its annual budet as
dul# appro'ed b# the Department of 2udet and @anaement= ()s amended b# !ection 3" Presidential
Decree ,o. */5*)
To ha'e the power to administer oath and affirmation" and to issue subpoena and subpoena duces tecum
in connection with an# $uestion or issue arisin from appealed cases under this Title=
To sue and be sued in court=
To ac$uire propert#" real or personal" which ma# be necessar# or expedient for the attainment of the
purposes of this Title=
To enter into areements or contracts for such ser'ices and as ma# be needed for the proper" efficient
and stable administration of the proram=
To perform such other acts as it ma# deem appropriate for the attainment of the purposes of the
Commission and proper enforcement of the pro'isions of this Title. ()s amended b# !ection *A"
Presidential Decree ,o. A+.)
Article 170. (anagement of funds. )ll re'enues collected b# the !#stem under this Title shall be
deposited" in'ested" administered and disbursed in the same manner and under the same conditions"
re$uirements and safeuards as pro'ided b# :epublic )ct ,umbered ele'en hundred sixt#%one" as
amended" with reard to such other funds as are thereunder bein paid to or collected b# the !!! and
;!1!" respecti'el#< Pro'ided" That the Commission" !!! and ;!1! ma# disburse each #ear not more
than twel'e percent of the contribution and in'estment earnins collected for operational expenses"
includin occupational health and safet# prorams" incidental to the carr#in out of this Title.
Article 179. "nvestment of funds. Pro'isions of existin laws to the contrar# notwithstandin" all
re'enues as are not needed to meet current operational expenses under this Title shall be accumulated
in a fund to be known as the !tate 1nsurance 4und" which shall be used exclusi'el# for pa#ment of the
benefits under this Title" and no amount thereof shall be used for an# other purpose. )ll amounts
accruin to the !tate 1nsurance 4und" which is hereb# established in the !!! and ;!1!" respecti'el#"
shall be deposited with an# authori&ed depositor# bank appro'ed b# the Commission" or in'ested with
due and prudent reard for the li$uidit# needs of the !#stem. ()s amended b# !ection 0" Presidential
Decree ,o. *36A)
Article 101. Settlement of claims. The !#stem shall ha'e oriinal and exclusi'e (urisdiction to settle
an# dispute arisin from this Title with respect to co'erae" entitlement to benefits" collection and
pa#ment of contributions and penalties thereon" or an# other matter related thereto" sub(ect to appeal to
the Commission" which shall decide appealed cases within twent# (5.) workin da#s from the
submission of the e'idence.
Article 101. Review. Decisions" orders or resolutions of the Commission ma# be re'iewed on certiorari
b# the !upreme Court on $uestion of law upon petition of an arie'ed part# within ten (*.) da#s from
notice thereof.
Article 102. #nforcement of decisions.
)n# decision" order or resolution of the Commission shall become final and executor# if no appeal is
taken therefrom within ten (*.) da#s from notice thereof. )ll awards ranted b# the Commission in
cases appealed from decisions of the !#stem shall be effected within fifteen da#s from receipt of notice.
1n all other cases" decisions" orders and resolutions of the Commission which ha'e become final and
executor# shall be enforced and executed in the same manner as decisions of the Court of 4irst
1nstance" and the Commission shall ha'e the power to issue to the cit# or pro'incial sheriff or to the
sheriff whom it ma# appoint" such writs of execution as ma# be necessar# for the enforcement of such
decisions" orders or resolutions" and an# person who shall fail or refuse to compl# therewith shall" upon
application b# the Commission" be punished b# the proper court for contempt.
C+a,ter I'
C$NTRI#TI$NS
Article 10-. #mployers6 contributions.
Bnder such reulations as the !#stem ma# prescribe" beinnin as of the last da# of the month when an
emplo#ee9s compulsor# co'erae takes effect and e'er# month thereafter durin his emplo#ment" his
emplo#er shall prepare to remit to the !#stem a contribution e$ui'alent to one percent of his monthl#
salar# credit.
The rate of contribution shall be re'iewed periodicall# and sub(ect to the limitations herein pro'ided"
ma# be re'ised as the experience in risk" cost of administration and actual or anticipated as well as
unexpected losses" ma# re$uire.
Contributions under this Title shall be paid in their entiret# b# the emplo#er and an# contract or de'ice
for the deductions of an# portion thereof from the waes or salaries of the emplo#ees shall be null and
'oid.
>hen a co'ered emplo#ee dies" becomes disabled or is separated from emplo#ment" his emplo#er9s
obliation to pa# the monthl# contribution arisin from that emplo#ment shall cease at the end of the
month of continenc# and durin such months that he is not recei'in waes or salar#.
Article 104. 7overnment guarantee. The :epublic of the Philippines uarantees the benefits prescribed
under this Title" and accepts eneral responsibilit# for the sol'enc# of the !tate 1nsurance 4und. 1n case
of an# deficienc#" the same shall be co'ered b# supplemental appropriations from the national
o'ernment.
C+a,ter '
MEDICA" #ENE)ITS
Article 10.. (edical services. 1mmediatel# after an emplo#ee contracts sickness or sustains an in(ur#"
he shall be pro'ided b# the !#stem durin the subse$uent period of his disabilit# with such medical
ser'ices and appliances as the nature of his sickness or in(ur# and proress of his reco'er# ma# re$uire"
sub(ect to the expense limitation prescribed b# the Commission.
Article 10/. 2iability. The !#stem shall ha'e the authorit# to choose or order a chane of ph#sician"
hospital or rehabilitation facilit# for the emplo#ee" and shall not be liable for compensation for an#
ara'ation of the emplo#ee9s in(ur# or sickness resultin from unauthori&ed chanes b# the emplo#ee
of medical ser'ices" appliances" supplies" hospitals" rehabilitation facilities or ph#sicians.
Article 107. Attending p!ysician. )n# ph#sician attendin an in(ured or sick emplo#ee shall compl#
with all the reulations of the !#stem and submit reports in prescribed forms at such time as ma# be
re$uired concernin his condition or treatment. )ll medical information rele'ant to the particular in(ur#
or sickness shall" on demand" be made a'ailable to the emplo#ee or the !#stem. ,o information
de'eloped in connection with treatment or examination for which compensation is souht shall be
considered as pri'ileed communication.
Article 100. Refusal of e)amination or treatment. 1f the emplo#ee unreasonabl# refuses to submit to
medical examination or treatment" the !#stem shall stop the pa#ment of further compensation durin
such time as such refusal continues. >hat constitutes an unreasonable refusal shall be determined b#
the !#stem which ma#" on its own initiati'e" determine the necessit#" character and sufficienc# of an#
medical ser'ices furnished or to be furnished.
Article 109. 'ees and ot!er c!arges. )ll fees and other chares for hospital ser'ices" medical care and
appliances" includin professional fees" shall not be hiher than those pre'ailin in wards of hospitals
for similar ser'ices to in(ured or sick persons in eneral and shall be sub(ect to the reulations of the
Commission. Professional fees shall onl# be appreciabl# hiher than those prescribed under :epublic
)ct ,umbered sixt#%one hundred ele'en" as amended" otherwise known as the Philippine @edical Care
)ct of */6/.
Article 191. Re!abilitation services.
The !#stem shall" as soon as practicable" establish a continuin proram" for the rehabilitation of
in(ured and handicapped emplo#ees who shall be entitled to rehabilitation ser'ices" which shall consist
of medical" surical or hospital treatment" includin appliances if the# ha'e been handicapped b# the
in(ur#" to help them become ph#sicall# independent.
)s soon as practicable" the !#stem shall establish centers e$uipped and staffed to pro'ide a balanced
proram of remedial treatment" 'ocational assessment and preparation desined to meet the indi'idual
needs of each handicapped emplo#ee to restore him to suitable emplo#ment" includin assistance as
ma# be within its resources" to help each rehabilitee to de'elop his mental" 'ocational or social
potential.
C+a,ter 'I
DISA#I"IT& #ENE)ITS
Article 191. Temporary total disability.
Bnder such reulations as the Commission ma# appro'e" an# emplo#ee under this Title who sustains an
in(ur# or contracts sickness resultin in temporar# total disabilit# shall" for each da# of such a disabilit#
or fraction thereof" be paid b# the !#stem an income benefit e$ui'alent to ninet# percent of his a'erae
dail# salar# credit" sub(ect to the followin conditions< the dail# income benefit shall not be less than
Ten Pesos nor more than ,inet# Pesos" nor paid for a continuous period loner than one hundred
twent# da#s" except as otherwise pro'ided for in the :ules" and the !#stem shall be notified of the
in(ur# or sickness. ()s amended b# !ection 5" ?xecuti'e 7rder ,o. *-/)
The pa#ment of such income benefit shall be in accordance with the reulations of the Commission.
()s amended b# !ection */" Presidential Decree ,o. A+.)
Article 192. %ermanent total disability.
Bnder such reulations as the Commission ma# appro'e" an# emplo#ee under this Title who contracts
sickness or sustains an in(ur# resultin in his permanent total disabilit# shall" for each month until his
death" be paid b# the !#stem durin such a disabilit#" an amount e$ui'alent to the monthl# income
benefit" plus ten percent thereof for each dependent child" but not exceedin fi'e" beinnin with the
#ounest and without substitution< Pro'ided" That the monthl# income benefit shall be the new amount
of the monthl# benefit for all co'ered pensioners" effecti'e upon appro'al of this Decree.
The monthl# income benefit shall be uaranteed for fi'e #ears" and shall be suspended if the emplo#ee
is ainfull# emplo#ed" or reco'ers from his permanent total disabilit#" or fails to present himself for
examination at least once a #ear upon notice b# the !#stem" except as otherwise pro'ided for in other
laws" decrees" orders or Letters of 1nstructions. ()s amended b# !ection +" Presidential Decree ,o.
*60*)
The followin disabilities shall be deemed total and permanent<
Temporar# total disabilit# lastin continuousl# for more than one hundred twent# da#s" except as
otherwise pro'ided for in the :ules=
Complete loss of siht of both e#es=
Loss of two limbs at or abo'e the ankle or wrist=
Permanent complete paral#sis of two limbs=
2rain in(ur# resultin in incurable imbecilit# or insanit#= and
!uch cases as determined b# the @edical Director of the !#stem and appro'ed b# the Commission.
The number of months of paid co'erae shall be defined and approximated b# a formula to be
appro'ed b# the Commission.
Article 19-. %ermanent partial disability.
Bnder such reulations as the Commission ma# appro'e" an# emplo#ee under this Title who contracts
sickness or sustains an in(ur# resultin in permanent partial disabilit# shall" for each month not
exceedin the period desinated herein" be paid b# the !#stem durin such a disabilit# an income
benefit for permanent total disabilit#.
The benefit shall be paid for not more than the period desinated in the followin schedules<
Complete and permanent ,o. of @onths
loss of the use of
7ne thumb % *.
7ne index finer % A
7ne middle finer % 6
7ne rin finer % +
7ne little finer % 3
7ne bi toe % 6
7ne toe % 3
7ne arm % +.
7ne hand % 3/
7ne foot % 3*
7ne le % 06
7ne ear % *.
2oth ears % 5.
Eearin of one ear % *.
Eearin of both ears % +.
!iht of one e#e % 5+
) loss of a wrist shall be considered as a loss of the hand" and a loss of an elbow shall be considered as
a loss of the arm. ) loss of an ankle shall be considered as loss of a foot" and a loss of a knee shall be
considered as a loss of the le. ) loss of more than one (oint shall be considered as a loss of one%half of
the whole finer or toe< Pro'ided" That such a loss shall be either the functional loss of the use or
ph#sical loss of the member. ()s amended b# !ection -" Presidential Decree ,o. *36A)
1n case of permanent partial disabilit# less than the total loss of the member specified in the precedin
pararaph" the same monthl# income benefit shall be paid for a portion of the period established for the
total loss of the member in accordance with the proportion that the partial loss bears to the total loss. 1f
the result is a decimal fraction" the same shall be rounded off to the next hiher inteer.
1n cases of simultaneous loss of more than one member or a part thereof as specified in this )rticle" the
same monthl# income benefit shall be paid for a period e$ui'alent to the sum of the periods established
for the loss of the member or the part thereof. 1f the result is a decimal fraction" the same shall be
rounded off to the next hiher inteer.
1n cases of in(uries or illnesses resultin in a permanent partial disabilit# not listed in the precedin
schedule" the benefit shall be an income benefit e$ui'alent to the percentae of the permanent loss of
the capacit# to work. ()s added b# !ection -" Presidential Decree ,o. *36A)
Bnder such reulations as the Commission ma# appro'e" the income benefit pa#able in case of
permanent partial disabilit# ma# be paid in monthl# pension or in lump sum if the period co'ered does
not exceed one #ear. ()s added b# !ection -" Presidential Decree ,o. *36A)
C+a,ter 'II
DEAT% #ENE)ITS
Article 194. Deat!.
Bnder such reulations as the Commission ma# appro'e" the !#stem shall pa# to the primar#
beneficiaries upon the death of the co'ered emplo#ee under this Title" an amount e$ui'alent to his
monthl# income benefit" plus ten percent thereof for each dependent child" but not exceedin fi'e"
beinnin with the #ounest and without substitution" except as pro'ided for in pararaph (() of )rticle
*6- hereof< Pro'ided" howe'er" That the monthl# income benefit shall be uaranteed for fi'e #ears<
Pro'ided" further" That if he has no primar# beneficiar#" the !#stem shall pa# to his secondar#
beneficiaries the monthl# income benefit but not to exceed sixt# months< Pro'ided" finall#" That the
minimum death benefit shall not be less than fifteen thousand pesos. ()s amended b# !ection 0"
Presidential Decree ,o. */5*)
Bnder such reulations as the Commission ma# appro'e" the !#stem shall pa# to the primar#
beneficiaries upon the death of a co'ered emplo#ee who is under permanent total disabilit# under this
Title" eiht# percent of the monthl# income benefit and his dependents to the dependents9 pension<
Pro'ided" That the marriae must ha'e been 'alidl# subsistin at the time of disabilit#< Pro'ided"
further" That if he has no primar# beneficiar#" the !#stem shall pa# to his secondar# beneficiaries the
monthl# pension excludin the dependents9 pension" of the remainin balance of the fi'e%#ear
uaranteed period< Pro'ided" finall#" That the minimum death benefit shall not be less than fifteen
thousand pesos. ()s amended b# !ection 0" Presidential Decree ,o. */5*)
The monthl# income benefit pro'ided herein shall be the new amount of the monthl# income benefit
for the sur'i'in beneficiaries upon the appro'al of this decree. ()s amended b# !ection A" Presidential
Decree ,o. *36A)
4uneral benefit. % ) funeral benefit of Three thousand pesos (P3"......) shall be paid upon the death of
a co'ered emplo#ee or permanentl# totall# disabled pensioner. ()s amended b# !ection 3" ?xecuti'e
7rder ,o. *-/)
C+a,ter 'III
PR$'ISI$NS C$MM$N T$ INC$ME #ENE)ITS
Article 19.. Relations!ip and dependency. )ll $uestions of relationship and dependenc# shall be
determined as of the time of death.
Article 19/. Delin+uent contributions.
)n emplo#er who is delin$uent in his contributions shall be liable to the !#stem for the benefits which
ma# ha'e been paid b# the !#stem to his emplo#ees or their dependents" and an# benefit and expenses
to which such emplo#er is liable shall constitute a lien on all his propert#" real or personal" which is
hereb# declared to be preferred to an# credit" except taxes. The pa#ment b# the emplo#er of the lump
sum e$ui'alent of such liabilit# shall absol'e him from the pa#ment of the delin$uent contribution and
penalt# thereon with respect to the emplo#ee concerned.
4ailure or refusal of the emplo#er to pa# or remit the contribution herein prescribed shall not pre(udice
the riht of the emplo#ee or his dependents to the benefits under this Title. 1f the sickness" in(ur#"
disabilit# or death occurs before the !#stem recei'es an# report of the name of his emplo#ee" the
emplo#er shall be liable to the !#stem for the lump sum e$ui'alent to the benefits to which such
emplo#ee or his dependents ma# be entitled.
Article 197. Second injuries. 1f an# emplo#ee under permanent partial disabilit# suffers another in(ur#
which results in a compensable disabilit# reater than the pre'ious in(ur#" the !tate 1nsurance 4und
shall be liable for the income benefit of the new disabilit#< Pro'ided" That if the new disabilit# is
related to the pre'ious disabilit#" the !#stem shall be liable onl# for the difference in income benefits.
Article 190. Assignment of benefits. ,o claim for compensation under this Title is transferable or liable
to tax" attachment" arnishment" le'# or sei&ure b# or under an# leal process whatsoe'er" either before
or after receipt b# the person or persons entitled thereto" except to pa# an# debt of the emplo#ee to the
!#stem.
Article 199. #arned benefits. 1ncome benefits shall" with respect to an# period of disabilit#" be pa#able
in accordance with this Title to an emplo#ee who is entitled to recei'e waes" salaries or allowances for
holida#s" 'acation or sick lea'es and an# other award of benefit under a collecti'e barainin or other
areement.
Article 211. Safety devices. 1n case the emplo#ee9s in(ur# or death was due to the failure of the
emplo#er to compl# with an# law or to install and maintain safet# de'ices or to take other precautions
for the pre'ention of in(ur#" said emplo#er shall pa# the !tate 1nsurance 4und a penalt# of twent#%fi'e
percent (5+8) of the lump sum e$ui'alent of the income benefit pa#able b# the !#stem to the
emplo#ee. )ll emplo#ers" speciall# those who should ha'e been pa#in a rate of contribution hiher
than re$uired of them under this Title" are en(oined to undertake and strenthen measures for the
occupational health and safet# of their emplo#ees.
Article 211. %rescriptive period. ,o claim for compensation shall be i'en due course unless said
claim is filed with the !#stem within three (3) #ears from the time the cause of action accrued. ()s
amended b# !ection +" Presidential Decree ,o. */5*)
Article 212. #rroneous payment.
1f the !#stem in ood faith pa#s income benefit to a dependent who is inferior in riht to another
dependent or with whom another dependent is entitled to share" such pa#ments shall dischare the
!#stem from liabilit#" unless and until such other dependent notifies the !#stem of his claim prior to the
pa#ments.
1n case of doubt as to the respecti'e rihts of ri'al claimants" the !#stem is hereb# empowered to
determine as to whom pa#ments should be made in accordance with such reulations as the
Commission ma# appro'e. 1f the mone# is pa#able to a minor or incompetent" pa#ment shall be made
b# the !#stem to such person or persons as it ma# consider to be best $ualified to take care and dispose
of the minor9s or incompetent9s propert# for his benefit.
Article 21-. %ro!ibition. ,o aent" attorne# or other person pursuin or in chare of the preparation or
filin of an# claim for benefit under this Title shall demand or chare for his ser'ices an# fee" and an#
stipulation to the contrar# shall be null and 'oid. The retention or deduction of an# amount from an#
benefit ranted under this Title for the pa#ment of fees for such ser'ices is prohibited. Ciolation of an#
pro'ision of this )rticle shall be punished b# a fine of not less than fi'e hundred pesos nor more than
fi'e thousand pesos" or imprisonment for not less than six months nor more than one #ear" or both" at
the discretion of the court.
Article 214. #)emption from levy0 ta)0 etc. )ll laws to the contrar# notwithstandin" the !tate 1nsurance
4und and all its assets shall be exempt from an# tax" fee" chare" le'#" or customs or import dut# and no
law hereafter enacted shall appl# to the !tate 1nsurance 4und unless it is pro'ided therein that the same
is applicable b# expressl# statin its name.
C+a,ter I5
REC$RDS, REP$RTS AND PENA" PR$'ISI$NS
Article 21.. Record of deat! or disability.
)ll emplo#ers shall keep a lobook to record chronoloicall# the sickness" in(ur# or death of their
emplo#ees" settin forth therein their names" dates and places of the continenc#" nature of the
continenc# and absences. ?ntries in the lobook shall be made within fi'e da#s from notice or
knowlede of the occurrence of the continenc#. >ithin fi'e da#s after entr# in the lobook" the
emplo#er shall report to the !#stem onl# those continencies he deems to be work%connected.
)ll entries in the emplo#er9s lobook shall be made b# the emplo#er or an# of his authori&ed official
after 'erification of the continencies or the emplo#ees9 absences for a period of a da# or more. Bpon
re$uest b# the !#stem" the emplo#er shall furnish the necessar# certificate reardin information about
an# continenc# appearin in the lobook" citin the entr# number" pae number and date. !uch
lobook shall be made a'ailable for inspection to the dul# authori&ed representati'e of the !#stem.
!hould an# emplo#er fail to record in the lobook an actual sickness" in(ur# or death of an# of his
emplo#ees within the period prescribed herein" i'e false information or withhold material information
alread# in his possession" he shall be held liable for fift# percent of the lump sum e$ui'alent of the
income benefit to which the emplo#ee ma# be found to be entitled" the pa#ment of which shall accrue
to the !tate 1nsurance 4und.
1n case of pa#ment of benefits for an# claim which is later determined to be fraudulent and the
emplo#er is found to be a part# to the fraud" such emplo#er shall reimburse the !#stem the full amount
of the compensation paid.
Article 21/. Notice of sicness0 injury or deat!. ,otice of sickness" in(ur# or death shall be i'en to the
emplo#er b# the emplo#ee or b# his dependents or an#bod# on his behalf within fi'e da#s from the
occurrence of the continenc#. ,o notice to the emplo#er shall be re$uired if the continenc# is known
to the emplo#er or his aents or representati'es.
Article 217. %enal provisions.
The penal pro'isions of :epublic )ct ,umbered ?le'en Eundred !ixt#%7ne" as amended" and
Commonwealth )ct ,umbered 7ne Eundred ?iht#%!ix" as amended" with reard to the funds as are
thereunder bein paid to" collected or disbursed b# the !#stem" shall be applicable to the collection"
administration and disbursement of the 4unds under this Title. The penal pro'isions on co'erae shall
also be applicable.
)n# person who" for the purpose of securin entitlement to an# benefit or pa#ment under this Title" or
the issuance of an# certificate or document for an# purpose connected with this Title" whether for him
or for some other person" commits fraud" collusion" falsification" misrepresentation of facts or an# other
kind of anomal#" shall be punished with a fine of not less than fi'e hundred pesos nor more than fi'e
thousand pesos and an imprisonment for not less than six months nor more than one #ear" at the
discretion of the court.
1f the act penali&ed b# this )rticle is committed b# an# person who has been or is emplo#ed b# the
Commission or !#stem" or a recidi'ist" the imprisonment shall not be less than one #ear= if committed
b# a law#er" ph#sician or other professional" he shall" in addition to the penalt# prescribed herein" be
dis$ualified from the practice of his profession= and if committed b# an# official" emplo#ee or
personnel of the Commission" !#stem or an# o'ernment aenc#" he shall" in addition to the penalt#
prescribed herein" be dismissed with pre(udice to re%emplo#ment in the o'ernment ser'ice.
Article 210. Applicability. This Title shall appl# onl# to in(ur#" sickness" disabilit# or death occurrin
on or after Fanuar# *" */-+.
Article 2103A. Repeal. )ll existin laws" Presidential Decrees and Letters of 1nstructions which are
inconsistent with or contrar# to this Decree" are hereb# repealed< Pro'ided" That in the case of the
;!1!" conditions for entitlement to benefits shall be o'erned b# the Labor Code" as amended<
Pro'ided" howe'er" That the formulas for computation of benefits" as well as the contribution base"
shall be those pro'ided under Commonwealth )ct ,umbered 7ne Eundred ?iht#%!ix" as amended b#
Presidential Decree ,o. **06" plus twent# percent thereof. ()s added b# !ection /" Presidential Decree
,o. *36A J@a# *" */-AK and subse$uentl# amended b# !ection -" Presidential Decree ,o. *60*)
Title III
MEDICARE
Article 219. (edical care. The Philippine @edical Care Plan shall be implemented as pro'ided under
:epublic )ct ,umbered !ixt#%7ne Eundred ?le'en" as amended.
Title I'
AD"T EDCATI$N
Article 211. Adult education. ?'er# emplo#er shall render assistance in the establishment and
operation of adult education prorams for their workers and emplo#ees as prescribed b# reulations
(ointl# appro'ed b# the Department of Labor and ?mplo#ment and the Department of ?ducation"
Culture and !ports.
#$$2 )I'E
"A#$R RE"ATI$NS
Title I
P$"IC& AND DE)INITI$NS
C+a,ter I
P$"IC&
Article 211. Declaration of %olicy.
1t is the polic# of the !tate<
To promote and emphasi&e the primac# of free collecti'e barainin and neotiations" includin
'oluntar# arbitration" mediation and conciliation" as modes of settlin labor or industrial disputes=
To promote free trade unionism as an instrument for the enhancement of democrac# and the promotion
of social (ustice and de'elopment=
To foster the free and 'oluntar# orani&ation of a stron and united labor mo'ement=
To promote the enlihtenment of workers concernin their rihts and obliations as union members and
as emplo#ees=
To pro'ide an ade$uate administrati'e machiner# for the expeditious settlement of labor or industrial
disputes=
To ensure a stable but d#namic and (ust industrial peace= and
To ensure the participation of workers in decision and polic#%makin processes affectin their rihts"
duties and welfare.
To encourae a trul# democratic method of reulatin the relations between the emplo#ers and
emplo#ees b# means of areements freel# entered into throuh collecti'e barainin" no court or
administrati'e aenc# or official shall ha'e the power to set or fix waes" rates of pa#" hours of work or
other terms and conditions of emplo#ment" except as otherwise pro'ided under this Code. ()s amended
b# !ection 3" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
C+a,ter II
DE)INITI$NS
Article 212. Definitions.
"Commission" means the ,ational Labor :elations Commission or an# of its di'isions" as the case ma#
be" as pro'ided under this Code.
"2ureau" means the 2ureau of Labor :elations and6or the Labor :elations Di'isions in the reional
offices established under Presidential Decree ,o. *" in the Department of Labor.
"2oard" means the ,ational Conciliation and @ediation 2oard established under ?xecuti'e 7rder ,o.
*56.
"Council" means the Tripartite Coluntar# )rbitration )d'isor# Council established under ?xecuti'e
7rder ,o. *56" as amended.
"?mplo#er" includes an# person actin in the interest of an emplo#er" directl# or indirectl#. The term
shall not include an# labor orani&ation or an# of its officers or aents except when actin as emplo#er.
"?mplo#ee" includes an# person in the emplo# of an emplo#er. The term shall not be limited to the
emplo#ees of a particular emplo#er" unless the Code so explicitl# states. 1t shall include an# indi'idual
whose work has ceased as a result of or in connection with an# current labor dispute or because of an#
unfair labor practice if he has not obtained an# other substantiall# e$ui'alent and reular emplo#ment.
"Labor orani&ation" means an# union or association of emplo#ees which exists in whole or in part for
the purpose of collecti'e barainin or of dealin with emplo#ers concernin terms and conditions of
emplo#ment.
"Leitimate labor orani&ation" means an# labor orani&ation dul# reistered with the Department of
Labor and ?mplo#ment" and includes an# branch or local thereof.
"Compan# union" means an# labor orani&ation whose formation" function or administration has been
assisted b# an# act defined as unfair labor practice b# this Code.
"2arainin representati'e" means a leitimate labor orani&ation whether or not emplo#ed b# the
emplo#er.
"Bnfair labor practice" means an# unfair labor practice as expressl# defined b# the Code.
"Labor dispute" includes an# contro'ers# or matter concernin terms and conditions of emplo#ment or
the association or representation of persons in neotiatin" fixin" maintainin" chanin or arranin
the terms and conditions of emplo#ment" reardless of whether the disputants stand in the proximate
relation of emplo#er and emplo#ee.
"@anaerial emplo#ee" is one who is 'ested with the powers or preroati'es to la# down and execute
manaement policies and6or to hire" transfer" suspend" la#%off" recall" dischare" assin or discipline
emplo#ees. !uper'isor# emplo#ees are those who" in the interest of the emplo#er" effecti'el#
recommend such manaerial actions if the exercise of such authorit# is not merel# routinar# or clerical
in nature but re$uires the use of independent (udment. )ll emplo#ees not fallin within an# of the
abo'e definitions are considered rank%and%file emplo#ees for purposes of this 2ook.
"Coluntar# )rbitrator" means an# person accredited b# the 2oard as such or an# person named or
desinated in the Collecti'e 2arainin )reement b# the parties to act as their Coluntar# )rbitrator" or
one chosen with or without the assistance of the ,ational Conciliation and @ediation 2oard" pursuant
to a selection procedure areed upon in the Collecti'e 2arainin )reement" or an# official that ma#
be authori&ed b# the !ecretar# of Labor and ?mplo#ment to act as Coluntar# )rbitrator upon the
written re$uest and areement of the parties to a labor dispute.
"!trike" means an# temporar# stoppae of work b# the concerted action of emplo#ees as a result of an
industrial or labor dispute.
"Lockout" means an# temporar# refusal of an emplo#er to furnish work as a result of an industrial or
labor dispute.
"1nternal union dispute" includes all disputes or rie'ances arisin from an# 'iolation of or
disareement o'er an# pro'ision of the constitution and b# laws of a union" includin an# 'iolation of
the rihts and conditions of union membership pro'ided for in this Code.
"!trike%breaker" means an# person who obstructs" impedes" or interferes with b# force" 'iolence"
coercion" threats" or intimidation an# peaceful picketin affectin waes" hours or conditions of work
or in the exercise of the riht of self%orani&ation or collecti'e barainin.
"!trike area" means the establishment" warehouses" depots" plants or offices" includin the sites or
premises used as runawa# shops" of the emplo#er struck aainst" as well as the immediate 'icinit#
actuall# used b# picketin strikers in mo'in to and fro before all points of entrance to and exit from
said establishment. ()s amended b# !ection 0" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Title II
NATI$NA" "A#$R RE"ATI$NS C$MMISSI$N
C+a,ter I
CREATI$N AND C$MP$SITI$N
Article 21-. National 2abor Relations Commission. There shall be a ,ational Labor :elations
Commission which shall be attached to the Department of Labor and ?mplo#ment for proram and
polic# coordination onl#" composed of a Chairman and fourteen (*0) @embers.
4i'e (+) members each shall be chosen from amon the nominees of the workers and emplo#ers
orani&ations" respecti'el#. The Chairman and the four (0) remainin members shall come from the
public sector" with the latter to be chosen from amon the recommendees of the !ecretar# of Labor and
?mplo#ment.
Bpon assumption into office" the members nominated b# the workers and emplo#ers orani&ations
shall di'est themsel'es of an# affiliation with or interest in the federation or association to which the#
belon.
The Commission ma# sit en banc or in fi'e (+) di'isions" each composed of three (3) members. !ub(ect
to the penultimate sentence of this pararaph" the Commission shall sit en banc onl# for purposes of
promulatin rules and reulations o'ernin the hearin and disposition of cases before an# of its
di'isions and reional branches" and formulatin policies affectin its administration and operations.
The Commission shall exercise its ad(udicator# and all other powers" functions" and duties throuh its
di'isions. 7f the fi'e (+) di'isions" the first" second and third di'isions shall handle cases comin from
the ,ational Capital :eion and the parts of Lu&on= and the fourth and fifth di'isions" cases from the
Cisa#as and @indanao" respecti'el#= Pro'ided that the Commission sittin en banc ma#" on temporar#
or emerenc# basis" allow cases within the (urisdiction of an# di'ision to be heard and decided b# an#
other di'ision whose docket allows the additional workload and such transfer will not expose litiants
to unnecessar# additional expense. The di'isions of the Commission shall ha'e exclusi'e appellate
(urisdiction o'er cases within their respecti'e territorial (urisdictions. J)s amended b# :epublic )ct
,o. --..K.
The concurrence of two (5) Commissioners of a di'ision shall be necessar# for the pronouncement of
(udment or resolution. >hene'er the re$uired membership in a di'ision is not complete and the
concurrence of two (5) commissioners to arri'e at a (udment or resolution cannot be obtained" the
Chairman shall desinate such number of additional Commissioners from the other di'isions as ma# be
necessar#.
The conclusions of a di'ision on an# case submitted to it for decision shall be reached in consultation
before the case is assined to a member for the writin of the opinion. 1t shall be mandator# for the
di'ision to meet for purposes of the consultation ordained herein. ) certification to this effect sined b#
the Presidin Commissioner of the di'ision shall be issued and a cop# thereof attached to the record of
the case and ser'ed upon the parties.
The Chairman shall be the Presidin Commissioner of the first di'ision and the four (0) other members
from the public sector shall be the Presidin Commissioners of the second" third" fourth and fifth
di'isions" respecti'el#. 1n case of the effecti'e absence or incapacit# of the Chairman" the Presidin
Commissioner of the second di'ision shall be the )ctin Chairman.
The Chairman" aided b# the ?xecuti'e Clerk of the Commission" shall ha'e administrati'e super'ision
o'er the Commission and its reional branches and all its personnel" includin the ?xecuti'e Labor
)rbiters and Labor )rbiters.
The Commission" when sittin en banc shall be assisted b# the same ?xecuti'e Clerk and" when actin
thru its Di'isions" b# said ?xecuti'e Clerks for the second" third" fourth and fifth Di'isions"
respecti'el#" in the performance of such similar or e$ui'alent functions and duties as are dischared b#
the Clerk of Court and Deput# Clerks of Court of the Court of )ppeals. ()s amended b# !ection +"
:epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 214. 4ead+uarters0 $ranc!es and %rovincial #)tension 5nits. The Commission and its 4irst"
!econd and Third di'isions shall ha'e their main offices in @etropolitan @anila" and the 4ourth and
4ifth di'isions in the Cities of Cebu and Caa#an de 7ro" respecti'el#. The Commission shall establish
as man# reional branches as there are reional offices of the Department of Labor and ?mplo#ment"
sub%reional branches or pro'incial extension units. There shall be as man# Labor )rbiters as ma# be
necessar# for the effecti'e and efficient operation of the Commission. ?ach reional branch shall be
headed b# an ?xecuti'e Labor )rbiter. ()s amended b# !ection 6" :epublic )ct ,o. 6-*+" @arch 5*"
*/A/)
Article 21.. Appointment and 1ualifications. The Chairman and other Commissioners shall be
members of the Philippine 2ar and must ha'e enaed in the practice of law in the Philippines for at
least fifteen (*+) #ears" with at least fi'e (+) #ears experience or exposure in the field of labor%
manaement relations" and shall preferabl# be residents of the reion where the# are to hold office. The
?xecuti'e Labor )rbiters and Labor )rbiters shall likewise be members of the Philippine 2ar and must
ha'e been enaed in the practice of law in the Philippines for at least se'en (-) #ears" with at least
three (3) #ears experience or exposure in the field of labor%manaement relations< Pro'ided" Eowe'er"
that incumbent ?xecuti'e Labor )rbiters and Labor )rbiters who ha'e been enaed in the practice of
law for at least fi'e (+) #ears ma# be considered as alread# $ualified for purposes of reappointment as
such under this )ct. The Chairman and the other Commissioners" the ?xecuti'e Labor )rbiters and
Labor )rbiters shall hold office durin ood beha'ior until the# reach the ae of sixt#%fi'e #ears"
unless sooner remo'ed for cause as pro'ided b# law or become incapacitated to dischare the duties of
their office.
The Chairman" the di'ision Presidin Commissioners and other Commissioners shall be appointed b#
the President" sub(ect to confirmation b# the Commission on )ppointments. )ppointment to an#
'acanc# shall come from the nominees of the sector which nominated the predecessor. The ?xecuti'e
Labor )rbiters and Labor )rbiters shall also be appointed b# the President" upon recommendation of
the !ecretar# of Labor and ?mplo#ment and shall be sub(ect to the Ci'il !er'ice Law" rules and
reulations.
The !ecretar# of Labor and ?mplo#ment shall" in consultation with the Chairman of the Commission"
appoint the staff and emplo#ees of the Commission and its reional branches as the needs of the ser'ice
ma# re$uire" sub(ect to the Ci'il !er'ice Law" rules and reulations" and uprade their current salaries"
benefits and other emoluments in accordance with law. ()s amended b# !ection -" :epublic )ct ,o.
6-*+" @arch 5*" */A/)
Article 21/. Salaries0 benefits and ot!er emoluments. The Chairman and members of the Commission
shall recei'e an annual salar# at least e$ui'alent to" and be entitled to the same allowances and benefits
as those of the Presidin Fustice and )ssociate Fustices of the Court of )ppeals" respecti'el#. The
?xecuti'e Labor )rbiters shall recei'e an annual salar# at least e$ui'alent to that of an )ssistant
:eional Director of the Department of Labor and ?mplo#ment and shall be entitled to the same
allowances and benefits as that of a :eional Director of said Department. The Labor )rbiters shall
recei'e an annual salar# at least e$ui'alent to" and be entitled to the same allowances and benefits as
that of an )ssistant :eional Director of the Department of Labor and ?mplo#ment. 1n no case"
howe'er" shall the pro'ision of this )rticle result in the diminution of existin salaries" allowances and
benefits of the aforementioned officials. ()s amended b# !ection A" :epublic )ct ,o. 6-*+" @arch 5*"
*/A/)
C+a,ter II
P$(ERS AND DTIES
Article 217. 8urisdiction of t!e 2abor Arbiters and t!e Commission.
?xcept as otherwise pro'ided under this Code" the Labor )rbiters shall ha'e oriinal and exclusi'e
(urisdiction to hear and decide" within thirt# (3.) calendar da#s after the submission of the case b# the
parties for decision without extension" e'en in the absence of stenoraphic notes" the followin cases
in'ol'in all workers" whether aricultural or non%aricultural<
Bnfair labor practice cases=
Termination disputes=
1f accompanied with a claim for reinstatement" those cases that workers ma# file in'ol'in waes" rates
of pa#" hours of work and other terms and conditions of emplo#ment=
Claims for actual" moral" exemplar# and other forms of damaes arisin from the emplo#er%emplo#ee
relations=
Cases arisin from an# 'iolation of )rticle 560 of this Code" includin $uestions in'ol'in the lealit#
of strikes and lockouts= and
?xcept claims for ?mplo#ees Compensation" !ocial !ecurit#" @edicare and maternit# benefits" all
other claims arisin from emplo#er%emplo#ee relations" includin those of persons in domestic or
household ser'ice" in'ol'in an amount exceedin fi'e thousand pesos (P+"......) reardless of
whether accompanied with a claim for reinstatement.
The Commission shall ha'e exclusi'e appellate (urisdiction o'er all cases decided b# Labor )rbiters.
Cases arisin from the interpretation or implementation of collecti'e barainin areements and those
arisin from the interpretation or enforcement of compan# personnel policies shall be disposed of b#
the Labor )rbiter b# referrin the same to the rie'ance machiner# and 'oluntar# arbitration as ma# be
pro'ided in said areements. ()s amended b# !ection /" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 210. %owers of t!e Commission. The Commission shall ha'e the power and authorit#<
To promulate rules and reulations o'ernin the hearin and disposition of cases before it and its
reional branches" as well as those pertainin to its internal functions and such rules and reulations as
ma# be necessar# to carr# out the purposes of this Code= ()s amended b# !ection *." :epublic )ct ,o.
6-*+" @arch 5*" */A/)
To administer oaths" summon the parties to a contro'ers#" issue subpoenas re$uirin the attendance and
testimon# of witnesses or the production of such books" papers" contracts" records" statement of
accounts" areements" and others as ma# be material to a (ust determination of the matter under
in'estiation" and to testif# in an# in'estiation or hearin conducted in pursuance of this Code=
To conduct in'estiation for the determination of a $uestion" matter or contro'ers# within its
(urisdiction" proceed to hear and determine the disputes in the absence of an# part# thereto who has
been summoned or ser'ed with notice to appear" conduct its proceedins or an# part thereof in public
or in pri'ate" ad(ourn its hearins to an# time and place" refer technical matters or accounts to an expert
and to accept his report as e'idence after hearin of the parties upon due notice" direct parties to be
(oined in or excluded from the proceedins" correct" amend" or wai'e an# error" defect or irreularit#
whether in substance or in form" i'e all such directions as it ma# deem necessar# or expedient in the
determination of the dispute before it" and dismiss an# matter or refrain from further hearin or from
determinin the dispute or part thereof" where it is tri'ial or where further proceedins b# the
Commission are not necessar# or desirable= and
To hold an# person in contempt directl# or indirectl# and impose appropriate penalties therefor in
accordance with law.
) person uilt# of misbeha'ior in the presence of or so near the Chairman or an# member of the
Commission or an# Labor )rbiter as to obstruct or interrupt the proceedins before the same" includin
disrespect toward said officials" offensi'e personalities toward others" or refusal to be sworn" or to
answer as a witness or to subscribe an affida'it or deposition when lawfull# re$uired to do so" ma# be
summaril# ad(uded in direct contempt b# said officials and punished b# fine not exceedin fi'e
hundred pesos (P+..) or imprisonment not exceedin fi'e (+) da#s" or both" if it be the Commission" or
a member thereof" or b# a fine not exceedin one hundred pesos (P*..) or imprisonment not exceedin
one (*) da#" or both" if it be a Labor )rbiter.
The person ad(uded in direct contempt b# a Labor )rbiter ma# appeal to the Commission and the
execution of the (udment shall be suspended pendin the resolution of the appeal upon the filin b#
such person of a bond on condition that he will abide b# and perform the (udment of the Commission
should the appeal be decided aainst him. Fudment of the Commission on direct contempt is
immediatel# executor# and unappealable. 1ndirect contempt shall be dealt with b# the Commission or
Labor )rbiter in the manner prescribed under :ule -* of the :e'ised :ules of Court= and ()s amended
b# !ection *." :epublic )ct ,o. 6-*+" @arch 5*" */A/)
To en(oin or restrain an# actual or threatened commission of an# or all prohibited or unlawful acts or to
re$uire the performance of a particular act in an# labor dispute which" if not restrained or performed
forthwith" ma# cause ra'e or irreparable damae to an# part# or render ineffectual an# decision in
fa'or of such part#< Pro'ided" That no temporar# or permanent in(unction in an# case in'ol'in or
rowin out of a labor dispute as defined in this Code shall be issued except after hearin the testimon#
of witnesses" with opportunit# for cross%examination" in support of the alleations of a complaint made
under oath" and testimon# in opposition thereto" if offered" and onl# after a findin of fact b# the
Commission" to the effect<
That prohibited or unlawful acts ha'e been threatened and will be committed and will be continued
unless restrained" but no in(unction or temporar# restrainin order shall be issued on account of an#
threat" prohibited or unlawful act" except aainst the person or persons" association or orani&ation
makin the threat or committin the prohibited or unlawful act or actuall# authori&in or ratif#in the
same after actual knowlede thereof=
That substantial and irreparable in(ur# to complainant9s propert# will follow=
That as to each item of relief to be ranted" reater in(ur# will be inflicted upon complainant b# the
denial of relief than will be inflicted upon defendants b# the rantin of relief=
That complainant has no ade$uate remed# at law= and
That the public officers chared with the dut# to protect complainant9s propert# are unable or unwillin
to furnish ade$uate protection.
!uch hearin shall be held after due and personal notice thereof has been ser'ed" in such manner as the
Commission shall direct" to all known persons aainst whom relief is souht" and also to the Chief
?xecuti'e and other public officials of the pro'ince or cit# within which the unlawful acts ha'e been
threatened or committed" chared with the dut# to protect complainant9s propert#< Pro'ided" howe'er"
that if a complainant shall also allee that" unless a temporar# restrainin order shall be issued without
notice" a substantial and irreparable in(ur# to complainant9s propert# will be una'oidable" such a
temporar# restrainin order ma# be issued upon testimon# under oath" sufficient" if sustained" to (ustif#
the Commission in issuin a temporar# in(unction upon hearin after notice. !uch a temporar#
restrainin order shall be effecti'e for no loner than twent# (5.) da#s and shall become 'oid at the
expiration of said twent# (5.) da#s. ,o such temporar# restrainin order or temporar# in(unction shall
be issued except on condition that complainant shall first file an undertakin with ade$uate securit# in
an amount to be fixed b# the Commission sufficient to recompense those en(oined for an# loss" expense
or damae caused b# the impro'ident or erroneous issuance of such order or in(unction" includin all
reasonable costs" toether with a reasonable attorne#9s fee" and expense of defense aainst the order or
aainst the rantin of an# in(uncti'e relief souht in the same proceedin and subse$uentl# denied b#
the Commission.
The undertakin herein mentioned shall be understood to constitute an areement entered into b# the
complainant and the suret# upon which an order ma# be rendered in the same suit or proceedin
aainst said complainant and suret#" upon a hearin to assess damaes" of which hearin" complainant
and suret# shall ha'e reasonable notice" the said complainant and suret# submittin themsel'es to the
(urisdiction of the Commission for that purpose. 2ut nothin herein contained shall depri'e an# part#
ha'in a claim or cause of action under or upon such undertakin from electin to pursue his ordinar#
remed# b# suit at law or in e$uit#< Pro'ided" further" That the reception of e'idence for the application
of a writ of in(unction ma# be deleated b# the Commission to an# of its Labor )rbiters who shall
conduct such hearins in such places as he ma# determine to be accessible to the parties and their
witnesses and shall submit thereafter his recommendation to the Commission. ()s amended b# !ection
*." :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 219. &cular inspection. The Chairman" an# Commissioner" Labor )rbiter or their dul#
authori&ed representati'es" ma#" at an# time durin workin hours" conduct an ocular inspection on an#
establishment" buildin" ship or 'essel" place or premises" includin an# work" material" implement"
machiner#" appliance or an# ob(ect therein" and ask an# emplo#ee" laborer" or an# person" as the case
ma# be" for an# information or data concernin an# matter or $uestion relati'e to the ob(ect of the
in'estiation.
Article 221. Compulsory arbitration. The Commission or an# Labor )rbiter shall ha'e the power to
ask the assistance of other o'ernment officials and $ualified pri'ate citi&ens to act as compulsor#
arbitrators on cases referred to them and to fix and assess the fees of such compulsor# arbitrators"
takin into account the nature of the case" the time consumed in hearin the case" the professional
standin of the arbitrators" the financial capacit# of the parties" and the fees pro'ided in the :ules of
Court.K (:epealed b# !ection *6" 2atas Pambansa 2ilan *3." )uust 5*" */A*)
Article 221. Tec!nical rules not binding and prior resort to amicable settlement. 1n an# proceedin
before the Commission or an# of the Labor )rbiters" the rules of e'idence pre'ailin in courts of law or
e$uit# shall not be controllin and it is the spirit and intention of this Code that the Commission and its
members and the Labor )rbiters shall use e'er# and all reasonable means to ascertain the facts in each
case speedil# and ob(ecti'el# and without reard to technicalities of law or procedure" all in the interest
of due process. 1n an# proceedin before the Commission or an# Labor )rbiter" the parties ma# be
represented b# leal counsel but it shall be the dut# of the Chairman" an# Presidin Commissioner or
Commissioner or an# Labor )rbiter to exercise complete control of the proceedins at all staes.
)n# pro'ision of law to the contrar# notwithstandin" the Labor )rbiter shall exert all efforts towards
the amicable settlement of a labor dispute within his (urisdiction on or before the first hearin. The
same rule shall appl# to the Commission in the exercise of its oriinal (urisdiction. ()s amended b#
!ection **" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 222. Appearances and 'ees.
,on%law#ers ma# appear before the Commission or an# Labor )rbiter onl#<
1f the# represent themsel'es= or
1f the# represent their orani&ation or members thereof.
,o attorne#9s fees" neotiation fees or similar chares of an# kind arisin from an# collecti'e
barainin areement shall be imposed on an# indi'idual member of the contractin union< Pro'ided"
Eowe'er" that attorne#9s fees ma# be chared aainst union funds in an amount to be areed upon b#
the parties. )n# contract" areement or arranement of an# sort to the contrar# shall be null and 'oid.
()s amended b# Presidential Decree ,o. *6/*" @a# *" */A.)
C+a,ter III
APPEA"
Article 22-. Appeal. Decisions" awards" or orders of the Labor )rbiter are final and executor# unless
appealed to the Commission b# an# or both parties within ten (*.) calendar da#s from receipt of such
decisions" awards" or orders. !uch appeal ma# be entertained onl# on an# of the followin rounds<
1f there is prima facie e'idence of abuse of discretion on the part of the Labor )rbiter=
1f the decision" order or award was secured throuh fraud or coercion" includin raft and corruption=
1f made purel# on $uestions of law= and
1f serious errors in the findins of facts are raised which would cause ra'e or irreparable damae or
in(ur# to the appellant.
1n case of a (udment in'ol'in a monetar# award" an appeal b# the emplo#er ma# be perfected onl#
upon the postin of a cash or suret# bond issued b# a reputable bondin compan# dul# accredited b#
the Commission in the amount e$ui'alent to the monetar# award in the (udment appealed from.
1n an# e'ent" the decision of the Labor )rbiter reinstatin a dismissed or separated emplo#ee" insofar as
the reinstatement aspect is concerned" shall immediatel# be executor#" e'en pendin appeal. The
emplo#ee shall either be admitted back to work under the same terms and conditions pre'ailin prior to
his dismissal or separation or" at the option of the emplo#er" merel# reinstated in the pa#roll. The
postin of a bond b# the emplo#er shall not sta# the execution for reinstatement pro'ided herein.
To discourae fri'olous or dilator# appeals" the Commission or the Labor )rbiter shall impose
reasonable penalt#" includin fines or censures" upon the errin parties.
1n all cases" the appellant shall furnish a cop# of the memorandum of appeal to the other part# who
shall file an answer not later than ten (*.) calendar da#s from receipt thereof.
The Commission shall decide all cases within twent# (5.) calendar da#s from receipt of the answer of
the appellee. The decision of the Commission shall be final and executor# after ten (*.) calendar da#s
from receipt thereof b# the parties.
)n# law enforcement aenc# ma# be deputi&ed b# the !ecretar# of Labor and ?mplo#ment or the
Commission in the enforcement of decisions" awards or orders. ()s amended b# !ection *5" :epublic
)ct ,o. 6-*+" @arch 5*" */A/)
Article 224. #)ecution of decisions0 orders or awards.
The !ecretar# of Labor and ?mplo#ment or an# :eional Director" the Commission or an# Labor
)rbiter" or @ed%)rbiter or Coluntar# )rbitrator ma#" motu proprio or on motion of an# interested part#"
issue a writ of execution on a (udment within fi'e (+) #ears from the date it becomes final and
executor#" re$uirin a sheriff or a dul# deputi&ed officer to execute or enforce final decisions" orders or
awards of the !ecretar# of Labor and ?mplo#ment or reional director" the Commission" the Labor
)rbiter or med%arbiter" or 'oluntar# arbitrators. 1n an# case" it shall be the dut# of the responsible
officer to separatel# furnish immediatel# the counsels of record and the parties with copies of said
decisions" orders or awards. 4ailure to compl# with the dut# prescribed herein shall sub(ect such
responsible officer to appropriate administrati'e sanctions.
The !ecretar# of Labor and ?mplo#ment" and the Chairman of the Commission ma# desinate special
sheriffs and take an# measure under existin laws to ensure compliance with their decisions" orders or
awards and those of the Labor )rbiters and 'oluntar# arbitrators" includin the imposition of
administrati'e fines which shall not be less than P+..... nor more than P*."....... ()s amended b#
!ection *3" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 22.. Contempt powers of t!e Secretary of 2abor. 1n the exercise of his powers under this Code"
the !ecretar# of Labor ma# hold an# person in direct or indirect contempt and impose the appropriate
penalties therefor.
Title III
#REA $) "A#$R RE"ATI$NS
Article 22/. $ureau of 2abor Relations. The 2ureau of Labor :elations and the Labor :elations
Di'isions in the reional offices of the Department of Labor" shall ha'e oriinal and exclusi'e authorit#
to act" at their own initiati'e or upon re$uest of either or both parties" on all inter%union and intra%union
conflicts" and all disputes" rie'ances or problems arisin from or affectin labor%manaement relations
in all workplaces" whether aricultural or non%aricultural" except those arisin from the
implementation or interpretation of collecti'e barainin areements which shall be the sub(ect of
rie'ance procedure and6or 'oluntar# arbitration.
The 2ureau shall ha'e fifteen (*+) workin da#s to act on labor cases before it" sub(ect to extension b#
areement of the parties. ()s amended b# !ection *0" :epublic )ct ,o. 6-*+" @arch 5*" */A/).
Article 227. Compromise agreements. )n# compromise settlement" includin those in'ol'in labor
standard laws" 'oluntaril# areed upon b# the parties with the assistance of the 2ureau or the reional
office of the Department of Labor" shall be final and bindin upon the parties. The ,ational Labor
:elations Commission or an# court" shall not assume (urisdiction o'er issues in'ol'ed therein except in
case of non%compliance thereof or if there is prima facie e'idence that the settlement was obtained
throuh fraud" misrepresentation" or coercion.
Article 220. "ndorsement of cases to 2abor Arbiters.
?xcept as pro'ided in pararaph (b) of this )rticle" the Labor )rbiter shall entertain onl# cases
endorsed to him for compulsor# arbitration b# the 2ureau or b# the :eional Director with a written
notice of such indorsement or non%indorsement. The indorsement or non%indorsement of the :eional
Director ma# be appealed to the 2ureau within ten (*.) workin da#s from receipt of the notice.
The parties ma#" at an# time" b# mutual areement" withdraw a case from the Conciliation !ection and
(ointl# submit it to a Labor )rbiter" except deadlocks in collecti'e barainin.K (:epealed b# !ection
*6" 2atas Pambansa 2ilan *3." )uust 5*" */A*)
Article 229. "ssuance of subpoenas. The 2ureau shall ha'e the power to re$uire the appearance of an#
person or the production of an# paper" document or matter rele'ant to a labor dispute under its
(urisdiction" either at the re$uest of an# interested part# or at its own initiati'e.
Article 2-1. Appointment of bureau personnel. The !ecretar# of Labor and ?mplo#ment ma# appoint"
in addition to the present personnel of the 2ureau and the 1ndustrial :elations Di'isions" such number
of examiners and other assistants as ma# be necessar# to carr# out the purpose of the Code. ()s
amended b# !ection *+" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2-1. Registry of unions and file of collective bargaining agreements. The 2ureau shall keep a
reistr# of leitimate labor orani&ations. The 2ureau shall also maintain a file of all collecti'e
barainin areements and other related areements and records of settlement of labor disputes and
copies of orders and decisions of 'oluntar# arbitrators. The file shall be open and accessible to
interested parties under conditions prescribed b# the !ecretar# of Labor and ?mplo#ment" pro'ided that
no specific information submitted in confidence shall be disclosed unless authori&ed b# the !ecretar#"
or when it is at issue in an# (udicial litiation" or when public interest or national securit# so re$uires.
>ithin thirt# (3.) da#s from the execution of a Collecti'e 2arainin )reement" the parties shall
submit copies of the same directl# to the 2ureau or the :eional 7ffices of the Department of Labor
and ?mplo#ment for reistration" accompanied with 'erified proofs of its postin in two conspicuous
places in the place of work and ratification b# the ma(orit# of all the workers in the barainin unit.
The 2ureau or :eional 7ffices shall act upon the application for reistration of such Collecti'e
2arainin )reement within fi'e (+) calendar da#s from receipt thereof. The :eional 7ffices shall
furnish the 2ureau with a cop# of the Collecti'e 2arainin )reement within fi'e (+) da#s from its
submission.
The 2ureau or :eional 7ffice shall assess the emplo#er for e'er# Collecti'e 2arainin )reement a
reistration fee of not less than one thousand pesos (P*"......) or in an# other amount as ma# be
deemed appropriate and necessar# b# the !ecretar# of Labor and ?mplo#ment for the effecti'e and
efficient administration of the Coluntar# )rbitration Proram. )n# amount collected under this
pro'ision shall accrue to the !pecial Coluntar# )rbitration 4und.
The 2ureau shall also maintain a file and shall undertake or assist in the publication of all final
decisions" orders and awards of the !ecretar# of Labor and ?mplo#ment" :eional Directors and the
Commission. ()s amended b# !ection *+" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2-2. %ro!ibition on certification election. The 2ureau shall not entertain an# petition for
certification election or an# other action which ma# disturb the administration of dul# reistered
existin collecti'e barainin areements affectin the parties except under )rticles 5+3" 5+3%) and
5+6 of this Code. ()s amended b# !ection *+" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2--. %rivileged communication. 1nformation and statements made at conciliation proceedins
shall be treated as pri'ileed communication and shall not be used as e'idence in the Commission.
Conciliators and similar officials shall not testif# in an# court or bod# reardin an# matters taken up at
conciliation proceedins conducted b# them.
Title I'
"A#$R $R!ANI6ATI$NS
C+a,ter I
RE!ISTRATI$N AND CANCE""ATI$N
Article 2-4. Re+uirements of registration. )n# applicant labor orani&ation" association or roup of
unions or workers shall ac$uire leal personalit# and shall be entitled to the rihts and pri'ilees
ranted b# law to leitimate labor orani&ations upon issuance of the certificate of reistration based on
the followin re$uirements.
4ift# pesos (P+....) reistration fee=
The names of its officers" their addresses" the principal address of the labor orani&ation" the minutes of
the orani&ational meetins and the list of the workers who participated in such meetins=
The names of all its members comprisin at least twent# percent (5.8) of all the emplo#ees in the
barainin unit where it seeks to operate= ()s amended b# ?xecuti'e 7rder ,o. ***" December 50"
*/A6)
1f the applicant union has been in existence for one or more #ears" copies of its annual financial reports=
and
4our (0) copies of the constitution and b#%laws of the applicant union" minutes of its adoption or
ratification" and the list of the members who participated in it. ()s amended b# 2atas Pambansa 2ilan
*3." )uust 5*" */A*)
Article 2-.. Action on application. The 2ureau shall act on all applications for reistration within
thirt# (3.) da#s from filin.
)ll re$uisite documents and papers shall be certified under oath b# the secretar# or the treasurer of the
orani&ation" as the case ma# be" and attested to b# its president.
Article 2-/. Denial of registration/ appeal. The decision of the Labor :elations Di'ision in the
reional office den#in reistration ma# be appealed b# the applicant union to the 2ureau within ten
(*.) da#s from receipt of notice thereof.
Article 2-7. Additional re+uirements for federations or national unions. !ub(ect to )rticle 53A" if the
applicant for reistration is a federation or a national union" it shall" in addition to the re$uirements of
the precedin )rticles" submit the followin<
Proof of the affiliation of at least ten (*.) locals or chapters" each of which must be a dul# reconi&ed
collecti'e barainin aent in the establishment or industr# in which it operates" supportin the
reistration of such applicant federation or national union= and
The names and addresses of the companies where the locals or chapters operate and the list of all the
members in each compan# in'ol'ed.
Article 2-0. Conditions for registration of federations or national unions. ,o federation or national
union shall be reistered to enae in an# orani&ation acti'it# in more than one industr# in an# area or
reion" and no federation or national union shall be reistered to enae in an# orani&ational acti'it#
in more than one industr# all o'er the countr#.
The federation or national union which meets the re$uirements and conditions herein prescribed ma#
orani&e and affiliate locals and chapters without reisterin such locals or chapters with the 2ureau.
Locals or chapters shall ha'e the same rihts and pri'ilees as if the# were reistered in the 2ureau"
pro'ided that such federation or national union orani&es such locals or chapters within its assined
orani&ational field of acti'it# as ma# be prescribed b# the !ecretar# of Labor.
The 2ureau shall see to it that federations and national unions shall onl# orani&e locals and chapters
within a specific industr# or union.K (:epealed b# ?xecuti'e 7rder ,o. ***" December 50" */A6)
Article 2-0. Cancellation of registration/ appeal. The certificate of reistration of an# leitimate labor
orani&ation" whether national or local" shall be cancelled b# the 2ureau if it has reason to belie'e" after
due hearin" that the said labor orani&ation no loner meets one or more of the re$uirements herein
prescribed.
JThe 2ureau upon appro'al of this Code shall immediatel# institute cancellation proceedins and take
such other steps as ma# be necessar# to restructure all existin reistered labor orani&ations in
accordance with the ob(ecti'e en'isioned abo'e.K (:epealed b# ?xecuti'e 7rder ,o. ***" December
50" */A6)
Article 2-9. 7rounds for cancellation of union registration. The followin shall constitute rounds for
cancellation of union reistration<
@isrepresentation" false statement or fraud in connection with the adoption or ratification of the
constitution and b#%laws or amendments thereto" the minutes of ratification and the list of members
who took part in the ratification=
4ailure to submit the documents mentioned in the precedin pararaph within thirt# (3.) da#s from
adoption or ratification of the constitution and b#%laws or amendments thereto=
@isrepresentation" false statements or fraud in connection with the election of officers" minutes of the
election of officers" the list of 'oters" or failure to submit these documents toether with the list of the
newl# elected6appointed officers and their postal addresses within thirt# (3.) da#s from election=
4ailure to submit the annual financial report to the 2ureau within thirt# (3.) da#s after the closin of
e'er# fiscal #ear and misrepresentation" false entries or fraud in the preparation of the financial report
itself=
)ctin as a labor contractor or enain in the "cabo" s#stem" or otherwise enain in an# acti'it#
prohibited b# law=
?nterin into collecti'e barainin areements which pro'ide terms and conditions of emplo#ment
below minimum standards established b# law=
)skin for or acceptin attorne#9s fees or neotiation fees from emplo#ers=
7ther than for mandator# acti'ities under this Code" checkin off special assessments or an# other fees
without dul# sined indi'idual written authori&ations of the members=
4ailure to submit list of indi'idual members to the 2ureau once a #ear or whene'er re$uired b# the
2ureau= and
4ailure to compl# with re$uirements under )rticles 53- and 53A.
Article 241. #+uity of t!e incumbent. )ll existin federations and national unions which meet the
$ualifications of a leitimate labor orani&ation and none of the rounds for cancellation shall continue
to maintain their existin affiliates reardless of the nature of the industr# and the location of the
affiliates.
C+a,ter II
RI!%TS AND C$NDITI$NS $) MEM#ERS%IP
Article 241. Rig!ts and conditions of members!ip in a labor organi*ation. The followin are the rihts
and conditions of membership in a labor orani&ation<
,o arbitrar# or excessi'e initiation fees shall be re$uired of the members of a leitimate labor
orani&ation nor shall arbitrar#" excessi'e or oppressi'e fine and forfeiture be imposed=
The members shall be entitled to full and detailed reports from their officers and representati'es of all
financial transactions as pro'ided for in the constitution and b#%laws of the orani&ation=
The members shall directl# elect their officers" includin those of the national union or federation" to
which the# or their union is affiliated" b# secret ballot at inter'als of fi'e (+) #ears. ,o $ualification
re$uirements for candidac# to an# position shall be imposed other than membership in ood standin in
sub(ect labor orani&ation. The secretar# or an# other responsible union officer shall furnish the
!ecretar# of Labor and ?mplo#ment with a list of the newl#%elected officers" toether with the
appointi'e officers or aents who are entrusted with the handlin of funds" within thirt# (3.) calendar
da#s after the election of officers or from the occurrence of an# chane in the list of officers of the
labor orani&ation= ()s amended b# !ection *6" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
The members shall determine b# secret ballot" after due deliberation" an# $uestion of ma(or polic#
affectin the entire membership of the orani&ation" unless the nature of the orani&ation or force
ma(eure renders such secret ballot impractical" in which case" the board of directors of the orani&ation
ma# make the decision in behalf of the eneral membership=
,o labor orani&ation shall knowinl# admit as members or continue in membership an# indi'idual
who belons to a sub'ersi'e orani&ation or who is enaed directl# or indirectl# in an# sub'ersi'e
acti'it#=
,o person who has been con'icted of a crime in'ol'in moral turpitude shall be eliible for election as
a union officer or for appointment to an# position in the union=
,o officer" aent or member of a labor orani&ation shall collect an# fees" dues" or other contributions
in its behalf or make an# disbursement of its mone# or funds unless he is dul# authori&ed pursuant to
its constitution and b#%laws=
?'er# pa#ment of fees" dues or other contributions b# a member shall be e'idenced b# a receipt sined
b# the officer or aent makin the collection and entered into the record of the orani&ation to be kept
and maintained for the purpose=
The funds of the orani&ation shall not be applied for an# purpose or ob(ect other than those expressl#
pro'ided b# its constitution and b#%laws or those expressl# authori&ed b# written resolution adopted b#
the ma(orit# of the members at a eneral meetin dul# called for the purpose=
?'er# income or re'enue of the orani&ation shall be e'idenced b# a record showin its source" and
e'er# expenditure of its funds shall be e'idenced b# a receipt from the person to whom the pa#ment is
made" which shall state the date" place and purpose of such pa#ment. !uch record or receipt shall form
part of the financial records of the orani&ation.
)n# action in'ol'in the funds of the orani&ation shall prescribe after three (3) #ears from the date of
submission of the annual financial report to the Department of Labor and ?mplo#ment or from the date
the same should ha'e been submitted as re$uired b# law" whiche'er comes earlier< Pro'ided" That this
pro'ision shall appl# onl# to a leitimate labor orani&ation which has submitted the financial report
re$uirements under this Code< Pro'ided" further" that failure of an# labor orani&ation to compl# with
the periodic financial reports re$uired b# law and such rules and reulations promulated thereunder
six (6) months after the effecti'it# of this )ct shall automaticall# result in the cancellation of union
reistration of such labor orani&ation= ()s amended b# !ection *6" :epublic )ct ,o. 6-*+" @arch 5*"
*/A/)
The officers of an# labor orani&ation shall not be paid an# compensation other than the salaries and
expenses due to their positions as specificall# pro'ided for in its constitution and b#%laws" or in a
written resolution dul# authori&ed b# a ma(orit# of all the members at a eneral membership meetin
dul# called for the purpose. The minutes of the meetin and the list of participants and ballots cast shall
be sub(ect to inspection b# the !ecretar# of Labor or his dul# authori&ed representati'es. )n#
irreularities in the appro'al of the resolutions shall be a round for impeachment or expulsion from
the orani&ation=
The treasurer of an# labor orani&ation and e'er# officer thereof who is responsible for the account of
such orani&ation or for the collection" manaement" disbursement" custod# or control of the funds"
mone#s and other properties of the orani&ation" shall render to the orani&ation and to its members a
true and correct account of all mone#s recei'ed and paid b# him since he assumed office or since the
last da# on which he rendered such account" and of all bonds" securities and other properties of the
orani&ation entrusted to his custod# or under his control. The renderin of such account shall be made<
)t least once a #ear within thirt# (3.) da#s after the close of its fiscal #ear=
)t such other times as ma# be re$uired b# a resolution of the ma(orit# of the members of the
orani&ation= and
Bpon 'acatin his office.
The account shall be dul# audited and 'erified b# affida'it and a cop# thereof shall be furnished the
!ecretar# of Labor.
The books of accounts and other records of the financial acti'ities of an# labor orani&ation shall be
open to inspection b# an# officer or member thereof durin office hours=
,o special assessment or other extraordinar# fees ma# be le'ied upon the members of a labor
orani&ation unless authori&ed b# a written resolution of a ma(orit# of all the members in a eneral
membership meetin dul# called for the purpose. The secretar# of the orani&ation shall record the
minutes of the meetin includin the list of all members present" the 'otes cast" the purpose of the
special assessment or fees and the recipient of such assessment or fees. The record shall be attested to
b# the president.
7ther than for mandator# acti'ities under the Code" no special assessments" attorne#9s fees" neotiation
fees or an# other extraordinar# fees ma# be checked off from an# amount due to an emplo#ee without
an indi'idual written authori&ation dul# sined b# the emplo#ee. The authori&ation should specificall#
state the amount" purpose and beneficiar# of the deduction= and
1t shall be the dut# of an# labor orani&ation and its officers to inform its members on the pro'isions of
its constitution and b#%laws" collecti'e barainin areement" the pre'ailin labor relations s#stem and
all their rihts and obliations under existin labor laws.
4or this purpose" reistered labor orani&ations ma# assess reasonable dues to finance labor relations
seminars and other labor education acti'ities.
)n# 'iolation of the abo'e rihts and conditions of membership shall be a round for cancellation of
union reistration or expulsion of officers from office" whiche'er is appropriate. )t least thirt# percent
(3.8) of the members of a union or an# member or members speciall# concerned ma# report such
'iolation to the 2ureau. The 2ureau shall ha'e the power to hear and decide an# reported 'iolation to
mete the appropriate penalt#.
Criminal and ci'il liabilities arisin from 'iolations of abo'e rihts and conditions of membership shall
continue to be under the (urisdiction of ordinar# courts.
C+a,ter III
RI!%TS $) "E!ITIMATE "A#$R $R!ANI6ATI$NS
Article 242. Rig!ts of legitimate labor organi*ations. ) leitimate labor orani&ation shall ha'e the
riht<
To act as the representati'e of its members for the purpose of collecti'e barainin=
To be certified as the exclusi'e representati'e of all the emplo#ees in an appropriate barainin unit for
purposes of collecti'e barainin=
To be furnished b# the emplo#er" upon written re$uest" with its annual audited financial statements"
includin the balance sheet and the profit and loss statement" within thirt# (3.) calendar da#s from the
date of receipt of the re$uest" after the union has been dul# reconi&ed b# the emplo#er or certified as
the sole and exclusi'e barainin representati'e of the emplo#ees in the barainin unit" or within sixt#
(6.) calendar da#s before the expiration of the existin collecti'e barainin areement" or durin the
collecti'e barainin neotiation=
To own propert#" real or personal" for the use and benefit of the labor orani&ation and its members=
To sue and be sued in its reistered name= and
To undertake all other acti'ities desined to benefit the orani&ation and its members" includin
cooperati'e" housin" welfare and other pro(ects not contrar# to law.
,otwithstandin an# pro'ision of a eneral or special law to the contrar#" the income and the properties
of leitimate labor orani&ations" includin rants" endowments" ifts" donations and contributions the#
ma# recei'e from fraternal and similar orani&ations" local or forein" which are actuall#" directl# and
exclusi'el# used for their lawful purposes" shall be free from taxes" duties and other assessments. The
exemptions pro'ided herein ma# be withdrawn onl# b# a special law expressl# repealin this pro'ision.
()s amended b# !ection *-" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Title '
C$'ERA!E
Article 24-. Coverage and employees6 rig!t to self-organi*ation. )ll persons emplo#ed in commercial"
industrial and aricultural enterprises and in reliious" charitable" medical" or educational institutions"
whether operatin for profit or not" shall ha'e the riht to self%orani&ation and to form" (oin" or assist
labor orani&ations of their own choosin for purposes of collecti'e barainin. )mbulant" intermittent
and itinerant workers" self%emplo#ed people" rural workers and those without an# definite emplo#ers
ma# form labor orani&ations for their mutual aid and protection. ()s amended b# 2atas Pambansa
2ilan -." @a# *" */A.)
Article 244. Rig!t of employees in t!e public service. ?mplo#ees of o'ernment corporations
established under the Corporation Code shall ha'e the riht to orani&e and to barain collecti'el# with
their respecti'e emplo#ers. )ll other emplo#ees in the ci'il ser'ice shall ha'e the riht to form
associations for purposes not contrar# to law. ()s amended b# ?xecuti'e 7rder ,o. ***" December 50"
*/A6)
Article 24.. "neligibility of managerial employees to join any labor organi*ation/ rig!t of supervisory
employees. @anaerial emplo#ees are not eliible to (oin" assist or form an# labor orani&ation.
!uper'isor# emplo#ees shall not be eliible for membership in a labor orani&ation of the rank%and%file
emplo#ees but ma# (oin" assist or form separate labor orani&ations of their own. ()s amended b#
!ection *A" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 24/. Non-abridgment of rig!t to self-organi*ation. 1t shall be unlawful for an# person to
restrain" coerce" discriminate aainst or undul# interfere with emplo#ees and workers in their exercise
of the riht to self%orani&ation. !uch riht shall include the riht to form" (oin" or assist labor
orani&ations for the purpose of collecti'e barainin throuh representati'es of their own choosin
and to enae in lawful concerted acti'ities for the same purpose for their mutual aid and protection"
sub(ect to the pro'isions of )rticle 560 of this Code. ()s amended b# 2atas Pambansa 2ilan -." @a#
*" */A.)
Title 'I
N)AIR "A#$R PRACTICES
C+a,ter I
C$NCEPT
Article 247. Concept of unfair labor practice and procedure for prosecution t!ereof. Bnfair labor
practices 'iolate the constitutional riht of workers and emplo#ees to self%orani&ation" are inimical to
the leitimate interests of both labor and manaement" includin their riht to barain collecti'el# and
otherwise deal with each other in an atmosphere of freedom and mutual respect" disrupt industrial
peace and hinder the promotion of health# and stable labor%manaement relations.
Conse$uentl#" unfair labor practices are not onl# 'iolations of the ci'il rihts of both labor and
manaement but are also criminal offenses aainst the !tate which shall be sub(ect to prosecution and
punishment as herein pro'ided.
!ub(ect to the exercise b# the President or b# the !ecretar# of Labor and ?mplo#ment of the powers
'ested in them b# )rticles 563 and 560 of this Code" the ci'il aspects of all cases in'ol'in unfair labor
practices" which ma# include claims for actual" moral" exemplar# and other forms of damaes"
attorne#9s fees and other affirmati'e relief" shall be under the (urisdiction of the Labor )rbiters. The
Labor )rbiters shall i'e utmost priorit# to the hearin and resolution of all cases in'ol'in unfair
labor practices. The# shall resol'e such cases within thirt# (3.) calendar da#s from the time the# are
submitted for decision.
:eco'er# of ci'il liabilit# in the administrati'e proceedins shall bar reco'er# under the Ci'il Code.
,o criminal prosecution under this Title ma# be instituted without a final (udment findin that an
unfair labor practice was committed" ha'in been first obtained in the precedin pararaph. Durin the
pendenc# of such administrati'e proceedin" the runnin of the period of prescription of the criminal
offense herein penali&ed shall be considered interrupted< Pro'ided" howe'er" that the final (udment in
the administrati'e proceedins shall not be bindin in the criminal case nor be considered as e'idence
of uilt but merel# as proof of compliance of the re$uirements therein set forth. ()s amended b# 2atas
Pambansa 2ilan -." @a# *" */A. and later further amended b# !ection */" :epublic )ct ,o. 6-*+"
@arch 5*" */A/)
C+a,ter II
N)AIR "A#$R PRACTICES $) EMP"$&ERS
Article 240. 5nfair labor practices of employers. 1t shall be unlawful for an emplo#er to commit an#
of the followin unfair labor practice<
To interfere with" restrain or coerce emplo#ees in the exercise of their riht to self%orani&ation=
To re$uire as a condition of emplo#ment that a person or an emplo#ee shall not (oin a labor
orani&ation or shall withdraw from one to which he belons=
To contract out ser'ices or functions bein performed b# union members when such will interfere with"
restrain or coerce emplo#ees in the exercise of their rihts to self%orani&ation=
To initiate" dominate" assist or otherwise interfere with the formation or administration of an# labor
orani&ation" includin the i'in of financial or other support to it or its orani&ers or supporters=
To discriminate in reard to waes" hours of work and other terms and conditions of emplo#ment in
order to encourae or discourae membership in an# labor orani&ation. ,othin in this Code or in an#
other law shall stop the parties from re$uirin membership in a reconi&ed collecti'e barainin aent
as a condition for emplo#ment" except those emplo#ees who are alread# members of another union at
the time of the sinin of the collecti'e barainin areement. ?mplo#ees of an appropriate barainin
unit who are not members of the reconi&ed collecti'e barainin aent ma# be assessed a reasonable
fee e$ui'alent to the dues and other fees paid b# members of the reconi&ed collecti'e barainin
aent" if such non%union members accept the benefits under the collecti'e barainin areement<
Pro'ided" that the indi'idual authori&ation re$uired under )rticle 505" pararaph (o) of this Code shall
not appl# to the non%members of the reconi&ed collecti'e barainin aent=
To dismiss" dischare or otherwise pre(udice or discriminate aainst an emplo#ee for ha'in i'en or
bein about to i'e testimon# under this Code=
To 'iolate the dut# to barain collecti'el# as prescribed b# this Code=
To pa# neotiation or attorne#9s fees to the union or its officers or aents as part of the settlement of
an# issue in collecti'e barainin or an# other dispute= or
To 'iolate a collecti'e barainin areement.
The pro'isions of the precedin pararaph notwithstandin" onl# the officers and aents of
corporations" associations or partnerships who ha'e actuall# participated in" authori&ed or ratified
unfair labor practices shall be held criminall# liable. ()s amended b# 2atas Pambansa 2ilan *3."
)uust 5*" */A*)
C+a,ter III
N)AIR "A#$R PRACTICES $) "A#$R $R!ANI6ATI$NS
Article 249. 5nfair labor practices of labor organi*ations. 1t shall be unfair labor practice for a labor
orani&ation" its officers" aents or representati'es<
To restrain or coerce emplo#ees in the exercise of their riht to self%orani&ation. Eowe'er" a labor
orani&ation shall ha'e the riht to prescribe its own rules with respect to the ac$uisition or retention of
membership=
To cause or attempt to cause an emplo#er to discriminate aainst an emplo#ee" includin discrimination
aainst an emplo#ee with respect to whom membership in such orani&ation has been denied or to
terminate an emplo#ee on an# round other than the usual terms and conditions under which
membership or continuation of membership is made a'ailable to other members=
To 'iolate the dut#" or refuse to barain collecti'el# with the emplo#er" pro'ided it is the representati'e
of the emplo#ees=
To cause or attempt to cause an emplo#er to pa# or deli'er or aree to pa# or deli'er an# mone# or
other thins of 'alue" in the nature of an exaction" for ser'ices which are not performed or not to be
performed" includin the demand for fee for union neotiations=
To ask for or accept neotiation or attorne#9s fees from emplo#ers as part of the settlement of an# issue
in collecti'e barainin or an# other dispute= or
To 'iolate a collecti'e barainin areement.
The pro'isions of the precedin pararaph notwithstandin" onl# the officers" members of o'ernin
boards" representati'es or aents or members of labor associations or orani&ations who ha'e actuall#
participated in" authori&ed or ratified unfair labor practices shall be held criminall# liable. ()s amended
b# 2atas Pambansa 2ilan *3." )uust 5*" */A*)
Title 'II
C$""ECTI'E #AR!AININ! AND ADMINISTRATI$N $) A!REEMENTS
Article 2.1. %rocedure in collective bargaining. The followin procedures shall be obser'ed in
collecti'e barainin<
>hen a part# desires to neotiate an areement" it shall ser'e a written notice upon the other part# with
a statement of its proposals. The other part# shall make a repl# thereto not later than ten (*.) calendar
da#s from receipt of such notice=
!hould differences arise on the basis of such notice and repl#" either part# ma# re$uest for a conference
which shall bein not later than ten (*.) calendar da#s from the date of re$uest.
1f the dispute is not settled" the 2oard shall inter'ene upon re$uest of either or both parties or at its own
initiati'e and immediatel# call the parties to conciliation meetins. The 2oard shall ha'e the power to
issue subpoenas re$uirin the attendance of the parties to such meetins. 1t shall be the dut# of the
parties to participate full# and promptl# in the conciliation meetins the 2oard ma# call=
Durin the conciliation proceedins in the 2oard" the parties are prohibited from doin an# act which
ma# disrupt or impede the earl# settlement of the disputes= and
The 2oard shall exert all efforts to settle disputes amicabl# and encourae the parties to submit their
case to a 'oluntar# arbitrator. ()s amended b# !ection 5." :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2.1. Duty to bargain collectively in t!e absence of collective bargaining agreements. 1n the
absence of an areement or other 'oluntar# arranement pro'idin for a more expeditious manner of
collecti'e barainin" it shall be the dut# of emplo#er and the representati'es of the emplo#ees to
barain collecti'el# in accordance with the pro'isions of this Code.
Article 2.2. (eaning of duty to bargain collectively. The dut# to barain collecti'el# means the
performance of a mutual obliation to meet and con'ene promptl# and expeditiousl# in ood faith for
the purpose of neotiatin an areement with respect to waes" hours of work and all other terms and
conditions of emplo#ment includin proposals for ad(ustin an# rie'ances or $uestions arisin under
such areement and executin a contract incorporatin such areements if re$uested b# either part# but
such dut# does not compel an# part# to aree to a proposal or to make an# concession.
Article 2.-. Duty to bargain collectively w!en t!ere e)ists a collective bargaining agreement. >hen
there is a collecti'e barainin areement" the dut# to barain collecti'el# shall also mean that neither
part# shall terminate nor modif# such areement durin its lifetime. Eowe'er" either part# can ser'e a
written notice to terminate or modif# the areement at least sixt# (6.) da#s prior to its expiration date.
1t shall be the dut# of both parties to keep the status $uo and to continue in full force and effect the
terms and conditions of the existin areement durin the 6.%da# period and6or until a new areement
is reached b# the parties.
Article 2.-3A. Terms of a collective bargaining agreement. )n# Collecti'e 2arainin )reement that
the parties ma# enter into shall" insofar as the representation aspect is concerned" be for a term of fi'e
(+) #ears. ,o petition $uestionin the ma(orit# status of the incumbent barainin aent shall be
entertained and no certification election shall be conducted b# the Department of Labor and
?mplo#ment outside of the sixt#%da# period immediatel# before the date of expir# of such fi'e%#ear
term of the Collecti'e 2arainin )reement. )ll other pro'isions of the Collecti'e 2arainin
)reement shall be reneotiated not later than three (3) #ears after its execution. )n# areement on
such other pro'isions of the Collecti'e 2arainin )reement entered into within six (6) months from
the date of expir# of the term of such other pro'isions as fixed in such Collecti'e 2arainin
)reement" shall retroact to the da# immediatel# followin such date. 1f an# such areement is entered
into be#ond six months" the parties shall aree on the duration of retroacti'it# thereof. 1n case of a
deadlock in the reneotiation of the Collecti'e 2arainin )reement" the parties ma# exercise their
rihts under this Code. ()s amended b# !ection 5*" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2.4. "njunction pro!ibited. ,o temporar# or permanent in(unction or restrainin order in an#
case in'ol'in or rowin out of labor disputes shall be issued b# an# court or other entit#" except as
otherwise pro'ided in )rticles 5*A and 560 of this Code. ()s amended b# 2atas Pambansa 2ilan 55-"
Fune *" */A5)
Article 2... #)clusive bargaining representation and worers6 participation in policy and decision-
maing. The labor orani&ation desinated or selected b# the ma(orit# of the emplo#ees in an
appropriate collecti'e barainin unit shall be the exclusi'e representati'e of the emplo#ees in such
unit for the purpose of collecti'e barainin. Eowe'er" an indi'idual emplo#ee or roup of emplo#ees
shall ha'e the riht at an# time to present rie'ances to their emplo#er.
)n# pro'ision of law to the contrar# notwithstandin" workers shall ha'e the riht" sub(ect to such rules
and reulations as the !ecretar# of Labor and ?mplo#ment ma# promulate" to participate in polic# and
decision%makin processes of the establishment where the# are emplo#ed insofar as said processes will
directl# affect their rihts" benefits and welfare. 4or this purpose" workers and emplo#ers ma# form
labor%manaement councils< Pro'ided" That the representati'es of the workers in such labor%
manaement councils shall be elected b# at least the ma(orit# of all emplo#ees in said establishment.
()s amended b# !ection 55" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2./. Representation issue in organi*ed establis!ments. 1n orani&ed establishments" when a
'erified petition $uestionin the ma(orit# status of the incumbent barainin aent is filed before the
Department of Labor and ?mplo#ment within the sixt#%da# period before the expiration of the
collecti'e barainin areement" the @ed%)rbiter shall automaticall# order an election b# secret ballot
when the 'erified petition is supported b# the written consent of at least twent#%fi'e percent (5+8) of
all the emplo#ees in the barainin unit to ascertain the will of the emplo#ees in the appropriate
barainin unit. To ha'e a 'alid election" at least a ma(orit# of all eliible 'oters in the unit must ha'e
cast their 'otes. The labor union recei'in the ma(orit# of the 'alid 'otes cast shall be certified as the
exclusi'e barainin aent of all the workers in the unit. >hen an election which pro'ides for three or
more choices results in no choice recei'in a ma(orit# of the 'alid 'otes cast" a run%off election shall be
conducted between the labor unions recei'in the two hihest number of 'otes< Pro'ided" that the total
number of 'otes for all contendin unions is at least fift# percent (+.8) of the number of 'otes cast.
)t the expiration of the freedom period" the emplo#er shall continue to reconi&e the ma(orit# status of
the incumbent barainin aent where no petition for certification election is filed. ()s amended b#
!ection 53" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2.7. %etitions in unorgani*ed establis!ments. 1n an# establishment where there is no certified
barainin aent" a certification election shall automaticall# be conducted b# the @ed%)rbiter upon the
filin of a petition b# a leitimate labor orani&ation. ()s amended b# !ection 50" :epublic )ct ,o.
6-*+" @arch 5*" */A/)
Article 2.0. 3!en an employer may file petition. >hen re$uested to barain collecti'el#" an emplo#er
ma# petition the 2ureau for an election. 1f there is no existin certified collecti'e barainin areement
in the unit" the 2ureau shall" after hearin" order a certification election.
)ll certification cases shall be decided within twent# (5.) workin da#s.
The 2ureau shall conduct a certification election within twent# (5.) da#s in accordance with the rules
and reulations prescribed b# the !ecretar# of Labor.
Article 2.9. Appeal from certification election orders. )n# part# to an election ma# appeal the order or
results of the election as determined b# the @ed%)rbiter directl# to the !ecretar# of Labor and
?mplo#ment on the round that the rules and reulations or parts thereof established b# the !ecretar#
of Labor and ?mplo#ment for the conduct of the election ha'e been 'iolated. !uch appeal shall be
decided within fifteen (*+) calendar da#s. ()s amended b# !ection 5+" :epublic )ct ,o. 6-*+" @arch
5*" */A/)
Title 'II3A
!RIE'ANCE MAC%INER& AND '$"NTAR& AR#ITRATI$N
Article 2/1. 7rievance mac!inery and voluntary arbitration. The parties to a Collecti'e 2arainin
)reement shall include therein pro'isions that will ensure the mutual obser'ance of its terms and
conditions. The# shall establish a machiner# for the ad(ustment and resolution of rie'ances arisin
from the interpretation or implementation of their Collecti'e 2arainin )reement and those arisin
from the interpretation or enforcement of compan# personnel policies.
)ll rie'ances submitted to the rie'ance machiner# which are not settled within se'en (-) calendar
da#s from the date of its submission shall automaticall# be referred to 'oluntar# arbitration prescribed
in the Collecti'e 2arainin )reement.
4or this purpose" parties to a Collecti'e 2arainin )reement shall name and desinate in ad'ance a
Coluntar# )rbitrator or panel of Coluntar# )rbitrators" or include in the areement a procedure for the
selection of such Coluntar# )rbitrator or panel of Coluntar# )rbitrators" preferabl# from the listin of
$ualified Coluntar# )rbitrators dul# accredited b# the 2oard. 1n case the parties fail to select a
Coluntar# )rbitrator or panel of Coluntar# )rbitrators" the 2oard shall desinate the Coluntar#
)rbitrator or panel of Coluntar# )rbitrators" as ma# be necessar#" pursuant to the selection procedure
areed upon in the Collecti'e 2arainin )reement" which shall act with the same force and effect as
if the )rbitrator or panel of )rbitrators has been selected b# the parties as described abo'e.
Article 2/1. 8urisdiction of -oluntary Arbitrators or panel of -oluntary Arbitrators. The Coluntar#
)rbitrator or panel of Coluntar# )rbitrators shall ha'e oriinal and exclusi'e (urisdiction to hear and
decide all unresol'ed rie'ances arisin from the interpretation or implementation of the Collecti'e
2arainin )reement and those arisin from the interpretation or enforcement of compan# personnel
policies referred to in the immediatel# precedin article. )ccordinl#" 'iolations of a Collecti'e
2arainin )reement" except those which are ross in character" shall no loner be treated as unfair
labor practice and shall be resol'ed as rie'ances under the Collecti'e 2arainin )reement. 4or
purposes of this article" ross 'iolations of Collecti'e 2arainin )reement shall mean flarant and6or
malicious refusal to compl# with the economic pro'isions of such areement.
The Commission" its :eional 7ffices and the :eional Directors of the Department of Labor and
?mplo#ment shall not entertain disputes" rie'ances or matters under the exclusi'e and oriinal
(urisdiction of the Coluntar# )rbitrator or panel of Coluntar# )rbitrators and shall immediatel# dispose
and refer the same to the ;rie'ance @achiner# or Coluntar# )rbitration pro'ided in the Collecti'e
2arainin )reement.
Article 2/2. 8urisdiction over ot!er labor disputes. The Coluntar# )rbitrator or panel of Coluntar#
)rbitrators" upon areement of the parties" shall also hear and decide all other labor disputes includin
unfair labor practices and barainin deadlocks.
Article 2/23A. %rocedures. The Coluntar# )rbitrator or panel of Coluntar# )rbitrators shall ha'e the
power to hold hearins" recei'e e'idences and take whate'er action is necessar# to resol'e the issue or
issues sub(ect of the dispute" includin efforts to effect a 'oluntar# settlement between parties.
)ll parties to the dispute shall be entitled to attend the arbitration proceedins. The attendance of an#
third part# or the exclusion of an# witness from the proceedins shall be determined b# the Coluntar#
)rbitrator or panel of Coluntar# )rbitrators. Eearin ma# be ad(ourned for cause or upon areement b#
the parties.
Bnless the parties aree otherwise" it shall be mandator# for the Coluntar# )rbitrator or panel of
Coluntar# )rbitrators to render an award or decision within twent# (5.) calendar da#s from the date of
submission of the dispute to 'oluntar# arbitration.
The award or decision of the Coluntar# )rbitrator or panel of Coluntar# )rbitrators shall contain the
facts and the law on which it is based. 1t shall be final and executor# after ten (*.) calendar da#s from
receipt of the cop# of the award or decision b# the parties.
Bpon motion of an# interested part#" the Coluntar# )rbitrator or panel of Coluntar# )rbitrators or the
Labor )rbiter in the reion where the mo'ant resides" in case of the absence or incapacit# of the
Coluntar# )rbitrator or panel of Coluntar# )rbitrators" for an# reason" ma# issue a writ of execution
re$uirin either the sheriff of the Commission or reular courts or an# public official whom the parties
ma# desinate in the submission areement to execute the final decision" order or award.
Article 2/23#. Cost of voluntary arbitration and -oluntary Arbitrator6s fee. The parties to a Collecti'e
2arainin )reement shall pro'ide therein a proportionate sharin scheme on the cost of 'oluntar#
arbitration includin the Coluntar# )rbitrator9s fee. The fixin of fee of Coluntar# )rbitrators" whether
shouldered wholl# b# the parties or subsidi&ed b# the !pecial Coluntar# )rbitration 4und" shall take
into account the followin factors<
,ature of the case=
Time consumed in hearin the case=
Professional standin of the Coluntar# )rbitrator=
Capacit# to pa# of the parties= and
4ees pro'ided for in the :e'ised :ules of Court.
Title 'III
STRI2ES AND "$C2$TS AND )$REI!N IN'$"'EMENT IN TRADE NI$N
ACTI'ITIES
C+a,ter I
STRI2ES AND "$C2$TS
Article 2/-. Stries0 piceting and locouts.
1t is the polic# of the !tate to encourae free trade unionism and free collecti'e barainin.
>orkers shall ha'e the riht to enae in concerted acti'ities for purposes of collecti'e barainin or
for their mutual benefit and protection. The riht of leitimate labor orani&ations to strike and picket
and of emplo#ers to lockout" consistent with the national interest" shall continue to be reconi&ed and
respected. Eowe'er" no labor union ma# strike and no emplo#er ma# declare a lockout on rounds
in'ol'in inter%union and intra%union disputes.
1n case of barainin deadlocks" the dul# certified or reconi&ed barainin aent ma# file a notice of
strike or the emplo#er ma# file a notice of lockout with the @inistr# at least 3. da# before the intended
date thereof. 1n cases of unfair labor practice" the period of notice shall be *+ da#s and in the absence of
a dul# certified or reconi&ed barainin aent" the notice of strike ma# be filed b# an# leitimate labor
orani&ation in behalf of its members. Eowe'er" in case of dismissal from emplo#ment of union
officers dul# elected in accordance with the union constitution and b#%laws" which ma# constitute
union bustin" where the existence of the union is threatened" the *+%da# coolin%off period shall not
appl# and the union ma# take action immediatel#. ()s amended b# ?xecuti'e 7rder ,o. ***"
December 50" */A6)
The notice must be in accordance with such implementin rules and reulations as the @inister of
Labor and ?mplo#ment ma# promulate.
Durin the coolin%off period" it shall be the dut# of the @inistr# to exert all efforts at mediation and
conciliation to effect a 'oluntar# settlement. !hould the dispute remain unsettled until the lapse of the
re$uisite number of da#s from the mandator# filin of the notice" the labor union ma# strike or the
emplo#er ma# declare a lockout.
) decision to declare a strike must be appro'ed b# a ma(orit# of the total union membership in the
barainin unit concerned" obtained b# secret ballot in meetins or referenda called for that purpose. )
decision to declare a lockout must be appro'ed b# a ma(orit# of the board of directors of the
corporation or association or of the partners in a partnership" obtained b# secret ballot in a meetin
called for that purpose. The decision shall be 'alid for the duration of the dispute based on substantiall#
the same rounds considered when the strike or lockout 'ote was taken. The @inistr# ma#" at its own
initiati'e or upon the re$uest of an# affected part#" super'ise the conduct of the secret ballotin. 1n
e'er# case" the union or the emplo#er shall furnish the @inistr# the results of the 'otin at least se'en
da#s before the intended strike or lockout" sub(ect to the coolin%off period herein pro'ided. ()s
amended b# 2atas Pambansa 2ilan *3." )uust 5*" */A* and further amended b# ?xecuti'e 7rder
,o. ***" December 50" */A6)
>hen" in his opinion" there exists a labor dispute causin or likel# to cause a strike or lockout in an
industr# indispensable to the national interest" the !ecretar# of Labor and ?mplo#ment ma# assume
(urisdiction o'er the dispute and decide it or certif# the same to the Commission for compulsor#
arbitration. !uch assumption or certification shall ha'e the effect of automaticall# en(oinin the
intended or impendin strike or lockout as specified in the assumption or certification order. 1f one has
alread# taken place at the time of assumption or certification" all strikin or locked out emplo#ees shall
immediatel# return%to%work and the emplo#er shall immediatel# resume operations and readmit all
workers under the same terms and conditions pre'ailin before the strike or lockout. The !ecretar# of
Labor and ?mplo#ment or the Commission ma# seek the assistance of law enforcement aencies to
ensure compliance with this pro'ision as well as with such orders as he ma# issue to enforce the same.
1n line with the national concern for and the hihest respect accorded to the riht of patients to life and
health" strikes and lockouts in hospitals" clinics and similar medical institutions shall" to e'er# extent
possible" be a'oided" and all serious efforts" not onl# b# labor and manaement but o'ernment as well"
be exhausted to substantiall# minimi&e" if not pre'ent" their ad'erse effects on such life and health"
throuh the exercise" howe'er leitimate" b# labor of its riht to strike and b# manaement to lockout.
1n labor disputes ad'ersel# affectin the continued operation of such hospitals" clinics or medical
institutions" it shall be the dut# of the strikin union or lockin%out emplo#er to pro'ide and maintain
an effecti'e skeletal workforce of medical and other health personnel" whose mo'ement and ser'ices
shall be unhampered and unrestricted" as are necessar# to insure the proper and ade$uate protection of
the life and health of its patients" most especiall# emerenc# cases" for the duration of the strike or
lockout. 1n such cases" therefore" the !ecretar# of Labor and ?mplo#ment ma# immediatel# assume"
within twent# four (50) hours from knowlede of the occurrence of such a strike or lockout"
(urisdiction o'er the same or certif# it to the Commission for compulsor# arbitration. 4or this purpose"
the contendin parties are strictl# en(oined to compl# with such orders" prohibitions and6or in(unctions
as are issued b# the !ecretar# of Labor and ?mplo#ment or the Commission" under pain of immediate
disciplinar# action" includin dismissal or loss of emplo#ment status or pa#ment b# the lockin%out
emplo#er of backwaes" damaes and other affirmati'e relief" e'en criminal prosecution aainst either
or both of them.
The foreoin notwithstandin" the President of the Philippines shall not be precluded from
determinin the industries that" in his opinion" are indispensable to the national interest" and from
inter'enin at an# time and assumin (urisdiction o'er an# such labor dispute in order to settle or
terminate the same.
2efore or at an# stae of the compulsor# arbitration process" the parties ma# opt to submit their dispute
to 'oluntar# arbitration.
The !ecretar# of Labor and ?mplo#ment" the Commission or the 'oluntar# arbitrator shall decide or
resol'e the dispute" as the case ma# be. The decision of the President" the !ecretar# of Labor and
?mplo#ment" the Commission or the 'oluntar# arbitrator shall be final and executor# ten (*.) calendar
da#s after receipt thereof b# the parties. ()s amended b# !ection 5-" :epublic )ct ,o. 6-*+" @arch 5*"
*/A/)
Article 2/4. %ro!ibited activities.
,o labor orani&ation or emplo#er shall declare a strike or lockout without first ha'in barained
collecti'el# in accordance with Title C11 of this 2ook or without first ha'in filed the notice re$uired in
the precedin )rticle or without the necessar# strike or lockout 'ote first ha'in been obtained and
reported to the @inistr#.
,o strike or lockout shall be declared after assumption of (urisdiction b# the President or the @inister
or after certification or submission of the dispute to compulsor# or 'oluntar# arbitration or durin the
pendenc# of cases in'ol'in the same rounds for the strike or lockout.
)n# worker whose emplo#ment has been terminated as a conse$uence of an# unlawful lockout shall be
entitled to reinstatement with full backwaes. )n# union officer who knowinl# participates in an
illeal strike and an# worker or union officer who knowinl# participates in the commission of illeal
acts durin a strike ma# be declared to ha'e lost his emplo#ment status< Pro'ided" That mere
participation of a worker in a lawful strike shall not constitute sufficient round for termination of his
emplo#ment" e'en if a replacement had been hired b# the emplo#er durin such lawful strike.
,o person shall obstruct" impede" or interfere with" b# force" 'iolence" coercion" threats or intimidation"
an# peaceful picketin b# emplo#ees durin an# labor contro'ers# or in the exercise of the riht to self%
orani&ation or collecti'e barainin" or shall aid or abet such obstruction or interference.
,o emplo#er shall use or emplo# an# strike%breaker" nor shall an# person be emplo#ed as a strike%
breaker.
,o public official or emplo#ee" includin officers and personnel of the ,ew )rmed 4orces of the
Philippines or the 1nterated ,ational Police" or armed person" shall brin in" introduce or escort in an#
manner" an# indi'idual who seeks to replace strikers in enterin or lea'in the premises of a strike area"
or work in place of the strikers. The police force shall keep out of the picket lines unless actual 'iolence
or other criminal acts occur therein< Pro'ided" That nothin herein shall be interpreted to pre'ent an#
public officer from takin an# measure necessar# to maintain peace and order" protect life and propert#"
and6or enforce the law and leal order. ()s amended b# ?xecuti'e 7rder ,o. ***" December 50" */A6)
,o person enaed in picketin shall commit an# act of 'iolence" coercion or intimidation or obstruct
the free inress to or eress from the emplo#er9s premises for lawful purposes" or obstruct public
thorouhfares. ()s amended b# 2atas Pambansa 2ilan 55-" Fune *" */A5)
Article 2/.. "mproved offer balloting. 1n an effort to settle a strike" the Department of Labor and
?mplo#ment shall conduct a referendum b# secret ballot on the impro'ed offer of the emplo#er on or
before the 3.th da# of the strike. >hen at least a ma(orit# of the union members 'ote to accept the
impro'ed offer the strikin workers shall immediatel# return to work and the emplo#er shall thereupon
readmit them upon the sinin of the areement.
1n case of a lockout" the Department of Labor and ?mplo#ment shall also conduct a referendum b#
secret ballotin on the reduced offer of the union on or before the 3.th da# of the lockout. >hen at
least a ma(orit# of the board of directors or trustees or the partners holdin the controllin interest in
the case of a partnership 'ote to accept the reduced offer" the workers shall immediatel# return to work
and the emplo#er shall thereupon readmit them upon the sinin of the areement. (1ncorporated b#
!ection 5A" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 2//. Re+uirement for arrest and detention. ?xcept on rounds of national securit# and public
peace or in case of commission of a crime" no union members or union orani&ers ma# be arrested or
detained for union acti'ities without pre'ious consultations with the !ecretar# of Labor.
C+a,ter II
ASSISTANCE T$ "A#$R $R!ANI6ATI$NS
Article 2/7. Assistance by t!e Department of 2abor. The Department of Labor" at the initiati'e of the
!ecretar# of Labor" shall extend special assistance to the orani&ation" for purposes of collecti'e
barainin" of the most underpri'ileed workers who" for reasons of occupation" orani&ational
structure or insufficient incomes" are not normall# co'ered b# ma(or labor orani&ations or federations.
Article 2/0. Assistance by t!e "nstitute of 2abor and (anpower Studies. The 1nstitute of Labor and
@anpower !tudies shall render technical and other forms of assistance to labor orani&ations and
emplo#er orani&ations in the field of labor education" especiall# pertainin to collecti'e barainin"
arbitration" labor standards and the Labor Code of the Philippines in eneral.
C+a,ter III
)$REI!N ACTI'ITIES
Article 2/9. %ro!ibition against aliens/ e)ceptions. )ll aliens" natural or (uridical" as well as forein
orani&ations are strictl# prohibited from enain directl# or indirectl# in all forms of trade union
acti'ities without pre(udice to normal contacts between Philippine labor unions and reconi&ed
international labor centers< Pro'ided" howe'er" That aliens workin in the countr# with 'alid permits
issued b# the Department of Labor and ?mplo#ment" ma# exercise the riht to self%orani&ation and
(oin or assist labor orani&ations of their own choosin for purposes of collecti'e barainin< Pro'ided"
further" That said aliens are nationals of a countr# which rants the same or similar rihts to 4ilipino
workers. ()s amended b# !ection 5/" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 271. Regulation of foreign assistance.
,o forein indi'idual" orani&ation or entit# ma# i'e an# donations" rants or other forms of
assistance" in cash or in kind" directl# or indirectl#" to an# labor orani&ation" roup of workers or an#
auxiliar# thereof" such as cooperati'es" credit unions and institutions enaed in research" education or
communication" in relation to trade union acti'ities" without prior permission b# the !ecretar# of Labor.
"Trade union acti'ities" shall mean<
orani&ation" formation and administration of labor orani&ation=
neotiation and administration of collecti'e barainin areements=
all forms of concerted union action=
orani&in" manain" or assistin union con'entions" meetins" rallies" referenda" teach%ins" seminars"
conferences and institutes=
an# form of participation or in'ol'ement in representation proceedins" representation elections"
consent elections" union elections= and
other acti'ities or actions analoous to the foreoin.
This prohibition shall e$uall# appl# to forein donations" rants or other forms of assistance" in cash or
in kind" i'en directl# or indirectl# to an# emplo#er or emplo#er9s orani&ation to support an# acti'it#
or acti'ities affectin trade unions.
The !ecretar# of Labor shall promulate rules and reulations to reulate and control the i'in and
recei'in of such donations" rants" or other forms of assistance" includin the mandator# reportin of
the amounts of the donations or rants" the specific recipients thereof" the pro(ects or acti'ities
proposed to be supported" and their duration.
Article 271. Applicability to farm tenants and rural worers. The pro'isions of this Title pertainin to
forein orani&ations and acti'ities shall be deemed applicable likewise to all orani&ations of farm
tenants" rural workers" and the like< Pro'ided" That in appropriate cases" the !ecretar# of )rarian
:eform shall exercise the powers and responsibilities 'ested b# this Title in the !ecretar# of Labor.
C+a,ter I'
PENA"TIES )$R 'I$"ATI$N
Article 272. %enalties.
)n# person 'iolatin an# of the pro'isions of )rticle 560 of this Code shall be punished b# a fine of
not less than one thousand pesos (P*"......) nor more than ten thousand pesos (P*."......) and6or
imprisonment for not less than three months nor more than three (3) #ears" or both such fine and
imprisonment" at the discretion of the court. Prosecution under this pro'ision shall preclude prosecution
for the same act under the :e'ised Penal Code" and 'ice 'ersa.
Bpon the recommendation of the @inister of Labor and ?mplo#ment and the @inister of ,ational
Defense" foreiners who 'iolate the pro'isions of this Title shall be sub(ect to immediate and summar#
deportation b# the Commission on 1mmiration and Deportation and shall be permanentl# barred from
re%enterin the countr# without the special permission of the President of the Philippines. ()s amended
b# !ection *6" 2atas Pambansa 2ilan *3. and !ection -" 2atas Pambansa 2ilan 55-)
Title I5
SPECIA" PR$'ISI$NS
Article 27-. Study of labor-management relations. The !ecretar# of Labor shall ha'e the power and it
shall be his dut# to in$uire into<
the existin relations between emplo#ers and emplo#ees in the Philippines=
the rowth of associations of emplo#ees and the effect of such associations upon emplo#er%emplo#ee
relations=
the extent and results of the methods of collecti'e barainin in the determination of terms and
conditions of emplo#ment=
the methods which ha'e been tried b# emplo#ers and associations of emplo#ees for maintainin
mutuall# satisfactor# relations=
desirable industrial practices which ha'e been de'eloped throuh collecti'e barainin and other
'oluntar# arranements=
the possible wa#s of increasin the usefulness and efficienc# of collecti'e barainin for settlin
differences=
the possibilities for the adoption of practical and effecti'e methods of labor%manaement cooperation=
an# other aspects of emplo#er%emplo#ee relations concernin the promotion of harmon# and
understandin between the parties= and
the rele'ance of labor laws and labor relations to national de'elopment.
The !ecretar# of Labor shall also in$uire into the causes of industrial unrest and take all the necessar#
steps within his power as ma# be prescribed b# law to alle'iate the same" and shall from time to time
recommend the enactment of such remedial leislation as in his (udment ma# be desirable for the
maintenance and promotion of industrial peace.
Article 274. -isitorial power. The !ecretar# of Labor and ?mplo#ment or his dul# authori&ed
representati'e is hereb# empowered to in$uire into the financial acti'ities of leitimate labor
orani&ations upon the filin of a complaint under oath and dul# supported b# the written consent of at
least twent# percent (5.8) of the total membership of the labor orani&ation concerned and to examine
their books of accounts and other records to determine compliance or non%compliance with the law and
to prosecute an# 'iolations of the law and the union constitution and b#%laws< Pro'ided" That such
in$uir# or examination shall not be conducted durin the sixt# (6.)%da# freedom period nor within the
thirt# (3.) da#s immediatel# precedin the date of election of union officials. ()s amended b# !ection
3*" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 27.. Tripartism and tripartite conferences.
Tripartism in labor relations is hereb# declared a !tate polic#. Towards this end" workers and emplo#ers
shall" as far as practicable" be represented in decision and polic#%makin bodies of the o'ernment.
The !ecretar# of Labor and ?mplo#ment or his dul# authori&ed representati'es ma#" from time to time"
call a national" reional" or industrial tripartite conference of representati'es of o'ernment" workers
and emplo#ers for the consideration and adoption of 'oluntar# codes of principles desined to promote
industrial peace based on social (ustice or to alin labor mo'ement relations with established priorities
in economic and social de'elopment. 1n callin such conference" the !ecretar# of Labor and
?mplo#ment ma# consult with accredited representati'es of workers and emplo#ers. ()s amended b#
!ection 35" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 27/. 7overnment employees. The terms and conditions of emplo#ment of all o'ernment
emplo#ees" includin emplo#ees of o'ernment%owned and controlled corporations" shall be o'erned
b# the Ci'il !er'ice Law" rules and reulations. Their salaries shall be standardi&ed b# the ,ational
)ssembl# as pro'ided for in the ,ew Constitution. Eowe'er" there shall be no reduction of existin
waes" benefits and other terms and conditions of emplo#ment bein en(o#ed b# them at the time of the
adoption of this Code.
Article 277. (iscellaneous provisions.
)ll unions are authori&ed to collect reasonable membership fees" union dues" assessments and fines and
other contributions for labor education and research" mutual death and hospitali&ation benefits" welfare
fund" strike fund and credit and cooperati'e undertakins. ()s amended b# !ection 33" :epublic )ct
,o. 6-*+" @arch 5*" */A/)
!ub(ect to the constitutional riht of workers to securit# of tenure and their riht to be protected aainst
dismissal except for a (ust and authori&ed cause and without pre(udice to the re$uirement of notice
under )rticle 5A3 of this Code" the emplo#er shall furnish the worker whose emplo#ment is souht to
be terminated a written notice containin a statement of the causes for termination and shall afford the
latter ample opportunit# to be heard and to defend himself with the assistance of his representati'e if he
so desires in accordance with compan# rules and reulations promulated pursuant to uidelines set b#
the Department of Labor and ?mplo#ment. )n# decision taken b# the emplo#er shall be without
pre(udice to the riht of the worker to contest the 'alidit# or lealit# of his dismissal b# filin a
complaint with the reional branch of the ,ational Labor :elations Commission. The burden of
pro'in that the termination was for a 'alid or authori&ed cause shall rest on the emplo#er. The
!ecretar# of the Department of Labor and ?mplo#ment ma# suspend the effects of the termination
pendin resolution of the dispute in the e'ent of a prima facie findin b# the appropriate official of the
Department of Labor and ?mplo#ment before whom such dispute is pendin that the termination ma#
cause a serious labor dispute or is in implementation of a mass la#%off. ()s amended b# !ection 33"
:epublic )ct ,o. 6-*+" @arch 5*" */A/)
)n# emplo#ee" whether emplo#ed for a definite period or not" shall" beinnin on his first da# of
ser'ice" be considered as an emplo#ee for purposes of membership in an# labor union. ()s amended b#
!ection 33" :epublic )ct ,o. 6-*+)
,o docket fee shall be assessed in labor standards disputes. 1n all other disputes" docket fees ma# be
assessed aainst the filin part#" pro'ided that in barainin deadlock" such fees shall be shared e$uall#
b# the neotiatin parties.
The @inister of Labor and ?mplo#ment and the @inister of the 2udet shall cause to be created or
reclassified in accordance with law such positions as ma# be necessar# to carr# out the ob(ecti'es of
this Code and cause the upradin of the salaries of the personnel in'ol'ed in the Labor :elations
!#stem of the @inistr#. 4unds needed for this purpose shall be pro'ided out of the !pecial )cti'ities
4und appropriated b# 2atas Pambansa 2l. A. and from annual appropriations thereafter. (1ncorporated
b# 2atas Pambansa 2ilan *3." )uust 5*" */A*)
) special Coluntar# )rbitration 4und is hereb# established in the 2oard to subsidi&e the cost of
'oluntar# arbitration in cases in'ol'in the interpretation and implementation of the Collecti'e
2arainin )reement" includin the )rbitrator9s fees" and for such other related purposes to promote
and de'elop 'oluntar# arbitration. The 2oard shall administer the !pecial Coluntar# )rbitration 4und in
accordance with the uidelines it ma# adopt upon the recommendation of the Council" which
uidelines shall be sub(ect to the appro'al of the !ecretar# of Labor and ?mplo#ment. Continuin
funds needed for this purpose in the initial #earl# amount of fifteen million pesos (P*+"..."......)
shall be pro'ided in the */A/ annual eneral appropriations acts.
The amount of subsid# in appropriate cases shall be determined b# the 2oard in accordance with
established uidelines issued b# it upon the recommendation of the Council.
The 4und shall also be utili&ed for the operation of the Council" the trainin and education of Coluntar#
)rbitrators" and the Coluntar# )rbitration Proram. ()s amended b# !ection 33" :epublic )ct ,o.
6-*+" @arch 5*" */A/)
The @inistr# shall help promote and raduall# de'elop" with the areement of labor orani&ations and
emplo#ers" labor%manaement cooperation prorams at appropriate le'els of the enterprise based on the
shared responsibilit# and mutual respect in order to ensure industrial peace and impro'ement in
producti'it#" workin conditions and the $ualit# of workin life. (1ncorporated b# 2atas Pambansa
2ilan *3." )uust 5*" */A*)
1n establishments where no leitimate labor orani&ation exists" labor%manaement committees ma# be
formed 'oluntaril# b# workers and emplo#ers for the purpose of promotin industrial peace. The
Department of Labor and ?mplo#ment shall endea'or to enlihten and educate the workers and
emplo#ers on their rihts and responsibilities throuh labor education with emphasis on the polic#
thrusts of this Code. ()s amended b# !ection 33" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
To ensure speed# labor (ustice" the periods pro'ided in this Code within which decisions or resolutions
of labor relations cases or matters should be rendered shall be mandator#. 4or this purpose" a case or
matter shall be deemed submitted for decision or resolution upon the filin of the last pleadin or
memorandum re$uired b# the rules of the Commission or b# the Commission itself" or the Labor
)rbiter" or the Director of the 2ureau of Labor :elations or @ed%)rbiter" or the :eional Director.
Bpon expiration of the correspondin period" a certification statin wh# a decision or resolution has not
been rendered within the said period shall be issued forthwith b# the Chairman of the Commission" the
?xecuti'e Labor )rbiter" or the Director of the 2ureau of Labor :elations or @ed%)rbiter" or the
:eional Director" as the case ma# be" and a cop# thereof ser'ed upon the parties.
Despite the expiration of the applicable mandator# period" the aforesaid officials shall" without
pre(udice to an# liabilit# which ma# ha'e been incurred as a conse$uence thereof" see to it that the case
or matter shall be decided or resol'ed without an# further dela#. (1ncorporated b# !ection 33" :epublic
)ct ,o. 6-*+" @arch 5*" */A/)
#$$2 SI5
P$ST EMP"$&MENT
Title I
TERMINATI$N $) EMP"$&MENT
Article 270. Coverage. The pro'isions of this Title shall appl# to all establishments or undertakins"
whether for profit or not.
Article 279. Security of tenure. 1n cases of reular emplo#ment" the emplo#er shall not terminate the
ser'ices of an emplo#ee except for a (ust cause or when authori&ed b# this Title. )n emplo#ee who is
un(ustl# dismissed from work shall be entitled to reinstatement without loss of seniorit# rihts and
other pri'ilees and to his full backwaes" inclusi'e of allowances" and to his other benefits or their
monetar# e$ui'alent computed from the time his compensation was withheld from him up to the time
of his actual reinstatement. ()s amended b# !ection 30" :epublic )ct ,o. 6-*+" @arch 5*" */A/)
Article 201. Regular and casual employment. The pro'isions of written areement to the contrar#
notwithstandin and reardless of the oral areement of the parties" an emplo#ment shall be deemed to
be reular where the emplo#ee has been enaed to perform acti'ities which are usuall# necessar# or
desirable in the usual business or trade of the emplo#er" except where the emplo#ment has been fixed
for a specific pro(ect or undertakin the completion or termination of which has been determined at the
time of the enaement of the emplo#ee or where the work or ser'ice to be performed is seasonal in
nature and the emplo#ment is for the duration of the season.
)n emplo#ment shall be deemed to be casual if it is not co'ered b# the precedin pararaph< Pro'ided"
That an# emplo#ee who has rendered at least one #ear of ser'ice" whether such ser'ice is continuous or
broken" shall be considered a reular emplo#ee with respect to the acti'it# in which he is emplo#ed and
his emplo#ment shall continue while such acti'it# exists.
Article 201. %robationary employment. Probationar# emplo#ment shall not exceed six (6) months from
the date the emplo#ee started workin" unless it is co'ered b# an apprenticeship areement stipulatin a
loner period. The ser'ices of an emplo#ee who has been enaed on a probationar# basis ma# be
terminated for a (ust cause or when he fails to $ualif# as a reular emplo#ee in accordance with
reasonable standards made known b# the emplo#er to the emplo#ee at the time of his enaement. )n
emplo#ee who is allowed to work after a probationar# period shall be considered a reular emplo#ee.
Article 202. Termination by employer. )n emplo#er ma# terminate an emplo#ment for an# of the
followin causes<
!erious misconduct or willful disobedience b# the emplo#ee of the lawful orders of his emplo#er or
representati'e in connection with his work=
;ross and habitual nelect b# the emplo#ee of his duties=
4raud or willful breach b# the emplo#ee of the trust reposed in him b# his emplo#er or dul# authori&ed
representati'e=
Commission of a crime or offense b# the emplo#ee aainst the person of his emplo#er or an#
immediate member of his famil# or his dul# authori&ed representati'es= and
7ther causes analoous to the foreoin.
Article 20-. Closure of establis!ment and reduction of personnel. The emplo#er ma# also terminate the
emplo#ment of an# emplo#ee due to the installation of labor%sa'in de'ices" redundanc#" retrenchment
to pre'ent losses or the closin or cessation of operation of the establishment or undertakin unless the
closin is for the purpose of circum'entin the pro'isions of this Title" b# ser'in a written notice on
the workers and the @inistr# of Labor and ?mplo#ment at least one (*) month before the intended date
thereof. 1n case of termination due to the installation of labor%sa'in de'ices or redundanc#" the worker
affected thereb# shall be entitled to a separation pa# e$ui'alent to at least his one (*) month pa# or to at
least one (*) month pa# for e'er# #ear of ser'ice" whiche'er is hiher. 1n case of retrenchment to
pre'ent losses and in cases of closures or cessation of operations of establishment or undertakin not
due to serious business losses or financial re'erses" the separation pa# shall be e$ui'alent to one (*)
month pa# or at least one%half (*65) month pa# for e'er# #ear of ser'ice" whiche'er is hiher. ) fraction
of at least six (6) months shall be considered one (*) whole #ear.
Article 204. Disease as ground for termination. )n emplo#er ma# terminate the ser'ices of an
emplo#ee who has been found to be sufferin from an# disease and whose continued emplo#ment is
prohibited b# law or is pre(udicial to his health as well as to the health of his co%emplo#ees< Pro'ided"
That he is paid separation pa# e$ui'alent to at least one (*) month salar# or to one%half (*65) month
salar# for e'er# #ear of ser'ice" whiche'er is reater" a fraction of at least six (6) months bein
considered as one (*) whole #ear.
Article 20.. Termination by employee.
)n emplo#ee ma# terminate without (ust cause the emplo#ee%emplo#er relationship b# ser'in a
written notice on the emplo#er at least one (*) month in ad'ance. The emplo#er upon whom no such
notice was ser'ed ma# hold the emplo#ee liable for damaes.
)n emplo#ee ma# put an end to the relationship without ser'in an# notice on the emplo#er for an# of
the followin (ust causes<
!erious insult b# the emplo#er or his representati'e on the honor and person of the emplo#ee=
1nhuman and unbearable treatment accorded the emplo#ee b# the emplo#er or his representati'e=
Commission of a crime or offense b# the emplo#er or his representati'e aainst the person of the
emplo#ee or an# of the immediate members of his famil#= and
7ther causes analoous to an# of the foreoin.
Article 20/. 3!en employment not deemed terminated. The bona%fide suspension of the operation of a
business or undertakin for a period not exceedin six (6) months" or the fulfillment b# the emplo#ee of
a militar# or ci'ic dut# shall not terminate emplo#ment. 1n all such cases" the emplo#er shall reinstate
the emplo#ee to his former position without loss of seniorit# rihts if he indicates his desire to resume
his work not later than one (*) month from the resumption of operations of his emplo#er or from his
relief from the militar# or ci'ic dut#.
Title II
RETIREMENT )R$M T%E SER'ICE
Article 207. Retirement. )n# emplo#ee ma# be retired upon reachin the retirement ae established in
the collecti'e barainin areement or other applicable emplo#ment contract.
1n case of retirement" the emplo#ee shall be entitled to recei'e such retirement benefits as he ma# ha'e
earned under existin laws and an# collecti'e barainin areement and other areements< Pro'ided"
howe'er" That an emplo#ee9s retirement benefits under an# collecti'e barainin and other areements
shall not be less than those pro'ided therein.
1n the absence of a retirement plan or areement pro'idin for retirement benefits of emplo#ees in the
establishment" an emplo#ee upon reachin the ae of sixt# (6.) #ears or more" but not be#ond sixt#%
fi'e (6+) #ears which is hereb# declared the compulsor# retirement ae" who has ser'ed at least fi'e (+)
#ears in the said establishment" ma# retire and shall be entitled to retirement pa# e$ui'alent to at least
one%half (*65) month salar# for e'er# #ear of ser'ice" a fraction of at least six (6) months bein
considered as one whole #ear.
Bnless the parties pro'ide for broader inclusions" the term Lone%half (*65) month salar#9 shall mean
fifteen (*+) da#s plus one%twelfth (*6*5) of the *3th month pa# and the cash e$ui'alent of not more
than fi'e (+) da#s of ser'ice incenti'e lea'es.
:etail" ser'ice and aricultural establishments or operations emplo#in not more than ten (*.)
emplo#ees or workers are exempted from the co'erae of this pro'ision.
Ciolation of this pro'ision is hereb# declared unlawful and sub(ect to the penal pro'isions under )rticle
5AA of this Code.
#$$2 SE'EN
TRANSIT$R& AND )INA" PR$'ISI$NS
Title I
PENA" PR$'ISI$NS AND "IA#I"ITIES
Article 200. %enalties. ?xcept as otherwise pro'ided in this Code" or unless the acts complained of
hine on a $uestion of interpretation or implementation of ambiuous pro'isions of an existin
collecti'e barainin areement" an# 'iolation of the pro'isions of this Code declared to be unlawful or
penal in nature shall be punished with a fine of not less than 7ne Thousand Pesos (P*"......) nor more
than Ten Thousand Pesos (P*."......) or imprisonment of not less than three months nor more than
three #ears" or both such fine and imprisonment at the discretion of the court.
1n addition to such penalt#" an# alien found uilt# shall be summaril# deported upon completion of
ser'ice of sentence.
)n# pro'ision of law to the contrar# notwithstandin" an# criminal offense punished in this Code" shall
be under the concurrent (urisdiction of the @unicipal or Cit# Courts and the Courts of 4irst 1nstance.
()s amended b# !ection 3" 2atas Pambansa 2ilan -.)
Article 209. 3!o are liable w!en committed by ot!er t!an natural person. 1f the offense is committed
b# a corporation" trust" firm" partnership" association or an# other entit#" the penalt# shall be imposed
upon the uilt# officer or officers of such corporation" trust" firm" partnership" association or entit#.
Title II
PRESCRIPTI$N $) $))ENSES AND C"AIMS
Article 291. &ffenses. 7ffenses penali&ed under this Code and the rules and reulations issued pursuant
thereto shall prescribe in three (3) #ears.
)ll unfair labor practice arisin from 2ook C shall be filed with the appropriate aenc# within one (*)
#ear from accrual of such unfair labor practice= otherwise" the# shall be fore'er barred.
Article 291. (oney claims. )ll mone# claims arisin from emplo#er%emplo#ee relations accruin
durin the effecti'it# of this Code shall be filed within three (3) #ears from the time the cause of action
accrued= otherwise the# shall be fore'er barred.
)ll mone# claims accruin prior to the effecti'it# of this Code shall be filed with the appropriate
entities established under this Code within one (*) #ear from the date of effecti'it#" and shall be
processed or determined in accordance with the implementin rules and reulations of the Code=
otherwise" the# shall be fore'er barred.
>orkmen9s compensation claims accruin prior to the effecti'it# of this Code and durin the period
from ,o'ember *" */-0 up to December 3*" */-0" shall be filed with the appropriate reional offices
of the Department of Labor not later than @arch 3*" */-+= otherwise" the# shall fore'er be barred. The
claims shall be processed and ad(udicated in accordance with the law and rules at the time their causes
of action accrued.
Article 292. "nstitution of money claims. @one# claims specified in the immediatel# precedin )rticle
shall be filed before the appropriate entit# independentl# of the criminal action that ma# be instituted in
the proper courts.
Pendin the final determination of the merits of mone# claims filed with the appropriate entit#" no ci'il
action arisin from the same cause of action shall be filed with an# court. This pro'ision shall not appl#
to emplo#ees compensation case which shall be processed and determined strictl# in accordance with
the pertinent pro'isions of this Code.
Title III
TRANSIT$R& AND )INA" PR$'ISI$NS
Article 29-. Application of law enacted prior to t!is Code. )ll actions or claims accruin prior to the
effecti'it# of this Code shall be determined in accordance with the laws in force at the time of their
accrual.
Article 294. Secretary of 2abor to initiate integration of maternity leave benefits. >ithin six (6)
months after this Code takes effect" the !ecretar# of Labor shall initiate such measures as ma# be
necessar# for the interation of maternit# lea'e benefits into the !ocial !ecurit# !#stem" in the case of
pri'ate emplo#ment" and the ;o'ernment !er'ice 1nsurance !#stem" in the case of public emplo#ment.
Article 29.. 4undin of the 7'erseas ?mplo#ment De'elopment 2oard and the ,ational !eamen9s
2oard referred to in )rticles *- and 5." respecti'el#" of this Code shall initiall# be funded out of the
unprorammed fund of the Department of Labor and the ,ational @anpower and Douth Council.
Article 29/. Termination of t!e wormen6s compensation program. The 2ureau of >orkmen9s
Compensation" >orkmen9s Compensation Commission" and >orkmen9s Compensation Bnits in the
reional offices of the Department of Labor shall continue to exercise the functions and the respecti'e
(urisdictions o'er workmen9s compensation cases 'ested upon them b# )ct ,o. 305A" as amended"
otherwise known as the >orkmen9s Compensation )ct until @arch 3*" */-6. Likewise" the term of
office of incumbent members of the >orkmen9s Compensation Commission" includin its Chairman
and an# commissioner deemed retired as of December 3*" */-+" as well as the present emplo#ees and
officials of the 2ureau of >orkmen9s Compensation" >orkmen9s Compensation Commission and the
>orkmen9s Compensation Bnits shall continue up to that date. Thereafter" said offices shall be
considered abolished and all officials and personnel thereof shall be transferred to and mandatoril#
absorbed b# the Department of Labor" sub(ect to Presidential Decree ,o. 6" Letters of 1nstructions ,os.
*0 and *0%) and the Ci'il !er'ice Law and rules.
!uch amount as ma# be necessar# to co'er the operational expenses of the 2ureau of >orkmen9s
Compensation and the >orkmen9s Compensation Bnits" includin the salaries of incumbent personnel
for the period up to @arch 3*" */-6 shall be appropriated from the unprorammed funds of the
Department of Labor.
Article 297. Continuation of insurance policies and indemnity bonds. )ll workmen9s compensation
insurance policies and indemnit# bonds for self%insured emplo#ers existin upon the effecti'it# of this
Code shall remain in force and effect until the expiration dates of such policies or the lapse of the
period of such bonds" as the case ma# be" but in no case be#ond December 3*" */-0. Claims ma# be
filed aainst the insurance carriers and6or self%insured emplo#ers for causes of action which accrued
durin the existence of said policies or authorit# to self%insure.
Article 290. Abolition of t!e Court of "ndustrial Relations and t!e National 2abor Relations
Commission. The Court of 1ndustrial :elations and the ,ational Labor :elations Commission
established under Presidential Decree ,o. 5* are hereb# abolished. )ll unexpended funds" properties"
e$uipment and records of the Court of 1ndustrial :elations" and such of its personnel as ma# be
necessar#" are hereb# transferred to the Commission and to its reional branches. )ll unexpended
funds" properties and e$uipment of the ,ational Labor :elations Commission established under
Presidential Decree ,o. 5* are transferred to the 2ureau of Labor :elations. Personnel not absorbed b#
or transferred to the Commission shall en(o# benefits ranted under existin laws.
Article 299. Disposition of pending cases. )ll cases pendin before the Court of 1ndustrial :elations
and the ,ational Labor :elations Commission established under Presidential Decree ,o. 5* on the date
of effecti'it# of this Code shall be transferred to and processed b# the correspondin labor relations
di'isions or the ,ational Labor :elations Commission created under this Code ha'in coni&ance of
the same in accordance with the procedure laid down herein and its implementin rules and reulations.
Cases on labor relations on appeal with the !ecretar# of Labor or the 7ffice of the President of the
Philippines as of the date of effecti'it# of this Code shall remain under their respecti'e (urisdictions
and shall be decided in accordance with the rules and reulations in force at the time of appeal.
)ll workmen9s compensation cases pendin before the >orkmen9s Compensation Bnits in the reional
offices of the Department of Labor and those pendin before the >orkmen9s Compensation
Commission as of @arch 3*" */-+" shall be processed and ad(udicated in accordance with the law" rules
and procedure existin prior to the effecti'it# of the ?mplo#ees Compensation and !tate 1nsurance
4und.
Article -11. %ersonnel w!ose services are terminated. Personnel of aencies or an# of their
subordinate units whose ser'ices are terminated as a result of the implementation of this Code shall
en(o# the rihts and protection pro'ided in !ections + and 6 of :epublic )ct numbered fift#%four
hundred and thirt# fi'e and such other pertinent laws" rules and reulations. 1n an# case" no la#%off
shall be effected until funds to co'er the ratuit# and6or retirement benefits of those laid off are dul#
certified as a'ailable.
Article -11. Separability provisions. 1f an# pro'ision or part of this Code" or the application thereof to
an# person or circumstance" is held in'alid" the remainder of this code" or the application of such
pro'ision or part to other persons or circumstances" shall not be affected thereb#.
Article -12. Repealing clause. )ll labor laws not adopted as part of this Code either directl# or b#
reference are hereb# repealed. )ll pro'isions of existin laws" orders" decrees" rules and reulations
inconsistent herewith are likewise repealed.
Done in the Cit# of @anila" this *st da# of @a# in the #ear of our Lord" nineteen hundred and se'ent#
four.