Professional Documents
Culture Documents
V. Conditions for Employment at least one million (1,000,000) or in hospitals and clinics with a
bed capacity of at least one hundred (100) shall hold regular
office hours for eight (8) hours a day, for five (5) days a week,
1 Hours of Work, 2 Night Work, 3 Overtime, 4 Rest exclusive of time for meals, except where the exigencies of the
Period, 5 Holidays, 6 SIL, 7 Solo Parents, 8 Service service require that such personnel work for six (6) days or
Charge forty-eight (48) hours, in which case, they shall be entitled to an
additional compensation of at least thirty percent (30%) of their
Art 82. Coverage. The provisions of this Title shall apply to regular wage for work on the sixth day. For purposes of this
employees in all establishments and undertakings whether for Article, health personnel shall include resident physicians,
profit or not, but not to government employees, managerial nurses, nutritionists, dietitians, pharmacists, social workers,
employees, field personnel, members of the family of the laboratory technicians, paramedical technicians, psychologists,
employer who are dependent on him for support, domestic midwives, attendants and all other hospital or clinic personnel.
helpers, persons in the personal service of another, and workers
who are paid by results as determined by the Secretary of Labor Art 84. Hours worked. Hours worked shall include (a) all time
in appropriate regulations. during which an employee is required to be on duty or to be at a
prescribed workplace; and (b) all time during which an
As used herein, managerial employees refer to those whose employee is suffered or permitted to work.
primary duty consists of the management of the establishment
in which they are employed or of a department or subdivision Rest periods of short duration during working hours shall be
thereof, and to other officers or members of the managerial counted as hours worked.
staff.
Art 85. Meal periods. Subject to such regulations as the
Field personnel shall refer to non-agricultural employees who Secretary of Labor may prescribe, it shall be the duty of every
regularly perform their duties away from the principal place of employer to give his employees not less than sixty (60) minutes
business or branch office of the employer and whose actual time-off for their regular meals.
hours of work in the field cannot be determined with reasonable
certainty. 2 Night Work
1 Hours of Work Art 86. Night shift differential. Every employee shall be paid a
night shift differential of not less than ten percent (10%) of his
Art 83. Normal hours of work. The normal hours of work of regular wage for each hour of work performed between ten
any employee shall not exceed eight (8) hours a day. oclock in the evening and six oclock in the morning.
3 Overtime (d) When the work is necessary to prevent loss or damage to
perishable goods; and
Art 87. Overtime work. Work may be performed beyond eight
(8) hours a day provided that the employee is paid for the (e) Where the completion or continuation of the work started
overtime work, an additional compensation equivalent to his before the eighth hour is necessary to prevent serious
regular wage plus at least twenty-five percent (25%) thereof. obstruction or prejudice to the business or operations of the
Work performed beyond eight hours on a holiday or rest day employer.
shall be paid an additional compensation equivalent to the rate
of the first eight hours on a holiday or rest day plus at least thirty Any employee required to render overtime work under this
percent (30%) thereof. Article shall be paid the additional compensation required in this
Chapter.
Art 88. Undertime not offset by overtime. Undertime work on
any particular day shall not be offset by overtime work on any Art 90. Computation of additional compensation. For
other day. Permission given to the employee to go on leave on purposes of computing overtime and other additional
some other day of the week shall not exempt the employer from remuneration as required by this Chapter, the regular wage of
paying the additional compensation required in this Chapter. an employee shall include the cash wage only, without
deduction on account of facilities provided by the employer.
Art 89. Emergency overtime work. Any employee may be
required by the employer to perform overtime work in any of the D.A. No 2, Series 2009. Guidelines on the
following cases: Adoption of Flexible Work.
(a) When the country is at war or when any other national or The flexible work arrangements which labor and management
local emergency has been declared by the National Assembly may consider are the following:
or the Chief Executive;
1. Compressed Workweek wherein the normal workweek is
(b) When it is necessary to prevent loss of life or property or in reduced to less than six days but the total number of work hours
case of imminent danger to public safety due to an actual or of 48 hours per week shall remain. The normal workday is
impending emergency in the locality caused by serious increased to more than eight hours but not to exceed 12 hours,
accidents, fire, flood, typhoon, earthquake, epidemic, or other without corresponding overtime premium. The concept can be
disaster or calamity; chanroblespublishingcompany
adjusted accordingly depending on the normal workweek of the
company pursuant to the provisions of Department Advisory No.
(c) When there is urgent work to be performed on machines, 02, series of 2004, dated 2 December 2004.
installations, or equipment, in order to avoid serious loss or
damage to the employer or some other cause of similar nature;
2. Reduction of Workdays wherein the normal workdays per Art 92. When employer may require work on a rest day. The
week are reduced but should not last for more than six months. employer may require his employees to work on any day:
3. Rotation of Workers wherein the employees are rotated or (a) In case of actual or impending emergencies caused by
alternately provided work within the workweek. serious accident, fire, flood, typhoon, earthquake, epidemic or
other disaster or calamity to prevent loss of life and property, or
4. Forced Leave wherein the employees are required to go on imminent danger to public safety;
leave for several days or weeks utilizing their leave credits if
there are any. (b) In cases of urgent work to be performed on the machinery,
equipment, or installation, to avoid serious loss which the
5. Broken-time schedule wherein the work schedule is not employer would otherwise suffer;
continuous but the work hours within the day or week remain.
(c) In the event of abnormal pressure of work due to special
6. Flexi-holidays schedule wherein the employees agree to avail circumstances, where the employer cannot ordinarily be
the holidays at some other days provided there is no diminution expected to resort to other measures;
of existing benefits as a result of such arrangement.
(d) To prevent loss or damage to perishable goods;
4 Rest Period
(e) Where the nature of the work requires continuous operations
Art 91. Right to weekly rest day. and the stoppage of work may result in irreparable injury or loss
to the employer; and
(a) It shall be the duty of every employer, whether operating for
profit or not, to provide each of his employees a rest period of (f) Under other circumstances analogous or similar to the
not less than twenty-four (24) consecutive hours after every six foregoing as determined by the Secretary of Labor and
(6) consecutive normal work days. Employment.
(b) The employer shall determine and schedule the weekly rest Art 93. Compensation for rest day, Sunday or holiday work.
day of his employees subject to collective bargaining agreement
and to such rules and regulations as the Secretary of Labor and (a) Where an employee is made or permitted to work on his
Employment may provide. However, the employer shall respect scheduled rest day, he shall be paid an additional compensation
the preference of employees as to their weekly rest day when of at least thirty percent (30%) of his regular wage. An employee
such preference is based on religious grounds. shall be entitled to such additional compensation for work
performed on Sunday only when it is his established rest day.
(b) When the nature of the work of the employee is such that he November, the twenty- fifth and thirtieth of December and the
has no regular workdays and no regular rest days can be day designated by law for holding a general election.
scheduled, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage for work E.O. No 203, 1987.
performed on Sundays and holidays.
List of Regular Holidays and Special Days. (c/o
(c) Work performed on any special holiday shall be paid an
Cory)
additional compensation of at least thirty percent (30%) of the
regular wage of the employee. Where such holiday work falls on
A. Regular Holidays
the employees scheduled rest day, he shall be entitled to an
New Years Day Jan 1
additional compensation of at least fifty per cent (50%) of his Maundy Thursday ~Movable~
regular wage.
Good Friday ~Movable~
Araw ng Kagitingan April 9
(d) Where the collective bargaining agreement or other
Labor Day May 1
applicable employment contract stipulates the payment of a
Independence Day June 12
higher premium pay than that prescribed under this Article, the
National Heroes Day Last Sunday of August
employer shall pay such higher rate.
Bonifacio Day Nov 30
5 Holidays Christmas Day Dec 25
Rizal Day Dec 30
Art 94. Right to holiday pay.
B. Nationwide Special Days
(a) Every worker shall be paid his regular daily wage during
All Saints Day Nov 1
regular holidays, except in retail and service establishments
Last Day of the Year Dec 31
regularly employing less than ten (10) workers;
(7) Parent left solo or alone with the responsibility of parenthood (e) "Flexible work schedule" - is the right granted to a solo
due to abandonment of spouse for at least one (1) year; parent employee to vary his/her arrival and departure time
without affecting the core work hours as defined by the (c) Parent effectiveness services which include the provision
employer. and expansion of knowledge and skills of the solo parent on
early childhood development, behavior management, health
Section 4. Criteria for Support. - Any solo parent whose care, rights and duties of parents and children.
income in the place of domicile falls below the poverty threshold
as set by the National Economic and Development Authority (d) Critical incidence stress debriefing which includes preventive
(NEDA) and subject to the assessment of the DSWD worker in stress management strategy designed to assist solo parents in
the area shall be eligible for assistance: Provided, however, coping with crisis situations and cases of abuse.
That any solo parent whose income is above the poverty
threshold shall enjoy the benefits mentioned in Sections 6, 7 (e) Special projects for individuals in need of protection which
and 8 of this Act. include temporary shelter, counseling, legal assistance, medical
care, self-concept or ego-building, crisis management and
Section 5. Comprehensive Package of Social Development spiritual enrichment.
and Welfare Services. - A comprehensive package of social
development and welfare services for solo parents and their Section 6. Flexible Work Schedule. - The employer shall
families will be developed by the DSWD, DOH, DECS, CHED, provide for a flexible working schedule for solo parents:
TESDA, DOLE, NHA and DILG, in coordination with local Provided, That the same shall not affect individual and company
government units and a nongovernmental organization with productivity: Provided, further, That any employer may request
proven track record in providing services for solo parents. exemption from the above requirements from the DOLE on
certain meritorious grounds.
The DSWD shall coordinate with concerned agencies the
implementation of the comprehensive package of social Section 7. Work Discrimination. - No employer shall
development and welfare services for solo parents and their discriminate against any solo parent employee with respect to
families. The package will initially include: terms and conditions of employment on account of his/her
status.
(a) Livelihood development services which include trainings on
livelihood skills, basic business management, value orientation Section 8. Parental Leave. - In addition to leave privileges
and the provision of seed capital or job placement. under existing laws, parental leave of not more than seven (7)
working days every year shall be granted to any solo parent
(b) Counseling services which include individual, peer group or employee who has rendered service of at least one (1) year.
family counseling. This will focus on the resolution of personal
relationship and role conflicts. Section 9. Educational Benefits. - The DECS, CHED and
TESDA shall provide the following benefits and privileges:
(1) Scholarship programs for qualified solo parents and their programs designed for disadvantaged solo parents and their
children in institutions of basic, tertiary and technical/skills children;
education; and
(b) Coordinate the activities of various governmental and
(2) Nonformal education programs appropriate for solo parents nongovernmental organizations engaged in promoting and
and their children. protecting the interests of solo parents and their children; and
The DECS, CHED and TESDA shall promulgate rules and (c) Monitor the implementation of the provisions of this Act and
regulations for the proper implementation of this program. suggest mechanisms by which such provisions are effectively
implemented.
Section 10. Housing Benefits. - Solo parents shall be given
allocation in housing projects and shall be provided with liberal 8 Service Charge
terms of payment on said government low-cost housing projects
in accordance with housing law provisions prioritizing applicants Art 96. Service charges. All service charges collected by
below the poverty line as declared by the NEDA. hotels, restaurants and similar establishments shall be
distributed at the rate of eighty-five percent (85%) for all covered
Section 11. Medical Assistance. - The DOH shall develop a employees and fifteen percent (15%) for management. The
comprehensive health care program for solo parents and their share of the employees shall be equally distributed among
children. The program shall be implemented by the DOH them. In case the service charge is abolished, the share of the
through their retained hospitals and medical centers and the covered employees shall be considered integrated in their
local government units (LGUs) through their wages.
provincial/district/city/municipal hospitals and rural health units
(RHUs).
VI. Wages
Section 12. Additional Powers and Functions of the DSWD.
The DSWD shall perform the following additional powers and 1 Forms, 2 Time, 3 Place, 4 Manner, 5 Prohibitions
functions relative to the welfare of solo parents and their
families: Art 99. Regional Minimum Wages. The minimum wage rates
for agricultural and non-agricultural employees and workers in
(a) Conduct research necessary to: (1) develop a new body of each and every region of the country shall be determined by the
knowledge on solo parents; (2) define executive and legislative Commission, which shall be attached to the Department of
measures needed to promote and protect the interest of solo Labor and Employment (DOLE) for policy and program
parents and their children; and (3) assess the effectiveness of coordination.
Art 120. Creation of the National Wages and Productivity (e) To receive, process and act on applications for exemption
Commission. There is hereby created a National Wages and from prescribed wage rates as may be provided by law or any
Productivity Commission, hereinafter referred to as the Wage Order; and
Commission, which shall be attached to the Department of
Labor and Employment (DOLE) for policy and program (f) To exercise such other powers and functions as may be
coordination. (As amended by RA 6727) necessary to carry out their mandate under this Code.
Art 122. Creation of Regional Tripartite Wages and Implementation of the plans, programs and projects of the
Productivity Boards. There is hereby created Regional Regional Boards referred to in the second paragraph, letter (a)
Tripartite Wages and Productivity Boards, hereinafter referred to of this Article, shall be through the respective regional offices of
as Regional Boards in all regions, including autonomous regions the Department of Labor and Employment within their territorial
as may be established by law. The Commission shall determine jurisdiction; Provided, however, That the Regional Boards shall
the offices/headquarters of the respective Regional Boards. The have technical supervision over the regional office of the
Regional Boards shall have the following powers and functions Department of Labor and Employment with respect to the
in their respective territorial jurisdiction: implementation of said plans, programs and projects. Each
Regional Board shall be composed of the Regional Director of
(a) To develop plans, programs and projects relative to wages, the Department of Labor and Employment as chairman, the
incomes and productivity improvement for their respective Regional Directors of the National Economic and Development
regions; Authority and Department of Trade and Industry as vice-
chairman and two (2) members each from workers and
(b) To determine and fix minimum wage rates applicable in their employers sectors who shall be appointed by the President of
respective regions, provinces or industries therein and to issue the Philippines, upon recommendation of the Secretary of Labor
the corresponding wage orders, subject to guidelines issued by and Employment, to be made on the basis of the list of
the Commission; nominees submitted by the workers and employers sectors,
respectively, and who shall serve for a term of five (5) years.
(c) To undertake studies, researches, and surveys necessary Each Regional Board to be headed by its chairman shall be
for the attainment of their functions, objectives and programs assisted by a Secretariat. (As amended by RA 6727)
and to collect and compile data on wages, incomes, productivity
and other related information and periodically disseminate the Art 125. Freedom to bargain. No wage order shall be
same; construed to prevent workers in particular firms or enterprises of
industries from bargaining for higher wages with their respective
(d) To coordinate with the other Regional Boards as may be employers.
necessary to attain the policy and intention of this Code;
R.A. NO. 8188. AN ACT INCREASING THE R.A. NO. 9178. AN ACT TO PROMOTE THE
PENALTY AND INCREASING DOUBLE INDEMNITY ESTABLISHMENT OF BARANGAY MICRO
FOR VIOLATION OF THE PRESCRIBED BUSINESS ENTERPRISES (BMBEs), PROVIDING
INCREASES OR ADJUSTMENT IN THE WAGE INCENTIVES AND BENEFITS THEREFOR, AND
RATES, AMENDING FOR THE PURPOSE SECTION FOR OTHER PURPOSES
TWELVE OF REPUBLIC ACT NO. 6727,
OTHERWISE KNOWN AS THE WAGE PRELIMINARY PROVISIONS
RATIONALIZATION ACT Section 1. Short Title. This Act shall be known as the
"Barangay Micro Business Enterprises (BMBEs) Act of 2002."
SECTION 1. Section 12 of R.A. No. 6727 is hereby amended to
read to as follows: Sec. 2. Declaration of Policy. It is hereby declared to be the
policy of the State to hasten the country's economic
"Section 12. Any person, corporation, trust, firm, partnership, development by encouraging the formation and growth of
association or entity which refuses or fails to pay any of the barangay micro business enterprises which effectively serve as
prescribed increases or adjustments in the wage rates made in seedbeds of Filipino entrepreneurial talents, and integrating
accordance with this Act shall be punished by a fine not less those in the informal sector with the mainstream economy,
than Twenty- five thousand pesos (P25,000) nor more than One through the rationalization of bureaucratic restrictions, the active
hundred thousand pesos (P100,000) or imprisonment of not intervention of the government specially in the local level, and
less than two (2) years nor more than four (4) years, or both the granting of incentives and benefits to generate much-
such fine and imprisonment at the discretion of the court: needed employment and alleviate poverty.
Provided, That any person convicted under this Act shall not be
entitled to the benefits provided for under the Probation Law. Sec. 3. Definition of Terms. As used in this Act, the
following terms shall mean:
(d) "Registration" refers to the inclusion of BMBE in the BMBE Sec. 5. Who are Eligible to Register. Any person, natural or
Registry of a city or municipality. juridical, or cooperative, or association, having the qualifications
as defined in Sec. 3(a) hereof may apply for registration as
(e) "Financing" refers to all borrowings of the BMBE from all BMBE.
sources after registration.
Sec. 6. Transfer of Ownership. The BMBE shall report to
REGISTRATION AND OPERATION OF BMBEs the city or municipality of any change in the status of its
ownership structure, and shall surrender the original copy of the
Sec. 4. Registration and Fees. The Office of the Treasurer BMBE Certificate of Authority for notation of the transfer.
of each city or municipality shall register the BMBEs and issue a
INCENTIVES AND BENEFITS All loans from whatever sources granted to BMBEs under this
Act shall be considered as part of alternative compliance to
Sec. 7. Exemption from Taxes and Fees. All BMBEs shall Presidential Decree No. 717, otherwise known as the Agri-Agra
be exempt from income tax for income arising from the Law, or to Republic Act No. 6977, known as the Magna Carta
operations of the enterprise. for Small and Medium Enterprises, as amended. For purposes
of compliance with Presidential Decree No. 717 and Republic
The LGUs are encouraged either to reduce the amount of local Act No. 6977, as amended, loans granted to BMBEs under this
taxes, fees and charges imposed or to exempt the BMBEs from Act shall be computed at twice the amount of the face value of
local taxes, fees and charges. the loans.
Sec. 8. Exemption from the Coverage of the Minimum Wage Any existing laws to the contrary notwithstanding, interests,
Law. The BMBEs shall be exempt from the coverage of the commissions and discounts derived from the loans by the LBP,
Minimum Wage Law: Provided, That all employees covered DBP, PCFC and SBGFC granted to BMBEs as well as loans
under this Act shall be entitled to the same benefits given to any extended by the GSIS and SSS to their respective member-
regular employee such as social security and healthcare employees under this Act shall be exempt from gross receipts
benefits. tax (GRT).
Sec. 9. Credit Delivery. Upon the approval of this Act, the To minimize the risks in lending to the BBEs, the SBGFC and
Land Bank of the Philippines (LBP), the Development Bank of the Quedan and Rural Credit Guarantee Corporation
the Philippines (DBP), the Small Business Guarantee and (QUEDANCOR) under the Department of Agriculture, in case of
Finance Corporation (SBGFC), and the People's Credit and agribusiness activities, shall set up a special guarantee window
Finance Corporation (PCFC) shall set up a special credit to provide the necessary credit guarantee to BMBEs under their
window that will service the financing needs of BMBEs respective guarantee programs.
registered under this Act consistent with the Bangko Sentral ng
Pilipinas (BSP) policies, rules and regulations. The Government The LBP, DBP, PCFC, SBGFC, SSS, GSIS, and QUEDANCOR
Service Insurance System (GSIS) and Social Security System shall annually report to the appropriate Committees of both
(SSS) shall likewise set up a special credit window that will Houses of Congress on the status of the implementation of this
serve the financing needs of their respective members who wish provision.
to establish a BMBE. The concerned financial institutions (FIs)
are encouraged to wholesale the funds to accredited private The BSP shall formulate the rules for the implementation of this
financial institutions including community-based organizations provision and shall likewise establish incentive programs to
such as credit, cooperatives, non-government organizations encourage and improve credit delivery to the BMBEs.
(NGOs) and people's organizations, which will in turn, directly
provide credit support to BMBEs.
Sec. 10. Technology Transfer, Production and Management Sec. 12. Information Dissemination. The Philippine
Training, and Marketing Assistance. A BMBE Information Agency (PIA), in coordination with the Department
Development Fund shall be set up with an endowment of Three of Labor and Employment (DOLE), the DILG and the DTI, shall
Hundred Million Pesos (P300,000,000.00) from the Philippine ensure the proper and adequate information dissemination of
Amusement and Gaming Corporation (PAGCOR) and shall be the contents and benefits of this Act to the general public
administered by the SMED Council. especially to its intended beneficiaries specifically in the
barangay level.
The Department of Trade and Industry (DTI), the Department of
Science and Technology (DOST), the University of the
Philippines Institute for Small Scale Industries (UP ISSI),
Cooperative Development Authority (CDA), Technical Education R.A. NO. 9504. AN ACT AMENDING SECTION 22,
and Skills Development Authority (TESDA), and Technology
24, 34, 35, 51, AND 79 OF REPUBLIC ACT NO.
and Livelihood Resource Center (TLRC) may avail of the said
Fund for technology transfer, production and management 8424, AS AMENDED OTHERWISE KNOWN AS THE
training and marketing assistance to BMBEs. NATIONAL INTERNAL REVENUE OF 1997
The DTI, in coordination with the private sector and non- Be it enacted by the Senate and House of Representatives of
government organizations (NGOs), shall explore the possibilities the Philippines in Congress assembled::
of linking or matching-up BMBEs with small, medium and large
enterprises, and likewise establish incentives therefor. SECTION 1. Section 22 of Republic Act No. 8424, as amended,
otherwise known as the National Internal Revenue Code of
The DTI, in behalf of the DOST, UP ISSI, CDA, TESDA and 1997, is hereby further amended by adding the following
TLRC shall be required to furnish the appropriate Committees of definition after Subsection (FF) to read as follows:
both Houses of Congress a yearly report on the development
and accomplishments of their projects and programs in relation "SEC. 22. Definitions. - when used in this Title:
to technology transfer, production and management training and
marketing assistance extended to BMBEs. "(A) x x x.
Sec. 11. Trade and Investment Promotion. The data
"x x x
gathered from business registration shall be made accessible to
and shall be utilized by private sector organizations and non-
government organizations for purposes of business matching, "(FF) x x x.
trade and investment promotion.
"(GG) the term 'statutory minimum wage' earner shall refer to "(2) Rates of Tax on Taxable Income of Individuals. - The tax
rate fixed by the Regional Tripartite Wage and Productivity shall be computed in accordance with and at the rates
Board, as defined by the Bureau of Labor and Employment established in the following schedule:
Statistics (BLES) of the Department of Labor and Employment
(DOLE) "Not over P10,000 5%
"(HH) the term 'minimum wage earner' shall refer to a worker in "Over P10,000 but not P500+10% of the excess over
the private sector paid the statutory minimum wage, or to an over P30,000 P10,000
employee in the public sector with compensation income of not
more than the statutory minimum wage in the non-agricultural "Over P30,000 but not P2,500+15% of the excess
sector where he/she is assigned." over P70,000 over P30,000
"Over P70,000 but not P8,500+20% of the excess
SEC. 2. Section 24(A) of Republic Act No. 8424, as amended, over P140,000 over P70,000
otherwise known as the National Internal Revenue Code of
1997, is hereby further amended to read as follows: "Over P140,000 but not P22,500+25% of the excess
over P250,000 over P140,000
"SEC. 24. Income Tax Rates. - "Over P250,000 but not P50,000+30% of the excess
over P500,000 over P250,000
"(A) Rates of Income Tax on Individual Citizen and Individual
Resident Alien of the Philippines. - "Over P5000,000 P125,000+32% of the excess
over P500,000
"(1) x x x:
"For married individuals, the husband and wife, subject to the
"x x x; and provision of Section 51 (D) hereof, shall compute separately
their individual income tax based on their respective total
"(c) On the taxable income defined in Section 31 of this code, taxable income: Provided, that if any income cannot be
other than income subject to tax under Subsections (B), (C) and definitely attributed to or identified as income exclusively earned
(D) of this Section, derived for each taxable year from all or realized by either of the spouses, the same shall be divided
sources within the Philippines by an individual alien who is a equally between the spouses for the purpose of determining
resident of the Philippines. their respective taxable income.
Art 285. Termination by employee. (a) An employee may Also study: CASES, Book V Rule XXIII Sec 1-9, DO
terminate without just cause the employee-employer No. 147-15
relationship by serving a written notice on the employer at least
one month in advance. The employer upon whom no such
2 Retirement
notice was served may hold the employee liable for damages.
Art 287. Retirement. Any employee may be retired upon
(b) An employee may put an end to the relationship without
reaching the retirement age established in the collective
serving any notice on the employer for any of the following just
bargaining agreement or other applicable employment contract.
causes:
In case of retirement, the employer shall be entitled to receive
such retirement benefits as he may have earned under existing
(1) Serious insult by the employer or his representative on the laws and any collective bargaining or other agreement.
honor and person of the employee;
"Unless the parties provide for broader inclusions, the term one- Art 244. Right of employees in the public service.
half (1/2) month salary shall mean fifteen (15) days plus one- Employees of government corporations established under the
twelfth (1/12) of the 13th month pay and the cash equivalent of Corporation Code shall have the right to organize and to bargain
not more than five (5) days of service incentive leaves. collectively with their respective employers. All other employees
in the civil service shall have the right to form associations for
"Retail, service and agricultural establishments or operations purposes not contrary to law.
employing not more than (10) employees or workers are
exempted from the coverage of this provision. Art 245. Ineligibility of managerial employees to join any
labor organization; right of supervisory employees.
"Violation of this provision is hereby declared unlawful and Managerial employees are not eligible to join, assist or form any
subject to the penal provisions provided under Article 288 of this labor organization. Supervisory employees shall not be eligible
Code." for membership in a labor organization of the rank-and-file
employees but may join, assist or form separate labor (h) Legitimate labor organization means any labor organization
organizations of their own. (As amended by RA 6715) duly registered with the Department of Labor and Employment,
and includes any branch or local thereof.
Art 246. Non-abridgement of right to self-organization. It
shall be unlawful for any person to restrain, coerce, discriminate (j) Bargaining representative means a legitimate labor
against or unduly interfere with employees and workers in their organization or any officer or agent of such organization
exercise of the right to self-organization. Such right shall include whether or not employed by the employer.
the right to form, join, or assist labor organizations for the
purpose of collective bargaining through representatives of their (k) Unfair labor practice means any unfair labor practice as
own choosing and to engage in lawful aid and protection, expressly defined by this Code.
subject to the provisions of Article 246 of this Code.
(l) Labor dispute includes any controversy or matter
Art 212. Definitions. concerning terms or conditions of employment or the
association or representation of persons in negotiating, fixing,
(e) Employer includes any person acting in the interest of an maintaining, changing or arranging the terms and conditions of
employer, directly or indirectly. The term shall not include any employment, regardless of whether the disputants stand in the
labor organization or any of its officers or agents except when proximate relation of employer and employee.
acting as employer.
(m) Managerial employee is one who is vested with powers or
(f) Employee includes any person in the employ of an prerogatives to lay down and execute management policies
employer. The term shall not be limited to the employees of a and/or to hire, transfer, suspend, lay-off, recall, discharge,
particular employer, unless this Code so explicitly states. It shall assign or discipline employees. Supervisory employees are
include any individual whose work has ceased as a result of or those who, in the interest of the employer, effectively
in connection with any current labor dispute or because of any recommend such managerial actions if the exercise of such
unfair labor practice if he has not obtained any other authority is not merely routinary or clerical in nature but requires
substantially equivalent and regular employment. the use of independent judgment. All employees not falling
within any of the above definitions are considered rank-and-file
(g) Labor organization means any union or association of employees for purposes of this Book.
employees which exists in whole or in part for the purpose of
collective bargaining or of dealing with employers concerning (n) Voluntary Arbitrator means any person accredited by the
terms and conditions of employment. Board as such, or any person named or designated in the
collective bargaining agreement by the parties to act as their
voluntary arbitrator, or one chosen, with or without the
assistance of the National Conciliation and Mediation Board, R.A. No. 9481 (2007). AN ACT STRENGTHENING
pursuant to a selection procedure agreed upon in the collective THE WORKERS' CONSTITUTIONAL RIGHT TO
bargaining agreement, or any official that may be authorized by
the Secretary of Labor and Employment to act as voluntary
SELF-ORGANIZATION, AMENDING FOR THE
arbitrator upon the written request and agreement of the parties PURPOSE PRESIDENTIAL DECREE NO. 442, AS
to a labor dispute. AMENDED, OTHERWISE KNOWN AS THE LABOR
CODE OF THE PHILIPPINES
(o) Strike means any temporary stoppage of work by the
concerted action of employees as a result of an industrial or Be it enacted by the Senate and the House of Representatives
labor dispute. of the Philippines in Congress assembled:
(p) Lockout means the temporary refusal of an employer to SECTION 1. Article 234 of Presidential Decree No. 442, as
furnish work as a result of an industrial or labor dispute. amended, otherwise known as the Labor Code of the
Philippines, is hereby further amended to read as follows:
(q) Internal union dispute includes all disputes or grievances
arising from any violation of or disagreement over any provision "ART. 234. Requirements of Registration. - A federation,
of the constitution and by-laws of a union, including any violation national union or industry or trade union center or an
of the rights and conditions of union membership provided for in independent union shall acquire legal personality and shall be
this Code. entitled to the rights and privileges granted by law to legitimate
labor organizations upon issuance of the certificate of
(r) Strike breaker means any person who obstructs, impedes, registration based on the following requirements:
or interferes with by force, violence, coersion, threats or
intimidation any peaceful picketing by employees during any (a) Fifty pesos (P50.00) registration fee;
labor controversy affecting wages, hours or conditions of work
or in the exercise of the right of self-organization or collective (b) The names of its officers, their addresses, the principal
bargaining. address of the labor organization, the minutes of the
organizational meetings and the list of the workers who
(s) Strike area means the establishment, warehouses, depots, participated in such meetings;
plants or offices, including the sites or premises used as run-
away shops, of the employer struck against, as well as the (c) In case the applicant is an independent union, the names of
immediate vicinity actually used by picketing strikers in moving all its members comprising at least twenty percent (20%) of all
to and for. before all points of entrance to and exit from said the employees in the bargaining unit where it seeks to operate;
establishment. (As amended by RA 6715)
(d) If the applicant union has been in existence for one or more SEC. 3. Article 238 of the Labor Code is hereby amended to
years, copies of its annual financial reports; and read as follows:
(e) Four copies of the constitution and by-laws of the applicant "ART. 238. Cancellation of Registration. - The certificate of
union, minutes of its adoption or ratification, and the list of the registration of any legitimate labor organization, whether
members who participated in it." national or local, may be cancelled by the Bureau, after due
hearing, only on the grounds specified in Article 239 hereof."
SEC. 2. A new provision is hereby inserted into the Labor Code
as Article 234-A to read as follows: SEC. 4. A new provision is hereby inserted into the Labor Code
as Article 238-A t o read as follows:
"ART. 234-A. Chartering and Creation of a Local Chapter. - A
duly registered federation or national union may directly create a "ART. 238-A. Effect of a Petition for Cancellation of Registration.
local chapter by issuing a charter certificate indicating the - A petition for cancellation of union registration shall not
establishment of the local chapter. The chapter shall acquire suspend the proceedings for certification election nor shall it
legal personality only for purposes of filing a petition for prevent the filing of a petition for certification election.
certification election from the date it was issued a charter
certificate. In case of cancellation, nothing herein shall restrict the right of
the union to seek just and equitable remedies in the appropriate
The chapter shall be entitled to all other rights and privileges of courts."
a legitimate labor organization only upon the submission of the
following documents in addition to its charter certificate: SEC. 5. Article 239 of the Labor Code is amended to read as
follows:
(a) The names of the chapter's officers, their addresses,
and the principal office of the chapter; and "ART. 239. Grounds for Cancellation of Union Registration. -
The following may constitute grounds for cancellation of union
(b) The chapter's constitution and by-laws: Provided, That registration:
where the chapter's constitution and by-laws are the same
as that of the federation or the national union, this fact (a) Misrepresentation, false statement or fraud in
shall be indicated accordingly. connection with the adoption or ratification of the
constitution and by-laws or amendments thereto, the
The additional supporting requirements shall be certified under minutes of ratification, and the list of members who took
oath by the secretary or treasurer of the chapter and attested by part in the ratification;
its president."
(b) Misrepresentation, false statements or fraud in (c) Its annual financial report within thirty (30) days after the
connection with the election of officers, minutes of the close of every fiscal year; and
election of officers, and the list of voters;
(d) Its list of members at least once a year or whenever
(c) Voluntary dissolution by the members." required by the Bureau.
SEC. 6. A new provision, Article 239-A is inserted into the Labor Failure to comply with the above requirements shall not be a
Code to read as follows: ground for cancellation of union registration but shall subject the
erring officers or members to suspension, expulsion from
"ART. 239-A. Voluntary Cancellation of Registration. - The membership, or any appropriate penalty."
registration of a legitimate labor organization may be cancelled
by the organization itself. Provided, That at least two-thirds of its SEC. 8. Article 245 of the Labor Code is hereby amended to
general membership votes, in a meeting duly called for that read as follows:
purpose to dissolve the organization: Provided, further, That an
application to cancel registration is thereafter submitted by the "ART. 245. Ineligibility of Managerial Employees to Join any
board of the organization, attested to by the president thereof." Labor Organization; Right of Supervisory Employees. -
Managerial employees are not eligible to join, assist or form any
SEC. 7. A new provision, Article 242-A is hereby inserted into labor organization. Supervisory employees shall not be eligible
the Labor Code to read as follows: for membership in the collective bargaining unit of the rank-and-
file employees but may join, assist or form separate collective
"ART. 242-A. Reportorial Requirements. - The following are bargaining units and/or legitimate labor organizations of their
documents required to be submitted to the Bureau by the own. The rank and file union and the supervisors' union
legitimate labor organization concerned: operating within the same establishment may join the same
federation or national union."
(a) Its constitution and by-laws, or amendments thereto, the
minutes of ratification, and the list of members who took SEC. 9. A new provision, Article 245-A is inserted into the Labor
part in the ratification of the constitution and by-laws within Code to read as follows:
thirty (30) days from adoption or ratification of the
constitution and by-lam or amendments thereto; "ART. 245-A. Effect of Inclusion as Members of Employees
Outside the Bargaining Unit. - The inclusion as union members
(b) Its list of officers, minutes of the election of officers, and of employees outside the bargaining unit shall not be a ground
list of voters within thirty (30) days from election; for the cancellation of the registration of the union. Said
employees are automatically deemed removed from the list of At the expiration of the freedom period, the employer shall
membership of said union." continue to recognize the majority status of the incumbent
bargaining agent where no petition for certification election is
SEC. 10. Article 256 of the Labor Code is hereby amended to filed."
read as follows:
SEC. 11. Article 257 of the Labor Code is hereby amended to
"ART. 256. Representation Issue in Organized Establishments. - read as follows:
In organized establishments, when a verified petition
questioning the majority status of the incumbent bargaining "ART. 257. Petitions in Unorganized Establishments. - In any
agent is filed by any legitimate labor organization including a establishment where there is no certified bargaining agent, a
national union or federation which has already issued a charter certification election shall automatically be conducted by the
certificate to its local chapter participating in the certification Med-Arbiter upon the filing of a petition by any legitimate labor
election or a local chapter which has been issued a charter organization, including a national union or federation which has
certificate by the national union or federation before the already issued a charter certificate to its 1ocal/chapter
Department of Labor and Employment within the sixty (60)-day participating in the certification election or a local/chapter which
period before the expiration of the collective bargaining has been issued a charter certificate by the national union or
agreement, the Med-Arbiter shall automatically order an election federation. In cases where the petition was filed by a national
by secret ballot when the verified petition is supported by the union or federation, it shall not be required to disclose the
written consent of at least twenty-five percent (25%) of all the names of the local chapter's officers and members."
employees in the bargaining unit to ascertain the will of the
employees in the appropriate bargaining unit. To have a valid SEC. 12. A new provision, Article 258-A is hereby inserted into
election, at least a majority of all eligible voters in the unit must the Labor Code to read as follows:
have cast their votes. The labor union receiving the majority of
the valid votes cast shall be certified as the exclusive bargaining "ART. 258-A. Employer as Bystander. - In all cases, whether the
agent of all the workers in the unit. When an election which petition for certification election is filed by an employer or a
provides for three or more choices results in no choice receiving legitimate labor organization, the employer shall not be
a majority of the valid votes cast, a run-off election shall be considered a party thereto with a concomitant right to oppose a
conducted between the labor unions receiving the two highest petition for certification election. The employer's participation in
number of votes: Provided, That the total number of votes for all such proceedings shall be limited to: (1) being notified or
contending unions is at least fifty percent (50%) of the number informed of petitions of such nature; and (2) submitting the list of
of votes cast. In cases where the petition was filed by a national employees during the pre-election conference should the Med-
union or federation, it shall not be required to disclose the Arbiter act favorably on the petition."
names of the local chapter's officers and members.
Also study: DO 40-03 Notwithstanding any provision of a general or special law to the
contrary, the income, and the properties of legitimate labor
1 Labor Organizations organizations, including grants, endowments, gifts, donations
and contributions they may receive from fraternal and similar
Art 242. Rights of legitimate labor organizations. A organizations, local or foreign, which are actually, directly and
legitimate labor organization shall have the right: exclusively used for their lawful purposes, shall be free from
taxes, duties, and other assessments. The exemptions provided
herein may be withdrawn only by a special law expressly
(a) To act as the representative of its members for the purpose
repealing this provision. (As amended by RA 6715)
of collective bargaining;
Art 239. Grounds for cancellation of union registration. The (h) Other than for mandatory activities under this Code, checking
following shall constitute grounds for cancellation of union off special assessments or any other fees without duly signed
registration: individual written authorizations of the members;
(a) Misrepresentation, false statement or fraud in connection with (i) Failure to submit a list of individual members to the Bureau
the adoption or ratification of the constitution and by-laws or once a year or whenever required by the Bureau; and
amendments thereto, the minutes of ratification, and the list of
members who took part in the ratification; (j) Failure to comply with requirements under Articles 237 and
238.
(b) Failure to submit the documents mentioned in the preceding
paragraph within thirty (30) days from adoption or ratification of
the constitution and by-laws or amendments thereto;
3 Representation Issue
(c) Misrepresentation, false statement or fraud in connection with
the election of officers, minutes of the election of officers and the
list of voters, or failure to submit these documents together with Art 255. Exclusive bargaining representation and workers
the list of the newly elected/appointed officers and their postal participation in policy and decision-making. The labor
addresses within thirty (30) days from election; organization designated or selected by the majority of the
employees in an appropriate collective bargaining unit shall be
the exclusive representative of the employee in such unit for the At the expiration of the freedom period, the employer shall
purpose of collective bargaining. However, an individual continue to recognize the majority status of the incumbent
employee or group of employees shall have the right at any time bargaining agent where no petition for certification is filed. (As
to present grievances to their employer. Any provision of law to amended by RA 6715)
the contrary notwithstanding, workers shall have the right,
subject to such rules and regulations as the Secretary of Labor Art 257. Petitions in unorganized establishments. In any
and Employment may promulgate, to participate in policy and establishment where there is no certified bargaining agent, a
decision-making processes of the establishment where they are certification election shall automatically be conducted by the
employed insofar as said processes will directly affect their Med-Arbiter upon the filing of a petition by a legitimate labor
rights, benefits and welfare. For this purpose, workers and organization. (As amended by RA 6715)
employers may form labor-management councils: Provided,
That the representatives of the workers in such labor- Art 258. When an employer may file petition. When
management councils shall be elected by at least the majority of requested to bargain collectively, an employer may petition the
all employees in said establishment. (As amended by RA 6715) Bureau for an election. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall, after
Art 256. Representation issue in organized hearing, order a certification election. All certification cases shall
establishments. In organized establishments, when a verified be decided within 20 working days. The Bureau shall conduct a
petition questioning the majority status of the incumbent certification election within 20 days in accordance with the rules
bargaining agent is filed before the Department of Labor and and regulations prescribed by the Secretary of Labor and
Employment within the sixty-day period before the expiration of Employment.
a collective bargaining agreement, the Med-Arbiter shall
automatically order an election by secret ballot when the verified Art 259. Appeal from certification election orders. Any party
petition is supported by the written consent of at least twenty- to an election may appeal the order or results of the election as
five percent (25%) of all the employees in the appropriate determined by the Med-Arbiter directly to the Secretary of Labor
bargaining unit. To have a valid election, at least a majority of all and Employment on the ground that the rules and regulations or
eligible voters in the unit must have cast their votes. The labor parts thereof established by the Secretary of Labor and
union receiving the majority of the valid votes cast shall be Employment for the conduct of the election have been violated.
certified as the exclusive bargaining agent of all the workers in Such appeal shall be decided within fifteen (15) calendar days.
the unit. When an election which provides for three or more (As amended by RA 6715)
choices results in no choice receiving a majority of the valid
votes cast, a run-off election shall be conducted between the
labor unions receiving the two highest number of votes:
Provided, That the total number of votes for all contending
unions is at least fifty percent (50%) of the number of votes cast.
4 Collective Bargaining agreement or other voluntary arrangement providing for a more
expeditious manner of collective bargaining, it shall be the duty
Art 250. Procedure in collective bargaining. The following of the employer and the representatives of the employees to
procedures shall be observed in collective bargaining: bargain collectively in accordance with the provisions of this
Code.
(a) When a party desires to negotiate an agreement, it shall
serve a written notice upon the other party with a statement of Art 252. Meaning of duty to bargain collectively. The duty to
its proposals. The other party shall make a reply thereto not bargain collectively means the performance of a mutual
later than ten (10) calendar days from receipt of such notice; obligation to meet and convene promptly and expeditiously in
good faith for the purpose of negotiating an agreement with
(b) Should differences arise on the basis of such notice and respect to wages, hours of work and all other terms and any
reply, either party may request for a conference which shall grievances or questions arising under such agreement and
begin not later than ten (10) calendar days from the date of executing a contract incorporating such agreements if requested
request; by either party, but such duty does not compel any party to
agree to a proposal or to make any concession.
(c) If the dispute is not settled, the Board shall intervene upon
request of either or both parties or at its own initiative and Art 253. Duty to bargain collectively when there exists a
immediately call the parties to conciliation meetings. The Board collective bargaining agreement. When there is a collective
shall have the power to issue subpoenas requiring the bargaining agreement, the duty to bargain collectively shall also
attendance of the parties to such meetings. It shall be the duty mean that neither party shall terminate or modify such
of the parties to participate fully and promptly in the conciliation agreement during its lifetime. However, either party can serve a
meetings the Board may call. written notice to terminate or modify the agreement at least sixty
(60) days prior to its expiration date. It shall be the duty of both
parties to keep the status quo and to continue in full force and
(d) During the conciliation proceedings in the Board, the parties
effect the term and conditions of the existing agreement during
are prohibited from doing any act which may disrupt or impede
the 60-day period and/or until a new agreement is reached by
the early settlement of the disputes; and
the parties.
(e) The Board shall exert all efforts to settle disputes amicably
Art 253-A. Terms of a collective bargaining agreement. Any
and encourage the parties to submit their case to a voluntary
collective bargaining agreement that the parties may enter into
arbitrator.
shall, insofar as the representation aspect is concerned, be for a
term of five (5) years. No petition questioning the majority status
Art 251. Duty to bargain collectively in the absence of of the incumbent bargaining agent shall be entertained and no
collective bargaining agreements. In the absence of an certification election shall be conducted by the Department of
Labor and Employment outside of the sixty-day period (d) To initiate, dominate, assist or otherwise interfere with the
immediately before the date of expiry of such five year term of formation or administration of any labor organization, including
the collective bargaining agreement. All other provisions of the the giving of financial or other support to it or its organizers or
collective bargaining agreement shall be renegotiated not later officers;
than three (3) years after its execution. Any agreement on such
other provisions of the collective bargaining agreement entered (e) To discriminate in regard to hire or tenure of employment or
into within six (6) months from the date of expiry of the term of any term or condition of employment in order to encourage or
such other provisions as fixed in the collective bargaining discourage membership in any labor organization. Nothing in
agreement, shall retroact to the day immediately following such this Code or in any other law shall prevent the parties from
date. If any such agreement is entered into beyond six months, requiring membership in a recognized collective bargaining
the parties shall agree on the duration of retroactivity thereof. In agent as a condition for employment, except of those
case of a deadlock in the renegotiation of the collective employees who are already members of another union at the
bargaining agreement, the parties may exercise their rights time of the signing of the collective bargaining agreement.
under this Code. (As amended by RA 6715) Employees belonging to an appropriate collective bargaining
unit who are not members of the recognized collective
5 ULP bargaining agent may be assessed a reasonable fee equivalent
to the dues and other fees paid by members of the recognized
Art 248. Unfair labor practices of employers. It shall be collective bargaining agent, if such non-union members accept
unlawful for an employer to commit any of the following unfair the benefits under the collective agreement: Provided, That the
labor practices: individual authorization required under Article 242, paragraph
(o), of this Code shall not apply to non-members of the
(a) To interfere with, restrain or coerce employees in the recognized collective bargaining agent;
exercise of their right to self-organization;
(f) To dismiss, discharge or otherwise prejudice or discriminate
(b) To require as a condition for employment that a person or an against an employee for having given or being about to give
employee shall not join a labor organization or shall withdraw testimony under this Code;
from one to which he belongs;
(g) To violate the duty to bargain collectively as prescribed by
(c) To contract out services or functions being performed by this Code;
union members when such will interfere with, restrain or coerce
employees in the exercise of their right to self-organization; (h) To pay negotiation or attorneys fees to the union or its
officers or agents as part of the settlement of any issue in
collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement. or not to be performed, including the demand for a fee for union
negotiations;
The provisions of the preceding paragraph notwithstanding, only
the officers and agents of corporations, associations, or (e) To ask for or accept negotiation or attorneys fees from
partnerships who have actually participated in, authorized or employers as part of the settlement of any issue in collective
ratified unfair labor practices shall be held criminally liable. bargaining or any other dispute; or
Art 249. Unfair labor practices of labor organizations. It shall (f) To violate a collective bargaining agreement.
be unlawful for labor organization, its officers, agents, or
representatives to commit any of the following unfair labor The provisions of the preceding paragraph notwithstanding, only
practices; the officers, members of governing boards, representatives or
agents or members of labor associations or organizations who
(a) To restrain or coerce employees in the exercise of their right have actually participated in, authorized or ratified unfair labor
to self-organization: Provided, That the labor organization shall practices shall be held criminally liable.
have the right to prescribe its own rules with respect to the
acquisition or retention of membership;